Anadarko Announces Second-Quarter 2014 Results

Anadarko Announces Second-Quarter 2014 Results 
Increases Midpoint of 2014 Sales-Volume Guidance by 5 Million BOE 
HOUSTON, TX -- (Marketwired) -- 07/29/14 --  Anadarko Petroleum
Corporation (NYSE: APC) today announced its financial and operating
results for the second quarter of 2014, including net income
attributable to common stockholders of $227 million, or $0.45 per
share (diluted). These results include certain items typically
excluded by the investment community in published estimates, which in
the aggregate decreased net income by $442 million or $0.87 per share
(diluted).(1) Cash flow from operating activities in the second
quarter of 2014 was $2.462 billion, and discretionary cash flow
totaled $2.434 billion.(2) 
SECOND-QUARTER 2014 HIGHLIGHTS 


 
--  Delivered record average daily sales volumes of 848,000 barrels of oil
    equivalent (BOE) per day, including a 50,000-barrels-per-day increase
    in oil sales volumes over the second quarter of 2013 from the U.S.
    onshore
--  Achieved oil production milestones in Algeria and Ghana, and advanced
    the Gulf of Mexico Lucius project on schedule
--  Reached a settlement agreement on the Tronox Adversary Proceeding
--  Announced a 50-percent increase in the company's quarterly dividend to
    27 cents per share

  
"Anadarko delivered exceptional operating performance during the second
quarter, with an increase of 65,000 barrels of oil per day over the
second quarter of 2013 led by our U.S. onshore assets and the El Merk
development in Algeria," said Al Walker, Anadarko Chairman, President
and CEO. "We are increasing our full-year sales-volume guidance by 5
million BOE, reflecting our confidence in the portfolio's capability
to continue delivering strong results. To further enhance
performance, we will continue to be an active portfolio manager and
pursue additional opportunities to accelerate value as appropriate." 
OPERATIONS SUMMARY
 During the second quarter, Anadarko's sales
volumes of crude oil, natural gas and natural gas liquids (NGLs)
totaled a record 77 million BOE, or an average of 848,000 BOE per
day, representing an increase of almost 100,000 BOE per day over the
second quarter of 2013. 
Anadarko's U.S. onshore liquids sales volumes increased by more than
86,000 bar
rels per day over the second quarter of 2013, led by
outstanding growth in the company's liquids-rich assets in the
Wattenberg field, Eagleford Shale, Wolfcamp Shale and the East
Texas/North Louisiana area. The Wattenberg field averaged a record
169,000 BOE per day in the second quarter, a 63,000-BOE-per-day
increase over the second quarter of 2013. Wattenberg's growth was
highlighted by an increase of 52,000 barrels per day of higher-margin
liquids volumes relative to the second-quarter 2013, resulting from
the continued strong performance of the company's horizontal program,
higher NGL recoveries through the startup of the Lancaster cryogenic
plant and lower line pressures in the field. 
Anadarko achieved oil production milestones at the El Merk
development in Algeria, which recently achieved a gross-daily
production record of more than 150,000 barrels per day, and at the
Jubilee field offshore Ghana, where cumulative gross oil production
surpassed 100 million barrels during the quarter. 
In the Gulf of Mexico, Anadarko completed all major construction and
installation projects at its Lucius development. The
80,000-barrels-of-oil-per-day Lucius spar is expected to achieve
first oil on schedule around the beginning of the fourth quarter of
2014. In addition, construction on the hull of the Heidelberg spar is
nearly complete, and it remains on schedule to achieve first oil in
2016. 
OPERATIONS REPORT
 For details on Anadarko's operating areas and
exploration program, including tables illustrating same-store sales
information,(3) please refer to the comprehensive report on
second-quarter 2014 activity. The report is available at
www.anadarko.com.  
FINANCIAL SUMMARY
 During the quarter, the company generated more
than $2.4 billion of discretionary cash flow and ended the quarter
with approximately $5.4 billion of cash on hand, while increasing the
quarterly dividend by 50 percent. In addition, Anadarko entered into
a settlement agreement with the plaintiffs in the Tronox Adversary
Proceeding. The settlement agreement is subject to approval by the
District Court, which the company expects to occur during the second
half of 2014. 
Anadarko also enhanced its liquidity position by issuing $1.25
billion of senior notes, and by entering into new unsecured credit
facilities, which are available upon the satisfaction of certain
conditions. Additionally, the company successfully completed a
secondary sale of WGP common units, which resulted in cash proceeds
of approximately $335 million to Anadarko. 
CONFERENCE CALL TOMORROW AT 8 A.M. CDT, 9 A.M. EDT
 Anadarko will
host a conference call on Wednesday, July 30, 2014, at 8 a.m. Central
Daylight Time (9 a.m. Eastern Daylight Time) to discuss
second-quarter results, current operations and the company's outlook
for the remainder of 2014. The dial-in number is 855.812.0464 in the
United States or 970.300.2271 internationally. The confirmation
number is 53684166. 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
 Nine 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. 
(3) See the accompanying table for a reconciliation of same-store
sales. "Same-store" sales volumes are intended to present performance
of Anadarko's continuing asset base, giving effect to recently
announced or closed divestitures. 
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 2013, the company had
approximately 2.79 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 court approval
of the settlement agreement related to the Tronox Adversary
Proceeding, issuance of the injunction and dismissal with prejudice
of the claims asserted in the Adversary Proceeding, Anadarko's
ability to achieve its production targets, successfully manage its
capital expenditures, and achieve production and bu
dget expectations
on its mega projects. See "Risk Factors" in the company's 2013 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                       
                   Certain Items Affecting Comparability                    
                                                                            
