Exhibit 99
Anadarko Announces Second-Quarter 2007 Earnings
HOUSTON--(BUSINESS WIRE)--July 30, 2007--Anadarko Petroleum
Corporation (NYSE:APC) today announced second-quarter 2007 net income
available to common stockholders totaled $652 million, or $1.39 per
share (diluted). Income from continuing operations totaled $645
million, or $1.38 per share (diluted). These results include
unrealized losses on derivatives of $35 million after tax, or $.08 per
share (diluted); a restructuring charge of $27 million after tax, or
$.06 per share (diluted); realized gains on derivatives of $82 million
after tax, or $.17 per share (diluted); and a gain from the sale of
certain midstream assets of $126 million after tax, or $.27 per share
(diluted).
Cash flow from continuing operations in the second quarter of 2007
was $229 million and discretionary cash flow totaled $174 million(1).
Income tax payments made in the second quarter of 2007 associated with
the divestiture program reduced both cash flow from continuing
operations and discretionary cash flow by approximately $1.1 billion.
In the 2006 second quarter, net income available to common
stockholders was $814 million, or $1.76 per share (diluted), while
income from continuing operations totaled $663 million, or $1.43 per
share (diluted). Adjustments to estimated future tax liabilities
resulting from tax law changes contributed $148 million, or $.32 per
share (diluted), to net income, while contributing $69 million, or
$.15 per share (diluted), to income from continuing operations in the
2006 second quarter.
"We are pleased with our second-quarter operating and financial
results," Anadarko Chairman, President and CEO Jim Hackett said. "Our
retained properties are performing very well. Based on the
demonstrated performance of the portfolio, combined with our
expectations from Independence Hub, we are raising the production
guidance for our continuing portfolio again, to between 189 million
barrels and 193 million barrels of oil equivalent for the year - an
increase of 3 million barrels from the previous midpoint."
Second-quarter 2007 sales volumes of natural gas, crude oil and
natural gas liquids totaled 52 million barrels of oil equivalent
(BOE), or 574,000 BOE per day, compared with second-quarter 2006 sales
volumes from continued operations of 36 million BOE, or 392,000 BOE
per day. Second-quarter 2007 natural gas sales volumes averaged 1.80
billion cubic feet per day, at an average price of $7.10 per thousand
cubic feet. Oil sales volumes in the second quarter averaged 227,000
barrels per day, at an average price of $60.43 per barrel. Natural gas
liquids sales volumes averaged 47,000 barrels per day, at an average
price of $41.88 per barrel.
CONFERENCE CALL TOMORROW AT 9 A.M. CDT, 10 A.M. EDT
Anadarko will host a conference call on Tuesday, July 31, at 9
a.m. Central Daylight Time (10 a.m. Eastern Daylight Time) to discuss
second-quarter results and the company's outlook for 2007. The dial-in
number is 913.981.4910, and the confirmation number is 7477001. 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 website for approximately 30 days following the conference call.
ANADARKO OPERATIONS REPORT
For more details on Anadarko's operations, please refer to the
comprehensive report on second-quarter activity. The report will be
available at www.anadarko.com on the Investor Relations page.
FINANCIAL DATA
Nine pages of summary financial data follow, including current
hedge positions, guidance and supplemental production guidance for the
retained assets.
