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 News Releases - Anadarko



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HOUSTON, TX, Apr 30, 2012 (MARKETWIRE via COMTEX) --Anadarko Petroleum Corporation (NYSE: APC) today announced first-quarter 2012 net income attributable to common stockholders of $2.156 billion, or $4.28 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items increased net income by approximately $1.681 billion, or $3.36 per share (diluted) on an after-tax basis.(1) Cash flow from operating activities in the first quarter of 2012 was $1.891 billion, and discretionary cash flow totaled $1.922 billion.(2)

First-Quarter 2012 Highlights

--  Delivered record daily sales volumes of 704,000 barrels of oil
    equivalent per day (BOE/d), including record liquids volumes of
    301,000 barrels per day, comprised of approximately 75 percent crude
    oil
--  Announced positive resolution of the Algeria tax dispute
--  Achieved first oil at Caesar/Tonga and ramped production to more than
    45,000 BOE/d
--  Announced deep-water drilling success in Mozambique, Ghana and the
    Gulf of Mexico
--  Completed successful drill-stem tests in Mozambique and Ghana

"Anadarko delivered record operating results, generated more than $130 million of free cash flow and successfully appraised discoveries in Mozambique, the Gulf of Mexico and Ghana during the first quarter of 2012," said Anadarko Chairman and CEO Jim Hackett. "The operating results were highlighted by record sales volumes, a year-over-year increase of 27,000 barrels per day from our liquids-rich U.S. onshore growth properties, and the startup of oil production at Caesar/Tonga in the Gulf of Mexico. In addition, we resolved the Algeria tax dispute in a mutually beneficial manner that resulted in a $1.8 billion benefit in the first quarter, of which we expect to receive approximately $1 billion in cash during 2012 and the balance during the first half of 2013. The resolution also included amended contract terms, which are expected to result in approximately 1.6 million barrels of additional oil volumes during 2012. This is reflected in our increased sales-volumes guidance range of 258 to 262 million BOE, with no corresponding increase in capital."

Operations Summary Sales volumes in the first quarter rose to 64 million BOE, or a record 704,000 BOE/d, averaging approximately 221,000 barrels of oil per day (BOPD), 80,000 barrels of natural gas liquids per day and 2.4 billion cubic feet of natural gas per day.

The company delivered a record 301,000 barrels of liquids per day, benefitting from a 50-percent year-over-year increase in liquids sales volumes from the five major liquids-rich plays highlighted during Anadarko's March 13 Investor Conference (the Wattenberg, Eagleford, Permian, East Texas HZ and Greater Natural Buttes plays). The Wattenberg field in Colorado accounted for a significant portion of this growth, by ramping up year-over-year liquids sales volumes by approximately 12,000 barrels per day.

As referenced in the highlights, Anadarko achieved first production at the Caesar/Tonga mega project in the Gulf of Mexico in early March, and is currently producing more than 45,000 BOE/d from three wells. The partnership plans to drill a fourth well in the third quarter of this year. At Independence Hub, the Cheyenne East well was brought on line.

Exploration Summary Anadarko and its partners drilled six successful deep-water exploration/appraisal wells during the first quarter of 2012. In West Africa, the Ntomme-2A and Enyenra-4A appraisal wells offshore Ghana encountered significant oil pay, enhancing the value and expanding the areal extent of the TEN (Tweneboa, Enyenra and Ntomme) complex. The company also successfully completed a drill-stem test at its Owo discovery well, which flowed at facility-constrained rates exceeding 20,000 BOPD from multiple zones. Offshore Sierra Leone, Anadarko and its partners encountered hydrocarbon pay at the Jupiter-1 prospect, and evaluation of the area is ongoing.

