Anadarko Announces 2013 Capital Program and Guidance

Anadarko Announces 2013 Capital Program and Guidance 
HOUSTON, TX -- (Marketwire) -- 02/20/13 --  Anadarko Petroleum
Corporation (NYSE: APC) today announced details of its 2013 capital
program and guidance, and provided additional information regarding
its significant U.S. onshore growth opportunities, deepwater and
international mega projects and industry-leading exploration program. 
"With the outstanding momentum we established in 2012 and the
opportunities our deep portfolio provides, we expect 2013 to be one
of the best years in our company's history," Anadarko President and
CEO Al Walker said. "Our 2013 capital investments will focus on
projects that generate rates of return between 30 and more than 100
percent in the current commodity-price environment, while spending
within cash flow. We expect to deliver sales-volumes growth of
approximately five percent, with the year-over-year increase
comprised almost entirely of higher-margin oil sales volumes. The
projected increase in oil sales volumes will be largely driven by
accelerated activity in our Wattenberg and Eagleford horizontal
programs and the anticipated ramp up of oil volumes during the year
at our El Merk facilities in Algeria. 
"Accelerating value by advancing our high-margin deepwater and
international oil and LNG (liquefied natural gas) mega projects
remains a priority in 2013, and we expect to continue pursuing carry
arrangements and opportunistic divestitures to further enhance the
capital efficiency of our portfolio," added Walker. "Following our
highly successful 2012 exploration program where we nearly doubled
our original targeted resources, we plan to be among the most active
deepwater explorers in the world again in 2013. We expect to drill
approximately 25 deepwater exploration and appraisal wells this year,
including high-potential prospects in the Gulf of Mexico and three
potentially play-opening international opportunities." 
2013 Capital Program and Expectations
 Total 2013 capital investments
are expected to be in the range of $7.2 to $7.6 billion. This range
excludes capital investments associated with Western Gas Partners, LP
(NYSE: WES), a separate, publicly traded entity controlled by
Anadarko and included in its consolidated financial statements. An
approximate breakout of Anadarko's 2013 capital program is included

                     2013 Capital Expenditures by Area                
                             $7.2 - $7.6 Billion                      
      U.S. Onshore                                                 60%
      International                                                15%
      Gulf of Mexico                                               15%
      Midstream/Other                                              10%

U.S. Onshore 
 The company expects to increase U.S. onshore sales
volumes by approximately 10 percent over 2012, increasing sales of
higher-margin oil volumes by approximately 30,000 barrels per day.
This growth is highlighted by the company's liquids-rich Wattenberg
field, where the company holds significant mineral-interest ownership
and is generating rates of return exceeding 100 percent at today's
prices. Anadarko plans to capitalize on these exceptional economics
by nearly doubling its horizontal drilling activity in the field. In
addition to Wattenberg, Anadarko plans to invest the majority of its
2013 U.S. onshore capital in its major growth plays that generate the
highest returns and margins, such as the Eagleford Shale, the East
Texas Horizontal play, and the Permian Basin.  
The company continues to expand the competitive advantage created by
its large and growing midstream infrastructure, facilitating
continued growth in its core operating areas. Anadarko expects to
significantly improve its price realizations through the addition of
500 million cubic feet per day (MMcf/d) of processing capacity, along
with equity positions in key infrastructure projects and contracted
pipeline capacity.  
Gulf of Mexico
 Anadarko's 2013 unprecedented activity level in the
Gulf of Mexico is under way, with plans to participate in six to
eight exploration and appraisal wells during the year. This includes
ongoing activity in the Shenandoah mini-basin, where the company
already has encountered encouraging results from its Shenandoah
appraisal well and the nearby Coronado prospect, with results from
the Yucatan prospect expected later this quarter.  
The 2013 Gulf of Mexico capital program reflects the benefits of the
$556 million carried-interest agreement for the Lucius project, which
is expected to fully carry Anadarko's capital costs through first
production. The capital program also includes assumptions for a
similar potential carry arrangement associated with the Heidelberg
development, which is expected to be sanctioned later this year. To
further maximize cost efficiencies at Lucius and Heidelberg, Anadarko
is implementing a "design one; build two" approach as it moves
forward on the construction of two truss spars, each with capacity of
80,000 barrels of oil per day. Lucius is on schedule to achieve first
oil in 2014, and Heidelberg is expected to achieve first oil in
 In 2013, Anadarko plans to advance large-scale
development projects in Algeria, Ghana and Mozambique, as well as
continue a very active exploration program consisting of
approximately 20 planned deepwater exploration/appraisal wells. 
In addition to the anticipated oil production ramp up at El Merk,
expansion projects are under way to increase production from the
current 110,000 barrels of oil per day at the Jubilee field offshore
Ghana. In 2013, Anadarko plans to continue working with its partners
and the Ghanaian government to advance the TEN complex, which will be
Ghana's second major deepwater oil development. 
In Mozambique, the company continues to advance the massive natural
gas resources discovered in the Offshore Area 1 toward first LNG
cargoes in 2018. Anadarko and its co-venturers expect to achieve
reserve certification in 2013, while continuing to make progress
securing oil-linked LNG sales agreements.  
During the year, Anadarko expects to test additional opportunities in
Mozambique, Kenya and the West African Cretaceous Trend, as well as
new areas of activity, including the South China Sea and New Zealand. 
2013 Guidance 
 Additional details about the company's 2013 guidance
and updated hedging positions are provided in the tables attached to
this news release.  
Investor Conference Call
 As previously announced, Anadarko will host
an investor conference call today at 7:30 a.m. Central Standard Time
(8:30 a.m. Eastern Standard Time) to discuss details of this year's
capital program, guidance and worldwide activities. The dial-in
number is 855.812.0464 in the United States or 970.300.2271 for
international calls. The confirmation number is 88746956. For
complete instructions on how to participate in the conference call,
or to listen to the live audio webcast and slide presentation, please
visit A replay of the call will also be available
on the website for approximately 30 days following the call. 
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 
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. Anadarko believes that its
expectations are based on reasonable assumptions. No assurance,
however, can be given that such expectations will prove to have been
correct. A number of factors could cause actual results to differ
materially from the projections, anticipated results or other
expectations expressed in this news release, including Anadarko's
ability to meet financial and operating guidance; to meet the
long-term goals identified in this news release; to execute the 2013
capital program; to drill, develop and commercially operate the
drilling prospects identified in this news release; and to
successfully plan, secure necessary government approvals, finance,
build and operate the necessary structure and an LNG park. See "Risk
Factors" in the company's 2012 Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and other public filings and press releases.
Anadarko undertakes no obligation to publicly update or revise any
forward-looking statements.  

