Anadarko Announces Third-Quarter Results
HOUSTON, TX -- (Marketwire) -- 10/29/12 -- Anadarko Petroleum Corporation (APC) today announced third-quarter 2012 income attributable to common stockholders of $121 million, or $0.24 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items decreased net income by approximately $301 million, or $0.60 per share (diluted), on an after-tax basis.(1) Cash flow from operating activities in the third quarter of 2012 was approximately $2.229 billion, and discretionary cash flow totaled $1.794 billion.(2)
Third-Quarter 2012 Highlights
- Announced a 3-million-BOE (barrels of oil equivalent) increase to the midpoint of full-year sales-volumes guidance, while maintaining previous full-year capital spending expectations
- Increased sales volumes by 79,000 BOE per day over the third quarter of 2011, representing a 12-percent increase
- Collected an additional $501 million associated with the Algeria tax resolution
- Enhanced the value of two major projects by increasing the estimated recoverable resources in Colorado's Wattenberg Horizontal (HZ) program and Mozambique's Golfinho/Atum complex
"Anadarko is delivering another year of strong operational results and continued cost reductions, and with this momentum, we are pleased to increase our full-year sales-volumes guidance to a new range of 265 to 267 million BOE with no corresponding increase in capital spending," Anadarko President and CEO Al Walker said. "During the quarter, we delivered record liquids volumes of 322,000 barrels per day and safely reduced controllable costs on a per-unit basis in every category relative to the third quarter of last year. The significant cash generation year-to-date also enabled us to strengthen the balance sheet by reducing borrowings under our revolving credit facility by $1.5 billion, while maintaining approximately $2.5 billion of cash on hand at the end of the third quarter."
Anadarko reported total sales volumes of 68 million BOE, or 739,000 BOE per day, during the third quarter. Approximately 1 million BOE of production in the Gulf of Mexico was shut in during the quarter as a result of weather-related downtime. The company achieved record liquids sales volumes during the quarter with oil volumes averaging 234,000 barrels per day and natural gas liquids averaging 88,000 barrels per day, equating to a 41,000-barrel-per-day increase in total liquids over the third quarter of 2011. Natural gas volumes averaged approximately 2.5 billion cubic feet per day.
During the quarter, Anadarko continued to ramp up activity in its Wattenberg HZ program in northeast Colorado and in the Eagleford Shale in south Texas, with these fields combining for an increase of more than 800,000 barrels of liquids sales volumes over the second quarter of this year. The Wattenberg HZ program continued to deliver rates of return exceeding 100 percent and, due to the exceptional well performance in both the Niobrara and Codell formations coupled with identified down-spacing opportunities and longer laterals, the company increased the lower end of its estimated resource range by 500 million BOE to a new range of 1.0 billion to 1.5 billion BOE.
Anadarko completed its four-well, initial appraisal program in the Golfinho/Atum complex offshore Mozambique. All four appraisal wells were successful, resulting in the partnership increasing the field's estimated recoverable natural gas resources to a new range of 15 to 35 trillion cubic feet. In addition, the partnership completed its well-testing program in the Prosperidade complex with multiple tests at Lagosta-2. Each of three zones flowed at facility-constrained rates of around 100 million cubic feet per day (MMcf/d). Anadarko currently has two contracted drillships operating offshore Mozambique, with one conducting flow testing in the Golfinho/Atum complex and the other drilling the Pérola Negra (Black Pearl) prospect near the southern end of the Offshore Area 1 Block.
"As a result of the exceptional drilling and testing results in Mozambique to date, we have identified the resources capable of supplying in excess of 50 million tonnes per annum of LNG (liquefied natural gas). In the coming weeks we expect to announce our FEED (Front-End Engineering and Design) contractors for both onshore processing and offshore gathering, which will focus on the foundation development of two trains," said Walker. "We look forward to continuing to work with the government of Mozambique and our partners to advance one of the world's most significant natural gas discoveries in the last 20 years, and one that is capable of enabling Mozambique to become one of the world's largest exporters of LNG in future years."
