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Anadarko boosts profits on 22% gain in oil flow but gas production slips
Allen Baker, PNA contributing writer
Anadarko Petroleum Corp. reported fourth-quarter net income of $309 million, a strong 186 percent gain compared with the year-ago performance. The number was also up significantly from the third quarter’s $189 million in profits.
Higher oil production was the big driver, along with higher prices for that oil. Average daily crude production rose 22 percent to 214,000 barrels a day at $24.67 a barrel. That price was up 48 percent from $16.64 in the same quarter of 2001.
Production of natural gas and gas liquids both declined, however. Natural gas volumes were 1,682 million cubic feet daily, down 10 percent from the last quarter of 2001. The price for that gas rose 33 percent to $3.50 per thousand cubic feet. Natural gas liquids slid to 41,000 barrels a day from 44,000 a year earlier, a decline of 7 percent. Prices rose 52 percent to an average of $17.47 a barrel.
Overall, based on barrels of oil equivalent, production for the quarter was essentially flat at 535,000 barrels daily, compared with 529,000 a year ago and 526,000 in the third quarter.
Annual profit $825 million Houston-based Anadarko netted $825 million for the year, compared with a loss of $188 million in 2001, a figure that included a huge accounting adjustment. Without the adjustment, 2001 earnings would have been $1.38 billion. On average, the company noted, natural gas prices were 33 percent lower last year than in 2001.
Still the company’s overall production slipped to 197 million barrels of oil equivalent for 2002, from 199 million BOE for 2001.
Revenues for the year were $3.86 billion, down 18 percent from the 2001 total. For the fourth quarter, though, revenues were 40 percent higher in 2002, at $1.12 billion. The figure was also up from the third quarter’s $951 million.
While Anadarko cut back on exploration spending in 2002, the company plans to spend $2.3 billion on capital projects this year, with nearly two-thirds devoted to development projects.
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