NEWS
ANADARKO ANNOUNCES THIRD-QUARTER 2013 RESULTS
HOUSTON, Nov. 4, 2013 - Anadarko Petroleum Corporation (NYSE: APC) today announced third-quarter 2013 net income attributable to common stockholders of $182 million, or $0.36 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 $389 million, or $0.77 per share (diluted), on an after-tax basis.(1) Cash flow from operating activities in the third quarter of 2013 was approximately $1.779 billion, and discretionary cash flow totaled $2.020 billion.(2)
THIRD-QUARTER 2013 HIGHLIGHTS
| |
| • | Announced $2.64 billion transaction for the sale of a 10-percent working interest in Mozambique’s Offshore Area 1 |
| |
| • | Achieved record U.S. onshore sales volumes of approximately 590,000 barrels of oil equivalent (BOE) per day |
| |
| • | Delivered 30,000-BOE-per-day growth in the Wattenberg horizontal program, more than doubling year-over-year sales volumes |
| |
| • | Reached project milestones with the installation of the Lucius spar in the Gulf of Mexico and the initiation of oil production from the second El Merk train in Algeria |
| |
| • | Increased activity in the Delaware Basin Wolfcamp play in West Texas |
“We continue to demonstrate our commitment to value acceleration and portfolio management,” said Al Walker, Anadarko Chairman, President and CEO. “During the third quarter, we announced the $2.64 billion monetization of a portion of our working interest in Mozambique, and more recently, announced a strategic acreage exchange in the Wattenberg field that is expected to enhance our operating efficiencies and concentrate our core acreage position near our operated infrastructure. In addition, we expanded our ownership position in the emerging Shenandoah Basin of the deepwater Gulf of Mexico by more than doubling our working interest in the Coronado discovery. We also ramped up Wolfcamp activity in West Texas, which continued to deliver high liquids yields and strong initial production rates.”
OPERATIONS REPORT
For details on Anadarko’s operations and exploration program, please refer to the comprehensive report on third-quarter 2013 activity. The report is available at www.anadarko.com.
OPERATIONS SUMMARY
During the third quarter, Anadarko increased U.S. onshore sales volumes by approximately 61,000 BOE per day over the third quarter of 2012, which includes an approximate 16-percent increase in liquids volumes. The Wattenberg horizontal program, where Anadarko more than doubled sales volumes over the third quarter of 2012, was a significant contributor to this growth. The company also achieved substantial growth in the Eagleford Shale in South Texas and the liquids-rich East Texas horizontal development.
Anadarko also increased activity in the Wolfcamp play in the Delaware Basin of West Texas during the quarter, currently running six operated rigs, compared to none in the third quarter of 2012. Wolfcamp results have been very encouraging with six wells now on production. Each well has demonstrated initial production rates of between 1,000 and 1,600 BOE per day of gross processed production with oil comprising more than 70 percent of the product mix.
MEGA-PROJECT SUMMARY
Anadarko installed the 80,000-barrels-of-oil-per-day (BOPD) Lucius spar on location in the deepwater Gulf of Mexico in August. The company initiated well-completion activities at Lucius during the quarter, and the project remains on schedule, with first oil production expected during the second half of 2014. Leveraging a design-one, build-two strategy, Anadarko progressed construction on the hull of the 80,000-BOPD Heidelberg spar, which is now nearly 50-percent complete. Heidelberg remains on schedule for initial oil production anticipated in 2016.
In Algeria, Anadarko and its partners achieved initial oil production from the second El Merk train and continued to advance the third facility, which is on schedule to commence production during the fourth quarter of 2013.
EXPLORATION SUMMARY
Anadarko drilled two successful appraisal wells in Mozambique during the third quarter. The Golfinho-5 and Golfinho-6 wells encountered approximately 330 net feet and approximately 240 net feet of natural
gas pay, respectively. Both wells appear to be in static communication with the rest of the Golfinho field. The Golfinho appraisal program is expected to be completed this year.
In the Gulf of Mexico, Anadarko enhanced its working interest in the Shenandoah Basin by increasing its stake in the Coronado discovery from 15 to 35 percent. Anadarko will assume operatorship of Coronado after the next appraisal well is drilled.
