| Statement Of Income Alternative (USD $) | ||||
| In Millions, except Per Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Revenues and Other | ||||
| Gas sales | $653 | $1,495 | $1,333 | $2,694 |
| Oil and condensate sales | 756 | 344 | 1,382 | 1,694 |
| Natural gas liquids sales | 116 | 258 | 199 | 459 |
| Gathering, processing and marketing sales | 201 | 319 | 362 | 587 |
| Gains (losses) on divestitures and other, net | 19 | 370 | 64 | 330 |
| Total | 1,745 | 2,786 | 3,340 | 5,764 |
| Costs and Expenses | ||||
| Oil and gas operating | 239 | 259 | 501 | 504 |
| Oil and gas transportation and other | 163 | 130 | 316 | 260 |
| Exploration | 288 | 264 | 589 | 507 |
| Gathering, processing and marketing | 183 | 222 | 318 | 414 |
| General and administrative | 226 | 199 | 435 | 403 |
| Depreciation, depletion and amortization | 933 | 784 | 1,739 | 1,594 |
| Other taxes | 180 | 523 | 330 | 882 |
| Impairments | 23 | 11 | 74 | 11 |
| Total | 2,235 | 2,392 | 4,302 | 4,575 |
| Operating Income (Loss) | (490) | 394 | (962) | 1,189 |
| Other (Income) Expense | ||||
| Interest expense | 203 | 151 | 384 | 378 |
| Other (income) expense, net | (344) | (14) | (452) | (26) |
| Total | (141) | 137 | (68) | 352 |
| Income (Loss) from Continuing Operations Before Income Taxes | (349) | 257 | (894) | 837 |
| Income Tax Expense (Benefit) | (135) | 236 | (349) | 580 |
| Income (Loss) from Continuing Operations | (214) | 21 | (545) | 257 |
| Income (Loss) from Discontinued Operations, net of taxes | (2) | 7 | (2) | 57 |
| Net Income (Loss) | (216) | 28 | (547) | 314 |
| Net Income Attributable to Noncontrolling Interests | 10 | 5 | 17 | 5 |
| Net Income (Loss) Attributable to Common Stockholders | (226) | 23 | (564) | 309 |
| Amounts Attributable to Common Stockholders | ||||
| Income (loss) from continuing operations attributable to common stockholders | (224) | 16 | (562) | 252 |
| Income (loss) from discontinued operations, net of taxes | (2) | 7 | (2) | 57 |
| Net Income (Loss) Attributable to Common Stockholders | ($226) | $23 | ($564) | $309 |
| Per Common Share (amounts attributable to common stockholders): | ||||
| Income (loss) from continuing operations attributable to common stockholders - basic | -0.47 | 0.03 | -1.2 | 0.53 |
| Income (loss) from continuing operations attributable to common stockholders - diluted | -0.47 | 0.03 | -1.2 | 0.53 |
| Income (loss) from discontinued operations, net of taxes - basic | -0.01 | 0.02 | -0.01 | 0.12 |
| Income (loss) from discontinued operations, net of taxes - diluted | -0.01 | 0.02 | -0.01 | 0.12 |
| Net income (loss) attributable to common stockholders - basic | -0.48 | 0.05 | -1.21 | 0.65 |
| Net income (loss) attributable to common stockholders - diluted | -0.48 | 0.05 | -1.21 | 0.65 |
| Average Number of Common Shares Outstanding - Basic | 477 | 468 | 468 | 468 |
| Average Number of Common Shares Outstanding - Diluted | 477 | 469 | 468 | 469 |
| Dividends (per Common Share) | 0.09 | 0.09 | 0.18 | 0.18 |
| Statement Of Financial Position Classified (USD $) | ||
| In Millions | Jun. 30, 2009
| Dec. 31, 2008
|
| Current Assets | ||
| Cash and cash equivalents | $3,527 | $2,360 |
| Accounts receivable, net of allowance: | ||
| Customers | 769 | 791 |
| Others | 769 | 896 |
| Other current assets | 581 | 1,048 |
| Total | 5,646 | 5,095 |
| Properties and Equipment | ||
| Cost | 48,443 | 47,073 |
| Less accumulated depreciation, depletion and amortization | 11,534 | 10,026 |
| Net properties and equipment | 36,909 | 37,047 |
| Other Assets | 1,485 | 1,368 |
| Goodwill and Other Intangible Assets | 5,332 | 5,413 |
| Total Assets | 49,372 | 48,923 |
| Current Liabilities | ||
| Accounts payable | 2,635 | 3,166 |
| Accrued expenses | 787 | 898 |
| Current debt | 0 | 1,472 |
| Total | 3,422 | 5,536 |
| Long-term Debt | 11,134 | 9,128 |
| Midstream Subsidiary Note Payable to a Related Party | 1,739 | 1,739 |
| Other Long-term Liabilities | ||
| Deferred income taxes | 9,857 | 9,974 |
| Other | 3,259 | 3,390 |
| Total | 13,116 | 13,364 |
| Stockholders' Equity | ||
| Common stock, par value $0.10 per share (1.0 billion shares authorized, 502.5 million and 471.6 million shares issued as of June 30, 2009 and December 31, 2008, respectively) | 50 | 47 |
| Paid-in capital | 7,123 | 5,696 |
| Retained earnings | 13,528 | 14,179 |
| Treasury stock (12.0 million and 11.7 million shares as of June 30, 2009 and December 31, 2008, respectively) | (695) | (686) |
| Accumulated other comprehensive income (loss): | ||
| Gains (losses) on derivative instruments | (106) | (118) |
| Foreign currency translation adjustments | (1) | (1) |
| Pension and other postretirement plans | (302) | (322) |
| Total | (409) | (441) |
| Total Stockholders' Equity | 19,597 | 18,795 |
| Noncontrolling Interests | 364 | 361 |