                                              Quarter Ended June 30, 2014   
                                            ------------------------------- 
                                              Before     After    Per Share 
millions except per-share amounts              Tax        Tax     (diluted) 
                                            ---------  ---------  --------- 
Total gains (losses) on derivatives, net,                                   
 less net cash from settlement of commodity                                 
 derivatives*                               $    (237) $    (151) $   (0.30)
Gains (losses) on divestitures, net                 9          8       0.02 
Impairments                                      (117)       (75)     (0.15)
Change in uncertain tax positions (FIN 48)         --       (115)     (0.23)
Contingent Clean Water Act penalty accrual        (90)       (90)     (0.17)
Interest expense related to Tronox                                          
 settlement                                       (19)       (19)     (0.04)
                                            ---------  ---------  --------- 
                                            $    (454) $    (442) $   (0.87)
                                            ---------  ---------  --------- 

 
* For the quarter ended June 30, 2014, this includes $(76) million
related to commodity derivatives, $(159) million related to other
derivatives, and $(2) million related to gathering, processing, and
marketing sales.  


 
                                                                            
                                              Quarter Ended June 30, 2013   
                                            ------------------------------- 
                                              Before     After    Per Share 
millions except per-share amounts              Tax        Tax     (diluted) 
                                            ---------  ---------  --------- 
Total gains (losses) on derivatives, net,                                   
 less net cash from settlement of commodity                                 
 derivatives*                               $     641  $     407  $    0.81 
Gains (losses) on divestitures, net                13          9       0.02 
Impairments                                       (10)        (4)     (0.01)
Third-party well and platform                                               
 decommissioning obligation                      (141)       (89)     (0.18)
Reversal of Canadian indemnification                                        
 liability                                         56         35       0.07 
Change i
n uncertain tax positions (FIN 48)         --         37       0.07 
                                            ---------  ---------  --------- 
                                            $     559  $     395  $    0.78 
                                            ---------  ---------  --------- 

 
* For the quarter ended June 30, 2013, this includes $373 million
related to commodity derivatives, $262 million related to other
derivatives, and $6 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), 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 certain fluctuations in assets and
liabilities and current taxes related to certain items affecting
comparability. Management uses 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      Six Months Ended  
                                          June 30,            June 30,      
                                    ------------------- ------------------- 
millions                               2014      2013      2014      2013   
                                    --------- --------- --------- --------- 
Net cash provided by operating                                              
 activities                         $   2,462 $   2,502 $   4,191 $   5,005 
Add back                                                                    
  Algeria exceptional profits tax                                           
   settlement                              --      (248)       --      (698)
  Increase (decrease) in accounts                                           
   receivable                             (83)     (217)      183      (257)
  (Increase) decrease in accounts                                           
   payable and accrued expenses           (84)     (346)      (21)     (221)
  Other items--net                         82       129        27        11 
  Certain nonoperating and other                                            
   excluded items                           1        88         1       124 
  Current taxes related to asset                                            
   monetization                            56        --       576        -- 
                                    --------- --------- --------- --------- 
Discretionary cash flow from                                                
 operations                         $   2,434 $   1,908 $   4,957 $   3,964 
                                    --------- --------- --------- --------- 
                                                                            
