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 News Releases - Anadarko


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HOUSTON, TX--(Marketwire - Jul 30, 2012) -  Anadarko Petroleum Corporation (NYSE: APC) today announced a second-quarter 2012 net loss attributable to common stockholders of $380 million, or $0.76 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items decreased net income by approximately $804 million, or $1.61 per share (diluted), on an after-tax basis.(1) Cash flow from operating activities in the second quarter of 2012 was approximately $2 billion, and discretionary cash flow totaled $1.951 billion.(2)

Second-Quarter 2012 Highlights

  • Delivered record daily sales volumes of 742,000 barrels of oil equivalent (BOE)
  • Increased oil sales volumes by approximately 20,000 barrels per day over first-quarter 2012
  • Generated more than $1.9 billion of discretionary cash flow from operating activities
  • Discovered second major natural gas complex offshore Mozambique
  • Increased estimated recoverable resources at the Gulf of Mexico Vito field to more than 300 million BOE

"Anadarko's positive momentum continued through the second quarter of 2012 with strong operating performance, delivering record sales volumes and enabling us to increase the midpoint of our full-year sales-volumes guidance by 3 million BOE without increasing capital," Anadarko President and CEO Al Walker said. "With record sales volumes and significant free cash flow during the first half of the year, our deep portfolio and efficient capital allocation continues to deliver growth and value in the current price environment. We are committed to operating within cash flow and selectively accelerating the value of longer-dated projects, as we did at the Gulf of Mexico Lucius development and the Salt Creek field in Wyoming during the quarter. The execution of our strategy is expected to continue to deliver industry-leading operating performance and exploration success, offering very competitive value-creation opportunities." 

Operations Summary
Sales volumes in the second quarter rose to a record 68 million BOE, or 742,000 BOE per day, an 8-percent increase over the second quarter of 2011. During the quarter, oil volumes averaged approximately 241,000 barrels per day, natural gas liquids averaged 77,000 barrels per day and natural gas averaged 2.54 billion cubic feet per day.

The company's record sales volumes were highlighted by an increase of approximately 20,000 barrels of oil per day (BOPD) over the first quarter of 2012. This growth was driven by the Wattenberg HZ (horizontal) program in northeast Colorado, Caesar/Tonga in the deepwater Gulf of Mexico and increased volumes resulting from the Algeria tax resolution. In Wattenberg, net sales volumes averaged approximately 85,000 BOE per day during the quarter. The company is currently producing from about 75 horizontal wells in the Wattenberg field that are delivering excellent results and rates of return exceeding 100 percent in the current price environment. Anadarko is currently running seven horizontal rigs in the play with plans to increase to 10 rigs over the next few months. The company also benefited from the first full quarter of production at Caesar/Tonga, which averaged approximately 40,000 BOPD gross from three wells. Anadarko plans to spud a fourth well in the development during the third quarter of 2012. In addition, the Eagleford Shale, East Texas HZ, Greater Natural Buttes and Marcellus Shale each achieved record sales volumes during the quarter.

Exploration Summary
Anadarko continued an active and successful exploration and appraisal program during the second quarter of 2012. Offshore Mozambique, the company extended its exploration success beyond the Prosperidade complex with the discoveries of Golfinho and Atum, forming the company's second major natural gas complex. The Golfinho/Atum complex is estimated to hold 10 to 30-plus trillion cubic feet of recoverable natural gas resources and is completely contained within the Offshore Area 1 block. Anadarko has begun an accelerated four-well appraisal program at Golfinho/Atum, with the first appraisal well encountering 254 net feet of natural gas pay. Significant progress was also made during the quarter at the company's Prosperidade complex, where the appraisal drilling program was successfully completed, and well testing is ongoing.