| Total Equity | 19,961 | 19,156 |
| Commitments and Contingencies (Note 10) | 0 | 0 |
| Total Liabilities and Equity | $49,372 | $48,923 |
| Statement Of Financial Position Classified (Parenthetical) (USD $) | ||
| Jun. 30, 2009
| Dec. 31, 2008
| |
| Common stock, par value | 0.1 | 0.1 |
| Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
| Common stock, shares issued | 502,500,000 | 471,600,000 |
| Treasury stock, shares | 12,000,000 | 11,700,000 |
| Statement Of Shareholders Equity And Other Comprehensive Income (USD $) | |||||||||||||||||||
| In Millions | Common Stock
| Paid-in Capital
| Retained Earnings
| Treasury Stock
| Accumulated Other Comprehensive Income (Loss)
| Total Stockholders' Equity
| Noncontrolling Interests
| Total
| |||||||||||
| Beginning Balance at Dec. 31, 2008 | $47 | $5,696 | $14,179 | ($686) | ($441) | $18,795 | $361 | $19,156 | |||||||||||
| Net income (loss) | (564) | (564) | 17 | (547) | |||||||||||||||
| Common stock issued | 3 | 1,427 | 1,430 | 1,430 | |||||||||||||||
| Dividends - common | (87) | (87) | (87) | ||||||||||||||||
| Repurchase of common stock | (9) | (9) | (9) | ||||||||||||||||
| Distributions to noncontrolling interest owners | 0 | (14) | (14) | ||||||||||||||||
| Previously deferred gains (losses) on derivative instruments | 12 | 12 | 12 | [1] | |||||||||||||||
| Pension and other postretirement plans adjustments | 20 | 20 | 20 | [2] | |||||||||||||||
| Ending Balance at Jun. 30, 2009 | $50 | $7,123 | $13,528 | ($695) | ($409) | $19,597 | $364 | $19,961 | |||||||||||
| [1]net of income tax benefit (expense) of $(3) million and $(1) million for the three months ended June 30, 2009 and 2008, respectively, and $(6) million and $(3) million for the six months ended June 30, 2009 and 2008, respectively. | |||||||||||||||||||
| [2]net of income tax benefit (expense) of $(7) million and $(1) million for the three months ended June 30, 2009 and 2008, respectively, and $(12) million and $(2) million for the six months ended June 30, 2009 and 2008, respectively. | |||||||||||||||||||
| Statement Of Other Comprehensive Income (USD $) | |||||||||||||||||||
| In Millions | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 | |||||||||||||||
| Net income (loss) | ($216) | $28 | ($547) | $314 | |||||||||||||||
| Other Comprehensive Income (Loss), net of taxes | |||||||||||||||||||
| Previously deferred gains (losses) on derivative instruments | 6 | [1] | 2 | [1] | 12 | [1] | 6 | [1] | |||||||||||
| Pension and other postretirement plans adjustments | 12 | [2] | 1 | [2] | 20 | [2] | 4 | [2] | |||||||||||
| Total | 18 | 3 | 32 | 10 | |||||||||||||||
| Comprehensive Income (Loss) | (198) | 31 | (515) | 324 | |||||||||||||||
| Comprehensive Income Attributable to Noncontrolling Interests | 10 | 5 | 17 | 5 | |||||||||||||||
| Comprehensive Income (Loss) Attributable to Common Stockholders | ($208) | $26 | ($532) | $319 | |||||||||||||||
| [1]net of income tax benefit (expense) of $(3) million and $(1) million for the three months ended June 30, 2009 and 2008, respectively, and $(6) million and $(3) million for the six months ended June 30, 2009 and 2008, respectively. | |||||||||||||||||||
| [2]net of income tax benefit (expense) of $(7) million and $(1) million for the three months ended June 30, 2009 and 2008, respectively, and $(12) million and $(2) million for the six months ended June 30, 2009 and 2008, respectively. | |||||||||||||||||||
| Statement Of Cash Flows Indirect (USD $) | ||
| In Millions | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Cash Flow from Operating Activities | ||
| Net income (loss) | ($547) | $314 |
| Less income (loss) from discontinued operations, net of taxes | (2) | 57 |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
| Depreciation, depletion and amortization | 1,739 | 1,594 |
| Deferred income taxes | (242) | 37 |
| Dry hole expense and impairments of unproved properties | 452 | 332 |
| Impairments | 74 | 11 |
| (Gains) losses on divestitures, net | (18) | (164) |
| Unrealized (gains) losses on derivatives | 707 | 2,091 |
| Other non-cash items | 119 | 23 |
| Changes in assets and liabilities: | ||
| (Increase) decrease in accounts receivable | 138 | (648) |
| Increase (decrease) in accounts payable and accrued expenses | (157) | (823) |
| Other items - net | (506) | (206) |
| Net cash provided by (used in) operating activities | 1,761 | 2,504 |
| Cash Flow from Investing Activities | ||
| Additions to properties and equipment and dry hole costs | (2,120) | (2,204) |
| Divestitures of properties and equipment and other assets | 61 | 664 |
| Other - net | (15) | (114) |
| Net cash provided by (used in) investing activities | (2,074) | (1,654) |
| Cash Flow from Financing Activities | ||
| Borrowings, net of issuance costs | 1,975 | 0 |