CONFERENCE CALL TOMORROW AT 8 A.M. CST, 9 A.M. EST
Anadarko will host a conference call on Tuesday, Nov. 5, 2013, at 8 a.m. Central Standard Time (9 a.m. Eastern Standard Time) to discuss third-quarter results, current operations and the company’s outlook for the remainder of 2013. The dial-in number is 855.812.0464 in the United States, or 970.300.2271 internationally. The confirmation number is 75022312. 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 2012, the company had approximately 2.56 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 consummate the transaction described in this news release, achieve its production targets, successfully manage its capital expenditures, timely complete and commercially operate the projects and drilling prospects identified in this news release, and achieve production and budget expectations on its mega projects. See “Risk Factors” in the company’s 2012 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 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
Jeremy Smith, jeremy.smith@anadarko.com, 832.636.1544
Bill Tedesco, william.tedesco@anadarko.com, 832.636.3375
Anadarko Petroleum Corporation
Certain Items Affecting Comparability
|
| | | | | | | | | | | | | |
| | | | Quarter Ended September 30, 2013 |
| | | | Before | | After | | Per Share |
| millions except per-share amounts | | | Tax | | Tax | | (diluted) |
| Unrealized gains (losses) on derivatives, net* | | | $ | (36 | ) | | $ | (21 | ) | | $ | (0.04 | ) |
| Gains (losses) on divestitures, net | | | 8 |
| | 5 |
| | 0.01 |
|
| Impairments | | | (593 | ) | | (376 | ) | | (0.74 | ) |
| Third-party well and platform decommissioning obligation | | | 10 |
| | 6 |
| | 0.01 |
|
| Deepwater Horizon settlement and related costs | | | (5 | ) | | (3 | ) | | (0.01 | ) |
| | | | $ | (616 | ) | | $ | (389 | ) | | $ | (0.77 | ) |
| |
| * | For the quarter ended September 30, 2013, before-tax unrealized gains (losses) on derivatives, net includes $(120) million related to commodity derivatives, $74 million related to interest-rate and other derivatives, and $10 million related to gathering, processing, and marketing sales. |
|
| | | | | | | | | | | | | |
| | | | Quarter Ended September 30, 2012 |
| | | | Before | | After | | Per Share |
| millions except per-share amounts | | | Tax | | Tax | | (diluted) |
Unrealized gains (losses) on derivatives, net* | | | $ | (456 | ) | | $ | (290 | ) | | $ | (0.58 | ) |
| Gains (losses) on divestitures, net | | | 6 |
| | 3 |
| | 0.01 |
|
| Impairments, including unproved properties | | | (5 | ) | | (4 | ) | | (0.01 | ) |
| Algeria exceptional profits tax settlement | | | (7 | ) | | (7 | ) | | (0.01 | ) |
| Deepwater Horizon settlement and related costs | | | (4 | ) | | (3 | ) | | (0.01 | ) |
| | | | $ | (466 | ) | | $ | (301 | ) | | $ | (0.60 | ) |
| |
| * | For the quarter ended September 30, 2012, before-tax unrealized gains (losses) on derivatives, net includes $(437) million related to commodity derivatives, $(14) million related to interest-rate and other derivatives, and $(5) 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 | | Nine Months Ended |
| | September 30, | | September 30, |
| millions | 2013 | | 2012 | | 2013 | | 2012 |
| Net cash provided by operating activities | $ | 1,779 |
| | $ | 2,229 |
| | $ | 6,784 |
| | $ | 6,119 |
|
| Add back | | | | | | | |
| Deepwater Horizon settlement and related costs | 3 |
| | 3 |
| | 9 |
| | (10 | ) |
| Algeria exceptional profits tax settlement | (32 | ) | | (501 | ) | | (730 | ) | | (614 | ) |
| Change in accounts receivable | 11 |
| | (58 | ) | | (246 | ) | | (409 | ) |
| Change in accounts payable and accrued expenses | 248 |
| | — |
| | 116 |
| | 486 |
|
| Change in other items—net | 11 |
| | 121 |
| | 51 |
| | (27 | ) |
| Discretionary cash flow from operations | $ | 2,020 |
| | $ | 1,794 |
| | $ | 5,984 |
| | $ | 5,545 |
|
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
|
| | | | | | | | | | | | | | | |
| | Quarter Ended | | Nine Months Ended |
| | September 30, | | September 30, |
| millions | 2013 | | 2012 | | 2013 | | 2012 |
| Discretionary cash flow from operations | $ | 2,020 |
| | $ | 1,794 |
| | $ | 5,984 |
| | $ | 5,545 |
|
| Less capital expenditures* | 2,298 |
| | 1,779 |
| | 5,911 |
| | 5,378 |
|
| Free cash flow | $ | (278 | ) | | $ | 15 |
| | $ | 73 |
| | $ | 167 |
|
| Collection of Algeria exceptional profits tax receivable | 32 |
| | 501 |
| | 730 |
| | 614 |
|
| Adjusted free cash flow | $ | (246 | ) | | $ | 516 |
| | $ | 803 |
| | $ | 781 |
|
| |
| * | Includes Western Gas Partners, LP (WES) capital expenditures of $185 million for the quarter ended September 30, 2013, $139 million for the quarter ended September 30, 2012, $622 million for the nine months ended September 30, 2013, and $360 million for the nine months ended September 30, 2012. |
|
| | | | | | | | | | | | | | | |
| | Quarter Ended | | Quarter Ended |
| | September 30, 2013 | | September 30, 2012 |
| | After | | Per Share | | After | | Per Share |
| millions except per-share amounts | Tax | | (diluted) | | Tax | | (diluted) |
| Net income (loss) attributable to common stockholders | $ | 182 |
| | $ | 0.36 |
| | $ | 121 |
| | $ | 0.24 |
|
| Certain items affecting comparability | (389 | ) | | (0.77 | ) | | (301 | ) | | (0.60 | ) |
| Adjusted net income (loss) | $ | 571 |
| | $ | 1.13 |
| | $ | 422 |
| | $ | 0.84 |
|
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.
