Anadarko Announces Third-Quarter Results

Anadarko Announces Third-Quarter Results 
Increases Full-Year Sales-Volumes Guidance 
HOUSTON, TX -- (Marketwire) -- 10/29/12 --  Anadarko Petroleum
Corporation (NYSE: 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 sh
ut 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 Perola 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 co
mpany'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 
                                     ========  ========  ========  ======== 
Operati
ng 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                                   
 Pa
rtners, 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 
                                                                            
----------------------------------------------------------------------------

  
Anadarko Contacts 
Media:
John Christiansen
john.christiansen@anadarko.com
832.636.8736 
Brian Cain
brian.cain@anadarko.com
832.636.3404 
Christina Ramirez
christina.ramirez@anadarko.com
832.636.8687 
Investors:
John Colglazier
john.colglazier@anadarko.com
832.636.2306 
Wayne Rodrigs
wayne.rodrigs@anadarko.com
832.636.2305