| Borrowings from affiliates, net of issuance costs | 0 | 1 |
| Repayments of debt | (1,470) | (1,396) |
| Repayments on midstream subsidiary note payable | 0 | (330) |
| Increase (decrease) in accounts payable, banks | (257) | 39 |
| Dividends paid | (87) | (87) |
| Settlement of derivatives with a financing element | 0 | (1) |
| Repurchase of common stock | (9) | (4) |
| Repurchase and retirement of preferred stock | 0 | (45) |
| Issuance of common stock | 1,342 | 15 |
| Sale of subsidiary interests | 0 | 343 |
| Distributions to noncontrolling interest owners | (14) | 0 |
| Net cash provided by (used in) financing activities | 1,480 | (1,465) |
| Net Increase (Decrease) in Cash and Cash Equivalents | 1,167 | (615) |
| Cash and Cash Equivalents at Beginning of Period | 2,360 | 1,268 |
| Cash and Cash Equivalents at End of Period | $3,527 | $653 |
| Notes to Financial Statements | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| 1. Summary of Significant Accounting Policies | 1.Summary of Significant Accounting Policies GeneralAnadarko Petroleum Corporation is engaged in the exploration, development, production, gathering, processing and marketing of natural gas, crude oil, condensate and natural gas liquids (NGLs). The Company also participates in the hard minerals business through its ownership interests in non-operated joint ventures and royalty arrangements. The terms Anadarko and Company refer to Anadarko Petroleum Corporation and its consolidated subsidiaries. The information, as furnished herein, reflects all normal recurring adjustments that are, in the opinion of management, necessary for the fair presentation of the Companys consolidated financial position as of June30, 2009 and December31, 2008, the consolidated statements of income and comprehensive income for the three and six months ended June30, 2009 and 2008, cash flows for the six months ended June30, 2009 and 2008, and the consolidated statement of equity for the six months ended June30, 2009. Certain amounts for prior periods have been reclassified to conform to the current-period presentation. In preparing financial statements in accordance with accounting principles generally accepted in the United States, management makes informed judgments and estimates that affect both the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the periods reported. Management reviews its estimates periodically, including those related to the carrying value of properties and equipment, proved reserves, goodwill, intangible assets, asset retirement obligations, litigation reserves, environmental liabilities, pension liabilities and costs, income taxes and fair values. Changes in facts and circumstances or additional information may result in revised estimates and actual results may differ from these estimates. The accompanying financial statements and notes should be read in conjunction with the Companys 2008 Annual Report on Form 10-K. Oil and Gas PropertiesThe Company uses the successful efforts method of accounting for oil and gas properties. The Company adopted the successful efforts method of accounting in the third quarter of 2007 and all periods presented reflect the successful efforts method of accounting. EarningsPerShareThe Companys basic earnings per share (EPS) amounts have been computed based on the average number of shares of common stock outstanding for the period and include the effect of any participating securities as appropriate. Diluted EPS includes the effect of the Companys outstanding stock options, restricted stock awards, restricted stock units and performance-based stock awards if the inclusion of these items is dilutive. Diluted net loss per share for the three and six months ended June30, 2009, does not assume an increase in the average number of shares outstanding from stock option exercises, unvested restricted stock or similar sources because the inclusion of shares attributable to these sources would have an anti-dilutive effect. See Note 9. Changes in Accounting PrinciplesThe Company adopted Statement of Financial Accoun |
| 2. Acquisitions, Divestitures and Other | 2.Acquisitions, Divestitures and Other Gains (Losses) on Divestitures and OtherFor the six months ended June30, 2008, gains (losses) on divestitures and other, net includes a net $82 million ($52 million after tax) charge related to corrections resulting from an analysis of property records after the adoption of the successful efforts method of accounting. This net amount includes a charge of $163 million related to 2007. Management concluded that this misstatement was not material to 2007 interim and annual results, nor to the 2008 period, and corrected the error in the first quarter of 2008. |
