Exhibit 99.1
Anadarko Announces 2007 Fourth-Quarter and Full-Year Results
HOUSTON--(BUSINESS WIRE)--Anadarko Petroleum Corporation (NYSE:APC) today announced fourth-quarter and full-year 2007 financial and operating results.
“In 2007, we transformed Anadarko’s portfolio and positioned the company for consistent and predictable performance in 2008 and beyond,” said Anadarko Chairman, President and CEO Jim Hackett. “Throughout the year, our retained properties demonstrated the strong and efficient performance we expected and delivered solid production volume growth. As a result, we were able to increase production guidance on three separate occasions in 2007, by a total of about 6% from the original projection, while improving the company’s cost structure.
“I am excited about the portfolio we have assembled and proud of the numerous accomplishments of our employees during the past year. Examples of these accomplishments include: the Independence Hub project, which was delivered on time and on budget, and ramped up production as projected; the substantial discoveries offshore Ghana and in the deepwater Gulf of Mexico; and the completion of significant infrastructure enhancements in the Rocky Mountain region,” added Hackett.
FOURTH-QUARTER 2007 RESULTS
Fourth-quarter net income available to common stockholders was $264 million, or $.56 per share (diluted), on revenues of $3.06 billion. Income from continuing operations was $276 million, or $.59 per share (diluted). On an after-tax basis, these results include:
- Gains on asset divestitures of $230 million, or $.49 per share
- State income tax expense attributable to divestitures, net of federal tax benefit, of approximately $51 million, or $.11 per share
- Net unrealized losses on commodity derivatives of $322 million, or $.69 per share
- Net realized gains on commodity derivatives of $40 million, or $.09 per share
Cash flow from continuing operations in the fourth quarter of 2007 was $943 million and discretionary cash flow from continuing operations totaled $1.59 billion.(1)
In the 2006 fourth quarter, net income available to common stockholders was $1.92 billion, or $4.16 per share (diluted), which included a gain on the divestiture of the company’s Canadian subsidiary in discontinued operations. Results from continuing operations in the fourth quarter of 2006 were a loss of $32 million, or $.08 per share (diluted).
Fourth-quarter 2007 sales volumes of natural gas, crude oil and natural gas liquids totaled 53 million BOE, or 576,000 BOE per day, a 13% increase over third-quarter 2007 volumes. Fourth-quarter 2007 natural gas sales volumes averaged 2.01 billion cubic feet per day, at an average price of $5.46 per thousand cubic feet. Oil sales volumes in the fourth quarter averaged 203,000 barrels per day, at an average price of $66.58 per barrel. Natural gas liquids sales volumes averaged 37,000 barrels per day, at an average price of $61.65 per barrel.
FULL-YEAR 2007 RESULTS
Anadarko reported full-year 2007 net income available to common stockholders of $3.78 billion, or $8.08 per share (diluted), on revenues of $15.89 billion. Income from continuing operations totaled $3.77 billion, or $8.05 per share (diluted). Net income available to common stockholders in 2006 was $4.75 billion, or $10.24 per share diluted, on revenues of $10.23 billion, while income from continuing operations totaled $2.47 billion, or $5.33 per share (diluted).
Cash flow from operating activities of continuing operations totaled $2.77 billion in 2007. Discretionary cash flow from continuing operations totaled $2.85 billion.(1)
Sales volumes of natural gas, crude oil and natural gas liquids from continuing operations for 2007 totaled 211 million BOE.
PROVED RESERVES
Anadarko estimates its worldwide proved reserves at year-end 2007 totaled 2.43 billion BOE. In 2007, excluding the effect of divestitures, the company added approximately 250 million BOE of proved reserves and incurred costs in exploration and development activities of approximately $3.84 billion. Reserve additions were primarily driven by low-risk development activities and infill drilling in the Greater Natural Buttes area, Wattenberg field and Powder River Basin, as well as the previously announced Peregrino development offshore Brazil.
Anadarko’s year-end 2007 proved reserves were balanced between natural gas (58%, or 8.50 trillion cubic feet) and liquids (42%, or 1.01 billion barrels), which include crude oil, condensate and natural gas liquids.
Conference Call Tuesday, Feb. 5, at 9 a.m. CST, 10 a.m. EST
Anadarko will host a conference call on Tuesday, Feb. 5, at 9 a.m. Central Standard Time (10 a.m. Eastern Standard Time) to discuss fourth-quarter and full-year results and the company’s outlook for 2008. The dial-in number is 888.680.0878 in the United States or 617.213.4855 internationally. The confirmation number is 63362749. For complete instructions on how to participate in the conference call, or to listen to the live audio webcast and slide presentation, please visit www.anadarko.com. A replay of the call will also be available on the Web site for approximately 30 days following the conference call.
ANADARKO OPERATIONS REPORT
For more details on Anadarko’s operations, please refer to the comprehensive report on fourth-quarter activity. The report will be available at www.anadarko.com on the Investor Relations page.
FINANCIAL DATA
Eleven pages of summary financial data follow, including current hedge positions, financial guidance and supplemental production guidance for the retained-asset portfolio. Amounts are preliminary and unaudited. All prior-year information has been re-cast to reflect the successful efforts method of accounting. Additionally, in the fourth quarter of 2007, management determined that a revision to previously reported gains on asset divestitures was necessary, primarily to correct the cost basis of divested assets. Management concluded that the adjustment was not material to reported results for the prior periods, but has corrected its financial records. Accordingly, previously reported net income available to common stockholders for the nine months ended Sept. 30, 2007, has been reduced by $112 million ($0.23 per diluted share) to $3,514 million ($7.52 per diluted share).
