Anadarko Announces 2012 Fourth-Quarter and Full-Year Results

Anadarko Announces 2012 Fourth-Quarter and Full-Year Results 
HOUSTON, TX -- (Marketwire) -- 02/04/13 --  Anadarko Petroleum
Corporation (NYSE: APC) today announced 2012 fourth-quarter results,
reporting net income attributable to common stockholders of $203
million, or $.40 per share (diluted). These results include certain
items typically excluded by the investment community in published
estimates. In total, these items decreased net income by
approximately $254 million, or $.51 per share (diluted) on an
after-tax basis.(1) Cash flow from operating activities in the fourth
quarter of 2012 was $2.220 billion. Discretionary cash flow for the
quarter totaled $1.612 billion.(2) 
For the year ended Dec. 31, 2012, Anadarko reported net income
attributable to common stockholders of $2.391 billion, or $4.74 per
share (diluted), and full-year 2012 cash flow from operating
activities was $8.339 billion. Discretionary cash flow for the year
totaled $7.157 billion. 
2012 Operational Highlights 


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

  
"Anadarko's outstanding operational results in 2012 demonstrated the
flexibility and strength of our capital-efficient portfolio," said
Anadarko President and CEO Al Walker. "We achieved record production,
highlighted by a 25,000 barrel-per-day increase in higher-margin
liquids sales volumes over 2011, while continuing to safely improve
efficiencies in every segment of our business. We achieved a
reserve-replacement ratio of 162 percent, before the effects of price
revisions, at competitive costs, and we remain on track to meet our
goal of 3 billion BOE of proved reserves by the end of 2014. We also
made significant progress advancing several large-scale development
projects, contributing to our transparent future growth. We delivered
a 67-percent success rate in 2012 from our deepwater exploration and
appr
aisal drilling program, where we've had a very strong three-year
average success rate of almost 70 percent. The combination of
industry-leading deepwater exploration success and strong,
capital-efficient operating results gives Anadarko a track record our
employees are very proud of and look forward to building upon in
2013." 
2012 Sales Volumes and Proved Reserves
 Anadarko's full-year sales
volumes of natural gas, crude oil and natural gas liquids (NGLs)
totaled a record 268 million BOE, or approximately 732,000 BOE per
day, an increase of 8 percent over full-year 2011 sales volumes of
approximately 248 million BOE. Fourth-quarter 2012 sales volumes of
natural gas, crude oil and NGLs totaled 68 million BOE, or 741,000
BOE per day. 
Anadarko added 434 million BOE of proved reserves in 2012, before the
effects of price revisions, and incurred oil and natural gas
exploration and development costs of $6.358 billion.(2) The company
estimates its proved reserves at year-end 2012 totaled 2.56 billion
BOE, with 74 percent of its reserves in the proved developed category
and 26 percent categorized as proved undeveloped. At year-end 2012,
Anadarko's proved reserves were comprised of 46 percent liquids and
54 percent natural gas.  
2012 U.S. Onshore Highlights
 Anadarko's U.S. onshore operating areas
achieved a 28-percent increase in oil sales volumes for the full year
relative to 2011. As announced in December, the company achieved
gross processed production milestones of 100,000 BOE per day in four
core growth plays (Wattenberg, Eagleford, Greater Natural Buttes and
Marcellus), and made significant progress to enable future production
growth throughout its U.S. onshore portfolio by continuing to expand
its large and growing midstream infrastructure. 
During 2012, Anadarko increased the net estimated resource potential
