Exhibit 99
ANADARKO ANNOUNCES FIRST-QUARTER RESULTS
HOUSTON, May 2, 2011 – Anadarko Petroleum Corporation (NYSE: APC) today announced first-quarter 2011 net income attributable to common stockholders of $216 million, or $0.43 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 $147 million, or $0.29 per share (diluted) on an after-tax basis.(1) Cash flow from operating activities in the first quarter of 2011 was $1.289 billion, and discretionary cash flow totaled $1.674 billion.(2)
FIRST-QUARTER 2011 HIGHLIGHTS
| | — | | Achieved record sales volumes, comprised of 42 percent liquids |
| | — | | Announced a $1.6 billion joint venture in the Eagleford Shale |
| | — | | Announced six successful offshore discoveries and/or appraisal wells |
| | — | | Reduced lease operating expense per unit by 13 percent over the fourth-quarter 2010 |
| | — | | Announced the $576 million acquisition of the Wattenberg Processing Plant |
“Anadarko delivered record sales volumes in the first quarter, including a 15-percent quarter-over-quarter increase in daily liquids volumes, strong cash flow and improved margins,” said Anadarko Chairman and CEO Jim Hackett. “This record performance was highlighted by the rapid growth of our shale plays and our first lifting from the Jubilee field offshore Ghana. Our deepwater exploration program also achieved excellent results in the quarter with three discoveries and three successful offshore appraisal wells. Early in the second quarter, we closed the previously announced $1.6 billion joint venture with KNOC (Korea National Oil Corporation) in the Eagleford Shale, validating the tremendous embedded value of this resource.”
During the first quarter of 2011, sales volumes totaled 62 million barrels of oil equivalent (BOE), or 690,000 BOE per day, averaging approximately 2.4 billion cubic feet of
natural gas per day, 212,000 barrels of oil per day (BOPD), and 76,000 barrels of natural gas liquids per day.
OPERATIONS SUMMARY
Anadarko’s record sales volumes benefited from the company’s first oil lifting at the Jubilee field in Ghana, as well as continued production growth in the Eagleford and Marcellus shale plays. In Ghana, current gross production from the Jubilee field is more than 70,000 BOPD and continues to ramp up toward capacity of 120,000 BOPD, which is expected by the third quarter of 2011. In the company’s shale plays, average sales volumes in the Eagleford and Marcellus areas increased by about 30 percent and 82 percent, respectively, over the fourth quarter of 2010.
The company recently closed the $1.6 billion Eagleford joint-venture agreement with a subsidiary of KNOC. Under the terms of the agreement, KNOC will fund approximately 100 percent of capital costs in the play for the remainder of this year and up to 90 percent of costs thereafter, until the carry is exhausted. The amount to be paid includes an approximate $48 million post-effective date reimbursement, and KNOC also exercised its option to acquire an approximate 25-percent interest in associated midstream assets for reimbursement of an additional $38 million.
In the Rockies, Anadarko announced the acquisition of the Wattenberg Processing Plant in northeastern Colorado. This acquisition is expected to improve field recoveries and allow for future expansion in the greater Denver-Julesburg Basin, where Anadarko continues an active program with seven rigs drilling directional wells in the Wattenberg field and three rigs drilling horizontal wells in the emerging Niobrara play.
EXPLORATION SUMMARY
Anadarko announced three deepwater discoveries during the first quarter of 2011. The Teak-1 and Teak-2 discoveries, located in the 30.875-percent-owned West Cape Three Points Block offshore Ghana, encountered high-quality oil, condensate and natural gas pay in Turonian-age reservoirs similar to those found in the adjacent Jubilee field, as well as Campanian-age reservoirs. In Mozambique, the company announced the Tubarão discovery, marking its
2
fourth operated natural gas discovery in the 36.5 percent-owned Offshore Area 1 of the Rovuma Basin.
In the Deepwater Tano Block offshore Ghana, where Anadarko holds an 18-percent working interest, the company and its partners announced successful appraisal wells at Enyenra-2A, Tweneboa-3 and Tweneboa-3ST. Subsequent to quarter end, the operator also announced the successful Tweneboa-4 appraisal well. Additional appraisal activity is ongoing in the Tweneboa/Enyenra complex as the partnership continues to work toward a declaration of commerciality, which is expected later this year.
