Exhibit 99
Anadarko Announces Third-Quarter Results
Reaffirms Strong Liquidity Position,
Provides Update on Pre-Salt Discovery Offshore Brazil and
Successful Appraisal in the Gulf of Mexico
HOUSTON--(BUSINESS WIRE)--November 3, 2008--Anadarko Petroleum Corporation (NYSE:APC) today announced third-quarter 2008 net income available to common stockholders totaled $2.165 billion, or $4.62 per share (diluted). Income from continuing operations totaled $2.164 billion, or $4.62 per share (diluted). The net income results include certain items affecting comparability that are typically excluded by the investment community in published estimates. In total, these items increased net income by approximately $1.399 billion, or $3.00 per share (diluted), on an after-tax basis.(1) Cash flow from continuing operations in the third quarter of 2008 was $3.520 billion, and discretionary cash flow totaled $1.132 billion.(2)
OPERATIONAL HIGHLIGHTS
- Increased reported sales volumes 9 percent over third-quarter 2007 from retained properties
- Achieved production milestone of 600,000 barrels of oil equivalent (BOE) per day
- Set new daily production records in the Greater Natural Buttes and Powder River Basin
“As illustrated by the highlights above, our third-quarter performance was very strong,” Anadarko Chairman and CEO Jim Hackett said. “At one point during the quarter, we achieved a daily record for sales volumes of 600,000 BOE. Following major back-to-back hurricanes, our employees and contractors throughout our operating regions performed in an extraordinary fashion to safely overcome the impacts of the storms – enabling us to achieve a 9-percent increase in overall reported sales volumes over third-quarter 2007 and, for the seventh consecutive quarter, meet or exceed our volume guidance.”
At Independence Hub, the company’s largest producing platform in the Gulf of Mexico, production was restored within three days of Hurricane Ike. Anadarko also demonstrated notable growth in the Rockies with new daily production records in both the Greater Natural Buttes area of Utah, where sales volumes increased nearly 40 percent for the quarter compared to the previous year, and the Powder River Basin of Wyoming, where sales volumes for the quarter were up about 55 percent year-over-year.
Third-quarter 2008 sales volumes of natural gas, crude oil and natural gas liquids totaled 51 million BOE, or 552,000 BOE per day. Third-quarter 2008 natural gas sales volumes averaged 1.994 billion cubic feet per day. Oil sales volumes in the third quarter averaged 182,000 barrels per day, and natural gas liquids sales volumes averaged 38,000 barrels per day.
EXPLORATION HIGHLIGHTS
- Announced substantial pre-salt discovery offshore Brazil at the Wahoo prospect
- Encountered more than 700 feet of net pay in Tonga West appraisal well in Gulf of Mexico
- Continued U.S. onshore exploration program with encouraging results
Anadarko continues to build upon its successful international and deepwater Gulf of Mexico exploration and appraisal programs. During the third quarter, the company announced a substantial pre-salt discovery at the deepwater Wahoo prospect on block BM-C-30 in the Campos Basin offshore Brazil. Extensive logging, fluid and pressure sampling has now confirmed more than 200 feet of net pay consisting of high-quality, high-gravity crude oil in an upper zone, with additional hydrocarbon-bearing zones encountered deeper in the well. Casing is currently being run to total depth to prepare for drillstem testing in 2009 to further evaluate the multiple hydrocarbon-bearing zones. The partnership also is planning further exploration and appraisal drilling on the block in 2009. Anadarko, through a wholly owned subsidiary, operates the block with a 30-percent working interest.
“Since announcing the Wahoo pre-salt discovery in September, we have successfully reached total depth of approximately 20,000 feet, encountered an additional oil accumulation in the deeper objective and confirmed the quality of the previously announced reservoir,” Anadarko Sr. Vice President, Worldwide Exploration, Bob Daniels said. “We are very encouraged by this discovery and its similarities to the giant Jubarte field, and we look forward to working with the Brazilian government and our partners to further delineate the area’s potential.”
Anadarko plans to now move the Transocean Deepwater Millennium drillship to the Espírito Santo Basin to continue its pre-salt exploration program, which includes re-entering the Serpa prospect and drilling at least five additional pre-salt tests.
Anadarko and its partners also continue an active program offshore Ghana, where the partnership recently spud the Hyedua-2 appraisal well on the Deepwater Tano license. Prior to year end, the partnership also plans to spud the nearby Tweneboa prospect, which has similar size and seismic characteristics to the giant Jubilee field. The partners expect Jubilee to be sanctioned prior to year end.
