Anadarko Announces Second-Quarter 2013 Results

Full-Year Sales-Volumes Guidance Increased by 1 Million BOE

Marketwired

HOUSTON, TX--(Marketwired - Jul 29, 2013) - Anadarko Petroleum Corporation (NYSE: APC) today announced second-quarter 2013 net income attributable to common stockholders of $929 million, or $1.83 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items increased net income by approximately $392 million, or $0.78 per share (diluted), on an after-tax basis.(1) Cash flow from operating activities in the second quarter of 2013 was approximately $2.502 billion, and discretionary cash flow totaled $1.908 billion.(2)

Second-Quarter 2013 Highlights

  • Generated $290 million of adjusted free cash flow(2)
  • Increased U.S. onshore oil volumes by almost 20,000 barrels per day over second-quarter 2012
  • Reached milestones at four large-scale oil projects in Algeria, Ghana and the Gulf of Mexico
  • Drilled five deepwater discoveries in the Gulf of Mexico and Mozambique

"We continue to have exceptional performance from our portfolio, as evidenced by the results delivered in the second quarter of 2013," said Anadarko Chairman, President and CEO Al Walker. "Our U.S. onshore activities delivered year-over-year oil growth of 25 percent, averaging approximately 97,000 barrels per day during the quarter. We continued to drive significant improvements into our drilling and completions programs, and costs in each category were favorable to our expectations. We reached milestones at four of our large global oil projects, which are advancing on schedule and on budget, and we achieved a success rate of almost 70 percent in our deepwater exploration/appraisal program, including five new discoveries. We also strengthened the balance sheet, improving our net-debt-to-adjusted-capitalization ratio(2) to 29 percent compared to 34 percent at the end of 2012."

Operations Summary
Anadarko reported total sales volumes of more than 750,000 barrels of oil equivalent (BOE) per day during the second quarter. Liquids sales volumes averaged 309,000 barrels per day, without the benefit of an expected tanker lifting in Algeria, which is anticipated during the third quarter. Natural gas volumes averaged approximately 2.6 billion cubic feet per day. Anadarko is increasing its full-year 2013 sales volumes guidance to a range of 281 to 287 million BOE, from the previous range of 279 to 287 million BOE.

Anadarko's Wattenberg Horizontal program continued to deliver robust growth during the quarter, driving the field average to more than 60,000 barrels of liquids per day, representing an increase of more than 37 percent over the second quarter of 2012. The company's Eagleford Shale program also delivered higher liquids sales volumes, averaging approximately 32,000 barrels per day, representing a 62-percent increase over the second quarter of 2012. Additionally, Anadarko commenced operations at its 200-million-cubic-feet-per-day Brasada natural gas processing plant, significantly enhancing the company's takeaway capacity in the Eagleford Shale. In Anadarko's liquids-rich East Texas Horizontal program, sales volumes doubled from the second quarter of 2012 to approximately 40,000 BOE per day in the second quarter of 2013.

Mega-Project Summary
Anadarko reached significant milestones at four of its large-scale oil projects during the quarter. The Lucius development in the deepwater Gulf of Mexico remains on track for first oil in the second half of 2014. The company successfully transported its 80,000-barrels-of-oil-per-day (BOPD) Lucius spar from the fabrication yard in Pori, Finland, to Corpus Christi, Texas, with plans to install the spar in Keathley Canyon block 875 during the third quarter of 2013. Construction on the Heidelberg spar, which also has a capacity of 80,000 BOPD, is about 30-percent complete. During the quarter, the company and its partners officially sanctioned the Heidelberg development project and expect to achieve first oil in mid-2016.

In Algeria, the first oil train at El Merk continued to increase production throughout the quarter, and the second oil train is being commissioned. El Merk remains on schedule to ramp toward a net rate of approximately 30,000 barrels per day by the end of 2013.

In Ghana, the government approved the Plan of Development for the TEN (Tweneboa, Enyenra, Ntomme) project during the quarter, which will be the partnership's second major oil development offshore Ghana, with an 80,000-BOPD facility expected to begin production in 2016.