Offshore Mozambique in the Prosperidade complex, the company announced successful appraisal wells at Lagosta-2 and Lagosta-3 during the quarter. Anadarko and its partners also successfully conducted a drill-stem test at the Barquentine-2 well during the quarter and another at the Barquentine-1 well subsequent to quarter's end. Both demonstrated outstanding reservoir characteristics, flowing at facility-constrained rates of approximately 100 million cubic feet per day (MMcf/d). The results of both drill-stem tests support well designs with potential flow rates of up to 200 MMcf/d. In April, following the successful Barquentine-4 appraisal well, Anadarko and its partners announced the completion of the appraisal drilling program in the complex. The company has now restarted its exploration program with the Golfinho prospect more than 15 miles northwest of Prosperidade.

In February, Anadarko announced that the Heidelberg-2 appraisal well in the Gulf of Mexico encountered more than 250 net feet of oil pay, and a recent down-dip sidetrack appraisal well at Heidelberg confirmed an extension of up to 1,500 acres in the field. Pre-FEED (front-end engineering and design) work has been initiated at Heidelberg to evaluate development solutions. The company also recently spud the Spartacus well that will target subsalt layers in the vicinity of Anadarko's Lucius mega project, which is currently under development.

Earlier this month, Anadarko announced encouraging results from its exploration drilling program in the Utica Shale play of eastern Ohio. The company plans to continue evaluating the liquids-rich potential of its 390,000-acre (gross) position in the Utica throughout 2012.

Financial Summary Anadarko ended the first quarter of 2012 with approximately $3.0 billion of cash on hand, and generated approximately $132 million of free cash flow(2) during the first quarter, which includes the impact of $98 million of capital expenditures incurred by Western Gas Partners, LP (NYSE: WES). Anadarko retired approximately $131 million of 6.125 percent senior notes due in 2012, and reduced its net-debt-to-capital ratio(2) to 38 percent, compared to 41 percent at year-end 2011. Also, Moody's Investors Service returned Anadarko's senior unsecured rating to investment grade at Baa3, with a stable outlook. In addition, the company recently closed the divestiture of its South Texas assets, as well as finalized a $400 million joint-venture agreement at its enhanced oil recovery development in the Salt Creek field in Wyoming.

As described in the items affecting comparability on page 5 of the release, the company recorded an additional non-cash charge of $275 million related to the Tronox Adversary Proceeding. Also included in the items affecting comparability is the $1.8 billion benefit associated with the resolution of the Algeria tax dispute.

Operations Report For more details on Anadarko's operations, please refer to the comprehensive report on first-quarter 2012 activity. The report is available at www.anadarko.com on the Investor Relations page.

Conference Call Tomorrow at 9 a.m. CDT, 10 a.m. EDT Anadarko will host a conference call on Tuesday, May 1, at 9 a.m. Central Daylight Time (10 a.m. Eastern Daylight Time) to discuss first-quarter results, current operations and the company's outlook for the remainder of 2012. The dial-in number is 888.680.0890 in the United States or 617.213.4857 internationally. The confirmation number is 35225653. For complete instructions on how to participate in the conference call, or to listen to the live audio webcast and slide presentation, please visit www.anadarko.com. A replay of the call will also be available on the website for approximately 30 days following the conference call.

Financial Data Eight pages of summary financial data follow, including current hedge positions and updated financial and production guidance.

(1) See the accompanying table for details of certain items affecting comparability.

(2) See the accompanying table for a reconciliation of GAAP to non-GAAP financial measures and a statement indicating why management believes the non-GAAP financial measures provide useful information for investors.

Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2011, the company had approximately 2.54 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. For more information about Anadarko, please visit www.anadarko.com.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Anadarko believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release, including Anadarko's ability to drill, develop and commercially operate the drilling prospects identified in this news release and successfully plan, build and operate an LNG project. See "Risk Factors" in the company's 2011 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.

