Exhibit 99
NEWS
ANADARKO ANNOUNCES SECOND-QUARTER RESULTS
HOUSTON, July 25, 2011 – Anadarko Petroleum Corporation (NYSE: APC) today announced second-quarter 2011 net income attributable to common stockholders of $544 million, or $1.08 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 $28 million, or $0.06 per share (diluted) on an after-tax basis.(1)Cash flow from operating activities in the second quarter of 2011 was $1.837 billion, and discretionary cash flow totaled $1.838 billion.(2)
SECOND-QUARTER 2011 HIGHLIGHTS
| | • | | Achieved record liquids sales volumes of 297,000 barrels per day |
| | • | | Finalized Lucius unitization agreement |
| | • | | Successfully tested three wells at the Caesar/Tonga mega project |
| | • | | Closed the acquisition of the Wattenberg Processing Plant |
“We achieved record liquids sales volumes during the quarter, enhancing margins and generating excellent cash flows,” said Anadarko Chairman and CEO Jim Hackett. “Nearly all of the year-over-year volume growth was attributable to a 34,000 barrel-per-day increase in liquids volumes. These results contributed to strong discretionary cash flows of more than $1.8 billion – approximately $117 million above our capital expenditures, which included a one-time cash investment of $518 million associated with the acquisition of the Wattenberg plant.”
During the second quarter of 2011, sales volumes totaled 62 million barrels of oil equivalent (BOE), or 685,000 BOE per day, averaging approximately 2.3 billion cubic feet of natural gas per day, 225,000 barrels of oil per day (BOPD), and 72,000 barrels of natural gas liquids per day.
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OPERATIONS SUMMARY
The company achieved sales-volumes records during the second quarter of 2011 in Wattenberg, Greater Natural Buttes, Wamsutter (operated), Bone Spring and the Marcellus Shale. In the Eagleford Shale, Anadarko closed its $1.6 billion joint-venture agreement with a subsidiary of Korea National Oil Corporation and exited the quarter with record gross sales volumes of approximately 45,000 BOE per day in the play, an increase of approximately 25 percent from the end of the prior quarter. In Ghana, current gross production from Jubilee is approximately 80,000 BOPD, and production continues to ramp up with further well completions and gas injection.
In the deepwater Gulf of Mexico, Anadarko continued to advance two major projects during the second quarter. The company finalized the Lucius unitization agreement and recently announced plans to develop the field with a truss spar designed for a capacity of 80,000 BOPD and 450 million cubic feet of natural gas per day. Sanctioning is expected to occur later this year, with first production expected in 2014. At the Caesar/Tonga project, Anadarko completed flow and reservoir tests on three wells. Each of the wells tested at flow rates of approximately 15,000 BOPD with high-quality (27º API gravity) oil.
EXPLORATION SUMMARY
Anadarko has mobilized theDiscoverer Spirit drillship to begin the company’s 2011 exploration program in West Africa, following the drillship’s completion of the final test at Caesar/Tonga. This program includes the Montserrado exploration well in Liberia, as well as the Jupiter exploration well and Mercury appraisal well in Sierra Leone. In other deepwater exploration areas, Anadarko continued to delineate its large natural gas discoveries in Mozambique, and to advance appraisal activities in the Tweneboa/Enyenra area offshore Ghana. The company also recently began appraisal drilling in the Campos Basin offshore Brazil.
As previously announced by Diamond Offshore, Anadarko signed long-term contracts in the second quarter for two new-build drillships. TheOcean BlackHawkis expected to be delivered in late 2013, and theOcean BlackHornet is expected to be delivered in early 2014. These new state-of-the-art rigs are designed to work in up to 12,000 feet of water, and each
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has been contracted for a term of five years. These new rigs will feature enhanced drilling capabilities and safety equipment designed to meet the highest specifications in the industry.
“We expect the next six to nine months to be the most active period of deepwater exploration and appraisal drilling in our company’s history,” said Hackett. “Our exploration program is designed to deliver upon our goal of discovering more than 500 million BOE of net risked resources this year. We are continuing to advance our deep inventory of high-impact prospects, and the new rig agreements reinforce our long-term commitment to the safety and success of our global exploration program.”