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. For more information about Anadarko, 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, including Anadarko's
ability to successfully meet its revised production guidance, complete
its announced asset divestitures, successfully create and market an
initial public offering of a midstream Master Limited Partnership, and
achieve Anadarko's debt reduction goals. See "Risk Factors" in the
company's 2006 Annual Report on Form 10-K and other public filings and
press releases. 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
June 30
-----------------------------
millions 2007 2006
- ---------------------------------------------------------------------
Cash Flow
- ---------------------------------------------------------------------
Net cash provided by operating
activities - continuing operations $ 229 $ 945
Add back:
Change in accounts receivable (88) (42)
Change in accounts payable and
accrued expenses 593 221
Change in other items - net (560) (63)
- ---------------------------------------------------------------------
Discretionary Cash Flow from Continuing
Operations $ 174 $1,061
- ---------------------------------------------------------------------
Anadarko Petroleum Corporation
Quarter Ended Year to Date
Summary Financial Information June 30 June 30
---------------- ---------------
$ and shares in millions 2007 2006 2007 2006
- ----------------------------------------------------------------------
Revenues and Other
- ----------------------------------------------------------------------
Gas sales $1,162 $ 627 $2,237 $1,371
Oil and condensate sales 1,249 1,007 2,327 1,808
Natural gas liquids sales 179 138 336 245
Gathering, processing and marketing
sales 486 29 847 45
Other 237 8 249 41
- ----------------------------------------------------------------------
Total 3,313 1,809 5,996 3,510
- ----------------------------------------------------------------------
Costs and Expenses
- ----------------------------------------------------------------------
Oil and gas operating 253 138 581 262
Oil and gas transportation and other 110 88 217 163
Gathering, processing and marketing 336 24 635 42
General and administrative 217 123 448 228
Depreciation, depletion and
amortization 706 362 1,551 655
Other taxes 276 101 627 208
Impairments 27 5 33 18
- ----------------------------------------------------------------------
Total 1,925 841 4,092 1,576
- ----------------------------------------------------------------------
Operating Income 1,388 968 1,904 1,934
- ----------------------------------------------------------------------
Interest Expense and Other (Income)
Expense
- ----------------------------------------------------------------------
Interest expense 314 51 624 104
Other (income) expense (23) (7) (52) (7)
- ----------------------------------------------------------------------
Total 291 44 572 97
- ----------------------------------------------------------------------
Income from Continuing Operations,
Before Income Taxes 1,097 924 1,332 1,837
- ----------------------------------------------------------------------
Income Tax Expense 452 261 609 609
- ----------------------------------------------------------------------
Income from Continuing Operations $ 645 $ 663 $ 723 $1,228
- ----------------------------------------------------------------------
Income from Discontinued Operations,
net of taxes 7 152 34 248
- ----------------------------------------------------------------------
Net Income $ 652 $ 815 $ 757 $1,476
- ----------------------------------------------------------------------
Preferred Stock Dividends - 1 1 2
- ----------------------------------------------------------------------
Net Income Available to Common
Stockholders $ 652 $ 814 $ 756 $1,474
- ----------------------------------------------------------------------
Per Common Share
- ----------------------------------------------------------------------
Income from Continuing Operations -
basic $ 1.39 $ 1.44 $ 1.56 $ 2.67
Income from Continuing Operations -
diluted $ 1.38 $ 1.43 $ 1.55 $ 2.65
Income from Discontinued Operations,
net of taxes - basic $ 0.01 $ 0.33 $ 0.07 $ 0.54
Income from Discontinued Operations,
net of taxes - diluted $ 0.01 $ 0.33 $ 0.07 $ 0.53
Net Income Available to Common
Stockholders - basic $ 1.40 $ 1.77 $ 1.63 $ 3.21
Net Income Available to Common
Stockholders - diluted $ 1.39 $ 1.76 $ 1.62 $ 3.18
- ----------------------------------------------------------------------
Average Number of Common Shares
Outstanding - Basic 465 459 464 460
- ----------------------------------------------------------------------
Average Number of Common Shares
Outstanding - Diluted 467 463 466 464
- ----------------------------------------------------------------------
Anadarko Petroleum Corporation
Quarter Ended Year to Date
Summary Financial Information June 30 June 30
----------------- -----------------
