Exhibit 99.1
Anadarko Reports 2006 Fourth-Quarter and Full-Year Results
HOUSTON--(BUSINESS WIRE)--Feb. 6, 2007--Anadarko Petroleum
Corporation (NYSE:APC) today announced fourth-quarter and full-year
2006 financial and operational results.
"In 2006, we announced and closed two significant acquisitions and
embarked on an asset optimization process that is setting the stage
for future performance," Anadarko Chairman, President and CEO Jim
Hackett said. "Our focused asset base is already delivering better oil
and natural gas volumes and exploration success. This portfolio is
expected to drive very competitive, consistent growth."
FOURTH-QUARTER 2006 RESULTS
Fourth-quarter net income available to common shareholders was
$1.92 billion, or $4.13 per share (diluted), on revenues of $3.18
billion, and income from continuing operations was $186 million, or
$.40 per share (diluted). These results included international
impairments amounting to $329 million after tax, or $.71 per share
(diluted), severance costs amounting to $52 million after tax, or $.11
per share (diluted), and unrealized losses on derivatives of $26
million after tax, or $.06 per share (diluted), partially offset by
realized gains on derivatives of $167 million after tax, or $.36 per
share (diluted). In addition, net income included a gain of $1.77
billion after tax, or $3.80 per share (diluted), on the sale of
Anadarko's Canadian subsidiary.
By comparison, net income for the fourth quarter of 2005 was $874
million, or $1.87 per share (diluted), on revenues of $1.92 billion.
Fourth-quarter 2005 net income included costs associated with certain
legal proceedings and international impairments amounting to $84
million after tax, or $.18 per share (diluted), partially offset by
unrealized gains on commodity-related derivatives and gains from the
company's firm transportation keep-whole agreement that totaled $50
million after tax, or $.11 per share (diluted).
Cash flow from operating activities of continuing operations was
$1.61 billion in the fourth-quarter 2006, and discretionary cash flow
totaled $1.73 billion (1).
Sales volumes of natural gas, crude oil and natural gas liquids
from continuing operations in the fourth-quarter 2006 totaled 61
million barrels of oil equivalent (BOE), or 665,000 BOE per day.
Natural gas sales volumes from continuing operations averaged 2.23
billion cubic feet per day. Oil sales volumes from continuing
operations averaged 243,000 barrels per day. Natural gas liquids sales
volumes from continuing operations averaged 51,000 barrels per day.
Overall sales volumes were up from the third-quarter 2006, due to
a full quarter of production related to acquisitions and record
production rates from the company's Greater Natural Buttes and Powder
River Basin properties in the Rocky Mountain region and Haley in West
Texas.
FULL-YEAR 2006 RESULTS
Anadarko reported full-year 2006 net income available to common
shareholders of $4.85 billion, or $10.46 per share (diluted), on
revenues of $10.19 billion, and income from continuing operations of
$2.80 billion, or $6.02 per share (diluted). Net income in 2005 was
$2.47 billion, or $5.19 per share (diluted), on revenues of $6.19
billion.
Cash flow from operating activities of continuing operations
totaled $5.03 billion in 2006. Discretionary cash flow totaled $4.91
billion (1).
Sales volumes of natural gas, crude oil and natural gas liquids
from continuing operations for 2006 totaled 178 million BOE, up from
2005 volumes of 138 million BOE.
"Following the acquisitions of Kerr-McGee and Western Gas
Resources in the third quarter of 2006, we began efforts to build a
more balanced portfolio with a lower-risk reserve and production
profile," Hackett said. "In terms of asset divestitures, we have
continued to meet our expectations. The market remains robust, and we
have announced the execution of agreements to divest of properties
approaching nearly $9 billion of after-tax proceeds. That puts us well
on our way to reducing the debt associated with the acquisitions."
Additional 2006 operational highlights include: advancement of the
Independence Hub project, which remains on budget and on schedule to
deliver first production in the second half of 2007; nine deepwater
Gulf of Mexico discoveries out of 14 attempts; and production start-up
at new fields in Alaska and China.