in the core of its liquids-rich Wattenberg Horizontal play to a new
range of 1.0 billion to 1.5 billion BOE, with significant additional
potential on the company's large mineral interest outside the core of
the field. The Wattenberg field continues to generate outstanding
economics, with rates of return in excess of 100 percent, and
delivered sales volumes growth of more than 25 percent over 2011,
including a 41-percent increase in oil sales volumes.  
In the liquids-rich Eagleford Shale, Anadarko achieved a 93-percent
increase in sales volumes and continued to significantly improve
drilling and completions performance over 2011. By the end of 2012,
drilling cycle times in the field averaged 9.2 days from spud to rig
release, representing a 26-percent improvement over the fourth
quarter of 2011. Other core areas that demonstrated record
sales-volumes growth in 2012 included Greater Natural Buttes,
Marcellus, Permian oil and the East Texas Horizontal play. 
2012 International and Deepwater Highlights
 In 2012, Anadarko
continued a robust worldwide exploration and appraisal program,
participating in more than 25 deepwater wells. As previously
announced, the company made two new significant natural gas
discoveries offshore Mozambique during 2012 at the Golfinho and Atum
prospects. These discoveries more than doubled Anadarko's previous
estimated recoverable resources in the operated Offshore Area 1 to a
range of 35 trillion cubic feet (Tcf) to 65-plus Tcf. Anadarko also
continued its active appraisal drilling and testing programs, the
results of which verified the high deliverability of both the
Prosperidade and Golfinho/Atum complexes. 
The company continued to advance the Mozambique liquefied natural gas
(LNG) development toward first sales in 2018. In December, Anadarko
reached Heads of Agreement with Eni, establishing foundational
principles for the coordinated development of common natural gas
reservoirs in Offshore Areas 1 and 4. Anadarko also awarded
competitive Front-End Engineering and Design contracts for both the
offshore installation and an initial, four-train onshore LNG park.  
In West Africa, the company achieved significant exploration and
appraisal success in discovering and delineating oil opportunities
offshore Ghana and Cote d'Ivoire. In the Deepwater Tano Block
offshore Ghana, Anadarko and its partners continued to advance the
TEN (Tweneboa, Enyenra and Ntomme) complex by drilling three
successful exploration/appraisal wells and submitting a Plan of
Development to the Ghanaian government. The partnership also
increased production at Jubilee to more than 110,000 barrels of oil
per day, through the successful application of acid jobs and the
startup of the initial phase-1A drilling program. The company's Paon
discovery offshore Cote d'Ivoire confirmed the extension of the upper
Cretaceous fan play and could potentially anchor a new oil
development.  
The company achieved first oil in March at its Caesar/Tonga mega
project in the deepwater Gulf of Mexico and, during the fourth
quarter, drilled another successful development well in the field.
Anadarko advanced its Heidelberg discovery by ordering long-lead
items and expects to seek project sanction by mid-year 2013. In
addition, the company drilled its first development well at its
sanctioned Lucius development, encountering 910 net feet of oil pay. 
In 2013, Anadarko is continuing its active internati
onal and
deepwater drilling program with exploration, appraisal, completions
and development activities under way in the Gulf of Mexico.
Internationally, Anadarko recently spud the first of two wells
offshore Kenya, and expects to achieve initial oil production during
the first quarter of 2013 from the first of three facilities in the
El Merk complex in Algeria.  
2012 Financial Highlights 


