Exhibit 99
Anadarko Announces Second-Quarter Results
Raises Sales-Volumes Guidance While Reaffirming Capital
Receives Commitments for New Five-Year Credit Facility
HOUSTON--(BUSINESS WIRE)--August 3, 2010--Anadarko Petroleum Corporation (NYSE: APC) today announced a second-quarter 2010 net loss attributable to common stockholders of $40 million, or $0.08 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items decreased net income by approximately $284 million, or $0.57 per share (diluted) on an after-tax basis.(1) Cash flow from operating activities in the second quarter of 2010 was $1.566 billion, and discretionary cash flow totaled $1.278 billion.(2)
SECOND-QUARTER 2010 HIGHLIGHTS
- Increased quarterly sales volumes by 6 percent over second-quarter 2009
- Reduced lease operating expenses per unit by 15 percent over second-quarter 2009
- Announced successful appraisal results in the Gulf of Mexico and Ghana
- Achieved significant growth in shale programs
- Continued to advance sanctioned mega projects on time and on budget
“During the second quarter, Anadarko’s diverse portfolio continued to deliver upon our operating and strategic objectives with increased sales volumes, improved cost management and margins, continued drilling success onshore and offshore, and significant gains in drilling efficiencies,” Anadarko Chairman and CEO Jim Hackett said. “Because of the company’s strong and consistent portfolio performance, we are increasing full-year production guidance for the second time this year, while maintaining initial capital guidance. We now expect sales volumes to be in the range of 232 million to 236 million BOE (barrels of oil equivalent), representing an increase of 5 to 7 percent over 2009.”
OPERATIONS UPDATE
During the second quarter of 2010, Anadarko increased sales volumes by approximately 6 percent over the second quarter of 2009. This performance was primarily driven by the company’s Marcellus, Eagleford and Haynesville shale plays, which are achieving critical mass, along with significant production increases from the liquids-rich areas of the company’s Rockies position.
Second-quarter 2010 sales volumes of natural gas, crude oil and natural gas liquids totaled 59 million BOE, or 651,000 BOE per day. Second-quarter 2010 natural gas sales volumes averaged approximately 2.3 billion cubic feet per day. Oil sales volumes in the second quarter averaged 198,000 barrels per day and natural gas liquids sales volumes averaged 66,000 barrels per day.
Prior to the federally mandated deepwater drilling moratorium in the Gulf of Mexico, the company continued to achieve positive drilling results, with successful appraisal wells in the Lucius and Vito fields. As previously announced, the second Lucius appraisal well encountered more than 650 net feet of oil pay in three zones, with one additional target yet to be tested. Anadarko operates Lucius with a 50-percent working interest. Also during the quarter, the second Vito appraisal well was drilled approximately one mile to the southwest of the original discovery. Drilling was halted due to the moratorium, prior to reaching the main objectives; however, the well encountered approximately 250 net feet of pay in a shallower Miocene reservoir. Anadarko holds a 20-percent working interest in Vito, which is operated by Shell Offshore Inc.
In West Africa, the Mahogany #5 appraisal well encountered 75 net feet of pay in Jubilee-equivalent sands. This was the final well in the East Jubilee appraisal area in the West Cape Three Points Block, where Anadarko holds a 30.9-percent working interest. Subsequent to the end of the second quarter, Anadarko and partners announced another significant discovery in the Deepwater Tano Block at the Owo prospect. The Owo-1 well encountered approximately 174 net feet of high-quality oil pay. The discovery continues to enhance the gross resource potential of the West African Cretaceous trend, where Anadarko holds an interest in more than 8 million gross acres spanning four countries’ offshore waters. The company plans to continue its active exploration and appraisal program of this trend through 2010 and 2011.
