Exhibit 99
Anadarko Announces Third-Quarter 2007 Earnings
Guides to 5% to 9% Production Growth for 2008
HOUSTON--(BUSINESS WIRE)--Nov. 5, 2007--Anadarko Petroleum
Corporation (NYSE:APC) today announced third-quarter 2007 net income
available to common stockholders totaled $503 million, or $1.07 per
share (diluted). Income from continuing operations totaled $516
million, or $1.10 per share (diluted). All financial information
included in this news release reflects Anadarko's recent conversion to
the successful efforts method of accounting.
On an after-tax basis, these results include gains on asset
divestitures of $219 million, or $.47 per share; a restructuring
charge of $17 million, or $.04 per share, related to both lease
operating costs and general and administrative expenses; legal
accruals totaling approximately $14 million, or $.03 per share;
unrealized losses on commodity derivatives of $21 million, or $.04 per
share, offset by an interest-rate-swap gain of $20 million, or $.04
per share; and realized gains on commodity derivatives of $85 million,
or $.18 per share.
Cash flow from continuing operations in the third quarter of 2007
was $884 million and discretionary cash flow totaled $718 million.(1)
In the 2006 third quarter, net income available to common
stockholders was $1.39 billion, or $2.99 per share (diluted), while
income from continuing operations totaled $1.31 billion, or $2.83 per
share (diluted).
"Our asset base continues to demonstrate repeatable and
predictable characteristics that, along with exploration success, are
the foundation of our value-creation strategy," Anadarko Chairman,
President and CEO Jim Hackett said. "We met our production guidance,
despite facing shut-ins of approximately 700,000 barrels of oil
equivalent (BOE) as a result of infrastructure disruptions in the
Rockies - most of which were natural gas. Also during the quarter,
Independence Hub came on production and is performing very well as we
ramp up toward the Hub's capacity of 1 billion cubic feet per day.
"Based on our performance, we are reaffirming the midpoint of our
production guidance of 191 million BOE, while narrowing the range of
our full-year 2007 guidance to 190 million to 192 million BOE from our
retained properties," added Hackett. "We also have additional
confidence in our ability to continue to deliver 5 to 9 percent
production growth from our retained properties in 2008 and beyond."
Third-quarter 2007 sales volumes of natural gas, crude oil and
natural gas liquids totaled 47 million BOE, or 510,000 BOE per day.
Third-quarter 2007 natural gas sales volumes averaged 1.64 billion
cubic feet per day, at an average price of $5.78 per thousand cubic
feet. Oil sales volumes in the third quarter averaged 198,000 barrels
per day, at an average price of $69.25 per barrel. Natural gas liquids
sales volumes averaged 39,000 barrels per day, at an average price of
$48.39 per barrel.
CONFERENCE CALL TOMORROW AT 8 A.M. CST, 9 A.M. EST
Anadarko will host a conference call on Tuesday, Nov. 6, at 8 a.m.
Central Standard Time (9 a.m. Eastern Standard Time) to discuss
third-quarter results and the company's outlook for the remainder of
2007. The dial-in number is 800.510.0146 in the United States or
617.614.3449 internationally. The confirmation number is 80724603. For
complete instructions on how to participate in the conference call, or
to listen to the live audio webcast and slide presentation, please
visit www.anadarko.com. A replay of the call will also be available on
the Web site for approximately 30 days following the conference call.
ANADARKO OPERATIONS REPORT
For more details on Anadarko's operations, please refer to the
comprehensive report on third-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, financial guidance and supplemental production
guidance for the retained asset portfolio. All prior-year information
has been re-cast to reflect the successful efforts method of
accounting.