| 3. Inventories | 3.Inventories The major classes of inventories, included in other current assets, are as follows: millions June30, 2009 December31, 2008 Crude oil and NGLs $ 81 $ 89 Natural gas 50 51 Total $ 131 $ 140 |
| 4. Properties and Equipment | 4.PropertiesandEquipment Suspended Exploratory Drilling CostsThe Companys capitalized suspended well costs at June30, 2009 and December31, 2008 were $473 million and $279 million, respectively. The $194 million increase primarily related to drilling in the Gulf of Mexico and Ghana. For the six months ended June30, 2009, $14 million of exploratory well costs previously capitalized as suspended well costs for greater than one year were charged to dry hole expense. Also, for the six months ended June30, 2009, $36 million of capitalized suspended well costs were reclassified to proved properties. Management believes projects with suspended exploratory drilling costs exhibit sufficient quantities of hydrocarbons to justify potential development and is actively pursuing efforts to assess whether reserves can be attributed to these areas. If additional information becomes available that raises substantial doubt as to the economic or operational viability of any of these projects, the associated costs are expensed at that time. |
| 5. Impairments | 5.Impairments For the three and six months ended June30, 2009, the Company recognized impairments of $22 million and $69 million, respectively, related to certain transportation contracts included in intangible assets, due to changes in price differentials at specific locations, and also recognized impairments of $1 million and $5 million, respectively, related to long-lived assets due to the current economic and commodity price environment. These assets were impaired to fair value. The transportation contract impairments relate to the Marketing segment and the long-lived asset impairments relate to the Oil and Gas Exploration and Production segment. The $69 million impairment of transportation contracts reduced the net book value of these contracts to $16 million. Fair value was determined using a discounted cash flow approach, incorporating market-based inputs. The Company determined that this represented a Level 2 fair value measurement. Amortization expense for transportation contracts for the six months ended June30, 2009 was $10 million. The estimated amortization expense for the transportation contracts for the remainder of 2009 is $5 million, and for the next three years is $4 million, $4 million and $3 million, respectively. |
| 6. Investments | 6.Investments Noncontrolling Mandatorily Redeemable InterestsIn 2007, Anadarko contributed certain of its oil and gas properties and gathering and processing assets with an aggregate fair value of approximately $2.9 billion at the time of the contribution to newly formed unconsolidated entities in exchange for noncontrolling mandatorily redeemable interests in those entities. Subsequent to their formation, the investee entities loaned Anadarko an aggregate of $2.9 billion. The Company accounts for its investment in these entities under the equity method of accounting. At June30, 2009, the carrying amount of these investments was $2.79 billion, while the carrying amount of notes payable to affiliates was $2.85 billion. Anadarko has legal right of setoff and intends to net-settle its obligations under each of the notes payable to the investees with the distributable value of its interest in the corresponding investee. Accordingly, the investments and the obligations are presented net on the consolidated balance sheet with the excess of the notes payable to affiliates over the aggregate investment carrying amount included in other long-term liabilities other for all periods presented. Other income (expense) for the three and six months ended June30, 2009 includes interest expense on the notes payable to the investee entities of $(16) million and $(36) million, respectively, and equity in earnings from Anadarkos investments in the investee entities of $14 million and $23 million, respectively. Other income (expense) for the three and six months ended June30, 2008 includes interest expense on the notes payable to the investee entities of $(28) million and $(69) million, respectively, and equity in earnings from Anadarkos investments in the investee entities of $30 million and $74 million, respectively. |