FINANCIAL SUMMARY
Anadarko reported total product revenues of approximately $3.5 billion during the second quarter of 2011, a 46-percent increase relative to the second quarter of 2010. The company ended the second quarter of 2011 with approximately $3.4 billion of cash on hand in addition to its five-year, $5 billion undrawn credit facility. As provided in the supplemental information to this release, Anadarko protected an additional 450,000 MMBtu per day of 2013 natural gas production, with three-way collars that have a middle floor of $5.00 per MMBtu and a ceiling of $6.57 per MMBtu.
OPERATIONS REPORT
For more details on Anadarko’s operations, please refer to the comprehensive report on second-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, July 26, 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 2011. The dial-in number is 888.713.4205 in the United States or 617.213.4862 internationally. The confirmation number is 67183355. 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
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be available on the Web site for approximately 30 days following the conference call.
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.
Cautionary Note to U.S. Investors: Effective Jan. 1, 2010, the United States Securities and Exchange Commission (“SEC”) permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC’s definitions for such terms. Anadarko uses certain terms in this news release, such as “net risked resources,” and similar terms that the SEC’s guidelines strictly prohibit Anadarko from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in Anadarko’s Form 10-K for the year ended Dec. 31, 2010, File No. 001-08968, available from Anadarko at www.anadarko.com or by writing Anadarko at: Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The Woodlands, Texas 77380, Attn: Investor Relations. This form may also be obtained by contacting the SEC at 1-800-SEC-0330.
# # #
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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
Clay Gaspar,clay.gaspar@anadarko.com, 832.636.2541
Wayne Rodrigs,wayne.rodrigs@anadarko.com, 832.636.2305
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| | | | | | | | |
| Anadarko Petroleum Corporation |
|
| Certain Items Affecting Comparability |
| | | | | | | | | | | | | | |
| |
| | | Quarter Ended June 30, 2011 | |
| millions except per-share amounts | | | | Before Tax | | | After Tax | | | Per Share
(diluted) | |
| | |
Unrealized gains (losses) on derivatives, net* | | | | $ | 178 | | | $ | 114 | | | $ | 0.22 | |
| | | | |
Gains (losses) on divestitures, net | | | | | (94) | | | | (79) | | | | (0.16) | |
| | | | |
Impairments | | | | | (102) | | | | (66) | | | | (0.13) | |
| | | | |
Change in uncertain tax positions (FIN48) | | | | | — | | | | 3 | | | | 0.01 | |
| | |
| | | | |
| | | | $ | (18) | | | $ | (28) | | | $ | (0.06) | |
| | |
| * | For the quarter ended June 30, 2011, before-tax unrealized gains (losses) on derivatives, net includes $316 million related to commodity derivatives, $(142) million related to other derivatives, and $4 million related to gathering, processing, and marketing sales. | |
| | | | | | | | | | | | | | |
| | | Quarter Ended June 30, 2010 | |
| millions except per-share amounts | | | | Before Tax | | | After Tax | | | Per Share
(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. | |
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 June 30, | | | Six Months Ended June 30, | |
| millions | | 2011 | | | 2010 | | | 2011 | | | 2010 | |
| | |
Net cash provided by operating activities | | $ | 1,837 | | | $ | 1,566 | | | $ | 3,126 | | | $ | 2,883 | |