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. 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
September 30
-------------------
millions 2007 2006
- ----------------------------------------------------------------------
Cash Flow
- ----------------------------------------------------------------------
Net cash provided by (used in) operating
activities - continuing operations $ 884 $ 1,506
Add back:
Change in accounts receivable (310) 102
Change in accounts payable and accrued expenses 212 (255)
Change in other items - net (68) (160)
- ----------------------------------------------------------------------
Discretionary Cash Flow from Continuing Operations $ 718 $ 1,193
- ----------------------------------------------------------------------
Anadarko Petroleum Corporation
Quarter Ended Year to Date
Summary Financial Information September 30 September 30
--------------------- -------------------
millions except per share
amounts 2007 2006 2007 2006
- ----------------------------------------------------------------------
Revenues and Other
- ----------------------------------------------------------------------
Gas sales $ 871 $ 1,546 $ 3,108 $ 2,917
Oil and condensate sales 1,262 1,500 3,558 3,317
Natural gas liquids sales 175 184 511 429
Gathering, processing and
marketing sales 348 258 1,195 303
Gains on divestitures, net 343 3 4,573 26
Other 31 15 58 55
- ----------------------------------------------------------------------
Total 3,030 3,506 13,003 7,047
- ----------------------------------------------------------------------
Costs and Expenses
- ----------------------------------------------------------------------
Oil and gas operating 256 230 868 501
Oil and gas transportation
and other 99 89 316 252
Exploration 253 122 614 333
Gathering, processing and
marketing 231 186 866 228
General and administrative 171 181 681 462
Depreciation, depletion and
amortization 655 502 2,090 961
Other taxes 269 121 869 320
Impairments - 3 40 19
- ----------------------------------------------------------------------
Total 1,934 1,434 6,344 3,076
- ----------------------------------------------------------------------
Operating Income 1,096 2,072 6,659 3,971
- ----------------------------------------------------------------------
Interest Expense and Other
(Income) Expense
- ----------------------------------------------------------------------
Interest expense 222 203 861 312
Other (income) expense (8) (14) (60) (21)
- ----------------------------------------------------------------------
Total 214 189 801 291
- ----------------------------------------------------------------------
Income from Continuing
Operations Before Income
Taxes 882 1,883 5,858 3,680
- ----------------------------------------------------------------------
Income Tax Expense 366 573 2,252 1,174
- ----------------------------------------------------------------------
Income from Continuing
Operations $ 516 $ 1,310 $ 3,606 $ 2,506
- ----------------------------------------------------------------------
Income (Loss) from
Discontinued Operations, net
of taxes (12) 75 22 320
- ----------------------------------------------------------------------
Net Income $ 504 $ 1,385 $ 3,628 $ 2,826
- ----------------------------------------------------------------------
Preferred Stock Dividends 1 - 2 2
- ----------------------------------------------------------------------
Net Income Available to
Common Stockholders $ 503 $ 1,385 $ 3,626 $ 2,824
- ----------------------------------------------------------------------
Per Common Share
- ----------------------------------------------------------------------
Income from continuing
operations - basic $ 1.10 $ 2.85 $ 7.75 $ 5.45
Income from continuing
operations - diluted $ 1.10 $ 2.83 $ 7.72 $ 5.40
Income (loss) from
discontinued operations, net
of taxes - basic $ (0.03) $ 0.16 $ 0.05 $ 0.69
Income (loss) from
discontinued operations, net
of taxes - diluted $ (0.03) $ 0.16 $ 0.05 $ 0.69
Net income available to
common stockholders - basic $ 1.08 $ 3.01 $ 7.80 $ 6.14
Net income available to
common stockholders -
diluted $ 1.07 $ 2.99 $ 7.76 $ 6.09
- ----------------------------------------------------------------------
Average Number of Common
Shares Outstanding - Basic 466 460 465 460
- ----------------------------------------------------------------------
Average Number of Common
Shares Outstanding - Diluted 468 463 467 464
- ----------------------------------------------------------------------
Anadarko Petroleum Corporation
Summary
Financial Quarter Ended Year to Date
Information September 30 September 30
--------------------------- --------------------------
millions 2007 2006 2007 2006
- ----------------------------------------------------------------------
Cash Flow from
Operating
Activities
- ----------------------------------------------------------------------
Net income $ 504 $ 1,385 $ 3,628 $ 2,826
Less income
(loss) from
discontinued
operations, net
of taxes (12) 75 22 320
Depreciation,
depletion and
amortization 655 502 2,090 961
Deferred income
taxes (321) 209 (1,090) 355
Dry hole expense
and impairments
of unproved
properties 197 65 454 201
Impairments - 3 40 19
(Gains) losses
on
divestitures,
net (343) (3) (4,573) (26)
Unrealized
(gains) losses
on derivatives (13) (872) 544 (883)
Other noncash
items 27 (21) 100 13
- ----------------------------------------------------------------------
Discretionary
Cash Flow from
Continuing
Operations 718 1,193 1,171 3,146
(Increase)
decrease in
accounts
receivable 310 (102) 1,354 225
Increase
(decrease) in
accounts
payable and
accrued
expenses (212) 255 (1,486) (243)
Other items -
net 68 160 745 93
- ----------------------------------------------------------------------
Cash provided by
(used in)
operating
activities -
continuing
operations 884 1,506 1,784 3,221
Cash provided by
(used in)
operating
activities -
discontinued
operations 28 110 193 417
- ----------------------------------------------------------------------
Net cash
provided by
(used in)
operating
activities(a) $ 912 $ 1,616 $ 1,977 $ 3,638
- ----------------------------------------------------------------------
(a) Cash flow from operating activities for year to date September
2007 was reduced by $1.6 billion due to the impact of income taxes on
divestitures. Cash flow from investing activities includes the
proceeds from the divestitures and provides cash for payment of
related taxes.