Exploration Summary
Anadarko and its partners drilled five deepwater discoveries during the second quarter -- three in the deepwater Gulf of Mexico and two in Mozambique. In addition to Anadarko's previously announced discoveries at Phobos and Orca, during the second quarter the company also discovered:

  • Raptor (Gulf of Mexico; Desoto Canyon block 535) - Encountered approximately 150 net feet of high-quality oil pay in Jurassic reservoirs. Raptor was drilled to a total depth of 22,135 feet in approximately 8,200 feet of water. Data from these activities are being incorporated into the geologic model to evaluate potential appraisal plans. Anadarko operates Raptor with a 50-percent working interest. BHP Billiton Petroleum (Deepwater) Inc. owns a 50-percent working interest.

  • Yucatan (Gulf of Mexico; Walker Ridge block 95) - Encountered more than 120 net feet of oil pay. Yucatan is more than three miles south and syncline separated from the Anadarko-operated Shenandoah discovery and approximately nine miles west of the Coronado discovery, in which Anadarko also owns an interest. The well was drilled to a total depth of 32,250 feet in water depth of approximately 5,800 feet. The partnership is evaluating the results and planning additional appraisal activity. Anadarko owns a 15-percent working interest in Yucatan. The block is operated by Shell with a 70-percent working interest. The other co-owner in the well is INPEX with a 15-percent working interest.

  • Espadarte (Mozambique; Offshore Area 1) - Encountered approximately 280 net feet of natural gas pay in Oligocene and Miocene sands. The well was drilled to a total depth of approximately 11,640 feet in water depth of 1,536 feet. Anadarko operates Espadarte with a 36.5-percent working interest. Co-owners include Mitsui E&P Mozambique Area 1, Limited (20 percent), BPRL Ventures Mozambique B.V. (10 percent), Videocon Mozambique Rovuma 1 Limited (10 percent) and PTT Exploration & Production Plc (8.5 percent). Empresa Nacional de Hidrocarbonetos, ep, owns a 15-percent interest that is carried through the exploration phase.

Operations Report
For more details on Anadarko's operations and exploration program, please refer to the comprehensive report on second-quarter 2013 activity. The report is available on the Investor Relations page at: www.anadarko.com.

Conference Call Tomorrow at 8 a.m. CDT, 9 a.m. EDT
Anadarko will host a conference call on Tuesday, July 30, 2013, at 8 a.m. Central Daylight Time (9 a.m. Eastern Daylight Time) to discuss second-quarter results, current operations and the company's outlook for the remainder of 2013. The dial-in number is 855.812.0464 in the United States, or 970.300.2271 internationally. The confirmation number is 16786048. 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 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 meet financial and operating guidance, achieve its production targets, successfully manage its capital expenditures, timely complete and commercially operate the projects and drilling prospects identified in this news release, and achieve production and budget expectations on its mega projects. See "Risk Factors" in the company's 2012 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.

 
Anadarko Petroleum Corporation
Certain Items Affecting Comparability
 
       
       
    Quarter Ended June 30, 2013  
    Before     After     Per Share  
millions except per-share amounts   Tax     Tax     (diluted)  
Unrealized gains (losses) on derivatives, net*   $ 641     $ 407     $ 0.81  
Gains (losses) on divestitures, net     13       9       0.02  
Impairments     (10 )     (4 )     (0.01 )
Third-party well and platform decommissioning obligation     (141 )     (89 )     (0.18 )
Reversal of Canadian indemnification liability     56       35       0.07  
Change in uncertain tax positions (FIN 48)     --       37       0.07  
Deepwater Horizon settlement and related costs     (4 )     (3 )     --  
    $ 555     $ 392     $ 0.78  
                         

* For the quarter ended June 30, 2013, before-tax unrealized gains (losses) on derivatives, net includes $373 million related to commodity derivatives, $262 million related to other derivatives, and $6 million related to gathering, processing, and marketing sales. 