In West Africa, Anadarko announced its first significant discovery offshore Côte d'Ivoire with the successful Paon exploration well in the CI-103 block during the quarter. The well encountered more than 100 net feet of light oil pay in Turonian-aged sands and confirmed the Upper Cretaceous fan system present in Ghana extends westward into Côte d'Ivoire. In July, the company announced that the successful Wawa exploration well, located in the Deepwater Tano Block offshore Ghana, encountered approximately 108 net feet of oil and gas-condensate pay. Data indicate the Wawa discovery is a separate and distinct accumulation north of the TEN (Tweneboa, Enyenra and Ntomme) complex, and it extends the presence of hydrocarbon-bearing formations more than six miles north of the Enyenra-3A well. Within the TEN complex, the partnership's active appraisal program continued with a successful drillstem test at the Ntomme discovery. The well flowed at facility-constrained rates of more than 20,000 BOPD from two zones. These results provide additional confidence in advancing the TEN complex toward a Plan of Development, which is expected to be submitted to the Ghanaian government in the next few months.

In the Gulf of Mexico, Anadarko announced a successful sidetrack appraisal well at the Heidelberg field in the Green Canyon area, advancing the project closer to sanction, which is expected in early 2013. In the Mississippi Canyon area, the third successful appraisal well of the Vito discovery encountered approximately 620 net feet of oil pay, leading the partnership to significantly increase Vito's estimated recoverable resources to more than 300 million BOE from the previous estimate of more than 200 million BOE. 

Early in the second quarter, Anadarko closed the $400 million joint-venture agreement for future development costs at its Salt Creek Enhanced Oil Recovery field in Wyoming. Later in the quarter, the company signed a definitive agreement to enter into a joint venture for the Lucius development in the deepwater Gulf of Mexico. Under the terms of the definitive agreement, Anadarko will be carried for $556 million, which is estimated to represent 100 percent of its expected capital obligation at Lucius through first production. In exchange, Anadarko will convey a 7.2-percent working interest in the Lucius development and will continue as operator with a 27.8-percent working interest. The transaction is expected to close during the third quarter and is subject to customary closing conditions.

Operations Report
For more details on Anadarko's operations and exploration results, please refer to the comprehensive report on second-quarter 2012 activity. The report is available at http://ctt.marketwire.com/?release=914517&id=1855471&type=1&url=http%3a%2f%2fwww.anadarko.com%2f on the Investor Relations page.

Financial Summary
Anadarko ended the second quarter of 2012 with approximately $2.8 billion of cash on hand and generated approximately $142 million of free cash flow,(2) which includes the impact of $123 million of capital expenditures incurred by Western Gas Partners, LP (NYSE: WES). In addition to the free cash flow, Anadarko received approximately $113 million associated with the Algeria tax resolution, representing the first collection of an expected recoupment of approximately $1 billion during 2012. The company also reduced the outstanding balance of its revolving credit facility by approximately $800 million during the quarter, lowering its net debt(2) to approximately $12 billion and its net debt to adjusted capital ratio(2) to less than 38 percent.

As described in the items affecting comparability on page six of the release, the company recorded a non-cash charge of $978 million primarily related to the impairment of coalbed methane properties as a result of low natural gas prices.

Tronox
The company continues to seek a reasonable resolution of the Tronox Adversary Proceeding (the Proceeding), although the parties have not reached a mutually acceptable agreement as of the date of this release. Anadarko's second-quarter results included in this release are preliminary and do not reflect any updates to the financial reserve and associated taxes related to the Proceeding. The company's second-quarter Form 10-Q, to be filed on or before Aug. 9, 2012, will include updated disclosure regarding the Proceeding and any adjustments to these financial statements as appropriate.

Conference Call Tomorrow at 9 a.m. CDT, 10 a.m. EDT
Anadarko will host a conference call on Tuesday, July 31, at 9 a.m. Central Daylight Time (10 a.m. Eastern Daylight Time) to discuss second-quarter results, current operations and the company's outlook for the remainder of 2012. The dial-in number is 855.812.0464 in the United States, or 970.300.2271 internationally. The confirmation number is 98298659. For complete instructions on how to participate in the conference call, or to listen to the live audio webcast and slide presentation, please visit http://ctt.marketwire.com/?release=914517&id=1855474&type=1&url=http%3a%2f%2fwww.anadarko.com%2f. A replay of the call will 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 and APC Flash Feed updates, please visit http://ctt.marketwire.com/?release=914517&id=1855477&type=1&url=http%3a%2f%2fwww.anadarko.com%2f.