                                                                            
                                                                            
                       Anadarko Petroleum Corporation                       
                 Reconciliation of GAAP to Non-GAAP Measures                
                                                                            
                                       Quarter Ended      Six Months Ended  
                                          June 30,      
      June 30,      
                                    ------------------- --------------------
millions                               2014      2013      2014       2013  
                                    --------- --------- ---------  ---------
Discretionary cash flow from                                                
 operations                         $   2,434 $   1,908 $   4,957  $   3,964
Less capital expenditures*              2,402     1,866     4,970      3,613
                                    --------- --------- ---------  ---------
Free cash flow                      $      32 $      42 $     (13) $     351
                                    --------- --------- ---------  ---------

 
* Includes Western Gas Partners, LP (WES) capital expenditures of $173
million for the quarter ended June 30, 2014, $138 million for the
quarter ended June 30, 2013, $343 million for the six months ended
June 30, 2014, and $437 million for the six months ended June 30,
2013.  


 
                                                                            
                                       Quarter Ended        Quarter Ended   
                                       June 30, 2014        June 30, 2013   
                                   --------------------  -------------------
                                     After    Per Share    After   Per Share
millions except per-share amounts     Tax     (diluted)     Tax    (diluted)
                                   ---------  ---------  --------- ---------
Net income (loss) attributable to                                           
 common stockholders               $     227  $    0.45  $     929 $    1.83
Less certain items affecting                                                
 comparability                          (442)     (0.87)       395      0.78
                                   ---------  ---------  --------- ---------
Adjusted net income (loss)         $     669  $    1.32  $     534 $    1.05
                                   ---------  ---------  --------- ---------

 
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. 


 
                                                                            
                                                                  June 30,  
millions                                                            2014    
                                                                ----------- 
Total debt                                                      $    13,414 
Less cash and cash equivalents                                        5,365 
                                                                ----------- 
Net debt                                                        $     8,049 
                                                                ----------- 
                                                                            
Net debt                                                        $     8,049 
Stockholders' equity                                                 19,331 
                                                                ----------- 
Adjusted capitalization                                         $    27,380 
                                                                ----------- 
                                                                            
                                                                ----------- 
Net debt to adjusted capitalization ratio                                29%
       
                                                         ----------- 
                                                                            
                                                                            
                                                                            
                       Anadarko Petroleum Corporation                       
                                (Unaudited)                                 
                                                                            