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. For more information about Anadarko, please visit www.anadarko.com.
(1) See the accompanying table for a reconciliation of GAAP to non-GAAP financial measures and a statement indicating why management believes the non-GAAP measures are useful information for investors.
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 finalization of year-end 2007 reserves. See “Risk Factors” in the company’s 2006 Annual Report on Form 10-K and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.
| Anadarko Petroleum Corporation |
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| Reconciliation of GAAP to Non-GAAP Measures |
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| Below is a reconciliation of cash provided by operating activities (GAAP) to discretionary cash flow (non-GAAP) as required under Regulation G of the Securities Exchange Act of 1934. The company uses discretionary cash flow to demonstrate the company's ability to internally fund capital expenditures and to service or incur additional debt. It is useful in comparisons of oil and gas exploration and production companies because it excludes fluctuations in assets and liabilities. |
| Quarter Ended | | Year Ended |
| December 31 | | December 31 |
| millions | 2007 | | 2006 | | 2007 | | 2006 |
| Cash Flow | | | | | | | |
| Net cash provided by (used in) operating activities - continuing operations | $ | 943 | | | $ | 1,450 | | | $ | 2,766 | | | $ | 4,671 | |
| Add back: | | | | | | | |
| Change in accounts receivable | | 973 | | | | 623 | | | | (379 | ) | | | 398 | |
| Change in accounts payable and accrued expenses | | (77 | ) | | | (890 | ) | | | 1,498 | | | | (647 | ) |
| Change in other items - net | | (252 | ) | | | 217 | | | | (1,036 | ) | | | 124 | |
| Discretionary Cash Flow from Continuing Operations | $ | 1,587 | | | $ | 1,400 | | | $ | 2,849 | | | $ | 4,546 | |
| Anadarko Petroleum Corporation |
| | | | | | | |
| Quarter Ended | | Year Ended |
| Summary Financial Information | December 31 | | December 31 |
| millions except per share amounts | 2007 | | 2006 | | 2007 | | 2006 |
| Revenues and Other | | | | | | | |
| Gas sales | $ | 1,011 | | | $ | 1,269 | | | $ | 4,119 | | | $ | 4,186 | |
| Oil and condensate sales | | 1,249 | | | | 1,301 | | | | 4,807 | | | | 4,618 | |
| Natural gas liquids sales | | 208 | | | | 165 | | | | 719 | | | | 594 | |
| Gathering, processing and marketing sales | | 292 | | | | 415 | | | | 1,487 | | | | 718 | |
| Gains on divestitures, net | | 260 | | | | - | | | | 4,660 | | | | 26 | |
| Other | | 42 | | | | 33 | | | | 100 | | | | 88 | |
| Total | | 3,062 | | | | 3,183 | | | | 15,892 | | | | 10,230 | |
| Costs and Expenses | | | | | | | |
| Oil and gas operating | | 233 | | | | 321 | | | | 1,101 | | | | 822 | |
| Oil and gas transportation and other | | 111 | | | | 89 | | | | 453 | | | | 341 | |
| Exploration | | 291 | | | | 404 | | | | 905 | | | | 737 | |
| Gathering, processing and marketing | | 185 | | | | 325 | | | | 1,025 | | | | 553 | |
| General and administrative | | 255 | | | | 306 | | | | 936 | | | | 768 | |
| Depreciation, depletion and amortization | | 750 | | | | 791 | | | | 2,840 | | | | 1,752 | |
| Other taxes | | 365 | | | | 229 | | | | 1,234 | | | | 549 | |
| Impairments | | 11 | | | | 308 | | | | 51 | | | | 327 | |
| Total | | 2,201 | | | | 2,773 | | | | 8,545 | | | | 5,849 | |
| Operating Income | | 861 | | | | 410 | | | | 7,347 | | | | 4,381 | |
| Interest Expense and Other (Income) Expense | | | | | | | |
| Interest expense | | 231 | | | | 338 | | | | 1,092 | | | | 650 | |
| Other (income) expense | | (14 | ) | | | 15 | | | | (74 | ) | | | (6 | ) |
| Total | | 217 | | | | 353 | | | | 1,018 | | | | 644 | |
| Income from Continuing Operations Before Income Taxes | | 644 | | | | 57 | | | | 6,329 | | | | 3,737 | |
| Income Tax Expense | | 368 | | | | 89 | | | | 2,559 | | | | 1,263 | |
| Income (Loss) from Continuing Operations | $ | 276 | | | $ | (32 | ) | | $ | 3,770 | | | $ | 2,474 | |