PROVED RESERVES
Anadarko added 1.04 billion BOE of proved reserves, excluding
sales of reserves in place, primarily from acquisitions completed
during 2006. Net of property sales, the company ended 2006 with a
total of 3.0 billion BOE, up 23 percent from year-end 2005. Organic
reserve additions of 248 million BOE - those derived from the drilling
program - came primarily from core U.S. onshore properties such as the
Greater Natural Buttes and Wattenberg fields and coalbed methane and
enhanced oil recovery projects in the Rockies, as well as the Haley,
Bossier and Carthage fields in Texas. Anadarko's year-end 2006 proved
reserves were balanced between natural gas (58 percent, or 10.5
trillion cubic feet) and liquids (42 percent, or 1.3 billion barrels),
which include crude oil, condensate and natural gas liquids. Downward
reserve revisions included 99 million BOE resulting from lower prices
at year end and 136 million BOE due to performance issues, most
notably at the K2 complex in the deepwater Gulf of Mexico.
"Our 2006 organic reserve replacement rate was impacted by
downward reserve revisions and is not indicative of the success of our
exploration program. For example, the sale of the Genghis Khan, Knotty
Head and Big Foot deepwater discoveries generated substantial value,
selling for $2.3 billion from an initial investment of approximately
$300 million, prior to fully booking these discoveries. Going forward,
we have a pipeline of reserves ready to bring on from a portfolio of
longer-lived, less-capital-intensive resource plays in the Rockies, in
addition to existing discoveries in the Gulf of Mexico and Brazil,"
Hackett said.
CONFERENCE CALL TODAY AT 9 A.M. CST, 10 A.M. EST
Anadarko will host a conference call on Tuesday, Feb. 6, at 9 a.m.
Central Standard Time (10 a.m. Eastern Standard Time) to discuss 2006
results and the company's outlook for 2007. The dial-in number is
913.981.5523, and the confirmation number is 4471952. For complete
instructions on how to actively participate in the conference call, or
to listen to the live audio web cast or a replay, please refer to
www.anadarko.com.
ANADARKO OPERATIONS REPORT
For more details on Anadarko's operations, please refer to the
comprehensive report on 2006 drilling activity. The report will be
available at www.anadarko.com on the Investor Relations page.
FINANCIAL DATA
Ten pages of summary financial and reserves data follow, including
current hedge positions and guidance for 2007.
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 2006, the
company had 3.0 billion barrels-equivalent of proved reserves, making
it one of the world's largest independent exploration and production
companies. In August 2006, Anadarko acquired Kerr-McGee Corporation
and Western Gas Resources, Inc. in separate transactions. For more
information about how Anadarko is bringing excellence to the surface,
please visit: www.anadarko.com.
(1) See the accompanying table for a reconciliation of GAAP to
non-GAAP financial measures and a statement indicating why management
believes the non-GAAP measures are useful information for investors.
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. 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. Anadarko cannot guarantee
that it will successfully integrate the recently acquired businesses
or complete its pending or proposed asset sales, nor can it guarantee
the outcome from the proceedings related to the Algerian exceptional
profits tax. See "Risk Factors" in the company's 2005 Annual Report on
Form 10-K and other public filings, press releases and discussions
with company management. Anadarko undertakes no obligation to publicly
update or revise any forward-looking statements.
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
Below is a reconciliation of cash provided by operating activities
(GAAP) to discretionary cash flow (non-GAAP) as required under
Regulation G of the Securities Exchange Act of 1934. The company
uses discretionary 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.