                       Anadarko Petroleum Corporation
                    Certain Items Affecting Comparability

                                           Quarter Ended March 31, 2012
                                      -------------------------------------
                                         Before       After      Per Share
millions except per-share amounts         Tax          Tax       (diluted)
                                      -----------  -----------  -----------
Unrealized gains (losses) on
 derivatives, net*                    $       142  $        90  $      0.18
Gains (losses) on divestitures, net           (17)         (11)       (0.02)
Impairments, including unproved
 properties                                   (53)         (34)       (0.07)
Change in uncertain tax positions
 (FIN48)                                       --           12         0.03
Algeria exceptional profits tax
 settlement                                 1,804        1,804         3.60
Tronox-related contingent loss               (275)        (175)       (0.35)
Deepwater Horizon settlement and
 related costs                                 (8)          (5)       (0.01)
                                      -----------  -----------  -----------
                                      $     1,593  $     1,681  $      3.36
                                      ===========  ===========  ===========


* For the quarter ended March 31, 2012, before-tax unrealized gains (losses) on derivatives, net includes $(89) million related to commodity derivatives, $236 million related to other derivatives, and $(5) million related to gathering, processing, and marketing sales.

                                           Quarter Ended March 31, 2011
                                      -------------------------------------
                                         Before       After      Per Share
millions except per-share amounts         Tax          Tax       (diluted)
                                      -----------  -----------  -----------
Unrealized gains (losses) on
 derivatives, net*                    $      (253) $      (160) $     (0.32)
Tronox damage claim settlement                 46           29         0.06
Impairments, including unproved
 properties                                    (2)          (2)          --
Deepwater Horizon settlement and
 related costs                                (26)         (17)       (0.04)
                                      -----------  -----------  -----------
                                      $      (235) $      (150) $     (0.30)
                                      ===========  ===========  ===========


* For the quarter ended March 31, 2011, before-tax unrealized gains (losses) on derivatives, net includes $(313) million related to commodity derivatives, $59 million related to other derivatives, and $1 million related to gathering, processing, and marketing sales.

Reconciliation of GAAP to Non-GAAP Measures

Below are reconciliations of cash provided by operating activities (GAAP) to discretionary cash flow from operations and free cash flow (non-GAAP), and net income (loss) attributable to common stockholders (GAAP) to adjusted net income (loss) (non-GAAP) as required under Regulation G of the Securities Exchange Act of 1934. Management uses discretionary cash flow from operations and free cash flow to demonstrate the Company's ability to internally fund capital expenditures 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. Management uses adjusted net income (loss) to evaluate the Company's operational trends and performance.

                                                    Quarter Ended March 31,
                                                   ------------------------
millions                                               2012         2011
                                                   -----------  -----------
Net cash provided by operating activities          $     1,891  $     1,289
Add back:
  Deepwater Horizon settlement and related costs           (22)          26
  Change in accounts receivable                             27          251
  Change in accounts payable and accrued expenses          258          177
  Change in other items--net                              (232)         (43)
                                                   -----------  -----------
Discretionary cash flow from operations            $     1,922  $     1,700
                                                   ===========  ===========



                       Anadarko Petroleum Corporation
                 Reconciliation of GAAP to Non-GAAP Measures

                                                          Quarter Ended
                                                            March 31,
                                                     -----------------------
millions                                                 2012        2011
                                                     ----------- -----------
Discretionary cash flow from operations              $     1,922 $     1,700
Less: Capital expenditures*                                1,790       1,587
                                                     ----------- -----------
Free cash flow                                       $       132 $       113
                                                     =========== ===========

* Includes Western Gas Partners, LP (WES) capital expenditures of $98 million and $317 million for the quarter ended March 31, 2012 and 2011, respectively.

                                      Quarter Ended        Quarter Ended
                                      March 31, 2012      March 31, 2011
                                   ------------------- --------------------
                                     After   Per Share   After    Per Share
millions except per-share amounts     Tax    (diluted)    Tax     (diluted)
                                   --------- --------- ---------  ---------
Net income (loss) attributable to
 common stockholders               $   2,156 $    4.28 $     216  $    0.43
Less: Certain items affecting
 comparability                         1,681      3.36      (150)     (0.30)
                                   --------- --------- ---------  ---------
Adjusted net income (loss)         $     475 $    0.92 $     366  $    0.73
                                   ========= ========= =========  =========

Presented below is a reconciliation of total debt (GAAP) to net debt (non-GAAP). Management uses net debt as a measure of the Company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand.