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

  
"Anadarko further strengthened its balance sheet during 2012 by
repaying all borrowings under its revolving credit facility and
improving the company's net-debt-to-adjusted-capitalization(2) ratio
from 41 percent at year-end 2011 to 34 percent at year-end 2012,"
Walker said. "We ended the year with $2.5 billion of cash on hand,
bolstered by the collection of $1 billion associated with the Algeria
exceptional profits tax resolution. During the year, we actively
managed our portfolio through various monetizations that accelerated
significant value for our shareholders. Among these monetizations
were the previously announced Lucius and Salt Creek carried-interest
agreements, as well as a $114 million transaction for approximately
59,000 acres south of our core Wattenberg activity, while retaining a
20-percent royalty interest on our fee mineral acreage. We were also
very pleased with the initial public offering of WGP, which
established a current market value of more than $6.5 billion for
Anadarko's remaining 91-percent interest. Value acceleration will
continue to be a priority for us in 2013, as demonstrated by the
recently announced divestiture of our equity interest in the OCI soda
ash business for $310 million and additional potential
consideration." 
Anadarko generated $852 million of adjusted free cash flow(2) during
the year, which includes the impact of $529 million of capital
expenditures incurred by Western Gas Partners, LP (NYSE: WES).  
Anadarko plans to communicate its 2013 capital program and
performance expectations during an Investor Conference Call,
scheduled for Feb. 20, 2013. 
Operations Report
 For more details on Anadarko's 2012 operations,
please refer to the operations report on fourth-quarter 2012
activity. The report is available at www.anadarko.com on the Investor
Relations page. 
Conference Call Tomorrow at 9 a.m. CST, 10 a.m. EST
 Anadarko will
host a conference call on Tuesday, February 5, at 9 a.m. Central
Standard Time (10 a.m. Eastern Standard Time) to discuss
fourth-quarter and full-year results. The dial-in number is
855.812.0464 in the United States or 970.300.2271 for international
calls. The confirmation number is 69777651. For complete instructions
on how to participate in the conference call, or to listen to the
live audio webcast and slide presentation, please visit
www.anadarko.com. A replay of the call will also be available on the
website for approximately 30 days following the call.  
Financial Data
 Seven pages of summary financial data follow,
including proved reserves, costs incurred and the company's current
hedge positions. 
(1) See the accompanying table for details of certain items affecting
comparability. 
(2) See the accompanying tables for reconciliations of GAAP to
non-GAAP financial measures and a statement indicating why management
believes the non-GAAP measures provide useful information for
investors.  
Anadarko Petroleum Corporation's mission is to deliver a competitive
and sustainable rate of return to shareholders by exploring for,
acquiring and developing oil and natural gas resources vital to the
world's health and welfare. As of year-end 2012, the company had
approximately 2.56 billion barrels-equivalent of proved reserves,
making it one of the world's largest independent exploration and
production companies. For more information about Anadarko and APC
Flash Feed updates, please visit www.anadarko.com. 
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. Anadarko believes that its
expectations are based on reasonable assumptions. No assurance,
however, can be given that such expectations will prove to have been
correct. A number of factors could cause actual results to differ
materially from the projections, anticipated results or other
expectations expressed in this news release, including Anadarko's
ability to finalize year-end reserves, drill, develop and
commercially operate the drilling prospects identified in this news
release, continue to coordinate development activities with Eni in
Mozambique, successfully plan, secure necessary government approvals,
finance, build and operate an LNG project and WGP's market
performance and the impact on Anadarko's ownership interest. See
"Risk Factors" in the company's 2011 Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q and other public filings and press
releases. Anadarko undertakes no obligation to publicly update or
revise any forward-looking statements.  
Cautionary Note to U.S. Investors: The United States Securities and
Exchange Commission ("SEC") permits oil and gas companies, in their
filings with the SEC, to disclose only proved, probable and possible
reserves that meet the SEC's definitions for such terms. Anadarko
uses certain terms in this news release, such as "net estimated
resource potential," "estimated recoverable resources," and similar
terms that the SEC's guidelines strictly prohibit Anadarko from
including in filings with the SEC. U.S. investors are urged to
consider closely the disclosure in Anadarko's Form 10-K for the year
ended Dec. 31, 2011, File No. 001-08968, available from Anadarko at
www.anadarko.com or by writing Anadarko at: Anadarko Petroleum
Corporation, 1201 Lake Robbins Drive, The Woodlands, Texas 77380,
Attn: Investor Relations. This form may also be obtained by
contacting the SEC at 1-800-SEC-0330. 


 
                       Anadarko Petroleum Corporation                       
                   Certain Items Affecting Comparability                    
                                                                            
                                            Quarter Ended December 31, 2012 
                                           -------------------------------- 
                                             Before     After     Per Share 
millions except per-share amounts             Tax        Tax      (diluted) 
                                           ---------  ---------  ---------- 
Unrealized gains (losses) on derivatives,                                   
 net*                                      $     162  $     102  $     0.20 
Realized losses on interest-rate swaps           (64)       (41)      (0.09)
Gains (losses) on divestitures, net              (48)       (52)      (0.10)
Impairments                                     (223)      (143)      (0.28)
Change in uncertain tax positions (FIN 48)        --        (38)      (0.08)
Deepwater Horizon settlement and related                    
                
 costs                                            (3)        (2)         -- 
WES general partner Unit Appreciation                                       
 Rights                                         (126)       (80)      (0.16)
                                           ---------  ---------  ---------- 
                                           $    (302) $    (254) $    (0.51)
                                           =========  =========  ========== 

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


 
                                                                            
                                            Quarter Ended December 31, 2011 
                                           -------------------------------- 
                                             Before     After     Per Share 
millions except per-share amounts             Tax        Tax      (diluted) 
                                           ---------  ---------  ---------- 
Unrealized gains (losses) on derivatives,                                   
 net*                                      $     151  $      96  $     0.19 
Realized losses on interest-rate swaps           (57)       (36)      (0.07)
Gains (losses) on divestitures, net              265        247        0.49 
Impairments, including unproved properties    (1,556)    (1,012)      (2.03)
Change in uncertain tax positions (FIN 48)        --        (11)      (0.02)
Deepwater Horizon settlement and related                                    
 costs                                           147         94        0.19 
Tronox-related contingent loss                  (250)      (159)      (0.32)
                                           ---------  ---------  ---------- 
                                           $  (1,300) $    (781) $    (1.57)
                                           =========  =========  ========== 