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, to meet financial and operating guidance, to consummate the transactions identified in this news release, and to 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.

Cautionary Note to U.S. Investors: Effective Jan. 1, 2010, the United States Securities and Exchange Commission ("SEC") permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC's definitions for such terms. Anadarko uses certain terms in this news release, such as "recoverable natural gas resources," "estimated recoverable resources" and similar terms that the SEC's guidelines strictly prohibit Anadarko from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in Anadarko's Form 10-K for the year ended Dec. 31, 2011, File No. 001-08968, available from Anadarko at http://ctt.marketwire.com/?release=914517&id=1855480&type=1&url=http%3a%2f%2fwww.anadarko.com%2f or by writing Anadarko at: Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The Woodlands, Texas 77380, Attn: Investor Relations. This form may also be obtained by contacting the SEC at 1-800-SEC-0330.

ANADARKO CONTACTS

MEDIA:
John Christiansen
john.christiansen@anadarko.com
832.636.8736
Brian Cain
brian.cain@anadarko.com
832.636.3404
Christina Ramirez
mailto:christina.ramirez@anadarko.com
832.636.8687

INVESTORS:
John Colglazier
john.colglazier@anadarko.com
832.636.2306
Wayne Rodrigs
wayne.rodrigs@anadarko.com
832.636.2305
   
   
Anadarko Petroleum Corporation  
Certain Items Affecting Comparability  
   
      Quarter Ended June 30, 2012  
      Before     After     Per Share  
millions except per-share amounts     Tax     Tax     (diluted)  
Unrealized gains (losses) on derivatives, net*     $ (225 )   $ (143 )   $ (0.29 )
Gains (losses) on divestitures, net       (12 )     (8 )     (0.02 )
Impairments, including unproved properties       (978 )     (628 )     (1.26 )
Gulf of Mexico accelerated depreciation, depletion, and amortization       (34 )     (22 )     (0.04 )
Change in uncertain tax positions (FIN 48)       --       (1 )     --  
Deepwater Horizon settlement and related costs       (3 )     (2 )     --  
      $ (1,252 )   $ (804 )   $ (1.61 )
                           

* For the quarter ended June 30, 2012, before-tax unrealized gains (losses) on derivatives, net includes $157 million related to commodity derivatives, $(374) million related to other derivatives, and $(8) million related to gathering, processing, and marketing sales. 

       
    Quarter Ended June 30, 2011  
    Before     After     Per Share  
millions except per-share amounts   Tax     Tax     (diluted)  
Unrealized gains (losses) on derivatives, net*   $ 178     $ 114     $ 0.22  
Gains (losses) on divestitures, net     (94 )     (79 )     (0.16 )
Impairments, including unproved properties     (147 )     (95 )     (0.19 )
Change in uncertain tax positions (FIN 48)     --       3       0.01  
Deepwater Horizon settlement and related costs     (9 )     (6 )     (0.01 )
    $ (72 )   $ (63 )   $ (0.13 )
                         

* For the quarter ended June 30, 2011, before-tax unrealized gains (losses) on derivatives, net includes $316 million related to commodity derivatives, $(142) million related to other derivatives, and $4 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 (non-GAAP), free cash flow (non-GAAP), and adjusted free cash flow (non-GAAP), as well as 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 because it is useful in comparisons of oil and gas exploration and production companies as it excludes fluctuations in assets and liabilities. Management uses free cash flow and adjusted free cash flow to demonstrate the Company's ability to internally fund capital expenditures and to service or incur additional debt. Management uses adjusted net income (loss) to evaluate the Company's operational trends and performance. 