- ----------------------------------------------------------------------
Capital
Expenditures
- ----------------------------------------------------------------------
Capital spending $ 806 $ 1,073 $ 2,890 $ 2,600
Capitalized
interest 20 25 103 48
- ----------------------------------------------------------------------
Capital
expenditures -
continuing
operations 826 1,098 2,993 2,648
Capital
expenditures -
discontinued
operations - 165 - 478
- ----------------------------------------------------------------------
Total $ 826 $ 1,263 $ 2,993 $ 3,126
- ----------------------------------------------------------------------
- ----------------------------------------------------------------------
Exploration
Expense
- ----------------------------------------------------------------------
Dry hole expense $ 111 $ 36 $ 222 $ 142
Impairments of
unproved
properties 86 29 232 59
Geological &
geophysical
expense 27 38 91 83
Exploration
general and
administrative
expense and
other 29 19 69 49
- ----------------------------------------------------------------------
Total $ 253 $ 122 $ 614 $ 333
- ----------------------------------------------------------------------
September 30, December 31, September 30,
2007 2006 2006
- ----------------------------------------------------------------------
Condensed
Balance Sheet
- ----------------------------------------------------------------------
Cash and cash
equivalents $ 1,243 $ 491 $ 1,803
Other current
assets 2,257 4,053 3,300
Current assets
held for sale 23 68 407
Net properties
and equipment 37,557 41,436 38,840
Other assets 998 838 1,060
Goodwill and
other
intangible
assets 5,169 4,332 8,053
Long-term assets
held for sale 323 3,746 3,046
- ----------------------------------------------------------------------
Total Assets $ 47,570 $ 54,964 $ 56,509
- ----------------------------------------------------------------------
Current debt $ 3,549 $ 11,471 $ 16,663
Other current
liabilities 3,763 5,240 4,177
Current
liabilities
associated with
assets held for
sale 5 47 339
Long-term debt 11,144 11,520 11,163
Other long-term
liabilities 12,937 14,240 12,219
Other long-term
liabilities
associated with
assets held for
sale 7 43 696
Stockholders'
equity 16,165 12,403 11,252
- ----------------------------------------------------------------------
Total
Liabilities and
Stockholders'
Equity $ 47,570 $ 54,964 $ 56,509
- ----------------------------------------------------------------------
Capitalization
- ----------------------------------------------------------------------
Total debt $ 14,693 $ 22,991 $ 27,826
Stockholders'
equity 16,165 12,403 11,252
- ----------------------------------------------------------------------
Total $ 30,858 $ 35,394 $ 39,078
- ----------------------------------------------------------------------
Capitalization
Ratios
- ----------------------------------------------------------------------
Total debt 48% 65% 71%
Stockholders'
equity 52% 35% 29%
- ----------------------------------------------------------------------
Anadarko Petroleum Corporation
Quarter Ended Year to Date
Sales Volumes and Prices September 30 September 30
--------------------- ---------------------
2007 2006 2007 2006
- ----------------------------------------------------------------------
Natural Gas
- ----------------------------------------------------------------------
United States
- ----------------------------------------------------------------------
Volumes, billion cubic feet 151 156 513 353
Average daily volumes,
million cubic feet per day 1,637 1,693 1,877 1,294
Price per thousand cubic
feet excluding derivatives $ 4.70 $ 6.03 $ 5.75 $ 6.48
- ----------------------------------------------------------------------
Realized gain (loss) on
derivatives $ 0.84 $ 0.10 $ 0.73 $ 0.03
Unrealized gain (loss) on
derivatives $ 0.24 $ 3.80 $ (0.42) $ 1.75
- ----------------------------------------------------------------------
Total gains (losses)
on derivatives $ 1.08 $ 3.90 $ 0.31 $ 1.78
- ----------------------------------------------------------------------
Total price per thousand
cubic feet $ 5.78 $ 9.93 $ 6.06 $ 8.26
- ----------------------------------------------------------------------
Crude Oil and Condensate
- ----------------------------------------------------------------------
United States
- ----------------------------------------------------------------------
Volumes, million barrels 10 11 36 25
Average daily volumes,
thousand barrels per day 116 126 134 93
Price per barrel excluding
derivatives $ 72.12 $ 64.57 $ 61.13 $ 62.69