       
    Quarter Ended June 30, 2012  
    Before     After     Per Share  
millions except per-share amounts   Tax     Tax     (diluted)  
Unrealized gains (losses) on derivatives, net*   $ (225 )   $ (143 )   $ (0.29 )
Gains (losses) on divestitures, net     (12 )     (8 )     (0.02 )
Impairments, including unproved properties     (978 )     (628 )     (1.26 )
Tronox-related contingent loss reversal     525       334       0.67  
Gulf of Mexico accelerated depreciation, depletion, and amortization     (34 )     (22 )     (0.04 )
Change in uncertain tax positions (FIN 48)     --       (1 )     --  
Deepwater Horizon settlement and related costs     (3 )     (2 )     --  
    $ (727 )   $ (470 )   $ (0.94 )
                         

* For the quarter ended June 30, 2012, before-tax unrealized gains (losses) on derivatives, net includes $157 million related to commodity derivatives, $(374) million related to other derivatives, and $(8) 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     Six Months Ended  
    June 30,     June 30,  
millions   2013     2012     2013     2012  
Net cash provided by operating activities   $ 2,502     $ 1,999     $ 5,005     $ 3,890  
Add back                                
  Deepwater Horizon settlement and related costs     3       9       6       (13 )
  Algeria exceptional profits tax settlement     (248 )     (113 )     (698 )     (113 )
  Change in accounts receivable     (217 )     (378 )     (257 )     (351 )
  Change in accounts payable and accrued expenses     (290 )     228       (132 )     486  
  Change in other items--net     158       84       40       (148 )
Discretionary cash flow from operations   $ 1,908     $ 1,829     $ 3,964     $ 3,751  
                                 
                                 
 
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
 
         
    Quarter Ended   Six Months Ended
    June 30,   June 30,
millions   2013   2012   2013   2012
Discretionary cash flow from operations   $ 1,908   $ 1,829   $ 3,964   $ 3,751
Less capital expenditures*     1,866     1,809     3,613     3,599
Free cash flow   $ 42   $ 20   $ 351   $ 152
Collection of Algeria exceptional profits tax receivable     248     113     698     113
Adjusted free cash flow   $ 290   $ 133   $ 1,049   $ 265
                         

* Includes Western Gas Partners, LP (WES) capital expenditures of $138 million for the quarter ended June 30, 2013, $123 million for the quarter ended June 30, 2012, $437 million for the six months ended June 30, 2013, and $221 million for the six months ended and June 30, 2012. 

           
           
    Quarter Ended   Quarter Ended  
    June 30, 2013   June 30, 2012  
    After   Per Share   After     Per Share  
millions except per-share amounts   Tax   (diluted)   Tax     (diluted)  
Net income (loss) attributable to common stockholders   $ 929   $ 1.83   $ (89 )   $ (0.18 )
Certain items affecting comparability     392     0.78     (470 )     (0.94 )
Adjusted net income (loss)   $ 537   $ 1.05   $ 381     $ 0.76  
                             

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. 

       
millions   June 30, 2013  
Total debt   $ 13,538  
Less cash and cash equivalents     4,581  
Net debt   $ 8,957  
         
Net debt   $ 8,957  
Stockholders' equity     22,189  
Adjusted capitalization   $ 31,146  
         
Net debt to adjusted capitalization ratio     29 %
         
         
 
Anadarko Petroleum Corporation
 (Unaudited)
 