             
    Quarter Ended
June 30,
    Six Months Ended
June 30,
 
millions   2012     2011     2012     2011  
Net cash provided by operating activities   $ 1,999     $ 1,837     $ 3,890     $ 3,126  
Add back:                                
  Deepwater Horizon settlement and related costs     9       9       (13 )     35  
  Algeria exceptional profits tax settlement     (113 )     --       (113 )     --  
  Change in accounts receivable     (256 )     284       (229 )     535  
  Change in accounts payable and accrued expenses     228       (418 )     486       (241 )
  Change in other items--net     84       135       (148 )     92  
Discretionary cash flow from operations   $ 1,951     $ 1,847     $ 3,873     $ 3,547  
                                 
                                 
                                 
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
 
    Quarter Ended   Six Months Ended
    June 30,   June 30,
millions   2012   2011   2012   2011
Discretionary cash flow from operations   $ 1,951   $ 1,847   $ 3,873   $ 3,547
Less: Capital expenditures*     1,809     1,721     3,599     3,308
Free cash flow   $ 142   $ 126   $ 274   $ 239
Collection of Algeria exceptional profits tax receivable     113     --     113     --
Adjusted free cash flow   $ 255   $ 126   $ 387   $ 239
                         

* Includes Western Gas Partners, LP (WES) capital expenditures of $123 million and $21 million for the three months ended June 30, 2012 and 2011, respectively, and $221 million and $338 million for the six months ended June 30, 2012 and 2011, respectively. 

             
             
    Quarter Ended     Quarter Ended  
    June 30, 2012     June 30, 2011  
millions except per-share amounts    After     Per Share     After     Per Share  
    Tax     (diluted)     Tax     (diluted)  
Net income (loss) attributable to common stockholders   $ (380 )   $ (0.76 )   $ 544     $ 1.08  
Less: Certain items affecting comparability     (804 )     (1.61 )     (63 )     (0.13 )
Adjusted net income (loss)   $ 424     $ 0.85     $ 607     $ 1.21  
                                 

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   June 30, 2012  
Total debt   $ 14,832  
Less: Cash and cash equivalents     2,794  
Net debt   $ 12,038  
         
Net debt   $ 12,038  
Stockholders' equity     19,945  
Adjusted capitalization   $ 31,983  
         
Net debt to adjusted capitalization ratio     38 %
         
         
         
Anadarko Petroleum Corporation  
(Unaudited)  
   
    Quarter Ended     Six Months Ended  
Summary Financial Information   June 30,     June 30,  
millions except per-share amounts   2012     2011     2012     2011  
Consolidated Statements of Income                                
Revenues and Other                                
Natural-gas sales   $ 496     $ 870     $ 1,069     $ 1,724  
Oil and condensate sales     2,222       2,236       4,466       4,043  
Natural-gas liquids sales     282       370       624       703  
Gathering, processing, and marketing sales     200       258       453       488  
Gains (losses) on divestitures and other, net     22       (58 )     57       (29 )
Total     3,222       3,676       6,669       6,929  
Costs and Expenses                                
Oil and gas operating     249       236       491       468  
Oil and gas transportation and other     223       207       463       416  
Exploration     1,121       236       1,365       415  
Gathering, processing, and marketing     178       205       367       376  
General and administrative     262       282       531       491  
Depreciation, depletion, and amortization     1,027       985       1,957       1,970  
Other taxes     326       413       703       757  
Impairments     112       102       162       104  
Algeria exceptional profits tax settlement     --       --       (1,804 )     --  
Deepwater Horizon settlement and related costs     3       9       11       35  
Total     3,501       2,675       4,246       5,032  
Operating Income (Loss)     (279 )     1,001       2,423       1,897  
Other (Income) Expense                                
Interest expense     190       216       376       436  
(Gains) losses on commodity derivatives, net     (420 )     (343 )     (468 )     (87 )
(Gains) losses on other derivatives, net     376       144       140       85  
Other (income) expense, net     6       (18 )     271       (42 )
Total     152       (1 )     319       392  
Income (Loss) Before Income Taxes     (431 )     1,002       2,104       1,505  
Income Tax Expense (Benefit)     (70 )     440       282       706  
Net Income (Loss)   $ (361 )   $ 562     $ 1,822     $ 799  
Net Income Attributable to Noncontrolling Interests     19       18       46       39  
Net Income (Loss) Attributable to Common Stockholders   $ (380 )   $ 544     $ 1,776     $ 760  
Per Common Share:                                
Net income (loss) attributable to common stockholders--basic   $ (0.76 )   $ 1.09     $ 3.54     $ 1.52  
Net income (loss) attributable to common stockholders--diluted   $ (0.76 )   $ 1.08     $ 3.52     $ 1.51  
Average Number of Common Shares Outstanding--Basic     500       498       499       497  
Average Number of Common Shares Outstanding--Diluted     500       500       501       499  
                                 
