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Anadarko Announces First-Quarter 2013 Results


Anadarko Announces First-Quarter 2013 Results

Increases Full-Year 2013 Sales-Volumes Guidance

HOUSTON, TX -- (Marketwired) -- 05/06/13 -- Anadarko Petroleum Corporation (NYSE: APC) today announced first-quarter 2013 net income attributable to common stockholders of $460 million, or $0.91 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 $87 million, or $0.17 per share (diluted), on an after-tax basis.(1) Cash flow from operating activities in the first quarter of 2013 was approximately $2.503 billion, and discretionary cash flow totaled $2.056 billion.(2)

First-Quarter 2013 Highlights


 
--  Achieved record daily sales volumes of 793,000 barrels of oil
    equivalent (BOE)
--  Monetized assets totaling more than $1.2 billion
--  Initiated oil production at the El Merk project in Algeria
--  Delivered outstanding deepwater success in the Gulf of Mexico's
    Shenandoah Basin

"The record first-quarter 2013 results reflect our commitment to accelerate value by increasing production in our core operating areas, selectively monetizing assets and delivering large-scale projects on budget," said Anadarko President and CEO Al Walker. "We achieved a 16-percent year-over-year increase in oil sales volumes, primarily driven by 25,000 barrels-per-day growth from our U.S. onshore assets, plus the benefit of an accelerated tanker lifting at Jubilee. In addition, we monetized more than $1.2 billion of assets, including the $860 million carried-interest agreement at Heidelberg, and achieved first oil at our El Merk development in Algeria. I'm also very proud of our very active global deepwater exploration program that continues to deliver industry-leading success and differentiating value."

Operations Summary Anadarko reported total sales volumes of 71 million BOE, or 793,000 BOE per day, during the first quarter. Liquids sales volumes averaged 345,000 BOE per day, which includes 257,000 barrels of oil per day. Natural gas volumes averaged approximately 2.7 billion cubic feet per day. As a result of this performance, Anadarko has increased its full-year 2013 sales-volumes guidance to a range of 279 to 287 million BO E from a previous range of 279 to 285 million BOE.

Anadarko's Wattenberg field achieved record quarterly sales volumes, averaging more than 113,000 BOE per day, which included a 45-percent increase in liquids sales volumes over the first quarter of 2012. The Eagleford Shale also delivered record performance and surpassed a production milestone of 50 million BOE during the quarter, with total liquids sales volumes averaging approximately 28,000 barrels per day, representing a 60-percent increase over the first quarter of 2012. Anadarko also achieved record sales volumes during the quarter in the Marcellus Shale, the East Texas Horizontal play and in its Permian oil assets.

During the quarter, Anadarko and its partners achieved first oil at the El Merk project in Algeria. Production from El Merk is expected to steadily increase throughout 2013 to a net 30,000 barrels of oil per day as additional production facilities and fields are brought on line.

Exploration Summary Anadarko and its partners announced two new successful deepwater wells in the Gulf of Mexico's emerging Shenandoah Basin. Anadarko's Shenandoah-2 well, located in Walker Ridge block 51, encountered more than 1,000 net feet of oil pay, establishing Shenandoah as one of the company's largest Gulf of Mexico oil discoveries to date. In addition, the Coronado well, located in Walker Ridge block 98, encountered more than 400 net feet of oil pay, while drilling activity at the nearby Yucatan well in Walker Ridge block 95 is ongoing. Subsequent to quarter end, Anadarko announced the Phobos discovery, located in Sigsbee Escarpment block 39. The well encountered approximately 250 net feet of oil pay in the Wilcox formation, and future appraisal activity is now being evaluated.

Offshore Mozambique, Anadarko discovered a new, distinct natural gas reservoir in its Offshore Area 1 block. The Orca-1 discovery well, announced in April, encountered more than 190 net feet of natural gas pay and provides additional options and flexibility for future development.

The company is continuing its active worldwide deepwater exploration program with six deepwater wells currently drilling.

Financial Summary Anadarko ended the quarter with approximately $3.7 billion of cash on hand and also improved its net-debt-to-adjusted-capitalization ratio(2) to 32 percent at the end of the first quarter compared to 34 percent at the end of 2012. In addition to the $1.2 billion of monetizations, Anadarko also completed the sale of its Liberty and Rome natural gas gathering systems in the Marcellus Shale to its subsidiary, Western Gas Partners, LP (NYSE: WES), for total consideration of $490 million.