MEGA PROJECTS UPDATE
The company’s three sanctioned mega projects remain on schedule and on budget. The Kwame Nkrumah floating production, storage and offloading (FPSO) vessel arrived in Ghana at the Jubilee field in June and is now moored on location. The well completion program is under way, and Jubilee Phase I remains on track to deliver first production toward the end of this year. The Caesar/Tonga development program in the Gulf of Mexico also is on schedule for first production during the first half of 2011. Subsea facilities installation is under way, and all major topsides lifts were completed during the second quarter. Well completion activities are expected to begin, subject to regulatory approvals. The El Merk project in Algeria is approximately 50 percent complete, with startup expected to occur in late 2011.
DEEPWATER HORIZON EVENT UPDATE
During the second quarter, the Macondo well in the Gulf of Mexico, in which Anadarko holds a 25-percent non-operating interest, discovered hydrocarbon accumulations. During suspension operations, the well blew out, an explosion occurred on the Deepwater Horizon drilling rig and the rig sank, resulting in the deaths of 11 crew members and the release of hydrocarbons into the Gulf. As previously stated, Anadarko believes that, based on the publicly available information, testimonies and investigations to date, this tragedy was preventable and likely the result of the operator’s gross negligence and/or willful misconduct. A more detailed description of the potential liabilities related to this event are included in the company’s second-quarter 2010 report on Form 10-Q that will be filed with the U.S. Securities and Exchange Commission.
LIQUIDITY UPDATE
Anadarko’s producing assets continued to generate significant cash flow, and the company ended the quarter with approximately $3.4 billion of cash on hand. In addition, the company today announced it has received new bank commitments from a group of lenders led by J.P. Morgan for an aggregate $6.5 billion. The new commitments include a $5.0 billion senior secured five-year credit facility, which will replace the company’s existing $1.3 billion credit facility, and a $1.5 billion senior secured six-year term loan, which will be used to refinance approximately $1.3 billion of debt currently scheduled to mature in 2012.
“Our financial position is very strong,” said Hackett. “We generated discretionary cash flow of approximately $1.3 billion during the second quarter, and today’s announcement of new bank facilities further enhances our liquidity position. We believe this action is prudent in order to extend the maturity date of our credit facilities, replace near-term maturing debt, provide the ability to finance our ongoing business needs, and protect the interests of all of our stakeholders by providing ample access to additional capital, should the need arise.”
CONFERENCE CALL TOMORROW AT 9 A.M. CDT, 10 A.M. EDT
Anadarko will host a conference call on Wednesday, Aug. 4, at 9 a.m. Central Daylight Time (10 a.m. Eastern Daylight Time) to discuss second-quarter results, current operations and the company’s outlook for the remainder of 2010. The dial-in number is 888.680.0878 in the United States or 617.213.4855 internationally. The confirmation number is 39759023. 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 second-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 Exchange Act of 1934. While Anadarko believes that its expectations are based on reasonable assumptions as and when made, no assurance 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 following: the outcome of events in the Gulf of Mexico relating to the Macondo well; the Company’s ability to successfully defend its stated position under the Macondo joint operating agreement; the impact of the deepwater drilling moratorium and resulting legislative and regulatory changes on the Company’s Gulf of Mexico and International offshore operations; Anadarko’s ability to achieve its production targets, successfully manage its capital expenditures and to complete, test and produce the wells and prospects identified in this news release; and Anadarko’s ability to close on the $5.0 billion senior secured revolving credit facility that matures in five years and a $1.5 billion senior secured term-loan facility that matures in six years for which the Company has received commitments. Other factors that could impact the forward-looking statements are described in “Risk Factors” in the company’s 2009 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other public filings and press releases. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.