FINANCIAL SUMMARY
Anadarko ended the first quarter of 2011 with approximately $3.5 billion of cash on hand, maintained access to its five-year, $5 billion undrawn credit facility and generated $87 million of free cash flow. The company’s estimated 2011 capital expenditures were increased by approximately $600 million as a result of the Wattenberg Processing Plant acquisition, resulting in an estimated capital spending range of $6.2 to $6.6 billion, excluding capital expenditures related to Western Gas Partners, LP.
OPERATIONS REPORT
For more details on Anadarko’s operations, please refer to the comprehensive report on first-quarter 2011 activity. The report is available at www.anadarko.com on the Investor Relations page.
CONFERENCE CALLTOMORROWAT 9A.M. CDT, 10A.M. EDT
Anadarko will host a conference call on Tuesday, May 3, 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 2011. The dial-in number is 888.713.4217 in the United States or 617.213.4869 internationally. The confirmation number is 98218183. 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.
3
FINANCIAL DATA
Eight pages of summary financial data follow, including current hedge positions, financial guidance and supplemental production guidance.
(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.
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 2010, the company had approximately 2.42 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.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Anadarko believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release, including Anadarko’s ability to commercially operate the drilling prospects identified in this news release. See “Risk Factors” in the company’s 2010 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.
# # #
ANADARKO CONTACTS
MEDIA:
John Christiansen,john.christiansen@anadarko.com, 832.636.8736
Brian Cain,brian.cain@anadarko.com, 832.636.3404
INVESTORS:
John Colglazier,john.colglazier@anadarko.com, 832.636.2306
Dean Hennings,dean.hennings@anadarko.com, 832.636.2462
Wayne Rodrigs,wayne.rodrigs@anadarko.com, 832.636.2305
4
Anadarko Petroleum Corporation
Certain Items Affecting Comparability
| | | | | | | | | | | | |
| | | Quarter Ended March 31, 2011 | |
| millions except per-share amounts | | Before Tax | | | After Tax | | | Per Share (diluted) | |
Unrealized gains (losses) on derivatives, net* | | $ | (253 | ) | | $ | (160 | ) | | $ | (0.32 | ) |
Other general and administrative items, net | | | 24 | | | | 15 | | | | 0.03 | |
Impairments | | | (2 | ) | | | (2 | ) | | | — | |
| | | $ | (231 | ) | | $ | (147 | ) | | $ | (0.29 | ) |
| * | For the quarter ended March 31, 2011, before-tax unrealized gains (losses) on derivatives, net includes $(313) million related to commodity derivatives, $59 million related to other derivatives, and $1 million related to gathering, processing, and marketing sales. |
| | | | | | | | | | | | |
| | | Quarter Ended March 31, 2010 | |
| millions except per-share amounts | | Before Tax | | | After Tax | | | Per Share (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. |
Reconciliation of GAAP to Non-GAAP Measures
Below are reconciliations of cash provided by operating activities (GAAP) to discretionary cash flow from operations 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. Management uses discretionary cash flow from operations 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. Management uses adjusted net income (loss) to evaluate the Company’s operational trends and performance.
