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Anadarko Announces Second-Quarter Results

HOUSTON, TX--(Marketwire - 07/25/11) - Anadarko Petroleum Corporation (NYSE:APC - News) today announced second-quarter 2011 net income attributable to common stockholders of $544 million, or $1.08 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 $28 million, or $0.06 per share (diluted) on an after-tax basis.(1) Cash flow from operating activities in the second quarter of 2011 was $1.837 billion, and discretionary cash flow totaled $1.838 billion.(2)Second-Quarter 2011 Highlights

 
-- Achieved record liquids sales volumes of 297,000 barrels per day
-- Finalized Lucius unitization agreement
-- Successfully tested three wells at the Caesar/Tonga mega project
-- Closed the acquisition of the Wattenberg Processing Plant

"We achieved record liquids sales volumes during the quarter, enhancing margins and generating excellent cash flows," said Anadarko Chairman and CEO Jim Hackett. "Nearly all of the year-over-year volume growth was attributable to a 34,000 barrel-per-day increase in liquids volumes. These results contributed to strong discretionary cash flows of more than $1.8 billion -- approximately $117 million above our capital expenditures, which included a one-time cash investment of $518 million associated with the acquisition of the Wattenberg plant."During the second quarter of 2011, sales volumes totaled 62 million barrels of oil equivalent (BOE), or 685,000 BOE per day, averaging approximately 2.3 billion cubic feet of natural gas per day, 225,000 barrels of oil per day (BOPD), and 72,000 barrels of natural gas liquids per day.Operations SummaryThe company achieved sales-volumes records during the second quarter of 2011 in Wattenberg, Greater Natural Buttes, Wamsutter (operated), Bone Spring and the Marcellus Shale. In the Eagleford Shale, Anadarko closed its $1.6 billion joint-venture agreement with a subsidiary of Korea National Oil Corporation and exited the quarter with record gross sales volumes of approximately 45,000 BOE per day in the play, an increase of approximately 25 percent from the end of the prior quarter. In Ghana, current gross production from Jubilee is approximately 80,000 BOPD, and production continues to ramp up with further well completions and gas injection.In the deepwater Gulf of Mexico, Anadarko continued to advance two major projects during the second quarter. The company finalized the Lucius unitization agreement and recently announced plans to develop the field with a truss spar designed for a capacity of 80,000 BOPD and 450 million cubic feet of natural gas per day. Sanctioning is expected to occur later this year, with first production expected in 2014. At the Caesar/Tonga project, Anadarko completed flow and reservoir tests on three wells. Each of the wells tested at flow rates of approximately 15,000 BOPD with high-quality (27º API gravity) oil.Exploration SummaryAnadarko has mobilized the Discoverer Spirit drillship to begin the company's 2011 exploration program in West Africa, following the drillship's completion of the final test at Caesar/Tonga. This program includes the Montserrado exploration well in Liberia, as well as the Jupiter exploration well and Mercury appraisal well in Sierra Leone. In other deepwater exploration areas, Anadarko continued to delineate its large natural gas discoveries in Mozambique, and to advance appraisal activities in the Tweneboa/Enyenra area offshore Ghana. The company also recently began appraisal drilling in the Campos Basin offshore Brazil.As previously announced by Diamond Offshore, Anadarko signed long-term contracts in the second quarter for two new-build drillships. The Ocean BlackHawk is expected to be delivered in late 2013, and the Ocean BlackHornet is expected to be delivered in early 2014. These new state-of-the-art rigs are designed to work in up to 12,000 feet of water, and each has been contracted for a term of five years. These new rigs will feature enhanced drilling capabilities and safety equipment designed to meet the highest specifications in the industry."We expect the next six to nine months to be the most active period of deepwater exploration and appraisal drilling in our company's history," said Hackett. "Our exploration program is designed to deliver upon our goal of discovering more than 500 million BOE of net risked resources this year. We are continuing to advance our deep inventory of high-impact prospects, and the new rig agreements reinforce our long-term commitment to the safety and success of our global exploration program."Financial SummaryAnadarko reported total product revenues of approximately $3.5 billion during the second quarter of 2011, a 46-percent increase relative to the second quarter of 2010. The company ended the second quarter of 2011 with approximately $3.4 billion of cash on hand in addition to its five-year, $5 billion undrawn credit facility. As provided in the supplemental information to this release, Anadarko protected an additional 450,000 MMBtu per day of 2013 natural gas production, with three-way collars that have a middle floor of $5.00 per MMBtu and a ceiling of $6.57 per MMBtu.Operations ReportFor more details on Anadarko's operations, please refer to the comprehensive report on second-quarter 2011 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. EDTAnadarko will host a conference call on Tuesday, July 26, at 9 a.m. Central Daylight Time (10 a.m. Eastern Daylight Time) to discuss second-quarter results, current operations and the company's outlook for the remainder of 2011. The dial-in number is 888.713.4205 in the United States or 617.213.4862 internationally. The confirmation number is 67183355. For complete instructions on how to participate in the conference call, or to listen to the live audio webcast and slide presentation, please visit www.anadarko.com. A replay of the call will also be available on the Web site for approximately 30 days following the conference call.Financial DataEight pages of summary financial data follow, including current hedge positions, financial guidance and supplemental 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 2010, the company had approximately 2.42 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. For more information about Anadarko, please visit www.anadarko.com.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 commercially operate the drilling prospects identified in this news release. See "Risk Factors" in the company's 2010 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 "net risked 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, 2010, 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 June 30, 2011
-------------------------------
Before After Per Share
millions except per-share amounts Tax Tax (diluted)
--------- --------- ---------
Unrealized gains (losses) on derivatives,
net* $ 178 $ 114 $ 0.22
Gains (losses) on divestitures, net (94) (79) (0.16)
Impairments (102) (66) (0.13)
Change in uncertain tax positions (FIN48) -- 3 0.01
--------- --------- ---------
$ (18) $ (28) $ (0.06)
========= ========= =========