Operations Report For more details on Anadarko's operations and exploration program, please refer to the comprehensive report on first-quarter 2013 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, May 7, 2013, at 9 a.m. Central Daylight Time (10 a.m. Eastern Daylight Time) to discuss first-quarter results, current operations and the company's outlook for the remainder of 2013. The dial-in number is 855.812.0464 in the United States, or 970.300.2271 internationally. The confirmation number is 36701180. For complete instructions on how to participate in the conference call, or to listen to the live audio webcast and slide presentation, please visit www.anadarko.com. A replay of the call will be available on the website for approximately 30 days following the conference call.

Financial Data Eight pages of summary financial data follow, including current hedge positions and updated financial and production guidance.

(1) See the accompanying table for details of certain items affecting comparability.

(2) See the accompanying table for a reconciliation of GAAP to non-GAAP financial measures and a statement indicating why management believes the non-GAAP financial measures provide useful information for investors.

Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2012, the company had approximately 2.56 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. For more information about Anadarko and APC Flash Feed updates, please visit www.anadarko.com.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Anadarko believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release, including Anadarko's ability to drill, develop and commercially operate the drilling prospects identified in this news release. See "Risk Factors" in the company's 2012 Annual Repo rt on Form 10-K, Quarterly Reports on Form 10-Q and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.


 
                                                                            
                                                                            
                       Anadarko Petroleum Corporation                       
                   Certain Items Affecting Comparability                    
                                                                            
                                              Quarter Ended March 31, 2013  
                                            ------------------------------- 
                                              Before     After    Per Share 
millions except per-share amounts              Tax        Tax     (diluted) 
                                            ---------  ---------  --------- 
                                                                            
Unrealized gains (losses) on derivatives,                                   
 net*                                       $    (246) $    (156) $   (0.31)
Gains (losses) on divestitures, net               144         90       0.18 
Impairments                                       (29)       (19)     (0.04)
Algeria exceptional profits tax settlement        (33)         -          - 
Deepwater Horizon settlement and related                                    
 costs                                             (3)        (2)         - 
                                            ---------  ---------  --------- 
                                            $    (167) $     (87) $   (0.17)
                                            =========  =========  ========= 
* For the quarter ended March 31, 2013, before-tax unrealized gains         
 (losses) on derivatives, net includes $(334) million related to commodity  
 derivatives, $92 million related to other derivatives, and $(4) million    
 related to gathering, processing, and marketing sales.                     
                                                                            
                                                                            
                                              Quarter Ended March 31, 2012  
                                            ------------------------------- 
                                              Before     After    Per Share 
millions except per-share amounts              Tax        Tax     (diluted) 
                                            ---------  ---------  --------- 
                                                                            
Unrealized gains (losses) on derivatives,                                   
 net*                                       $     142  $      90  $    0.18 
Gains (losses) on divestitures, net               (17)       (11)     (0.02)
Impairments, including unproved properties        (53)       (34)     (0.07)
Change in uncertain tax positions (FIN 48)          -         12       0.03 
Algeria exceptional profits tax settlement      1,804      1,804       3.60 
Tronox damage claim settlement                   (275)      (175)     (0.35)
Deepwater Horizon settlement and related                                    
 costs                                             (8)        (5)     (0.01)
                                            ---------  ---------  --------- 
                                            $   1,593  $   1,681  $    3.36 
                                            =========  =========  ========= 
                                                                            
* For the quarter ended March 31, 2012, before-tax unrealized gains         
 (losses) on derivatives, net includes $(89) million related to commodity   
 derivatives, $236 million related to other derivatives, and $(5) 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    
                                                       -------------------- 
                                                             March 31,      
millions                                                  2013       2012   
                                                       ---------  --------- 
Net cash provided by operating activities              $   2,503  $   1,891 
Add back                                                                    
  Deepwater Horizon settlement and related costs               3        (22)
  Algeria exceptional profits tax settlement                (450)         - 
  Change in accounts receivable                              (40)        27 
  Change in accounts payable and accrued expenses            158        258 
  Change in other items-net                                 (118)      (232)
                                                       ---------  --------- 
Discretionary cash flow from operations                $   2,056  $   1,922 
                                                       =========  ========= 
                       Anadarko Petroleum Corporation                       
                Reconciliation of GAAP to Non-GAAP Measures                 
                                                           Quarter Ended    
                                                             March 31,      
                                                       -------------------- 
millions                                                  2013       2012   
                                                       ---------- --------- 
Discretionary cash flow from operations                $    2,056 $   1,922 
Less capital expenditures*                                  1,747     1,790 
                                                       ---------- --------- 
Free cash flow                                         $      309 $     132 
                                                       ========== ========= 
Collection of Algeria exceptional profits tax                     
          
 receivable                                                   450         - 
                                                       ---------- --------- 
Adjusted free cash flow                                $      759 $     132 
                                                       ========== ========= 
                                                                            