 
* For the quarter ended December 31, 2011, before-tax unrealized gains
(losses) on derivatives, net includes $174 million related to
commodity derivatives, $(27) million related to other derivatives,
and $4 million related to gathering, processing, and marketing sales. 
Reconciliation of GAAP to Non-GAAP Measures 
Below are reconciliations of cash provided by operating activities
(GAAP) to discretionary cash flow from operations (non-GAAP), free
cash flow (non-GAAP), and adjusted free cash flow (non-GAAP), as well
as net income (loss) attributable to common stockholders (GAAP) to
adjusted net income (loss) (non-GAAP) as required under Regulation G
of the Securities Exchange Act of 1934. Management uses discretionary
cash flow from operations because it is useful in comparisons of oil
and gas exploration and production companies as it excludes
fluctuations in assets and liabilities. Management uses free cash
flow and adjusted free cash flow to demonstrate the Company's ability
to internally fund capital expenditures and to service or incur
additional debt. Management uses adjusted net income (loss) to
evaluate the Company's operational trends and performance.  


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

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


 
                                      Quarter Ended        Quarter Ended    
                                    December 31, 2012    December 31, 2011  
                                   -------------------  ------------------- 
                                    After    Per Share   After    Per Share 
millions except per-share amounts    Tax     (diluted)    Tax     (diluted) 
                                   -------  ----------  -------  ---------- 
Net income (loss) attributable to                                           
 common stockholders               $   203  $     0.40  $  (358) $    (0.72)
Less: Certain items affecting                                               
 comparability                        (254)      (0.51)    (781)      (1.57)
                                   -------  ----------  -------  ---------- 
Adjusted net income (loss)         $   457  $     0.91  $   423  $     0.85 
                                   =======  ==========  =======  ========== 

 
Presented below are reconciliations of costs incurred (GAAP) to oil
and
 natural gas exploration and development costs (non-GAAP) and
total debt (GAAP) to net debt (non-GAAP). Management believes oil and
natural gas exploration and development costs is a more accurate
reflection of the expenditures incurred during the current year,
excluding certain obligations to be paid in future periods.
Management uses net debt as a measure of the Company's outstanding
debt obligations that would not be readily satisfied by its cash and
cash equivalents on hand.  


 
                                                                Year Ended  
                                                               December 31, 
millions                                                           2012     
                                                              ------------- 
Costs incurred                                                $       6,367 
Asset retirement obligation liability incurred                          (98)
Cash expenditures for asset retirement obligations                       89 
                                                              ------------- 
Oil and natural gas exploration and development costs         $       6,358 
                                                              ============= 
                                                                            
                                                               December 31, 
millions                                                           2012     
                                                              ------------- 
Total debt                                                    $      13,269 
Less: Cash and cash equivalents                                       2,471 
                                                              ------------- 
Net debt                                                      $      10,798 
                                                              ============= 
                                                                            
Net debt                                                      $      10,798 
Stockholders' equity                                                 20,629 
                                                              ------------- 
Adjusted capitalization                                       $      31,427 
                                                              ============= 
                                                                            
                                                              ------------- 
Net debt to adjusted capitalization ratio                                34%
                                                              ============= 
                                                                            
                       Anadarko Petroleum Corporation                       
                                (Unaudited)                                 
                                                                            