Quarter Ended Year Ended
December 31 December 31
--------------- ---------------
millions 2006 2005 2006 2005
- ----------------------------------------------------------------------
Cash Flow
- ----------------------------------------------------------------------
Net cash provided by operating
activities - continuing operations $1,610 $1,040 $5,030 $3,502
Add back:
Change in accounts receivable 70 243 (318) 516
Change in accounts payable and
accrued expenses (208) (118) 35 (351)
Change in other items - net 256 6 159 49
- ----------------------------------------------------------------------
Discretionary Cash Flow from
Continuing Operations $1,728 $1,171 $4,906 $3,716
- ----------------------------------------------------------------------
Anadarko Petroleum Corporation
Quarter Ended Year Ended
Summary Financial Information December 31 December 31
--------------- ---------------
$ and shares in millions 2006 2005 2006 2005
- ----------------------------------------------------------------------
Revenues
- ----------------------------------------------------------------------
Gas sales $1,269 $1,007 $4,186 $2,968
Oil and condensate sales 1,297 748 4,601 2,703
Natural gas liquids sales 165 116 594 437
Gathering, processing and marketing
sales 415 65 718 76
Other 33 (19) 88 3
- ----------------------------------------------------------------------
Total 3,179 1,917 10,187 6,187
- ----------------------------------------------------------------------
Costs and Expenses
- ----------------------------------------------------------------------
Oil and gas operating 315 110 799 400
Oil and gas transportation and other 89 73 341 256
Gathering, processing and marketing 325 15 553 56
General and administrative 281 118 668 393
Depreciation, depletion and
amortization 775 291 1,976 1,111
Other taxes 240 90 575 358
Impairments 357 65 388 78
- ----------------------------------------------------------------------
Total 2,382 762 5,300 2,652
- ----------------------------------------------------------------------
Operating Income 797 1,155 4,887 3,535
- ----------------------------------------------------------------------
Interest Expense and Other (Income)
Expense
- ----------------------------------------------------------------------
Interest expense 342 50 655 206
Other (income) expense 15 (45) (6) (76)
- ----------------------------------------------------------------------
Total 357 5 649 130
- ----------------------------------------------------------------------
Income from Continuing Operations,
Before Income Taxes 440 1,150 4,238 3,405
- ----------------------------------------------------------------------
Income Tax Expense 254 476 1,442 1,332
- ----------------------------------------------------------------------
Income from Continuing Operations $186 $674 $2,796 $2,073
- ----------------------------------------------------------------------
Income from Discontinued Operations,
net of taxes 1,731 201 2,058 398
- ----------------------------------------------------------------------
Net Income $1,917 $875 $4,854 $2,471
- ----------------------------------------------------------------------
Preferred Stock Dividends 1 1 3 5
- ----------------------------------------------------------------------
Net Income Available to Common
Stockholders $1,916 $874 $4,851 $2,466
- ----------------------------------------------------------------------
Per Common Share
- ----------------------------------------------------------------------
Income from continuing operations -
basic $0.40 $1.45 $6.06 $4.40
Income from continuing operations -
diluted $0.40 $1.43 $6.02 $4.36
Income from discontinued operations,
net of taxes - basic $3.75 $0.43 $4.47 $0.85
Income from discontinued operations,
net of taxes - diluted $3.73 $0.43 $4.44 $0.84
Net income Available to Common
Stockholders - basic $4.14 $1.88 $10.54 $5.24
Net income Available to Common
Stockholders - diluted $4.13 $1.87 $10.46 $5.19
- ----------------------------------------------------------------------
Average Number of Common Shares
Outstanding - Basic 462 464 460 470
- ----------------------------------------------------------------------
Average Number of Common Shares
Outstanding - Diluted 464 469 464 475
- ----------------------------------------------------------------------
Anadarko Petroleum Corporation
Quarter Ended Year Ended
Summary Financial December 31 December 31
Information
------------------------- --------------------------
$ in millions 2006 2005 2006 2005
- ----------------------------------------------------------------------
Cash Flow from
Operating
Activities
- ----------------------------------------------------------------------
