Anadarko Announces 2012 Fourth-Quarter and Full-Year Results

Marketwired

HOUSTON, TX--(Marketwire - Feb 4, 2013) - Anadarko Petroleum Corporation (NYSE: APC) today announced 2012 fourth-quarter results, reporting net income attributable to common stockholders of $203 million, or $.40 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 $254 million, or $.51 per share (diluted) on an after-tax basis.(1) Cash flow from operating activities in the fourth quarter of 2012 was $2.220 billion. Discretionary cash flow for the quarter totaled $1.612 billion.(2)

For the year ended Dec. 31, 2012, Anadarko reported net income attributable to common stockholders of $2.391 billion, or $4.74 per share (diluted), and full-year 2012 cash flow from operating activities was $8.339 billion. Discretionary cash flow for the year totaled $7.157 billion.

2012 Operational Highlights

  • Delivered record sales volumes, representing an 8-percent increase over 2011
  • Achieved gross processed production milestones of 100,000 barrels of oil equivalent (BOE) per day in four U.S. onshore plays
  • Added 434 million BOE of proved reserves, replacing 162 percent of production, before the effects of price revisions
  • Announced two of the world's largest discoveries of 2012 offshore Mozambique

"Anadarko's outstanding operational results in 2012 demonstrated the flexibility and strength of our capital-efficient portfolio," said Anadarko President and CEO Al Walker. "We achieved record production, highlighted by a 25,000 barrel-per-day increase in higher-margin liquids sales volumes over 2011, while continuing to safely improve efficiencies in every segment of our business. We achieved a reserve-replacement ratio of 162 percent, before the effects of price revisions, at competitive costs, and we remain on track to meet our goal of 3 billion BOE of proved reserves by the end of 2014. We also made significant progress advancing several large-scale development projects, contributing to our transparent future growth. We delivered a 67-percent success rate in 2012 from our deepwater exploration and appraisal drilling program, where we've had a very strong three-year average success rate of almost 70 percent. The combination of industry-leading deepwater exploration success and strong, capital-efficient operating results gives Anadarko a track record our employees are very proud of and look forward to building upon in 2013."

2012 Sales Volumes and Proved Reserves
Anadarko's full-year sales volumes of natural gas, crude oil and natural gas liquids (NGLs) totaled a record 268 million BOE, or approximately 732,000 BOE per day, an increase of 8 percent over full-year 2011 sales volumes of approximately 248 million BOE. Fourth-quarter 2012 sales volumes of natural gas, crude oil and NGLs totaled 68 million BOE, or 741,000 BOE per day.

Anadarko added 434 million BOE of proved reserves in 2012, before the effects of price revisions, and incurred oil and natural gas exploration and development costs of $6.358 billion.(2) The company estimates its proved reserves at year-end 2012 totaled 2.56 billion BOE, with 74 percent of its reserves in the proved developed category and 26 percent categorized as proved undeveloped. At year-end 2012, Anadarko's proved reserves were comprised of 46 percent liquids and 54 percent natural gas.

2012 U.S. Onshore Highlights
Anadarko's U.S. onshore operating areas achieved a 28-percent increase in oil sales volumes for the full year relative to 2011. As announced in December, the company achieved gross processed production milestones of 100,000 BOE per day in four core growth plays (Wattenberg, Eagleford, Greater Natural Buttes and Marcellus), and made significant progress to enable future production growth throughout its U.S. onshore portfolio by continuing to expand its large and growing midstream infrastructure.

During 2012, Anadarko increased the net estimated resource potential in the core of its liquids-rich Wattenberg Horizontal play to a new range of 1.0 billion to 1.5 billion BOE, with significant additional potential on the company's large mineral interest outside the core of the field. The Wattenberg field continues to generate outstanding economics, with rates of return in excess of 100 percent, and delivered sales volumes growth of more than 25 percent over 2011, including a 41-percent increase in oil sales volumes.

In the liquids-rich Eagleford Shale, Anadarko achieved a 93-percent increase in sales volumes and continued to significantly improve drilling and completions performance over 2011. By the end of 2012, drilling cycle times in the field averaged 9.2 days from spud to rig release, representing a 26-percent improvement over the fourth quarter of 2011. Other core areas that demonstrated record sales-volumes growth in 2012 included Greater Natural Buttes, Marcellus, Permian oil and the East Texas Horizontal play.