* Includes Western Gas Partners, LP (WES) capital expenditures of $299      
million and $98 million for the three months ended March 31, 2013 and 2012, 
respectively.                                                               
                                                                            
                                     Quarter Ended         Quarter Ended    
                                    March 31, 2013        March 31, 2012    
                                 --------------------  -------------------- 
millions except per-share                   Per Share             Per Share 
 amounts                         After Tax  (diluted)   After Tax (diluted) 
                                 ---------  ---------  ---------- --------- 
Net income (loss) attributable                                              
 to common stockholders          $     460  $    0.91  $    2,156 $    4.28 
Certain items affecting                                                     
 comparability                         (87)     (0.17)      1,681      3.36 
                                 ---------  ---------  ---------- --------- 
Adjusted net income (loss)       $     547  $    1.08  $      475 $    0.92 
                                 =========  =========  ========== ========= 
                                                                            
Presented below is a reconciliation of total debt (GAAP) to net debt (non-  
GAAP). Management uses net debt as a measure of the Company's outstanding   
debt obligations that would not be readily satisfied by its cash and cash   
equivalents on hand.                                                        
                                                                            
millions                                                          March 31, 
                                                                     2013   
                                                                  --------- 
Total debt                                                        $  13,663 
Less cash and cash equivalents                                        3,735 
                                                                  --------- 
Net debt                                                          $   9,928 
                                                                  ========= 
                                                                            
Net debt                                                          $   9,928 
Stockholders' equity                                                 21,090 
                                                                  --------- 
Adjusted capitalization                                           $  31,018 
                                                                  ========= 
                                                                            
                                                                  --------- 
Net debt to adjusted capitalization ratio                                32%
                                                                  ========= 
                                                                            
                                                                            
                                                                            
                       Anadarko Petroleum Corporation                       
                                 (Unaudited)                                
                                                                            
                                                        Quarter Ended       
Summary Financial Information                             March 31,         
                                                 -------------------------- 
millions except per-share amounts                    2013          2012     
                                                 ------------  ------------ 
Consolidated Statements of Income                                           
Revenues and Other                                                          
Natural-gas sales                                $        807  $        573 
Oil and condensate sales                                2,377         2,244 
Natural-gas liquids sales                                 303           342 
Gathering, processing, and marketing sales                231           253 
Gains (losses) on divestitures and other, net             175            35 
                                                 ------------  ------------ 
Total                                                   3,893         3,447 
                                                 ============  ============ 
Costs and Expenses                                                          
                                                 ------------  ------------ 
Oil and gas operating                                     247           242 
Oil and gas transportation and other                      255           240 
Exploration                                               264           244 
Gathering, processing, and marketing                      199           189 
General and administrative                                272           269 
Depreciation, depletion, and amortization               1,022           930 
Other taxes                                               280           377 
Impairments                                                29            50 
Algeria exceptional profits tax settlement                 33        (1,804)
Deepwater Horizon settlement and related costs              3             8 
                                                 ------------  ------------ 
Total                                                   2,604           745 
                                                 ============  ============ 
Operating Income (Loss)                                 1,289         2,702 
                                                 ============  ============ 
Other (Income) Expense                                                      
                                                 ------------  ------------ 
Interest expense                                          164           186 
(Gains) losses on derivatives, net                        191          (284)
Other (income) expense, net                                (6)          265 
                                                 ------------  ------------ 
Total                                                     349           167 
                                                 ============  ============ 
Income (Loss) Before Income Taxes                         940         2,535 
                                                 ============  ============ 
Income Tax Expense (Benefit)                              456           352 
                                                 ============  ============ 
Net Income (Loss)                                $        484  $      2,183 
                                                 ============  ============ 
Net Income Attributable to Noncontrolling                                   
 Interests                                                 24            27 
                                                 ============  ============ 
Net Income (Loss) Attributable to Common                                    
 Stockholders                                    $        460  $      2,156 
                                                 ============  ============ 
Per Common Share                                                    
        