|
| | | | | | | | | |
| | | | | | | September 30, |
| millions | | | | | | 2013 |
| Total debt | | | | | | | $ | 13,647 |
|
| Less cash and cash equivalents | | | | | | | 3,939 |
|
| Net debt | | | | | | | $ | 9,708 |
|
| | | | | | | | |
| Net debt | | | | | | | $ | 9,708 |
|
| Stockholders’ equity | | | | | | | 22,342 |
|
| Adjusted capitalization | | | | | | | $ | 32,050 |
|
|
| | | | | | | | |
| Net debt to adjusted capitalization ratio | | | | | | | 30 | % |
Anadarko Petroleum Corporation
(Unaudited)
|
| | | | | | | | | | | | | | | |
| | Quarter Ended | | Nine Months Ended |
| Summary Financial Information | September 30, | | September 30, |
| millions except per-share amounts | 2013 | | 2012 | | 2013 | | 2012 |
| Consolidated Statements of Income | | | | | | | |
| Revenues and Other | | | | | | | |
| Natural-gas sales | $ | 805 |
| | $ | 613 |
| | $ | 2,547 |
| | $ | 1,682 |
|
| Oil and condensate sales | 2,389 |
| | 2,163 |
| | 6,761 |
| | 6,629 |
|
| Natural-gas liquids sales | 325 |
| | 289 |
| | 889 |
| | 913 |
|
| Gathering, processing, and marketing sales | 270 |
| | 218 |
| | 750 |
| | 671 |
|
| Gains (losses) on divestitures and other, net | 64 |
| | 49 |
| | 296 |
| | 106 |
|
| Total | 3,853 |
| | 3,332 |
| | 11,243 |
| | 10,001 |
|
| Costs and Expenses | | | | | | | |
| Oil and gas operating | 277 |
| | 241 |
| | 769 |
| | 732 |
|
| Oil and gas transportation and other | 255 |
| | 247 |
| | 763 |
| | 710 |
|
| Exploration | 272 |
| | 297 |
| | 714 |
| | 1,662 |
|
| Gathering, processing, and marketing | 217 |
| | 185 |
| | 638 |
| | 552 |
|
| General and administrative | 255 |
| | 285 |
| | 787 |
| | 816 |
|
| Depreciation, depletion, and amortization | 996 |
| | 979 |
| | 2,958 |
| | 2,936 |
|
| Other taxes | 294 |
| | 267 |
| | 819 |
| | 970 |
|
| Impairments | 593 |
| | 4 |
| | 632 |
| | 166 |
|
| Algeria exceptional profits tax settlement | — |
| | 7 |
| | 33 |
| | (1,797 | ) |
| Deepwater Horizon settlement and related costs | 5 |
| | 4 |
| | 12 |
| | 15 |
|
| Total | 3,164 |
| | 2,516 |
| | 8,125 |
| | 6,762 |
|
| Operating Income (Loss) | 689 |
| | 816 |
| | 3,118 |
| | 3,239 |
|
| Other (Income) Expense | | | | | | | |
| Interest expense | 177 |
| | 185 |
| | 513 |
| | 561 |
|
| (Gains) losses on derivatives, net | 72 |
| | 251 |
| | (393 | ) | | (77 | ) |
| Other (income) expense, net | (23 | ) | | (10 | ) | | 69 |
| | (264 | ) |
| Total | 226 |
| | 426 |
| | 189 |
| | 220 |
|
| Income (Loss) Before Income Taxes | 463 |
| | 390 |
| | 2,929 |
| | 3,019 |
|
| Income Tax Expense (Benefit) | 240 |
| | 248 |
| | 1,263 |
| | 764 |
|
| Net Income (Loss) | 223 |
| | 142 |
| | 1,666 |
| | 2,255 |
|
| Net Income Attributable to Noncontrolling Interests | 41 |
| | 21 |
| | 95 |
| | 67 |
|
| Net Income (Loss) Attributable to Common Stockholders | $ | 182 |
| | $ | 121 |
| | $ | 1,571 |
| | $ | 2,188 |
|
| Per Common Share | | | | | | | |
| Net income (loss) attributable to common stockholders—basic | $ | 0.36 |
| | $ | 0.24 |
| | $ | 3.11 |
| | $ | 4.35 |
|
| Net income (loss) attributable to common stockholders—diluted | $ | 0.36 |