| | | | |
Add back: | | | | | | | | | | | | | | | | |
| | | | |
Change in accounts receivable | | | 284 | | | | (32 | ) | | | 535 | | | | (5) | |
| | | | |
Change in accounts payable and accrued expenses | | | (418 | ) | | | (52 | ) | | | (241 | ) | | | 229 | |
| | | | |
Change in other items—net | | | 135 | | | | (204 | ) | | | 92 | | | | (299) | |
| | |
| | | | |
Discretionary cash flow from operations | | $ | 1,838 | | | $ | 1,278 | | | $ | 3,512 | | | $ | 2,808 | |
| | |
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Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
| | | Per Share | | | | Per Share | | | | Per Share | | | | Per Share | |
| | |
| |
| Quarter Ended June 30,
|
| |
| Six Months Ended June 30,
|
|
| | | | |
millions | | | 2011 | | | | 2010 | | | | 2011 | | | | 2010 | |
| | |
| | | | |
Discretionary cash flow from operations | | $ | 1,838 | | | $ | 1,278 | | | $ | 3,512 | | | $ | 2,808 | |
| | | | |
Less: Capital expenditures* | | | 1,721 | | | | 1,367 | | | | 3,308 | | | | 2,606 | |
| | |
| | | | |
Free cash flow | | $ | 117 | | | $ | (89 | ) | | $ | 204 | | | $ | 202 | |
|
| | |
|
* Includes Western Gas Partners, LP (WES) capital expenditures of $21 million and $47 million for the three months ended June 30, 2011, and 2010, respectively, and $338 million and $51 million for the six months ended June 30, 2011, and 2010, respectively. | |
| | |
| | | Quarter Ended June 30, 2011 | | | | Quarter Ended June 30, 2010 | |
| | | | |
millions except per-share amounts | |
| After
Tax |
| |
| Per Share
(diluted) |
| |
| After
Tax |
| |
| Per Share
(diluted) |
|
| | |
| | | | |
Net income (loss) attributable to common stockholders | | $ | 544 | | | $ | 1.08 | | | $ | (40 | ) | | $ | (0.08 | ) |
| | | | |
Less: Certain items affecting comparability | | | (28 | ) | | | (0.06 | ) | | | (284 | ) | | | (0.57 | ) |
| | |
| | | | |
Adjusted net income (loss) | | $ | 572 | | | $ | 1.14 | | | $ | 244 | | | $ | 0.49 | |
|
| | |
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 | | June 30, 2011 | |
| | |
| |
Total debt | | $ | 13,226 | |
| |
Less: Cash and cash equivalents | | | 3,406 | |
| | |
| |
Net debt | | $ | 9,820 | |
|
| | |
| |
Net debt | | $ | 9,820 | |
| |
Stockholders’ equity | | | 21,471 | |
| | |
| |
Adjusted capitalization | | $ | 31,291 | |
| | |
| | | | |
| | |
| |
Net debt to adjusted capitalization ratio | | | 31% | |
|
| | |
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Anadarko Petroleum Corporation
(Unaudited)
| | | $000000 | | | | $000000 | | | | $000000 | | | | $000000 | |
| Summary Financial Information | | Quarter Ended June 30, | | | Six Months Ended June 30, | |
| millions except per-share amounts | | 2011 | | | 2010 | | | 2011 | | | 2010 | |
Consolidated Statements of Income | | | | | | | | | | | | | | | | |
Revenues and Other | | | | | | | | | | | | | | | | |
Natural-gas sales | | $ | 870 | | | $ | 802 | | | $ | 1,724 | | | $ | 1,883 | |
Oil and condensate sales | | | 2,236 | | | | 1,338 | | | | 4,043 | | | | 2,840 | |
Natural-gas liquids sales | | | 370 | | | | 235 | | | | 703 | | | | 509 | |
Gathering, processing, and marketing sales | | | 258 | | | | 188 | | | | 488 | | | | 461 | |
Gains (losses) on divestitures and other, net | | | (58 | ) | | | 41 | | | | (29 | ) | | | 50 | |
Total | | | 3,676 | | | | 2,604 | | | | 6,929 | | | | 5,743 | |
Costs and Expenses | | | | | | | | | | | | | | | | |
Oil and gas operating | | | 236 | | | | 196 | | | | 468 | | | | 383 | |
Oil and gas transportation and other* | | | 207 | | | | 196 | | | | 416 | | | | 387 | |
Exploration | | | 236 | | | | 198 | | | | 415 | | | | 353 | |