2012 International and Deepwater Highlights
In 2012, Anadarko continued a robust worldwide exploration and appraisal program, participating in more than 25 deepwater wells. As previously announced, the company made two new significant natural gas discoveries offshore Mozambique during 2012 at the Golfinho and Atum prospects. These discoveries more than doubled Anadarko's previous estimated recoverable resources in the operated Offshore Area 1 to a range of 35 trillion cubic feet (Tcf) to 65-plus Tcf. Anadarko also continued its active appraisal drilling and testing programs, the results of which verified the high deliverability of both the Prosperidade and Golfinho/Atum complexes.

The company continued to advance the Mozambique liquefied natural gas (LNG) development toward first sales in 2018. In December, Anadarko reached Heads of Agreement with Eni, establishing foundational principles for the coordinated development of common natural gas reservoirs in Offshore Areas 1 and 4. Anadarko also awarded competitive Front-End Engineering and Design contracts for both the offshore installation and an initial, four-train onshore LNG park. 

In West Africa, the company achieved significant exploration and appraisal success in discovering and delineating oil opportunities offshore Ghana and Côte d'Ivoire. In the Deepwater Tano Block offshore Ghana, Anadarko and its partners continued to advance the TEN (Tweneboa, Enyenra and Ntomme) complex by drilling three successful exploration/appraisal wells and submitting a Plan of Development to the Ghanaian government. The partnership also increased production at Jubilee to more than 110,000 barrels of oil per day, through the successful application of acid jobs and the startup of the initial phase-1A drilling program. The company's Paon discovery offshore Côte d'Ivoire confirmed the extension of the upper Cretaceous fan play and could potentially anchor a new oil development.

The company achieved first oil in March at its Caesar/Tonga mega project in the deepwater Gulf of Mexico and, during the fourth quarter, drilled another successful development well in the field. Anadarko advanced its Heidelberg discovery by ordering long-lead items and expects to seek project sanction by mid-year 2013. In addition, the company drilled its first development well at its sanctioned Lucius development, encountering 910 net feet of oil pay.

In 2013, Anadarko is continuing its active international and deepwater drilling program with exploration, appraisal, completions and development activities under way in the Gulf of Mexico. Internationally, Anadarko recently spud the first of two wells offshore Kenya, and expects to achieve initial oil production during the first quarter of 2013 from the first of three facilities in the El Merk complex in Algeria.

2012 Financial Highlights

  • Fully repaid $2.5 billion of borrowings under the company's revolving credit facility
  • Accelerated value by monetizing more than $1 billion in assets
  • Resolved the Algerian TPE dispute, providing a $4.4 billion net-present-value benefit
  • Successfully completed the Western Gas Equity Partners, LP (NYSE: WGP) initial public offering

"Anadarko further strengthened its balance sheet during 2012 by repaying all borrowings under its revolving credit facility and improving the company's net-debt-to-adjusted-capitalization(2) ratio from 41 percent at year-end 2011 to 34 percent at year-end 2012," Walker said. "We ended the year with $2.5 billion of cash on hand, bolstered by the collection of $1 billion associated with the Algeria exceptional profits tax resolution. During the year, we actively managed our portfolio through various monetizations that accelerated significant value for our shareholders. Among these monetizations were the previously announced Lucius and Salt Creek carried-interest agreements, as well as a $114 million transaction for approximately 59,000 acres south of our core Wattenberg activity, while retaining a 20-percent royalty interest on our fee mineral acreage. We were also very pleased with the initial public offering of WGP, which established a current market value of more than $6.5 billion for Anadarko's remaining 91-percent interest. Value acceleration will continue to be a priority for us in 2013, as demonstrated by the recently announced divestiture of our equity interest in the OCI soda ash business for $310 million and additional potential consideration."

Anadarko generated $852 million of adjusted free cash flow(2) during the year, which includes the impact of $529 million of capital expenditures incurred by Western Gas Partners, LP (NYSE: WES).

Anadarko plans to communicate its 2013 capital program and performance expectations during an Investor Conference Call, scheduled for Feb. 20, 2013.

Operations Report
For more details on Anadarko's 2012 operations, please refer to the operations report on fourth-quarter 2012 activity. The report is available at www.anadarko.com on the Investor Relations page.

Conference Call Tomorrow at 9 a.m. CST, 10 a.m. EST
Anadarko will host a conference call on Tuesday, February 5, at 9 a.m. Central Standard Time (10 a.m. Eastern Standard Time) to discuss fourth-quarter and full-year results. The dial-in number is 855.812.0464 in the United States or 970.300.2271 for international calls. The confirmation number is 69777651. 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 call.