Operations Report
For more details on Anadarko's operations and exploration program, please refer to the comprehensive report on third-quarter 2012 activity. The report is available at www.anadarko.com on the Investor Relations page.
Conference Call
Tomorrow at 9 a.m. CDT, 10 a.m. EDT
Anadarko will host a conference call on Tuesday, October 30 at 9 a.m. Central Daylight Time (10 a.m. Eastern Daylight Time) to discuss third-quarter results, current operations and the company's outlook for the remainder of 2012. The dial-in number is 855.812.0464 in the United States, or 970.300.2271 internationally. The confirmation number is 37608290. 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 be available on the website for approximately 30 days following the conference call.
Financial Data
Eight pages of summary financial data follow, including current hedge positions and updated financial and production guidance.
(1) See the accompanying table for details of certain items affecting comparability.
(2) See the accompanying table for a reconciliation of GAAP to non-GAAP financial measures and a statement indicating why management believes the non-GAAP financial measures provide useful information for investors.
Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2011, the company had approximately 2.54 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. For more information about Anadarko and APC Flash Feed updates, please visit www.anadarko.com.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Anadarko believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release, including Anadarko's ability to drill, develop and commercially operate the drilling prospects identified in this news release, to meet financial and operating guidance, and to successfully plan, build and operate an LNG project. See "Risk Factors" in the company's 2011 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.
Cautionary Note to U.S. Investors: Effective Jan. 1, 2010, the United States Securities and Exchange Commission ("SEC") permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC's definitions for such terms. Anadarko uses certain terms in this news release, such as "estimated resource range," "estimated recoverable natural gas resources," and similar terms that the SEC's guidelines strictly prohibit Anadarko from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in Anadarko's Form 10-K for the year ended Dec. 31, 2011, File No. 001-08968, available from Anadarko at www.anadarko.com or by writing Anadarko at: Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The Woodlands, Texas 77380, Attn: Investor Relations. This form may also be obtained by contacting the SEC at 1-800-SEC-0330.
Anadarko Petroleum Corporation
Certain Items Affecting Comparability
Quarter Ended September 30, 2012
----------------------------------
Before After Per Share
millions except per-share amounts Tax Tax (diluted)
---------- ---------- ----------
Unrealized gains (losses) on
derivatives, net* $ (456) $ (290) $ (0.58)
Gains (losses) on divestitures, net 6 3 0.01
Impairments, including unproved
properties (5) (4) (0.01)
Algeria exceptional profits tax
settlement (7) (7) (0.01)
Deepwater Horizon settlement and related
costs (4) (3) (0.01)
---------- ---------- ----------
$ (466) $ (301) $ (0.60)
========== ========== ==========
* For the quarter ended September 30, 2012, before-tax unrealized gains (losses) on derivatives, net includes $(437) million related to commodity derivatives, $(14) million related to other derivatives, and $(5) million related to gathering, processing, and marketing sales.
Quarter Ended September 30, 2011
----------------------------------
Before After Per Share
millions except per-share amounts Tax Tax (diluted)
---------- ---------- ----------
Deepwater Horizon settlement and related
costs $ (4,042) $ (2,617) $ (5.26)
Unrealized gains (losses) on
derivatives, net* (692) (440) (0.88)
Gains (losses) on divestitures, net (225) (140) (0.28)
Impairments, including unproved
properties (312) (177) (0.36)
---------- ---------- ----------
$ (5,271) $ (3,374) $ (6.78)
========== ========== ==========
* For the quarter ended September 30, 2011, before-tax unrealized gains (losses) on derivatives, net includes $159 million related to commodity derivatives, $(854) million related to other derivatives, and $3 million related to gathering, processing, and marketing sales.
