Exhibit 99
Anadarko Announces First-Quarter Results
HOUSTON--(BUSINESS WIRE)--May 3, 2010--Anadarko Petroleum Corporation (NYSE: APC) today announced first-quarter 2010 net income attributable to common stockholders of $716 million, or $1.43 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items increased net income by approximately $304 million, or $0.62 per share (diluted) on an after-tax basis.(1) Cash flow from operating activities in the first quarter of 2010 was $1.317 billion, and discretionary cash flow totaled $1.530 billion.(2)
FIRST-QUARTER 2010 HIGHLIGHTS
- Achieved record quarterly sales volumes
- Reduced lease operating expenses per unit by 32 percent vs. first-quarter 2009
- Drilled three successful deepwater appraisal wells
- Announced the first discovery in a frontier basin offshore Mozambique
- Closed $1.5 billion joint-venture agreement in the Marcellus Shale
“During the first quarter of 2010, we continued to build upon the success of 2009 and again delivered significant growth,” said Jim Hackett, Anadarko Chairman and CEO. “In the first quarter of this year, our reported sales volumes increased by about 15 percent relative to the first quarter of 2009, and we’ve further improved our cost-control efforts and the strength of our balance sheet. With the strong and consistent performance of our producing properties, we are raising our full-year sales volumes guidance to a range of 230 million to 234 million BOE (barrels of oil equivalent) – equivalent to an increase of 3.5 million BOE in the estimated midpoint.”
Anadarko’s deepwater drilling program also delivered strong results with three successful appraisal wells – offshore Ghana at Tweneboa and in the deepwater Gulf of Mexico at Lucius and Vito. The company plans to continue delineation activities this year on each of these emerging mega projects. In addition, Anadarko made a new discovery offshore Mozambique at the Windjammer prospect. This was the first deepwater well in the Rovuma Basin, and encountered more than 555 net feet of natural gas pay, proving the presence of an active hydrocarbon system in the basin and validating the prospectivity of Anadarko’s large acreage position.
First-quarter 2010 sales volumes of natural gas, crude oil and natural gas liquids totaled 62 million BOE, or 686,000 BOE per day. Reported sales volumes for the quarter included approximately 1.9 million BOE from a royalty price threshold adjustment related to the company’s 2009 Gulf of Mexico natural gas sales. First-quarter 2010 natural gas sales volumes averaged approximately 2.4 billion cubic feet per day. Oil sales volumes in the first quarter averaged 222,000 barrels per day and natural gas liquids sales volumes averaged 65,000 barrels per day.
OPERATIONS UPDATE
During the first quarter of 2010, Anadarko closed the previously announced $1.5 billion joint-venture agreement with Mitsui E&P USA LLC, an affiliate of Mitsui & Co., Ltd., whereby Mitsui will earn a 32.5-percent interest in Anadarko’s Marcellus Shale assets by funding nearly all of Anadarko’s development costs through 2013. Anadarko also acquired more than 80,000 net acres in the liquids-rich portion of the Eagleford Shale in the Maverick Basin from TXCO for approximately $93 million and increased its working interest in all of its Eagleford properties to 75 percent. Additionally, the company further strengthened its balance sheet by refinancing a portion of its near-term debt maturities.
Anadarko continues to advance its three sanctioned mega projects, Jubilee, Caesar/Tonga and El Merk, toward first production on time and on budget. Installation of subsea infrastructure and equipment is under way at the Jubilee field offshore Ghana. The sail-away of the FPSO (floating production, storage and offloading) vessel, from Singapore to Ghana, is scheduled for later this month, with first production from the Jubilee field on schedule for the end of this year.
In early April, Anadarko announced the successful pre-salt drillstem test at the Wahoo#1 well offshore Brazil. The company believes the well will be capable of producing at a sustained rate in excess of 15,000 barrels of high-quality oil per day. Anadarko has moved the drillship to the Wahoo#2 well to conduct its second drillstem test in the field, before mobilizing the rig to drill the Wahoo South exploration well later this quarter.