| | | | | | | | |
| | | Quarter Ended March 31, | |
| millions | | 2011 | | | 2010 | |
Net cash provided by operating activities | | $ | 1,289 | | | $ | 1,317 | |
Add back: | | | | | | | | |
Change in accounts receivable | | | 251 | | | | 27 | |
Change in accounts payable and accrued expenses | | | 177 | | | | 281 | |
Change in other items—net | | | (43 | ) | | | (95 | ) |
Discretionary cash flow from operations | | $ | 1,674 | | | $ | 1,530 | |
5
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
| | | | | | | | |
| | | Quarter Ended March 31, | |
| millions | | 2011 | | | 2010 | |
Discretionary cash flow from operations | | $ | 1,674 | | | $ | 1,530 | |
Less: Capital expenditures* | | | 1,587 | | | | 1,239 | |
Free cash flow | | $ | 87 | | | $ | 291 | |
| * | Includes Western Gas Partners, LP (WES) capital expenditures of $317 million and $4 million for the quarters ended March 31, 2011, and 2010, respectively. |
| | | | | | | | | | | | | | | | |
| | | Quarter Ended March 31, 2011 | | | Quarter Ended March 31, 2010 | |
| | | After | | | Per Share | | | After | | | Per Share | |
| millions except per-share amounts | | Tax | | | (diluted) | | | Tax | | | (diluted) | |
Net income (loss) attributable to common stockholders | | $ | 216 | | | $ | 0.43 | | | $ | 716 | | | $ | 1.43 | |
Less: Certain items affecting comparability | | | (147 | ) | | | (0.29 | ) | | | 304 | | | | 0.62 | |
Adjusted net income (loss) | | $ | 363 | | | $ | 0.72 | | | $ | 412 | | | $ | 0.81 | |
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 that would not be readily satisfied by its cash and cash equivalents on hand.
| | | | |
| millions | | March 31, 2011 | |
Total debt | | $ | 13,193 | |
Less: Cash and cash equivalents | | | 3,460 | |
Net debt | | $ | 9,733 | |
| |
Net debt | | $ | 9,733 | |
Stockholders’ equity | | | 20,909 | |
Adjusted capitalization | | $ | 30,642 | |
| | | | |
Net debt to adjusted capitalization ratio | | | 32% | |
6
Anadarko Petroleum Corporation
(Unaudited)
| | | | | | | | |
Summary Financial Information | | Quarter Ended March 31, | |
| millions except per-share amounts | | 2011 | | | 2010 | |
Consolidated Statements of Income | | | | | | | | |
Revenues and Other | | | | | | | | |
Gas sales | | $ | 854 | | | $ | 1,081 | |
Oil and condensate sales | | | 1,807 | | | | 1,502 | |
Natural-gas liquids sales | | | 333 | | | | 274 | |
Gathering, processing, and marketing sales | | | 230 | | | | 273 | |
Gains (losses) on divestitures and other, net | | | 29 | | | | 9 | |
Total | | | 3,253 | | | | 3,139 | |
Costs and Expenses | | | | | | | | |
Oil and gas operating | | | 232 | | | | 187 | |
Oil and gas transportation and other | | | 209 | | | | 191 | |
Exploration | | | 179 | | | | 155 | |
Gathering, processing, and marketing | | | 171 | | | | 183 | |
General and administrative | | | 235 | | | | 210 | |
Depreciation, depletion, and amortization | | | 985 | | | | 981 | |
Other taxes | | | 344 | | | | 301 | |
Impairments | | | 2 | | | | 12 | |
Total | | | 2,357 | | | | 2,220 | |
Operating Income (Loss) | | | 896 | | | | 919 | |
Other (Income) Expense | | | | | | | | |
Interest expense | | | 220 | | | | 224 | |
(Gains) losses on commodity derivatives, net | | | 256 | | | | (588 | ) |
(Gains) losses on other derivatives, net | | | (59 | ) | | | 29 | |
Other (income) expense, net | | | (24 | ) | | | 9 | |
Total | | | 393 | | | | (326 | ) |
Income (Loss) Before Income Taxes | | | 503 | | | | 1,245 | |
Income Tax Expense (Benefit) | | | 266 | | | | 517 | |
Net Income (Loss) | | $ | 237 | | | $ | 728 | |