* For the quarter ended June 30, 2011, before-tax unrealized gains (losses)
on derivatives, net includes $316 million related to commodity
derivatives, $(142) million related to other derivatives, and $4 million
related to gathering, processing, and marketing sales.



Quarter Ended June 30, 2010
-------------------------------
Before After Per Share
millions except per-share amounts Tax Tax (diluted)
--------- --------- ---------
Unrealized gains (losses) on derivatives,
net* $ (305) $ (195) $ (0.39)
Gains (losses) on divestitures, net 2 1 --
Impairments (115) (73) (0.15)
Change in uncertain tax positions (FIN48) -- (17) (0.03)
--------- --------- ---------
$ (418) $ (284) $ (0.57)
========= ========= =========



* For the quarter ended June 30, 2010, before-tax unrealized gains (losses)
on derivatives, net includes $103 million related to commodity
derivatives, $(406) million related to other derivatives, and $(2)
million related to gathering, processing, and marketing sales.



Reconciliation of GAAP to Non-GAAP MeasuresBelow are reconciliations of cash provided by operating activities (GAAP) to discretionary cash flow from operations and free cash flow (non-GAAP), and 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 and free cash flow to demonstrate the Company's ability to internally fund capital expenditures and to service or incur additional debt. It is useful in comparisons of oil and gas exploration and production companies because it excludes fluctuations in assets and liabilities. 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 2011 2010 2011 2010
------- ------- ------- -------
Net cash provided by operating
activities $ 1,837 $ 1,566 $ 3,126 $ 2,883
Add back:
Change in accounts receivable 284 (32) 535 (5)
Change in accounts payable and
accrued expenses (418) (52) (241) 229
Change in other items-net 135 (204) 92 (299)
------- ------- ------- -------
Discretionary cash flow from operations $ 1,838 $ 1,278 $ 3,512 $ 2,808
======= ======= ======= =======





Anadarko Petroleum Corporation

Reconciliation of GAAP to Non-GAAP Measures





Quarter Ended Six Months Ended
June 30, June 30,
------------------ ------------------
millions 2011 2010 2011 2010
-------- -------- -------- --------
Discretionary cash flow from
operations $ 1,838 $ 1,278 $ 3,512 $ 2,808
Less: Capital expenditures* 1,721 1,367 3,308 2,606
-------- -------- -------- --------
Free cash flow $ 117 $ (89) $ 204 $ 202
======== ======== ======== ========


* Includes Western Gas Partners, LP (WES) capital expenditures of $21
million and $47 million for the three months ended June 30, 2011, and
2010, respectively, and $338 million and $51 million for the six months
ended June 30, 2011, and 2010, respectively.



