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Anadarko Revenues Jump 66%, Oil Reserves Surge Due to Acquisitions

Reuters
Tuesday, 6 Feb 2007 | 12:38 PM ET

Independent oil and gas company Anadarko Petroleum said that quarterly profit rose, helped by the sale of its Canadian business.

The company has embarked on a massive asset liquidation program to pay for its $22.5 billion purchase of peers Kerr-McGee and Western Gas resources last year. Property sales so far total about $9 billion.

Fourth-quarter net profit climbed to $1.92 billion, or $4.13 a share, from $874 million, or $1.87 a share, in the same quarter a year earlier.

Excluding impairments from international operations of $329 million and severance costs of $52 million, earnings per share were $1.22.

Revenue jumped to $3.18 billion from $1.92 billion.

Primarily due to the company's acquisitions in 2006, Anadarko said it added 1.04 billion barrels of oil equivalent (boe) in reserves during the year, excluding sales of reserves in place.

The company said it added 248 million boe in 2006 from its drilling program, but most of those additions were offset by 235 million boe of downward revisions from lower prices at year end and performance issues, including problems at its K2 project in the deepwater Gulf of Mexico.

Including the downward revisions, Anadarko replaced only about 7% of the 178 million boe its ongoing operations produced in 2006 from its drilling program.

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