- ----------------------------------------------------------------------
Realized gain (loss) on
derivatives $ 0.65 $ 1.77 $ 3.83 $ 0.56
Unrealized gain (loss) on
derivatives $ (7.21) $ 23.92 $ (8.20) $ 10.23
- ----------------------------------------------------------------------
Total gains (losses)
on derivatives $ (6.56) $ 25.69 $ (4.37) $ 10.79
- ----------------------------------------------------------------------
Price per barrel $ 65.56 $ 90.26 $ 56.76 $ 73.48
- ----------------------------------------------------------------------
Algeria
- ----------------------------------------------------------------------
Volumes, million barrels 6 6 18 18
Average daily volumes,
thousand barrels per day 65 60 64 65
Price per barrel excluding
derivatives $ 75.83 $ 68.02 $ 68.08 $ 67.37
- ----------------------------------------------------------------------
Realized gain (loss) on
derivatives $ - $ - $ - $ -
Unrealized gain (loss) on
derivatives $ 1.38 $ - $ (1.72) $ -
- ----------------------------------------------------------------------
Total gains (losses)
on derivatives $ 1.38 $ - $ (1.72) $ -
- ----------------------------------------------------------------------
Price per barrel $ 77.21 $ 68.02 $ 66.36 $ 67.37
- ----------------------------------------------------------------------
Other International
- ----------------------------------------------------------------------
Volumes, million barrels 2 2 6 5
Average daily volumes,
thousand barrels per day 17 17 21 18
Price per barrel $ 63.52 $ 52.69 $ 56.13 $ 51.27
- ----------------------------------------------------------------------
Total
- ----------------------------------------------------------------------
Volumes, million barrels 18 19 60 48
Average daily volumes,
thousand barrels per day 198 203 219 176
Price per barrel excluding
derivatives $ 72.63 $ 64.58 $ 62.68 $ 63.25
- ----------------------------------------------------------------------
Realized gain (loss) on
derivatives $ 0.38 $ 1.09 $ 2.35 $ 0.30
Unrealized gain (loss) on
derivatives $ (3.76) $ 14.67 $ (5.53) $ 5.40
- ----------------------------------------------------------------------
Total gains (losses)
on derivatives $ (3.38) $ 15.76 $ (3.18) $ 5.70
- ----------------------------------------------------------------------
Total price per barrel $ 69.25 $ 80.34 $ 59.50 $ 68.95
- ----------------------------------------------------------------------
Natural Gas Liquids
- ----------------------------------------------------------------------
United States
- ----------------------------------------------------------------------
Volumes, million barrels 4 4 12 10
Average daily volumes,
thousand barrels per day 39 45 45 38
Price per barrel excluding
derivatives $ 48.39 $ 44.70 $ 41.57 $ 41.46
- ----------------------------------------------------------------------
Realized gains (losses)
on derivatives $ - $ (0.47) $ - $ (0.18)
- ----------------------------------------------------------------------
Total price per barrel $ 48.39 $ 44.23 $ 41.57 $ 41.28
- ----------------------------------------------------------------------
Total Barrels of Oil
Equivalent (BOE) -
continuing operations
- ----------------------------------------------------------------------
Volumes, million BOE 47 49 158 117
Average daily volumes,
thousand BOE per day 510 530 577 430
- ----------------------------------------------------------------------
Total Barrels of Oil
Equivalent (BOE) -
discontinued operations
- ----------------------------------------------------------------------
Volumes, million BOE - 5 - 15
Average daily volumes,
thousand BOE per day - 55 - 55
- ----------------------------------------------------------------------
Total Barrels of Oil
Equivalent (BOE)
- ----------------------------------------------------------------------
Volumes, million BOE 47 54 158 132
Average daily volumes,
thousand BOE per day 510 585 577 485
Anadarko Petroleum Corporation
Financial and Operating Guidance
Continuing Operations
As of November 5, 2007
4th Quarter Full Year
2007 Forecast 2007 Forecast
----------------- -----------------
Units Units
----------------- -----------------
Total Sales (MMBOE) (a) 48 - 50 205 - 207
Crude Oil (MBbl/d): 180 - 189 201 - 212
United States 100 - 110 125 - 130
Algeria 62 - 66 60 - 65
Other International 15 - 17 16 - 17
Natural Gas (MMcf/d):
United States 1,840 - 1,875 1,870 - 1,880
Natural Gas Liquids (MBbl/d):
United States 35 - 37 40 - 42
(a) Sales include volumes associated with divestitures of 15.0 MMBOE
through the 3rd Qtr 2007. No production related divestitures are
anticipated in the 4th Qtr.