                                        Quarter Ended        Year Ended     
Summary Financial Information           December 31,        December 31,    
                                     ------------------  ------------------ 
millions except per-share amounts      2012      2011      2012      2011   
                                     --------  --------  --------  -------- 
Consolidated Statements of Income                                           
                                     --------  --------  --------  -------- 
Revenues and Other                                                          
                                     --------  --------  --------  -------- 
Natural-gas sales                    $    762  $    736  $  2,444  $  3,300 
Oil and condensate sales                2,099     2,124     8,728     8,072 
Natural-gas liquids sales                 311       382     1,224     1,462 
Gathering, processing, and marketing                                        
 sales                                    240       298       911     1,048 
Gains (losses) on divestitures and                                          
 other, net                                (2)      299       104        85 
                                     --------  --------  --------  -------- 
Total                                   3,410     3,839    13,411    13,967 
                                     ========  ========  ========  ======== 
Costs and Expenses                                                          
                                     --------  --------  --------  -------- 
Oil and gas operating                     244       263       976       993 
Oil and gas transportation and other      245       258       955       891 
Exploration                               284       354     1,946     1,076 
Gathering, processing, and marketing      211       201       763       791 
General and administrative                430       276     1,246     1,060 
Depreciation, depletion, and                                                
 amortization                           1,028       928     3,964     3,830 
Other taxes                               254       360     1,224     1,492 
Impairments                               223     1,487       389     1,774 
Algeria exceptional profits tax                                             
 settlement                                --        --    (1,797)       -- 
Deepwater Horizon settlement and                                            
 related costs                              3      (147)       18     3,930 
                                     --------  --------  --------  -------- 
Total                                   2,922     3,980     9,684    15,837 
                                     ========  ========  ========  ======== 
Operating Income (Loss)                   488      (141)    3,727    (1,870)
                                     ========  ========  ========  ======== 
Other (Income) Expense                                                      
                                     --------  --------  --------  -------- 
Interest expense                          181       197       742       839 
(Gains) losses on derivatives, net       (249)     (161)     (326)      461 
Other (income) expense, net                10       256      (254)      254 
                                     --------  --------  --------  -------- 
Total                                     (58)      292       162     1,554 
                                     ========  ========  ========  ======== 
Income (Loss) Before Income Taxes         546      (433)    3,565    (3,424)
                                     ========  ========  ========  ======== 
Income Tax Expense (Benefit)              356       (94)    1,120      (856)
                                     ========  ========  ========  ======== 
Net Income (Loss)                    $    190  $   (339) $  2,445  $ (2,568)
                                     ========  ========  ========  ======== 
Net Income (Loss) Attributable to                                           
 Noncontrolling Interests                 (13)       19        54        81 
                                     ========  ========  ========  ======== 
Net Income (Loss) Attributable to                                           
 Common Stockholders                 $    203  $   (358) $  2,391  $ (2,649)
                                     ========  ========  ========  ======== 
Per Common Share:                                                           
                                     ========  ========  ========  ======== 
Net income (loss) attributable to                                           
 common stockholders--basic          $   0.40  $  (0.72) $   4.76  $  (5.32)
Net income (loss) attributable to                                           
 common stockholders--diluted        $   0.40  $  (0.72) $   4.74  $  (5.32)
                                     ========  
========  ========  ======== 
Average Number of Common Shares                                             
 Outstanding--Basic                       500       498       500       498 
                                     ========  ========  ========  ======== 
Average Number of Common Shares                                             
 Outstanding--Diluted                     502       498       502       498 
                                     ========  ========  ========  ======== 
                                                                            
                                     ========  ========  ========  ======== 
Exploration Expense                                                         
                                     --------  --------  --------  -------- 
Dry hole expense                     $     94  $     79  $    440  $    154 
Impairments of unproved properties         61       123     1,104       471 
Geological and geophysical expense         62        94       151       246 
Exploration overhead and other             67        58       251       205 
                                     --------  --------  --------  -------- 
Total                                $    284  $    354  $  1,946  $  1,076 
                                     ========  ========  ========  ======== 
                                                                            
                                                                            
                       Anadarko Petroleum Corporation                       
                                (Unaudited)                                 
                                                                            
                                        Quarter Ended        Year Ended     
Summary Financial Information           December 31,        December 31,    
                                     ------------------  ------------------ 
millions                               2012      2011      2012      2011   
                                     --------  --------  --------  -------- 
Cash Flows from Operating Activities                                        
                                     --------  --------  --------  -------- 
Net income (loss)                    $    190  $   (339) $  2,445  $ (2,568)
Depreciation, depletion, and                                                
 amortization                           1,028       928     3,964     3,830 
Deferred income taxes                      69      (266)      164    (1,461)
Dry hole expense and impairments of                                         
 unproved properties                      155       202     1,544       625 
Impairments                               223     1,487       389     1,774 
(Gains) losses on divestitures, net        48      (265)       71       (22)
Unrealized (gains) losses on                                                
 derivatives, net                        (162)     (151)      377       616 
Deepwater Horizon settlement and                                            
 related costs                              3      (147)       18     3,930 
Algeria exceptional profits tax                                             
 settlement                                --        --    (1,797)       -- 
Tronox-related contingent loss             --       250      (250)      250 
Other                                      58        53       232       204 
                                     --------  --------  --------  -------- 
Discretionary Cash Flow from                                                
 Operations                             1,612     1,752     7,157     7,178 
Deepwater Horizon settlement and                                            
 related costs                             (4)   (3,891)        6    (3,948)
Algeria exceptional profits tax                                             
 settlement                               392        --     1,006        -- 
(Increase) decrease in accounts                                             
 receivable                               111       (54)      520      (993)
Increase (decrease) in accounts                                             
 payable and accrued expenses              10        34      (476)      284 
Other items--net                           99        72       126       (16)
                                     --------  --------  --------  -------- 
Net Cash Provided by Operating                                              
 Activities                          $  2,220  $ (2,087) $  8,339  $  2,505 
                                     ========  ========  ========  ======== 
                                                                            