Reconciliation of GAAP to Non-GAAP Measures
Below are reconciliations of cash provided by operating activities (GAAP) to discretionary cash flow from operations (non-GAAP), free cash flow (non-GAAP), and adjusted free cash flow (non-GAAP), as well as net income (loss) attributable to common stockholders (GAAP) to adjusted net income (loss) (non-GAAP) as required under Regulation G of the Securities Exchange Act of 1934. Management uses discretionary cash flow from operations because it is useful in comparisons of oil and gas exploration and production companies as it excludes fluctuations in assets and liabilities. Management uses free cash flow and adjusted free cash flow to demonstrate the Company's ability to internally fund capital expenditures and to service or incur additional debt. Management uses adjusted net income (loss) to evaluate the Company's operational trends and performance.
Quarter Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
millions 2012 2011 2012 2011
-------- -------- -------- --------
Net cash provided by operating
activities $ 2,229 $ 1,466 $ 6,119 $ 4,592
Add back:
Deepwater Horizon settlement and
related costs 3 22 (10) 57
Algeria exceptional profits tax
settlement (501) - (614) -
Change in accounts receivable (58) 404 (409) 939
Change in accounts payable and
accrued expenses - (9) 486 (250)
Change in other items-net 121 (4) (27) 88
-------- -------- -------- --------
Discretionary cash flow from
operations $ 1,794 $ 1,879 $ 5,545 $ 5,426
======== ======== ======== ========
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
Quarter Ended Nine Months Ended
September 30, September 30,
----------------- -----------------
millions 2012 2011 2012 2011
-------- -------- -------- --------
Discretionary cash flow from operations $ 1,794 $ 1,879 $ 5,545 $ 5,426
Less: Capital expenditures* 1,779 1,303 5,378 4,611
-------- -------- -------- --------
Free cash flow $ 15 $ 576 $ 167 $ 815
======== ======== ======== ========
Collection of Algeria exceptional
profits tax receivable 501 - 614 -
-------- -------- -------- --------
Adjusted free cash flow $ 516 $ 576 $ 781 $ 815
======== ======== ======== ========
* Includes Western Gas Partners, LP (WES) capital expenditures of $139 million and $45 million for the three months ended September 30, 2012 and 2011, respectively, and $360 million and $383 million for the nine months ended September 30, 2012 and 2011, respectively.
Quarter Ended Quarter Ended
September 30, 2012 September 30, 2011
-------------------- --------------------
millions except per-share After Per Share After Per Share
amounts Tax (diluted) Tax (diluted)
--------- --------- --------- ---------
Net income (loss) attributable
to common stockholders $ 121 $ 0.24 $ (3,051) $ (6.12)
Less: Certain items affecting
comparability (301) (0.60) (3,374) (6.78)
--------- --------- --------- ---------
Adjusted net income (loss) $ 422 $ 0.84 $ 323 $ 0.66
========= ========= ========= =========
Presented below is a reconciliation of total debt (GAAP) to net debt (non-GAAP). Management uses net debt as a measure of the Company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand.
September 30,
millions 2012
--------------
Total debt $ 14,141
Less: Cash and cash equivalents 2,532
--------------
Net debt $ 11,609
==============
Net debt $ 11,609
Stockholders' equity 20,393
--------------
Adjusted capitalization $ 32,002
==============
--------------
Net debt to adjusted capitalization ratio 36%
==============
Anadarko Petroleum Corporation
(Unaudited)
Quarter Ended Nine Months Ended
Summary Financial Information September 30, September 30,
------------------ ------------------