Exploration Expense                                
Dry hole expense   $ 115     $ 42     $ 204     $ 58  
Impairments of unproved properties     923       95       983       169  
Geological and geophysical expense     14       52       49       100  
Exploration overhead and other     69       47       129       88  
Total   $ 1,121     $ 236     $ 1,365     $ 415  
                                 
                                 
                                 
Anadarko Petroleum Corporation  
(Unaudited)  
   
    Quarter Ended     Six Months Ended  
Summary Financial Information   June 30,     June 30,  
millions   2012     2011     2012     2011  
Cash Flows from Operating Activities                        
Net income (loss)   $ (361 )   $ 562     $ 1,822     $ 799  
Depreciation, depletion, and amortization     1,027       985       1,957       1,970  
Deferred income taxes     (179 )     185       31       258  
Dry hole expense and impairments of unproved properties     1,038       137       1,187       227  
Impairments     112       102       162       104  
(Gains) losses on divestitures, net     12       18       29       18  
Unrealized (gains) losses on derivatives, net     225       (178 )     83       75  
Deepwater Horizon settlement and related costs     3       9       11       35  
Algeria exceptional profits tax settlement     --       --       (1,804 )     --  
Tronox-related contingent loss     --       --       275       --  
Other     74       27       120       61  
Discretionary Cash Flow from Operations     1,951       1,847       3,873       3,547  
Deepwater Horizon settlement and related costs     (9 )     (9 )     13       (35 )
Algeria exceptional profits tax settlement     113       --       113       --  
(Increase) decrease in accounts receivable     256       (284 )     229       (535 )
Increase (decrease) in accounts payable and accrued expenses     (228 )     418       (486 )     241  
Other items--net     (84 )     (135 )     148       (92 )
Net Cash Provided by Operating Activities   $ 1,999     $ 1,837     $ 3,890     $ 3,126  
                                 
Capital Expenditures   $ 1,809     $ 1,721     $ 3,599     $ 3,308  
                                 
                                 
  June 30,     December 31,  
millions 2012     2011  
Condensed Balance Sheets          
Cash and cash equivalents $ 2,794     $ 2,697  
Algeria exceptional profits tax settlement   1,629       --  
Other current assets   4,129       4,234  
Net properties and equipment   37,484       37,501  
Other assets   1,661       1,516  
Goodwill and other intangible assets   5,757       5,831  
Total Assets $ 53,454     $ 51,779  
Current debt $ 1,739     $ 170  
Other current liabilities   4,669       4,729  
Long-term debt   13,093       15,060  
Other long-term liabilities   12,966       12,837  
Stockholders' equity   19,945       18,105  
Noncontrolling interests   1,042       878  
Total Liabilities and Equity $ 53,454     $ 51,779  
Capitalization              
Total debt $ 14,832     $ 15,230  
Stockholders' equity   19,945       18,105  
Total $ 34,777     $ 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   Average Sales Price
    Natural Gas   Crude Oil & Condensate   NGLs   Natural Gas   Crude Oil & Condensate   NGLs   Natural Gas   Crude Oil & Condensate   NGLs
    MMcf/d   MBbls/d   MBbls/d   Bcf   MMBbls   MMBbls   Per Mcf   Per Bbl   Per Bbl
Quarter Ended June 30, 2012                                          
United States   2,544   156   77   230   15   7   $ 2.15   $ 98.20   $ 40.41
Algeria   --   59   --   --   5   --     --     103.61     --
Other International   --   26   --   --   3   --     --     113.95     --
Total   2,544   241   77   230   23   7   $ 2.15   $ 101.22   $ 40.41
                                           