About two weeks ago, in the Gulf of Mexico, the BP-operated Macondo exploration well on Mississippi Canyon block 252 discovered an oil accumulation. As reported in the press, an explosion and fire occurred on the Deepwater Horizon drilling rig during operations. The rig subsequently sank, hydrocarbons were released into the Gulf and a large-scale well-control and clean-up effort has ensued. Anadarko is a 25-percent working interest owner in this block, which is operated by BP Exploration & Production, Inc. A full response and investigation is being conducted by the operator of the well, the drilling rig owner and governmental entities. The company maintains insurance policies designed to provide financial protection for such events, for its share of gross covered costs up to an aggregate level of approximately $710 million, less deductibles. Based on its 25-percent non-operated interest, the company estimates its net insurance coverage will likely total approximately $177.5 million, less deductibles of $15 million.
CONFERENCE CALL TOMORROW AT 9 A.M. CDT, 10 A.M. EDT
Anadarko will host a conference call on Tuesday, May 4, at 9 a.m. Central Daylight Time (10 a.m. Eastern Daylight Time) to discuss first-quarter results, current operations and the company’s outlook for the remainder of 2010. The dial-in number is 888.713.4218 in the United States or 617.213.4870 internationally. The confirmation number is 14797442. 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 first-quarter 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 2009, the company had approximately 2.3 billion barrels-equivalent of proved reserves, making it one of the world’s largest independent 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 financial measures provide 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 and 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 the outcome of events in the Gulf of Mexico relating to the Macondo well, the company’s ability to achieve its production targets, successfully manage its capital expenditures, and successfully drill, complete, test and produce the wells and prospects identified in this news release. See “Risk Factors” in the company’s 2009 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 |
| | | | | | |
| Certain Items Affecting Comparability |
| | | | | | |
| | Quarter Ended March 31, 2010 |
| | Before | | After | | Per Share |
| millions except per-share amounts | | Tax | | Tax | | (diluted) |
| Unrealized gains (losses) on derivatives, net* | | $ | 545 | | | $ | 348 | | | | 0.71 | |
| Loss on early retirements of debt | | | (40 | ) | | | (25 | ) | | | (0.05 | ) |
| Gains (losses) on divestitures and other, net | | | (13 | ) | | | (7 | ) | | | (0.01 | ) |
| Impairments | | | (12 | ) | | | (8 | ) | | | (0.02 | ) |
| Change in uncertain tax positions (FIN48) | | | - | | | | (4 | ) | | | (0.01 | ) |
| | | $ | 480 | | | $ | 304 | | | $ | 0.62 | |
| | | | | | |
| *For the quarter ended March 31, 2010, before-tax unrealized gains (losses) on derivatives, net includes $567 million related to commodity derivatives, $(29) million related to other derivatives, and $7 million related to gathering, processing and marketing sales. |
| | | | | | |
| | Quarter Ended March 31, 2009 |
| | Before | | After | | Per Share |
| millions except per-share amounts | | Tax | | Tax | | (diluted) |
| Unrealized gains (losses) on derivatives, net* | | $ | (240 | ) | | $ | (153 | ) | | | (0.33 | ) |
| Gains (losses) on divestitures, net | | | 10 | | | | 8 | | | | 0.02 | |