millions                                                      March 31, 2012
                                                              --------------
Total debt                                                    $       15,386
Less: Cash and cash equivalents                                        2,957
                                                              --------------
Net debt                                                      $       12,429
                                                              ==============

Net debt                                                      $       12,429
Stockholders' equity                                                  20,279
                                                              --------------
Adjusted capitalization                                       $       32,708
                                                              ==============

                                                              --------------
Net debt to adjusted capitalization ratio                                38%
                                                              ==============



                       Anadarko Petroleum Corporation
                                 (Unaudited)

                                                           Quarter Ended
Summary Financial Information                                March 31,
                                                       --------------------
millions except per-share amounts                         2012       2011
                                                       ---------  ---------
Consolidated Statements of Income
                                                       ---------  ---------
Revenues and Other
                                                       ---------  ---------
Natural-gas sales                                      $     573  $     854
Oil and condensate sales                                   2,244      1,807
Natural-gas liquids sales                                    342        333
Gathering, processing, and marketing sales                   253        230
Gains (losses) on divestitures and other, net                 35         29
                                                       ---------  ---------
Total                                                      3,447      3,253
                                                       =========  =========
Costs and Expenses
                                                       ---------  ---------
Oil and gas operating                                        242        232
Oil and gas transportation and other                         240        209
Exploration                                                  244        179
Gathering, processing, and marketing                         189        171
General and administrative                                   269        209
Depreciation, depletion, and amortization                    930        985
Other taxes                                                  377        344
Impairments                                                   50          2
Algeria exceptional profits tax settlement                (1,804)        --
Deepwater Horizon settlement and related costs                 8         26
                                                       ---------  ---------
Total                                                        745      2,357
                                                       =========  =========
Operating Income (Loss)                                    2,702        896
                                                       =========  =========
Other (Income) Expense
                                                       ---------  ---------
Interest expense                                             186        220
(Gains) losses on commodity derivatives, net                 (48)       256
(Gains) losses on other derivatives, net                    (236)       (59)
Other (income) expense, net                                  265        (24)
                                                       ---------  ---------
Total                                                        167        393
                                                       =========  =========
Income (Loss) Before Income Taxes                          2,535        503
                                                       =========  =========
Income Tax Expense (Benefit)                                 352        266
                                                       =========  =========
Net Income (Loss)                                      $   2,183  $     237
                                                       =========  =========
Net Income Attributable to Noncontrolling Interests           27         21
                                                       =========  =========
Net Income (Loss) Attributable to Common Stockholders  $   2,156  $     216
                                                       =========  =========
Per Common Share:
                                                       =========  =========
Net income (loss) attributable to common stockholders-
 -basic                                                $    4.30  $    0.43
Net income (loss) attributable to common stockholders-
 -diluted                                              $    4.28  $    0.43
                                                       =========  =========
Average Number of Common Shares Outstanding--Basic           499        497
                                                       =========  =========
Average Number of Common Shares Outstanding--Diluted         501        499
                                                       =========  =========

                                                       =========  =========
Exploration Expense
                                                       ---------  ---------
Dry hole expense                                       $      89  $      16
Impairments of unproved properties                            60         74
Geological and geophysical expense                            35         48
Exploration overhead and other                                60         41
                                                       ---------  ---------
Total                                                  $     244  $     179
                                                       =========  =========



                       Anadarko Petroleum Corporation
                                 (Unaudited)

