SYS-CON MEDIA Authors: Doug Masi, Mat Mathews, PR.com Newswire, David Smith, Tim Crawford

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Anadarko Announces First-Quarter 2014 Results

Increases Midpoint of 2014 Sales-Volume Guidance by 3.5 Million BOE

HOUSTON, TX -- (Marketwired) -- 05/05/14 -- Anadarko Petroleum Corporation (NYSE: APC) today announced its financial and operating results for the first quarter of 2014, including a first-quarter net loss attributable to common stockholders of $2.669 billion, or $5.30 per share (diluted). The net loss includes certain items typically excluded by the investment community in published estimates, which in aggregate decreased net income by $3.308 billion or $6.56 per share (diluted) on an after-tax basis,(1) including both a contingent loss of $4.018 billion associated with the Tronox Adversary Proceeding settlement agreement and a $946 million gain associated with the sale of a portion of Anadarko's interest in Offshore Area 1 in Mozambique. Cash flow from operating activities in the first quarter of 2014 was $1.729 billion, and discretionary cash flow totaled $2.523 billion.(2)

FIRST-QUARTER 2014 HIGHLIGHTS

  • Delivered record daily sales volumes of 819,000 barrels of oil equivalent (BOE) per day, highlighted by a same-store-sales increase of approximately 69,000 BOE per day (12 percent) from the U.S. onshore relative to the first quarter of 2013(3)
  • Achieved startup of the Lancaster cryogenic plant and Front Range pipeline, facilitating continued growth of Anadarko's Wattenberg field in Colorado
  • Announced a $1.075 billion China divestiture and closed both the $2.64 billion sale of a portion of its interest in Mozambique's Offshore Area 1 and the $581 million Pinedale/Jonah divestiture
  • Installed the topsides, umbilicals and export pipelines at the Lucius spar in the Gulf of Mexico

"Our operating performance during the first quarter was outstanding, delivering record sales volumes that were above the high end of the guidance," said Al Walker, Anadarko Chairman, President and CEO. "Our people and portfolio continue to demonstrate the ability to deliver sustained growth and, with the uncertainty associated with the Tronox litigation largely behind us, we have the confidence and flexibility to further accelerate growth. We are raising the midpoint of our full-year sales-volume guidance by 3.5 million BOE, with only a modest increase in our capital program. We also continue to actively manage our portfolio and evaluate other means to drive shareholder value."

OPERATIONS SUMMARY
During the first quarter, Anadarko's U.S. oil sales volumes were approximately 10,000 barrels per day above the midpoint of guidance, primarily driven by growth in the Wattenberg field, Eagleford Shale and Delaware Basin. Anadarko's first-quarter 2014 sales volumes of natural gas, crude oil and natural gas liquids (NGLs) totaled 74 million BOE, or an average of 819,000 BOE per day, including 17,000 BOE per day associated with the announced or closed divestitures of the company's interests in China's Bohai Bay and Wyoming's Pinedale/Jonah area.

The Wattenberg field achieved a 19,000-barrels-per-day increase in liquids volumes over the first quarter of 2013, representing a 30-percent year-over-year increase. The Eagleford Shale also contributed to the first-quarter growth with a 46-percent year-over-year increase in liquids sales volumes, more than half of which was oil. The Delaware Basin, which includes the company's increased activity in the Wolfcamp Shale, provided a 6,000-barrels-per-day increase in liquids sales volumes.

Anadarko also continued to advance its deepwater mega projects in the Gulf of Mexico, as it successfully installed the topsides at the Lucius spar and has nearly completed construction on the hull of the Heidelberg spar. Both projects remain on schedule and on budget with first oil anticipated in the second half of 2014 and in 2016, respectively.

In Mozambique, successful appraisal drilling activities in the Orca field increased the total estimated recoverable resources in Anadarko's Offshore Area 1 to a range of 50 to 70-plus trillion cubic feet of natural gas. In addition, Anadarko continued to advance the Mozambique LNG project by adding incremental non-binding LNG off-take agreements.

OPERATIONS REPORT
For details on Anadarko's operations and exploration program, including detailed tables illustrating same-store sales information, please refer to the comprehensive report on first-quarter 2014 activity. The report is available at www.anadarko.com.

FINANCIAL SUMMARY
Subsequent to quarter end, Anadarko announced a $5.15 billion settlement agreement in the Tronox Adversary Proceeding, representing a principal sum of approximately $3.98 billion plus interest. The settlement agreement is subject to recommendation by the Bankruptcy Court, approval by the District Court, and the issuance of an injunction barring similar claims from being asserted by third parties.