                                     Quarter Ended       Six Months Ended   
Summary Financial Information          June 30,              June 30,       
                                 --------------------  -------------------- 
millions except per-share                                                   
 amounts                            2014       2013       2014       2013   
                                 ---------  ---------  ---------  --------- 
Consolidated Statements of                                                  
 Income                                                                     
                                 ---------  ---------  ---------  --------- 
Revenues and Other                                                          
                                 ---------  ---------  ---------  --------- 
Natural-gas sales                $     991  $     935  $   2,208  $   1,742 
Oil and condensate sales             2,705      1,995      5,129      4,372 
Natural-gas liquids sales              411        261        797        564 
Gathering, processing, and                                                  
 marketing sales                       278        249        589        480 
Gains (losses) on divestitures                                              
 and other, net                         54         57      1,560        232 
                                 ---------  ---------  ---------  --------- 
Total                                4,439      3,497     10,283      7,390 
                                 ---------  ---------  ---------  --------- 
Costs and Expenses                                                          
                                 ---------  ---------  ---------  --------- 
Oil and gas operating                  273        245        586        492 
Oil and gas transportation and                                              
 other                                 281        253        547        508 
Exploration                            502        178        801        442 
Gathering, processing, and                                                  
 marketing                             250        222        502        421 
General and administrative             305        260        603        532 
Depreciation, depletion, and                                                
 amortization                        1,048        940      2,172      1,962 
Other taxes                            361        245        675        525 
Impairments                            117         10        120         39 
Algeria exceptional profits tax                                             
 settlement                             --         --         --         33 
Deepwater Horizon settlement and                                            
 related costs                          93          4         93          7 
                                 ---------  ---------  ---------  --------- 
Total                                3,230      2,357      6,099      4,961 
                                 ---------  ---------  ---------  --------- 
Operating Income (Loss)              1,209      1,140      4,184      2,429 
                                 ---------  ---------  ---------  --------- 
Other (Income) Expense                                                      
                                 ---------  ---------  ---------  --------- 
Interest expense                       186        172        369        336 
(Gains) losses on derivatives,                                              
 net                                   323       (656)       776       (465)
Other (income) expense, net            (13)        98        (12)        92 
Tronox-related contingent loss          19         --      4,319         -- 
                                 ---------  ---------  ---------  --------- 
Total                                  515       (386)     5,452        (37)
                                 ---------  ---------  ---------  --------- 
Income (Loss) Before Income                                                 
 Taxes                                 694      1,526     (1,268)     2,466 
                                 ---------  ---------  ---------  --------- 
Income tax expense (benefit)           428        567      1,092      1,023 
                                 ---------  ---------  ---------  --------- 
Net Income (Loss)                      266        959     (2,360)     1,443 
                                 ---------  ---------  ---------  --------- 
Net income (loss) attributable                                              
 to noncontrolling interests            39         30         82         54 
                                 ---------  ---------  ---------  --------- 
Net Income (Loss) Attributable                                              
 to Common Stockholders          $     227  $     929  $  (2,442) $   1,389 
                                 ---------  ---------  ---------  --------- 
Per Common Share                                                            
                                 ---------  ---------  ---------  --------- 
Net income (loss) attributable                                              
 to common stockholders--basic   $    0.45  $    1.84  $   (4.84) $    2.75 
Net income (loss) attributable                                              
 to common stockholders--diluted $    0.45  $    1.83  $   (4.84) $    2.74 
                                 ---------  ---------  ---------  --------- 
Average Number of Common Shares                                             
 Outstanding--Basic                    505        502        505        501 
                                 ---------  ---------  ---------  --------- 
Average Number of Common Shares                                             
 Outstanding--Diluted                  507        504        505        504 
                                 ---------  ---------  ---------  --------- 
                                                                            
                                 ---------  ---------  ---------  --------- 
Exploration Expense                                                         
                                 ---------  ---------  ---------  --------- 
Dry hole expense                 $     302  $      66  $     423  $     224 
Impairments of unproved                                                     
 properties                            109         20        186         39 
Geological and geophysical                                                  
 expense                                37         23         80         60 
Exploration overhead and other          54         69        112        119 
                                 ---------  ---------  ---------  --------- 
Total                            $     502  $     178  $     801  $     442 
                                 ---------  ---------  ---------  --------- 
                                                                            
                                                                            
                                                                            
                       Anadarko Petroleum Corporation                       
                                (Unaudited)                                 
                                                                            
                                     Quarter Ended       Six Months Ended   
Summary Financial Information          June 30,              June 30,       
                                 --------------------  -------------------- 
millions                            2014       2013       2014       2013   
                                 ---------  ---------  ---------  --------- 
Cash Flows from Operating                                                   
 Activities                                                                 
                                 ---------  ---------  ---------  --------- 
Net income (loss)                $     266  $     959  $  (2,360) $   1,443 
Adjustments to reconcile net                                                
 income (loss) to net cash                                                  
 provided by operating                                                      
 activities                                                                 
  Depreciation, dep
letion, and                                              
   amortization                      1,048        940      2,172      1,962 
  Deferred income taxes                142        401        188        563 
  Dry hole expense and                                                      
   impairments of unproved                                                  
   properties                          411         86        609        263 
  Impairments                          117         10        120         39 
  (Gains) losses on                                                         
   divestitures, net                    (9)       (13)    (1,468)      (157)
  Total (gains) losses on                                                   
   derivatives, net                    325       (659)       786       (460)
  Operating portion of net cash                                             
   received (paid) in settlement                                            
   of derivative instruments           (88)        18       (186)        65 
  Other                                 54         77        108        121 
  Changes in assets and                                                     
   liabilities                                                              
    Deepwater Horizon settlement                                            
     and related costs                  92          1         92          1 
    Algeria exceptional profits                                             
     tax settlement                     --        248         --        698 
    Tronox-related contingent                                               
     loss                               19         --      4,319         -- 
    (Increase) decrease in                                                  
     accounts receivable                83        217       (183)       257 
    Increase (decrease) in                                                  
     accounts payable and                                                   
     accrued expenses                   84        346         21        221 
    Other items--net                   (82)      (129)       (27)       (11)
                                 ---------  ---------  ---------  --------- 
Net Cash Provided by Operating                                              
 Activities                      $   2,462  $   2,502  $   4,191  $   5,005 
                                 ---------  ---------  ---------  --------- 
                                                                            
