Anadarko To Cut Back Capex In 2009, Sees Sales Volume Up

   DOW JONES NEWSWIRES 
 

Anadarko Petroleum Corp. (APC) said it would cut back capital spending as much as 18% this year, compared with a view for higher spending given six months ago, an eternity ago for the oil industry which has seen prices tumble since then and the recession worsen.

Numerous oil-and-gas producers have cut capital expenditures in recent months as the commodity prices have plunged. Some also have idled rigs and pared back production-growth forecasts.

"Even with reduced year-over-year capital expenditures, we expect to increase our total sales volumes in 2009," said Chief Executive Jim Hackett. He added 2009 would be a "challenging year" for the industry, and that Anadarko will continue to monitor the economic conditions as it allocates its capital.

The second-largest independent oil and natural-gas producer behind Devon Energy Corp. (DVN) set its capital-spending budget at $4 billion to $4.5 billion, down from last year's spending of $4.88 billion. The company had already said it would devote 20% of this year's plans to major projects, including the Jubilee field offshore Ghana, and 20% to exploration activities.

The company expects full-year sales volumes of 208 million to 212 million barrels of oil equivalent a day, compared with 2008's 206 million.

Anadarko's shares closed Tuesday at $39.24 and haven't traded premarket. The stock is down by half the past eight months.

-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; [e-mail]