| | $ | 0.24 |
| | $ | 3.10 |
| | $ | 4.34 |
|
| Average Number of Common Shares Outstanding—Basic | 503 |
| | 500 |
| | 502 |
| | 499 |
|
| Average Number of Common Shares Outstanding—Diluted | 505 |
| | 502 |
| | 504 |
| | 501 |
|
| | | | | | | | |
| Exploration Expense | | | | | | | |
| Dry hole expense | $ | 77 |
| | $ | 142 |
| | $ | 301 |
| | $ | 346 |
|
| Impairments of unproved properties | 83 |
| | 60 |
| | 122 |
| | 1,043 |
|
| Geological and geophysical expense | 51 |
| | 40 |
| | 111 |
| | 89 |
|
| Exploration overhead and other | 61 |
| | 55 |
| | 180 |
| | 184 |
|
| Total | $ | 272 |
| | $ | 297 |
| | $ | 714 |
| | $ | 1,662 |
|
Anadarko Petroleum Corporation
(Unaudited)
|
| | | | | | | | | | | | | | | |
| | Quarter Ended | | Nine Months Ended |
| Summary Financial Information | September 30, | | September 30, |
| millions | 2013 | | 2012 | | 2013 | | 2012 |
| Cash Flows from Operating Activities | | | | | | | |
| Net income (loss) | $ | 223 |
| | $ | 142 |
| | $ | 1,666 |
| | $ | 2,255 |
|
| Depreciation, depletion, and amortization | 996 |
| | 979 |
| | 2,958 |
| | 2,936 |
|
| Deferred income taxes | (28 | ) | | (48 | ) | | 535 |
| | 95 |
|
| Dry hole expense and impairments of unproved properties | 160 |
| | 202 |
| | 423 |
| | 1,389 |
|
| Impairments | 593 |
| | 4 |
| | 632 |
| | 166 |
|
| (Gains) losses on divestitures, net | (8 | ) | | (6 | ) | | (165 | ) | | 23 |
|
| Unrealized (gains) losses on derivatives, net | 36 |
| | 456 |
| | (359 | ) | | 539 |
|
| Deepwater Horizon settlement and related costs | 5 |
| | 4 |
| | 12 |
| | 15 |
|
| Algeria exceptional profits tax settlement | — |
| | 7 |
| | 33 |
| | (1,797 | ) |
| Tronox-related contingent loss | — |
| | — |
| | — |
| | (250 | ) |
| Certain other nonoperating items | (10 | ) | | — |
| | 75 |
| | — |
|
| Other | 53 |
| | 54 |
| | 174 |
| | 174 |
|
| Discretionary Cash Flow from Operations | 2,020 |
| | 1,794 |
| | 5,984 |
| | 5,545 |
|
| Deepwater Horizon settlement and related costs | (3 | ) | | (3 | ) | | (9 | ) | | 10 |
|
| Algeria exceptional profits tax settlement | 32 |
| | 501 |
| | 730 |
| | 614 |
|
| (Increase) decrease in accounts receivable | (11 | ) | | 58 |
| | 246 |
| | 409 |
|
| Increase (decrease) in accounts payable and accrued expenses | (248 | ) | | — |
| | (116 | ) | | (486 | ) |
| Other items—net | (11 | ) | | (121 | ) | | (51 | ) | | 27 |
|
| Net Cash Provided by Operating Activities | $ | 1,779 |
| | $ | 2,229 |
| | $ | 6,784 |
| | $ | 6,119 |
|
| | | | | | | | |
| Capital Expenditures | $ | 2,298 |
| | $ | 1,779 |
| | $ | 5,911 |
| | $ | 5,378 |
|
|
| | | | | | | | | | | |
| | | | | | September 30, | | December 31, |
| millions | | | | | 2013 | | 2012 |
| Condensed Balance Sheets | | | | | | | |
| Cash and cash equivalents | | | | | $ | 3,939 |
| | $ | 2,471 |
|
| Accounts receivable, net of allowance | | | | | 2,465 |
| | 2,747 |
|
| Algeria exceptional profits tax settlement | | | | | — |
| | 730 |
|
| Other current assets | | | | | 736 |
| | 847 |
|
| Net properties and equipment | | | | | 40,485 |
| | 38,398 |
|