| 7. Derivative Instruments | 7.Derivative Instruments Objective StrategyThe Company is exposed to commodity price and interest rate risk, and management considers it prudent to periodically reduce the Companys exposure to cash-flow variability resulting from commodity price changes and interest rate fluctuations. Accordingly, the Company enters into certain derivative instruments in order to manage its exposure to these risks. Futures, swaps and options are used to manage the Companys exposure to commodity price risk inherent in the Companys oil and gas production and gas processing operations (Oil and Gas Production/Processing Derivative Activities). Futures contracts and commodity swap agreements are used to fix the price of expected future oil and gas sales at major industry trading locations, such as Henry Hub, Louisiana for gas and Cushing, Oklahoma for oil. Basis swaps are used to fix or float the price differential between the product price at one market location versus another. Options are used to establish a floor and a ceiling price (collar) for expected future oil and gas sales. Derivative instruments are also used to manage commodity price risk inherent in customer pricing requirements and to fix margins on the future sale of natural gas and NGLs from the Companys leased storage facilities (Marketing and Trading Derivative Activities). In addition, the Company may also enter into physical-delivery sales contracts to manage cash-flow variability. These contracts call for the receipt or delivery of physical product at a specified location and price, which may be fixed or market-based. Interest rate swaps are used to fix or float interest rates on existing or anticipated indebtedness. The purpose of these instruments is to mitigate the Companys existing or anticipated exposure to unfavorable interest rate changes. The Company does not apply hedge accounting to any of its derivative instruments. The application of hedge accounting was discontinued by the Company for periods beginning on or after January1, 2007. As a result, both realized and unrealized gains and losses associated with derivative instruments are recognized in earnings. Net derivative losses attributable to derivatives previously subject to hedge accounting and residing in accumulated other comprehensive income (loss) are reclassified to earnings in future periods as the economic transactions to which the derivatives relate are recorded in earnings. The accumulated other comprehensive loss balances related to commodity derivatives at June30, 2009 and December31, 2008, were $16 million ($10 million after tax) and $22 million ($14 million after tax), respectively. The accumulated other comprehensive loss balances related to interest rate derivatives at June30, 2009 and December31, 2008, were $151 million ($96 million after tax) and $163 million ($104 million after tax), respectively. Oil and Gas Production/Processing Derivative ActivitiesBelow is a summary of the Companys derivative instruments related to its oil and gas production as of June30, 2009. The natural gas prices listed below are New York Mercantile Exchange (NYMEX) Henry Hub prices. The crude oil prices listed below refl |
| 8. Debt and Interest Expense | 8.Debt and Interest Expense DebtThe following table presents the outstanding debt of the Company as of June30, 2009 and December31, 2008. June30, 2009 December31, 2008 millions Principal CarryingValue FairValue Principal CarryingValue FairValue Current and long-term debt $ 12,909 $ 11,134 $ 10,631 $ 12,381 $ 10,600 $ 9,592 Midstream subsidiary note payable to a related party 1,739 1,739 1,739 1,739 1,739 1,739 Total debt $ 14,648 $ 12,873 $ 12,370 $ 14,120 $ 12,339 $ 11,331 The following table presents the debt activity of the Company for the six months ended June30, 2009. millions Activity Principal CarryingValue Description Balance as of December 31, 2008 $ 14,120 $ 12,339 First Quarter 2009 Issuance 500 499 7.625% Senior Notes due 2014 Issuance 600 598 8.70% Senior Notes due 2019 Retirement (452 ) (452 ) Floating Rate Notes due 2009 Other, net 6 Accretion and discount amortization Second Quarter 2009 Issuance 275 274 5.75% Senior Notes due 2014 Issuance 300 297 6.95% Senior Notes due 2019 Issuance 325 324 7.95% Senior Notes due 2039 Retirement (968 ) (968 ) Floating Rate Notes due 2009 Retirement (52 ) (52 ) 7.30% Notes due 2009 Other, net 8 Accretion and discount amortization Balance as of June30, 2009 $ 14,648 $ 12,873 In March 2008, the Company entered into a $1.3 billion, five-year Revolving Credit Agreement (RCA) with a syndicate of United States and foreign lenders. Under the terms of the RCA, the Company can, under certain conditions, request an increase in the borrowing capacity under the RCA up to a total available credit amount of $2.0 billion. The RCA terminates in March 2013. As of June30, 2009, the Company had no outstanding borrowings under the RCA. The Company was in compliance with existing covenants and the full amount of the RCA was available for borrowing at June30, 2009. See Note 6 for disclosure regarding Anadarkos notes payable to certain investees that do not affect its reported debt balance. Interest ExpenseThe following table summarizes the amounts included in interest expense. ThreeMonthsEnded June30 SixMonthsEnded June30 millions 2009 2008 2009 2008 Gross interest expense Current debt, long-term debt and other $ 207 $ 175 $ 392 $ 386 Midstream subsidiary note payable to a related party 11 27 23 62 Capitalized interest* (15 ) (51 ) (31 ) (70 ) Net interest expense $ 203 $ 151 $ 384 $ 378 |