Financial Data
Seven pages of summary financial data follow, including proved reserves, costs incurred and the company's current hedge positions.

(1) See the accompanying table for details of certain items affecting comparability.

(2) See the accompanying tables for reconciliations of GAAP to non-GAAP financial measures and a statement indicating why management believes the non-GAAP 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 2012, the company had approximately 2.56 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 finalize year-end reserves, drill, develop and commercially operate the drilling prospects identified in this news release, continue to coordinate development activities with Eni in Mozambique, successfully plan, secure necessary government approvals, finance, build and operate an LNG project and WGP's market performance and the impact on Anadarko's ownership interest. 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: The United States Securities and Exchange Commission ("SEC") permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC's definitions for such terms. Anadarko uses certain terms in this news release, such as "net estimated resource potential," "estimated recoverable 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 December 31, 2012  

millions except per-share amounts
  Before
Tax
    After
Tax
    Per Share
(diluted)
 
Unrealized gains (losses) on derivatives, net*   $ 162     $ 102     $ 0.20  
Realized losses on interest-rate swaps     (64 )     (41 )     (0.09 )
Gains (losses) on divestitures, net     (48 )     (52 )     (0.10 )
Impairments     (223 )     (143 )     (0.28 )
Change in uncertain tax positions (FIN 48)     --       (38 )     (0.08 )
Deepwater Horizon settlement and related costs     (3 )     (2 )     --  
WES general partner Unit Appreciation Rights     (126 )     (80 )     (0.16 )
    $ (302 )   $ (254 )   $ (0.51 )
                         

* For the quarter ended December 31, 2012, before-tax unrealized gains (losses) on derivatives, net includes $3 million related to commodity derivatives, $157 million related to other derivatives, and $2 million related to gathering, processing, and marketing sales. 

       
    Quarter Ended December 31, 2011  

millions except per-share amounts
  Before
Tax
    After
Tax
    Per Share
(diluted)
 
Unrealized gains (losses) on derivatives, net*   $ 151     $ 96     $ 0.19  
Realized losses on interest-rate swaps     (57 )     (36 )     (0.07 )
Gains (losses) on divestitures, net     265       247       0.49  
Impairments, including unproved properties     (1,556 )     (1,012 )     (2.03 )
Change in uncertain tax positions (FIN 48)     --       (11 )     (0.02 )
Deepwater Horizon settlement and related costs     147       94       0.19  
Tronox-related contingent loss     (250 )     (159 )     (0.32 )
    $ (1,300 )   $ (781 )   $ (1.57 )

* For the quarter ended December 31, 2011, before-tax unrealized gains (losses) on derivatives, net includes $174 million related to commodity derivatives, $(27) million related to other derivatives, and $4 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     Year Ended  
    December 31,     December 31,  
millions   2012     2011     2012     2011  
Net cash provided by operating activities   $ 2,220     $ (2,087 )   $ 8,339     $ 2,505  
Adjustments                                
  Deepwater Horizon settlement and related costs     4       3,891       (6 )     3,948  
  Algeria exceptional profits tax settlement     (392 )     --       (1,006 )     --  
  Change in accounts receivable     (111 )     54       (520 )     993  
  Change in accounts payable and accrued expenses     (10 )     (34 )     476       (284 )
  Change in other items--net     (99 )     (72 )     (126 )     16  
Discretionary cash flow from operations   $ 1,612     $ 1,752     $ 7,157     $ 7,178  
                                 
 
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
 
    Quarter Ended     Year Ended
    December 31,     December 31,
millions   2012     2011     2012     2011
Discretionary cash flow from operations   $ 1,612     $ 1,752     $ 7,157     $ 7,178
Less: Capital expenditures*     1,933       1,942       7,311       6,553
Free cash flow   $ (321 )   $ (190 )   $ (154 )   $ 625
Collection of Algeria exceptional profits tax receivable     392       --       1,006       --
Adjusted free cash flow   $ 71     $ (190 )   $ 852     $ 625
                               

* Includes Western Gas Partners, LP (WES) capital expenditures of $169 million and $56 million for the three months ended December 31, 2012 and 2011, respectively, and $529 million and $439 million for the year ended December 31, 2012 and 2011, respectively. 