millions except per-share amounts 2012 2011 2012 2011
-------- -------- -------- --------
Consolidated Statements of Income
-------- -------- -------- --------
Revenues and Other
-------- -------- -------- --------
Natural-gas sales $ 613 $ 840 $ 1,682 $ 2,564
Oil and condensate sales 2,163 1,905 6,629 5,948
Natural-gas liquids sales 289 377 913 1,080
Gathering, processing, and marketing
sales 218 262 671 750
Gains (losses) on divestitures and
other, net 49 (185) 106 (214)
-------- -------- -------- --------
Total 3,332 3,199 10,001 10,128
======== ======== ======== ========
Costs and Expenses
-------- -------- -------- --------
Oil and gas operating 241 262 732 730
Oil and gas transportation and other 247 217 710 633
Exploration 297 307 1,662 722
Gathering, processing, and marketing 185 214 552 590
General and administrative 285 293 816 784
Depreciation, depletion, and
amortization 979 932 2,936 2,902
Other taxes 267 375 970 1,132
Impairments 4 183 166 287
Algeria exceptional profits tax
settlement 7 - (1,797) -
Deepwater Horizon settlement and
related costs 4 4,042 15 4,077
-------- -------- -------- --------
Total 2,516 6,825 6,762 11,857
======== ======== ======== ========
Operating Income (Loss) 816 (3,626) 3,239 (1,729)
======== ======== ======== ========
Other (Income) Expense
-------- -------- -------- --------
Interest expense 185 206 561 642
(Gains) losses on commodity
derivatives, net 237 (230) (231) (317)
(Gains) losses on other derivatives,
net 14 854 154 939
Other (income) expense, net (10) 40 (264) (2)
-------- -------- -------- --------
Total 426 870 220 1,262
======== ======== ======== ========
Income (Loss) Before Income Taxes 390 (4,496) 3,019 (2,991)
======== ======== ======== ========
Income Tax Expense (Benefit) 248 (1,468) 764 (762)
======== ======== ======== ========
Net Income (Loss) $ 142 $ (3,028) $ 2,255 $ (2,229)
======== ======== ======== ========
Net Income Attributable to
Noncontrolling Interests 21 23 67 62
======== ======== ======== ========
Net Income (Loss) Attributable to
Common Stockholders $ 121 $ (3,051) $ 2,188 $ (2,291)
======== ======== ======== ========
Per Common Share:
======== ======== ======== ========
Net income (loss) attributable to
common stockholders-basic $ 0.24 $ (6.12) $ 4.35 $ (4.60)
Net income (loss) attributable to
common stockholders-diluted $ 0.24 $ (6.12) $ 4.34 $ (4.60)
======== ======== ======== ========
Average Number of Common Shares
Outstanding-Basic 500 498 499 498
======== ======== ======== ========
Average Number of Common Shares
Outstanding-Diluted 502 498 501 498
======== ======== ======== ========
======== ======== ======== ========
Exploration Expense
-------- -------- -------- --------
Dry hole expense $ 142 $ 17 $ 346 $ 75
Impairments of unproved properties 60 179 1,043 348
Geological and geophysical expense 40 52 89 152
Exploration overhead and other 55 59 184 147
-------- -------- -------- --------
Total $ 297 $ 307 $ 1,662 $ 722
======== ======== ======== ========
Anadarko Petroleum Corporation
(Unaudited)
Quarter Ended Nine Months Ended
Summary Financial Information September 30, September 30,
------------------ ------------------
millions 2012 2011 2012 2011
-------- -------- -------- --------
Cash Flows from Operating Activities
-------- -------- -------- --------
Net income (loss) $ 142 $ (3,028) $ 2,255 $ (2,229)
Depreciation, depletion, and
amortization 979 932 2,936 2,902
Deferred income taxes (48) (1,453) 95 (1,195)
Dry hole expense and impairments of
unproved properties 202 196 1,389 423
Impairments 4 183 166 287
(Gains) losses on divestitures, net (6) 225 23 243
Unrealized (gains) losses on
derivatives, net 456 692 539 767