- ----------------------------------------------------------------------
$/Unit $/Unit
----------------- -----------------
Price Differentials vs NYMEX (w/o
hedges)
Crude Oil ($/Bbl): (6.00)- (7.00) (4.50)- (5.50)
United States (7.00)- (8.00) (7.25)- (8.25)
Algeria (3.00)- (4.00) (1.00)- 1.00
Other International (11.00)-(13.00) (10.00)-(12.00)
Natural Gas ($/Mcf):
United States (1.25)- (1.75) (1.00)- (1.50)
Anadarko Petroleum Corporation
Financial and Operating Guidance
Continuing Operations
As of November 5, 2007
4th Quarter Full Year
2007 Forecast 2007 Forecast
----------------- -----------------
$MM $MM
----------------- -----------------
Other Revenues:
Gathering, Processing &
Marketing Margins 100 - 110 430 - 440
Minerals and Other 25 - 30 85 - 90
Gain on Divestitures 160 - 170 4,730 - 4,740
- ----------------------------------------------------------------------
Costs and Expenses:
$/Boe $/Boe
----------------- -----------------
Oil & Gas Lease Operating 5.25 - 5.50 5.45 - 5.50
Oil & Gas Transportation 2.00 - 2.20 2.00 - 2.05
Depreciation, Depletion and
Amortization 14.25 - 14.75 13.75 - 14.25
Production Taxes (% of Revenue) 11%- 12% 11.5%- 12.5%
$MM $MM
----------------- -----------------
General and Administrative 180 - 195 860 - 875
(excludes restructuring
charges)
Exploration Expense
Non-Cash 170 - 190 625 645
Cash 90 - 100 250 260
Interest Expense 210 - 230 1,070 - 1,090
Other (Income) Expense (10)- 10 (50)- (30)
Effective Tax Rate 40%- 45% 40%- 43%
- ----------------------------------------------------------------------
Avg. Shares Outstanding (MM)
Basic 466 - 467 466 - 468
Diluted 469 - 471 467 - 468
- ----------------------------------------------------------------------
$MM $MM
----------------- -----------------
Capital Investment 1,050 - 1,150 4,130 - 4,230
Capital Projects 1,040 - 1,120 4,015 - 4,095
Capitalized Interest 10 - 30 115 - 135
Anadarko Petroleum Corporation
Commodity Hedge Positions (Excluding Natural Gas Basis)
As of November 5, 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 314 $ 6.74 386 $ 6.27 $10.73
----------------- --------------------------
Total Year 2008
Total Year 2009
----------------------------------
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 1,400 $ 5.32 $ 7.50 $10.97
----------------------------------
----------------------------------
Total Year 2009 50 $ 5.00 $ 7.50 $12.60
----------------------------------
Prices are weighted averages of all positions for each transaction
type presented.