Net Income Attributable to Noncontrolling Interests | | | 21 | | | | 12 | |
Net Income (Loss) Attributable to Common Stockholders | | $ | 216 | | | $ | 716 | |
Per Common Share: | | | | | | | | |
Net income (loss) attributable to common stockholders—basic | | $ | 0.43 | | | $ | 1.44 | |
Net income (loss) attributable to common stockholders—diluted | | $ | 0.43 | | | $ | 1.43 | |
Average Number of Common Shares Outstanding—Basic | | | 497 | | | | 493 | |
Average Number of Common Shares Outstanding—Diluted | | | 499 | | | | 496 | |
| | | | | | | | |
Exploration Expense | | | | | | | | |
Dry hole expense | | $ | 16 | | | $ | 25 | |
Impairments of unproved properties | | | 74 | | | | 88 | |
Geological and geophysical expense | | | 48 | | | | 3 | |
Exploration overhead and other | | | 41 | | | | 39 | |
Total | | $ | 179 | | | $ | 155 | |
7
Anadarko Petroleum Corporation
(Unaudited)
| | | | | | | | |
Summary Financial Information | | Quarter Ended March 31, | |
| millions | | 2011 | | | 2010 | |
Cash Flows from Operating Activities | | | | | | | | |
Net income (loss) | | $ | 237 | | | $ | 728 | |
Depreciation, depletion, and amortization | | | 985 | | | | 981 | |
Deferred income taxes | | | 73 | | | | 154 | |
Dry hole expense and impairments of unproved properties | | | 90 | | | | 113 | |
Impairments | | | 2 | | | | 12 | |
(Gains) losses on divestitures, net | | | — | | | | (13 | ) |
Unrealized (gains) losses on derivatives, net | | | 253 | | | | (545 | ) |
Other | | | 34 | | | | 100 | |
Discretionary Cash Flow from Operations | | | 1,674 | | | | 1,530 | |
(Increase) decrease in accounts receivable | | | (251 | ) | | | (27 | ) |
Increase (decrease) in accounts payable and accrued expenses | | | (177 | ) | | | (281 | ) |
Other items—net | | | 43 | | | | 95 | |
Net Cash Provided By Operating Activities | | $ | 1,289 | | | $ | 1,317 | |
| | | | | | | | |
Capital Expenditures | | $ | 1,587 | | | $ | 1,239 | |
| | |
| | | March 31, | | | | December 31, | |
| millions | | 2011 | | | 2010 | |
Condensed Balance Sheets | | | | | | | | |
Cash and cash equivalents | | $ | 3,460 | | | $ | 3,680 | |
Other current assets | | | 3,227 | | | | 2,995 | |
Net properties and equipment | | | 38,423 | | | | 37,957 | |
Other assets | | | 1,537 | | | | 1,616 | |
Goodwill and other intangible assets | | | 5,366 | | | | 5,311 | |
Total Assets | | $ | 52,013 | | | $ | 51,559 | |
Current debt | | $ | 424 | | | $ | 291 | |
Other current liabilities | | | 3,641 | | | | 3,823 | |
Long-term debt | | | 12,769 | | | | 12,722 | |
Other long-term liabilities | | | 13,395 | | | | 13,284 | |
Stockholders’ equity | | | 20,909 | | | | 20,684 | |
Noncontrolling interests | | | 875 | | | | 755 | |
Total Liabilities and Equity | | $ | 52,013 | | | $ | 51,559 | |
Capitalization | | | | | | | | |
Total debt | | $ | 13,193 | | | $ | 13,013 | |
Stockholders’ equity | | | 20,909 | | | | 20,684 | |
Total | | $ | 34,102 | | | $ | 33,697 | |
Capitalization Ratios | | | | | | | | |
Total debt | | | 39% | | | | 39% | |
Stockholders’ equity | | | 61% | | | | 61% | |
8
Anadarko Petroleum Corporation
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Sales Volumes and Prices | |
| | | |
| | | Average Daily Volumes | | | Sales Volumes | | | Average Sales Price | |
| | | Natural Gas
MMcf/d | | | Crude Oil &
Condensate
MBbls/d | | | NGLs
MBbls/d | | | Natural Gas
Bcf | | | Crude Oil &
Condensate
MMBbls | | | NGLs
MMBbls | | | Natural Gas
Per Mcf | | | Crude Oil &
Condensate
Per Bbl | | | NGLs
Per Bbl | |
Quarter Ended March 31, 2011 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