Quarter Ended Quarter Ended
June 30, 2011 June 30, 2010
------------------ ------------------
After Per Share After Per Share
millions except per-share amounts Tax (diluted) Tax (diluted)
-------- -------- -------- --------
Net income (loss) attributable to
common stockholders $ 544 $ 1.08 $ (40) $ (0.08)
Less: Certain items affecting
comparability (28) (0.06) (284) (0.57)
-------- -------- -------- --------
Adjusted net income (loss) $ 572 $ 1.14 $ 244 $ 0.49
======== ======== ======== ========



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, 2011
-------------
Total debt $ 13,226
Less: Cash and cash equivalents 3,406
-------------
Net debt $ 9,820
=============

Net debt $ 9,820
Stockholders' equity 21,471
-------------
Adjusted capitalization $ 31,291
=============

-------------
Net debt to adjusted capitalization
ratio 31%
=============





Anadarko Petroleum Corporation
(Unaudited)



Quarter Ended Six Months Ended
Summary Financial Information June 30, June 30,
------------------ ------------------
millions except per-share amounts 2011 2010 2011 2010
-------- -------- -------- --------
Consolidated Statements of Income
-------- -------- -------- --------
Revenues and Other
-------- -------- -------- --------
Natural-gas sales $ 870 $ 802 $ 1,724 $ 1,883
Oil and condensate sales 2,236 1,338 4,043 2,840
Natural-gas liquids sales 370 235 703 509
Gathering, processing, and
marketing sales 258 188 488 461
Gains (losses) on divestitures and
other, net (58) 41 (29) 50
-------- -------- -------- --------
Total 3,676 2,604 6,929 5,743
======== ======== ======== ========
Costs and Expenses
-------- -------- -------- --------
Oil and gas operating 236 196 468 383
Oil and gas transportation and
other* 207 196 416 387
Exploration 236 198 415 353
Gathering, processing, and
marketing 205 149 376 332
General and administrative 291 203 526 413
Depreciation, depletion, and
amortization 985 902 1,970 1,883
Other taxes 413 268 757 569
Impairments 102 115 104 127
-------- -------- -------- --------
Total 2,675 2,227 5,032 4,447
======== ======== ======== ========
Operating Income (Loss) 1,001 377 1,897 1,296
======== ======== ======== ========
Other (Income) Expense
-------- -------- -------- --------
Interest expense 216 200 436 424
(Gains) losses on commodity
derivatives, net (343) (264) (87) (852)
(Gains) losses on other
derivatives, net 144 406 85 435
Other (income) expense, net (18) 14 (42) 23
-------- -------- -------- --------
Total (1) 356 392 30
======== ======== ======== ========
Income (Loss) Before Income Taxes 1,002 21 1,505 1,266
======== ======== ======== ========
Income Tax Expense (Benefit) 440 49 706 566
======== ======== ======== ========
Net Income (Loss) $ 562 $ (28) $ 799 $ 700
======== ======== ======== ========
Net Income Attributable to
Noncontrolling Interests 18 12 39 24
======== ======== ======== ========
Net Income (Loss) Attributable to
Common Stockholders $ 544 $ (40) $ 760 $ 676
======== ======== ======== ========
Per Common Share:
======== ======== ======== ========
Net income (loss) attributable to
common stockholders-basic $ 1.09 $ (0.08) $ 1.52 $ 1.36
Net income (loss) attributable to
common stockholders-diluted $ 1.08 $ (0.08) $ 1.51 $ 1.35
======== ======== ======== ========
Average Number of Common Shares
Outstanding-Basic 498 495 497 494
======== ======== ======== ========
Average Number of Common Shares
Outstanding-Diluted 500 495 499 496
======== ======== ======== ========

======== ======== ======== ========
Exploration Expense
-------- -------- -------- --------
Dry hole expense $ 42 $ 17 $ 58 $ 42
Impairments of unproved properties 95 114 169 202
Geological and geophysical expense 52 25 100 28
Exploration overhead and other 47 42 88 81
-------- -------- -------- --------
Total $ 236 $ 198 $ 415 $ 353
======== ======== ======== ========



* For the three and six months ended June 30, 2010, oil and gas
transportation and other expenses includes $12 million related to force
majeure invoked on contracted deepwater drilling rigs in the Gulf of
Mexico.