$ in millions 2007 2006 2007 2006
- ----------------------------------------------------------------------
Cash Flow from Operating Activities
- ----------------------------------------------------------------------
Net income $ 652 $ 815 $ 757 $ 1,476
Less income from discontinued
operations, net of taxes (7) (152) (34) (248)
Depreciation, depletion and
amortization 706 362 1,551 655
Deferred income taxes (1,080) 23 (1,308) 144
Impairments 27 5 33 18
Gain on asset dispositions (197) - (221) -
Unrealized (gains) losses on
derivatives 55 2 557 (11)
Other noncash items 18 6 62 27
- ----------------------------------------------------------------------
Discretionary Cash Flow from
Continuing Operations 174 1,061 1,397 2,061
(Increase) decrease in accounts
receivable 88 42 675 345
Increase (decrease) in accounts
payable and accrued expenses (593) (221) (1,670) (498)
Other items - net 560 63 683 (59)
- ----------------------------------------------------------------------
Cash provided by operating
activities - continuing operations 229 945 1,085 1,849
Cash provided by operating
activities - discontinued
operations 154 12 165 330
- ----------------------------------------------------------------------
Net Cash Provided by Operating
Activities(a) $ 383 $ 957 $ 1,250 $ 2,179
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
Capital Expenditures
- ----------------------------------------------------------------------
Capital spending $ 1,180 $ 848 $ 2,185 $ 1,579
Capitalized interest 53 15 98 28
Capitalized overhead 49 39 93 79
- ----------------------------------------------------------------------
Capital expenditures - continuing
operations 1,282 902 2,376 1,686
Capital expenditures - discontinued
operations - 143 - 343
- ----------------------------------------------------------------------
Total $ 1,282 $ 1,045 $ 2,376 $ 2,029
- ----------------------------------------------------------------------
(a) Income tax payments of $1.1 billion associated with the
divestiture program were made in the second quarter of 2007, which
reduced cash flow from operating activities for the quarter and year-
to-date periods. Proceeds from divestitures, which are reflected in
investing activities (not presented above), provided the cash for
these tax payments.
June 30, Dec. 31, June 30,
2007 2006 2006
- ----------------------------------------------------------------------
Condensed Balance Sheet
- ----------------------------------------------------------------------
Cash and cash equivalents $ 1,647 $ 491 $ 671
Other current assets 2,948 4,055 1,532
Current assets held for sale - 68 369
Net properties and equipment 39,146 48,739 16,231
Other assets 932 865 609
Goodwill and other intangible assets 4,740 4,616 1,092
Long-term assets held for sale 1,603 10 3,161
- ----------------------------------------------------------------------
Total Assets $51,016 $58,844 $23,665
- ----------------------------------------------------------------------
Current debt $ 5,744 $11,471 $ 211
Other current liabilities 3,826 5,240 1,690
Current liabilities associated with assets
held for sale - 47 306
Long-term debt 11,138 11,520 3,361
Other long-term liabilities 14,507 15,653 5,021
Other long-term liabilities associated
with assets held for sale 7 - 712
Stockholders' equity 15,794 14,913 12,364
- ----------------------------------------------------------------------
Total Liabilities and Stockholders' Equity $51,016 $58,844 $23,665
- ----------------------------------------------------------------------
Capitalization
- ----------------------------------------------------------------------
Total debt $16,882 $22,991 $ 3,572
Stockholders' equity 15,794 14,913 12,364
- ----------------------------------------------------------------------
Total $32,676 $37,904 $15,936
- ----------------------------------------------------------------------
Capitalization Ratios
- ----------------------------------------------------------------------
Total debt 52% 61% 22%
Stockholders' equity 48% 39% 78%
- ----------------------------------------------------------------------
Anadarko Petroleum Corporation
Quarter Ended Year to Date
Volumes and Prices June 30 June 30
--------------- ---------------
2007 2006 2007 2006
- ----------------------------------------------------------------------
Natural Gas
- ----------------------------------------------------------------------
United States
- ----------------------------------------------------------------------
Volumes, billion cubic feet 164 99 362 197
Average daily volumes, million cubic
feet per day 1,798 1,091 2,000 1,091
Price per thousand cubic feet
excluding derivatives $ 6.14 $ 6.20 $ 6.19 $ 6.83
- ----------------------------------------------------------------------
Realized gain (loss) on derivatives $ 0.47 $(0.01) $ 0.68 $(0.02)
Unrealized gain (loss) on
derivatives $ 0.49 $ 0.12 $(0.69) $ 0.13
- ----------------------------------------------------------------------