Deepwater Horizon settlement and
related costs 4 4,042 15 4,077
Algeria exceptional profits tax
settlement 7 - (1,797) -
Tronox-related contingent loss - - (250) -
Other 54 90 174 151
-------- -------- -------- --------
Discretionary Cash Flow from
Operations 1,794 1,879 5,545 5,426
Deepwater Horizon settlement and
related costs (3) (22) 10 (57)
Algeria exceptional profits tax
settlement 501 - 614 -
(Increase) decrease in accounts
receivable 58 (404) 409 (939)
Increase (decrease) in accounts
payable and accrued expenses - 9 (486) 250
Other items-net (121) 4 27 (88)
-------- -------- -------- --------
Net Cash Provided by Operating
Activities $ 2,229 $ 1,466 $ 6,119 $ 4,592
======== ======== ======== ========
======== ======== ======== ========
Capital Expenditures $ 1,779 $ 1,303 $ 5,378 $ 4,611
-------- -------- -------- --------
September 30, December 31,
millions 2012 2011
-------------- -------------
Condensed Balance Sheets
-------------- -------------
Cash and cash equivalents $ 2,532 $ 2,697
Algeria exceptional profits tax
settlement 1,122 -
Other current assets 3,670 4,234
Net properties and equipment 37,976 37,501
Other assets 1,664 1,516
Goodwill and other intangible
assets 5,754 5,831
-------------- -------------
Total Assets $ 52,718 $ 51,779
-------------- -------------
Current debt $ 1,039 $ 170
Other current liabilities 3,785 4,729
Long-term debt 13,102 15,060
Other long-term liabilities 13,361 12,837
Stockholders' equity 20,393 18,105
Noncontrolling interests 1,038 878
-------------- -------------
Total Liabilities and Equity $ 52,718 $ 51,779
============== =============
Capitalization
-------------- -------------
Total debt $ 14,141 $ 15,230
Stockholders' equity 20,393 18,105
-------------- -------------
Total $ 34,534 $ 33,335
============== =============
Capitalization Ratios
-------------- -------------
Total debt 41% 46%
Stockholders' equity 59% 54%
============== =============
Anadarko Petroleum Corporation
(Unaudited)
Sales Volumes and Prices
Average Daily Volumes Sales Volumes
-------------------------- --------------------------
Natural Crude Oil & Natural Crude Oil &
Gas Condensate NGLs Gas Condensate NGLs
MMcf/d MBbls/d MBbls/d Bcf MMBbls MMBbls
------- ---------- ------- ------- ---------- -------
Quarter Ended
September 30, 2012
United States 2,499 143 88 231 13 8
Algeria - 61 - - 6 -
Other International - 30 - - 2 -
------- ---------- ------- ------- ---------- -------
Total 2,499 234 88 231 21 8
------- ---------- ------- ------- ---------- -------
Quarter Ended
September 30, 2011
United States 2,271 129 74 209 12 7
Algeria - 54 - - 5 -
Other International - 24 - - 3 -
------- ---------- ------- ------- ---------- -------
Total 2,271 207 74 209 20 7
------- ---------- ------- ------- ---------- -------
Nine Months Ended
September 30, 2012
United States 2,487 146 81 681 40 22
Algeria - 57 - - 16 -
Other International - 30 - - 8 -
------- ---------- ------- ------- ---------- -------
Total 2,487 233 81 681 64 22
------- ---------- ------- ------- ---------- -------
Nine Months Ended
September 30, 2011
United States 2,336 132 74 638 36 20
Algeria - 56 - - 15 -
Other International - 27 - - 8 -
------- ---------- ------- ------- ---------- -------
Total 2,336 215 74 638 59 20
------- ---------- ------- ------- ---------- -------
Average Sales Price
-----------------------------
Natural Crude Oil &
Gas Condensate NGLs
Per Mcf Per Bbl Per Bbl
-------- ----------- --------
Quarter Ended
September 30, 2012
United States $ 2.67 $ 94.19 $ 35.93
Algeria - 109.70 -
Other International - 107.42 -
-------- ----------- --------
Total $ 2.67 $ 99.93 $ 35.93
-------- ----------- --------
Quarter Ended
September 30, 2011