Anadarko Petroleum Corporation
(Unaudited)



Quarter Ended Six Months Ended
Summary Financial Information June 30, June 30,
------------------ ------------------
millions 2011 2010 2011 2010
-------- -------- -------- --------
Cash Flows from Operating
Activities
-------- -------- -------- --------
Net income (loss) $ 562 $ (28) $ 799 $ 700
Depreciation, depletion, and
amortization 985 902 1,970 1,883
Deferred income taxes 185 (251) 258 (97)
Dry hole expense and impairments of
unproved properties 137 131 227 244
Impairments 102 115 104 127
(Gains) losses on divestitures, net 18 (2) 18 (15)
Unrealized (gains) losses on
derivatives, net (178) 305 75 (240)
Other 27 106 61 206
-------- -------- -------- --------
Discretionary Cash Flow from
Operations 1,838 1,278 3,512 2,808
(Increase) decrease in accounts
receivable (284) 32 (535) 5
Increase (decrease) in accounts
payable and accrued expenses 418 52 241 (229)
Other items-net (135) 204 (92) 299
-------- -------- -------- --------
Net Cash Provided by Operating
Activities $ 1,837 $ 1,566 $ 3,126 $ 2,883
======== ======== ======== ========

======== ======== ======== ========
Capital Expenditures $ 1,721 $ 1,367 $ 3,308 $ 2,606
-------- -------- -------- --------





June 30, December
millions 2011 31, 2010
-------- --------
Condensed Balance Sheets
-------- --------
Cash and cash equivalents $ 3,406 $ 3,680
Other current assets 3,464 2,995
Net properties and equipment 38,343 37,957
Other assets 1,568 1,616
Goodwill and other intangible assets 5,836 5,311
-------- --------
Total Assets $ 52,617 $ 51,559
-------- --------
Current debt $ 425 $ 291
Other current liabilities 3,702 3,823
Long-term debt 12,801 12,722
Other long-term liabilities 13,341 13,284
Stockholders' equity 21,471 20,684
Noncontrolling interests 877 755
-------- --------
Total Liabilities and Equity $ 52,617 $ 51,559
======== ========
Capitalization
-------- --------
Total debt $ 13,226 $ 13,013
Stockholders' equity 21,471 20,684
-------- --------
Total $ 34,697 $ 33,697
======== ========
Capitalization Ratios
-------- --------
Total debt 38% 39%
Stockholders' equity 62% 61%
======== ========




Anadarko Petroleum Corporation
(Unaudited)


Sales Volumes and Prices

Average Daily Volumes Sales Volumes
-------------------------- --------------------------

Crude Crude
Natural Oil & Natural Oil &
Gas Condensate NGLs Gas Condensate NGLs
MMcf/d MBbls/d MBbls/d Bcf MMBbls MMBbls
-------- -------- -------- -------- -------- --------
Quarter Ended June
30, 2011
United States 2,326 134 72 212 12 6
Algeria 58 5
Other International 33 3
-------- -------- -------- -------- -------- --------
Total 2,326 225 72 212 20 6
-------- -------- -------- -------- -------- --------

Quarter Ended June
30, 2010
United States 2,324 130 66 212 12 6
Algeria 53 5
Other International 15 1
-------- -------- -------- -------- -------- --------
Total 2,324 198 66 212 18 6
-------- -------- -------- -------- -------- --------

Six Months Ended June
30, 2011
United States 2,369 133 74 429 24 13
Algeria 57 10
Other International 29 5
-------- -------- -------- -------- -------- --------
Total 2,369 219 74 429 39 13
-------- -------- -------- -------- -------- --------

Six Months Ended June
30, 2010
United States 2,358 133 66 427 24 12
Algeria 61 11
Other International 15 3
-------- -------- -------- -------- -------- --------
Total 2,358 209 66 427 38 12
-------- -------- -------- -------- -------- --------



Average Sales Price
--------------------------
Crude
Oil &
Natural Condens-
Gas ate NGLs
Per Mcf Per Bbl Per Bbl
-------- -------- --------
Quarter Ended June
30, 2011
United States $ 4.11 $ 104.68 $ 56.21
Algeria 115.93
Other International 114.29
-------- -------- --------
Total $ 4.11 $ 108.99 $ 56.21
-------- -------- --------