Net income $1,917 $875 $4,854 $2,471
Less income from
discontinued
operations, net
of taxes (1,731) (201) (2,058) (398)
Depreciation,
depletion and
amortization 775 291 1,976 1,111
Deferred income
taxes 305 271 523 480
Impairments 357 65 388 78
Unrealized
(gains) losses
on derivatives 46 (105) (837) 7
Other noncash
items 59 (25) 60 (33)
- ----------------------------------------------------------------------
Discretionary
Cash Flow from
Continuing
Operations 1,728 1,171 4,906 3,716
(Increase)
decrease in
accounts
receivable (70) (243) 318 (516)
Increase
(decrease) in
accounts payable
and accrued
expenses 208 118 (35) 351
Other items - net (256) (6) (159) (49)
- ----------------------------------------------------------------------
Cash provided by
operating
activities -
continuing
operations 1,610 1,040 5,030 3,502
Cash provided by
operating
activities -
discontinued
operations (573) 231 (126) 644
- ----------------------------------------------------------------------
Net Cash Provided
by Operating
Activities $1,037 $1,271 $4,904 $4,146
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
Capital
Expenditures
- ----------------------------------------------------------------------
Capital spending $1,660 $848 $4,356 $2,740
Capitalized
interest 28 15 75 60
Capitalized
overhead 47 43 171 143
- ----------------------------------------------------------------------
Capital
expenditures -
continuing
operations 1,735 906 4,602 2,943
Capital
expenditures -
discontinued
operations 68 124 588 494
- ----------------------------------------------------------------------
Total $1,803 $1,030 $5,190 $3,437
- ----------------------------------------------------------------------
December 31, September 30, December 31,
2006 2006 2005
- ----------------------------------------------------------------------
Condensed Balance
Sheet
- ----------------------------------------------------------------------
Cash and cash
equivalents $491 $1,803 $561
Other current
assets 3,844 3,140 1,878
Current assets
held for sale 80 407 477
Net properties
and equipment 48,976 42,305 15,195
Other assets 865 1,093 561
Goodwill and
other intangible
assets 4,468 8,053 1,089
Long-term assets
held for sale 10 3,375 2,827
- ----------------------------------------------------------------------
Total Assets $58,734 $60,176 $22,588
- ----------------------------------------------------------------------
Current debt $11,471 $16,663 $80
Other current
liabilities 5,034 4,177 1,984
Current
liabilities
associated with
assets held for
sale 54 339 339
Long-term debt 11,520 11,163 3,547
Other long-term
liabilities 15,742 13,264 4,812
Other long-term
liabilities
associated with
assets held for
sale - 798 775
Stockholders'
equity 14,913 13,772 11,051
- ----------------------------------------------------------------------
Total Liabilities
and
Stockholders'
Equity $58,734 $60,176 $22,588
- ----------------------------------------------------------------------
Capitalization
- ----------------------------------------------------------------------
Total debt $22,991 $27,826 $3,627
Stockholders'
equity 14,913 13,772 11,051
- ----------------------------------------------------------------------
Total $37,904 $41,598 $14,678
- ----------------------------------------------------------------------
Capitalization
Ratios
- ----------------------------------------------------------------------
Total debt 61% 67% 25%
Stockholders'
equity 39% 33% 75%
- ----------------------------------------------------------------------
Anadarko Petroleum Corporation
Quarter Ended Year Ended
Volumes and Prices December 31 December 31
--------------- ---------------
2006 2005 2006 2005
- ----------------------------------------------------------------------
Natural Gas
- ----------------------------------------------------------------------
United States
- ----------------------------------------------------------------------
Volumes, billion cubic feet 205 102 558 414
Average daily volumes, million cubic
feet per day 2,226 1,114 1,529 1,136
Price per thousand cubic feet
excluding derivatives $5.55 $10.23 $6.14 $7.44
- ----------------------------------------------------------------------
Gains (losses) on derivatives $0.65 $(0.40) $1.36 $(0.28)
- ----------------------------------------------------------------------
Total price per thousand cubic feet $6.20 $9.83 $7.50 $7.16
- ----------------------------------------------------------------------
Crude Oil and Condensate
- ----------------------------------------------------------------------
United States
- ----------------------------------------------------------------------
Volumes, million barrels 13 6 39 24
Average daily volumes, thousand