                                 ---------  ---------  ---------  --------- 
Capital Expenditures             $   2,402  $   1,866  $   4,970  $   3,613 
                                 ---------  ---------  ---------  --------- 
                                                                            
                                                                            

 
                                                                            
                                                  June 30,     December 31, 
millions                                            2014           2013     
                                               -------------  ------------- 
Condensed Balance Sheets                                                    
                                               -------------  ------------- 
Cash and cash equivalents                      $       5,365  $       3,698 
Accounts receivable, net of allowance                  3,079          2,722 
Other current assets                                     536            688 
Net properties and equipment                          41,487         40,929 
Other assets                                           2,352          2,082 
Goodwill and other intangible assets                   5,595          5,662 
                                               -------------  ------------- 
Total Assets                                   $      58,414  $      55,781 
                                               -------------  ------------- 
Other current liabilities                      $       5,499  $       5,703 
Deepwater Horizon settlement and related costs            92             -- 
Tronox-related contingent liability                    5,169             -- 
Long-term debt                                        13,414         13,065 
Deferred income taxes                                  9,186          9,245 
Other long-term liabilities                            3,882          4,118 
Stockholders' equity                                  19,331         21,857 
Noncontrolling interests                               1,841          1,793 
                                               -------------  ------------- 
Total Liabilities and Equity                   $      58,414  $      55,781 
                                               -------------  ------------- 
Capitalization                                                              
                                               -------------  ------------- 
Total debt                                     $      13,414  $      13,565 
Stockholders' equity                                  19,331         21,857 
                                               -------------  ------------- 
Total                                          $      32,745  $      35,422 
                                               -------------  ------------- 
                                                                            
                                               -------------  ------------- 
Capitalization Ratios                                                       
                                               -------------  ------------- 
Total debt                                                41%            38%
Stockholders' equity                                      59%            59%
                                               -------------  ------------- 
                                                                            
                                                                            
                      
                                  Anadarko Petroleum Corporation     
                                          (Unaudited)      
                                                                            
Sales Volumes and                                                           
 Prices                                                                     
                           Average Daily Sales                              
                                 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 June 30,                                                      
 2014                                                                       
United States            2,620        196     119     238         18      11
Algeria                     --         72       1      --          7      --
Other International         --         23      --      --          2      --
                       ------- ---------- ------- ------- ---------- -------
Total                    2,620        291     120     238         27      11
                       ------- ---------- ------- ------- ---------- -------
                                                                            
Quarter Ended June 30,                                                      
 2013                                                                       
United St
ates            2,647        155      83     241         14       7
Algeria                     --         43      --      --          4      --
Other International         --         28      --      --          3      --
                       ------- ---------- ------- ------- ---------- -------
Total                    2,647        226      83     241         21       7
                       ------- ---------- ------- ------- ---------- -------
                                                                            
Six Months Ended June                                                       
 30, 2014                                                                   
United States            2,658        189     109     481         34      20
Algeria                     --         65       1      --         12      --
Other International         --         27      --      --          5      --
                       ------- ---------- ------- ------- ---------- -------
Total                    2,658        281     110     481         51      20
                       ------- ---------- ------- ------- ---------- -------
                                                                            
Six Months Ended June                                                       
 30, 2013                                                                   
United States            2,668        157      85     483         28      15
Algeria                     --         48      --      --          9      --
Other International         --         36      --      --          7      --
                       ------- ---------- ------- ------- ---------- -------
Total                    2,668        241      85     483         44      15
                       ------- ---------- ------- ------- ---------- -------
                                                                            
                                                                            
 
                                                    
Sales Volumes and                                   
 Prices                                             
                            Average Sales Price     
                       -----------------------------
                                                    