United States | | | 2,412 | | | | 131 | | | | 76 | | | | 217 | | | | 12 | | | | 7 | | | $ | 3.93 | | | $ | 91.56 | | | $ | 48.86 | |
Algeria | | | | | | | 55 | | | | | | | | | | | | 5 | | | | | | | | | | | | 98.45 | | | | | |
Other International | | | | | | | 26 | | | | | | | | | | | | 2 | | | | | | | | | | | | 101.66 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 2,412 | | | | 212 | | | | 76 | | | | 217 | | | | 19 | | | | 7 | | | $ | 3.93 | | | $ | 94.58 | | | $ | 48.86 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Average Daily Volumes MBOE/d | | Sales Volumes MMBOE |
Quarter Ended March 31, 2011 | | 690 | | 62 |
Quarter Ended March 31, 2010 | | 686 | | 62 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Sales Revenue and Commodity Derivatives | |
| | | |
| | | Sales | | | | | Commodity Derivatives Gain (Loss) | |
| | | | | | | | | | | | | | Natural Gas | | | Crude Oil & Condensate | |
| millions | | Natural Gas | | | Crude Oil &
Condensate | | | NGLs | | | | | Realized | | | Unrealized | | | Realized | | | Unrealized | |
Quarter Ended March 31, 2011 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
United States | | $ | 854 | | | $ | 1,080 | | | $ | 333 | | | | | $ | 72 | | | $ | (47 | ) | | $ | (12 | ) | | $ | (275 | ) |
Algeria | | | | | | | 491 | | | | | | | | | | | | | | | | | | (3 | ) | | | 9 | |
Other International | | | | | | | 236 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 854 | | | $ | 1,807 | | | $ | 333 | | | | | $ | 72 | | | $ | (47 | ) | | $ | (15 | ) | | $ | (266 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
9
Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of May 2, 2011
| | | | | | | | | | | | | | |
| | | 2nd Qtr
Guidance | | | | Total Year
Guidance |
| | | Units | | | | Units |
Total Sales (MMBOE) | | 60 | | - | | 62 | | | | 244 | | - | | 248 |
| | | | | | | |
Crude Oil (MBbl/d): | | 224 | | - | | 231 | | | | 215 | | - | | 219 |
| | | | | | | |
United States | | 129 | | - | | 131 | | | | 127 | | - | | 129 |
Algeria | | 61 | | - | | 64 | | | | 53 | | - | | 54 |
Other International | | 34 | | - | | 36 | | | | 35 | | - | | 37 |
| | | | | | | |
Natural Gas (MMcf/d): | | | | | | | | | | | | | | |
| | | | | | | |
United States | | 2,250 | | - | | 2,300 | | | | 2,325 | | - | | 2,375 |
| | | | | | | |
Natural Gas Liquids (MBbl/d): | | | | | | | | | | | | | | |
| | | | | | | |
United States | | 61 | | - | | 64 | | | | 65 | | - | | 67 |
| | | | | | | | | | | | | | |
| | | |
| | | $ / Unit | | | | $ / Unit |
Price Differentials vs NYMEX (w/o hedges) | | | | | | | | | | | | | | |
| | | | | | | |
Crude Oil ($/Bbl): | | - | | - | | 1.00 | | | | (1.00) | | - | | 1.00 |
United States | | (3.00) | | - | | (5.00) | | | | (5.00) | | - | | (7.00) |
Algeria | | 8.00 | | - | | 10.00 | | | | 6.00 | | - | | 8.00 |
Other International | | 6.00 | | - | | 8.00 | | | | 4.00 | | - | | 6.00 |
| | | | | | | |
Natural Gas ($/Mcf): | | | | | | | | | | | | | | |
| | | | | | | |
United States | | (0.15) | | - | | (0.25) | | | | (0.20) | | - | | (0.30) |
| | | | | | | | | | | | | | |
10
Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of May 2, 2011
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2nd Qtr
Guidance | | | | | Total Year
Guidance | |
| | | |
| | | $ MM | | | | | $ MM | |
Other Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Marketing and Gathering Margin | | | 50 | | | | - | | | | 70 | | | | | | 225 | | | | - | | | | 275 | |
Minerals and Other | | | 35 | | | | - | | | | 45 | | | | | | 110 | | | | - | | | | 140 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Costs and Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ / Boe | | | | | $ / Boe | |