| Impairments | | | (51 | ) | | | (33 | ) | | | (0.07 | ) |
| Change in uncertain tax positions (FIN48) | | | - | | | | 82 | | | | 0.18 | |
| | | $ | (281 | ) | | $ | (96 | ) | | $ | (0.20 | ) |
| | | | | | |
| *For the quarter ended March 31, 2009, before-tax unrealized gains (losses) on derivatives, net includes $(324) million related to commodity derivatives, $113 million related to other derivatives, and $(29) million related to gathering, processing and marketing sales. |
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| Reconciliation of GAAP to Non-GAAP Measures |
| | | | | | |
| Below are reconciliations of cash provided by operating activities (GAAP) to discretionary cash flow and free cash flow (non-GAAP), and net income (GAAP) to adjusted net income (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 to evaluate the company’s operational trends and performance. |
| | | | | | |
| | | | Quarter Ended |
| | | | March 31, |
| millions | | | | 2010 | | 2009 |
| Net cash provided by operating activities | | | | $ | 1,317 | | | $ | 533 | |
| Add back: | | | | | | |
| Change in accounts receivable | | | | | 27 | | | | (256 | ) |
| Change in accounts payable and accrued expenses | | | | | 281 | | | | 589 | |
| Change in other items - net | | | | | (95 | ) | | | (134 | ) |
| Discretionary cash flow from operations | | | | $ | 1,530 | | | $ | 732 | |
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| Anadarko Petroleum Corporation |
| | | | | | | | |
| Reconciliation of GAAP to Non-GAAP Measures |
| | | | | | | | |
| | | | | | Quarter Ended |
| | | | | | March 31, |
| millions | | | | | | | 2010 | | | | 2009 | |
| Discretionary cash flow from operations | | | | | | $ | 1,530 | | | $ | 732 | |
| Less: Capital expenditures | | | | | | | 1,239 | | | | 1,107 | |
| Free cash flow | | | | | | $ | 291 | | | $ | (375 | ) |
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| | Quarter Ended | | Quarter Ended |
| | March 31, 2010 | | March 31, 2009 |
| | After | | Per Share | | After | | Per Share |
| millions except per-share amounts | | Tax | | (diluted) | | Tax | | (diluted) |
| Net income (loss) attributable to common stockholders | | $ | 716 | | | 1.43 | | $ | (338 | ) | | | (0.73 | ) |
| Less: Certain items affecting comparability | | | 304 | | | 0.62 | | | (96 | ) | | | (0.20 | ) |
| Adjusted net income (loss) | | $ | 412 | | $ | 0.81 | | $ | (242 | ) | | $ | (0.53 | ) |
| | | | | | | | |
| 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 relative to its cash and cash equivalents on hand. |
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| | | | | | | | March 31, |
| millions | | | | | | | | 2010 |
| Total debt | | | | | | | | $ | 12,937 | |
| Less: Cash and cash equivalents | | | | | | | | | 3,692 | |
| Net debt | | | | | | | | $ | 9,245 | |
| Anadarko Petroleum Corporation |
| (Unaudited) |
| | | | |
| | Quarter Ended |
| Summary Financial Information | | March 31, |
| millions except per-share amounts | | 2010 | | 2009 |
| Consolidated Statements of Income | | | | |
| Revenues and Other | | | | |
| Gas sales | | $ | 1,081 | | | $ | 871 | |
| Oil and condensate sales | | | 1,502 | | | | 636 | |
| Natural-gas liquids sales | | | 274 | | | | 83 | |
| Gathering, processing and marketing sales | | | 273 | | | | 161 | |
| Gains (losses) on divestitures and other, net | | | 9 | | | | 45 | |
| Total | | | 3,139 | | | | 1,796 | |
| Costs and Expenses | | | | |
| Oil and gas operating | | | 187 | | | | 241 | |