                        Natural Crude Oil &         
                          Gas    Condensate   NGLs  
                        Per Mcf   Per Bbl    Per Bbl
                       -------- ----------- --------
Quarter Ended June 30,                              
 2014                                               
United States          $   4.16 $     98.69 $  37.39
Algeria                      --      108.64    66.69
Other International          --      110.16       --
                       -------- ----------- --------
Total                  $   4.16 $    102.04 $  37.66
                       -------- ----------- --------
                                                    
Quarter Ended June 30,                              
 2013                                               
United States          $   3.88 $     94.99 $  34.33
Algeria                      --      102.18       --
Other International          --      101.84       --
                       -------- ----------- --------
Total                  $   3.88 $     97.21 $  34.33
                       -------- ----------- --------
                                                    
Six Months Ended June                               
 30, 2014                                           
United States          $   4.59 $     96.86 $  40.08
Algeria                      --      108.60    66.69
Other International          --      109.00       --
                       -------- ----------- --------
Total                  $   4.59 $    100.76 $  40.22
                       -------- ----------- --------
                                                    
Six Months Ended June                               
 30, 2013                                           
United States          $   3.61 $     96.17 $  36.29
Algeria                      --      108.06       --
Other International          --      107.66       --
                       -------- ----------- --------
Total                  $   3.61 $    100.26 $  36.29
                       -------- ----------- --------
                                                    
                                                    
                                                                            
                                 Average Daily Volumes     Sales Volumes    
                                         MBOE/d                MMBOE        
Quarter Ended June 30, 2014               848                    77         
Quarter Ended June 30, 2013               750                    69         
                                                                            
Six Months Ended June 30, 2014            834                   151         
Six Months Ended June 30, 2013            771                   140         
                                                                            
                                                                            
                                                                            
Sales Revenue and Commodity Derivatives                                     
                                                  Net Cash Received (Paid)  
                                                from Settlement of Commodity
                                Sales                    Derivatives        
                     -------------------------- ----------------------------
                                                                            
                     Natural Crude Oil &        Natural  Crude Oil &        
millions               Gas    Condensate  NGLs    Gas     Condensate   NGLs 
                     ------- ----------- ------ -------  -----------  ------
Quarter Ended June                                                          
 30, 2014                                                                   
United States        $   991 $     1,768 $  404 $   (41) $       (44) $    2
Algeria                   --         711      7      --           (5)     --
Other International       --         226     --      --           --      --
                     ------- ----------- ------ -------  -----------  ------
Total                $   991 $     2,705 $  411 $   (41) $       (49) $    2
                     ------- ----------- ------ -------  -----------  ------
                                                                            
Quarter Ended June                                                          
 30, 2013                                                                   
United States        $   935 $     1,336 $  261 $   (16) $         1  $    3
Algeria                   --         400     --      --           33      --
Other International       --         259     --      --           --      --
                     ------- ----------- ------ -------  -----------  ------
Total                $   935 $     1,995 $  261 $   (16) $        34  $    3
                     ------- ----------- ------ -------  -----------  ------
                                                                            
Six Months Ended                                                            
 June 30, 2014                                                              
United States        $ 2,208 $     3,308 $  790 $  (122) $       (60) $    2
Algeria                   --       1,293      7      --           --      --
Other International       --         528     --      --           --      --
                     ------- ----------- ------ -------  -----------  ------
Total                $ 2,208 $     5,129 $  797 $  (122) $       (60) $    2
                     ------- ----------- ------ -------  -----------  ------
                                             
                               
Six Months Ended                                                            
 June 30, 2013                                                              
United States        $ 1,742 $     2,729 $  564 $    51  $         2  $    5
Algeria                   --         937     --      --           14      --
Other International       --         706     --      --           --      --
                     ------- ----------- ------ -------  -----------  ------
Total                $ 1,742 $     4,372 $  564 $    51  $        16  $    5
                     ------- ----------- ------ -------  -----------  ------
                                                                            
                                                                            
                                                                            
                       Anadarko Petroleum Corporation                       
                 Financial and Operating External Guida
nce                  
                            As of July 29, 2014                             
                                                                            
                                            3rd Qtr           Total Year    
                                           Guidance *         Guidance *    
                                       -----------------  ----------------- 
                                                                            
