Houston-based Anadarko Petroleum Corp. announced a common stockoffering of 6.25 million shares. Proceeds of about $240.6 millionbefore expenses are to be used for general purposes, including U.S.gas and oil projects. The offering is Anadarko’s first since it wasspun off from Panhandle Eastern Pipe Line in 1986. Moody’sInvestors Service changed its rating outlook for Anadarko’s fixedincome securities to stable from negative based on increasingproduction, reserve replacement at reasonable finding costs, aswell as the common equity issuance. Anadarko has replaced more than200% of production for the past five years and in 1998 replacedmore than 500% of production at finding costs below most of theindustry, Moody’s said. The addition of mainly gas reserves lastyear lowered oil reserves to about 53% of the total.
Petroleum
Articles from Petroleum
BP Amoco Now Anglicizing Arco in $26.8 B Deal
The British are coming back to the merger table. Still digestingits acquisition of Amoco, British Petroleum last week scrolled onenotch down the alphabetic menu of E&P companies to rest itshungry eyes on Atlantic Richfield Co. (Arco).
CAPP, TransCanada Agree on New Nova Tolling System
A new gas tolling agreement between TransCanada PipeLines andthe Canadian Association of Petroleum Producers (CAPP) soon mayreplace Nova Gas Transmission’s 19-year-old, postage-stamp pricingsystem with a formula based on distance- and the diameter of thepipe used for transportation. A memorandum of understanding (MOU),signed by CAPP and TransCanada, marks the culmination of asettlement process started when the Canadian gas industry signed apeace accord last April, which also assured construction of theAlliance Pipeline and approval of the TransCanada-Nova merger.
BP Amoco Cutting 3,000 More Jobs
BP Amoco added another 3,000 to the heap of 7,000 job cutsalready announced in the wake of the merger of British Petroleumand Amoco and in the midst of depressed oil and gas prices. Thenewest job cuts will be worldwide, and it is not yet known how manywill be in the United States. Last week the company also announcedreplacement cost operating profit for 1998 of $6,437 million, off39% from $10,583 in 1997.
Anadarko to Build New HQ
Anadarko Petroleum Corp., an independent oil and gas company,announced Wednesday it has purchased 7.5 acres in a Houston suburbin order to build a 32-story, 800,000 square foot headquartersbuilding. The company said it needs to move to accommodate itsgrowth needs. Groundbreaking is expected early next year. Anadarkoplans to move in mid-2002.
DOI Relaxes Stripper Well Rules
The Independent Petroleum Association of America (IPAA) praisedthe action of Interior Secretary Bruce Babbit in allowing marginaloil well operators producing on public lands to suspend operationsfor up to two years without losing their leases. The announcementcame Thursday on the heels of the release of an IPAA survey showinghistorically low oil prices have increased the number of shut-insand the industry unemployment rate.
DOI Secretary Babbit Relaxes Stripper Well Rules
The Independent Petroleum Association of America (IPAA) praisedthe action of Interior Secretary Bruce Babbit in allowing marginaloil well operators producing on public lands to suspend operationsfor up to two years without losing their leases. The announcementcame Thursday on the heels of the release of an IPAA survey showinghistorically low oil prices have increased the number of shut-insand the industry unemployment rate.
Rig Count Plummets, IPAA Frets
Record low rig counts are a sure sign of an energy industry incrisis, according to the Independent Petroleum Association ofAmerica (IPAA). The Baker Hughes rotary rig count dated Jan. 22 forNorth America was at 942, a steep drop from the count one year agoof 1,508.
Facing Low Prices, Phillips Cuts Jobs, Spending
Low commodity prices have driven Bartlesville, OK-based PhillipsPetroleum Co. to cut 1,400 jobs and costs and increase availablecash flow in 1999. “We don’t anticipate margin improvements in thenear term, therefore we are adjusting our plans accordingly,” saidCEO Wayne Allen. “The changes will impact our level of operatingcosts, staffing requirements and capital spending. We are takingthese steps to improve our financial performance and create valuefor our shareholders.”
NGSA, CAPP to Sponsor Joint Conference
The Natural Gas Supply Association (NGSA) and the CanadianAssociation of Petroleum Producers (CAPP) will sponsor a majorconference later this month to review the status of North Americangas supply and demand.