                       Anadarko Petroleum Corporation                       
                  Financial and Operating External Guidance                 
                                 2013 Budget                                
                                                 1st Qtr        Total Year  
                                                 Guidance        Guidance   
                                             --------------- ---------------
                                                  Units           Units     
                                             --------------- ---------------
Total Sales (MMBOE)                              67 - 69        279 - 285   
Crude Oil (MBbl/d):                             234 - 238       263 - 266   
United States                                   150 - 154       169 - 171   
Algeria                                          49 - 51         59 - 61    
Other International                              33 - 35         33 - 35    
Natural Gas (MMcf/d):                                                       
United States                                 2,550 - 2,650   2,500 - 2,530 
Natural Gas Liquids (MBbl/d):                                               
United States                                    83 - 87         84 - 92    
                                             --------------- ---------------
                                                 $ / Unit        $ / Unit   
                                             --------------- ---------------
Price Differentials vs NYMEX (w/o hedges)                                   
Crude Oil ($/Bbl):                             6.00 - 9.00     5.00 - 8.00  
United States                                  1.00 - 3.00     1.00 - 3.00  
Algeria                                       15.00 - 17.00   12.00 - 15.00 
Other International                           13.00 - 15.00   10.00 - 13.00 
Natural Gas ($/Mcf):                                                        
United States                                (0.05) - (0.15) (0.05) - (0.15)
                                             --------------- ---------------
                       Anadarko Petroleum Corporation                       
                  Financial and Operating External Guidance                 
                                 2013 Budget                                
                                                 1st Qtr        Total Year  
                                                 Guidance        Guidance   
                                             --------------- ---------------
                                                   $ MM            $ MM     
                                             --------------- ---------------
Other Revenues:                                                             
Marketing and Gathering Margin                   30 - 40        155 - 175   
Minerals and Other                               30 - 40        120 - 140   
                                             --------------- ---------------
Costs and Expenses:                                                         
                                                 $ / BOE         $ / BOE    
                                             --------------- ---------------
Oil & Gas Direct Operating                     3.85 - 4.00     3.90 - 4.10  
Oil & Gas Transportation/Other                 3.55 - 3.75     3.55 - 3.75  
Depreciation, Depletion and Amortization      14.50 - 14.75   14.50 - 14.75 
Production Taxes (% of Revenue)                7.5% - 8.5%     7.5% - 9.5%  
                                                   $ MM            $ MM     
                                             --------------- ---------------
General and Administrative               
       275 - 285     1,050 - 1,150 
Exploration Expense                                                         
Non-Cash                                        100 - 120      900 - 1,000  
Cash                                            105 - 115       475 - 525   
Interest Expense (net)                          185 - 190       725 - 735   
Other (Income) Expense                           15 - 25         75 - 95    
Tax Rate:                                                                   
  Algeria (All Current)                         45% - 50%       45% - 50%   
  Rest of Company (25% Current for 1Q and                                   
   20% for FY)                                  40% - 50%       45% - 55%   
                                             --------------- ---------------
Avg. Shares Outstanding (MM)                                                
Basic                                           501 - 502       502 - 503   
Diluted                                         504 - 505       504 - 505   
Capital Investment (Excluding Western Gas                                   
 Partners, LP)                                     $ MM            $ MM     
                                             --------------- ---------------
APC Capital Expenditures                      1,700 - 1,900   7,200 - 7,600 
                       Anadarko Petroleum Corporation                       
           Commodity Hedge Positions (Excluding Natural Gas Basis)          
                           As of February 19, 2013                          
                                                Weighted Average Price per  
                                  (thousand    Floor      Floor     Ceiling 
                                   MMBtu/d)    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   
                                    Volume                Floor     Ceiling 
                                  (MBbls/d) Floor Sold  Purchased    Sold   
                                  --------- ---------- ---------- ----------
Crude Oil                                                                   
  Three-Way Collars                                                         
    Brent                                26 $    85.00 $   105.00 $   125.15
  Fixed Price - Financial                                                   
    Brent                                61 $   108.72                      
    WTI                                  47 $    94.43                      
                                  --------- ----------                      
                                        108 $   102.50                      
                          Interest Rate Derivatives                         
                           As of February 19, 2013                          
 Instrument  Notional Amt.  Start Date    Maturity    Rate 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   Sept. 2016   Sept. 2026     5.91%     3M LIBOR  
    Swap     $750 Million   Sept. 2016   Sept. 2046     5.86%     3M LIBOR  

Anadarko Contacts 
John Christiansen
Brian Cain
Christina Ramirez
John Colglazier
Brian Kuck
Bill Tedesco
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