Gathering, processing, and marketing | | | 205 | | | | 149 | | | | 376 | | | | 332 | |
General and administrative | | | 291 | | | | 203 | | | | 526 | | | | 413 | |
Depreciation, depletion, and amortization | | | 985 | | | | 902 | | | | 1,970 | | | | 1,883 | |
Other taxes | | | 413 | | | | 268 | | | | 757 | | | | 569 | |
Impairments | | | 102 | | | | 115 | | | | 104 | | | | 127 | |
Total | | | 2,675 | | | | 2,227 | | | | 5,032 | | | | 4,447 | |
Operating Income (Loss) | | | 1,001 | | | | 377 | | | | 1,897 | | | | 1,296 | |
Other (Income) Expense | | | | | | | | | | | | | | | | |
Interest expense | | | 216 | | | | 200 | | | | 436 | | | | 424 | |
(Gains) losses on commodity derivatives, net | | | (343 | ) | | | (264 | ) | | | (87 | ) | | | (852 | ) |
(Gains) losses on other derivatives, net | | | 144 | | | | 406 | | | | 85 | | | | 435 | |
Other (income) expense, net | | | (18 | ) | | | 14 | | | | (42 | ) | | | 23 | |
Total | | | (1 | ) | | | 356 | | | | 392 | | | | 30 | |
Income (Loss) Before Income Taxes | | | 1,002 | | | | 21 | | | | 1,505 | | | | 1,266 | |
Income Tax Expense (Benefit) | | | 440 | | | | 49 | | | | 706 | | | | 566 | |
Net Income (Loss) | | $ | 562 | | | $ | (28 | ) | | $ | 799 | | | $ | 700 | |
Net Income Attributable to Noncontrolling Interests | | | 18 | | | | 12 | | | | 39 | | | | 24 | |
Net Income (Loss) Attributable to Common Stockholders | | $ | 544 | | | $ | (40 | ) | | $ | 760 | | | $ | 676 | |
Per Common Share: | | | | | | | | | | | | | | | | |
Net income (loss) attributable to common stockholders—basic | | $ | 1.09 | | | $ | (0.08 | ) | | $ | 1.52 | | | $ | 1.36 | |
Net income (loss) attributable to common stockholders—diluted | | $ | 1.08 | | | $ | (0.08 | ) | | $ | 1.51 | | | $ | 1.35 | |
Average Number of Common Shares Outstanding—Basic | | | 498 | | | | 495 | | | | 497 | | | | 494 | |
Average Number of Common Shares Outstanding—Diluted | | | 500 | | | | 495 | | | | 499 | | | | 496 | |
| | | | |
| | | | | | | | | | | | | | | | | |
Exploration Expense | | | | | | | | | | | | | | | | |
Dry hole expense | | $ | 42 | | | $ | 17 | | | $ | 58 | | | $ | 42 | |
Impairments of unproved properties | | | 95 | | | | 114 | | | | 169 | | | | 202 | |
Geological and geophysical expense | | | 52 | | | | 25 | | | | 100 | | | | 28 | |
Exploration overhead and other | | | 47 | | | | 42 | | | | 88 | | | | 81 | |
Total | | $ | 236 | | | $ | 198 | | | $ | 415 | | | $ | 353 | |
| * | 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. |
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Anadarko Petroleum Corporation
(Unaudited)
| | | December 31, | | | | December 31, | | | | December 31, | | | | December 31, | |
| Summary Financial Information | | Quarter Ended June 30, | | | Six Months Ended June 30, | |
millions | | | 2011 | | | | 2010 | | | | 2011 | | | | 2010 | |
Cash Flows from Operating Activities | | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 562 | | | $ | (28 | ) | | $ | 799 | | | $ | 700 | |
Depreciation, depletion, and amortization | | | 985 | | | | 902 | | | | 1,970 | | | | 1,883 | |
Deferred income taxes | | | 185 | | | | (251 | ) | | | 258 | | | | (97 | ) |
Dry hole expense and impairments of unproved properties | | | 137 | | | | 131 | | | | 227 | | | | 244 | |
Impairments | | | 102 | | | | 115 | | | | 104 | | | | 127 | |
(Gains) losses on divestitures, net | | | 18 | | | | (2 | ) | | | 18 | | | | (15 | ) |
Unrealized (gains) losses on derivatives, net | | | (178 | ) | | | 305 | | | | 75 | | | | (240 | ) |
Other | | | 27 | | | | 106 | | | | 61 | | | | 206 | |
Discretionary Cash Flow from Operations | | | 1,838 | | | | 1,278 | | | | 3,512 | | | | 2,808 | |