             
    Quarter Ended     Six Months Ended  
Summary Financial Information   June 30,     June 30,  
millions except per-share amounts   2013     2012     2013     2012  
Consolidated Statements of Income                                
Revenues and Other                                
Natural-gas sales   $ 935     $ 496     $ 1,742     $ 1,069  
Oil and condensate sales     1,995       2,222       4,372       4,466  
Natural-gas liquids sales     261       282       564       624  
Gathering, processing, and marketing sales     249       200       480       453  
Gains (losses) on divestitures and other, net     57       22       232       57  
Total     3,497       3,222       7,390       6,669  
Costs and Expenses                                
Oil and gas operating     245       249       492       491  
Oil and gas transportation and other     253       223       508       463  
Exploration     178       1,121       442       1,365  
Gathering, processing, and marketing     222       178       421       367  
General and administrative     260       262       532       531  
Depreciation, depletion, and amortization     940       1,027       1,962       1,957  
Other taxes     245       326       525       703  
Impairments     10       112       39       162  
Algeria exceptional profits tax settlement     --       --       33       (1,804 )
Deepwater Horizon settlement and related costs     4       3       7       11  
Total     2,357       3,501       4,961       4,246  
Operating Income (Loss)     1,140       (279 )     2,429       2,423  
Other (Income) Expense                                
Interest expense     172       190       336       376  
(Gains) losses on derivatives, net     (656 )     (44 )     (465 )     (328 )
Other (income) expense, net     98       (519 )     92       (254 )
Total     (386 )     (373 )     (37 )     (206 )
Income (Loss) Before Income Taxes     1,526       94       2,466       2,629  
Income Tax Expense (Benefit)     567       164       1,023       516  
Net Income (Loss)     959       (70 )     1,443       2,113  
Net Income Attributable to Noncontrolling Interests     30       19       54       46  
Net Income (Loss) Attributable to Common Stockholders   $ 929     $ (89 )   $ 1,389     $ 2,067  
Per Common Share                                
Net income (loss) attributable to common stockholders--basic   $ 1.84     $ (0.18 )   $ 2.75     $ 4.11  
Net income (loss) attributable to common stockholders--diluted   $ 1.83     $ (0.18 )   $ 2.74     $ 4.10  
Average Number of Common Shares Outstanding--Basic     502       500       501       499  
Average Number of Common Shares Outstanding--Diluted     504       500       504       501  
                                 
Exploration Expense                                
Dry hole expense   $ 66     $ 115     $ 224     $ 204  
Impairments of unproved properties     20       923       39       983  
Geological and geophysical expense     23       14       60       49  
Exploration overhead and other     69       69       119       129  
Total   $ 178     $ 1,121     $ 442     $ 1,365  
                                 
                                 
 
Anadarko Petroleum Corporation
 (Unaudited)
 
             
    Quarter Ended     Six Months Ended  
Summary Financial Information   June 30,     June 30,  
millions   2013     2012     2013     2012  
Cash Flows from Operating Activities                        
Net income (loss)   $ 959     $ (70 )   $ 1,443     $ 2,113  
Depreciation, depletion, and amortization     940       1,027       1,962       1,957  
Deferred income taxes     401       (67 )     563       143  
Dry hole expense and impairments of unproved properties     86       1,038       263       1,187  
Impairments     10       112       39       162  
(Gains) losses on divestitures, net     (13 )     12       (157 )     29  
Unrealized (gains) losses on derivatives, net     (641 )     225       (395 )     83  
Deepwater Horizon settlement and related costs     4       3       7       11  
Algeria exceptional profits tax settlement     --       --       33       (1,804 )
Tronox-related contingent loss     --       (525 )     --       (250 )
Certain other nonoperating items     85       --       85       --  
Other     77       74       121       120  
Discretionary Cash Flow from Operations     1,908       1,829       3,964       3,751  
Deepwater Horizon settlement and related costs     (3 )     (9 )     (6 )     13  
Algeria exceptional profits tax settlement     248       113       698       113  
(Increase) decrease in accounts receivable     217       378       257       351  
Increase (decrease) in accounts payable and accrued expenses     290       (228 )     132       (486 )
Other items--net     (158 )     (84 )     (40 )     148  
Net Cash Provided by Operating Activities   $ 2,502     $ 1,999     $ 5,005     $ 3,890  
                                 