In the Gulf of Mexico, Anadarko recently completed a successful appraisal well, located 3,000 feet to the south and up dip from the original Tonga West discovery well. The appraisal well encountered more than 700 feet of net pay in dipping formations. Anadarko is the operator with a 33.75-percent working interest.
“The Tonga West confirmation well encountered subsalt Miocene sands with much greater quality and thickness than we had anticipated,” Anadarko Sr. Vice President, Worldwide Operations, Chuck Meloy said. “This well is a tremendous success that affirms this world-class reservoir and solidifies our previous estimated resource range of 200 million to 400 million BOE. Anadarko expects to sanction the Caesar/Tonga complex this year, with first significant volumes as early as 2011.”
Anadarko’s U.S. onshore exploration programs in the Maverick Basin, and Haynesville and Marcellus Shale plays are ongoing with encouraging results. Additional details regarding Anadarko’s U.S. onshore exploration programs and other activities are available in the third-quarter 2008 Operations Report at www.anadarko.com.
FINANCIAL HIGHLIGHTS
- Completed $600 million worth of share repurchases
- Retired approximately $350 million of debt
- Held strong liquidity position with a cash balance of nearly $2 billion at quarter end
“We believe we have a strong capital structure and liquidity position,” Hackett said. “We closed the quarter with a cash balance of nearly $2 billion, after completing the repurchase of $600 million worth of shares and retiring approximately $350 million of debt. Our $1.3 billion revolving credit facility remains undrawn, and we anticipate closing the divestiture of Peregrino during the fourth quarter, with net cash proceeds in excess of $1 billion. We expect to deliver upon our commitment to achieve our debt-to-cap target of between 25 percent to 35 percent by year end.”
CONFERENCE CALL TOMORROW AT 9 A.M. CST, 10 A.M. EST
Anadarko will host a conference call on Tuesday, Nov. 4, at 9 a.m. Central Standard Time (10 a.m. Eastern Standard Time) to discuss third-quarter results and the company’s outlook for the remainder of 2008. The dial-in number is 888.680.0878 in the United States or 617.213.4855 internationally. The confirmation number is 79021387. 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 third-quarter 2008 activity. The report will be available at www.anadarko.com on the Investor Relations page.
FINANCIAL DATA
Nine pages of summary financial data follow, including current hedge positions, financial guidance and supplemental production guidance.
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 2007, Anadarko had 2.4 billion barrels of oil equivalent of proved reserves, making it one of the world’s largest independent oil and natural gas exploration and production companies. For more information about Anadarko, please visit www.anadarko.com.
(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 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 ability to successfully meet its production guidance, complete its announced asset divestitures, achieve debt-reduction goals and complete and commercially operate the drilling prospects identified in this news release. See “Risk Factors” in the company’s 2007 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.
Cautionary Note to U.S. Investors: The United States Securities and Exchange Commission (“SEC”) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Anadarko uses certain terms in this news release, such as “estimated resource range,” 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 December 31, 2007, 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. You can also obtain this form from the SEC by calling 1-800-SEC-0330.
| Anadarko Petroleum Corporation |
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| Certain Items Affecting Comparability |
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| | Quarter Ended September 30, 2008 |