                                                 ============  ============ 
Net income (loss) attributable to common                                    
 stockholders-basic                              $       0.91  $       4.30 
Net income (loss) attributable to common                                    
 stockholders-diluted                            $       0.91  $       4.28 
                                                 ============  ============ 
Average Number of Common Shares Outstanding-                                
 Basic                                                    501           499 
                                                 ============  ============ 
Average Number of Common Shares Outstanding-                                
 Diluted                                                  503           501 
                                                 ============  ============ 
                                                                            
                                                 ============  ============ 
Exploration Expense                                                         
                                                 ------------  ------------ 
Dry hole expense                                 $        158  $         89 
Impairments of unproved properties                         19            60 
Geological and geophysical expense                         37            35 
Exploration overhead and other                             50            60 
                                                 ------------  ------------ 
Total                                            $        264  $        244 
                                                 ============  ============ 
                                                                            
                                                                            
                                                                            
                       Anadarko Petroleum Corporation                       
                                 (Unaudited)                                
                                                        Quarter Ended       
Summary Financial Information                             March 31,         
                                                 -------------------------- 
millions                                             2013          2012     
                                                 ------------  ------------ 
Cash Flows from Operating Activities                                        
                                                 ------------  ------------ 
Net income (loss)                                $        484  $      2,183 
Depreciation, depletion, and amortization               1,022           930 
Deferred income taxes                                     162           210 
Dry hole expense and impairments of unproved                                
 properties                                               177           149 
Impairments                                                29            50 
(Gains) losses on divestitures, net                      (144)           17 
Unrealized (gains) losses on derivatives, net             246          (142)
Deepwater Horizon settlement and related costs              3             8 
Algeria exceptional profits tax settlement                 33        (1,804)
Tronox-related contingent loss                              -           275 
Other                                                      44            46 
                                                 ------------  ------------ 
Discretionary Cash Flow from Operations                 2,056         1,922 
Deepwater Horizon settlement and related costs             (3)           22 
Algeria exceptional profits tax settlement                450             - 
(Increase) decrease in accounts receivable                 40           (27)
Increase (decrease) in accounts payable and                                 
 accrued expenses                                        (158)         (258)
Other items-net                                           118           232 
                                                 ------------  ------------ 
Net Cash Provided by Operating Activities        $      2,503  $      1,891 
                                                 ============  ============ 
                                                                            
                                                 ============  ============ 
Capital Expenditures                             $      1,747  $      1,790 
                                                 ------------  ------------ 
                                                                            
                                                   March 31,   December 31, 
millions                                             2013          2012     
                                                 ------------  ------------ 
Condensed Balance Sheets                                                    
                                                 ------------  ------------ 
Cash and cash equivalents                        $      3,735  $      2,471 
Accounts receivable, net of allowance                   2,760         2,747 
Algeria exceptional profits tax settlement                280           730 
Other current assets                                      535           847 
Net properties and equipment                           38,970        38,398 
Other assets                                            1,630         1,716 
Goodwill and other intangible assets                    5,678         5,680 
                                                 ------------  ------------ 
Total Assets                                     $     53,588  $     52,589 
                                                 ------------  ------------ 
Current asset retirement obligations                      387           298 
Other current liabilities                               3,685         3,696 
Long-term debt                                         13,663        13,269 
Deferred income taxes                                   8,964         8,759 
Other long-term liabilities                             4,559         4,685 
Stockholders' equity                                   21,090        20,629 
Noncontrolling interests                                1,240         1,253 
                                                 ------------  ------------ 
Total Liabilities and Equity                     $     53,588  $     52,589 
                                                 ============  ============ 
Capitalization                                                              
                                                 ------------  ------------ 
Total debt                                       $     13,663  $     13,269 
Stockholders' equity                                   21,090        20,629 
                                                 ------------  ------------ 
Total                                            $     34,753  $     33,898 
                                                 ============  ============ 
Capitalization Ratios                                                       
                                                 ------------  ------------ 
Total debt                                                 39%           39%
Stockholders' equity                                       61%           61%
                                                 ============  ============ 
                                                                            
                                                                            
                                                                            