Anadarko Petroleum Corporation
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| Quarter Ended June 30, 2010 | ||||||||||||||||
| Before | After | Per Share | ||||||||||||||
| millions except per-share amounts | Tax | Tax | (diluted) | |||||||||||||
| Unrealized gains (losses) on derivatives, net* | $ | (305 | ) | $ | (195 | ) | (0.39 | ) | ||||||||
| Gains (losses) on divestitures, net | 2 | 1 | - | |||||||||||||
| Impairments | (115 | ) | (73 | ) | (0.15 | ) | ||||||||||
| Change in uncertain tax positions (FIN48) | - | (17 | ) | (0.03 | ) | |||||||||||
| $ | (418 | ) | $ | (284 | ) | $ | (0.57 | ) | ||||||||
| *For the quarter ended June 30, 2010, before-tax unrealized gains (losses) on derivatives, net includes $103 million related to commodity derivatives, $(406) million related to other derivatives, and $(2) million related to gathering, processing and marketing sales. | ||||||||||||||||
| Quarter Ended June 30, 2009 | ||||||||||||||||
| Before | After | Per Share | ||||||||||||||
| millions except per-share amounts | Tax | Tax | (diluted) | |||||||||||||
| Unrealized gains (losses) on derivatives, net* | $ | (467 | ) | $ | (298 | ) | (0.63 | ) | ||||||||
| Realized gains on interest rate swaps | 552 | 352 | 0.74 | |||||||||||||
| Gains (losses) on divestitures, net | 8 | 5 | 0.02 | |||||||||||||
| Impairments | (23 | ) | (15 | ) | (0.03 | ) | ||||||||||
| Other adjustments | (57 | ) | (37 | ) | (0.08 | ) | ||||||||||
| Change in uncertain tax positions (FIN48) | - | 32 | 0.07 | |||||||||||||
| $ | 13 | $ | 39 | $ | 0.09 | |||||||||||
| *For the quarter ended June 30, 2009, before-tax unrealized gains (losses) on derivatives, net includes $(266) million related to commodity derivatives, $(197) million related to other derivatives, and $(4) million related to gathering, processing and marketing sales. | ||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Measures | ||||||||||||||||
| Below are reconciliations of cash provided by operating activities (GAAP) to discretionary cash flow and free cash flow (non-GAAP), and net income (loss) attributable to common stockholders (GAAP) to adjusted net income (loss) (non-GAAP) as required under Regulation G of the Securities Exchange Act of 1934. 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 (loss) to evaluate the company’s operational trends and performance. | ||||||||||||||||
| Quarter Ended | Year to Date | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| millions | 2010 | 2009 | 2010 | 2009 | ||||||||||||
| Net cash provided by operating activities | $ | 1,566 | $ | 1,228 | $ | 2,883 | $ | 1,761 | ||||||||
| Add back: | ||||||||||||||||
| Change in accounts receivable | (32 | ) | 118 | (5 | ) | (138 | ) | |||||||||
| Change in accounts payable and accrued expenses | (52 | ) | (432 | ) | 229 | 157 | ||||||||||
| Change in other items - net | (204 | ) | 602 | (299 | ) | 468 | ||||||||||
| Discretionary cash flow from operations | $ | 1,278 | $ | 1,516 | $ | 2,808 | $ | 2,248 | ||||||||
| Anadarko Petroleum Corporation | ||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Measures | ||||||||||||||||