| | Before | | After | | Per Share |
| millions | | Tax | | Tax | | (diluted) |
| Unrealized gains (losses) on derivatives, net | | $ | 2,368 | | | $ | 1,508 | | | $ | 3.22 | |
| Impairments | | | (56 | ) | | | (35 | ) | | | (0.07 | ) |
| Other adjustments | | | (119 | ) | | | (74 | ) | | | (0.15 | ) |
| | | $ | 2,193 | | | $ | 1,399 | | | $ | 3.00 | |
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| | Quarter Ended September 30, 2007 |
| | Before | | After | | Per Share |
| millions | | Tax | | Tax | | (diluted) |
| Unrealized gains (losses) on derivatives, net | | $ | (33 | ) | | $ | (21 | ) | | $ | (0.04 | ) |
| Gains (losses) on divestitures, net | | | 308 | | | | 196 | | | | 0.42 | |
| | | $ | 275 | | | $ | 175 | | | $ | 0.38 | |
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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 and free cash flow (non-GAAP) and net income from continuing operations (GAAP) to adjusted net income from continuing operations (non-GAAP) as required under Regulation G of the Securities Exchange Act of 1934. The company uses discretionary cash flow and free cash flow to demonstrate the company’s ability to internally fund capital expenditures and to service or incur additional debt. It is useful in comparisons of oil and gas exploration and production companies because it excludes fluctuations in assets and liabilities. The company uses adjusted net income from continuing operations to evaluate the company’s operational trends and performance. |
| | Quarter Ended | | Year to Date |
| | September 30 | | September 30 |
| millions | | 2008 | | 2007 | | 2008 | | 2007 |
| Cash Flow | | | | | | | | |
| Net cash provided by operating activities - continuing operations | | $ | 3,520 | | | $ | 940 | | | $ | 6,004 | | | $ | 1,823 | |
| Add back: | | | | | | | | |
| Change in accounts receivable | | | (988 | ) | | | (310 | ) | | | (340 | ) | | | (1,352 | ) |
| Change in accounts payable and accrued expenses | | | (1,371 | ) | | | 230 | | | | (548 | ) | | | 1,575 | |
| Change in other items - net | | | (29 | ) | | | (124 | ) | | | 197 | | | | (784 | ) |
Discretionary Cash Flow from Continuing Operations* | | $ | 1,132 | | | $ | 736 | | | $ | 5,313 | | | $ | 1,262 | |
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*Discretionary cash flow from continuing operations for the quarter and year to date September 30, 2008 was reduced by current tax expense of $1.1 billion and $1.7 billion, respectively. However, actual cash tax payments for the quarter and year to date September 30, 2008 were $337 million and $823 million, respectively. For the same periods of 2007, discretionary cash flow from continuing operations was reduced by current tax expense of $669 million and $3.2 billion, respectively. However, actual cash tax payments for the quarter and year to date September 30, 2007 were $530 million and $1.6 billion, respectively. |
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| | September 30, 2008 |
| | Quarter | | Year |
| millions | | Ended | | to Date |
| Discretionary cash flow from continuing operations | | $ | 1,132 | | | $ | 5,313 |
| Less: Capital expenditures | | | 1,181 | | | | 3,469 |
Free Cash Flow** | | $ | (49 | ) | | $ | 1,844 |
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**Free cash flow for the quarter and year to date September 30, 2008 was reduced by current tax expense of $1.1 billion and $1.7 billion, respectively. However, actual cash tax payments for the quarter and year to date September 30, 2008 were $337 million and $823 million, respectively. |
| | Quarter Ended | | Quarter Ended |
| | September 30, 2008 | | September 30, 2007 |
| millions except per share amounts | | After
Tax | | Per Share
(diluted) | | After
Tax | | Per Share
(diluted) |
| Net income from continuing operations, as reported | | $ | 2,164 | | $ | 4.62 | | $ | 493 | | $ | 1.05 |