| Income (Loss) from Discontinued Operations, net of taxes | | (11 | ) | | | 1,955 | | | | 11 | | | | 2,275 | |
| Net Income | $ | 265 | | | $ | 1,923 | | | $ | 3,781 | | | $ | 4,749 | |
| Preferred Stock Dividends | | 1 | | | | 1 | | | | 3 | | | | 3 | |
| Net Income Available to Common Stockholders | $ | 264 | | | $ | 1,922 | | | $ | 3,778 | | | $ | 4,746 | |
| Per Common Share | | | | | | | |
| Income (loss) from continuing operations - basic | $ | 0.59 | | | $ | (0.08 | ) | | $ | 8.09 | | | $ | 5.37 | |
| Income (loss) from continuing operations - diluted | $ | 0.59 | | | $ | (0.08 | ) | | $ | 8.05 | | | $ | 5.33 | |
| Income (loss) from discontinued operations, net of taxes - basic | $ | (0.02 | ) | | $ | 4.24 | | | $ | 0.02 | | | $ | 4.94 | |
| Income (loss) from discontinued operations, net of taxes - diluted | $ | (0.02 | ) | | $ | 4.24 | | | $ | 0.02 | | | $ | 4.91 | |
| Net income available to common stockholders - basic | $ | 0.56 | | | $ | 4.16 | | | $ | 8.12 | | | $ | 10.31 | |
| Net income available to common stockholders - diluted | $ | 0.56 | | | $ | 4.16 | | | $ | 8.08 | | | $ | 10.24 | |
| Average Number of Common Shares Outstanding - Basic | | 467 | | | | 462 | | | | 465 | | | | 460 | |
| Average Number of Common Shares Outstanding - Diluted | | 470 | | | | 462 | | | | 468 | | | | 464 | |
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| Exploration Expense | | | | | | | |
| Dry hole expense | $ | 99 | | | $ | 147 | | | $ | 321 | | | $ | 289 | |
| Impairments of unproved properties | | 79 | | | | 112 | | | | 311 | | | | 171 | |
| Geological and geophysical expense | | 67 | | | | 92 | | | | 158 | | | | 176 | |
| Exploration overhead and other | | 46 | | | | 53 | | | | 115 | | | | 101 | |
| Total | $ | 291 | | | $ | 404 | | | $ | 905 | | | $ | 737 | |
| Anadarko Petroleum Corporation |
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| Summary Financial Information | Quarter Ended
December 31 | | Year Ended
December 31 |
| millions | 2007 | | 2006 | | 2007 | | 2006 |
| Cash Flow from Operating Activities | | | | | | | |
| Net income | $ | 265 | | | $ | 1,923 | | | $ | 3,781 | | | $ | 4,749 | |
| Less income (loss) from discontinued operations, net of taxes | | (11 | ) | | | 1,955 | | | | 11 | | | | 2,275 | |
| Depreciation, depletion and amortization | | 750 | | | | 791 | | | | 2,840 | | | | 1,752 | |
| Deferred income taxes | | 56 | | | | (27 | ) | | | (1,004 | ) | | | 328 | |
| Dry hole expense and impairments of unproved properties | | 178 | | | | 259 | | | | 632 | | | | 460 | |
| Impairments | | 11 | | | | 308 | | | | 51 | | | | 327 | |
| (Gains) on divestitures, net | | (260 | ) | | | - | | | | (4,660 | ) | | | (26 | ) |
| Unrealized (gains) losses on derivatives | | 504 | | | | 46 | | | | 1,048 | | | | (837 | ) |
| Other noncash items | | 72 | | | | 55 | | | | 172 | | | | 68 | |
| Discretionary Cash Flow from Continuing Operations | | 1,587 | | | | 1,400 | | | | 2,849 | | | | 4,546 | |
| (Increase) decrease in accounts receivable | | (973 | ) | | | (623 | ) | | | 379 | | | | (398 | ) |
| Increase (decrease) in accounts payable and accrued expenses | | 77 | | | | 890 | | | | (1,498 | ) | | | 647 | |
| Other items - net | | 252 | | | | (217 | ) | | | 1,036 | | | | (124 | ) |
| Cash provided by (used in) operating activities - continuing operations | | 943 | | | | 1,450 | | | | 2,766 | | | | 4,671 | |
| Cash provided by (used in) operating activities - discontinued operations | | (59 | ) | | | (595 | ) | | | 134 | | | | (178 | ) |
Net cash provided by (used in) operating activities* | $ | 884 | | | $ | 855 | | | $ | 2,900 | | | $ | 4,493 | |
*Cash flow from operating activities for the full year 2007 was reduced by $2.3 billion due to the impact of income taxes on divestitures. Cash flow from investing activities includes the proceeds from the divestitures and provides cash for payment of related taxes. |
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| Capital Expenditures | | | | | | | |