(Increase) decrease in accounts receivable | | | (284 | ) | | | 32 | | | | (535 | ) | | | 5 | |
Increase (decrease) in accounts payable and accrued expenses | | | 418 | | | | 52 | | | | 241 | | | | (229 | ) |
Other items—net | | | (135 | ) | | | 204 | | | | (92 | ) | | | 299 | |
Net Cash Provided by Operating Activities | | $ | 1,837 | | | $ | 1,566 | | | $ | 3,126 | | | $ | 2,883 | |
| | | | | | | | | | | | | | | | |
Capital Expenditures | | $ | 1,721 | | | $ | 1,367 | | | $ | 3,308 | | | $ | 2,606 | |
| | | | |
millions | | | | | | | | | |
| June 30,
2011 |
| |
| December 31,
2010 |
|
Condensed Balance Sheets | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | | | | | | | $ | 3,406 | | | $ | 3,680 | |
Other current assets | | | | | | | | | | | 3,464 | | | | 2,995 | |
Net properties and equipment | | | | | | | | | | | 38,343 | | | | 37,957 | |
Other assets | | | | | | | | | | | 1,568 | | | | 1,616 | |
Goodwill and other intangible assets | | | | | | | | | | | 5,836 | | | | 5,311 | |
Total Assets | | | | | | | | | | $ | 52,617 | | | $ | 51,559 | |
Current debt | | | | | | | | | | $ | 425 | | | $ | 291 | |
Other current liabilities | | | | | | | | | | | 3,702 | | | | 3,823 | |
Long-term debt | | | | | | | | | | | 12,801 | | | | 12,722 | |
Other long-term liabilities | | | | | | | | | | | 13,341 | | | | 13,284 | |
Stockholders’ equity | | | | | | | | | | | 21,471 | | | | 20,684 | |
Noncontrolling interests | | | | | | | | | | | 877 | | | | 755 | |
Total Liabilities and Equity | | | | | | | | | | $ | 52,617 | | | $ | 51,559 | |
Capitalization | | | | | | | | | | | | | | | | |
Total debt | | | | | | | | | | $ | 13,226 | | | $ | 13,013 | |
Stockholders’ equity | | | | | | | | | | | 21,471 | | | | 20,684 | |
Total | | | | | | | | | | $ | 34,697 | | | $ | 33,697 | |
Capitalization Ratios | | | | | | | | | | | | | | | | |
Total debt | | | | | | | | | | | 38% | | | | 39% | |
Stockholders’ equity | | | | | | | | | | | 62% | | | | 61% | |
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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 June 30, 2011 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
United States | | | 2,326 | | | | 134 | | | | 72 | | | | 212 | | | | 12 | | | | 6 | | | $ | 4.11 | | | $ | 104.68 | | | $ | 56.21 | |
Algeria | | | | | | | 58 | | | | | | | | | | | | 5 | | | | | | | | | | | | 115.93 | | | | | |
Other International | | | | | | | 33 | | | | | | | | | | | | 3 | | | | | | | | | | | | 114.29 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 2,326 | | | | 225 | | | | 72 | | | | 212 | | | | 20 | | | | 6 | | | $ | 4.11 | | | $ | 108.99 | | | $ | 56.21 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Quarter Ended June 30, 2010 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
United States | | | 2,324 | | | | 130 | | | | 66 | | | | 212 | | | | 12 | | | | 6 | | | $ | 3.79 | | | $ | 73.89 | | | $ | 39.05 | |
Algeria | | | | | | | 53 | | | | | | | | | | | | 5 | | | | | | | | | | | | 75.51 | | | | | |
Other International | | | | | | | 15 | | | | | | | | | | | | 1 | | | | | | | | | | | | 76.18 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 2,324 | | | | 198 | | | | 66 | | | | 212 | | | | 18 | | | | 6 | | | $ | 3.79 | | | $ | 74.49 | | | $ | 39.05 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Six Months Ended June 30, 2011 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
United States | | | 2,369 | | | | 133 | | | | 74 | | | | 429 | | | | 24 | | | | 13 | | | $ | 4.02 | | | $ | 98.23 | | | $ | 52.47 | |
Algeria | | | | | | | 57 | | | | | | | | | | | | 10 | | | | | | | | | | | | 107.44 | | | | | |