| Less: Certain items affecting comparability | | | 1,399 | | | 3.00 | | | 175 | | | 0.38 |
| Adjusted net income from continuing operations | | $ | 765 | | $ | 1.62 | | $ | 318 | | $ | 0.67 |
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| Anadarko Petroleum Corporation |
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| | Quarter Ended | | Year to Date |
| Summary Financial Information | | September 30 | | September 30 |
| millions except per share amounts | | 2008 | | 2007 | | 2008 | | 2007 |
| Revenues and Other | | | | | | | | |
| Gas sales | | $ | 2,395 | | | $ | 871 | | | $ | 5,089 | | | $ | 3,108 | |
| Oil and condensate sales | | | 3,217 | | | | 1,262 | | | | 4,911 | | | | 3,558 | |
| Natural gas liquids sales | | | 244 | | | | 175 | | | | 703 | | | | 511 | |
| Gathering, processing and marketing sales | | | 353 | | | | 348 | | | | 940 | | | | 1,195 | |
| Gains (losses) on divestitures and other, net | | | (60 | ) | | | 339 | | | | 270 | | | | 4,458 | |
| Total | | | 6,149 | | | | 2,995 | | | | 11,913 | | | | 12,830 | |
| Costs and Expenses | | | | | | | | |
| Oil and gas operating | | | 274 | | | | 256 | | | | 778 | | | | 868 | |
| Oil and gas transportation and other | | | 140 | | | | 113 | | | | 400 | | | | 342 | |
| Exploration | | | 373 | | | | 253 | | | | 880 | | | | 614 | |
| Gathering, processing and marketing | | | 265 | | | | 217 | | | | 679 | | | | 840 | |
| General and administrative | | | 216 | | | | 171 | | | | 619 | | | | 681 | |
| Depreciation, depletion and amortization | | | 844 | | | | 655 | | | | 2,438 | | | | 2,090 | |
| Other taxes | | | 424 | | | | 269 | | | | 1,306 | | | | 869 | |
| Impairments | | | 56 | | | | - | | | | 67 | | | | 40 | |
| Total | | | 2,592 | | | | 1,934 | | | | 7,167 | | | | 6,344 | |
| Operating Income | | | 3,557 | | | | 1,061 | | | | 4,746 | | | | 6,486 | |
| Interest Expense, Other (Income) Expense and Minority Interests | | | | | | | | |
| Interest expense | | | 180 | | | | 222 | | | | 558 | | | | 861 | |
| Other (income) expense | | | 22 | | | | (8 | ) | | | (5 | ) | | | (60 | ) |
| Minority interests | | | 10 | | | | - | | | | 15 | | | | - | |
| Total | | | 212 | | | | 214 | | | | 568 | | | | 801 | |
| Income from Continuing Operations Before Income Taxes | | | 3,345 | | | | 847 | | | | 4,178 | | | | 5,685 | |
| Income Tax Expense | | | 1,181 | | | | 354 | | | | 1,761 | | | | 2,191 | |
| Income from Continuing Operations | | | 2,164 | | | | 493 | | | | 2,417 | | | | 3,494 | |
| Income (loss) from Discontinued Operations, net of taxes | | | 1 | | | | (12 | ) | | | 58 | | | | 22 | |
| Net Income | | | 2,165 | | | | 481 | | | | 2,475 | | | | 3,516 | |
| Preferred Stock Dividends | | | - | | | | 1 | | | | 1 | | | | 2 | |
| Net Income Available to Common Stockholders | | $ | 2,165 | | | $ | 480 | | | $ | 2,474 | | | $ | 3,514 | |
| Per Common Share | | | | | | | | |
| Income from continuing operations - basic | | $ | 4.65 | | | $ | 1.06 | | | $ | 5.17 | | | $ | 7.51 | |
| Income from continuing operations - diluted | | $ | 4.62 | | | $ | 1.05 | | | $ | 5.14 | | | $ | 7.48 | |
| Income (loss) from discontinued operations, net of taxes - basic | | $ | - | | | $ | (0.03 | ) | | $ | 0.13 | | | $ | 0.05 | |
| Income (loss) from discontinued operations, net of taxes - diluted | | $ | - | | | $ | (0.03 | ) | | $ | 0.12 | | | $ | 0.05 | |
| Net income available to common stockholders - basic | | $ | 4.65 | | | $ | 1.03 | | | $ | 5.29 | | | $ | 7.56 | |
| Net income available to common stockholders - diluted | | $ | 4.62 | | | $ | 1.03 | | | $ | 5.26 | | | $ | 7.53 | |
| Average Number of Common Shares Outstanding - Basic | | | 466 | | | | 466 | | | | 467 | | | | 465 | |
| Average Number of Common Shares Outstanding - Diluted | | | 468 | | | | 468 | | | | 470 | | | | 467 | |
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| Exploration Expense | | | | | | | | |
| Dry hole expense | | $ | 143 | | | $ | 111 | | | $ | 232 | | | $ | 222 | |