Total gains (losses) on
derivatives $ 0.96 $ 0.11 $(0.01) $ 0.11
- ----------------------------------------------------------------------
Total price per thousand cubic feet $ 7.10 $ 6.31 $ 6.18 $ 6.94
- ----------------------------------------------------------------------
Crude Oil and Condensate
- ----------------------------------------------------------------------
United States
- ----------------------------------------------------------------------
Volumes, million barrels 13 7 26 14
Average daily volumes, thousand
barrels per day 139 84 143 77
Price per barrel excluding derivatives $60.69 $64.17 $56.63 $61.15
- ----------------------------------------------------------------------
Realized gain (loss) on derivatives $ 4.09 $(0.44) $ 5.14 $(0.44)
Unrealized gain (loss) on
derivatives $(5.77) $(1.92) $(8.61) $(1.00)
- ----------------------------------------------------------------------
Total gains (losses) on
derivatives $(1.68) $(2.36) $(3.47) $(1.44)
- ----------------------------------------------------------------------
Price per barrel $59.01 $61.81 $53.16 $59.71
- ----------------------------------------------------------------------
Algeria
- ----------------------------------------------------------------------
Volumes, million barrels 5 7 12 12
Average daily volumes, thousand
barrels per day 59 71 66 67
Price per barrel excluding derivatives $69.27 $70.54 $64.03 $67.12
- ----------------------------------------------------------------------
Realized gain (loss) on derivatives $ - $ - $ - $ -
Unrealized gain (loss) on
derivatives $(4.80) $ - $(3.22) $ -
- ----------------------------------------------------------------------
Total gains (losses) on
derivatives $(4.80) $ - $(3.22) $ -
- ----------------------------------------------------------------------
Price per barrel $64.47 $70.54 $60.81 $67.12
- ----------------------------------------------------------------------
Other International
- ----------------------------------------------------------------------
Volumes, million barrels 3 2 4 3
Average daily volumes, thousand
barrels per day 29 17 23 18
Price per barrel $58.95 $53.47 $54.43 $50.59
- ----------------------------------------------------------------------
Total
- ----------------------------------------------------------------------
Volumes, million barrels 21 16 42 29
Average daily volumes, thousand
barrels per day 227 172 232 162
Price per barrel excluding derivatives $62.71 $65.75 $58.50 $62.41
- ----------------------------------------------------------------------
Realized gain (loss) on derivatives $ 2.49 $(0.21) $ 3.19 $(0.21)
Unrealized gain (loss) on
derivatives $(4.77) $(0.93) $(6.25) $(0.47)
- ----------------------------------------------------------------------
Total gains (losses) on
derivatives $(2.28) $(1.14) $(3.06) $(0.68)
- ----------------------------------------------------------------------
Total price per barrel $60.43 $64.61 $55.44 $61.73
- ----------------------------------------------------------------------
Natural Gas Liquids
- ----------------------------------------------------------------------
United States
- ----------------------------------------------------------------------
Volumes, million barrels 4 4 9 6
Average daily volumes, thousand
barrels per day 47 38 48 35
Total price per barrel $41.88 $39.66 $38.73 $39.32
- ----------------------------------------------------------------------
Total Barrels of Oil Equivalent (BOE)
- continuing operations
- ----------------------------------------------------------------------
Volumes, million BOE 52 36 111 68
Average daily volumes, thousand BOE
per day 574 392 613 378
- ----------------------------------------------------------------------
Total Barrels of Oil Equivalent (BOE)
- discontinued operations
- ----------------------------------------------------------------------
Volumes, million BOE - 5 - 10
Average daily volumes, thousand BOE
per day - 55 - 55
- ----------------------------------------------------------------------
Total Barrels of Oil Equivalent (BOE)
- ----------------------------------------------------------------------
Volumes, million BOE 52 41 111 78
Average daily volumes, thousand BOE
per day 574 447 613 433
Anadarko Petroleum Corporation
Financial and Operating Guidance
Continuing Operations
As of July 30, 2007
3rd Quarter Total Year
2007 Forecast 2007 Forecast
------------- -------------
Units Units
------------- -------------
Total Sales (MMBOE) (a) 45 - 48 203 - 210
Crude Oil (MBbl/d): 180 - 190 195 - 210
United States 100 - 115 120 - 125
Algeria 60 - 65 60 - 65
Other International 17 - 20 17 - 20
Natural Gas (MMcf/d):
United States 1,660 -1,750 1,940 -1,960
Natural Gas Liquids (MBbl/d):
United States 35 - 37 37 - 40
(a) Sales include volumes associated with divestitures of 14.5 MMBOE
through the 1st half of 2007, with 0-1 MMBOE in the 3rd Quarter and
about 15 MMBOE for the year.