| Oil and gas transportation and other | | | 191 | | | | 174 | |
| Exploration | | | 155 | | | | 301 | |
| Gathering, processing and marketing | | | 183 | | | | 135 | |
| General and administrative | | | 210 | | | | 209 | |
| Depreciation, depletion and amortization | | | 981 | | | | 806 | |
| Other taxes | | | 301 | | | | 150 | |
| Impairments | | | 12 | | | | 51 | |
| Total | | | 2,220 | | | | 2,067 | |
| Operating Income (Loss) | | | 919 | | | | (271 | ) |
| Other (Income) Expense | | | | |
| Interest expense | | | 224 | | | | 182 | |
| (Gains) losses on commodity derivatives, net | | | (588 | ) | | | 201 | |
| (Gains) losses on other derivatives, net | | | 29 | | | | (98 | ) |
| Other (income) expense, net | | | 9 | | | | (11 | ) |
| Total | | | (326 | ) | | | 274 | |
| Income (Loss) Before Income Taxes | | | 1,245 | | | | (545 | ) |
| Income Tax Expense (Benefit) | | | 517 | | | | (214 | ) |
| Net Income (Loss) | | $ | 728 | | | $ | (331 | ) |
| Net Income Attributable to Noncontrolling Interests | | | 12 | | | | 7 | |
| Net Income (Loss) Attributable to Common Stockholders | | $ | 716 | | | $ | (338 | ) |
| Per Common Share: | | | | |
| Net income (loss) attributable to common stockholders - basic | | $ | 1.44 | | | $ | (0.73 | ) |
| Net income (loss) attributable to common stockholders - diluted | | $ | 1.43 | | | $ | (0.73 | ) |
| Average Number of Common Shares Outstanding - Basic | | | 493 | | | | 460 | |
| Average Number of Common Shares Outstanding - Diluted | | | 496 | | | | 460 | |
| | | | |
| | | | | |
| Exploration Expense | | | | |
| Dry hole expense | | $ | 25 | | | $ | 121 | |
| Impairments of unproved properties | | | 88 | | | | 107 | |
| Geological and geophysical expense | | | 3 | | | | 34 | |
| Exploration overhead and other | | | 39 | | | | 39 | |
| Total | | $ | 155 | | | $ | 301 | |
| Anadarko Petroleum Corporation |
| (Unaudited) |
| | | | |
| | Quarter Ended |
| Summary Financial Information | | March 31, |
| millions | | 2010 | | 2009 |
| Cash Flow from Operating Activities | | | | |
| Net income (loss) | | $ | 728 | | | $ | (331 | ) |
| Depreciation, depletion and amortization | | | 981 | | | | 806 | |
| Deferred income taxes | | | 154 | | | | (299 | ) |
| Dry hole expense and impairments of unproved properties | | | 113 | | | | 228 | |
| Impairments | | | 12 | | | | 51 | |
| (Gains) losses on divestitures, net | | | (13 | ) | | | (10 | ) |
| Unrealized (gains) losses on derivatives | | | (545 | ) | | | 240 | |
| Other noncash items | | | 100 | | | | 47 | |
| Discretionary Cash Flow from Operations | | | 1,530 | | | | 732 | |
| (Increase) decrease in accounts receivable | | | (27 | ) | | | 256 | |
| Increase (decrease) in accounts payable and accrued expenses | | | (281 | ) | | | (589 | ) |
| Other items - net | | | 95 | | | | 134 | |
| Net cash provided by operating activities | | $ | 1,317 | | | $ | 533 | |
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| | | | | |
| Capital Expenditures | | $ | 1,239 | | | $ | 1,107 | |
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| | | | |
| | March 31, | | December 31, |
| | | 2010 | | 2009 |
| Condensed Balance Sheets | | | | |
| Cash and cash equivalents | | $ | 3,692 | | | $ | 3,531 | |
| Other current assets | | | 2,710 | | | | 2,552 | |
| Net properties and equipment | | | 37,353 | | | | 37,204 | |
| Other assets | | | 1,640 | | | | 1,514 | |
| Goodwill and other intangible assets | | | 5,313 | | | | 5,322 | |
| Total Assets | | $ | 50,708 | | | $ | 50,123 | |