| 9. Stockholders' Equity | 9.Stockholders Equity Common StockThe reconciliation between basic and diluted EPS from continuing operations attributable to common stockholders is as follows: ThreeMonthsEnded June30 SixMonthsEnded June30 millions except per share amounts 2009 2008 2009 2008 Income: Income (loss) from continuing operations attributable to common stockholders $ (224 ) $ 16 $ (562 ) $ 252 Less: Distributions to participating securities 1 1 Less: Undistributed income (loss) allocated to participating securities 2 Basic $ (224 ) $ 15 $ (562 ) $ 249 Diluted $ (224 ) $ 15 $ (562 ) $ 249 Shares: Basic Weighted-average common shares outstanding 477 468 468 468 Dilutive effect of stock options and performance-based stock awards 1 1 Diluted 477 469 468 469 Income (loss) per common share: Basic $ (0.47 ) $ 0.03 $ (1.20 ) $ 0.53 Diluted $ (0.47 ) $ 0.03 $ (1.20 ) $ 0.53 Effective January1, 2009, the Company adopted FSP EITF No.03-6-1, which requires participating securities to be included in the earnings allocation in computing EPS under the two-class method. All prior-period EPS data presented above have been adjusted retrospectively to conform to the requirements of FSP EITF No.03-6-1. For the three and six months ended June30, 2009, basic EPS was not impacted by the two-class method because the Companys participating securities are not obligated to share in the losses of the Company, and diluted EPS was not impacted because the inclusion of these securities would have had an anti-dilutive effect on diluted EPS. For the three months ended June30, 2008, basic and diluted EPS, as previously reported, did not change under the two-class method. For the six months ended June30, 2008, basic EPS decreased $0.01 and diluted EPS did not change under the two-class method. For the three and six months ended June30, 2009, awards for 6.4million and 6.8million average shares, respectively, of common stock were excluded from the diluted EPS calculation because the inclusion of these shares would have had an anti-dilutive effect. For the three and six months ended June30, 2008, awards for 3.1million and 3.0million average shares, respectively, of common stock were excluded from the diluted EPS calculation because the inclusion of these shares would have had an anti-dilutive effect. In May 2009, Anadarko completed a public offering of 30million shares of common stock at $45.50 per share. After deducting the underwriting discount and other offering costs of $28 million, net proceeds to the Company were approximately $1.3 billion. Net proceeds from the offering are to be used for general corporate purposes, including capital expenditures. For all periods presented, quar |
| 10. Commitments and Contingencies | 10.Commitments and Contingencies GeneralLitigation charges and adjustments of $58 million and $45 million decreased income from continuing operations before income taxes for the three and six months ended June30, 2009, respectively. Litigation charges and adjustments of $3 million and $6 million decreased income from continuing operations before income taxes for the three and six months ended June30, 2008, respectively. The amount of litigation charges and adjustments of $58 million for the three months ended June30, 2009 is primarily due to an increase in legal reserves related to the settlement of disputes. The Company is a defendant in a number of lawsuits and is involved in government proceedings, including, but not limited to, royalty claims, contract claims and environmental claims. The Company has also been named as a defendant in various personal injury claims, including claims by employees of third-party contractors alleging exposure to asbestos, silica and benzene while working at refineries (previously owned by predecessors of acquired companies) located in Texas, California and Oklahoma. While the ultimate outcome and impact on the Company cannot be predicted with certainty, management believes that the resolution of these proceedings will not have a material adverse effect on the consolidated financial position, results of operations or cash flows of the Company. LitigationThe Company is subject to various claims from its royalty owners in the regular course of business as an oil and gas producer, including disputes regarding measurement, costs and expenses beyond the wellhead and basis for royalty valuations. The Company was named as a defendant in a case styled U.S. of America ex rel. Harold E. Wright v. AGIP Company, et al. filed