Quarter Ended June
30, 2010
United States $ 3.79 $ 73.89 $ 39.05
Algeria 75.51
Other International 76.18
-------- -------- --------
Total $ 3.79 $ 74.49 $ 39.05
-------- -------- --------

Six Months Ended June
30, 2011
United States $ 4.02 $ 98.23 $ 52.47
Algeria 107.44
Other International 108.81
-------- -------- --------
Total $ 4.02 $ 102.04 $ 52.47
-------- -------- --------

Six Months Ended June
30, 2010
United States $ 4.41 $ 74.45 $ 42.80
Algeria 75.81
Other International 74.68
-------- -------- --------
Total $ 4.41 $ 74.86 $ 42.80
-------- -------- --------




Average Daily Sales Volumes
Volumes MBOE/d MMBOE
-------------- --------------

Quarter Ended June 30, 2011 685 62
Quarter Ended June 30, 2010 651 59

Six Months Ended June 30, 2011 688 124
Six Months Ended June 30, 2010 668 121






Sales Revenue and Commodity Derivatives


Commodity Derivatives
Sales Gain (Loss)
------------------------ --------------------
Natural Gas
Crude Oil --------------------
Natural &
millions Gas Condensate NGLs Realized Unrealized
------- ---------- ----- -------- -----------
Quarter Ended June 30, 2011
United States $ 870 $ 1,279 $ 370 $ 71 $ (14)
Algeria 613
Other International 344
------- ---------- ----- -------- -----------
Total $ 870 $ 2,236 $ 370 $ 71 $ (14)
------- ---------- ----- -------- -----------

Quarter Ended June 30, 2010
United States $ 802 $ 872 $ 235 $ 163 $ (166)
Algeria 364
Other International 102
------- ---------- ----- -------- -----------
Total $ 802 $ 1,338 $ 235 $ 163 $ (166)
------- ---------- ----- -------- -----------

Six Months Ended June 30,
2011
United States $ 1,724 $ 2,359 $ 703 $ 143 $ (61)
Algeria 1,104
Other International 580
------- ---------- ----- -------- -----------
Total $ 1,724 $ 4,043 $ 703 $ 143 $ (61)
------- ---------- ----- -------- -----------

Six Months Ended June 30,
2010
United States $ 1,883 $ 1,807 $ 509 $ 182 $ 400
Algeria 834
Other International 199
------- ---------- ----- -------- -----------
Total $ 1,883 $ 2,840 $ 509 $ 182 $ 400
------- ---------- ----- -------- -----------



Commodity Derivatives Gain (Loss)
---------------------------------------------
Crude Oil & Condensate NGLs
----------------------- ---------------------
millions Realized Unrealized Realized Unrealized
--------- ------------ ---------- ----------
Quarter Ended June 30, 2011
United States $ (44) $ 330 $ -- $ --
Algeria -- --
Other International
--------- ------------ ---------- ----------
Total $ (44) $ 330 $ -- $ --
--------- ------------ ---------- ----------

Quarter Ended June 30, 2010
United States $ (4) $ 261 $ -- $ --
Algeria 2 8
Other International
--------- ------------ ---------- ----------
Total $ (2) $ 269 $ -- $ --
--------- ------------ ---------- ----------

Six Months Ended June 30,
2011
United States $ (56) $ 55 $ -- $ --
Algeria (3) 9
Other International
--------- ------------ ---------- ----------
Total $ (59) $ 64 $ -- $ --
--------- ------------ ---------- ----------

Six Months Ended June 30,
2010
United States $ (5) $ 256 $ -- $ --
Algeria 5 14
Other International
--------- ------------ ---------- ----------
Total $ -- $ 270 $ -- $ --
--------- ------------ ---------- ----------






Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of July 25, 2011


3rd Qtr Total Year
Guidance Guidance
--------------------- ---------------------

Units Units
--------------------- ---------------------

Total Sales (MMBOE) 58 - 61 244 - 248

Crude Oil (MBbl/d): 197 - 210 215 - 219

United States 119 - 125 127 - 129
Algeria 53 - 56 55 - 56
Other International 25 - 29 33 - 35