                                             Units              Units       
                                       -----------------  ----------------- 
                                                                            
Total Sales Volumes (MMBOE)               76    --    78    299    --   302 
Total Sales Volumes (MBOE/d)             826    --   848    819    --   827 
                                                                            
Crude Oil (MBbl/d)                       304    --   311    283    --   286 
                                                                            
  United States                          203    --   208    195    --   199 
  Algeria                                 72    --    73     68    --    70 
  Ghana                                   29    --    30     19    --    20 
                                                                            
Natural Gas (MMcf/d)                                                        
                                                                            
  United States                        2,425    -- 2,475  2,530    -- 2,560 
                                                                            
Natural Gas Liquids (MBbl/d)                                                
                                                                            
  United States                          110    --   120    112    --   115 
  Algeria                                  2    --     3      1    --     2 
                                                                            
                                       -------------------------------------
                                                                            
                                            $ / Unit           $ / Unit     
                                       -----------------  ----------------- 
Price Differentials vs NYMEX (w/o                                           
 hedges)                                                                    
                                                                            
Crude Oil ($/Bbl)                      (2.00)   --  2.00  (2.00)   --  2.00 
                                                                            
  United States                        (6.00)   -- (1.00) (6.00)   -- (1.00)
  Algeria                               5.00    -- 10.00   5.00    -- 10.00 
  Ghana                                 3.00    --  8.00   4.00    --  9.00 
                                                                            
Natural Gas ($/Mcf)                                                         
                                                                            
  United States                        (0.50)   -- (0.25) (0.35)   -- (0.25)
                                                                            
* All volumes exclude the impact from                                       
 China and Pinedale/Jonah.                                                  
                                       -------------------------------------
                                                                            
                                                                            
                                                                            
                       Anadarko Petroleum Corporation                       
                 Financial and Operating External Guidance                  
                            As of July 29, 2014                             
                                                                            
                                            3rd Qtr           Total Year    
                                           Guidance *         Guidance *    
                                       -----------------  ----------------- 
                                                                            
                                              $ MM               $ MM       
                                       -----------------  ----------------- 
Other Revenues                                                              
  Marketing and Gathering Margin          50    --    70    230    --   250 
  Minerals and Other                      45    --    55    190    --   210 
                                                                            
                                       -----  ---- -----  -----  ---- ----- 
                                                                            
                                            $ / BOE            $ / BOE      
                                       -----------------  ----------------- 
Costs and Expenses                                                          
  Oil & Gas Direct Operating            3.80    --  4.00   3.80    --  4.00 
  Oil & Gas Transportation/Other        3.85    --  4.05   3.80    --  3.90 
  Depreciation, Depletion, and                                              
   Amortization                        14.00    -- 14.50  14.00    -- 14.50 
  Production Taxes (% of Product                                            
   Revenue)                              9.0%   --   9.5%   8.5%   --   9.0%
                                                                            
                                              $ MM               $ MM       
                                       -----------------  ----------------- 
                                     
                                       
  General and Administrative             350    --   370  1,200    -- 1,300 
  Exploration Expense                                                       
    Non-Cash                             150    --   200    850    --   950 
    Cash                                 105    --   115    400    --   450 
  Interest Expense (net)                 195    --   205    760    --   770 
  Other (Income) Expense - Includes                                         
   Noncontrolling Interests               60    --    70    175    --   195 
                                                                            
Tax Rate                                                                    
  Algeria (All current)                   45%   --    55%    45%   --    55%
  Rest of Company (50% Current for Q3                                       
   and 10% for FY)                        40%   --    50%    35%   --    45%
                                                                            
                                       -----  ---- -----  -----  ---- ----- 
                                                                            
Avg. Shares Outstanding (MM)                                                
  Basic                                  505    --   506    504    --   505 
  Diluted                                507    --   508    507    --   508 
                                                                            
                                       -----  ---- -----  -----  ---- ----- 
                                                                            
Capital Investment (Excluding Western                                       
 Gas Partners, LP)                            $ MM               $ MM       
                                       -----------------  ----------------- 
                                                                            
  APC Capital Expenditures             2,100    -- 2,300  8,600    -- 8,800 
                                                                            
* Excludes items affecting                                                  
 comparability                                                              
                                                                            