                                     ========  ========  ========  ======== 
Capital Expenditures                 $  1,933  $  1,942  $  7,311  $  6,553 
                                     --------  --------  --------  -------- 
                                                                            
                                                 December 31,  December 31, 
millions                                             2012          2011     
                                                 ------------  ------------ 
Condensed Balance Sheets                                                    
                                                 ------------  ------------ 
Cash and cash equivalents                        $      2,471  $      2,697 
Algeria exceptional profits tax settlement                730            -- 
Other current assets                                    3,594         4,234 
Net properties and equipment                           38,398        37,501 
Other assets                                            1,716         1,516 
Goodwill and other intangible assets                    5,680         5,831 
                                                 ------------  ------------ 
Total Assets                                     $     52,589  $     51,779 
                                                 ------------  ------------ 
Current portion of long-term debt                $         --  $        170 
Other current liabilities                               3,994         4,729 
Long-term debt                                         13,269        15,060 
Other long-term liabilities                            13,444        12,837 
Stockholders' equity                                   20,629        18,105 
Noncontrolling interests                                1,253           878 
                                                 ------------  ------------ 
Total Liabilities and Equity                     $     52,589  $     51,779 
                                                 ============  ============ 
Capitalization                                                              
                                                 ------------  ------------ 
Total debt                                       $     13,269  $     15,230 
Stockholders' equity                                   20,629        18,105 
                                                 ------------  ------------ 
Total                                            $     33,898  $     33,335 
                                                 ============  ============ 
Capitalization Ratios                                                       
                                                 ------------  ------------ 
Total debt                                                 39%           46%
Stockholders' equity                                       61%           54%
                                                 ============  ============ 
                                                                            
                                                                            
                       Anadarko Petroleum Corporation                       
                                 (Unaudited)     
                           
                                                                            
Sales Volumes and Prices                                                    
                                                                            
                         Average Daily Volumes          Sales Volumes       
                      -------------------------- -------------------------- 
                               Crude Oil                  Crude Oil         
                      Natural      &             Natural      &             
                        Gas   Condensate   NGLs    Gas   Condensate   NGLs  
                       MMcf/d   MBbls/d  MBbls/d   Bcf     MMBbls    MMBbls 
                      ------- ---------- ------- ------- ---------- ------- 
Quarter Ended                                                               
 December 31, 2012                                                          
United States           2,521        159      87     232         15       8 
Algeria                    --         47      --      --          4      -- 
Other International        --         28      --      --          3      -- 
                      ------- ---------- ------- ------- ---------- ------- 
Total                   2,521        234      87     232         22       8 
                      ------- ---------- ------- ------- ---------- ------- 
                                                                            
Quarter Ended                                                               
 December 31, 2011                                                          
United States           2,328        129      75     214         12       7 
Algeria                    --         60      --      --          6      -- 
Other International        --         31      --      --          2      -- 
                      ------- ---------- ------- ------- ---------- ------- 
Total                   2,328        220      75     214         20  
     7 
                      ------- ---------- ------- ------- ---------- ------- 
                                                                            
Year Ended December                                                         
 31, 2012                                                                   
United States           2,495        149      83     913         55      30 
Algeria                    --         54      --      --         20      -- 
Other International        --         30      --      --         11      -- 
                      ------- ---------- ------- ------- ---------- ------- 
Total                   2,495        233      83     913         86      30 
                      ------- ---------- ------- ------- ---------- ------- 
                                                                            
Year Ended December                                                         
 31, 2011                                                                   
United States           2,334        132      74     852         48      27 
Algeria                    --         57      --      --         21      -- 
Other International        --         28      --      --         10      -- 
                      ------- ---------- ------- ------- ---------- ------- 
Total                   2,334        217      74     852         79      27 
                      ------- ---------- ------- ------- ---------- ------- 
                                                                            