| Other assets | | | | | 2,006 |
| | 1,716 |
|
| Goodwill and other intangible assets | | | | | 5,663 |
| | 5,680 |
|
| Total Assets | | | | | $ | 55,294 |
| | $ | 52,589 |
|
| Current asset retirement obligations | | | | | $ | 311 |
| | $ | 298 |
|
| Other current liabilities | | | | | 4,427 |
| | 3,696 |
|
| Long-term debt | | | | | 13,647 |
| | 13,269 |
|
| Deferred income taxes | | | | | 9,372 |
| | 8,759 |
|
| Other long-term liabilities | | | | | 3,636 |
| | 4,685 |
|
| Stockholders’ equity | | | | | 22,342 |
| | 20,629 |
|
| Noncontrolling interests | | | | | 1,559 |
| | 1,253 |
|
| Total Liabilities and Equity | | | | | $ | 55,294 |
| | $ | 52,589 |
|
| Capitalization | | | | | | | |
| Total debt | | | | | $ | 13,647 |
| | $ | 13,269 |
|
| Stockholders’ equity | | | | | 22,342 |
| | 20,629 |
|
| Total | | | | | $ | 35,989 |
| | $ | 33,898 |
|
|
| | | | | | | | | |
| Capitalization Ratios | | | | | | | |
| Total debt | | | | | 38 | % | | 39 | % |
| Stockholders’ equity | | | | | 62 | % | | 61 | % |
Anadarko Petroleum Corporation
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Sales Volumes and Prices | | | | | | | | | | | | | | | | | | |
| | Average Daily Volumes | | Sales Volumes | | Average Sales Price |
| | | | Crude Oil & | | | | | | | Crude Oil & | | | | | | Crude Oil & | | |
| | Natural Gas | | Condensate | | NGLs | | | Natural Gas | | Condensate | | NGLs | | Natural Gas | | Condensate | | NGLs |
| | MMcf/d | | MBbls/d | | MBbls/d | | | Bcf | | MMBbls | | MMBbls | | Per Mcf | | Per Bbl | | Per Bbl |
| Quarter Ended September 30, 2013 | | | | | | | | | | | | | | | | | | |
| United States | 2,629 |
| | 152 |
| | 92 |
| | | 242 |
| | 14 |
| | 9 |
| | $ | 3.33 |
| | $ | 103.15 |
| | $ | 38.49 |
|
| Algeria | — |
| | 62 |
| | — |
| | | — |
| | 5 |
| | — |
| | — |
| | 110.95 |
| | — |
|
| Other International | — |
| | 31 |
| | — |
| | | — |
| | 3 |
| | — |
| | — |
| | 110.54 |
| | — |
|
| Total | 2,629 |
| | 245 |
| | 92 |
| | | 242 |
| | 22 |
| | 9 |
| | $ | 3.33 |
| | $ | 106.05 |
| | $ | 38.49 |
|
| | | | | | | | | | | | | | | | | | | |
| Quarter Ended September 30, 2012 | | | | | | | | | | | | | | | | | | |
| United States | 2,499 |
| | 143 |
| | 88 |
| | | 231 |
| | 13 |
| | 8 |
| | $ | 2.67 |
| | $ | 94.19 |
| | $ | 35.93 |
|
| Algeria | — |
| | 61 |
| | — |
| | | — |
| | 6 |
| | — |
| | — |
| | 109.70 |
| | — |
|
| Other International | — |
| | 30 |
| | — |
| | | — |
| | 2 |
| | — |
| | — |
| | 107.42 |
| | — |
|
| Total | 2,499 |
| | 234 |
| | 88 |
| | | 231 |
| | 21 |
| | 8 |
| | $ | 2.67 |
| | $ | 99.93 |
| | $ | 35.93 |
|
| | | | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, 2013 | | | | | | | | | | | | | | | | | |
| United States | 2,655 |
| | 155 |
| | 88 |
| | | 725 |
| | 42 |
| | 24 |
| | $ | 3.51 |
| | $ | 98.48 |
| | $ | 37.07 |
|
| Algeria | — |
| | 53 |
| | — |
| | | — |
| | 14 |
| | — |
| | — |
| | 109.20 |
| | — |
|
| Other International | — |
| | 34 |
| | — |
| | | — |
| | 10 |
| | — |
| | — |
| | 108.53 |
| | — |
|
| Total | 2,655 |
| | 242 |
| | 88 |
| | | 725 |
| | 66 |
| | 24 |
| | $ | 3.51 |
| | $ | 102.23 |