| Impairments of unproved properties | | | 162 | | | | 86 | | | | 405 | | | | 232 | |
| Geological and geophysical expense | | | 30 | | | | 27 | | | | 122 | | | | 91 | |
| Exploration overhead and other | | | 38 | | | | 29 | | | | 121 | | | | 69 | |
| Total | | $ | 373 | | | $ | 253 | | | $ | 880 | | | $ | 614 | |
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| Anadarko Petroleum Corporation |
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| Quarter Ended | Year to Date |
| Summary Financial Information | September 30 | September 30 |
| millions | 2008 | | 2007 | | 2008 | | 2007 |
| Cash Flow from Operating Activities | | | | | | | |
| Net income | $ | 2,165 | | | $ | 481 | | | $ | 2,475 | | | $ | 3,516 | |
| Less income from discontinued operations, net of taxes | | 1 | | | | (12 | ) | | | 58 | | | | 22 | |
| Depreciation, depletion and amortization | | 844 | | | | 655 | | | | 2,438 | | | | 2,090 | |
| Deferred income taxes | | 57 | | | | (315 | ) | | | 94 | | | | (1,060 | ) |
| Dry hole expense and impairments of unproved properties | | 305 | | | | 197 | | | | 637 | | | | 454 | |
| Minority interests | | 10 | | | | - | | | | 15 | | | | - | |
| Impairments | | 56 | | | | - | | | | 67 | | | | 40 | |
| (Gains) losses on divestitures, net | | (1 | ) | | | (308 | ) | | | (165 | ) | | | (4,400 | ) |
| Unrealized (gains) losses on derivatives | | (2,368 | ) | | | (13 | ) | | | (277 | ) | | | 544 | |
| Other noncash items | | 65 | | | | 27 | | | | 87 | | | | 100 | |
| Discretionary Cash Flow from Continuing Operations | | 1,132 | | | | 736 | | | | 5,313 | | | | 1,262 | |
| (Increase) decrease in accounts receivable | | 988 | | | | 310 | | | | 340 | | | | 1,352 | |
| Increase (decrease) in accounts payable and accrued expenses | | 1,371 | | | | (230 | ) | | | 548 | | | | (1,575 | ) |
| Other items - net | | 29 | | | | 124 | | | | (197 | ) | | | 784 | |
| Cash provided by (used in) operating activities - continuing operations | | 3,520 | | | | 940 | | | | 6,004 | | | | 1,823 | |
| Cash provided by (used in) operating activities - discontinued operations | | (4 | ) | | | 28 | | | | (4 | ) | | | 193 | |
Net cash provided by (used in) operating activities* | $ | 3,516 | | | $ | 968 | | | $ | 6,000 | | | $ | 2,016 | |
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| Capital Expenditures | $ | 1,181 | | | $ | 826 | | | $ | 3,469 | | | $ | 2,993 | |
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*Cash flow from operating activities for the quarter ended and year to date September 30, 2008 was reduced by $87 million and $131 million, respectively, due to the impact of income taxes on divestitures. Cash flow from operating activities for the quarter ended and year to date September 30, 2007 was reduced by $530 million and $1.6 billion, respectively, 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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| | | | | September 30, | | December 31, |
| | | | | | 2008 | | 2007 |
| Condensed Balance Sheet | | | | | | | |
| Cash and cash equivalents | | | | | $ | 1,980 | | | $ | 1,268 | |
| Other current assets | | | | | | 3,003 | | | | 3,218 | |
| Current assets held for sale | | | | | | 3 | | | | - | |
| Net properties and equipment | | | | | | 36,877 | | | | 37,451 | |
| Other assets | | | | | | 1,118 | | | | 1,030 | |
| Goodwill and other intangible assets | | | | | | 5,100 | | | | 5,166 | |
| Long-term assets held for sale | | | | | | 1,148 | | | | 318 | |
| Total Assets | | | | | $ | 49,229 | | | $ | 48,451 | |
| Current debt | | | | | $ | 1,708 | | | $ | 1,396 | |
| Other current liabilities | | | | | | 4,479 | | | | 3,838 | |
| Current liabilities associated with assets held for sale | | | | | | 45 | | | | - | |
| Long-term debt | | | | | | 9,120 | | | | 11,151 | |
| Midstream subsidiary note to a related party | | | | | | 1,870 | | | | 2,200 | |
| Other long-term liabilities | | | | | | 13,138 | | | | 13,496 | |