| June 30, 2010 | ||||||||||||||||
| Quarter | Year | |||||||||||||||
| millions | Ended | to Date | ||||||||||||||
| Discretionary cash flow from operations | $ | 1,278 | $ | 2,808 | ||||||||||||
| Less: Capital expenditures | 1,367 | 2,606 | ||||||||||||||
| Free cash flow | $ | (89 | ) | $ | 202 | |||||||||||
| Quarter Ended | Quarter Ended | |||||||||||||||
| June 30, 2010 | June 30, 2009 | |||||||||||||||
| After | Per Share | After | Per Share | |||||||||||||
| millions except per-share amounts | Tax | (diluted) | Tax | (diluted) | ||||||||||||
| Net income (loss) attributable to common stockholders | $ | (40 | ) | (0.08 | ) | $ | (226 | ) | (0.48 | ) | ||||||
| Less: Certain items affecting comparability | (284 | ) | (0.57 | ) | 39 | 0.09 | ||||||||||
| Adjusted net income (loss) | $ | 244 | $ | 0.49 | $ | (265 | ) | $ | (0.57 | ) | ||||||
| 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. | ||||||||||||||||
| June 30, | ||||||||||||||||
| millions | 2010 | |||||||||||||||
| Total debt | $ | 12,351 | ||||||||||||||
| Less: Cash and cash equivalents | 3,374 | |||||||||||||||
| Net debt | $ | 8,977 | ||||||||||||||
| Anadarko Petroleum Corporation (Unaudited) | |||||||||||||||||
| Quarter Ended | Year to Date | ||||||||||||||||
| Summary Financial Information | June 30, | June 30, | |||||||||||||||
| millions except per-share amounts | 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Consolidated Statements of Income | |||||||||||||||||
| Revenues and Other | |||||||||||||||||
| Gas sales | $ | 802 | $ | 663 | $ | 1,883 | $ | 1,534 | |||||||||
| Oil and condensate sales | 1,338 | 914 | 2,840 | 1,550 | |||||||||||||
| Natural-gas-liquids sales | 235 | 116 | 509 | 199 | |||||||||||||
| Gathering, processing and marketing sales | 188 | 201 | 461 | 362 | |||||||||||||
| Gains (losses) on divestitures and other, net | 41 | 19 | 50 | 64 | |||||||||||||
| Total | 2,604 | 1,913 | 5,743 | 3,709 | |||||||||||||
| Costs and Expenses | |||||||||||||||||
| Oil and gas operating | 196 | 218 | 383 | 459 | |||||||||||||
| Oil and gas transportation and other* | 196 | 184 | 387 | 358 | |||||||||||||
| Exploration | 198 | 288 | 353 | 589 | |||||||||||||
| Gathering, processing and marketing | 149 | 183 | 332 | 318 | |||||||||||||
| General and administrative | 203 | 226 | 413 | 435 | |||||||||||||
| Depreciation, depletion and amortization | 902 | 933 | 1,883 | 1,739 | |||||||||||||
| Other taxes | 268 | 180 | 569 | 330 | |||||||||||||
| Impairments | 115 | 23 | 127 | 74 | |||||||||||||
| Total | 2,227 | 2,235 | 4,447 | 4,302 | |||||||||||||
| Operating Income (Loss) | 377 | (322 | ) | 1,296 | (593 | ) | |||||||||||
| Other (Income) Expense | |||||||||||||||||
| Interest expense | 200 | 201 | 424 | 383 | |||||||||||||
| (Gains) losses on commodity derivatives, net | (264 | ) | 168 | (852 | ) | 369 | |||||||||||
| (Gains) losses on other derivatives, net | 406 | (348 | ) | 435 | (446 | ) | |||||||||||
| Other (income) expense, net | 14 | 8 | 23 | (3 | ) | ||||||||||||
| Total | 356 | 29 | 30 | 303 | |||||||||||||