                                                                            
                                                                            
                       Anadarko Petroleum Corporation                       
           Commodity Hedge Positions (Excluding Natural Gas Basis)          
                             As of July 29, 2014                            
                                                                            
                                                 Weighted Average Price per 
                                                           Barrel           
                                               -----------------------------
                                       Volume    Floor     Floor    Ceiling 
                                     (MBbls/d)    Sold   Purchased    Sold  
                                     --------- --------- --------- ---------
Crude Oil                                                                   
  Three-Way Collars                                                         
  2015                                                                      
    Brent                                   25 $   85.00 $  100.00 $  117.55
                                                                            
Fixed Price - Financial                                                     
2014                                                                        
    WTI                                     70 $   96.03                    
    Brent                                   70 $  109.55                    
                                     --------- ---------                    
                                           140 $  101.94                    
                                                                            
                                                 Weighted Average Price per 
                                       Volume              MMBtu            
                                               -----------------------------
                                                                            
                                     (thousand   Floor     Floor    Ceiling 
                                      MMBtu/d)    Sold   Purchased    Sold  
                                                                            
                                                                            
Natural Gas                                                                 
  Three-Way Collars                                                         
  2014                                     600 $    2.75 $    3.75 $    5.01
  2015                                     635 $    2.75 $    3.75 $    4.76
                                                                            
Fixed Price - Financial                                                     
  2014                                   1,000 $    4.23                    
                                                                            
                                                                            
                                                                            
                          Interest-Rate Derivatives                         
                             As of July 29, 2014                            
                                                                            
Instrument   Notional Amt.  Start Date   Maturity   Rate Paid  Rate Received
----------  --------------  ----------  ----------  ---------  -------------
   Swap       $50 Million   Sept. 2016  Sept. 2026    5.91%       3M LIBOR  
   Swap     $1,850 Million  Sept. 2016  Sept. 2046    6.05%       3M LIBOR  
                                                                            
                                                                            

 
                                                                            
                       Anadarko Petroleum Corporation                       
                     Reconciliation of Same-Store Sales                     
                                                                            
Average Daily Sales Volumes                                                 
                                                                            
                                              Quarter Ended June 30, 2014   
                                          ----------------------------------
                                                   Crude Oil                
                                          Natural      &                    
                                            Gas   Condensate   NGLs   Total 
                                           MMcf/d   MBbls/d  MBbls/d  MBOE/d
                                                                            
                                                                            
                                                                            
U.S. Onshore                                2,444        146     113     667
Deepwater Gulf of Mexico                      176         41       6      76
International and Alaska                       --        101       1     102
                                          ------- ---------- ------- -------
Same-Store Sales                            2,620        288     120     845
                                          ------- ---------- ------- -------
China and Pinedale/Jonah                       --          3      --       3
                                          ------- ---------- ------- -------
Total                                       2,620        291     120     848
                                          ------- ---------- ------- -------
                                                                            
                                                                            
 
                                                                            
                                              Quarter Ended June 30, 2013   
                                          ----------------------------------
                                                   Crude Oil                
                                          Natural      &                    
                                            Gas   Condensate   NGLs   Total 
                                           MMcf/d   MBbls/d  MBbls/d  MBOE/d
                                                                            
                                                                            
                                   
                                         
U.S. Onshore                                2,279         96      74     550
Deepwater Gulf of Mexico                      280         46       6      98
International and Alaska                       --         74      --      74
                                          ------- ---------- ------- -------
Same-Store Sales                            2,559        216      80     722
                                          ------- ---------- ------- -------
China and Pinedale/Jonah                       88         10       3      28
                                          ------- ---------- ------- -------
Total                                       2,647        226      83     750
                                          ------- ---------- ------- -------

  
ANADARKO CONTACTS  
MEDIA:
John Christiansen
john.christiansen@anadarko.com
832.636.8736 
Stephanie Moreland
stephanie.moreland@anadarko.com
832.636.2912 
Christina Ramirez
christina.ramirez@anadarko.com
832.636.8687 
INVESTORS:
John Colglazier
john.colglazier@anadarko.com
832.636.2306 
Robin Fielder
robin.fielder@anadarko.com
832.636.1462 
Jeremy Smith
jeremy.smith@anadarko.com
832.636.1544  
 
 
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