barrels per day 152 70 108 68
Price per barrel excluding derivatives $53.50 $55.43 $59.41 $51.67
- ----------------------------------------------------------------------
Gains (losses) on derivatives $6.27 $(4.19) $9.18 $(7.32)
- ----------------------------------------------------------------------
Price per barrel $59.77 $51.24 $68.59 $44.35
- ----------------------------------------------------------------------
Algeria
- ----------------------------------------------------------------------
Volumes, million barrels 6 6 23 24
Average daily volumes, thousand
barrels per day 62 61 64 65
Price per barrel $59.88 $56.92 $65.59 $54.38
- ----------------------------------------------------------------------
Other International
- ----------------------------------------------------------------------
Volumes, million barrels 3 2 8 8
Average daily volumes, thousand
barrels per day 29 26 21 22
Price per barrel $43.59 $43.48 $48.58 $39.37
- ----------------------------------------------------------------------
Total
- ----------------------------------------------------------------------
Volumes, million barrels 22 14 70 56
Average daily volumes, thousand
barrels per day 243 157 193 155
Price per barrel excluding derivatives $53.94 $54.05 $60.29 $51.03
- ----------------------------------------------------------------------
Gains (losses) on derivatives $3.94 $(1.85) $5.15 $(3.19)
- ----------------------------------------------------------------------
Total price per barrel $57.88 $52.20 $65.44 $47.84
- ----------------------------------------------------------------------
Natural Gas Liquids
- ----------------------------------------------------------------------
United States
- ----------------------------------------------------------------------
Volumes, million barrels 5 3 15 13
Average daily volumes, thousand
barrels per day 51 32 42 36
Price per barrel excluding derivatives $35.76 $39.12 $39.71 $34.56
- ----------------------------------------------------------------------
Gains (losses) on derivatives $- $- $(0.13) $-
- ----------------------------------------------------------------------
Total price per barrel $35.76 $39.12 $39.58 $34.56
- ----------------------------------------------------------------------
Total Barrels of Oil Equivalent (BOE)
- continuing operations
- ----------------------------------------------------------------------
Volumes, million BOE 61 34 178 138
Average daily volumes, thousand BOE
per day 665 374 489 379
- ----------------------------------------------------------------------
Total Barrels of Oil Equivalent (BOE)
- discontinued operations
- ----------------------------------------------------------------------
Volumes, million BOE 2 5 17 20
Average daily volumes, thousand BOE
per day 19 55 45 55
- ----------------------------------------------------------------------
Total Barrels of Oil Equivalent (BOE)
- ----------------------------------------------------------------------
Volumes, million BOE 63 39 195 158
Average daily volumes, thousand BOE
per day 684 429 534 434
Anadarko Petroleum Corporation
Oil and Gas Reserves
Total
Other Continuing Discontinued
U.S. Algeria Int'l Operations Operations Total
- ----------------------------------------------------------------------
Total (MMBOE)
- ----------------------------------------------------------------------
Proved Reserves
- ----------------------------------------------------------------------
December 31,
2005 1,805 324 58 2,187 262 2,449
Revisions of
prior estimates
Performance (115) (20) (1) (136) - (136)
Price-related (98) (1) 2 (97) (2) (99)
Extensions,
discoveries and
other additions 210 6 - 216 5 221
Improved
recovery 27 - - 27 - 27
Purchases in
place 990 - 40 1,030 - 1,030
Sales in place - - (39) (39) (248) (287)
Production (147) (22) (8) (177) (17) (194)
- ----------------------------------------------------------------------
December 31,
2006 2,672 287 52 3,011 - 3,011
- ----------------------------------------------------------------------
Proved Developed
Reserves
- ----------------------------------------------------------------------
December 31,
2005 1,099 195 31 1,325 199 1,524
December 31,
2006 1,775 176 38 1,989 - 1,989
- ----------------------------------------------------------------------
Natural Gas
(Bcf)
- ----------------------------------------------------------------------
Proved Reserves
- ----------------------------------------------------------------------
December 31,
2005 6,578 - - 6,578 1,332 7,910
Revisions of
prior estimates
Performance (474) - - (474) - (474)
Price-related (477) - - (477) (14) (491)
Extensions,
discoveries and
other additions 1,151 - - 1,151 31 1,182
Improved
recovery 11 - - 11 - 11