                                                           Quarter Ended
Summary Financial Information                                March 31,
                                                       --------------------
millions                                                  2012       2011
                                                       ---------  ---------
Cash Flows from Operating Activities
                                                       ---------  ---------
Net income (loss)                                      $   2,183  $     237
Depreciation, depletion, and amortization                    930        985
Deferred income taxes                                        210         73
Dry hole expense and impairments of unproved
 properties                                                  149         90
Impairments                                                   50          2
(Gains) losses on divestitures, net                           17         --
Unrealized (gains) losses on derivatives, net               (142)       253
Deepwater Horizon settlement and related costs*                8         26
Algeria exceptional profits tax settlement                (1,804)        --
Tronox-related contingent loss                               275         --
Other                                                         46         34
                                                       ---------  ---------
Discretionary Cash Flow from Operations                    1,922      1,700
Deepwater Horizon settlement and related costs                22        (26)
(Increase) decrease in accounts receivable                   (27)      (251)
Increase (decrease) in accounts payable and accrued
 expenses                                                   (258)      (177)
Other items--net                                             232         43
                                                       ---------  ---------
Net Cash Provided by Operating Activities              $   1,891  $   1,289
                                                       =========  =========

                                                       =========  =========
Capital Expenditures                                   $   1,790  $   1,587
                                                       ---------  ---------


* Deepwater Horizon settlement and related costs are excluded from discretionary cash flow from operations.

                                                   March 31,   December 31,
millions                                             2012          2011
                                                 ------------  ------------
Condensed Balance Sheets
                                                 ------------  ------------
Cash and cash equivalents                        $      2,957  $      2,697
Algeria exceptional profits tax settlement              1,458            --
Other current assets                                    4,299         4,234
Net properties and equipment                           38,166        37,501
Other assets                                            1,816         1,516
Goodwill and other intangible assets                    5,825         5,831
                                                 ------------  ------------
Total Assets                                     $     54,521  $     51,779
                                                 ------------  ------------
Current debt                                     $         39  $        170
Other current liabilities                               4,858         4,729
Long-term debt                                         15,347        15,060
Other long-term liabilities                            13,113        12,837
Stockholders' equity                                   20,279        18,105
Noncontrolling interests                                  885           878
                                                 ------------  ------------
Total Liabilities and Equity                     $     54,521  $     51,779
                                                 ============  ============
Capitalization
                                                 ------------  ------------
Total debt                                       $     15,386  $     15,230
Stockholders' equity                                   20,279        18,105
                                                 ------------  ------------
Total                                            $     35,665  $     33,335
                                                 ============  ============
Capitalization Ratios
                                                 ------------  ------------
Total debt                                                 43%           46%
Stockholders' equity                                       57%           54%
                                                 ============  ============



                       Anadarko Petroleum Corporation
                                 (Unaudited)

Sales Volumes and
 Prices

                          Average Daily Volumes          Sales Volumes
                       -------------------------- --------------------------
                                Crude Oil                  Crude Oil
                       Natural      &             Natural      &
                         Gas   Condensate   NGLs    Gas   Condensate   NGLs
                        MMcf/d   MBbls/d  MBbls/d   Bcf     MMBbls    MMBbls
                       ------- ---------- ------- ------- ---------- -------
Quarter Ended March
 31, 2012
United States            2,416        138      80     220         12       7
Algeria                     --         50      --      --          5      --
Other International         --         33      --      --          3      --
                       ------- ---------- ------- ------- ---------- -------
Total                    2,416        221      80     220         20       7
                       ------- ---------- ------- ------- ---------- -------

Quarter Ended March
 31, 2011
United States            2,412        131      76     217         12       7
Algeria                     --         55      --      --          5      --
Other International         --         26      --      --          2      --
                       ------- ---------- ------- ------- ---------- -------
Total                    2,412        212      76     217         19       7
                       ------- ---------- ------- ------- ---------- -------

           Anadarko Petroleum Corporation
                     (Unaudited)

Sales Volumes and
 Prices

                           Average Sales Price
                      -----------------------------
                       Natural Crude Oil &
                         Gas    Condensate   NGLs
                       Per Mcf   Per Bbl    Per Bbl
                      -------- ----------- --------
Quarter Ended March
 31, 2012
United States         $   2.60 $    105.75 $  47.09
Algeria                     --      119.57       --
Other International         --      120.64       --
                      -------- ----------- --------
Total                 $   2.60 $    111.07 $  47.09
                      -------- ----------- --------