    Quarter Ended     Quarter Ended  
    December 31, 2012     December 31, 2011  

millions except per-share amounts
  After
Tax
    Per Share
(diluted)
    After
Tax
    Per Share
(diluted)
 
Net income (loss) attributable to common stockholders   $ 203     $ 0.40     $ (358 )   $ (0.72 )
Less: Certain items affecting comparability     (254 )     (0.51 )     (781 )     (1.57 )
Adjusted net income (loss)   $ 457     $ 0.91     $ 423     $ 0.85  

Presented below are reconciliations of costs incurred (GAAP) to oil and natural gas exploration and development costs (non-GAAP) and total debt (GAAP) to net debt (non-GAAP). Management believes oil and natural gas exploration and development costs is a more accurate reflection of the expenditures incurred during the current year, excluding certain obligations to be paid in future periods. 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. 

    Year Ended  
    December 31,  
millions   2012  
Costs incurred   $ 6,367  
Asset retirement obligation liability incurred     (98 )
Cash expenditures for asset retirement obligations     89  
Oil and natural gas exploration and development costs   $ 6,358  
       
    December 31,  
millions   2012  
Total debt   $ 13,269  
Less: Cash and cash equivalents     2,471  
Net debt   $ 10,798  
         
Net debt   $ 10,798  
Stockholders' equity     20,629  
Adjusted capitalization   $ 31,427  
         
Net debt to adjusted capitalization ratio     34 %
   
Anadarko Petroleum Corporation  
(Unaudited)  
   
    Quarter Ended     Year Ended  
Summary Financial Information   December 31,     December 31,  
millions except per-share amounts    2012     2011     2012     2011  
Consolidated Statements of Income                                
Revenues and Other                                
Natural-gas sales   $ 762     $ 736     $ 2,444     $ 3,300  
Oil and condensate sales     2,099       2,124       8,728       8,072  
Natural-gas liquids sales     311       382       1,224       1,462  
Gathering, processing, and marketing sales     240       298       911       1,048  
Gains (losses) on divestitures and other, net     (2 )     299       104       85  
Total     3,410       3,839       13,411       13,967  
Costs and Expenses                                
Oil and gas operating     244       263       976       993  
Oil and gas transportation and other     245       258       955       891  
Exploration     284       354       1,946       1,076  
Gathering, processing, and marketing     211       201       763       791  
General and administrative     430       276       1,246       1,060  
Depreciation, depletion, and amortization     1,028       928       3,964       3,830  
Other taxes     254       360       1,224       1,492  
Impairments     223       1,487       389       1,774  
Algeria exceptional profits tax settlement     --       --       (1,797 )     --  
Deepwater Horizon settlement and related costs     3       (147 )     18       3,930  
Total     2,922       3,980       9,684       15,837  
Operating Income (Loss)     488       (141 )     3,727       (1,870 )
Other (Income) Expense                                
Interest expense     181       197       742       839  
(Gains) losses on derivatives, net     (249 )     (161 )     (326 )     461  
Other (income) expense, net     10       256       (254 )     254  
Total     (58 )     292       162       1,554  
Income (Loss) Before Income Taxes     546       (433 )     3,565       (3,424 )
Income Tax Expense (Benefit)     356       (94 )     1,120       (856 )
Net Income (Loss)   $ 190     $ (339 )   $ 2,445     $ (2,568 )
Net Income (Loss) Attributable to Noncontrolling Interests     (13 )     19       54       81  
Net Income (Loss) Attributable to Common Stockholders   $ 203     $ (358 )   $ 2,391     $ (2,649 )
Per Common Share:                                
Net income (loss) attributable to common stockholders--basic   $ 0.40     $ (0.72 )   $ 4.76     $ (5.32 )
Net income (loss) attributable to common stockholders--diluted   $ 0.40     $ (0.72 )   $ 4.74     $ (5.32 )
Average Number of Common Shares Outstanding--Basic     500       498       500       498  
Average Number of Common Shares Outstanding--Diluted     502       498       502       498  
                                 
Exploration Expense                                
Dry hole expense   $ 94     $ 79     $ 440     $ 154  
Impairments of unproved properties     61       123       1,104       471  
Geological and geophysical expense     62       94       151       246  
Exploration overhead and other     67       58       251       205  
Total   $ 284     $ 354     $ 1,946     $ 1,076  
   
   
Anadarko Petroleum Corporation  
(Unaudited)  
   