Other International | | | | | | | 29 | | | | | | | | | | | | 5 | | | | | | | | | | | | 108.81 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 2,369 | | | | 219 | | | | 74 | | | | 429 | | | | 39 | | | | 13 | | | $ | 4.02 | | | $ | 102.04 | | | $ | 52.47 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six Months Ended 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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | | |
| | | Average Daily Volumes
MBOE/d | | Sales Volumes
MMBOE | | |
| | | |
Quarter Ended June 30, 2011 | | 685 | | 62 | | |
Quarter Ended June 30, 2010 | | 651 | | 59 | | |
| | | |
Six Months Ended June 30, 2011 | | 688 | | 124 | | |
Six Months Ended June 30, 2010 | | 668 | | 121 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Sales Revenue and Commodity Derivatives | |
| | | Sales | | | | | | | Commodity Derivatives Gain (Loss) | |
| | | | | | | | | | | | |
| | | | | | Crude Oil & | | | | | | | | | | Natural Gas | | | Crude Oil & Condensate | | | NGLs | |
| millions | | Natural Gas | | | Condensate | | | NGLs | | | | | | | Realized | | | Unrealized | | | Realized | | | Unrealized | | | Realized | | | Unrealized | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Quarter Ended June 30, 2011 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
United States | | $ | 870 | | | $ | 1,279 | | | $ | 370 | | | | | | | $ | 71 | | | $ | (14 | ) | | $ | (44 | ) | | $ | 330 | | | $ | — | | | $ | — | |
Algeria | | | | | | | 613 | | | | | | | | | | | | | | | | | | | | — | | | | — | | | | | | | | | |
Other International | | | | | | | 344 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 870 | | | $ | 2,236 | | | $ | 370 | | | | | | | $ | 71 | | | $ | (14 | ) | | $ | (44 | ) | | $ | 330 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | |
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 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | |
Six Months Ended June 30, 2011 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
United States | | $ | 1,724 | | | $ | 2,359 | | | $ | 703 | | | | | | | $ | 143 | | | $ | (61 | ) | | $ | (56 | ) | | $ | 55 | | | $ | — | | | $ | — | |
Algeria | | | | | | | 1,104 | | | | | | | | | | | | | | | | | | | | (3 | ) | | | 9 | | | | | | | | | |
Other International | | | | | | | 580 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 1,724 | | | $ | 4,043 | | | $ | 703 | | | | | | | $ | 143 | | | $ | (61 | ) | | $ | (59 | ) | | $ | 64 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | |
Six Months Ended 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 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
11
Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of July 25, 2011
| | | | | | | | | | | | | | | | |
| | | 3rd Qtr
Guidance | | Total Year
Guidance |
| | |
| | | Units | | Units |
| | | | | | |
Total Sales (MMBOE) | | 58 | | | - | | | 61 | | 244 | | | - | | | 248 |
| | | | | | |
Crude Oil (MBbl/d): | | 197 | | | - | | | 210 | | 215 | | | - | | | 219 |
| | | | | | |
United States | | 119 | | | - | | | 125 | | 127 | | | - | | | 129 |
Algeria | | 53 | | | - | | | 56 | | 55 | | | - | | | 56 |
Other International | | 25 | | | - | | | 29 | | 33 | | | - | | | 35 |
| | | | | | |
Natural Gas (MMcf/d): | | | | | | | | | | | | | | | | |
| | | | | | |
United States | | 2,225 | | | - | | | 2,275 | | 2,300 | | | - | | | 2,350 |
| | | | | | |
Natural Gas Liquids (MBbl/d): | | | | | | | | | | | | | | | | |
| | | | | | |
United States | | 68 | | | - | | | 72 | | 70 | | | - | | | 72 |
| | | | | | |
| | | | | | | | | | | | | | | | | |
| | |
| | | $ / Unit | | $ / Unit |