United States $ 4.02 $ 94.02 $ 55.47
Algeria - 108.59 -
Other International - 112.17 -
-------- ----------- --------
Total $ 4.02 $ 99.92 $ 55.47
-------- ----------- --------
Nine Months Ended
September 30, 2012
United States $ 2.47 $ 99.26 $ 40.96
Algeria - 110.46 -
Other International - 114.21 -
-------- ----------- --------
Total $ 2.47 $ 103.90 $ 40.96
-------- ----------- --------
Nine Months Ended
September 30, 2011
United States $ 4.02 $ 96.84 $ 53.48
Algeria - 107.82 -
Other International - 109.79 -
-------- ----------- --------
Total $ 4.02 $ 101.35 $ 53.48
-------- ----------- --------
====================================================
Average Daily Sales Volumes
Volumes MBOE/d MMBOE
--------------- ---------------
Quarter Ended September 30, 2012 739 68
Quarter Ended September 30, 2011 660 61
Nine Months Ended September 30, 2012 729 200
Nine Months Ended September 30, 2011 678 185
============================================================================
Sales Revenue and Commodity Derivatives
Sales
---------------------------
Crude Oil
Natural &
millions Gas Condensate NGLs
-------- ----------- ------
Quarter
Ended
September
30, 2012
United
States $ 613 $ 1,246 $ 289
Algeria - 617 -
Other
Inter-
national - 300 -
-------- ----------- ------
Total $ 613 $ 2,163 $ 289
-------- ----------- ------
Quarter
Ended
September
30, 2011
United
States $ 840 $ 1,118 $ 377
Algeria - 540 -
Other
Inter-
national - 247 -
-------- ----------- ------
Total $ 840 $ 1,905 $ 377
-------- ----------- ------
Nine Months
Ended
September
30, 2012
United
States $ 1,682 $ 3,981 $ 913
Algeria - 1,713 -
Other
Inter-
national - 935 -
-------- ----------- ------
Total $ 1,682 $ 6,629 $ 913
-------- ----------- ------
Nine Months
Ended
September
30, 2011
United
States $ 2,564 $ 3,477 $1,080
Algeria - 1,644 -
Other
Inter-
national - 827 -
-------- ----------- ------
Total $ 2,564 $ 5,948 $1,080
-------- ----------- ------
Commodity Derivatives Gain (Loss)
---------------------------------------------------------------
Crude Oil &
Natural Gas Condensate NGLs
------------------- -------------------- --------------------
millions Realized Unrealized Realized Unrealized Realized Unrealized
-------- ---------- -------- ---------- -------- ----------
Quarter
Ended
September
30, 2012
United
States $ 170 $ (262) $ 21 $ (164) $ 3 $ (11)
Algeria - - 6 - - -
Other
Inter-
national - - - - - -
-------- ---------- -------- ---------- -------- ----------
Total $ 170 $ (262) $ 27 $ (164) $ 3 $ (11)
-------- ---------- -------- ---------- -------- ----------
Quarter
Ended
September
30, 2011
United
States $ 72 $ 7 $ - $ 133 $ (1) $ 19
Algeria - - - - - -
Other
Inter-
national - - - - - -
-------- ---------- -------- ---------- -------- ----------
Total $ 72 $ 7 $ - $ 133 $ (1) $ 19
-------- ---------- -------- ---------- -------- ----------
Nine Months
Ended
September
30, 2012
United
States $ 564 $ (464) $ 36 $ 77 $ 6 $ 18
Algeria - - (6) - - -
Other
Inter-
national - - - - - -
-------- ---------- -------- ---------- -------- ----------
Total $ 564 $ (464) $ 30 $ 77 $ 6 $ 18
-------- ---------- -------- ---------- -------- ----------
Nine Months
Ended
September
30, 2011
United
States $ 215 $ (54) $ (56) $ 188 $ (1) $ 19
Algeria - - (3) 9 - -
Other
Inter-
national - - - - - -
-------- ---------- -------- ---------- -------- ----------
Total $ 215 $ (54) $ (59) $ 197 $ (1) $ 19
-------- ---------- -------- ---------- -------- ----------
Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of October 29, 2012
4th Qtr Total Year
Guidance Guidance
--------------- ---------------
Units Units
--------------- ---------------
Total Sales (MMBOE) 65 - 67 265 - 267
