First-quarter 2009 sales volumes of natural gas, crude oil and natural gasliquids totaled 54 million BOE, or 600,000 BOE per day. First-quarter 2009natural gas sales volumes averaged 2.3 billion cubic feet per day. Oil salesvolumes in the first quarter averaged 174,000 barrels per day and natural gasliquids sales volumes averaged 40,000 barrels per day CONFERENCE CALL TOMORROW AT 9 A.M CDT, 10 A.M. EDTAnadarko will host a conference call on Thursday, May 7, at 9 a.m CentralDaylight Time (10 a.m. Eastern Daylight Time) to discuss first-quarter resultsand the company`s outlook for the remainder of 2009. The dial-in number is888.713.4213 in the United States or 617.213.4865 internationally Theconfirmation number is 62504318.
For complete instructions on how to participatein the conference call, or to listen to the live audio webcast and slidepresentation, please visit A replay of the call will also beavailable on the Web site for approximately 30 days following the conferencecall. ANADARKO OPERATIONS REPORTFor more details on Anadarko`s operations, please refer to the comprehensivereport on first-quarter activity. The report will be available at on the Investor Relations page. FINANCIAL DATANine pages of summary financial data follow, including current hedge positions,financial guidance and supplemental production guidance. Anadarko Petroleum Corporation`s mission is to deliver a competitive andsustainable rate of return to shareholders by exploring for, acquiring anddeveloping oil and natural gas resources vital to the world`s health andwelfare. As of year-end 2008, the company had approximately 2.3 billion barrelsof oil equivalent of proved reserves, making it one of the world`s largestindependent exploration and production companies. For more information aboutAnadarko, please visit (1) See the accompanying table for details of certain items affectingcomparability.
(2) See the accompanying table for a reconciliation of GAAP to non-GAAPfinancial measures and a statement indicating why management believes thenon-GAAP financial measures provide useful information for investors. This news release contains forward-looking statements within the meaning ofSection 27A of the Securities Act of 1933 and Section 21E of the SecuritiesExchange Act of 1934. Anadarko believes that its expectations are based onreasonable assumptions. No assurance, however, can be given that suchexpectations will prove to have been correct. A number of factors could causeactual results to differ materially from the projections, anticipated results orother expectations expressed in this news release, including Anadarko`s abilityto achieve its production targets, successfully manage its capital expenditures,and timely complete andcommercially operate the drilling prospects identified inthis news release.See "Risk Factors" in the company`s 2008 Annual Report on Form10-K and other public filings and press releases. Anadarko undertakes noobligation to publicly update or revise any forward-looking statements. The company uses discretionary cash flow and free cash flow to demonstrate the company's ability to internally fund capitalexpenditures and to service or incur additional debt.
It is useful in comparisons of oil and gas exploration and production companies because it excludes fluctuations in assets and liabilities. The company uses adjustednet income from continuing operations to evaluate the company`s operational trends and performance. Quarter EndedMarch 31 millions2009 2008Cash FlowNet cash provided by operating activities - continuing operations $527 $ 2,008 Add back:Change in accounts receivable(256) (412 )Change in accounts payable and accrued expenses589 87Change in other items - net(119) 187 Discretionary Cash Flow from Continuing Operations* $741 $ 1,870*Discretionary cash flow from continuing operations for the quarter ended March 31, 2009 was reduced by current tax expense of $85 million. However, actual cash tax payments for the quarter ended March 31, 2009 were $207million. For the same period of 2008, discretionary cash flow from continuing operations was reduced by current tax expense of $309 million. However, actual cash tax refunds for the quarter ended March 31, 2008 were $296million.Anadarko Petroleum Corporation Reconciliation of GAAP to Non-GAAP Measures Quarter EndedMarch 31 millions20092008 Discretionary cash flow from continuing operations$741$ 1,870Less: Capital expenditures 1,1071,056Free Cash Flow**$(366 ) $ 814 **Free cash flow for the quarter ended March 31, 2009 was reduced by current tax expense of $85 million.