    Quarter Ended     Year Ended  
Summary Financial Information   December 31,     December 31,  
millions   2012     2011     2012     2011  
Cash Flows from Operating Activities                                
Net income (loss)   $ 190     $ (339 )   $ 2,445     $ (2,568 )
Depreciation, depletion, and amortization     1,028       928       3,964       3,830  
Deferred income taxes     69       (266 )     164       (1,461 )
Dry hole expense and impairments of unproved properties     155       202       1,544       625  
Impairments     223       1,487       389       1,774  
(Gains) losses on divestitures, net     48       (265 )     71       (22 )
Unrealized (gains) losses on derivatives, net     (162 )     (151 )     377       616  
Deepwater Horizon settlement and related costs     3       (147 )     18       3,930  
Algeria exceptional profits tax settlement     --       --       (1,797 )     --  
Tronox-related contingent loss     --       250       (250 )     250  
Other     58       53       232       204  
Discretionary Cash Flow from Operations     1,612       1,752       7,157       7,178  
Deepwater Horizon settlement and related costs     (4 )     (3,891 )     6       (3,948 )
Algeria exceptional profits tax settlement     392       --       1,006       --  
(Increase) decrease in accounts receivable     111       (54 )     520       (993 )
Increase (decrease) in accounts payable and accrued expenses     10       34       (476 )     284  
Other items--net     99       72       126       (16 )
Net Cash Provided by Operating Activities   $ 2,220     $ (2,087 )   $ 8,339     $ 2,505  
                                 
Capital Expenditures   $ 1,933     $ 1,942     $ 7,311     $ 6,553  
             
    December 31,     December 31,  
millions   2012     2011  
Condensed Balance Sheets                
Cash and cash equivalents   $ 2,471     $ 2,697  
Algeria exceptional profits tax settlement     730       --  
Other current assets     3,594       4,234  
Net properties and equipment     38,398       37,501  
Other assets     1,716       1,516  
Goodwill and other intangible assets     5,680       5,831  
Total Assets   $ 52,589     $ 51,779  
Current portion of long-term debt   $ --     $ 170  
Other current liabilities     3,994       4,729  
Long-term debt     13,269       15,060  
Other long-term liabilities     13,444       12,837  
Stockholders' equity     20,629       18,105  
Noncontrolling interests     1,253       878  
Total Liabilities and Equity   $ 52,589     $ 51,779  
Capitalization                
Total debt   $ 13,269     $ 15,230  
Stockholders' equity     20,629       18,105  
Total   $ 33,898     $ 33,335  
Capitalization Ratios                
Total debt     39 %     46 %
Stockholders' equity     61 %     54 %
 
 
Anadarko Petroleum Corporation
(Unaudited)
 
Sales Volumes and Prices
                                     
    Average Daily Volumes   Sales Volumes   Average Sales Price
   
Natural Gas
MMcf/d
  Crude Oil &
Condensate
MBbls/d
 
NGLs
MBbls/d
 
Natural Gas
Bcf
  Crude Oil &
Condensate
MMBbls
 
NGLs
MMBbls
 
Natural Gas
Per Mcf
  Crude Oil &
Condensate
Per Bbl
 
NGLs
Per Bbl
Quarter Ended December 31, 2012                                          
United States   2,521   159   87   232   15   8   $ 3.28   $ 92.50   $ 38.97
Algeria   --   47   --   --   4   --     --     109.68     --
Other International   --   28   --   --   3   --     --     107.56     --
Total   2,521   234   87   232   22   8   $ 3.28   $ 97.74   $ 38.97
                                           
Quarter Ended December 31, 2011                                          
United States   2,328   129   75   214   12   7   $ 3.43   $ 100.32   $ 55.29
Algeria   --   60   --   --   6   --     --     111.29     --
Other International   --   31   --   --   2   --     --     110.98     --
Total   2,328   220   75   214   20   7   $ 3.43   $ 104.82   $ 55.29
                                           
Year Ended December 31, 2012                                          
United States   2,495   149   83   913   55   30   $ 2.68   $ 97.46   $ 40.44
Algeria   --   54   --   --   20   --     --     110.29     --
Other International   --   30   --   --   11   --     --     112.61     --
Total   2,495   233   83   913   86   30   $ 2.68   $ 102.35   $ 40.44
                                           
Year Ended December 31, 2011                                          
United States   2,334   132   74   852   48   27   $ 3.87   $ 97.70   $ 53.95
Algeria   --   57   --   --   21   --     --     108.74     --
Other International   --   28   --   --   10   --     --     110.12     --
Total   2,334   217   74   852   79   27   $ 3.87   $ 102.24   $ 53.95
                                           
         
    Average Daily Volumes MBOE/d   Sales Volumes MMBOE
         
Quarter Ended December 31, 2012   741   68
Quarter Ended December 31, 2011   683   63
         