Quarter Ended March
 31, 2011
United States         $   3.93 $     91.56 $  48.86
Algeria                     --       98.45       --
Other International         --      101.66       --
                      -------- ----------- --------
Total                 $   3.93 $     94.58 $  48.86
                      -------- ----------- --------



                                         ===================================

                                            Average Daily     Sales Volumes
                                            Volumes MBOE/d        MMBOE
                                         ------------------- ---------------

Quarter Ended March 31, 2012                     704                64
Quarter Ended March 31, 2011                     690                62

                                         ===================================


Sales Revenue
 and
 Commodity
 Derivatives

                          Sales
              -----------------------------
               Natural Crude Oil &
millions         Gas    Condensate   NGLs
              -------- ----------- --------
Quarter Ended
 March 31,
 2012
United States $    573 $     1,339 $    342
Algeria             --         538       --
Other
 International      --         367       --
              -------- ----------- --------
Total         $    573 $     2,244 $    342
              -------- ----------- --------

Quarter Ended
 March 31,
 2011
United States $    854 $     1,080 $    333
Algeria             --         491       --
Other
 International      --         236       --
              -------- ----------- --------
Total         $    854 $     1,807 $    333
              -------- ----------- --------




Sales Revenue
 and
 Commodity
 Derivatives

                            Commodity Derivatives Gain (Loss)
             --------------------------------------------------------------
                                       Crude Oil &
                 Natural Gas           Condensate               NGLs
             -------------------  --------------------  -------------------
millions     Realized Unrealized  Realized  Unrealized  Realized Unrealized
             -------- ----------  --------  ----------  -------- ----------
Quarter Ended
 March 31,
 2012
United States$    170 $       86  $     (5) $     (173) $     -- $       (2)
Algeria            --         --       (28)         --        --         --
Other
 International     --         --        --          --        --         --
             -------- ----------  --------  ----------  -------- ----------
Total        $    170 $       86  $    (33) $     (173) $     -- $       (2)
             -------- ----------  --------  ----------  -------- ----------

Quarter Ended
 March 31,
 2011
United States$     72 $      (47) $    (12) $     (275) $     -- $       --
Algeria            --         --        (3)          9        --         --
Other
 International     --         --        --          --        --         --
             -------- ----------  --------  ----------  -------- ----------
Total        $     72 $      (47) $    (15) $     (266) $     -- $       --
             -------- ----------  --------  ----------  -------- ----------



                       Anadarko Petroleum Corporation
                  Financial and Operating External Guidance
                            As of April 30, 2012


                                              2nd Qtr          Total Year
                                              Guidance          Guidance
                                         ----------------- -----------------

                                               Units             Units
                                         ----------------- -----------------

Total Sales (MMBOE)                           64  -     66     258  -    262

Crude Oil (MBbl/d):                          235  -    243     237  -    243

  United States                              154  -    158     155  -    157
  Algeria                                     57  -     58      56  -     58
  Other International                         24  -     27      26  -     28

Natural Gas (MMcf/d):

  United States                            2,375  -  2,400   2,320  -  2,340

Natural Gas Liquids (MBbl/d):

  United States                               77  -     79      80  -     83

                                         -----------------------------------

                                              $ / Unit          $ / Unit
                                         ----------------- -----------------
Price Differentials vs NYMEX (w/o
 hedges)

Crude Oil ($/Bbl):                          6.00  -  10.00    5.00  -   8.00

  United States                             2.00  -   4.00    1.00  -   3.00
  Algeria                                  15.00  -  18.00   12.00  -  15.00
  Other International                      16.00  -  19.00   12.00  -  15.00

Natural Gas ($/Mcf):

  United States                           (0.10)  - (0.15)  (0.10)  - (0.20)


                                         -----------------------------------




                       Anadarko Petroleum Corporation
                  Financial and Operating External Guidance
                            As of April 30, 2012


                                            2nd Qtr            Total Year
                                            Guidance            Guidance
                                       -----------------   -----------------

                                              $ MM                $ MM
                                       -----------------   -----------------
Other Revenues:
  Marketing and Gathering Margin            55  -     75       240  -    280
  Minerals and Other                        35  -     45       155  -    180
                                       -------------------------------------