| Income (Loss) Before Income Taxes | 21 | (351 | ) | 1,266 | (896 | ) | |||||||||||
| Income Tax Expense (Benefit) | 49 | (135 | ) | 566 | (349 | ) | |||||||||||
| Net Income (Loss) | $ | (28 | ) | $ | (216 | ) | $ | 700 | $ | (547 | ) | ||||||
| Net Income Attributable to Noncontrolling Interests | 12 | 10 | 24 | 17 | |||||||||||||
| Net Income (Loss) Attributable to Common Stockholders | $ | (40 | ) | $ | (226 | ) | $ | 676 | $ | (564 | ) | ||||||
| Per Common Share: | |||||||||||||||||
| Net income (loss) attributable to common stockholders - basic | $ | (0.08 | ) | $ | (0.48 | ) | $ | 1.36 | $ | (1.21 | ) | ||||||
| Net income (loss) attributable to common stockholders - diluted | $ | (0.08 | ) | $ | (0.48 | ) | $ | 1.35 | $ | (1.21 | ) | ||||||
| Average Number of Common Shares Outstanding - Basic | 495 | 477 | 494 | 468 | |||||||||||||
| Average Number of Common Shares Outstanding - Diluted | 495 | 477 | 496 | 468 | |||||||||||||
| Exploration Expense | |||||||||||||||||
| Dry hole expense | $ | 17 | $ | 93 | $ | 42 | $ | 214 | |||||||||
| Impairments of unproved properties | 114 | 131 | 202 | 238 | |||||||||||||
| Geological and geophysical expense | 25 | 17 | 28 | 51 | |||||||||||||
| Exploration overhead and other | 42 | 47 | 81 | 86 | |||||||||||||
| Total | $ | 198 | $ | 288 | $ | 353 | $ | 589 | |||||||||
* For the three and six months ended June 30, 2010, oil and gas transportation and other expenses includes $12 million related to force majeure invoked on contracted deepwater drilling rigs in the Gulf of Mexico. | |||||||||||||||||
| Anadarko Petroleum Corporation (Unaudited) | |||||||||||||||||||
| Quarter Ended | Year to Date | ||||||||||||||||||
| Summary Financial Information | June 30, | June 30, | |||||||||||||||||
| millions | 2010 | 2009 | 2010 | 2009 | |||||||||||||||
| Cash Flow from Operating Activities | |||||||||||||||||||
| Net income (loss) | $ | (28 | ) | $ | (216 | ) | $ | 700 | $ | (547 | ) | ||||||||
| Depreciation, depletion and amortization | 902 | 933 | 1,883 | 1,739 | |||||||||||||||
| Deferred income taxes | (251 | ) | 57 | (97 | ) | (242 | ) | ||||||||||||
| Dry hole expense and impairments of unproved properties | 131 | 224 | 244 | 452 | |||||||||||||||
| Impairments | 115 | 23 | 127 | 74 | |||||||||||||||
| (Gains) losses on divestitures, net | (2 | ) | (8 | ) | (15 | ) | (18 | ) | |||||||||||
| Unrealized (gains) losses on derivatives | 305 | 467 | (240 | ) | 707 | ||||||||||||||
| Other noncash items | 106 | 36 | 206 | 83 | |||||||||||||||
| Discretionary Cash Flow from Operations | 1,278 | 1,516 | 2,808 | 2,248 | |||||||||||||||
| (Increase) decrease in accounts receivable | 32 | (118 | ) | 5 | 138 | ||||||||||||||
| Increase (decrease) in accounts payable and accrued expenses | 52 | 432 | (229 | ) | (157 | ) | |||||||||||||
| Other items - net | 204 | (602 | ) | 299 | (468 | ) | |||||||||||||
| Net cash provided by operating activities | $ | 1,566 | $ | 1,228 | $ | 2,883 | $ | 1,761 | |||||||||||
| Capital Expenditures | $ | 1,367 | $ | 914 | $ | 2,606 | $ | 2,021 | |||||||||||
| June 30, | December 31, | ||||||||||||||||||
| 2010 | 2009 | ||||||||||||||||||