| Long-term liabilities associated with assets held for sale | | | | | | 299 | | | | 6 | |
| Minority interests | | | | | | 359 | | | | - | |
| Stockholders' equity | | | | | | 18,211 | | | | 16,364 | |
| Total Liabilities and Stockholders' Equity | | | | | $ | 49,229 | | | $ | 48,451 | |
| Capitalization | | | | | | | |
| Total debt | | | | | $ | 12,698 | | | $ | 14,747 | |
| Stockholders' equity | | | | | | 18,211 | | | | 16,364 | |
| Total | | | | | $ | 30,909 | | | $ | 31,111 | |
| Capitalization Ratios | | | | | | | |
| Total debt | | | | | | 41 | % | | | 47 | % |
| Stockholders' equity | | | | | | 59 | % | | | 53 | % |
| Anadarko Petroleum Corporation |
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| | Quarter Ended | Year to Date |
| Sales Volumes and Prices | | September 30 | September 30 |
| | | 2008 | | 2007 | | 2008 | | 2007 |
| Natural Gas | | | | | | | | |
| United States | | | | | | | | |
| Volumes, billion cubic feet | | | 183 | | | | 151 | | | | 548 | | | | 513 | |
| Average daily volumes, million cubic feet per day | | | 1,994 | | | | 1,637 | | | | 2,000 | | | | 1,877 | |
| Price per thousand cubic feet excluding derivatives | | $ | 8.36 | | | $ | 4.70 | | | $ | 8.55 | | | $ | 5.75 | |
| Realized gain (loss) on derivatives | | | 0.13 | | | | 0.84 | | | | (0.15 | ) | | | 0.73 | |
| Unrealized gain (loss) on derivatives | | | 4.57 | | | | 0.24 | | | | 0.89 | | | | (0.42 | ) |
| Total gains (losses) on derivatives | | $ | 4.70 | | | $ | 1.08 | | | $ | 0.74 | | | $ | 0.31 | |
| Total price per thousand cubic feet | | $ | 13.06 | | | $ | 5.78 | | | $ | 9.29 | | | $ | 6.06 | |
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| Crude Oil and Condensate | | | | | | | | |
| United States | | | | | | | | |
| Volumes, million barrels | | | 9 | | | | 10 | | | | 32 | | | | 36 | |
| Average daily volumes, thousand barrels per day | | | 103 | | | | 116 | | | | 117 | | | | 134 | |
| Price per barrel excluding derivatives | | $ | 114.26 | | | $ | 72.12 | | | $ | 107.89 | | | $ | 61.13 | |
| Realized gain (loss) on derivatives | | | (15.27 | ) | | | 0.65 | | | | (11.35 | ) | | | 3.83 | |
| Unrealized gain (loss) on derivatives | | | 106.14 | | | | (7.21 | ) | | | (2.90 | ) | | | (8.20 | ) |
| Total gains (losses) on derivatives | | $ | 90.87 | | | $ | (6.56 | ) | | $ | (14.25 | ) | | $ | (4.37 | ) |
| Price per barrel | | $ | 205.13 | | | $ | 65.56 | | | $ | 93.64 | | | $ | 56.76 | |
| Algeria | | | | | | | | |
| Volumes, million barrels | | | 6 | | | | 6 | | | | 16 | | | | 18 | |
| Average daily volumes, thousand barrels per day | | | 64 | | | | 65 | | | | 57 | | | | 64 | |
| Price per barrel excluding derivatives | | $ | 116.55 | | | $ | 75.83 | | | $ | 114.51 | | | $ | 68.08 | |
| Realized gain (loss) on derivatives | | | (8.39 | ) | | | - | | | | (8.20 | ) | | | - | |
| Unrealized gain (loss) on derivatives | | | 85.29 | | | | 1.38 | | | | (9.92 | ) | | | (1.72 | ) |
| Total gains (losses) on derivatives | | $ | 76.90 | | | $ | 1.38 | | | $ | (18.12 | ) | | $ | (1.72 | ) |
| Price per barrel | | $ | 193.45 | | | $ | 77.21 | | | $ | 96.39 | | | $ | 66.36 | |
| Other International | | | | | | | | |
| Volumes, million barrels | | | 1 | | | | 2 | | | | 4 | | | | 6 | |
| Average daily volumes, thousand barrels per day | | | 15 | | | | 17 | | | | 16 | | | | 21 | |
| Price per barrel | | $ | 105.28 | | | $ | 63.52 | | | $ | 98.73 | | | $ | 56.13 | |
| Total | | | | | | | | |
| Volumes, million barrels | | | 16 | | | | 18 | | | | 52 | | | | 60 | |
| Average daily volumes, thousand barrels per day | | | 182 | | | | 198 | | | | 190 | | | | 219 | |
| Price per barrel excluding derivatives | | $ | 114.34 | | | $ | 72.63 | | | $ | 109.10 | | | $ | 62.68 | |
| Realized gain (loss) on derivatives | | | (11.60 | ) | | | 0.38 | | | | (9.42 | ) | | | 2.35 | |
| Unrealized gain (loss) on derivatives | | | 90.11 | | | | (3.76 | ) | | | (4.77 | ) | | | (5.53 | ) |