| Capital spending | $ | 978 | | | $ | 1,530 | | | $ | 3,868 | | | $ | 4,130 | |
| Capitalized interest | | 19 | | | | 34 | | | | 122 | | | | 82 | |
| Capital expenditures - continuing operations | | 997 | | | | 1,564 | | | | 3,990 | | | | 4,212 | |
| Capital expenditures - discontinued operations | | - | | | | 59 | | | | - | | | | 537 | |
| Total | $ | 997 | | | $ | 1,623 | | | $ | 3,990 | | | $ | 4,749 | |
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| | | | | December 31, | | December 31, |
| | | | | | 2007 | | 2006 |
| Condensed Balance Sheet | | | | | | | |
| Cash and cash equivalents | | | | | $ | 1,268 | | | $ | 491 | |
| Other current assets | | | | | | 3,248 | | | | 4,053 | |
| Current assets held for sale | | | | | | - | | | | 68 | |
| Net properties and equipment | | | | | | 37,451 | | | | 41,436 | |
| Other assets | | | | | | 1,030 | | | | 838 | |
| Goodwill and other intangible assets | | | | | | 5,166 | | | | 4,332 | |
| Long-term assets held for sale | | | | | | 318 | | | | 3,746 | |
| Total Assets | | | | | $ | 48,481 | | | $ | 54,964 | |
| Current debt | | | | | $ | 1,396 | | | $ | 11,471 | |
| Other current liabilities | | | | | | 3,861 | | | | 5,240 | |
| Current liabilities associated with assets held for sale | | | | | | - | | | | 47 | |
| Long-term debt | | | | | | 11,151 | | | | 11,520 | |
| Midstream subsidiary note to a related party | | | | | | 2,200 | | | | - | |
| Other long-term liabilities | | | | | | 13,503 | | | | 14,240 | |
| Other long-term liabilities associated with assets held for sale | | | | | | 6 | | | | 43 | |
| Stockholders' equity | | | | | | 16,364 | | | | 12,403 | |
| Total Liabilities and Stockholders' Equity | | | | | $ | 48,481 | | | $ | 54,964 | |
| Capitalization | | | | | | | |
| Total debt | | | | | $ | 14,747 | | | $ | 22,991 | |
| Stockholders' equity | | | | | | 16,364 | | | | 12,403 | |
| Total | | | | | $ | 31,111 | | | $ | 35,394 | |
| Capitalization Ratios | | | | | | | |
| Total debt | | | | | | 47 | % | | | 65 | % |
| Stockholders' equity | | | | | | 53 | % | | | 35 | % |
| Anadarko Petroleum Corporation |
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| Quarter Ended | | Year Ended |
| Sales Volumes and Prices | December 31 | | December 31 |
| | 2007 | | 2006 | | 2007 | | 2006 |
| Natural Gas | | | | | | | |
| United States | | | | | | | |
| Volumes, billion cubic feet | | 185 | | | | 205 | | | | 698 | | | | 558 | |
| Average daily volumes, million cubic feet per day | | 2,013 | | | | 2,226 | | | | 1,912 | | | | 1,529 | |
| Price per thousand cubic feet excluding derivatives | $ | 5.69 | | | $ | 5.55 | | | $ | 5.74 | | | $ | 6.14 | |
| Realized gain (loss) on derivatives | $ | 0.75 | | | $ | 0.84 | | | $ | 0.73 | | | $ | 0.33 | |
| Unrealized gain (loss) on derivatives | $ | (0.98 | ) | | $ | (0.19 | ) | | $ | (0.57 | ) | | $ | 1.03 | |
| Total gains (losses) on derivatives | $ | (0.23 | ) | | $ | 0.65 | | | $ | 0.16 | | | $ | 1.36 | |
Total price per thousand cubic feet | $ | 5.46 | | | $ | 6.20 | | | $ | 5.90 | | | $ | 7.50 | |
| Crude Oil and Condensate | | | | | | | |
| United States | | | | | | | |
| Volumes, million barrels | | 12 | | | | 13 | | | | 48 | | | | 39 | |
| Average daily volumes, thousand barrels per day | | 120 | | | | 152 | | | | 130 | | | | 108 | |
| Price per barrel excluding derivatives | $ | 84.79 | | | $ | 53.50 | | | $ | 66.64 | | | $ | 59.41 | |
| Realized gain (loss) on derivatives | $ | (6.85 | ) | | $ | 6.39 | | | $ | 1.35 | | | $ | 2.64 | |
| Unrealized gain (loss) on derivatives | $ | (19.13 | ) | | $ | (0.12 | ) | | $ | (10.75 | ) | | $ | 6.54 | |
| Total gains (losses) on derivatives | $ | (25.98 | ) | | $ | 6.27 | | | $ | (9.40 | ) | | $ | 9.18 | |
| Price per barrel | $ | 58.81 | | | $ | 59.77 | | | $ | 57.24 | | | $ | 68.59 | |
| Algeria | | | | | | | |
| Volumes, million barrels | | 6 | | | | 6 | | | | 24 | | | | 23 | |
| Average daily volumes, thousand barrels per day | | 67 | | | | 63 | | | | 65 | | | | 64 | |
| Price per barrel excluding derivatives | $ | 96.44 | | | $ | 59.91 | | | $ | 75.50 | | | $ | 65.55 | |