Quarter Ended June 30, 2011                                          
United States   2,326   134   72   212   12   6   $ 4.11   $ 104.68   $ 56.21
Algeria   --   58   --   --   5   --     --     115.93     --
Other International   --   33   --   --   3   --     --     114.29     --
Total   2,326   225   72   212   20   6   $ 4.11   $ 108.99   $ 56.21
                                           
Six Months Ended June 30, 2012                                          
United States   2,480   148   78   450   27   14   $ 2.37   $ 101.76   $ 43.82
Algeria   --   54   --   --   10   --     --     110.88     --
Other International   --   30   --   --   6   --     --     117.72     --
Total   2,480   232   78   450   43   14   $ 2.37   $ 105.94   $ 43.82
                                           
Six Months Ended June 30, 2011                                          
United States   2,369   133   74   429   24   13   $ 4.02   $ 98.23   $ 52.47
Algeria       57   --   --   10   --     --     107.44     --
Other International       29   --   --   5   --     --     108.81     --
Total   2,369   219   74   429   39   13   $ 4.02   $ 102.04   $ 52.47
                                           
                                     
    Average Daily Volumes MBOE/d   Sales Volumes
MMBOE
                   
                                           
Quarter Ended June 30, 2012   742   68                          
Quarter Ended June 30, 2011   685   62                          
                                           
Six Months Ended June 30, 2012   723   132                          
Six Months Ended June 30, 2011   688   124                          
                                           
                                           
                                           
Sales Revenue and Commodity Derivatives                                    
                                       
  Sales   Commodity Derivatives Gain (Loss)
              Natural Gas     Crude Oil & Condensate   NGLs
millions Natural Gas   Crude Oil & Condensate   NGLs   Realized   Unrealized     Realized     Unrealized   Realized   Unrealized
Quarter Ended June 30, 2012                                                        
United States $ 496   $ 1,396   $ 282   $ 224   $ (288 )   $ 20     $ 414   $ 3   $ 31
Algeria   --     558     --     --     --       16       --     --     --
Other International   --     268     --     --     --       --       --     --     --
Total $ 496   $ 2,222   $ 282   $ 224   $ (288 )   $ 36     $ 414   $ 3   $ 31
                                                         
Quarter Ended June 30, 2011                                                        
United States $ 870   $ 1,279   $ 370   $ 71   $ (14 )   $ (44 )   $ 330   $ --   $ --
Algeria   --     613     --     --     --       --       --     --     --
Other International   --     344     --     --     --       --       --     --     --
Total $ 870   $ 2,236   $ 370   $ 71   $ (14 )   $ (44 )   $ 330   $ --   $ --
                                                         
Six Months Ended June 30, 2012                                                        
United States $ 1,069   $ 2,735   $ 624   $ 394   $ (202 )   $ 15     $ 241   $ 3   $ 29
Algeria   --     1,096     --     --     --       (12 )     --     --     --
Other International   --     635     --     --     --       --       --     --     --
Total $ 1,069   $ 4,466   $ 624   $ 394   $ (202 )   $ 3     $ 241   $ 3   $ 29
                                                         