Purchases in
place 4,256 - - 4,256 - 4,256
Sales in place (1) - - (1) (1,263) (1,264)
Production (558) - - (558) (86) (644)
- ----------------------------------------------------------------------
December 31,
2006 10,486 - - 10,486 - 10,486
- ----------------------------------------------------------------------
Proved Developed
Reserves
- ----------------------------------------------------------------------
December 31,
2005 4,553 - - 4,553 1,024 5,577
December 31,
2006 7,618 - - 7,618 - 7,618
- ----------------------------------------------------------------------
Oil, Condensate
and NGLs
(MMBbls)
- ----------------------------------------------------------------------
Proved Reserves
- ----------------------------------------------------------------------
December 31,
2005 708 324 58 1,090 40 1,130
Revisions of
prior estimates
Performance (36) (20) (1) (57) - (57)
Price-related (17) (1) 2 (16) - (16)
Extensions,
discoveries and
other additions 18 6 - 24 - 24
Improved
recovery 25 - - 25 - 25
Purchases in
place 281 - 40 321 - 321
Sales in place - - (39) (39) (38) (77)
Production (54) (22) (8) (84) (2) (86)
- ----------------------------------------------------------------------
December 31,
2006 925 287 52 1,264 - 1,264
- ----------------------------------------------------------------------
Proved Developed
Reserves
- ----------------------------------------------------------------------
December 31,
2005 340 195 31 566 28 594
December 31,
2006 505 176 38 719 - 719
- ----------------------------------------------------------------------
Anadarko Petroleum Corporation
Costs Incurred and Capital Expenditures
millions 2006
- ----------------------------------------------------------------------
Cost Incurred
- ----------------------------------------------------------------------
United States
Property acquisition
Exploration $11,929
Development 13,893
Exploration 764
Development 3,196
- ----------------------------------------------------------------------
Total 29,782
- ----------------------------------------------------------------------
Algeria
Property acquisition
Development 3
Exploration 23
Development 58
- ----------------------------------------------------------------------
Total 84
- ----------------------------------------------------------------------
Other International
Property acquisition
Exploration 1,405
Development 600
Exploration 111
Development 56
- ----------------------------------------------------------------------
Total 2,172
- ----------------------------------------------------------------------
Total Continuing Operations
Property acquisition
Exploration 13,334
Development 14,496
Exploration 898
Development 3,310
- ----------------------------------------------------------------------
Total 32,038
- ----------------------------------------------------------------------
Discontinued Operations
Property acquisition
Exploration 54
Development 1
Exploration 106
Development 414
- ----------------------------------------------------------------------
Total 575
- ----------------------------------------------------------------------
Total Cost Incurred
Property acquisition
Exploration 13,388
Development 14,497
Exploration 1,004
Development 3,724
- ----------------------------------------------------------------------
Total 32,613
- ----------------------------------------------------------------------
Reconciliation to Capital Expenditures
- ----------------------------------------------------------------------
Less: Corporate acquisitions and property exchanges -
Exploration (13,001)
- Development (14,490)
Less: Asset retirement costs (396)
Plus: Asset retirement expenditures 31
- ----------------------------------------------------------------------
Total Oil & Gas Capital Expenditures $4,757
Other Capital Expenditures 433
- ----------------------------------------------------------------------
Total Capital Expenditures $5,190
- ----------------------------------------------------------------------
Anadarko Petroleum Corporation
Financial and Operating Guidance
Continuing Operations
As of Feb 6, 2007
1st Quarter Total Year
2007 Forecast 2007 Forecast
---------------- ----------------
Units Units
---------------- ----------------
Total Sales (MMBOE) (a) 56 - 58 193 - 209
Crude Oil (MBbl/d): 229 - 239 187 - 209
United States 145 - 149 110 - 128
Algeria 60 - 64 60 - 62
Other International 24 - 26 17 - 19
Natural Gas (MMcf/d): 2,125 - 2200 1,875 - 1980
United States 2,125 - 2200 1,875 - 1980
Natural Gas Liquids (MBbl/d): 38 - 41 30 - 33
United States 38 - 41 30 - 33
(a) Sales include volumes associated with divestitures of 9-12 MMBOE
for the quarter and 16-22 MMBOE for the year.