| | $ | 37.07 |
|
| | | | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, 2012 | | | | | | | | | | | | | | | | | | |
| United States | 2,487 |
| | 146 |
| | 81 |
| | | 681 |
| | 40 |
| | 22 |
| | $ | 2.47 |
| | $ | 99.26 |
| | $ | 40.96 |
|
| Algeria | — |
| | 57 |
| | — |
| | | — |
| | 16 |
| | — |
| | — |
| | 110.46 |
| | — |
|
| Other International | — |
| | 30 |
| | — |
| | | — |
| | 8 |
| | — |
| | — |
| | 114.21 |
| | — |
|
| Total | 2,487 |
| | 233 |
| | 81 |
| | | 681 |
| | 64 |
| | 22 |
| | $ | 2.47 |
| | $ | 103.90 |
| | $ | 40.96 |
|
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | Average Daily Volumes MBOE/d | | Sales Volumes MMBOE | | | | | | | | | | |
| Quarter Ended September 30, 2013 | 775 | | 71 | | | | | | | | | | |
| Quarter Ended September 30, 2012 | 739 | | 68 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, 2013 | 773 | | 211 | | | | | | | | | | |
| Nine Months Ended September 30, 2012 | 729 | | 200 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Sales Revenue and Commodity Derivatives | | | | | | | | | | | | | | | | | |
| | Sales | | | Commodity Derivatives Gain (Loss) |
| | | | Crude Oil & | | | | | Natural Gas | | Crude Oil & Condensate | | NGLs |
| millions | Natural Gas | | Condensate | | NGLs | | | Realized | | Unrealized | | Realized | | Unrealized | | Realized | | Unrealized |
| Quarter Ended September 30, 2013 | | | | | | | | | | | | | | | | | | |
| United States | $ | 805 |
| | $ | 1,446 |
| | $ | 325 |
| | | $ | 40 |
| | $ | 6 |
| | $ | (63 | ) | | $ | (119 | ) | | $ | 2 |
| | $ | (7 | ) |
| Algeria | — |
| | 629 |
| | — |
| | | — |
| | — |
| | (5 | ) | | — |
| | — |
| | — |
|
| Other International | — |
| | 314 |
| | — |
| | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Total | $ | 805 |
| | $ | 2,389 |
| | $ | 325 |
| | | $ | 40 |
| | $ | 6 |
| | $ | (68 | ) | | $ | (119 | ) | | $ | 2 |
| | $ | (7 | ) |
| | | | | | | | | | | | | | | | | | | |
| Quarter Ended September 30, 2012 | | | | | | | | | | | | | | | | | | |
| United States | $ | 613 |
| | $ | 1,246 |
| | $ | 289 |
| | | $ | 170 |
| | $ | (262 | ) | | $ | 21 |
| | $ | (164 | ) | | $ | 3 |
| | $ | (11 | ) |
| Algeria | — |
| | 617 |
| | — |
| | | — |
| | — |
| | 6 |
| | — |
| | — |
| | — |
|
| Other International | — |
| | 300 |
| | — |
| | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Total | $ | 613 |
| | $ | 2,163 |
| | $ | 289 |
| | | $ | 170 |
| | $ | (262 | ) | | $ | 27 |
| | $ | (164 | ) | | $ | 3 |
| | $ | (11 | ) |
| | | | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, 2013 | | | | | | | | | | | | | | | | | |
| United States | $ | 2,547 |
| | $ | 4,175 |
| | $ | 889 |
| | | $ | 91 |
| | $ | (5 | ) | | $ | (61 | ) | | $ | (69 | ) | | $ | 7 |
| | $ | (7 | ) |
| Algeria | — |
| | 1,566 |
| | — |
| | | — |
| | — |
| | 9 |
| | — |
| | — |
| | — |
|
| Other International | — |
| | 1,020 |
| | — |
| | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Total | $ | 2,547 |
| | $ | 6,761 |
| | $ | 889 |
| | | $ | 91 |
| | $ | (5 | ) | | $ | (52 | ) | | $ | (69 | ) | | $ | 7 |
| | $ | (7 | ) |
| | | | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, 2012 | | | | | | | | | | | | | | | | | | |
| United States | $ | 1,682 |
| | $ | 3,981 |
| | $ | 913 |
| | | $ | 564 |
| | $ | (464 | ) | | $ | 36 |
| | $ | 77 |
| | $ | 6 |
| | $ | 18 |
|
| Algeria | — |
| | 1,713 |
| | — |
| | | — |
| | — |
| | (6 | ) | | — |
| | — |
| | — |
|
| Other International | — |
| | 935 |
| | — |
| | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
| Total | $ | 1,682 |
| | $ | 6,629 |
| | $ | 913 |
| | | $ | 564 |
| | $ | (464 | ) | | $ | 30 |
| | $ | 77 |
| | $ | 6 |
| | $ | 18 |
|
|
| | | | | | | | | | | | | | |
| Anadarko Petroleum Corporation |
| Financial and Operating External Guidance |
| As of November 4, 2013 |
| | | | | |
| | | 4th Qtr | | Total Year |
| | | Guidance | | Guidance |
| | | | | | | | | |
| | | Units | | Units |
| | | | | | | | | |
| Total Sales (MMBOE) | | 70 |
| — |
| 73 |
| | 281 |
| — |
| 284 |
|
| | | | | | | | | |
| Crude Oil (MBbl/d) | | 256 |
| — |
| 263 |
| | 245 |
| — |
| 248 |
|
| | | | | | | | | |
| United States | | 161 |
| — |
| 165 |
| | 156 |
| — |
| 158 |
|
| Algeria | | 57 |
| — |
| 59 |
| | 54 |
| — |
| 55 |
|
| Other International | | 38 |
| — |
| 39 |
| | 35 |
| — |
| 36 |
|
| | | | | | | | | |
| Natural Gas (MMcf/d) | | | | | | | | |
| | | | | | | | | |
| United States | | 2,550 |
| — |
| 2,600 |
| | 2,625 |
| — |
| 2,640 |
|
| | | | | | | | | |
| Natural Gas Liquids (MBbl/d) | | | | | | | | |
| | | | | | | | | |
| United States | | 90 |
| — |
| 95 |
| | 88 |
| — |
| 90 |
|
| | | | | | | | | |
| | | | | | | | | |
| | | $ / Unit | | $ / Unit |
| Price Differentials vs NYMEX (w/o hedges) | | | | | | | | |
| | | | | | | | | |
| Crude Oil ($/Bbl) | | (1.00 | ) | — |
| 1.00 |
| | 2.75 |
| — |
| 3.25 |
|
| | | | | | | | | |
| United States | | (6.00 | ) | — |
| (2.00 | ) | | (1.00 | ) | — |
| 1.00 |
|
| Algeria | | 6.00 |
| — |
| 8.00 |
| | 8.00 |
| — |
| 10.00 |
|
| Other International | | 5.00 |
| — |
| 7.00 |
| | 7.00 |
| — |
| 9.00 |
|
| | | | | | | | | |
| Natural Gas ($/Mcf) | | | | | | | | |
| | | | | | | | | |
| United States | | (0.15 | ) | — |
| (0.25 | ) | | (0.15 | ) | — |
| (0.20 | ) |
| | | | | | | | | |
|
| | | | | | | | | | | | | | |
| Anadarko Petroleum Corporation |
| Financial and Operating External Guidance |
| As of November 4, 2013 |
| | | | | |
| | | 4th Qtr | | Total Year |
| | | Guidance | | Guidance * |
| | | | | | | | | |
| | | $ MM | | $ MM |
| Other Revenues | | | | | | | | |
| Marketing and Gathering Margin | | 40 |
| — |
| 50 |
| | 140 |
| — |
| 150 |
|
| Minerals and Other | | 30 |
| ��� |
| 40 |
| | 175 |
| — |
| 185 |
|
| | | | | | | | | |
| | | | | | | | | |
| | | $ / BOE | | $ / BOE |
| Costs and Expenses | | | | | | | | |
| Oil & Gas Direct Operating | | 4.10 |
| — |
| 4.30 |
| | 3.75 |
| — |
| 3.85 |
|
| Oil & Gas Transportation/Other | | 3.45 |
| — |
| 3.65 |
| | 3.55 |
| — |
| 3.65 |
|
| Depreciation, Depletion and Amortization | | 14.10 |
| — |
| 14.30 |
| | 13.95 |
| — |
| 14.05 |
|
| Production Taxes (% of Product Revenue) | | 8.0 | % | — |
| 9.0 | % | | 8.0 | % | — |
