Anadarko Petroleum Brings Excellent 3Q08 Profits as Gulf Repairs Continue

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Researched by Industrial Info Resources (Sugar Land, Texas)--Anadarko Petroleum Corporation (NYSE:APC) (The Woodlands, Texas) announced third quarter 2008 net income of $2.16 billion. Discounting specific items that affect comparability, including large derivatives-based gains, net income for the quarter was $765 million, more than twice 3Q07's adjusted net income of $318 million.

Raising Anadarko's income were increased sales volume and higher prices. Sales volumes were up 9% from the same period last year. Sales revenues increased substantially, moving from $3.0 billion in 3Q07 to $6.15 billion for 3Q08. Gas sales alone rose from $871 million in 2007 to $2.4 billion this year.

The company made it through Hurricanes Gustav and Ike reasonably well. "Our operating facilities in the deepwater Gulf of Mexico weathered both storms with only minor, localized damage, a real testament to the design and construction of our producing platforms," said Chairman and CEO Jim Hackett in a conference call regarding the earnings. "In fact, Anadarko was among the first large deepwater operators to restore production following Hurricane Ike. Our Independence Hub platform was producing at pre-shut-in levels of about 900 million cubic feet per day within 72 hours of Hurricane Ike. During the week after Ike, Independence Hub accounted for about half of all production from the Gulf of Mexico."

Currently, about 75% of Anadarko's Gulf of Mexico production is back online, and all facilities are operational. Hackett said that the company anticipates delays in third-party facilities and infrastructure returning to service, reducing volumes by an estimated 3 million to 5 million oil-equivalent barrels in the fourth quarter.

Early next year, Anadarko is scheduled to begin drilling a coal bed methane gas field in northwest Wyoming. The company will drill more than 600 wells with depths averaging more than 3,000 feet. The estimated total investment value of the project is $210 million. Information and this and similar projects can be found in Industrial Info's Natural Gas Database.

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