http://media.marketwire.com/attachments/201008/10984_anadarko.gifhttp://at.marketwire.com/accesstracking/AccessTrackingLogServlet?PrId=914517&ProfileId=051205&sourceType=1HOUSTON, TX -- (Marketwire) -- 07/30/12 -- 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 www.anadarko.com 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 www.anadarko.com. 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 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, 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 www.anadarko.com 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 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 Six Months Ended
June 30, 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
-------------------------- --------------------------
Crude Oil Crude Oil
Natural & Natural &
Gas Condensate NGLs Gas Condensate NGLs
MMcf/d MBbls/d MBbls/d Bcf MMBbls MMBbls
------- ---------- ------- ------- ---------- -------
Quarter Ended June
30, 2012
United States 2,544 156 77 230 15 7
Algeria -- 59 -- -- 5 --
Other International -- 26 -- -- 3 --
------- ---------- ------- ------- ---------- -------
Total 2,544 241 77 230 23 7
------- ---------- ------- ------- ---------- -------
Quarter Ended June
30, 2011
United States 2,326 134 72 212 12 6
Algeria -- 58 -- -- 5 --
Other International -- 33 -- -- 3 --
------- ---------- ------- ------- ---------- -------
Total 2,326 225 72 212 20 6
------- ---------- ------- ------- ---------- -------
Six Months Ended June
30, 2012
United States 2,480 148 78 450 27 14
Algeria -- 54 -- -- 10 --
Other International -- 30 -- -- 6 --
------- ---------- ------- ------- ---------- -------
Total 2,480 232 78 450 43 14
------- ---------- ------- ------- ---------- -------
Six Months Ended June
30, 2011
United States 2,369 133 74 429 24 13
Algeria 57 -- -- 10 --
Other International 29 -- -- 5 --
------- ---------- ------- ------- ---------- -------
Total 2,369 219 74 429 39 13
------- ---------- ------- ------- ---------- -------
======= ========== ======= ======= ========== =======
Anadarko Petroleum Corporation
(Unaudited)
Sales Volumes and
Prices
Average Sales Price
--------------------------
Crude Oil
Natural &
Gas Condensate NGLs
Per Mcf Per Bbl Per Bbl
------- ---------- -------
Quarter Ended June
30, 2012
United States $ 2.15 $ 98.20 $ 40.41
Algeria -- 103.61 --
Other International -- 113.95 --
------- ---------- -------
Total $ 2.15 $ 101.22 $ 40.41
------- ---------- -------
Quarter Ended June
30, 2011
United States $ 4.11 $ 104.68 $ 56.21
Algeria -- 115.93 --
Other International -- 114.29 --
------- ---------- -------
Total $ 4.11 $ 108.99 $ 56.21
------- ---------- -------
Six Months Ended June
30, 2012
United States $ 2.37 $ 101.76 $ 43.82
Algeria -- 110.88 --
Other International -- 117.72 --
------- ---------- -------
Total $ 2.37 $ 105.94 $ 43.82
------- ---------- -------
Six Months Ended June
30, 2011
United States $ 4.02 $ 98.23 $ 52.47
Algeria -- 107.44 --
Other International -- 108.81 --
------- ---------- -------
Total $ 4.02 $ 102.04 $ 52.47
------- ---------- -------
======= ========== =======
Average Daily Sales Volumes
Volumes MBOE/d 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
--------------------------
Crude Oil
Natural &
millions Gas Condensate NGLs
------- ---------- -------
Quarter Ended
June 30, 2012
United States $ 496 $ 1,396 $ 282
Algeria -- 558 --
Other
International -- 268 --
------- ---------- -------
Total $ 496 $ 2,222 $ 282
------- ---------- -------
Quarter Ended
June 30, 2011
United States $ 870 $ 1,279 $ 370
Algeria -- 613 --
Other
International -- 344 --
------- ---------- -------
Total $ 870 $ 2,236 $ 370
------- ---------- -------
Six Months
Ended June 30,
2012
United States $ 1,069 $ 2,735 $ 624
Algeria -- 1,096 --
Other
International -- 635 --
------- ---------- -------
Total $ 1,069 $ 4,466 $ 624
------- ---------- -------
Six Months
Ended June 30,
2011
United States $ 1,724 $ 2,359 $ 703
Algeria -- 1,104 --
Other
International -- 580 --
------- ---------- -------
Total $ 1,724 $ 4,043 $ 703
------- ---------- -------
Sales Revenue
and Commodity
Derivatives
Commodity Derivatives Gain (Loss)
-------------------------------------------------------------
Crude Oil &
Natural Gas Condensate NGLs
------------------- -------------------- -------------------
millions Realized Unrealized Realized Unrealized Realized Unrealized
-------- ---------- -------- ---------- -------- ----------
Quarter Ended
June 30, 2012
United States $ 224 $ (288) $ 20 $ 414 $ 3 $ 31
Algeria -- -- 16 -- -- --
Other
International -- -- -- -- -- --
-------- ---------- -------- ---------- -------- ----------
Total $ 224 $ (288) $ 36 $ 414 $ 3 $ 31
-------- ---------- -------- ---------- -------- ----------
Quarter Ended
June 30, 2011
United States $ 71 $ (14) $ (44) $ 330 $ -- $ --
Algeria -- -- -- -- -- --
Other
International -- -- -- -- -- --
-------- ---------- -------- ---------- -------- ----------
Total $ 71 $ (14) $ (44) $ 330 $ -- $ --
-------- ---------- -------- ---------- -------- ----------
Six Months
Ended June 30,
2012
United States $ 394 $ (202) $ 15 $ 241 $ 3 $ 29
Algeria -- -- (12) -- -- --
Other
International -- -- -- -- -- --
-------- ---------- -------- ---------- -------- ----------
Total $ 394 $ (202) $ 3 $ 241 $ 3 $ 29
-------- ---------- -------- ---------- -------- ----------
Six Months
Ended June 30,
2011
United States $ 143 $ (61) $ (56) $ 55 $ -- $ --
Algeria -- -- (3) 9 -- --
Other
International -- -- -- -- -- --
-------- ---------- -------- ---------- -------- ----------
Total $ 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 Floor Ceiling
(MBbls/d) Floor 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
Weighted
Volume Average
(thousand Price per
MMBtu/d) 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