Total Sales (MBOE/d) 711 - 730 724 - 730
Crude Oil (MBbl/d): 225 - 233 231 - 233
United States 151 - 154 148 - 148
Algeria 44 - 46 53 - 54
Other International 30 - 34 30 - 31
Natural Gas (MMcf/d):
United States 2,340 - 2,400 2,450 - 2,465
Natural Gas Liquids (MBbl/d):
United States 92 - 96 84 - 85
----------------------------------------------------------------------------
$ / Unit $ / Unit
--------------- ---------------
Price Differentials vs NYMEX (w/o hedges)
Crude Oil ($/Bbl): 6.50 - 8.50 7.50 - 8.00
United States 0.50 - 2.50 2.50 - 3.00
Algeria 17.75 - 19.75 15.50 - 16.00
Other International 18.50 - 20.50 18.00 - 18.50
Natural Gas ($/Mcf):
United States (0.05) - (0.25) (0.10) - (0.15)
----------------------------------------------------------------------------
Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of October 29, 2012
4th Qtr Total Year
Guidance Guidance*
--------------- ---------------
$ MM $ MM
--------------- ---------------
Other Revenues:
Marketing and Gathering Margin 40 - 50 175 - 185
Minerals and Other 30 - 40 160 - 170
----------------------------------------------------------------------------
Costs and Expenses:
$ / BOE $ / BOE
--------------- ---------------
Oil & Gas Direct Operating 4.00 - 4.20 3.75 - 3.80
Oil & Gas Transportation/Other 3.70 - 3.90 3.60 - 3.65
Depreciation, Depletion and Amortization 14.70 - 15.25 14.55 - 14.75
Production Taxes (% of Revenue) 8.5% - 9.0% 10.0% - 10.5%
$ MM $ MM
--------------- ---------------
General and Administrative 290 - 310 1,110 - 1,130
Exploration Expense
Non-Cash 190 - 210 715 - 735
Cash 150 - 160 420 - 430
Interest Expense (net) 185 - 190 745 - 750
Other (Income) Expense 5 - 45 60 - 100
Tax Rate:
Algeria (All current) 45% - 45% 50% - 55%
Rest of Company (50% Current for 4Q and
20% for FY) 50% - 60% 45% - 50%
----------------------------------------------------------------------------
Avg. Shares Outstanding (MM)
Basic 499 - 500 499 - 500
Diluted 501 - 503 501 - 503
Capital Investment (Excluding Western Gas
Partners, LP) $ MM $ MM
--------------- ---------------
APC Capital Expenditures 1,550 - 1,850 6,400 - 6,700
Capitalized Interest 45 - 50 200 - 200
* Excludes items affecting comparability
Anadarko Petroleum Corporation
Commodity Hedge Positions (Excluding Natural Gas Basis)
As of 10 a.m. CDT on October 29, 2012
Weighted Average Price per Barrel
---------------------------------
Volume Floor Floor Ceiling
(MBbls/d) Sold Purchased Sold
--------- --------- --------- ---------
Crude Oil
Three-Way Collars
2012
Brent 45 $ 85.00 $ 105.00 $ 125.60
WTI 17 $ 71.36 $ 90.91 $ 113.30
--------- --------- --------- ---------
62 $ 81.34 $ 101.22 $ 122.30
2013
Brent 26 $ 85.00 $ 105.00 $ 125.15
Fixed Price - Financial
2012
Brent 40 $ 110.10
WTI 20 $ 101.39
--------- ---------
60 $ 107.19
2013
Brent 34 $ 110.04
Weighted
Volume Average
(thousand Price per
MMBtu/d) MMBtu
--------- ---------
Natural Gas
Fixed Price - Financial
2012 1,000 $ 4.69
2013 1,020 $ 4.00
----------------------------------------------------------------------------
Interest Rate Derivatives
As of October 29, 2012
--------------------------------------------------------------------------
Rate Rate
Instrument Notional Amt. Start Date Maturity Paid Received
--------------------------------------------------------------------------
Swap $750 Million June 2014 June 2024 6.00% 3M LIBOR
Swap $1,100 Million June 2014 June 2044 5.57% 3M LIBOR
Swap $50 Million September 2016 September 2026 5.91% 3M LIBOR
Swap $750 Million September 2016 September 2046 5.86% 3M LIBOR
----------------------------------------------------------------------------
Source: Anadarko Petroleum Corporation