$/ Unit $/ Unit
--------------- ---------------
Price Differentials vs NYMEX (w/o
hedges)
Crude Oil ($/Bbl): (3.50)- (4.50) (4.00)- (5.00)
United States (7.00)- (8.00) (7.00)- (8.00)
Algeria 1.00 - 4.00 1.00 - 3.00
Other International (10.00)-(12.00) (10.00)-(12.00)
Natural Gas ($/Mcf):
United States (1.00)- (1.50) (1.00)- (1.50)
Anadarko Petroleum Corporation
Financial and Operating Guidance
Continuing Operations
As of July 30, 2007
3rd Quarter Total Year
2007 Forecast 2007 Forecast
-------------- --------------
$MM $MM
-------------- --------------
Other Revenues:
Gathering, Processing & Marketing
Margins 70 - 90 325 - 375
Minerals and Other 25 - 30 275 - 300
- ----------------------------------------------------------------------
Costs and Expenses:
$ / Boe $ / Boe
-------------- --------------
Oil & Gas Lease Operating 5.00 - 5.25 5.00 - 5.20
Oil & Gas Transportation 1.60 - 1.80 1.75 - 1.85
Depreciation, Depletion and
Amortization 13.75 - 14.25 13.75 - 14.25
Production Taxes (% of Revenue) 12%- 13% 12%- 13%
$MM $MM
-------------- --------------
General and Administrative (excludes 180 - 195 700 - 725
restructuring charges)
Impairments - - 25 35 - 100
Interest Expense 200 - 225 925 - 1,000
Other (Income) Expense (10)- 10 (70)- (50)
Effective Tax Rate 40%- 46% 40%- 46%
- ----------------------------------------------------------------------
Avg. Shares Outstanding (MM)
Basic 466 - 467 465 - 467
Diluted 467 - 468 467 - 469
- ----------------------------------------------------------------------
$MM $MM
-------------- --------------
Capital Investment 1,200 - 1,300 4,400 - 4,600
Capital Projects 1,120 - 1,200 4,050 - 4,175
Capitalized Direct Expenses 40 - 50 175 - 225
Capitalized Interest 40 - 50 175 - 200
Anadarko Petroleum Corporation
Commodity Hedge Positions (Excluding Natural Gas Basis)
As of July 30, 2007
----------------- --------------------------
Fixed 2- Way Collars
----------------- --------------------------
- ------------------------ ----------------- --------------------------
NYMEX
Volume Price Volume Floor Ceiling
Crude Oil Bbl/day $/Bbl Bbl/day $/Bbl $/Bbl
- ------------------------ --------------------------------------------
United States
----------------- --------------------------
Remainder 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
----------------- --------------------------
Remainder 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
- ------------------------ ----------------- --------------------------
NYMEX
Volume Price Volume Floor Ceiling
Natural Gas MMMBtu/d $/MMBtu MMMBtu/d $/MMBtu $/MMBtu
- ------------------------ ----------------- --------------------------
United States
----------------- --------------------------
Remainder 2007 265 $ 7.03 386 $ 6.27 $10.73
----------------- --------------------------
Total Year 2008
Total Year 2009
Prices are weighted
averages of all
transactions for each
transaction type
presented.