Anadarko Petroleum Corporation
Natural Gas Basis Hedge Positions
As of November 5, 2007
- ----------------------------------------------------------------------
----------------------------------------
Daily Volume (MMMBtu's) by Pricing Point
- ----------------------------------------------------------------------
Pricing Point 2007 2008 2009 2010
- ----------------------------------------------------------------------
Gulf Coast 131 110 0 0
Mid Continent 220 350 180 35
Rocky Mountains 158 375 330 310
West Texas 10 10 0 0
----------------------------------------
Total Daily Volume Hedged 519 845 510 345
========================================
----------------------------------------
Average Price Differential to Henry Hub
- ----------------------------------------------------------------------
Pricing Point 2007 2008 2009 2010
- ----------------------------------------------------------------------
Gulf Coast $(0.614) $(0.475) $ - $ -
Mid Continent $(0.986) $(0.999) $(0.730) $(0.611)
Rocky Mountains $(1.661) $(1.467) $(1.171) $(1.129)
West Texas $(1.196) $(1.080) $ - $ -
----------------------------------------
Average Price Differential
Hedged $(1.104) $(1.140) $(1.015) $(1.077)
========================================
Rockies Export Firm Transportation
As of November 5, 2007
- ---------------------------------------------------------------------
-----------------------------
Daily Volume (MMMBtu's) by
Pricing Point
- ---------------------------------------------------------------------
Delivery/ Pricing Point 2007 2008 2009
- ---------------------------------------------------------------------
Mid Continent 491 491 491
West Coast 88 88 88
San Juan 15 15 15
-----------------------------
Total 594 594 594
=============================
(a)Assumes ROFR rights are exercised
- ---------------------------------------------------------------------
Anadarko Petroleum Corporation
Retained Properties Sales
Recent Performance and 2007 Guidance
As of November 5, 2007
Q4 2006 Q1 2007 Q2 2007 Q3 2007
Actuals Actuals Actuals Actuals
--------- --------- --------- ---------
TOTAL SALES (MMBOE) 48.5 49.2 46.8 46.5
Natural Gas (MMcf/d) 1,791.5 1,794.3 1,639.1 1,646.9
Crude Oil (MBbl/d) 203.4 207.9 202.0 192.0
Natural Gas Liquids (MBbl/d) 34.2 39.2 39.0 39.4
ROCKIES
Natural Gas (MMcf/d) 917.2 934.4 840.4 849.3
Crude Oil (MBbl/d) 23.1 23.4 23.8 24.0
Natural Gas Liquids (MBbl/d) 16.9 16.2 15.2 15.8
Total Sales (MMBOE) 17.4 17.6 16.3 16.7
SOUTHERN
Natural Gas (MMcf/d) 639.5 645.3 617.3 565.6
Crude Oil (MBbl/d) 12.2 10.9 10.2 8.6
Natural Gas Liquids (MBbl/d) 10.3 14.3 14.4 13.8
Total Sales (MMBOE) 11.6 11.9 11.6 10.7
GULF OF MEXICO
Natural Gas (MMcf/d) 239.7 223.2 200.5 240.0
Crude Oil (MBbl/d) 63.0 61.3 67.2 62.8
Natural Gas Liquids (MBbl/d) 4.2 4.0 4.6 5.0
Total Sales (MMBOE) 9.6 9.2 9.6 9.9
INTERNATIONAL / FRONTIER
Natural Gas (MMcf/d) 0.4 0.3 0.3 0.3
Crude Oil (MBbl/d) 105.1 112.4 100.8 96.6
Natural Gas Liquids (MBbl/d) - - - -
Total Sales (MMBOE) 9.7 10.1 9.2 8.9
- ----------------------------------------------------------------------
Q4 2007 Total Year 2007
Guidance Guidance
----------------------- -----------------------
TOTAL SALES (MMBOE) 48.0 - 50.0 190.0 - 192.0
Natural Gas
(MMcf/d) 1,840.0 - 1,875.0 1,730.0 - 1,739.0
Crude Oil (MBbl/d) 180.0 - 189.0 195.0 - 198.0
Natural Gas Liquids
(MBbl/d) 35.0 - 37.0 38.0 - 39.0
ROCKIES
Natural Gas
(MMcf/d) 850.0 - 855.0 868.0 - 870.0
Crude Oil (MBbl/d) 24.0 - 26.0 23.8 - 24.0
Natural Gas Liquids
(MBbl/d) 13.5 - 14.0 15.2 - 15.3
Total Sales (MMBOE) 16.5 - 16.8 67.0 - 67.3
SOUTHERN
Natural Gas
(MMcf/d) 545.0 - 565.0 593.0 - 598.0
Crude Oil (MBbl/d) 8.0 - 9.0 9.4 - 9.7
Natural Gas Liquids
(MBbl/d) 13.5 - 14.0 14.0 - 14.1
Total Sales (MMBOE) 10.3 - 10.8 44.6 - 45.1
GULF OF MEXICO
Natural Gas
(MMcf/d) 455.0 - 460.0 280.0 - 281.0
Crude Oil (MBbl/d) 51.0 - 54.0 60.5 - 61.5
Natural Gas Liquids
(MBbl/d) 4.5 - 5.0 4.5 - 4.6
Total Sales (MMBOE) 12.1 - 12.5 40.8 - 41.2
INTERNATIONAL /
FRONTIER
Natural Gas
(MMcf/d) 0.0 - 0.0 0.2 - 0.2
Crude Oil (MBbl/d) 97.0 - 100.0 101.5 - 102.5
Natural Gas Liquids
(MBbl/d) - -
Total Sales (MMBOE) 8.9 - 9.2 37.1 - 37.4
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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
or
Kristin Stomberg, 832-636-1156
kristin.stomberg@anadarko.com