| Realized gain (loss) on derivatives | $ | - | | | $ | - | | | $ | - | | | $ | - | |
| Unrealized gain (loss) on derivatives | $ | (17.74 | ) | | $ | - | | | $ | (5.91 | ) | | $ | - | |
| Total gains (losses) on derivatives | $ | (17.74 | ) | | $ | - | | | $ | (5.91 | ) | | $ | - | |
| Price per barrel | $ | 78.70 | | | $ | 59.91 | | | $ | 69.59 | | | $ | 65.55 | |
| Other International | | | | | | | |
| Volumes, million barrels | | 1 | | | | 3 | | | | 7 | | | | 8 | |
| Average daily volumes, thousand barrels per day | | 16 | | | | 29 | | | | 20 | | | | 21 | |
| Price per barrel | $ | 74.44 | | | $ | 43.59 | | | $ | 59.91 | | | $ | 48.58 | |
| Total | | | | | | | |
| Volumes, million barrels | | 19 | | | | 22 | | | | 79 | | | | 70 | |
| Average daily volumes, thousand barrels per day | | 203 | | | | 244 | | | | 215 | | | | 193 | |
| Price per barrel excluding derivatives | $ | 87.81 | | | $ | 53.97 | | | $ | 68.68 | | | $ | 60.28 | |
| Realized gain (loss) on derivatives | $ | (4.06 | ) | | $ | 4.00 | | | $ | 0.82 | | | $ | 1.48 | |
| Unrealized gain (loss) on derivatives | $ | (17.17 | ) | | $ | (0.08 | ) | | $ | (8.31 | ) | | $ | 3.67 | |
| Total gains (losses) on derivatives | $ | (21.23 | ) | | $ | 3.92 | | | $ | (7.49 | ) | | $ | 5.15 | |
| Total price per barrel | $ | 66.58 | | | $ | 57.89 | | | $ | 61.19 | | | $ | 65.43 | |
| Natural Gas Liquids | | | | | | | |
| United States | | | | | | | |
| Volumes, million barrels | | 3 | | | | 5 | | | | 16 | | | | 15 | |
| Average daily volumes, thousand barrels per day | | 37 | | | | 51 | | | | 43 | | | | 42 | |
| Price per barrel excluding derivatives | $ | 61.52 | | | $ | 35.76 | | | $ | 45.87 | | | $ | 39.71 | |
| Realized gains (losses) on derivatives | $ | 0.13 | | | $ | - | | | $ | 0.03 | | | $ | (0.13 | ) |
| Total price per barrel | $ | 61.65 | | | $ | 35.76 | | | $ | 45.90 | | | $ | 39.58 | |
| Total Barrels of Oil Equivalent (BOE) - continuing operations | | | | | | | |
| Volumes, million BOE | | 53 | | | | 61 | | | | 211 | | | | 178 | |
| Average daily volumes, thousand BOE per day | | 576 | | | | 666 | | | | 577 | | | | 489 | |
| Total Barrels of Oil Equivalent (BOE) - discontinued operations | | | | | | | |
| Volumes, million BOE | | - | | | | 2 | | | | - | | | | 17 | |
| Average daily volumes, thousand BOE per day | | - | | | | 19 | | | | - | | | | 46 | |
| Total Barrels of Oil Equivalent (BOE) | | | | | | | |
| Volumes, million BOE | | 53 | | | | 63 | | | | 211 | | | | 195 | |
| Average daily volumes, thousand BOE per day | | 576 | | | | 685 | | | | 577 | | | | 535 | |
| Anadarko Petroleum Corporation |
| Oil and Gas Reserves |
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| | | | | Other | | |
| | U.S. | | Algeria | | Int'l | | Total |
| Total (MMBOE) | | | | | | | |
| Proved Reserves | | | | | | | |
| December 31, 2006 | 2,672 | | | 287 | | | 52 | | | 3,011 | |
| Revisions of prior estimates | 119 | | | 2 | | | - | | | 121 | |
| Extensions, discoveries and other additions | 85 | | | - | | | 54 | | | 139 | |
| Improved recovery | (9 | ) | | - | | | - | | | (9 | ) |
| Purchases in place | 1 | | | - | | | - | | | 1 | |
| Sales in place | (609 | ) | | - | | | (11 | ) | | (620 | ) |
| Production | (180 | ) | | (25 | ) | | (7 | ) | | (212 | ) |
| December 31, 2007 | 2,079 | | | 264 | | | 88 | | | 2,431 | |
| Proved Developed Reserves | | | | | | | |
| December 31, 2006 | 1,775 | | | 176 | | | 38 | | | 1,989 | |
| December 31, 2007 | 1,443 | | | 158 | | | 24 | | | 1,625 | |
| Natural Gas (Bcf) | | | | | | | |
| Proved Reserves | | | | | | | |
| December 31, 2006 | 10,486 | | | - | | | - | | | 10,486 | |
| Revisions of prior estimates | 460 | | | - | | | - | | | 460 | |
| Extensions, discoveries and other additions | 460 | | | - | | | - | | | 460 | |
| Improved recovery | 4 | | | - | | | - | | | 4 | |
| Purchases in place | 4 | | | - | | | - | | | 4 | |
| Sales in place | (2,212 | ) | | - | | | - | | | (2,212 | ) |
| Production | (698 | ) | | - | | | - | | | (698 | ) |