| Current debt | | $ | 478 | | | $ | - | |
| Other current liabilities | | | 3,421 | | | | 3,824 | |
| Long-term debt | | | 11,110 | | | | 11,149 | |
| Midstream subsidiary note payable to a related party | | | 1,349 | | | | 1,599 | |
| Other long-term liabilities | | | 13,225 | | | | 13,136 | |
| Stockholders' equity | | | 20,667 | | | | 19,928 | |
| Noncontrolling interests | | | 458 | | | | 487 | |
| Total Liabilities and Equity | | $ | 50,708 | | | $ | 50,123 | |
| Capitalization | | | | |
| Total debt | | $ | 12,937 | | | $ | 12,748 | |
| Stockholders' equity | | | 20,667 | | | | 19,928 | |
| Total | | $ | 33,604 | | | $ | 32,676 | |
| Capitalization Ratios | | | | |
| Total debt | | | 38 | % | | | 39 | % |
| Stockholders' equity | | | 62 | % | | | 61 | % |
| Anadarko Petroleum Corporation |
| (Unaudited) |
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| Sales Volumes and Prices | | | | | | | | | | | | | | | | | | | |
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| | 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 March 31, 2010 | | | | | | | | | | | | | | | | | | | |
| United States | | | 2,393 | | | 139 | | | 65 | | | 215 | | | 12 | | | | 6 | | | | $ | 5.02 | | $ | 74.98 | | $ | 46.64 |
| Algeria | | | | | 69 | | | | | | | 6 | | | | | | | | $ | 76.04 | | |
| Other International | | | | | 14 | | | | | | | 2 | | | | | | | | $ | 73.16 | | |
| Total | | | 2,393 | | | 222 | | | 65 | | | 215 | | | 20 | | | | 6 | | | | $ | 5.02 | | $ | 75.18 | | $ | 46.64 |
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| Quarter Ended March 31, 2009 | | | | | | | | | | | | | | | | | | | |
| United States | | | 2,315 | | | 103 | | | 40 | | | 208 | | | 9 | | | | 4 | | | | $ | 4.18 | | $ | 38.45 | | $ | 23.05 |
| Algeria | | | | | 58 | | | | | | | 5 | | | | | | | | $ | 45.50 | | |
| Other International | | | | | 13 | | | | | | | 1 | | | | | | | | $ | 36.79 | | |
| Total | | | 2,315 | | | 174 | | | 40 | | | 208 | | | 15 | | | | 4 | | | | $ | 4.18 | | $ | 40.68 | | $ | 23.05 |
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| | Average Daily Volumes
MBOE/d | | | | Sales Volumes MMBOE | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Quarter Ended March 31, 2010 | | | 686 | | | | | 62 | | | | | | | | | | | | | |
| Quarter Ended March 31, 2009 | | | 600 | | | | | 54 | | | | | | | | | | | | | |
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| Sales Revenue and Commodity Derivatives |
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| | Sales | | Commodity Derivatives Gain (Loss) | | | | | |
| | | | Crude Oil & | | | | Natural Gas | | Crude Oil & Condensate | | | | | |
| millions | | Natural Gas | | Condensate | | NGLs | | Realized | | Unrealized | | Realized | | Unrealized | | | | | |
| Quarter Ended March 31, 2010 | | | | | | | | | | | | | | | | | | | |
| United States | | $ | 1,081 | | $ | 935 | | $ | 274 | | $ | 19 | | $ | 566 | | | $ | (1 | ) | | $ | (5 | ) | | | | | |
| Algeria | | | | | 470 | | | | | | | | | 3 | | | | 6 | | | | | | |
| Other International | | | | | 97 | | | | | | | | | | | | | | | |
| Total | | $ | 1,081 | | $ | 1,502 | | $ | 274 | | $ | 19 | | $ | 566 | | | $ | 2 | | | $ | 1 | | | | | | |
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| Quarter Ended March 31, 2009 | | | | | | | | | | | | | | | | | | | |
| United States | | $ | 871 | | $ | 356 | | $ | 83 | | $ | 86 | | $ | (277 | ) | | $ | 27 | | | $ | (18 | ) | | | | | |
| Algeria | | | | | 237 | | | | | | | | | 10 | | | | (29 | ) | | | | | |