Natural Gas (MMcf/d):

United States 2,225 - 2,275 2,300 - 2,350

Natural Gas Liquids (MBbl/d):

United States 68 - 72 70 - 72



$ / Unit $ / Unit
--------------------- ---------------------
Price Differentials vs NYMEX
(w/o hedges)

Crude Oil ($/Bbl): 2.00 - 3.00 2.50 - 3.50

United States 0.00 - (2.00) (1.00) - (2.00)
Algeria 10.00 - 12.00 10.00 - 11.00
Other International 8.00 - 10.00 9.00 - 10.00

Natural Gas ($/Mcf):

United States (0.15) - (0.25) (0.15) - (0.25)





Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of July 25, 2011



3rd Qtr Total Year
Guidance Guidance
----------------- -----------------
$ MM $ MM
----------------- -----------------
Other Revenues:
Marketing and Gathering Margin 45 - 65 220 - 260
Minerals and Other 25 - 35 60 - 80

----------------- -----------------
Costs and Expenses:
$ / Boe $ / Boe
----------------- -----------------
Oil & Gas Direct Operating 3.90 - 4.20 3.80 - 4.20
Oil & Gas Transportation/Other 3.30 - 3.55 3.30 - 3.55
Depreciation, Depletion and
Amortization 15.50 - 15.80 15.60 - 15.80
Production Taxes (% of Revenue) 11.5% - 12.5% 11.0% - 12.0%

$ MM $ MM
----------------- -----------------
General and Administrative 260 - 280 1,050 - 1,100
Exploration Expense
Non-Cash 160 - 210 600 - 700
Cash 95 - 120 350 - 400
Interest Expense (net) 200 - 220 840 - 850
Other (Income) Expense - - 20 20 - 40


Tax Rate

Algeria (All Current) 55% - 65% 55% - 65%
Rest of Company (All Current for 3Q
and 35% for FY) 35% - 45% 35% - 45%

----------------- -----------------

Avg. Shares Outstanding (MM)

Basic 497 - 499 497 - 499
Diluted 499 - 501 499 - 501

$ MM $ MM
----------------- -----------------
Capital Investment *

Capital Expenditures 1,400 - 1,600 6,060 - 6,450
Capitalized Interest 35 - 45 140 - 150

* Excludes Western Gas Partners , LP (WES)




Anadarko Petroleum Corporation
Commodity Hedge Positions (Excluding Natural Gas Basis)
As of July 25, 2011




Weighted Average Price per MMBtu
Volume --------------------------------------
(thousand Floor
MMBtu/d) Floor Sold Purchased Ceiling Sold
------------ ------------ ------------ ------------
Natural Gas
Three-Way Collars
2011 480 $ 5.00 $ 6.50 $ 8.29
2012 500 $ 5.00 $ 6.50 $ 9.03
2013 450 $ 4.00 $ 5.00 $ 6.57

Fixed Price -
Financial
2011 90 $ 6.17




Weighted Average Price per barrel
--------------------------------------
Volume Floor
(MBbls/d) Floor Sold Purchased Ceiling Sold
------------ ------------ ------------ ------------
Crude Oil
Three-Way Collars
2011 126 $ 64.29 $ 79.29 $ 99.95
2012 2 $ 35.00 $ 50.00 $ 92.50




Anadarko Petroleum Corporation
Natural Gas Basis Hedge Positions
As of July 25, 2011



Volume
(thousand Price per
MMBtu/d) MMBtu
------------ -----------
Basis Swaps
2011
Mid Continent 15 $ (0.76)
Rocky Mountains 30 $ (2.22)
------------ -----------
45 $ (1.74)





Interest Rate Derivatives
As of July 25, 2011


Rate Rate
Instrument Notional Amt. Start Date Maturity Paid Received
------------------ ---------- ---------- ------- ----------

Swap $ 750 Million Oct-2011 Oct-2021 4.72% 3M LIBOR
Swap $ 1,250 Million Oct-2011 Oct-2041 4.83% 3M LIBOR
Swap $ 250 Million Oct-2012 Oct-2022 4.91% 3M LIBOR
Swap $ 750 Million Oct-2012 Oct-2042 4.80% 3M LIBOR

------------------ ---------- ---------- ------- ----------