- ----------------------------------------------------------------------
$/ Unit $/ Unit
---------------- ----------------
Price Differentials vs NYMEX (w/o
hedges)
Crude Oil ($/Bbl): (5.50)- (7.50) (5.50)- (7.50)
United States (7.00)- (9.00) (8.00)- (10.00)
Algeria (1.25)- (1.75) (1.25)- (1.75)
Other International (12.00)- (15.00) (12.00)- (15.00)
Natural Gas ($/Mcf): (1.00)- (1.60) (0.80)- (1.40)
United States (1.00)- (1.60) (0.80)- (1.40)
Anadarko Petroleum Corporation
Financial and Operating Guidance
Continuing Operations
As of Feb 6, 2007
1st Quarter Total Year
2007 Forecast 2007 Forecast
------------------ ----------------
$MM $MM
------------------ ----------------
Other Revenues:
Gathering, Processing &
Marketing Margins 55 - 65 175 - 195
Minerals and Other 35 - 40 130 - 160
- ----------------------------------------------------------------------
Costs and Expenses:
$ / Boe $ / Boe
------------------ ----------------
Oil & Gas Lease Operating 5.50 - 5.75 5.00 - 5.25
Oil & Gas Transportation 1.25 - 1.75 1.25 - 1.75
Depreciation, Depletion and
Amortization 13.00 - 13.50 13.00 - 13.50
Production Taxes (% of Revenue) 8.5% - 9.0% 8.5% - 9.0%
$MM $MM
------------------ ----------------
General and Administrative 200 - 210 650 - 700
(excludes restructuring
charges)
Impairments Related to Oil and
Gas Properties - - 25 - - 100
Interest Expense 350 - 370 950 - 975
Deferred Taxes (% of Total
Taxes) 20% - 40% 20% - 40%
- ----------------------------------------------------------------------
Avg. Shares Outstanding (MM)
Basic 465 - 466 468 - 470
Diluted 465 - 466 469 - 471
$MM $MM
------------------ ----------------
Capital Investment 1,050 - 1,150 4,200 - 4,400
Capital Projects 975 - 1,060 3,900 - 4,030
Capitalized Direct Expenses 50 - 60 200 - 250
Capitalized Interest 25 - 30 100 - 120
Anadarko Petroleum Corporation
Commodity Hedge Position 2007 and Beyond
As of February 6, 2007
------------------ -----------------------------
Fixed and Physical 2- Way Collars
------------------ -----------------------------
- -------------------- ------------------ -----------------------------
NYMEX
Volume Price Volume Floor Ceiling
Crude Oil Bbl/day $/Bbl Bbl/day $/Bbl $/Bbl
- -------------------- ------------------ -----------------------------
United States
------------------ -----------------------------
Total Year 2007 27,250 $51.44 18,542 $44.33 $60.40
------------------ -----------------------------
Total Year 2008
Total Year 2009
Total Year 2010
Total Year 2011
Total Year 2012
Algeria
Total Year 2008
Total Year 2009
Total Year 2010
Total Crude Oil, All Locations
------------------ -----------------------------
Total Year 2007 27,250 $51.44 18,542 $44.33 $60.40
------------------ -----------------------------
Total Year 2008
Total Year 2009
Total Year 2010
Total Year 2011
Total Year 2012
Divestiture Hedges (Not included with
hedges above)
Total Year 2007 2,449 $56.34
Total Year 2008 2,000 $59.60
Total Year 2009 2,000 $59.98
- -------------------- ------------------ -----------------------------
Volume NYMEX Volume Floor Ceiling
Price
Natural Gas MMMBtu/d $/MMBtu MMMBtu/d $/MMBtu $/MMBtu
- -------------------- ------------------ -----------------------------
United States
------------------ -----------------------------
Total Year 2007 265.0 $7.03 386.0 $6.27 $10.73
------------------ -----------------------------
Total Year 2008
Total Year 2009
Divestiture Hedges (Not included with
hedges above)
------------------
Total Year 2007 199.0 $7.45
------------------
------------------
Total Year 2008 155.0 $8.15
------------------
------------------
Total Year 2009 130.0 $7.84
------------------
------------------------------------
3- Way Collars
------------------------------------
- --------------------------------- ------------------------------------
Sold Purchased
Volume Floor Floor Ceiling
Crude Oil Bbl/day $/Bbl $/Bbl $/Bbl
- --------------------------------- ------------------------------------
United States
------------------------------------
Total Year 2007 35,000 $43.57 $58.57 $86.16
------------------------------------
------------------------------------
Total Year 2008 67,000 $43.21 $58.21 $94.75
------------------------------------
------------------------------------
Total Year 2009 28,000 $40.36 $55.36 $87.34
------------------------------------
------------------------------------