| Condensed Balance Sheets | |||||||||||||||||||
| Cash and cash equivalents | $ | 3,374 | $ | 3,531 | |||||||||||||||
| Other current assets | 2,700 | 2,552 | |||||||||||||||||
| Net properties and equipment | 37,619 | 37,204 | |||||||||||||||||
| Other assets | 1,541 | 1,514 | |||||||||||||||||
| Goodwill and other intangible assets | 5,313 | 5,322 | |||||||||||||||||
| Total Assets | $ | 50,547 | $ | 50,123 | |||||||||||||||
| Current debt | $ | 909 | $ | - | |||||||||||||||
| Other current liabilities | 3,760 | 3,824 | |||||||||||||||||
| Long-term debt | 10,093 | 11,149 | |||||||||||||||||
| Midstream subsidiary note payable to a related party | 1,349 | 1,599 | |||||||||||||||||
| Other long-term liabilities | 13,231 | 13,136 | |||||||||||||||||
| Stockholders' equity | 20,655 | 19,928 | |||||||||||||||||
| Noncontrolling interests | 550 | 487 | |||||||||||||||||
| Total Liabilities and Equity | $ | 50,547 | $ | 50,123 | |||||||||||||||
| Capitalization | |||||||||||||||||||
| Total debt | $ | 12,351 | $ | 12,748 | |||||||||||||||
| Stockholders' equity | 20,655 | 19,928 | |||||||||||||||||
| Total | $ | 33,006 | $ | 32,676 | |||||||||||||||
| Capitalization Ratios | |||||||||||||||||||
| Total debt | 37 | % | 39 | % | |||||||||||||||
| Stockholders' equity | 63 | % | 61 | % | |||||||||||||||
| Anadarko Petroleum Corporation (Unaudited) | ||||||||||||||||||||||
| Sales Volumes and Prices | ||||||||||||||||||||||
| Average Daily Volumes | Sales Volumes | Average Sales Price | ||||||||||||||||||||
| Crude Oil & | Crude Oil & | Crude Oil & | ||||||||||||||||||||
| Natural Gas | Condensate | NGLs | Natural Gas | Condensate | NGLs | Natural Gas | Condensate | NGLs | ||||||||||||||
| MMcf/d | MBbls/d | MBbls/d | Bcf | MMBbls | MMBbls | Per Mcf | Per Bbl | Per Bbl | ||||||||||||||
| Quarter Ended June 30, 2010 | ||||||||||||||||||||||
| United States | 2,324 | 130 | 66 | 211 | 12 | 6 | $ | 3.79 | $ | 73.89 | $ | 39.05 | ||||||||||
| Algeria | 53 | 5 | 75.51 | |||||||||||||||||||
| Other International | 15 | 1 | 76.18 | |||||||||||||||||||
| Total | 2,324 | 198 | 66 | 211 | 18 | 6 | $ | 3.79 | $ | 74.49 | $ | 39.05 | ||||||||||
| Quarter Ended June 30, 2009 | ||||||||||||||||||||||
| United States | 2,336 | 111 | 46 | 213 | 9 | 4 | $ | 3.12 | $ | 55.31 | $ | 27.64 | ||||||||||
| Algeria | 52 | 5 | 56.29 | |||||||||||||||||||
| Other International | 19 | 2 | 53.88 | |||||||||||||||||||
| Total | 2,336 | 182 | 46 | 213 | 16 | 4 | $ | 3.12 | $ | 55.44 | $ | 27.64 | ||||||||||
| Year to Date June 30, 2010 | ||||||||||||||||||||||
| United States | 2,358 | 133 | 66 | 427 | 24 | 12 | $ | 4.41 | $ | 74.45 | $ | 42.80 | ||||||||||
| Algeria | 61 | 11 | 75.81 | |||||||||||||||||||
| Other International | 15 | 3 | 74.68 | |||||||||||||||||||
| Total | 2,358 | 209 | 66 | 427 | 38 | 12 | $ | 4.41 | $ | 74.86 | $ | 42.80 | ||||||||||
| Year to Date June 30, 2009 | ||||||||||||||||||||||
| United States | 2,325 | 106 | 43 | 421 | 19 | 8 | $ | 3.64 | $ | 47.23 | $ | 25.52 | ||||||||||
| Algeria | 55 | 10 | 50.61 | |||||||||||||||||||
| Other International | 16 | 3 | 47.07 | |||||||||||||||||||