| Total gains (losses) on derivatives | | $ | 78.51 | | | $ | (3.38 | ) | | $ | (14.19 | ) | | $ | (3.18 | ) |
| Total price per barrel | | $ | 192.85 | | | $ | 69.25 | | | $ | 94.91 | | | $ | 59.50 | |
| | | | | | | | | |
| Natural Gas Liquids | | | | | | | | |
| United States | | | | | | | | |
| Volumes, million barrels | | | 4 | | | | 4 | | | | 11 | | | | 12 | |
| Average daily volumes, thousand barrels per day | | | 38 | | | | 39 | | | | 39 | | | | 45 | |
| Total price per barrel | | $ | 69.30 | | | $ | 48.39 | | | $ | 65.17 | | | $ | 41.57 | |
| Total Barrels of Oil Equivalent (BOE) | | | | | | | | |
| Volumes, million BOE | | | 51 | | | | 47 | | | | 154 | | | | 158 | |
| Average daily volumes, thousand BOE per day | | | 552 | | | | 510 | | | | 562 | | | | 577 | |
| Anadarko Petroleum Corporation |
| Financial and Operating Guidance |
| Continuing Operations |
| As of November 4, 2008 |
| | | | | | | | | | | | |
| | 4th Quarter | | Full Year |
| | 2008 Forecast | | 2008 Forecast |
| | | | | | | | | | | | |
| | Units | | Units |
| | | | | | | | | | | | |
| Total Sales (MMBOE) | | | 50 | | | - | | 53 | | | | 204 | | | - | | 207 | |
| | | | | | | | | | | | |
| Crude Oil (MBbl/d): | | | 155 | | | - | | 165 | | | | 180 | | | - | | 185 | |
| | | | | | | | | | | | |
| United States | | | 75 | | | - | | 86 | | | | 106 | | | - | | 108 | |
| Algeria | | | 60 | | | - | | 65 | | | | 58 | | | - | | 60 | |
| Other International | | | 15 | | | - | | 16 | | | | 15 | | | - | | 17 | |
| | | | | | | | | | | | |
| Natural Gas (MMcf/d): | | | | | | | | | | | | |
| | | | | | | | | | | | |
| United States | | | 2,110 | | | - | | 2,140 | | | | 2,030 | | | - | | 2,040 | |
| | | | | | | | | | | | |
| Natural Gas Liquids (MBbl/d): | | | | | | | | | | | | |
| | | | | | | | | | | | |
| United States | | | 35 | | | - | | 38 | | | | 38 | | | - | | 40 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | $ / Unit | | $ / Unit |
| Price Differentials vs NYMEX (w/o hedges) | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Crude Oil ($/Bbl): | | | (2.50 | ) | | - | | (4.50 | ) | | | (3.80 | ) | | - | | (4.50 | ) |
| | | | | | | | | | | | |
| United States | | | (3.00 | ) | | - | | (5.00 | ) | | | (4.50 | ) | | - | | (5.00 | ) |
| Algeria | | | - | | | - | | (2.00 | ) | | | - | | | - | | (0.50 | ) |
| Other International | | | (9.00 | ) | | - | | (11.00 | ) | | | (13.00 | ) | | - | | (14.00 | ) |
| | | | | | | | | | | | |
| Natural Gas ($/Mcf): | | | | | | | | | | | | |
| | | | | | | | | | | | |
| United States | | | (1.50 | ) | | - | | (2.00 | ) | | | (1.25 | ) | | - | | (1.75 | ) |
| Anadarko Petroleum Corporation |
| Financial and Operating Guidance |
| Continuing Operations |
| As of November 4, 2008 |
| | | | | | | | | | | | |
| | 4th Quarter | | Full Year |
| | 2008 Forecast | | 2008 Forecast |
| | | | | | | | | | | | |
| | $ MM | | $ MM |
| Other Revenues: | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Gathering, Processing & Marketing Margins | | | 85 | | | - | | 95 | | | | 345 | | | - | | 355 | |
| Minerals and Other | | | 25 | | | - | | 35 | | | | 170 | | | - | | 180 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Costs and Expenses: | | | | | | | | | | | | |
| | $ / Boe | | $ / Boe |
| | | | | | | | | | | | |
| Oil & Gas Lease Operating | | | 6.00 | | | - | | 6.50 | | | | 5.30 | | | - | | 5.50 | |
| Oil & Gas Transportation and Other | | | 2.50 | | | - | | 2.75 | | | | 2.50 | | | - | | 2.70 | |
| Depreciation, Depletion and Amortization | | | 15.00 | | | - | | 15.50 | | | | 15.60 | | | - | | 15.75 | |
| Production Taxes (% of Revenue) | | | 12.5 | % | | - | | 13.5 | % | | | 12.5 | % | | - | | 13.5 | % |
| | | | | | | | | | | | |
| | $ MM | | $ MM |
| | | | | | | | | | | | |
| General and Administrative | | | 210 | | | - | | 225 | | | | 835 | | | - | | 850 | |
| | | | | | | | | | | | |
| Exploration Expense | | | | | | | | | | | | |
| Non-Cash | | | 200 | | | - | | 220 | | | | 780 | | | - | | 800 | |