                      ======= ========== ======= ======= ========== ======= 
 
                                                 
                          Average Sales Price    
                     ----------------------------
                               Crude Oil         
                      Natural      &             
                        Gas   Condensate   NGLs  
                      Per Mcf   Per Bbl   Per Bbl
                     -------- ---------- --------
Quarter Ended                                    
 December 31, 2012                               
United States        $   3.28 $    92.50 $  38.97
Algeria                    --     109.68       --
Other International        --     107.56       --
                     -------- ---------- --------
Total                $   3.28 $    97.74 $  38.97
                     -------- ---------- --------
                                                 
Quarter Ended                                    
 December 31, 2011                               
United States        $   3.43 $   100.32 $  55.29
Algeria                    --     111.29       --
Other International        --     110.98       --
                     -------- ---------- --------
Total                $   3.43 $   104.82 $  55.29
                     -------- ---------- --------
                                                 
Year Ended December                              
 31, 2012                                        
United States        $   2.68 $    97.46 $  40.44
Algeria                    --     110.29       --
Other International        --     112.61       --
                     -------- ---------- --------
Total                $   2.68 $   102.35 $  40.44
                     -------- ---------- --------
                                                 
Year Ended December                              
 31, 2011                                        
United States        $   3.87 $    97.70 $  53.95
Algeria                    --     108.74       --
Other International        --     110.12       --
                     -------- ---------- --------
Total                $   3.87 $   102.24 $  53.95
                     -------- ---------- --------
                                                 
                     ======== ========== ========
                                                             
                                       Average               
                                        Daily        Sales   
                                       Volumes      Volumes  
                                       MBOE/d        MMBOE   
                                    ------------ ------------
                                                             
Quarter Ended December 31, 2012              741           68
Quarter Ended December 31, 2011              683           63
                                                             
Year Ended December 31, 2012                 732          268
Year Ended December 31, 2011                 680          248
                                                             
                                                                            
                                                                            
Sales Revenue and Commodity Derivatives                                     
                                            
                            Sales           
                 -------------------------- 
            
                           Crude Oil        
                  Natural      &            
millions            Gas   Condensate  NGLs  
                 -------- ---------- ------ 
Quarter Ended                               
 December 31,                               
 2012                                       
United States    $    762 $    1,351 $  311 
Algeria                --        469     -- 
Other                                       
 International         --        279     -- 
                 -------- ---------- ------ 
Total            $    762 $    2,099 $  311 
                 -------- ---------- ------ 
                                            
Quarter Ended                               
 December 31,                               
 2011                                       
United States    $    736 $    1,190 $  382 
Algeria                --        614     -- 
Other                                       
 International         --    
    320     -- 
                 -------- ---------- ------ 
Total            $    736 $    2,124 $  382 
                 -------- ---------- ------ 
                                            
Year Ended                                  
 December 31,                               
 2012                                       
United States    $  2,444 $    5,332 $1,224 
Algeria                --      2,182     -- 
Other                                       
 International         --      1,214     -- 
                 -------- ---------- ------ 
Total            $  2,444 $    8,728 $1,224 
                 -------- ---------- ------ 
                                            
Year Ended                                  
 December 31,                               
 2011                                       
United States    $  3,300 $    4,667 $1,462 
Algeria                --      2,258     -- 
Other                                       
 International         --      1,147     -- 
                 -------- ---------- ------ 
Total            $  3,300 $    8,072 $1,462 
                 -------- ---------- ------ 
 
                                                                            
                             Commodity Derivatives Gain (Loss)              
                ----------------------------------------------------------- 
                                        Crude Oil &                         
                    Natural Gas          Condensate             NGLs        
                ------------------- ------------------- ------------------- 
millions        Realized Unrealized Realized Unrealized Realized Unrealized 
                -------- ---------- -------- ---------- -------- ---------- 
Quarter Ended                                                               
 December 31,                                                               
 2012                                                                       
United States   $    114 $       20 $     34 $      (13)$      4 $       (4)
Algeria               --         --        1         --       --         -- 
Other                                                                       
 International        --         --       --         --       --         -- 
                -------- ---------- -------- ---------- -------- ---------- 
Total           $    114 $       20 $     35 $      (13)$      4 $       (4)
                -------- ---------- -------- ---------- -------- ---------- 
                                                                            
Quarter Ended                                                               
 December 31,                                                               
 2011                                                                       
United States   $     73 $      246 $     (2)$      (57)$     -- $      (15)
Algeria               --         --       --         --       --         -- 
Other                                                                       
 International        --         --       --         --       --         -- 
                -------- ---------- -------- ---------- -------- ---------- 
Total           $     73 $      246 $     (2)$      (57)$     -- $      (15)
                -------- ---------- -------- ---------- -------- ---------- 
                                                                            