| Total | 2,325 | 177 | 43 | 421 | 32 | 8 | $ | 3.64 | $ | 48.26 | $ | 25.52 | ||||||||||
Average Daily Volumes MBOE/d | Sales Volumes MMBOE | |||||||
| Quarter Ended June 30, 2010 | 651 | 59 | ||||||
| Quarter Ended June 30, 2009 | 617 | 56 | ||||||
| Year to Date June 30, 2010 | 668 | 121 | ||||||
| Year to Date June 30, 2009 | 608 | 110 | ||||||
Sales Revenue and Commodity Derivatives | |||||||||||||||||||||||||
| Sales | Commodity Derivatives Gain (Loss) | ||||||||||||||||||||||||
| Crude Oil & | Natural Gas | Crude Oil & Condensate | |||||||||||||||||||||||
| millions | Natural Gas | Condensate | NGLs | Realized | Unrealized | Realized | Unrealized | ||||||||||||||||||
| Quarter Ended June 30, 2010 | |||||||||||||||||||||||||
| United States | $ | 802 | $ | 872 | $ | 235 | $ | 163 | $ | (166 | ) | $ | (4 | ) | $ | 261 | |||||||||
| Algeria | 364 | 2 | 8 | ||||||||||||||||||||||
| Other International | 102 | ||||||||||||||||||||||||
| Total | $ | 802 | $ | 1,338 | $ | 235 | $ | 163 | $ | (166 | ) | $ | (2 | ) | $ | 269 | |||||||||
| Quarter Ended June 30, 2009 | |||||||||||||||||||||||||
| United States | $ | 663 | $ | 557 | $ | 116 | $ | 91 | $ | (100 | ) | $ | 5 | $ | (132 | ) | |||||||||
| Algeria | 264 | 2 | (34 | ) | |||||||||||||||||||||
| Other International | 93 | ||||||||||||||||||||||||
| Total | $ | 663 | $ | 914 | $ | 116 | $ | 91 | $ | (100 | ) | $ | 7 | $ | (166 | ) | |||||||||
| Year to Date June 30, 2010 | |||||||||||||||||||||||||
| United States | $ | 1,883 | $ | 1,807 | $ | 509 | $ | 182 | $ | 400 | $ | (5 | ) | $ | 256 | ||||||||||
| Algeria | 834 | 5 | 14 | ||||||||||||||||||||||
| Other International | 199 | ||||||||||||||||||||||||
| Total | $ | 1,883 | $ | 2,840 | $ | 509 | $ | 182 | $ | 400 | $ | - | $ | 270 | |||||||||||
| Year to Date June 30, 2009 | |||||||||||||||||||||||||
| United States | $ | 1,534 | $ | 913 | $ | 199 | $ | 176 | $ | (377 | ) | $ | 33 | $ | (150 | ) | |||||||||
| Algeria | 501 | 12 | (63 | ) | |||||||||||||||||||||
| Other International | 136 | ||||||||||||||||||||||||
| Total | $ | 1,534 | $ | 1,550 | $ | 199 | $ | 176 | $ | (377 | ) | $ | 45 | $ | (213 | ) | |||||||||
| Anadarko Petroleum Corporation Financial and Operating External Guidance As of August 3, 2010 | |||||||||||||||||||
| 3rd Qtr | Total Year | ||||||||||||||||||
| Guidance | Guidance | ||||||||||||||||||
| Units | Units | ||||||||||||||||||
| Total Sales (MMBOE) | 55 | - | 58 | 232 | - | 236 | |||||||||||||
| Crude Oil (MBbl/d): | 184 | - | 192 | 197 | - | 200 | |||||||||||||
| United States | 117 | - | 122 | 126 | - | 127 | |||||||||||||
| Algeria | 54 | - | 56 | 56 | - | 57 | |||||||||||||
| Other International | 13 | - | 14 | 15 | - | 16 | |||||||||||||
| Natural Gas (MMcf/d): | |||||||||||||||||||
| United States | 2,150 | - | 2,225 | 2,260 | - | 2,300 | |||||||||||||
| Natural Gas Liquids (MBbl/d): | |||||||||||||||||||
| United States | 58 | - | 62 | 62 | - | 64 | |||||||||||||
| $/ Unit | $/ Unit | ||||||||||||||||||
| Price Differentials vs NYMEX (w/o hedges) | |||||||||||||||||||