------------------------------------
3- Way Collars
------------------------------------
- --------------------------------- ------------------------------------
Sold Purchased
Volume Floor Floor Ceiling
Crude Oil Bbl/day $/Bbl $/Bbl $/Bbl
- --------------------------------- ------------------------------------
United States
------------------------------------
Remainder 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 Crude Oil, All Locations
------------------------------------
Remainder 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
------------------------------------
- --------------------------------- ------------------------------------
Sold Purchased
Volume Floor Floor Ceiling
Natural Gas MMMBtu/d $/MMBtu $/MMBtu $/MMBtu
- --------------------------------- ------------------------------------
United States
------------------------------------
Remainder 2007 30 $ 6.00 $ 9.00 $11.23
------------------------------------
------------------------------------
Total Year 2008 500 $ 5.00 $ 7.50 $14.26
------------------------------------
------------------------------------
Total Year 2009 50 $ 5.00 $ 7.50 $12.60
------------------------------------
Prices are weighted averages of
all transactions for each
transaction type presented.
Anadarko Petroleum Corporation
Natural Gas Basis Hedge Positions
As of July 30, 2007
---------------------------------------------------------------------
------------------------------------
Daily Volume (MMMBtu's)
by Pricing Point
---------------------------------------------------------------------
Pricing Point 2007 2008 2009 2010
---------------------------------------------------------------------
Gulf Coast 131 110 - -
Mid Continent 220 330 140 25
Rocky Mountains 170 375 165 180
West Texas 10 10 - -
------------------------------------
Total Daily Volume Hedged 531 825 305 205
====================================
------------------------------------
Average Price Differential
to Henry Hub
---------------------------------------------------------------------
Pricing Point 2007 2008 2009 2010
---------------------------------------------------------------------
Gulf Coast $(0.614) $(0.475) $ - $ -
Mid Continent $(0.986) $(0.993) $(0.708) $(0.592)
Rocky Mountains $(1.455) $(1.467) $(1.104) $(0.985)
West Texas $(1.196) $(1.080) $ - $ -
------------------------------------
Average Price Differential
Hedged $(1.049) $(1.141) $(0.922) $(0.937)
====================================
Rockies Export Firm Transportation
As of July 30, 2007
--------------------
Daily Volume
(MMMBtu's) by
Pricing Point
-------------------------------------------------------------------
Delivery/ Pricing Point 2007 2008 2009
-------------------------------------------------------------------
Mid Continent 471 471 471
West Coast 88 88 88
San Juan 15 15 15
--------------------
Total 574 574 574
====================
-------------------------------------------------------------------
Interest Rate Derivatives
As of July 30, 2007