                       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 March                                                         
 31, 2013                                                                   
United States           2,689        159      88     242         14       8 
Algeria                     -         53       -       -          5       - 
Other International         -         45       -       -          4       - 
                      ------- ---------- ------- ------- ---------- ------- 
Total                   2,689        257      88     242         23       8 
                      ------- ---------- ------- ------- ---------- ------- 
                                                                            
Quarter Ended March                                                         
 31, 2012                                                                   
United States           2,416        138      80     220         12       7 
Algeria                     -         50       -       -          5       - 
Other International         -         33       -       -          3       - 
                      ------- ---------- ------- ------- ---------- ------- 
Total                   2,416        221      80     220         20       7 
                      ------- ---------- ------- ------- ---------- ------- 
                                                                            
 
                                               
Sales Volumes and                              
Prices                                         
                                               
                         Average Sales Price   
                     --------------------------
                              Crude Oil        
                     Natural      &            
                       Gas   Condensate   NGLs 
                     Per Mcf   Per Bbl  Per Bbl
                     ------- ---------- -------
Quarter Ended March                            
 31, 2013                                      
United States        $  3.33 $    97.32 $ 38.17
Algeria                    -     112.91       -
Other International        -     111.32       -
                     ------- ---------- -------
Total                $  3.33 $   102.97 $ 38.17
                     ------- ---------- -------
                                               
Quarter Ended March                            
 31, 2012                                      
United States        $  2.60 $   105.75 $ 47.09
Algeria                    -     119.57       -
Other International        -     120.64       -
                     ------- ---------- -------
Total                $  2.60 $   111.07 $ 47.09
                     ------- ---------- -------
                                               
                                        
                                        
                      Average           
                       Daily     Sales  
                      Volumes  Volumes  
                       MBOE/d    MMBOE  
                      ------- ----------
                                        
Quarter Ended March                     
 31, 2013                 793         71
Quarter Ended March                     
 31, 2012                 704         64
                                        
                                        
Sales Revenue and Commodity Derivatives 
                                        
                        Sales           
             -------------------------- 
                      Crude Oil         
             Natural      &    
  millions     Gas   Condensate   NGLs  
             ------- ---------- -------
Quarter                                 
 Ended March                            
 31, 2013                               
United                                  
 States      $   807 $    1,393 $   303 
Algeria            -        537       - 
Other                                   
 International                            
                   -        447       - 
             ------- ---------- ------- 
Total        $   807 $    2,377 $   303 
             ------- ---------- ------- 
                                        
Quarter                                 
 Ended March                            
 31, 2012                               
United                                  
 States      $   573 $    1,339 $   342 
Algeria            -        538       - 
Other                                   
 International                            
                   -        367       - 
             ------- ---------- ------- 
Total        $   573 $    2,244 $   342 
             ------- ---------- ------- 
                                        
                                        
                                        
 
                                                                            
                                                                            
Sales Revenue and Commodity Derivatives                                     
                                                                            
                            Commodity Derivatives Gain (Loss)               
             -------------------------------------------------------------- 
                                       Crude Oil &                          
                 Natural Gas           Condensate               NGLs        
             -------------------  --------------------  ------------------- 
  millions   Realized Unrealized  Realized  Unrealized  Realized Unrealized 
             -------- ----------  --------  ----------  -------- ---------- 
Quarter                                                                     
 Ended March                                                                
 31, 2013                                                                   
United                                                                      
 States      $     67 $     (269) $      1  $      (60) $      2 $       (5)
Algeria             -          -       (19)          -         -          - 
Other                                                                       
 International                                                                
                    -          -         -           -         -          - 
             -------- ----------  --------  ----------  -------- ---------- 
Total        $     67 $     (269) $    (18) $      (60) $      2 $       (5)
             -------- ----------  --------  ----------  -------- ---------- 
                                                                            
Quarter                                                                     
 Ended March                                                                
 31, 2012                                                                   
United                                                                      
 States      $    170 $       86  $     (5) $     (173) $      - $       (2)
Algeria             -          -       (28)          -         -          - 
Other                                                        
               
 International                                                                
                    -          -         -           -         -          - 
             -------- ----------  --------  ----------  -------- ---------- 
Total        $    170 $       86  $    (33) $     (173) $      - $       (2)
             -------- ----------  --------  ----------  -------- ---------- 
                                                                            
                                                                            
                                                                            
                       Anadarko Petroleum Corporation                       
                  Financial and Operating External Guidance                 
                              As of May 6, 2013                             
                                                                            