| Crude Oil ($/Bbl): | (4.00 | ) | - | (6.00 | ) | (3.00 | ) | - | (4.00 | ) | |||||||||
| United States | (3.00 | ) | - | (5.00 | ) | (3.50 | ) | - | (5.50 | ) | |||||||||
| Algeria | 1.00 | - | (1.00 | ) | (1.00 | ) | - | (2.00 | ) | ||||||||||
| Other International | (4.00 | ) | - | (9.00 | ) | (4.00 | ) | - | (8.00 | ) | |||||||||
| Natural Gas ($/Mcf): | |||||||||||||||||||
| United States | (0.25 | ) | - | (0.60 | ) | (0.25 | ) | - | (0.50 | ) | |||||||||
| Anadarko Petroleum Corporation Financial and Operating External Guidance As of August 3, 2010 | ||||||||||||||||||
| 3rd Qtr | Total Year | |||||||||||||||||
| Guidance | Guidance | |||||||||||||||||
| $MM | $MM | |||||||||||||||||
| Other Revenues: | ||||||||||||||||||
| Marketing and Gathering Margin | 35 | - | 45 | 175 | - | 200 | ||||||||||||
| Minerals and Other | 15 | - | 25 | 50 | - | 75 | ||||||||||||
| Costs and Expenses: | ||||||||||||||||||
| $ / Boe | $ / Boe | |||||||||||||||||
| Oil & Gas Direct Operating | 3.75 | - | 4.25 | 3.75 | - | 4.00 | ||||||||||||
| Oil & Gas Transportation/Other | 3.25 | - | 3.50 | 3.25 | - | 3.35 | ||||||||||||
| Depreciation, Depletion and Amortization | 15.25 | - | 15.75 | 15.25 | - | 15.75 | ||||||||||||
| Production Taxes (% of Revenue) | 10.0 | % | - | 12.0 | % | 10.5 | % | - | 11.5 | % | ||||||||
| $MM | $MM | |||||||||||||||||
| General and Administrative | 225 | - | 235 | 910 | - | 940 | ||||||||||||
| Exploration Expense | ||||||||||||||||||
| Non-Cash | 190 | - | 210 | 725 | - | 775 | ||||||||||||
| Cash | 70 | - | 80 | 275 | - | 300 | ||||||||||||
| Interest Expense (net) | 175 | - | 185 | 760 | - | 785 | ||||||||||||
| Other (Income) Expense | (5 | ) | - | 10 | (10 | ) | - | 25 | ||||||||||
| Tax Rate (all current) | ||||||||||||||||||
| Algeria | 55 | % | - | 65 | % | 55 | % | - | 65 | % | ||||||||
| Rest of Company | 20 | % | - | 40 | % | 20 | % | - | 40 | % | ||||||||
| Avg. Shares Outstanding (MM) | ||||||||||||||||||
| Basic | 495 | - | 496 | 493 | - | 495 | ||||||||||||
| Diluted | 497 | - | 498 | 495 | - | 497 | ||||||||||||
| $MM | $MM | |||||||||||||||||
| Capital Investment: | ||||||||||||||||||
| Capital Expenditures | 1,270 | - | 1,465 | 5,175 | - | 5,470 | ||||||||||||
| Capitalized Interest | 30 | - | 35 | 125 | - | 130 | ||||||||||||
| Anadarko Petroleum Corporation Commodity Hedge Positions (Excluding Natural Gas Basis) As of August 3, 2010 | ||||||||||||
Volume | Weighted Average Price per MMBtu | |||||||||||
| 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 | |||||||||||
| 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 | ||||||||||||||||
| 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 August 3, 2010 | ||||||||
| ||||||||
| ||||||||
Volume | Price per | |||||||
| 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 August 3, 2010 (Only shown through 2012) | ||||||||
| Daily Volume (MMMBtus) | ||||||||
| by Pricing Point | ||||||||
| Delivery/Pricing Point | ||||||||
| 2010 | ||||||||
| Mid Continent | 491 | |||||||
| West Coast | 77 | |||||||
| Mid West** | ||||||||
| 568 | ||||||||
| 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