Capital Expenditures   $ 1,866     $ 1,809     $ 3,613     $ 3,599  
                                 
                                 
    June 30,     December 31,  
millions   2013     2012  
Condensed Balance Sheets            
Cash and cash equivalents   $ 4,581     $ 2,471  
Accounts receivable, net of allowance     2,556       2,747  
Algeria exceptional profits tax settlement     32       730  
Other current assets     730       847  
Net properties and equipment     39,831       38,398  
Other assets     1,893       1,716  
Goodwill and other intangible assets     5,677       5,680  
Total Assets   $ 55,300     $ 52,589  
Current asset retirement obligations   $ 285     $ 298  
Other current liabilities     4,728       3,696  
Long-term debt     13,538       13,269  
Deferred income taxes     9,378       8,759  
Other long-term liabilities     3,662       4,685  
Stockholders' equity     22,189       20,629  
Noncontrolling interests     1,520       1,253  
Total Liabilities and Equity   $ 55,300     $ 52,589  
Capitalization                
Total debt   $ 13,538     $ 13,269  
Stockholders' equity     22,189       20,629  
Total   $ 35,727     $ 33,898  
Capitalization Ratios                
Total debt     38 %     39 %
Stockholders' equity     62 %     61 %
                 
                 
 
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 June 30, 2013                                          
United States   2,647   155   83   241   14   7   $ 3.88   $ 94.99   $ 34.33
Algeria   --   43   --   --   4   --     --     102.18     --
Other International   --   28   --   --   3   --     --     101.84     --
Total   2,647   226   83   241   21   7   $ 3.88   $ 97.21   $ 34.33
                                           
Quarter Ended June 30, 2012                                          
United States   2,544   156   77   230   15   7   $ 2.15   $ 98.20   $ 40.41
Algeria   --   59   --   --   5   --     --     103.61     --
Other International   --   26   --   --   3   --     --     113.95     --
Total   2,544   241   77   230   23   7   $ 2.15   $ 101.22   $ 40.41
                                           
Six Months Ended June 30, 2013                                          
United States   2,668   157   85   483   28   15   $ 3.61   $ 96.17   $ 36.29
Algeria   --   48   --   --   9   --     --     108.06     --
Other International   --   36   --   --   7   --     --     107.66     --
Total   2,668   241   85   483   44   15   $ 3.61   $ 100.26   $ 36.29
                                           
Six Months Ended June 30, 2012                                          
United States   2,480   148   78   450   27   14   $ 2.37   $ 101.76   $ 43.82
Algeria   --   54   --   --   10   --     --     110.88     --
Other International   --   30   --   --   6   --     --     117.72     --
Total   2,480   232   78   450   43   14   $ 2.37   $ 105.94   $ 43.82
                                           
         
         
    Average Daily Volumes
MBOE/d
  Sales Volumes
MMBOE
         
Quarter Ended June 30, 2013   750   69
Quarter Ended June 30, 2012   742   68
         
Six Months Ended June 30, 2013   771   140
Six Months Ended June 30, 2012   723   132
         
         
 
Sales Revenue and Commodity Derivatives
        Commodity Derivatives Gain (Loss)
    Natural Gas   Crude Oil &       Natural Gas     Crude Oil & Condensate   NGLs
millions   MMcf/d   Condensate   NGLs   Realized     Unrealized     Realized     Unrealized   Realized   Unrealized
Quarter Ended June 30, 2013                                                            
United States   $ 935   $ 1,336   $ 261   $ (16 )   $ 258     $ 1     $ 110   $ 3   $ 5
Algeria     --     400     --     --       --       33       --     --     --
Other International     --     259     --     --       --       --       --     --     --
Total   $ 935   $ 1,995   $ 261   $ (16 )   $ 258     $ 34     $ 110   $ 3   $ 5
                                                             
Quarter Ended June 30, 2012                                                            
United States   $ 496   $ 1,396   $ 282   $ 224     $ (288 )   $ 20     $ 414   $ 3   $ 31
Algeria     --     558     --     --       --       16       --     --     --
Other International     --     268     --     --       --       --       --     --     --
Total   $ 496   $ 2,222   $ 282   $ 224     $ (288 )   $ 36     $ 414   $ 3   $ 31
                                                             
Six Months Ended June 30, 2013                                                            
United States   $ 1,742   $ 2,729   $ 564   $ 51     $ (11 )   $ 2     $ 50   $ 5   $ --
Algeria     --     937     --     --       --       14       --     --     --
Other International     --     706     --     --       --       --       --     --     --
Total   $ 1,742   $ 4,372   $ 564   $ 51     $ (11 )   $ 16     $ 50   $ 5   $ --
                                                             