Total Year 2010 8,000 $35.00 $50.00 $86.49
------------------------------------
------------------------------------
Total Year 2011 3,000 $35.00 $50.00 $86.00
------------------------------------
------------------------------------
Total Year 2012 1,500 $35.00 $50.00 $92.50
------------------------------------
Algeria
------------------------------------
Total Year 2008 19,000 $33.51 $48.51 $86.73
------------------------------------
------------------------------------
Total Year 2009 20,000 $33.51 $48.51 $86.62
------------------------------------
------------------------------------
Total Year 2010 10,000 $33.53 $48.53 $86.98
------------------------------------
------------------------------------
Total Year 2007 35,000 $43.57 $58.57 $86.16
------------------------------------
------------------------------------
Total Year 2008 86,000 $41.07 $56.07 $92.98
------------------------------------
------------------------------------
Total Year 2009 48,000 $37.51 $52.51 $87.04
------------------------------------
------------------------------------
Total Year 2010 18,000 $34.18 $49.19 $86.76
------------------------------------
------------------------------------
Total Year 2011 3,000 $35.00 $50.00 $86.00
------------------------------------
------------------------------------
Total Year 2012 1,500 $35.00 $50.00 $92.50
------------------------------------
Total Year 2007
Total Year 2008
Total Year 2009
- --------------------------------- ------------------------------------
Volume Sold Purchased Ceiling
Floor Floor
Natural Gas MMMBtu/d $/MMBtu $/MMBtu $/MMBtu
- --------------------------------- ------------------------------------
United States
------------------------------------
Total Year 2007 30.0 $6.00 $9.00 $11.23
------------------------------------
------------------------------------
Total Year 2008 500.0 $5.00 $7.50 $14.26
------------------------------------
------------------------------------
Total Year 2009 50.0 $5.00 $7.50 $12.60
------------------------------------
Total Year 2007
Total Year 2008
Total Year 2009
Prices are weighted averages of all transactions for each transaction
type presented.
Divestiture hedges are transactions that will be assigned to another
party upon closing of a previously announced divestiture.
Anadarko Petroleum Corporation
Natural Gas Basis Hedge Position for 2007 and Beyond
As of February 6, 2007
- ----------------------------------------------------------------------
----------------------------------------
Daily Volume (MMMBtu's) by Pricing Point
- ----------------------------------------------------------------------
Pricing Point 2007 2008 2009
- ----------------------------------------------------------------------
Gulf Coast 130.6 110.0 -
Mid Continent 220.0 210.0 -
Rocky Mountains 196.1 245.0 20.0
West Texas 10.0 10.0 -
----------------------------------------
Total Daily Volume Hedged 556.7 575.0 20.0
========================================
----------------------------------------
Average Price Differential to Henry Hub
- ----------------------------------------------------------------------
Pricing Point 2007 2008 2009
- ----------------------------------------------------------------------
Gulf Coast ($0.614) ($0.475) -
Mid Continent ($0.986) ($0.922) -
Rocky Mountains ($1.469) ($1.426) ($1.080)
West Texas ($1.196) ($1.080) -
----------------------------------------
Average Price Differential
Hedged ($1.081) ($1.053) ($1.080)
========================================
Rockies Export Firm Transportation
As of February 6, 2007
- ----------------------------------------------------------------------
----------------------------------------
Daily Volume (MMMBtu's) by Pricing Point
- ----------------------------------------------------------------------
Delivery/ Pricing Point 2007 2008 2009
- ----------------------------------------------------------------------
Mid Continent 471 332 -
West Coast 103 78 -
----------------------------------------
Total 574 410 0
========================================
CONTACT: Anadarko Petroleum Corporation, Houston
Media:
Susan Richardson, 832-636-1537
susan.richardson@anadarko.com
or
Teresa Wong, 832-636-1203
teresa.wong@anadarko.com
or
Investors:
John Colglazier, 832-636-2306
john.colglazier@anadarko.com
or
Stewart Lawrence, 832-636-3326
stewart.lawrence@anadarko.com