                                                                            
                                              2nd Qtr          Total Year   
                                              Guidance          Guidance    
                                         ----------------- -----------------
                                                                            
                                               Units             Units      
                                         ----------------- -----------------
                                                                            
Total Sales (MMBOE)                          67  -      69    279  -     287
Total Sales (MBOE/d)                        736  -     758    764  -     786
                                                                            
Crude Oil (MBbl/d):                         230  -     234    264  -     268
                                                                            
  United States                             154  -     158    169  -     171
  Algeria                                    47  -      48     59  -      61
  Other International                        27  -      29     34  -      36
                                                                            
Natural Gas (MMcf/d):                                                       
                                                                            
  United States                           2,575  -   2,650  2,510  -   2,540
                                                                            
Natural Gas Liquids (MBbl/d):                                               
                                                                            
  United States                              73  -      79     80  -      95
                                         ----------------- -----------------
                                                                            
                                                                            
                                              $ / Unit          $ / Unit    
                                         ----------------- -----------------
Price Differentials vs NYMEX (w/o hedges)                                   
                                                                            
Crude Oil ($/Bbl):                         3.00  -    6.00   5.00  -    8.00
                                                                            
  United States                            1.00  -    3.00   1.00  -    3.00
  Algeria                                 10.00  -   12.00  12.00  -   15.00
  Other International                     10.00  -   12.00  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                 
                              As of May 6, 2013                             
                                                                            
                                                                            
                                                 2nd Qtr        Total Year  
                                                 Guidance       Guidance *  
                                             --------------- ---------------
                                                                            
                                                   $ MM            $ MM     
                                             --------------- ---------------
Other Revenues:                                                             
  Marketing and Gathering Margin                 25  -    35    150  -   170
  Minerals and Other                             25  -    35    120  -   140
                                                                            
                                             --------------- ---------------
Costs and Expenses:                                                         
                                                 $ / BOE         $ / BOE    
                                             --------------- ---------------
                                                                            
  Oil & Gas Direct Operating                   4.00  -  4.20   3.90  -  4.05
  Oil & Gas Transportation/Other               3.75  -  3.95   3.55  -  3.75
  Depreciation, Depletion and Amortization    14.25  - 14.50  14.50  - 14.75
  Production Taxes (% of Product Revenue)      7.5%  -  8.5%   7.5%  -  9.5%
                                                                            
                                                   $ MM            $ MM     
                                             --------------- ---------------
                                                                            
  General and Administrative                    280  -   290  1,050  - 1,150
  Exploration Expense                                                       
    Non-Cash                                    150  -   175    900  - 1,000
    Cash                                        105  -   115    475  -   525
  Interest Expense (net)                        185  -   190    710  -   720
  Other (Income)/Expense                         15  -    25     75  -    95
                                                                            
Tax Rate:                                                                   
  Algeria (All current)                         45%  -   50%    45%  -   50%
  Rest of Company (10% Current for 2Q and                                   
   20% for FY)                                  45%  -   55%    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
                                                                            
* Excludes items affecting comparability                                    
                                                                            
                                                                            
                                                                            

 
                       Anadarko Petroleum Corporation                       
           Commodity Hedge Positions (Excluding Natural Gas Basis)          
                              As of May 6, 2013                             
                                                                            
                                                                            
                                                                            
                                                 Weighted Average Price per 
                                                           Barrel           
                                               -----------------------------
                                                                            
                                       Volume    Floor     Floor    Ceiling 
                                      (MBbl/d)    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                    
                                                                            
                                                                            
                                                 Weighted Average Price per 
                                                           MMBtu            
                                               -----------------------------
                                                                            
                                       Volume                               
                                     (thousand   Floor     Floor    Ceiling 
                                      MMBtu/d)    Sold   Purchased    Sold  
                                     --------- --------- --------- ---------
Natural Gas                                                                 
  Two-Way Collars                                                           
  2013 (April - October)                   600       n/a $    3.18 $    4.00
                                                                            
  Three-Way Collars                                                         
  2014                                     600 $    2.75 $    3.75 $    5.01
                                                                            
  Fixed Price - Financial                                                   
  2013                                   1,185 $    4.00                    
  2014                                     600 $    4.26                    
                                                                            
                                                                            
                          Interest Rate Derivatives                         
                              As of May 6, 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

Brian Kuck brian.kuck@anadarko.com 832.636.1397

Bill Tedesco william.tedesco@anadarko.com 832.636.3375

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