in September 2000 in the U.S. District Court for the Eastern District of Texas, Lufkin Division. Kerr-McGee Corporation (Kerr-McGee) was also named as a defendant in this legal proceeding. This lawsuit generally alleges that the Company, including Kerr-McGee, and 117 other defendants undervalued natural gas in connection with a payment of royalties on production from federal and Indian lands. Based on the Companys present understanding of these various governmental and False Claims Act proceedings, the Company believes that it has substantial defenses to these claims and intends to vigorously assert such defenses. However, if the Company is found to have violated the False Claims Act, the Company could be subject to a variety of sanctions, including treble damages and substantial monetary fines. The discovery process is ongoing. The court has entered an order whereby the case will be tried in phases. The claims against the Company have yet to be set for trial. Prior to its acquisition by Anadarko, Kerr-McGee reached a settlement with the government; however, the court permitted Mr.Wright to conduct additional discovery to test the reasonableness of the settlement. The Company believes that an additional loss, if any, is unlikely to have a material adverse effect on Anadarkos consolidated financial position, results of operations or cash flows. Deepwater Royalty Relief ActIn 1995, the United |
| 11. Income Taxes | 11.Income Taxes Following is a summary of income tax expense (benefit) and effective tax rates for the three and six months ended June30, 2009 and June30, 2008, respectively. ThreeMonthsEnded June30 SixMonthsEnded June30 millions except percentages 2009 2008 2009 2008 Income tax expense (benefit) $ (135 ) $ 236 $ (349 ) $ 580 Effective tax rate 39 % 92 % 39 % 69 % The variance from the 35% statutory rate for the three and six months ended June30, 2009 is primarily attributable to benefits associated with changes in uncertain taxpositions (FASB Interpretation No.48), state income taxes, including a change in the state income tax rate expected to be in effect at the time its deferred state income tax liability is expected to be settled or realized, partially offset by the accrual of the Algerian exceptional profits tax, which is non-deductible for Algerian income tax purposes, other foreign taxes in excess of the federal statutory rate, U.S. residual income tax on foreign income, and other items. The variance from the 35% statutory rate for the three months ended June30, 2008 is primarily attributable to the accrual of the Algerian exceptional profits tax, other foreign taxes in excess of the federal statutory rate, state income taxes and other items. The variance from the 35% statutory rate for the six months ended June30, 2008 also includes the recognition of tax expense on the Companys subsequent divestiture in December 2008 of its 50% interest in the Peregrino field offshore Brazil in advance of the recognition of the associated gain on sale and the tax effect of the prior-period book income correction recorded in the first quarter of 2008. |
| 12. Statements of Cash Flows Supplemental Information | 12.Statements of Cash Flows Supplemental Information The following table presents amounts of cash paid (received) for interest (net of amounts capitalized) and income taxes, including amounts related to discontinued operations, and non-cash transactions. SixMonthsEnded June30 millions 2009 2008 Cash paid (received): Interest $ 348 $ 396 Income taxes(1) $ 195 $ 486 Non-cash investing activities: Fair value of properties and equipment received in non-cash exchange transactions $ 38 $ 108 (1) Includes $454 million of federal income tax refunds received during the six months ended June30, 2008. |
| 13. Segment Information | 13.Segment Information Anadarkos primary business segments are vertically integrated within the oil and gas industry. These segments are managed separately because of the nature of their products and services, as well as unique technology, distribution and marketing requirements. The Companys three operating segments are oil and gas exploration and production, midstream, and marketing. The exploration and production segment explores for and produces natural gas, crude oil, condensate and NGLs. The midstream segment engages in gathering, processing, treating and transporting Anadarkos and third-party oil and gas production. The marketing segment sells most of Anadarkos production, as well as production purchased from third parties. To assess the operating results of Anadarkos segments, management analyzes income from continuing operations before income taxes, interest expense, exploration expense, depreciation, depletion and amortization (DDA) expense and impairments, less net income attributable to