Six Months Ended June 30, 2011                                                        
United States $ 1,724   $ 2,359   $ 703   $ 143   $ (61 )   $ (56 )   $ 55   $ --   $ --
Algeria   --     1,104     --     --     --       (3 )     9     --     --
Other International   --     580     --     --     --       --       --     --     --
Total $ 1,724   $ 4,043   $ 703   $ 143   $ (61 )   $ (59 )   $ 64   $ --   $ --
                                                         
                                                         
                                                         
Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of July 30, 2012
               
       
  3rd Qtr   Total Year
  Guidance   Guidance
               
  Units   Units
               
Total Sales (MMBOE) 65 - 67   261 - 265
Total Sales (MBOE/d) 707 - 728   713 - 724
               
Crude Oil (MBbl/d): 232 - 241   233 - 239
               
  United States 149 - 153   151 - 153
  Algeria 53 - 55   55 - 57
  Other International 30 - 33   27 - 29
               
Natural Gas (MMcf/d):              
               
  United States 2,390 - 2,415   2,410 - 2,425
               
Natural Gas Liquids (MBbl/d):              
               
  United States 84 - 90   80 - 83
               
               
  $ / Unit   $ / Unit
Price Differentials vs NYMEX (w/o hedges)              
               
Crude Oil ($/Bbl): 3.00 - 7.00   5.00 - 7.00
               
  United States 1.00 - 3.00   1.00 - 3.00
  Algeria 10.00 - 14.00   11.00 - 14.00
  Other International 11.00 - 15.00   12.00 - 15.00
               
Natural Gas ($/Mcf):              
               
  United States (0.10) - (0.15)   (0.05) - (0.15)
               
               
               
               
               
Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of July 30, 2012
               
       
  3rd Qtr   Total Year
  Guidance   Guidance*
               
  $ MM   $ MM
Other Revenues:              
  Marketing and Gathering Margin 20 - 40   160 - 180
  Minerals and Other 30 - 35   145 - 165
               
Costs and Expenses:              
  $ / BOE   $ / BOE
               
  Oil & Gas Direct Operating 4.00 - 4.25   3.95 - 4.15
  Oil & Gas Transportation/Other 3.75 - 3.95   3.60 - 3.80
  Depreciation, Depletion and Amortization 14.50 - 15.00   14.50 - 14.75
  Production Taxes (% of Revenue) 9.0% - 10.0%   10.0% - 11.0%
               
  $ MM   $ MM
               
  General and Administrative 280 - 300   1,075 - 1,175
  Exploration Expense              
    Non-Cash 150 - 200   650 - 750
    Cash 115 - 125   410 - 440
  Interest Expense (net) 190 - 195   760 - 775
  Other (Income) Expense - - (20)   60 - 100
               
Tax Rate:              
  Algeria (All current) 45% - 50%   50% - 55%
  Rest of Company (65% Current for 3Q and 20% for FY) 60% - 65%   45% - 50%
               
               
               
               
Avg. Shares Outstanding (MM)              
               
  Basic 499 - 501   499 - 501
  Diluted 501 - 503   501 - 503
               
Capital Investment (Excluding Western Gas Partners, LP) $ MM   $ MM
               
               
  APC Capital Expenditures 1,650 - 1,800   6,400 - 6,700
  Capitalized Interest 45 - 55   195 - 215
               

* Excluding items affecting comparability

 
 
 
Anadarko Petroleum Corporation
Commodity Hedge Positions (Excluding Natural Gas Basis)
As of July 30, 2012
                 
                 
                 
        Weighted Average Price per Barrel
             
    Volume (MBbls/d)   Floor Sold   Floor Purchased   Ceiling 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            
                       
                       
                 
         
    Volume (thousand MMBtu/d) Weighted Average Price per MMBtu      
Natural Gas                      
  Fixed Price - Financial                      
  2012   1,000   $ 4.69            
  2013   900   $ 4.00            
                     
                     
                     
Interest Rate Derivatives
As of July 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
                     



No