| December 31, 2007 | 8,504 | | | - | | | - | | | 8,504 | |
| Proved Developed Reserves | | | | | | | |
| December 31, 2006 | 7,618 | | | - | | | - | | | 7,618 | |
| December 31, 2007 | 6,308 | | | - | | | - | | | 6,308 | |
| Oil, Condensate and NGLs (MMBbls) | | | | | | | |
| Proved Reserves | | | | | | | |
| December 31, 2006 | 925 | | | 287 | | | 52 | | | 1,264 | |
| Revisions of prior estimates | 42 | | | 2 | | | - | | | 44 | |
| Extensions, discoveries and other additions | 8 | | | - | | | 54 | | | 62 | |
| Improved recovery | (9 | ) | | - | | | - | | | (9 | ) |
| Sales in place | (240 | ) | | - | | | (11 | ) | | (251 | ) |
| Production | (64 | ) | | (25 | ) | | (7 | ) | | (96 | ) |
| December 31, 2007 | 662 | | | 264 | | | 88 | | | 1,014 | |
| Proved Developed Reserves | | | | | | | |
| December 31, 2006 | 505 | | | 176 | | | 38 | | | 719 | |
| December 31, 2007 | 392 | | | 158 | | | 24 | | | 574 | |
Anadarko Petroleum Corporation
Costs Incurred |
| |
| |
| millions | 2007 |
| Costs Incurred | |
| United States | |
| Property acquisition | |
| Unproved | $ | 108 | |
| Proved | | 9 | |
| Exploration | | 575 | |
| Development | | 2,623 | |
| Total | | 3,315 | |
| Algeria | |
| Exploration | | 23 | |
| Development | | 46 | |
| Total | | 69 | |
| Other International | |
| Property acquisition | |
| Unproved | | 83 | |
| Exploration | | 236 | |
| Development | | 136 | |
| Total | | 455 | |
| Total Costs Incurred | |
| Property acquisition | |
| Unproved | | 191 | |
| Proved | | 9 | |
| Exploration | | 834 | |
| Development | | 2,805 | |
| Total Costs Incurred | $ | 3,839 | |
| |
| | |
| Reconciliation to Capital Expenditures | |
| Total Costs Incurred | $ | 3,839 | |
| Geological and geophysical expense | | (158 | ) |
| Exploration overhead | | (79 | ) |
Delay rentals | | (24 | ) |
| Asset retirement costs | | (194 | ) |
| Amortization of acquired drilling rig contract intangibles | | (86 | ) |
| Property exchanges | | (83 | ) |
| Total Oil & Gas Capital Expenditures | $ | 3,215 | |
| Other Capital Expenditures | | 775 | |
| Total Capital Expenditures | $ | 3,990 | |
Anadarko Petroleum Corporation
Financial and Operating Guidance
Continuing Operations
As of February 4, 2008 |
| | | | | | | | |
| | 1st Quarter | | Full Year |
| | 2008 Forecast | | 2008 Forecast |
| | Units | | Units |
| | | | | | | | |
| Total Sales (MMBOE) | | | 50 | | - | 52 | | | | 205 | | - | 210 | |
| | | | | | | | |
| Crude Oil (MBbl/d): | | | 175 | | - | 185 | | | | 170 | | - | 180 | |
| | | | | | | | |
| United States | | | 105 | | - | 115 | | | | 95 | | - | 105 | |
| Algeria | | | 55 | | - | 60 | | | | 55 | | - | 60 | |
| Other International | | | 15 | | - | 17 | | | | 14 | | - | 15 | |
| | | | | | | | |
| Natural Gas (MMcf/d): | | | | | | | | |
| | | | | | | | |
| United States | | | 2,075 | | - | 2,100 | | | | 2,150 | | - | 2,175 | |
| | | | | | | | |
| Natural Gas Liquids (MBbl/d): | | | | | | | | |
| | | | | | | | |
| United States | | | 35 | | - | 38 | | | | 35 | | - | 38 | |
| | | | | | | | | |
| | $/ Unit | | $/ Unit |
| Price Differentials vs NYMEX (w/o hedges) | | | | | | | | |
| | | | | | | | |
| Crude Oil ($/Bbl): | | | (4.00 | ) | - | (6.00 | ) | | | (4.00 | ) | - | (6.00 | ) |
| | | | | | | | |
| United States | | | (4.00 | ) | - | (6.00 | ) | | | (4.00 | ) | - | (6.00 | ) |
| Algeria | | | 0.00 | | - | (2.00 | ) | | | (1.00 | ) | - | (3.00 | ) |
| Other International | | | (10.00 | ) | - | (12.00 | ) | | | (10.00 | ) | - | (12.00 | ) |
| | | | | | | | |
| Natural Gas ($/Mcf): | | | | | | | | |
| | | | | | | | |
| United States | | | (0.75 | ) | - | (1.25 | ) | | | (0.75 | ) | - | (1.25 | ) |
Anadarko Petroleum Corporation
Financial and Operating Guidance
Continuing Operations
As of February 4, 2008 |
| | | | | | | | |
| | 1st Quarter | | Full Year |
| | 2008 Forecast | | 2008 Forecast |
| | | | | | | | |
| | $MM | | $MM |
| Other Revenues: | | | | | | | | |
| | | | | | | | |
| Gathering, Processing & Marketing Margins | | | 90 | | - | 100 | | | | 360 | | - | 400 | |