| Other International | | | | | 43 | | | | | | | | | | | | | | | |
| Total | | $ | 871 | | $ | 636 | | $ | 83 | | $ | 86 | | $ | (277 | ) | | $ | 37 | | | $ | (47 | ) | | | | | |
| Anadarko Petroleum Corporation |
| Financial and Operating Guidance |
| Continuing Operations |
| As of May 3, 2010 |
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| | 2nd Qtr | | | Total Year |
| | Guidance | | | Guidance |
| | | | | | | | | |
| | Units | | | Units |
| | | | | | | | | |
| Total Sales (MMBOE) | | 57 | | - | 60 | | | | 230 | | - | 234 | |
| | | | | | | | | |
| Crude Oil (MBbl/d): | | 190 | | - | 202 | | | | 190 | | - | 195 | |
| | | | | | | | | |
| United States | | 125 | | - | 130 | | | | 121 | | - | 124 | |
| Algeria | | 54 | | - | 56 | | | | 55 | | - | 57 | |
| Other International | | 14 | | - | 17 | | | | 13 | | - | 14 | |
| | | | | | | | | |
| Natural Gas (MMcf/d): | | | | | | | | | |
| | | | | | | | | |
| United States | | 2,250 | | - | 2,350 | | | | 2,300 | | - | 2,350 | |
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| Natural Gas Liquids (MBbl/d): | | | | | | | | | |
| | | | | | | | | |
| United States | | 58 | | - | 62 | | | | 58 | | - | 60 | |
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| | $ / Unit | | | $ / Unit |
| Price Differentials vs NYMEX (w/o hedges) | | | | | | | | | |
| | | | | | | | | |
| Crude Oil ($/Bbl): | | (4.00 | ) | - | (6.00 | ) | | | (3.50 | ) | - | (4.50 | ) |
| | | | | | | | | |
| United States | | (4.00 | ) | - | (6.00 | ) | | | (4.50 | ) | - | (6.00 | ) |
| Algeria | | 1.00 | | - | (1.00 | ) | | | (1.00 | ) | - | (2.00 | ) |
| Other International | | (6.00 | ) | - | (11.00 | ) | | | (6.00 | ) | - | (10.00 | ) |
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| Natural Gas ($/Mcf): | | | | | | | | | |
| | | | | | | | | |
| United States | | (0.10 | ) | - | (0.40 | ) | | | (0.25 | ) | - | (0.50 | ) |
| Anadarko Petroleum Corporation |
| Financial and Operating Guidance |
| Continuing Operations |
| As of May 3, 2010 |
| | | | | | | | | |
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| | 2nd Qtr | | | Total Year |
| | Guidance | | | Guidance |
| | | | | | | | | |
| | $ MM | | | $ MM |
| Other Revenues: | | | | | | | | | |
| Marketing and Gathering Margin | | 40 | | - | 50 | | | | 150 | | - | 180 | |
| Minerals and Other | | 15 | | - | 25 | | | | 50 | | - | 75 | |
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| Costs and Expenses: | | | | | | | | | |
| | $ / Boe | | | $ / Boe |
| | | | | | | | | |
| Oil & Gas Direct Operating | | 3.75 | | - | 4.00 | | | | 4.00 | | - | 4.25 | |
| Oil & Gas Transportation/Other | | 3.00 | | - | 3.25 | | | | 3.00 | | - | 3.25 | |
| Depreciation, Depletion and Amortization | | 15.50 | | - | 16.00 | | | | 15.50 | | - | 16.00 | |
| Production Taxes (% of Revenue) | | 10.0 | % | - | 12.0 | % | | | 10.0 | % | - | 11.0 | % |
| | | | | | | | | |
| | $ MM | | | $ MM |
| | | | | | | | | |
| General and Administrative | | 225 | | - | 235 | | | | 910 | | - | 940 | |
| Exploration Expense | | | | | | | | | |
| Non-Cash | | 190 | | - | 210 | | | | 875 | | - | 925 | |
| Cash | | 70 | | - | 80 | | | | 275 | | - | 325 | |
| Interest Expense (net) | | 200 | | - | 210 | | | | 750 | | - | 775 | |
| Other (Income) Expense | | (10 | ) | - | 10 | | | | (20 | ) | - | 20 | |
| | | | | | | | | |
| | | | | | | | | |
| Tax Rate (all current) | | | | | | | | | |
| Algeria | | 55 | % | - | 65 | % | | | 55 | % | - | 65 | % |
| Rest of Company | | 40 | % | - | 50 | % | | | 30 | % | - | 40 | % |