| 9.0 | % |
| | | | | | | | | |
| | | $ MM | | $ MM |
| | | | | | | | | |
| General and Administrative | | 275 |
| — |
| 325 |
| | 1,050 |
| — |
| 1,100 |
|
| Exploration Expense | | | | | | | | |
| Non-Cash | | 275 |
| — |
| 325 |
| | 700 |
| — |
| 750 |
|
| Cash | | 175 |
| — |
| 225 |
| | 450 |
| — |
| 500 |
|
| Interest Expense (net) | | 175 |
| — |
| 180 |
| | 685 |
| — |
| 690 |
|
| Other (Income)/Expense | | — |
| — |
| 20 |
| | 180 |
| — |
| 200 |
|
| | | | | | | | | |
| Tax Rate | | | | | | | | |
| Algeria (All current) | | 45 | % | — |
| 50 | % | | 40 | % | — |
| 45 | % |
| Rest of Company (30% Current for 4Q and FY) | | 50 | % | — |
| 60 | % | | 45 | % | — |
| 55 | % |
| | | | | | | | | |
| | | | | | | | | |
| Avg. Shares Outstanding (MM) | | | | | | | | |
| Basic | | 503 |
| — |
| 505 |
| | 502 |
| — |
| 503 |
|
| Diluted | | 507 |
| — |
| 508 |
| | 505 |
| — |
| 506 |
|
| | | | | | | | | |
| | | | | | | | | |
| Capital Investment (Excluding Western Gas Partners, LP) | $ MM | | $ MM |
| | | | | | | | | |
| APC Capital Expenditures | | 2,100 |
| — |
| 2,300 |
| | 7,400 |
| — |
| 7,600 |
|
| | | | | | | | | |
| * Excludes items affecting comparability | | | | | | | | |
|
| | | | | | | | | |
| Anadarko Petroleum Corporation |
| Commodity Hedge Positions (Excluding Natural Gas Basis) |
| As of November 4, 2013 |
| | | | | | | | | | |
| | | | | | Weighted Average Price per barrel |
| | | | Volume (MBbls/d) | | Floor Sold | | Floor Purchased | | Ceiling Sold |
| Crude Oil | | | | | | | | |
| Three-Way Collars | | | | | | | |
| 2013 | | | | | | | | | |
| | Brent | | 26 | $ | 85.00 | $ | 105.00 | $ | 125.15 |
| | | | | | | | | | |
| Fixed Price - Financial | | | | | | | |
| 2013 | | | | | | | | | |
| | Brent | (Jan-Dec) | 61 | $ | 108.72 | | | | |
| | WTI | (Jan-Dec) | 47 | $ | 94.43 | | | | |
| | 108 | $ | 102.50 | | | | |
| | | | | | | | | | |
| | WTI | (Jul-Dec) | 14 | $ | 104.36 | | | | |
| | | | | | | | | | |
| | WTI | (Aug-Dec) | 37 | $ | 101.11 | | | | |
| | | | | | | | | | |
| | Brent | (Sep-Dec) | 8 | $ | 110.61 | | | | |
| | | | | | | | | | |
| 2014 | | | | | | | |
| | WTI | | 51 | $ | 96.41 | | | | |
| | | | | | |
| | | | Volume | | Weighted Average Price per MMBtu |
| | | | (thousand | | | | | | |
| | | | MMBtu/d) | | Floor Sold | | Floor Purchased | | Ceiling Sold |
| Natural Gas | | | | | | | | |
| Three-Way Collars | | | | | | | |
| 2014 | | | 600 | $ | 2.75 | $ | 3.75 | $ | 5.01 |
| | | | | | | | | | |
| Fixed Price - Financial | | | | | | | |
| 2013 | | | 1,185 | $ | 4.00 | | | | |
| 2014 | | | 600 | $ | 4.26 | | | | |
|
| | | | | | | |
| | | | | | | | |
| Interest-Rate Derivatives |
| As of November 4, 2013 |
| | | | | | | | |
| | Instrument | Notional Amt. | Start Date | Maturity | Rate Paid | Rate Received | |
| | Swap | $750 Million | June 2014 | June 2024 | 6.00% | 3M LIBOR | |
| | Swap | $1,100 Million | June 2014 | June 2044 | 5.57% | 3M LIBOR | |
| | Swap | $50 Million | Sept. 2016 | Sept. 2026 | 5.91% | 3M LIBOR | |
| | Swap | $750 Million | Sept. 2016 | Sept. 2046 | 5.86% | 3M LIBOR | |
| | | | | | | | |