Six Months Ended June 30, 2012                                                            
United States   $ 1,069   $ 2,735   $ 624   $ 394     $ (202 )   $ 15     $ 241   $ 3   $ 29
Algeria     --     1,096     --     --       --       (12 )     --     --     --
Other International     --     635     --     --       --       --       --     --     --
Total   $ 1,069   $ 4,466   $ 624   $ 394     $ (202 )   $ 3     $ 241   $ 3   $ 29
                                                             
                                                             
 
Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of July 29, 2013
                 
         
    3rd Qtr   Total Year
    Guidance   Guidance
                 
    Units   Units
                 
Total Sales (MMBOE)   69 - 72   281 - 287
                 
Crude Oil (MBbl/d)   252 - 256   256 - 260
                 
  United States   160 - 164   162 - 164
  Algeria   60 - 62   59 - 61
  Other International   30 - 32   34 - 36
                 
Natural Gas (MMcf/d)                
                 
  United States   2,550 - 2,600   2,590 - 2,615
                 
Natural Gas Liquids (MBbl/d)                
                 
  United States   82 - 88   84 - 90
                 
                 
    $ / Unit   $ / Unit
Price Differentials vs NYMEX (w/o hedges)                
                 
Crude Oil ($/Bbl)   (1.00) - 2.00   2.00 - 5.00
                 
  United States   (2.00) - -   (1.00) - 1.00
  Algeria   2.00 - 5.00   8.00 - 10.00
  Other International   1.00 - 4.00   7.00 - 9.00
                 
Natural Gas ($/Mcf)                
                 
  United States   (0.15) - (0.25)   (0.10) - (0.20)
                   
                   
 
Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of July 29, 2013
                 
    3rd Qtr   Total Year
    Guidance   Guidance *
                 
    $ MM   $ MM
Other Revenues                
  Marketing and Gathering Margin   30 - 50   135 - 165
  Minerals and Other   30 - 40   150 - 170
                 
                 
    $ / BOE   $ / BOE
Costs and Expenses                
  Oil & Gas Direct Operating   3.95 - 4.20   3.80 - 3.95
  Oil & Gas Transportation/Other   3.65 - 3.85   3.55 - 3.75
  Depreciation, Depletion and Amortization   13.75 - 14.00   13.90 - 14.15
  Production Taxes (% of Product Revenue)   8.0% - 9.0%   8.0% - 9.0%
                 
    $ MM   $ MM
                 
  General and Administrative   275 - 295   1,100 - 1,200
  Exploration Expense                
    Non-Cash   95 - 115   700 - 800
    Cash   160 - 180   475 - 525
  Interest Expense (net)   175 - 180   685 - 695
  Other (Income)/Expense   - - 20   75 - 95
                 
Tax Rate                
  Algeria (All current)   45% - 50%   45% - 50%
  Rest of Company (20% Current for 3Q and FY)   40% - 50%   45% - 55%
                 
                 
Avg. Shares Outstanding (MM)                
  Basic   502 - 503   502 - 503
  Diluted   504 - 505   504 - 505
                 
                 
Capital Investment (Excluding Western Gas Partners, LP)   $ MM   $ MM
                 
APC Capital Expenditures   1,800 - 2,000   7,200 - 7,600
                 
* Excludes items affecting comparability
 
 
 
Anadarko Petroleum Corporation
Commodity Hedge Positions
As of July 29, 2013
                 
                 
        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            
  2013 (Jul-Dec)                      
    WTI   14   $ 104.36            
                       
                       
                       
        Weighted Average Price per MMBtu
 
 
 
 
 Volume (thousand MMBtu/d)  
 
Floor Sold  
 
Floor Purchased  
 
Ceiling Sold
Natural Gas                      
  Two-Way Collars                      
  2013 (Apr-Oct)   600     n/a   $ 3.18   $ 4.00
                       
  Three-Way Collars                      
  2014   600   $ 2.75   $ 3.75   $ 5.01
                       
  Fixed Price - Financial                      
  2013   1,185   $ 4.00            
  2014   600   $ 4.26            
                         
                         
                     
                     
Interest Rate Derivatives
As of July 29, 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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