---------------------------------------------------------------------
---------------------------------------------------------------------
Instrument Notional Amt. Maturity Rate Paid Rate
Received
---------------------------------------------------------------------
Swap $600 Million May 2031 LIBOR + 2.205% 7.5%
Swap $150 Million Oct 2007 LIBOR + 3.345% 6.625%
Anadarko Petroleum Corporation
Retained Properties Sales
Recent Performance and 2007 Guidance
As of July 30, 2007
Q4 2006 Q1 2007 Q2 2007 Q3 2007
Actuals Actuals Actuals Guidance
------- ------- ------- -----------------
TOTAL SALES (MMBOE) 48.4 49.2 47.1 45.0 - 47.0
Natural Gas (MMcf/d) 1,791.5 1,795.7 1,634.1 1,660.0 - 1,725.0
Crude Oil (MBbl/d) 204.5 208.3 206.0 180.0 - 190.0
Natural Gas Liquids
(MBbl/d) 34.2 39.3 38.9 34.0 - 37.0
ROCKIES
Natural Gas (MMcf/d) 917.2 937.0 841.7 875.0 - 900.0
Crude Oil (MBbl/d) 23.1 23.5 23.9 24.0 - 26.0
Natural Gas Liquids
(MBbl/d) 16.9 16.2 15.0 13.0 - 14.0
Total Sales (MMBOE) 17.4 17.6 16.3 16.8 - 17.5
SOUTHERN
Natural Gas (MMcf/d) 639.5 644.2 611.0 560.0 - 580.0
Crude Oil (MBbl/d) 12.2 10.8 10.0 9.0 - 10.0
Natural Gas Liquids
(MBbl/d) 10.3 14.4 14.5 14.0 - 15.0
Total Sales (MMBOE) 11.6 11.9 11.5 10.7 - 11.2
GULF OF MEXICO
Natural Gas (MMcf/d) 239.7 223.2 200.5 230.0 - 250.0
Crude Oil (MBbl/d) 63.0 61.3 67.2 50.0 - 55.0
Natural Gas Liquids
(MBbl/d) 4.2 4.0 4.6 4.0 - 4.0
Total Sales (MMBOE) 9.6 9.2 9.6 8.5 - 9.3
INTERNATIONAL / FRONTIER
Natural Gas (MMcf/d) 0.4 0.3 0.3 0.0 - 0.0
Crude Oil (MBbl/d) 106.2 112.7 104.9 95.0 - 100.0
Natural Gas Liquids
(MBbl/d) - - - - - -
Total Sales (MMBOE) 9.6 10.1 9.6 8.7 - 9.2
Q4 2007 Total Year 2007
Guidance Guidance
----------------- -----------------
TOTAL SALES (MMBOE) 48.0 - 50.0 189.0 - 193.0
Natural Gas (MMcf/d) 1,930.0 - 1,990.0 1,755.0 - 1,787.0
Crude Oil (MBbl/d) 175.0 - 185.0 188.5 - 194.0
Natural Gas Liquids (MBbl/d) 30.0 - 35.0 35.0 - 38.0
ROCKIES
Natural Gas (MMcf/d) 940.0 - 960.0 900.0 - 910.0
Crude Oil (MBbl/d) 25.0 - 27.0 24.0 - 25.0
Natural Gas Liquids (MBbl/d) 13.0 - 14.0 14.0 - 15.0
Total Sales (MMBOE) 17.9 - 18.5 68.6 - 70.0
SOUTHERN
Natural Gas (MMcf/d) 545.0 - 565.0 590.0 - 600.0
Crude Oil (MBbl/d) 8.0 - 9.0 9.5 - 10.0
Natural Gas Liquids (MBbl/d) 13.0 - 14.0 14.0 - 14.5
Total Sales (MMBOE) 10.3 - 10.8 44.5 - 45.4
GULF OF MEXICO
Natural Gas (MMcf/d) 445.0 - 465.0 275.0 - 285.0
Crude Oil (MBbl/d) 50.0 - 55.0 57.0 - 59.0
Natural Gas Liquids (MBbl/d) 4.5 - 5.0 4.0 - 4.5
Total Sales (MMBOE) 11.8 - 12.7 39.0 - 40.5
INTERNATIONAL / FRONTIER
Natural Gas (MMcf/d) 0.0 - 0.0 0.0 - 0.0
Crude Oil (MBbl/d) 90.0 - 95.0 98.0 - 100.0
Natural Gas Liquids (MBbl/d) - - - - - -
Total Sales (MMBOE) 8.3 - 8.7 35.8 - 36.5
CONTACT: Anadarko Petroleum Corporation, Houston
Media:
John Christiansen, 832-636-8736
john.christiansen@anadarko.com
or
Paula Beasley, 832-636-8765
paula.beasley@anadarko.com
or
Investors:
John Colglazier, 832-636-2306
john.colglazier@anadarko.com
or
Chris Campbell, CFA, 832-636-8434
chris.campbell@anadarko.com