Year Ended                                                                  
 December 31,                                                               
 2012                                                                       
United States   $    678 $     (444)$     70 $       64 $     10 $       14 
Algeria               --         --       (5)        --       --         -- 
Other                                                                       
 International        --         --       --         --       --         -- 
                -------- ---------- -------- ---------- -------- ---------- 
Total           $    678 $     (444)$     65 $       64 $     10 $       14 
                -------- ---------- -------- ---------- -------- ---------- 
                                                                            
Year Ended                                                                  
 December 31,                                                               
 2011                                                                       
United States   $    288 $      192 $    (58)$      131 $     (1)$        4 
Algeria               --         --       (3)         9       --         -- 
Other                                                                       
 International        --         --       --         --       --         -- 
                -------- ---------- -------- ---------- -------- ---------- 
Total           $    288 $      192 $    (61)$      140 $     (1)$        4 
                -------- ---------- -------- ---------- -------- ---------- 
                                                                            
                                                                            
                       Anadarko Petroleum Corporation                       
               Estimated Year-End Proved Reserves 2010 - 2012               
                                                                            
MMBOE                                            2012      2011      2010   
                                               --------  --------  -------- 
Proved Reserves                                                             
Beginning of year                                 2,539     2,422     2,304 
Reserves additions and revisions                                            
  Discoveries and extensions                         82       174        83 
  Infill-drilling additions                         383       203       312 
                                               --------  --------  -------- 
    Drilling-related reserves additions and                                 
     revisions                                      465       377       395 
  Other non-price-related revisions                 (31)        7       (66)
                                               --------  --------  -------- 
    Net organic reserves additions                  434       384       329 
  Acquisition of proved reserves in place             4        --         1 
  Price-related revisions                           (68)        8        29 
                                               --------  --------  -------- 
Total reserves additions and revisions              370       392       359 
Sales in place                                      (81)      (29)       (6)
Production                                         (268)     (246)     (235)
                                               --------  --------  -------- 
End of year                                       2,560     2,539     2,422 
                                               --------  --------  -------- 
Proved Developed Reserves                                                   
Beginning of year                                 1,811     1,673     1,624 
                                               --------  --------  -------- 
End of year                                       1,883     1,811     1,673 
                                               --------  --------  -------- 
                                                                            
                                                                            
                       Anadarko Petroleum Corporation                       
           Commodity Hedge Positions (Excluding Natural Gas Basis)          
                           As of February 4, 2013                           
                                                                            
                                                 Weighted Average Price per 
   
                                                        MMBtu            
                                               -----------------------------
                                    Volume                                  
                                  (thousand                 Floor    Ceiling
                                   MMBtu/d)    Floor Sold Purchased   Sold  
                                  ---------    ---------- --------- --------
Natural Gas                                                                 
  Two-Way Collars                                                           
  2013 (April - October)                600           n/a $    3.18 $   4.00
                                                                            
  Fixed Price - Financial                                                   
  2013                                1,185    $     4.00                   
                                                                            
                                                 Weighted Average Price per 
                                                           barrel           
                                               -----------------------------
                                    Volume                  Floor    Ceiling
                                  (MBbls/d)    Floor Sold Purchased   Sold  
                                  ---------    ---------- --------- --------
Crude Oil                                                                   
  Three-Way Collars                                                         
  2013                                                                      
    Brent                                26    $    85.00 $  105.00 $ 125.15
                                                                            
  Fixed Price - Financial                                                   
  2013                                                                      
    Brent                                61    $   108.72                   
    WTI                                  47    $    94.43                   
                                  ---------                                 
                                        108    $   102.50                   
                                                                            
                                                                            
                          Interest Rate Derivatives                         
----------------------------------------------------------------------------
                           As of February 4, 2013                           
                                                                            
----------------------------------------------------------------------------
Instrument   Notional Amt.  Start Date   Maturity   Rate Paid  Rate Received
----------------------------------------------------------------------------
                                 
                                           
   Swap      $750 Million    June 2014   June 2024    6.00%      3M LIBOR   
   Swap     $1,100 Million   June 2014   June 2044    5.57%      3M LIBOR   
   Swap       $50 Million   Sept. 2016  Sept. 2026    5.91%      3M LIBOR   
   Swap      $750 Million   Sept. 2016  Sept. 2046    5.86%      3M LIBOR   
----------------------------------------------------------------------------

  
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