noncontrolling interests (Adjusted EBITDAX). Anadarkos definition of Adjusted EBITDAX excludes exploration expense, as exploration expense is not an indicator of operating efficiency for a given reporting period, but is monitored by management as part of costs incurred in exploration and development activities. Similarly, DDA expense and impairments are excluded from Adjusted EBITDAX as a measure of segment operating performance, because capital expenditures are evaluated at the time capital costs are incurred. The Companys definition of Adjusted EBITDAX also excludes interest expense to allow for assessment of segment operating results without regard to Anadarkos financing methods or capital structure. Management believes that the presentation of Adjusted EBITDAX provides information useful in assessing the Companys financial condition and results of operations and that Adjusted EBITDAX is a widely accepted financial indicator of a companys ability to incur and service debt, fund capital expenditures and make distributions to stockholders. Adjusted EBITDAX, as defined by Anadarko, may not be comparable to similarly titled measures used by other companies. Therefore, Anadarkos consolidated Adjusted EBITDAX should be considered in conjunction with income (loss) from continuing operations attributable to common stockholders and other performance measures, such as operating income or cash flow from operating activities. Below is a reconciliation of consolidated Adjusted EBITDAX to income (loss) from continuing operations before income taxes. ThreeMonthsEnded June30 SixMonthsEnded June30 millions 2009 2008 2009 2008 Income (loss) from continuing operations before income taxes $ (349 ) $ 257 $ (894 ) $ 837 Exploration expense 288 264 589 507 Depreciation, depletion and amortization expense 933 784 1,739 1,594 Impairments 23 11 74 11 Interest expense 203 151 384 378 Less: Net income attributable to noncontrolling interests 10 5 17 5 Conso |
| 14. Pension Plans and Other Postretirement Benefits | 14.Pension Plans and Other Postretirement Benefits The Company has non-contributory defined benefit pension plans, including both qualified and supplemental plans, and a foreign contributory defined benefit pension plan. The Company also provides certain health care and life insurance benefits or retired employees. Retiree health care benefits are funded by contributions from the Company and the retiree. The Companys retiree life insurance plan is noncontributory. During the six months ended June30, 2009, the Company made contributions of $119 million to its funded pension plans, $15 million to its unfunded pension plans and $9 million to its unfunded other postretirement benefit plans. Contributions to funded plans increase plan assets while contributions to unfunded plans are used to fund current benefit payments. During the remainder of 2009, the Company expects to contribute approximately $27 million to its funded pension plans, approximately $7 million to its unfunded pension plans and approximately $13 million to its unfunded other postretirement benefit plans. The following table sets forth the Companys pension and other postretirement benefit costs. PensionBenefits OtherBenefits ThreeMonthsEnded June30 ThreeMonthsEnded June30 millions 2009 2008 2009 2008 Components of net periodic benefit cost Service cost $ 14 $ 13 $ 3 $ 3 Interest cost 19 20 5 5 Expected return on plan assets (18 ) (20 ) Amortization of actuarial loss (gain) 12 2 (1 ) Amortization of prior service cost (credit) 1 1 (1 ) (1 ) Settlements 10 Net periodic benefit cost $ 38 $ 16 $ 6 $ 7 Pension Benefits Other Benefits Six Months Ended June30 Six Months Ended June30 millions 2009 2008 2009 2008 Components of net periodic benefit cost Service cost $ 27 $ 27 $ 5 $ 7 Interest cost 39 39 9 10 Expected return on plan assets (36 ) (40 ) Amortization of actuarial loss (gain) 25 5 (1 ) Amortization of prior service cost (credit) 1 1 (1 ) (1 ) Settlements 10 Net periodic benefit cost $ 66 $ 32 $ 12 $ 16 |
| Document Information | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Document Information [Text Block] | |
| Document Type | 10-Q |
| Amendment Flag | false |
| Amendment Description | N.A. |
| Document Period End Date | 2009-06-30 |
| Entity Information (USD $) | ||
| 6 Months Ended
Jun. 30, 2009 | Jun. 30, 2008
| |
| Entity [Text Block] | ||
| Trading Symbol | APC | |
| Entity Registrant Name | ANADARKO PETROLEUM CORP | |
| Entity Central Index Key | 0000773910 | |
| Current Fiscal Year End Date | --12-31 | |
| Entity Well-known Seasoned Issuer | Yes | |
| Entity Current Reporting Status | Yes | |
| Entity Voluntary Filers | No | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Common Stock, Shares Outstanding | 490,525,716 | |
| Entity Public Float | $35,000,000,000 |