| Minerals and Other | | | 20 | | - | 30 | | | | 90 | | - | 110 | |
| | | | | | | | | |
| Costs and Expenses: | | | | | | | | |
| | $ / Boe | | $ / Boe |
| | | | | | | | |
| Oil & Gas Lease Operating | | | 4.75 | | - | 5.00 | | | | 5.00 | | - | 5.50 | |
| Oil & Gas Transportation | | | 2.00 | | - | 2.20 | | | | 2.00 | | - | 2.20 | |
| Depreciation, Depletion and Amortization | | | 14.25 | | - | 14.50 | | | | 14.25 | | - | 14.50 | |
| Production Taxes (% of Revenue) | | | 11.5 | % | - | 12.5 | % | | | 11.5 | % | - | 12.5 | % |
| | | | | | | | |
| | $MM | | $MM |
| | | | | | | | |
| General and Administrative | | | 185 | | - | 200 | | | | 750 | | - | 800 | |
| | | | | | | | |
| Exploration Expense | | | | | | | | |
| Non-Cash | | | 150 | | - | 170 | | | | 850 | | - | 900 | |
| Cash | | | 50 | | - | 75 | | | | 250 | | - | 270 | |
| Interest Expense | | | 220 | | - | 230 | | | | 850 | | - | 875 | |
| Other (Income) Expense | | | (10 | ) | - | 10 | | | | (20 | ) | - | 20 | |
| | | | | | | | |
| Effective Tax Rate | | | 45 | % | - | 50 | % | | | 45 | % | - | 50 | % |
| | | | | | | | | |
| | | | | | | | |
| Avg. Shares Outstanding (MM) | | | | | | | | |
| | | | | | | | |
| Basic | | | 468 | | - | 469 | | | | 469 | | - | 471 | |
| Diluted | | | 470 | | - | 472 | | | | 472 | | - | 474 | |
| | | | | | | | | |
| | | | | | | | |
| | $MM | | $MM |
| | | | | | | | |
| Capital Investment | | | 1,050 | | - | 1,150 | | | | 4,250 | | - | 4,450 | |
| | | | | | | | |
| Capital Projects | | | 1,037 | | - | 1,134 | | | | 4,280 | | - | 4,300 | |
| Capitalized Interest | | | 13 | | - | 16 | | | | 100 | | - | 120 | |
Anadarko Petroleum Corporation
Commodity Hedge Positions (Excluding Natural Gas Basis)
As of February 4, 2008 |
| | | | | | | | | | | | |
| | Fixed | | 2- Way Collars | | 3- Way Collars |
| | | | | | | | | | | | | |
| | Volume | NYMEX Price | | Volume | Floor | Ceiling | | Volume | Sold Floor | Purchased Floor | Ceiling |
| Crude Oil | | Bbl/day | $/Bbl | | Bbl/day | $/Bbl | $/Bbl | | Bbl/day | $/Bbl | $/Bbl | $/Bbl |
| | | | | | | | | | | | |
| United States | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Total Year 2008 | | | | | | | | | 67,000 | $ | 43.21 | $ | 58.21 | $ | 94.75 |
| | | | | | | | | | | | |
| Total Year 2009 | | | | | | | | | 28,000 | $ | 40.36 | $ | 55.36 | $ | 87.34 |
| | | | | | | | | | | | |
| Total Year 2010 | | | | | | | | | 8,000 | $ | 35.00 | $ | 50.00 | $ | 86.49 |
| | | | | | | | | | | | |
| Total Year 2011 | | | | | | | | | 3,000 | $ | 35.00 | $ | 50.00 | $ | 86.00 |
| | | | | | | | | | | | |
| Total Year 2012 | | | | | | | | | 1,500 | $ | 35.00 | $ | 50.00 | $ | 92.50 |
| | | | | | | | | | | | |
| Algeria | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Total Year 2008 | | | | | | | | | 19,000 | $ | 33.51 | $ | 48.51 | $ | 86.73 |
| | | | | | | | | | | | |
| Total Year 2009 | | | | | | | | | 20,000 | $ | 33.51 | $ | 48.51 | $ | 86.62 |
| | | | | | | | | | | | |
| Total Year 2010 | | | | | | | | | 10,000 | $ | 33.53 | $ | 48.53 | $ | 86.98 |
| | | | | | | | | | | | |
| Total Crude Oil, All Locations | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Total Year 2008 | | | | | | | | | 86,000 | $ | 41.07 | $ | 56.07 | $ | 92.98 |
| | | | | | | | | | | | |
| Total Year 2009 | | | | | | | | | 48,000 | $ | 37.51 | $ | 52.51 | $ | 87.04 |
| | | | | | | | | | | | |
| Total Year 2010 | | | | | | | | | 18,000 | $ | 34.18 | $ | 49.19 | $ | 86.76 |
| | | | | | | | | | | | |
| Total Year 2011 | | | | | | | | | 3,000 | $ | 35.00 | $ | 50.00 | $ | 86.00 |
| | | | | | | | | | | | |
| Total Year 2012 | | | | | | | | | 1,500 | $ | 35.00 | $ | 50.00 | $ | 92.50 |
| | | | | | | | | | | | | |
| | Volume | NYMEX Price | | Volume | Floor | Ceiling | | Volume | Sold Floor | Purchased Floor | Ceiling |
| Natural Gas | | MMMBtu/d | $/MMBtu | | MMMBtu/d | $/MMBtu | $/MMBtu | | MMMBtu/d | $/MMBtu | $/MMBtu | $/MMBtu |
| | | | | | | | | | | | |
| United States | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Total Year 2008 | | | | | | | | | 1,400 | $ | 5.32 | $ | 7.50 | $ | 10.97 |