"During the quarter, we generated more than $2.5 billion of discretionary cash flow, closed the Mozambique and Pinedale/Jonah transactions and ended the quarter in a very strong financial position with approximately $6 billion of cash on hand, plus access to our $5 billion revolving credit facility," said Anadarko Executive Vice President, Finance and CFO, Bob Gwin. "The strength of our balance sheet, high-margin cash-generating capability and proceeds from asset monetizations provide the capability to fund the Tronox settlement, along with the flexibility to expand our robust 2014 capital program and support additional methods to enhance value."

CONFERENCE CALL TOMORROW AT 8 A.M. CDT, 9 A.M. EDT
Anadarko will host a conference call on Tuesday, May 6, 2014, at 8 a.m. Central Daylight Time (9 a.m. Eastern Daylight Time) to discuss first-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 23315867. 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 consummate the transaction described in this news release, achieve its production targets, successfully manage its capital expenditures, achieve production and budget expectations on its mega projects, and to successfully plan, secure necessary government approvals, finance, build and operate the necessary infrastructure and LNG park. 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.

Cautionary Note to Investors: The United States Securities and Exchange Commission ("SEC") permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC's definitions for such terms. Anadarko uses certain terms in this news release, such as "recoverable resources" and similar terms that the SEC's guidelines strictly prohibit Anadarko from including in filings with the SEC. Investors are urged to consider closely the disclosure in Anadarko's Form 10-K for the year ended Dec. 31, 2013, File No. 001-08968, available from Anadarko at www.anadarko.com or by writing Anadarko at: Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The Woodlands, Texas 77380, Attn: Investor Relations. This form may also be obtained by contacting the SEC at 1-800-SEC-0330.


                       Anadarko Petroleum Corporation
                   Certain Items Affecting Comparability

                                              Quarter Ended March 31, 2014
                                            -------------------------------
                                              Before     After    Per Share
millions except per-share amounts              Tax        Tax     (diluted)
                                            ---------  ---------  ---------
Total gains (losses) on derivatives, net,
 less net cash from settlements*            $    (363) $    (230) $   (0.46)
Gains (losses) on divestitures, net             1,459        942       1.87
Impairments                                        (3)        (2)        --
Tronox-related contingent loss                 (4,300)    (4,018)     (7.97)
                                            ---------  ---------  ---------
                                            $  (3,207) $  (3,308) $   (6.56)
                                            ---------  ---------  ---------

*  For the quarter ended March 31, 2014, this includes $(123) million
   related to commodity derivatives, $(238) million related to other
   derivatives, and $(2) million related to gathering, processing, and
   marketing sales.



                                              Quarter Ended March 31, 2013
                                            -------------------------------
                                              Before     After    Per Share
millions except per-share amounts              Tax        Tax     (diluted)
                                            ---------  ---------  ---------
Total gains (losses) on derivatives, net,
 less net cash from settlements*            $    (246) $    (156) $   (0.31)
Gains (losses) on divestitures, net               144         90       0.18
Impairments                                       (29)       (19)     (0.04)
Algeria exceptional profits tax settlement        (33)        --         --
                                            ---------  ---------  ---------
                                            $    (164) $     (85) $   (0.17)
                                            ---------  ---------  ---------

*  For the quarter ended March 31, 2013, this includes $(334) million
   related to commodity derivatives, $92 million related to other
   derivatives, and $(4) million related to gathering, processing, and
   marketing sales.

Reconciliation of GAAP to Non-GAAP Measures

Below are reconciliations of cash provided by operating activities (GAAP) to discretionary cash flow from operations (non-GAAP), free cash flow (non-GAAP), 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
                                                            March 31,
                                                     ----------------------
millions                                                2014        2013
                                                     ----------  ----------
Net cash provided by operating activities            $    1,729  $    2,503
Add back
  Algeria exceptional profits tax settlement                 --        (450)
  Change in accounts receivable                             266         (40)
  Change in accounts payable and accrued expenses            63         158
  Change in other items--net                                (55)       (118)
  Current taxes related to Mozambique monetization          520          --
                                                     ----------  ----------
Discretionary cash flow from operations              $    2,523  $    2,053
                                                     ----------  ----------



                       Anadarko Petroleum Corporation
                 Reconciliation of GAAP to Non-GAAP Measures

                                                          Quarter Ended
                                                            March 31,
                                                     -----------------------
millions                                                2014         2013
                                                     ----------  -----------
Discretionary cash flow from operations              $    2,523  $     2,053
Less capital expenditures*                                2,568        1,747
                                                     ----------  -----------
Free cash flow                                       $      (45) $       306
                                                     ----------  -----------

*  Includes Western Gas Partners, LP (WES) capital expenditures of $170
   million for the three months ended March 31, 2014, and $299 million for
   the three months ended March 31, 2013.