Costs and Expenses:
                                            $ / BOE             $ / BOE
                                       -----------------   -----------------
  Oil & Gas Direct Operating              3.95  -   4.15      4.00  -   4.25
  Oil & Gas Transportation/Other          3.70  -   3.95      3.65  -   3.90
  Depreciation, Depletion and
   Amortization                          14.50  -  14.80     14.50  -  15.00
  Production Taxes (% of Revenue)        11.0%  -  12.0%     10.0%  -  11.0%

                                              $ MM                $ MM
                                       -----------------   -----------------

  General and Administrative               290  -    310     1,100  -  1,200
  Exploration Expense
    Non-Cash                               125  -    150       650  -    750
    Cash                                   100  -    120       400  -    450
  Interest Expense (net)                   195  -    200       770  -    795
  Other (Income) Expense                     -  -   (20)       195  -    275

Tax Rate:

  Algeria (All current)                    55%  -    60%       50%  -    55%
  Rest of Company (20% Current, 80%
   Deferred)                               40%  -    45%       45%  -    50%


                                       -------------------------------------


Avg. Shares Outstanding (MM):

  Basic                                    498  -    500       498  -    500
  Diluted                                  502  -    503       501  -    503

                                              $ MM                $ MM
                                       -----------------   -----------------
Capital Investment*

  Capital Expenditures                   1,600  -  1,750     6,400  -  6,700
  Capitalized Interest                      45  -     55       195  -    215

*Excludes Western Gas Partners, LP
 (WES)



                       Anadarko Petroleum Corporation
           Commodity Hedge Positions (Excluding Natural Gas Basis)
                            As of April 30, 2012



                                            Weighted Average Price per MMBtu
                                            --------------------------------

                                    Volume
                                  (thousand               Floor     Ceiling
                                  MMBtu/d)  Floor Sold  Purchased    Sold
                                  --------- ---------- ---------- ----------
Natural Gas
  Fixed Price - Financial
  2012                                1,000 $     4.69

  Three-Way Collars
  2013                                  450 $     4.00 $     5.00 $     6.57

                                                Weighted Average Price per
                                                          barrel
                                            --------------------------------

                                    Volume     Floor      Floor     Ceiling
                                  (MBbls/d)     Sold    Purchased     Sold
                                  --------- ---------- ---------- ----------
Crude Oil
  Three-Way Collars
  2012
    Brent                                45 $    85.00 $   105.00 $   125.60
    WTI                                  17 $    71.36 $    90.91 $   113.30
                                  --------- ---------- ---------- ----------
                                         62 $    81.34 $   101.22 $   122.30

  Fixed Price - Financial
  2012
    Brent                                40 $   110.10
    WTI                                  20 $   101.39
                                  --------- ----------
                                         60 $   107.19





                          Interest Rate Derivatives
                            As of April 30, 2012

Instrument  Notional Amt.  Start Date    Maturity   Rate Paid  Rate Received
---------- -------------- ------------ ------------ --------- --------------

   Swap     $250 Million  October 2012 October 2022   4.91%      3M LIBOR
   Swap     $750 Million  October 2012 October 2042   4.80%      3M LIBOR
   Swap     $750 Million    June 2014    June 2024    6.00%      3M LIBOR
   Swap    $1,100 Million   June 2014    June 2044    5.57%      3M LIBOR


ANADARKO CONTACTS

MEDIA:
John Christiansen
john.christiansen@anadarko.com
832.636.8736

Brian Cain
brian.cain@anadarko.com
832.636.3404

Christina Ramirez
christina.ramirez@anadarko.com
832.636.8687

INVESTORS:
John Colglazier
john.colglazier@anadarko.com
832.636.2306

Clay Gaspar
clay.gaspar@anadarko.com
832.636.2541

Wayne Rodrigs
wayne.rodrigs@anadarko.com
832.636.2305

SOURCE: Anadarko Petroleum Corporation



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