Price Differentials vs NYMEX (w/o hedges) | | | | | | | | | | | | | | | | |
| | | | | | |
Crude Oil ($/Bbl): | | 2.00 | | | - | | | 3.00 | | 2.50 | | | - | | | 3.50 |
| | | | | | |
United States | | 0.00 | | | - | | | (2.00) | | (1.00) | | | - | | | (2.00) |
Algeria | | 10.00 | | | - | | | 12.00 | | 10.00 | | | - | | | 11.00 |
Other International | | 8.00 | | | - | | | 10.00 | | 9.00 | | | - | | | 10.00 |
| | | | | | |
Natural Gas ($/Mcf): | | | | | | | | | | | | | | | | |
| | | | | | |
United States | | (0.15) | | | - | | | (0.25) | | (0.15) | | | - | | | (0.25) |
12
Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of July 25, 2011
| | | | | | | | | | | | | | | | |
| | | 3rd Qtr
Guidance | | Total Year
Guidance |
| | |
| | | $ MM | | $ MM |
Other Revenues: | | | | | | | | | | | | | | | | |
Marketing and Gathering Margin | | 45 | | | - | | | 65 | | 220 | | | - | | | 260 |
Minerals and Other | | 25 | | | - | | | 35 | | 60 | | | - | | | 80 |
| | | | | | |
| | | | | | | | | | | | | | | | | |
Costs and Expenses: | | | | | | | | | | | | | | | | |
| | | $ / Boe | | $ / Boe |
| | | | | | |
Oil & Gas Direct Operating | | 3.90 | | | - | | | 4.20 | | 3.80 | | | - | | | 4.20 |
Oil & Gas Transportation/Other | | 3.30 | | | - | | | 3.55 | | 3.30 | | | - | | | 3.55 |
Depreciation, Depletion and Amortization | | 15.50 | | | - | | | 15.80 | | 15.60 | | | - | | | 15.80 |
Production Taxes (% of Revenue) | | 11.5% | | | - | | | 12.5% | | 11.0% | | | - | | | 12.0% |
| | |
| | | $ MM | | $ MM |
| | | | | | |
General and Administrative | | 260 | | | - | | | 280 | | 1,050 | | | - | | | 1,100 |
Exploration Expense | | | | | | | | | | | | | | | | |
Non-Cash | | 160 | | | - | | | 210 | | 600 | | | - | | | 700 |
Cash | | 95 | | | - | | | 120 | | 350 | | | - | | | 400 |
Interest Expense (net) | | 200 | | | - | | | 220 | | 840 | | | - | | | 850 |
Other (Income) Expense | | - | | | - | | | 20 | | 20 | | | - | | | 40 |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Tax Rate | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Algeria (All Current) | | 55% | | | - | | | 65% | | 55% | | | - | | | 65% |
Rest of Company (All Current for 3Q and 35% for FY) | | 35% | | | - | | | 45% | | 35% | | | - | | | 45% |
| | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | |
Avg. Shares Outstanding (MM) | | | | | | | | | | | | | | | | |
| | | | | | |
Basic | | 497 | | | - | | | 499 | | 497 | | | - | | | 499 |
Diluted | | 499 | | | - | | | 501 | | 499 | | | - | | | 501 |
| | |
| | | $ MM | | $ MM |
Capital Investment * | | | | | | | | | | | | | | | | |
| | | | | | |
Capital Expenditures | | 1,400 | | | - | | | 1,600 | | 6,060 | | | - | | | 6,450 |
Capitalized Interest | | 35 | | | - | | | 45 | | 140 | | | - | | | 150 |
* Excludes Western Gas Partners , LP (WES)
13
| | Floor Purchased | | Floor Purchased | | Floor Purchased | | Floor Purchased |
| Anadarko Petroleum Corporation |
| Commodity Hedge Positions (Excluding Natural Gas Basis) |
| As of July 25, 2011 |
| | |
| | | Volume | | Weighted Average Price per MMBtu |
| | | (thousand
MMBtu/d) | | 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 |
2013 | | 450 | | $ 4.00 | | $ 5.00 | | $ 6.57 |
| | | | |
Fixed Price - Financial | | | | | | | | |
2011 | | 90 | | $ 6.17 | | | | |
| | |
| | | | | Weighted Average Price per barrel |
| | | Volume
(MBbls/d) | | 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 |
| | MMBtu/d) | | MMBtu/d) |
|
| Anadarko Petroleum Corporation |
| Natural Gas Basis Hedge Positions |
| As of July 25, 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 July 25, 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 | | |
| | | | | | | | | | | | | | | |