| | | | | | | | | | |
| | | | | | | | | |
| Avg. Shares Outstanding (MM) | | | | | | | | | |
| | | | | | | | | |
| Basic | | 493 | | - | 495 | | | | 493 | | - | 495 | |
| Diluted | | 496 | | - | 498 | | | | 495 | | - | 497 | |
| | | | | | | | | |
| | $ MM | | | $ MM |
| Capital Investment: | | | | | | | | | |
| | | | | | | | | |
| Capital Projects | | 1,275 | | - | 1,470 | | | | 5,175 | | - | 5,470 | |
| Capitalized Interest | | 25 | | - | 30 | | | | 125 | | - | 130 | |
| Anadarko Petroleum Corporation |
| Commodity Hedge Positions (Excluding Natural Gas Basis) |
| As of May 3, 2010 |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | Volume | | | Weighted Average Price per MMBtu |
| | (thousand | | | | | | | |
| | MMBtu/d) | | | Floor Sold | | Floor Purchased | | Ceiling Sold |
| Natural Gas | | | | | | | | | |
Three-Way Collars | | | | | | | | | |
2010 | | 1,630 | | $ | 4.22 | $ | 5.59 | $ | 8.23 |
2011 | | 480 | | $ | 5.00 | $ | 6.50 | $ | 8.29 |
2012 | | 500 | | $ | 5.00 | $ | 6.50 | $ | 9.03 |
| | | | | | | | | |
| Fixed Price - Financial | | | | | | | | | |
| 2010 | | 90 | | $ | 6.10 | | | | |
| 2011 | | 90 | | $ | 6.17 | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | Volume | | | Weighted Average Price per barrel |
| | (thousand | | | | | | | |
| | MBbls/d) | | | Floor Sold | | Floor Purchased | | Ceiling Sold |
| Crude Oil | | | | | | | | | |
| Three-Way Collars | | | | | | | | | |
2010 | | 129 | | $ | 49.34 | $ | 64.34 | $ | 90.73 |
2011 | | 126 | | $ | 64.29 | $ | 79.29 | $ | 99.95 |
2012 | | 2 | | $ | 35.00 | $ | 50.00 | $ | 92.50 |
| Interest Rate Derivatives |
| As of May 3, 2010 |
| | | | | | | | | | | |
| Instrument | | Notional Amt. | | Start Date | | Maturity | | Rate Paid | | Rate Received |
| | | | | | | | | | |
| Swap | | $750 Million | | Oct-2011 | | Oct-2021 | | 4.72% | | 3M LIBOR |
| Swap | | $1,250 Million | | Oct-2011 | | Oct-2041 | | 4.83% | | 3M LIBOR |
| Swap | | $250 Million | | Oct-2012 | | Oct-2022 | | 4.91% | | 3M LIBOR |
| Swap | | $750 Million | | Oct-2012 | | Oct-2042 | | 4.80% | | 3M LIBOR |
| Anadarko Petroleum Corporation |
| Natural Gas Basis Hedge Positions |
| As of May 3, 2010 |
| | Volume | | | |
| | (thousand | | | Price per |
| | MMBtu/d) | | | MMBtu |
| Basis Swaps | | | | | |
2010 | | | | | |
| Mid Continent | | 125 | | $ | (0.83 | ) |
| Rocky Mountains | | 495 | | $ | (1.01 | ) |
| | 620 | | $ | (0.98 | ) |
| | | | | |
| 2011 | | 15 | | $ | (0.76 | ) |
| Mid Continent | | 30 | | $ | (2.22 | ) |
| Rocky Mountains | | 45 | | $ | (1.74 | ) |
| Rockies Export Firm Transportation |
| As of May 3, 2010 |
| (Only shown through 2012) |
| |
| | Daily Volume (MMMBtus) |
| | by Pricing Point |
| Delivery/Pricing Point | | |
| 2010 | | |
| Mid Continent | | 491 |
| West Coast | | 77 |
| Mid West** | | 250 |
| | 818 |
| 2011 | | |
| Mid Continent | | 491 |
| West Coast* | | 283 |
| Mid West** | | 250 |
| | 1,024 |
| 2012*** | | |
| Mid Continent | | 491 |
| West Coast | | 283 |
| Mid West | | 250 |
| | 1,024 |
| | |
| | |
| *New agreement with Ruby estimated to begin in March 2011. |
| **New agreement with Bison estimated to begin in November 2010. |
| ***It is assumed that any export contracts set to expire in 2012 will be extended |
CONTACT:
Anadarko Petroleum Corporation
MEDIA:
John Christiansen, 832-636-8736
john.christiansen@anadarko.com
or
Matt Carmichael, 832-636-2845
matt.carmichael@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
Dean Hennings, 832-636-2462
dean.hennings@anadarko.com
