Anadarko Sets Capital Budget, Guidance for 2009 (APC)

Anadarko Petroleum Corp. (NYSE:APC) announced a capital spending budget of $4 billion to $4.5 billion for 2009.  The company spent about $4.9 billion in 2008 and $4 billion in 2007.

Anadarko has targeted $800 million to$900 million at Gulf of Mexico exploration, where it recently announced two major finds. The company expects to drill 4-6 new wells in the Gulf, and another 20 internationally. More than a dozen of these wells are targeted at resources estimated to exceed 100 million barrels.

The company also announced guidance for average sales volume in 2009 of 208 million to 212 million barrels of oil equivalent.  In 2008, Anadarko produced 206 million BOE.  First quarter estimated sales are 48 million to 51 million BOE, down slightly from 52 million BOE in the fourth quarter of 2008. Anadarko also expects to replace 120% of its reserves organically in 2009.

Anadarko’s shares are up about 1% in early trading this morning.

Paul Ausick
February 11, 2009