| | | | | | | | | | | | |
| Total Year 2009 | | | | | | | | | 495 | $ | 5.45 | $ | 7.50 | $ | 11.26 |
Anadarko Petroleum Corporation
Natural Gas Basis Hedge Positions
As of February 4, 2008 |
| | | |
| | Daily Volume (MMMBtu's) by Pricing Point |
| Pricing Point | 2008 | 2009 | 2010 |
| | | |
| Gulf Coast | | 560 | | | 315 | | | 0 | |
| Mid Continent | | 365 | | | 330 | | | 35 | |
| Rocky Mountains | | 460 | | | 555 | | | 310 | |
| West Texas | | 34 | | | 0 | | | 0 | |
| Total Daily Volume Hedged | | 1,419 | | | 1,200 | | | 345 | |
| | | |
| | Average Price Differential to Henry Hub |
| Pricing Point | 2008 | 2009 | 2010 |
| | | |
| Gulf Coast | $ | (0.235 | ) | $ | (0.147 | ) | $ | - | |
| Mid Continent | $ | (1.007 | ) | $ | (0.850 | ) | $ | (0.611 | ) |
| Rocky Mountains | $ | (1.463 | ) | $ | (1.250 | ) | $ | (1.129 | ) |
| West Texas | $ | (0.920 | ) | $ | - | | $ | - | |
| Average Price Differential Hedged | $ | (0.848 | ) | $ | (0.850 | ) | $ | (1.077 | ) |
| Anadarko Petroleum Corporation |
| Retained Properties Sales |
| Recent Performance and 2007 Guidance |
| As of February 4, 2008 |
| | | | | | | | | | | | |
| | Q4 2006 | | Q1 2007 | | Q2 2007 | | Q3 2007 | | Q4 2007 | | FY 2007 |
| | Actuals | | Actuals | | Actuals | | Actuals | | Actuals | | Actuals |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| TOTAL SALES (MMBOE) | | 48 | .5 | | 49 | .2 | | 46 | .8 | | 46 | .5 | | 53 | .1 | | 195 | .7 |
| Natural Gas (MMcf/d) | | 1,791 | .5 | | 1,794 | .3 | | 1,639 | .1 | | 1,646 | .9 | | 2,013 | .0 | | 1,774 | .2 |
| Crude Oil (MBbl/d) | | 203 | .4 | | 207 | .9 | | 202 | .0 | | 192 | .0 | | 203 | .8 | | 201 | .5 |
| Natural Gas Liquids (MBbl/d) | | 34 | .2 | | 39 | .2 | | 39 | .0 | | 39 | .4 | | 37 | .9 | | 38 | .9 |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| ROCKIES | | | | | | | | | | | | |
| Natural Gas (MMcf/d) | | 917 | .2 | | 934 | .4 | | 840 | .4 | | 849 | .3 | | 909 | .4 | | 883 | .2 |
| Crude Oil (MBbl/d) | | 23 | .1 | | 23 | .4 | | 23 | .8 | | 24 | .0 | | 26 | .7 | | 24 | .5 |
| Natural Gas Liquids (MBbl/d) | | 16 | .9 | | 16 | .2 | | 15 | .2 | | 15 | .8 | | 14 | .7 | | 15 | .5 |
| Total Sales (MMBOE) | | 17 | .4 | | 17 | .6 | | 16 | .3 | | 16 | .7 | | 17 | .7 | | 68 | .3 |
| | | | | | | | | | | | |
| SOUTHERN | | | | | | | | | | | | |
| Natural Gas (MMcf/d) | | 639 | .5 | | 645 | .3 | | 617 | .3 | | 565 | .6 | | 589 | .4 | | 604 | .5 |
| Crude Oil (MBbl/d) | | 12 | .2 | | 10 | .9 | | 10 | .2 | | 8 | .6 | | 10 | .2 | | 10 | .0 |
| Natural Gas Liquids (MBbl/d) | | 10 | .3 | | 14 | .3 | | 14 | .4 | | 13 | .8 | | 13 | .9 | | 14 | .2 |
| Total Sales (MMBOE) | | 11 | .6 | | 11 | .9 | | 11 | .6 | | 10 | .7 | | 11 | .3 | | 45 | .6 |
| | | | | | | | | | | | |
| GULF OF MEXICO | | | | | | | | | | | | |
| Natural Gas (MMcf/d) | | 239 | .7 | | 223 | .2 | | 200 | .5 | | 240 | .0 | | 522 | .1 | | 297 | .3 |
| Crude Oil (MBbl/d) | | 63 | .0 | | 61 | .3 | | 67 | .2 | | 62 | .8 | | 62 | .1 | | 63 | .4 |
| Natural Gas Liquids (MBbl/d) | | 4 | .2 | | 4 | .0 | | 4 | .6 | | 5 | .0 | | 6 | .2 | | 5 | .0 |
| Total Sales (MMBOE) | | 9 | .6 | | 9 | .2 | | 9 | .6 | | 9 | .9 | | 14 | .3 | | 43 | .0 |
| | | | | | | | | | | | |
| INTERNATIONAL / FRONTIER | | | | | | | | | | | | |
| Natural Gas (MMcf/d) | | 0 | .4 | | 0 | .3 | | 0 | .3 | | 0 | .3 | | 0 | .3 | | 0 | .3 |
| Crude Oil (MBbl/d) | | 105 | .1 | | 112 | .4 | | 100 | .8 | | 96 | .6 | | 104 | .9 | | 103 | .6 |
| Natural Gas Liquids (MBbl/d) | | - | | | - | | | - | | | - | | | - | | | - | |
| Total Sales (MMBOE) | | 9 | .7 | | 10 | .1 | | 9 | .2 | | 8 | .9 | | 9 | .7 | | 37 | .8 |
CONTACT:
Anadarko Petroleum Corporation, Houston
MEDIA:
John Christiansen, 832-636-8736
john.christiansen@anadarko.com
or
Paula Beasley, 832-636-8765
paula.beasley@anadarko.com
or
INVESTORS:
John Colglazier, 832-636-2306
john.colglazier@anadarko.com
or
Chris Campbell, CFA, 832-636-8434
chris.campbell@anadarko.com
or
Kristin Stomberg, 832-636-1156
kristin.stomberg@anadarko.com