Oil & Gas Direct Operating | | | 3.80 | | | | - | | | | 4.20 | | | | | | 3.80 | | | | - | | | | 4.20 | |
Oil & Gas Transportation/Other | | | 3.40 | | | | - | | | | 3.65 | | | | | | 3.40 | | | | - | | | | 3.65 | |
Depreciation, Depletion and Amortization | | | 15.25 | | | | - | | | | 15.75 | | | | | | 15.25 | | | | - | | | | 15.75 | |
Production Taxes (% of Revenue) | | | 11.5% | | | | - | | | | 12.5% | | | | | | 10.0% | | | | - | | | | 12.0% | |
| | | |
| | | $ MM | | | | | $ MM | |
General and Administrative | | | 240 | | | | - | | | | 260 | | | | | | 950 | | | | - | | | | 1,050 | |
Exploration Expense | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-Cash | | | 100 | | | | - | | | | 150 | | | | | | 600 | | | | - | | | | 700 | |
Cash | | | 75 | | | | - | | | | 100 | | | | | | 325 | | | | - | | | | 375 | |
Interest Expense (net) | | | 210 | | | | - | | | | 230 | | | | | | 850 | | | | - | | | | 875 | |
Other (Income) Expense | | | - | | | | - | | | | 20 | | | | | | - | | | | - | | | | 80 | |
| | | | | | | |
Tax Rate | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Algeria (All Current) | | | 55% | | | | - | | | | 65% | | | | | | 55% | | | | - | | | | 65% | |
Rest of Company (All Deferred) | | | 35% | | | | - | | | | 45% | | | | | | 35% | | | | - | | | | 45% | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Avg. Shares Outstanding (MM) | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | 495 | | | | - | | | | 497 | | | | | | 496 | | | | - | | | | 498 | |
Diluted | | | 497 | | | | - | | | | 499 | | | | | | 498 | | | | - | | | | 500 | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ MM | | | | | $ MM | |
Capital Investment * | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capital Expenditures | | | 1,750 | | | | - | | | | 1,900 | | | | | | 6,060 | | | | - | | | | 6,450 | |
Capitalized Interest | | | 30 | | | | - | | | | 40 | | | | | | 140 | | | | - | | | | 150 | |
* Excludes Western Gas Partners, LP (WES)
11
Anadarko Petroleum Corporation
Commodity Hedge Positions (Excluding Natural Gas Basis)
As of May 2, 2011
| | | | | | | | | | | | | | | | |
| | | Volume
(thousand
MMBtu/d) | | | Weighted Average Price per MMBtu | |
| | | Floor Sold | | | Floor Purchased | | | Ceiling Sold | |
Natural Gas | | | | | | | | | | | | | | | | |
Three-Way Collars | | | | | | | | | | | | | | | | |
2011 | | | 480 | | | $ | 5.00 | | | $ | 6.50 | | | $ | 8.29 | |
2012 | | | 500 | | | $ | 5.00 | | | $ | 6.50 | | | $ | 9.03 | |
| | | | |
Fixed Price - Financial | | | | | | | | | | | | | | | | |
2011 | | | 90 | | | $ | 6.17 | | | | | | | | | |
| | |
| | | Volume
(thousand
MBbls/d) | | | Weighted Average Price per barrel | |
| | | Floor Sold | | | Floor Purchased | | | Ceiling Sold | |
Crude Oil | | | | | | | | | | | | | | | | |
Three-Way Collars | | | | | | | | | | | | | | | | |
2011 | | | 126 | | | $ | 64.29 | | | $ | 79.29 | | | $ | 99.95 | |
2012 | | | 2 | | | $ | 35.00 | | | $ | 50.00 | | | $ | 92.50 | |
Anadarko Petroleum Corporation
Natural Gas Basis Hedge Positions
As of May 2, 2011
| | | | | | | | |
| | | Volume
(thousand
MMBtu/d) | | | Price per
MMBtu | |
Basis Swaps | | | | | | | | |
2011 | | | | | | | | |
Mid Continent | | | 15 | | | $ | (0.76) | |
Rocky Mountains | | | 30 | | | $ | (2.22) | |
| | | | | | | | |
| | | 45 | | | $ | (1.74) | |
Interest Rate Derivatives*
As of May 2, 2011
| | | | | | | | | | | | | | |
| | | 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 | | |
| | | | | | | | | | | | | | |
| * | Excludes Western Gas Partners, LP (WES) |
12