Year Ended December 31, 2012   732   268
Year Ended December 31, 2011   680   248
         
 
 
Sales Revenue and Commodity Derivatives
                                       
    Sales   Commodity Derivatives Gain (Loss)  
                Natural Gas   Crude Oil & Condensate   NGLs  
millions   Natural Gas   Crude Oil & Condensate   NGLs   Realized   Unrealized   Realized   Unrealized   Realized   Unrealized  
Quarter Ended December 31, 2012                                                        
United States   $ 762   $ 1,351   $ 311   $ 114   $ 20   $ 34   $ (13 ) $ 4   $ (4 )
Algeria     --     469     --     --     --     1     --     --     --  
Other International     --     279     --     --     --     --     --     --     --  
Total   $ 762   $ 2,099   $ 311   $ 114   $ 20   $ 35   $ (13 ) $ 4   $ (4 )
                                                         
Quarter Ended December 31, 2011                                                        
United States   $ 736   $ 1,190   $ 382   $ 73   $ 246   $ (2 ) $ (57 ) $ --   $ (15 )
Algeria     --     614     --     --     --     --     --     --     --  
Other International     --     320     --     --     --     --     --     --     --  
Total   $ 736   $ 2,124   $ 382   $ 73   $ 246   $ (2 ) $ (57 ) $ --   $ (15 )
                                                         
Year Ended December 31, 2012                                                        
United States   $ 2,444   $ 5,332   $ 1,224   $ 678   $ (444 ) $ 70   $ 64   $ 10   $ 14  
Algeria     --     2,182     --     --     --     (5 )   --     --     --  
Other International     --     1,214     --     --     --     --     --     --     --  
Total   $ 2,444   $ 8,728   $ 1,224   $ 678   $ (444 ) $ 65   $ 64   $ 10   $ 14  
                                                         
Year Ended December 31, 2011                                                        
United States   $ 3,300   $ 4,667   $ 1,462   $ 288   $ 192   $ (58 ) $ 131   $ (1 ) $ 4  
Algeria     --     2,258     --     --     --     (3 )   9     --     --  
Other International     --     1,147     --     --     --     --     --     --     --  
Total   $ 3,300   $ 8,072   $ 1,462   $ 288   $ 192   $ (61 ) $ 140   $ (1 ) $ 4  
   
   
Anadarko Petroleum Corporation  
Estimated Year-End Proved Reserves 2010 - 2012  
   
MMBOE   2012     2011     2010  
Proved Reserves                  
Beginning of year   2,539     2,422     2,304  
Reserves additions and revisions                  
  Discoveries and extensions   82     174     83  
  Infill-drilling additions   383     203     312  
    Drilling-related reserves additions and revisions   465     377     395  
  Other non-price-related revisions   (31 )   7     (66 )
    Net organic reserves additions   434     384     329  
  Acquisition of proved reserves in place   4     --     1  
  Price-related revisions   (68 )   8     29  
Total reserves additions and revisions   370     392     359  
Sales in place   (81 )   (29 )   (6 )
Production   (268 )   (246 )   (235 )
End of year   2,560     2,539     2,422  
Proved Developed Reserves                  
Beginning of year   1,811     1,673     1,624  
End of year   1,883     1,811     1,673  
 
 
Anadarko Petroleum Corporation
Commodity Hedge Positions (Excluding Natural Gas Basis)
As of February 4, 2013
                 
        Weighted Average Price per MMBtu
    Volume (thousand MMBtu/d)   Floor Sold   Floor Purchased   Ceiling Sold
Natural Gas                      
  Two-Way Collars                      
  2013 (April - October)   600     n/a   $ 3.18   $ 4.00
                         
  Fixed Price - Financial                      
  2013   1,185   $ 4.00            
                       
        Weighted Average Price per barrel
    Volume (MBbls/d)   Floor Sold   Floor Purchased   Ceiling Sold
Crude Oil                      
  Three-Way Collars                      
  2013                      
    Brent   26   $ 85.00   $ 105.00   $ 125.15
                       
  Fixed Price - Financial                      
  2013                      
    Brent   61   $ 108.72            
    WTI   47   $ 94.43            
    108   $ 102.50            
                     
                     
Interest Rate Derivatives
As of February 4, 2013
                     
Instrument   Notional Amt.   Start Date   Maturity   Rate Paid   Rate 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   Sept. 2016   Sept. 2026   5.91%   3M LIBOR
Swap   $750 Million   Sept. 2016   Sept. 2046   5.86%   3M LIBOR
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