| Cash | | | 110 | | | - | | 120 | | | | 325 | | | - | | 335 | |
| | | | | | | | | | | | |
| Interest Expense | | | 175 | | | - | | 185 | | | | 735 | | | - | | 745 | |
| Other (Income) Expense | | | (10 | ) | | - | | 10 | | | | (15 | ) | | - | | 5 | |
| | | | | | | | | | | | |
| Effective Tax Rate | | | 35 | % | | - | | 40 | % | | | 40 | % | | - | | 45 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Avg. Shares Outstanding (MM) | | | | | | | | | | | | |
| | | | | | | | | | | | |
| Basic | | | 460 | | | - | | 462 | | | | 466 | | | - | | 468 | |
| Diluted | | | 463 | | | - | | 464 | | | | 463 | | | - | | 465 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | $ MM | | $ MM |
| | | | | | | | | | | | |
| Capital Investment | | | 1,275 | | | - | | 1,375 | | | | 4,650 | | | - | | 4,750 | |
| | | | | | | | | | | | |
| Capital Projects | | | 1,265 | | | - | | 1,345 | | | | 4,540 | | | - | | 4,620 | |
| Capitalized Interest | | | 10 | | | - | | 30 | | | | 110 | | | - | | 130 | |
| Anadarko Petroleum Corporation |
| Commodity Hedge Positions (Excluding Natural Gas Basis) |
| As of November 4, 2008 |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | Weighted Average Price per MMBtu |
| | | | | | | | | | | |
| | Volume (thousand MMBtu/d) | | | Floor Sold | | | Floor Purchased | | | Ceiling Sold |
| Natural Gas | | | | | | | | | | | |
| Three-Way Collars | | | | | | | | | | | |
| Remainder of 2008 | | | | | | | | | | | |
| | 500 | | $ | 5.00 | | $ | 7.50 | | $ | 14.26 |
| | 900 | | $ | 5.50 | | $ | 7.50 | | $ | 9.14 |
| | 1,400 | | $ | 5.32 | | $ | 7.50 | | $ | 10.97 |
| | | | | | | | | | | |
2009 | | 530 | | $ | 5.45 | | $ | 7.50 | | $ | 11.25 |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | Weighted Average Price per barrel |
| | | | | | | | | | | |
| | Volume (thousand MBbls/d) | | | Floor Sold | | | Floor Purchased | | | Ceiling Sold |
| Crude Oil | | | | | | | | | | | |
| Three-Way Collars | | | | | | | | | | | |
| Remainder of 2008 | | | | | | | | | | | |
| | 31 | | $ | 34.09 | | $ | 49.09 | | $ | 87.09 |
| | 20 | | $ | 45.00 | | | 60.00 | | $ | 87.38 |
| | 35 | | $ | 45.00 | | $ | 60.00 | | $ | 101.39 |
| | 86 | | $ | 41.07 | | $ | 56.07 | | $ | 92.98 |
| | | | | | | | | | | |
2009 | | 48 | | $ | 37.51 | | $ | 52.51 | | $ | 87.04 |
| 2010 | | 18 | | $ | 34.18 | | $ | 49.19 | | $ | 86.76 |
| 2011 | | 3 | | $ | 35.00 | | $ | 50.00 | | $ | 86.00 |
| 2012 | | 2 | | $ | 35.00 | | $ | 50.00 | | $ | 92.50 |
| Anadarko Petroleum Corporation |
| Natural Gas Basis Hedge Positions |
| As of November 4, 2008 |
| | | | | |
| | | | | |
| | Volume (thousand MMBtu/d) | | | Price per MMBtu |
| Basis Swaps | | | | | |
| Remainder of 2008 | | | | | |
Gulf Coast | | 560 | | $ | (0.24 | ) |
| Mid Continent | | 365 | | $ | (1.01 | ) |
| Rocky Mountains | | 455 | | $ | (1.47 | ) |
| West Texas | | 35 | | $ | (0.92 | ) |
| | 1,415 | | $ | (0.85 | ) |
| | | | | |
| 2009 | | | | | |
| Gulf Coast | | 315 | | $ | (0.15 | ) |
| Mid Continent | | 330 | | $ | (0.85 | ) |
| Rocky Mountains | | 555 | | $ | (1.25 | ) |
| | 1,200 | | $ | (0.85 | ) |
| | | | | |
| 2010 | | | | | |
| Mid Continent | | 125 | | $ | (0.83 | ) |
| Rocky Mountains | | 340 | | $ | (1.28 | ) |
| | 465 | | $ | (1.16 | ) |
| | | | | |
| | | | | |
| | | | | |
| Rockies Export Firm Transportation |
| As of November 4, 2008 |
| | Daily Volume (MMBtu's) |
| | by Pricing Point |
| Delivery/Pricing Point | | |
| Remainder of 2008 | | |
| Mid Continent | | 491 |
| West Coast | | 88 |
| San Juan | | 15 |
| | 594 |
| | |
| 2009 | | |
| Mid Continent | | 491 |
| West Coast | | 88 |
| San Juan | | 15 |
| | 594 |
| | |
2010* | | |
| Mid Continent | | 491 |
| West Coast | | 88 |
| San Juan | | 15 |
| | 594 |
*New agreement with Bison to begin in November 2010 | | |
| Anadarko Petroleum Corporation |
| Retained Properties Sales |
| | | | | | | | | | | | |
| | 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
Danny Hart, 832-636-1355
danny.hart@anadarko.com