                                     Quarter Ended         Quarter Ended
                                    March 31, 2014        March 31, 2013
                                 --------------------  --------------------
millions except per-share                   Per Share             Per Share
 amounts                         After Tax  (diluted)  After Tax  (diluted)
                                 ---------  ---------  ---------  ---------
Net income (loss) attributable
 to common stockholders          $  (2,669) $   (5.30) $     460  $    0.91
Certain items affecting
 comparability                      (3,308)     (6.56)       (85)     (0.17)
                                 ---------  ---------  ---------  ---------
Adjusted net income (loss)       $     639  $    1.26  $     545  $    1.08
                                 ---------  ---------  ---------  ---------


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.

                                                                  March 31,
millions                                                            2014
                                                                 ----------
Total debt                                                       $   13,569
Less cash and cash equivalents                                        5,924
                                                                 ----------
Net debt                                                         $    7,645
                                                                 ----------

Net debt                                                         $    7,645
Stockholders' equity                                                 19,120
                                                                 ----------
Adjusted capitalization                                          $   26,765
                                                                 ----------

                                                                 ----------
Net debt to adjusted capitalization ratio                                29%
                                                                 ----------



                       Anadarko Petroleum Corporation
                                (Unaudited)

                                                          Quarter Ended
Summary Financial Information                               March 31,
                                                     ----------------------
millions except per-share amounts                       2014        2013
                                                     ----------  ----------
Consolidated Statements of Income
                                                     ----------  ----------
Revenues and Other
                                                     ----------  ----------
Natural-gas sales                                    $    1,217  $      807
Oil and condensate sales                                  2,424       2,377
Natural-gas liquids sales                                   386         303
Gathering, processing, and marketing sales                  311         231
Gains (losses) on divestitures and other, net             1,506         175
                                                     ----------  ----------
Total                                                     5,844       3,893
                                                     ----------  ----------
Costs and Expenses
                                                     ----------  ----------
Oil and gas operating                                       313         247
Oil and gas transportation and other                        266         255
Exploration                                                 299         264
Gathering, processing, and marketing                        252         199
General and administrative                                  298         275
Depreciation, depletion, and amortization                 1,124       1,022
Other taxes                                                 314         280
Impairments                                                   3          29
Algeria exceptional profits tax settlement                   --          33
                                                     ----------  ----------
Total                                                     2,869       2,604
                                                     ----------  ----------
Operating Income (Loss)                                   2,975       1,289
                                                     ----------  ----------
Other (Income) Expense
                                                     ----------  ----------
Interest expense                                            183         164
(Gains) losses on derivatives, net                          453         191
Other (income) expense, net                                   1          (6)
Tronox-related contingent loss                            4,300          --
                                                     ----------  ----------
Total                                                     4,937         349
                                                     ----------  ----------
Income (Loss) Before Income Taxes                        (1,962)        940
                                                     ----------  ----------
Income tax expense (benefit)                                664         456
                                                     ----------  ----------
Net Income (Loss)                                        (2,626)        484
                                                     ----------  ----------
Net income (loss) attributable to noncontrolling
 interests                                                   43          24
                                                     ----------  ----------
Net Income (Loss) Attributable to Common
 Stockholders                                        $   (2,669) $      460
                                                     ----------  ----------
Per Common Share
                                                     ----------  ----------
Net income (loss) attributable to common
 stockholders--basic                                 $    (5.30) $     0.91
Net income (loss) attributable to common
 stockholders--diluted                               $    (5.30) $     0.91
                                                     ----------  ----------
Average Number of Common Shares Outstanding--Basic          504         501
                                                     ----------  ----------
Average Number of Common Shares Outstanding--Diluted        504         503
                                                     ----------  ----------

                                                     ----------  ----------
Exploration Expense
                                                     ----------  ----------
Dry hole expense                                     $      121  $      158
Impairments of unproved properties                           77          19
Geological and geophysical expense                           43          37
Exploration overhead and other                               58          50
                                                     ----------  ----------
Total                                                $      299  $      264
                                                     ----------  ----------



                       Anadarko Petroleum Corporation
                                (Unaudited)

                                                        Quarter Ended
Summary Financial Information                             March 31,
                                                 --------------------------
millions                                             2014          2013
                                                 ------------  ------------
Cash Flows from Operating Activities
                                                 ------------  ------------
Net income (loss)                                $     (2,626) $        484
Depreciation, depletion, and amortization               1,124         1,022
Deferred income taxes                                      46           162
Dry hole expense and impairments of unproved
 properties                                               198           177
Impairments                                                 3            29
(Gains) losses on divestitures, net                    (1,459)         (144)
Total (gains) losses on derivatives, net                  461           199
Net cash from settlement of derivative
 instruments                                              (98)           47
Tronox-related contingent loss                          4,300            --
Other                                                      54            77
Algeria exceptional profits tax settlement                 --           450
(Increase) decrease in accounts receivable               (266)           40
Increase (decrease) in accounts payable and
 accrued expenses                                         (63)         (158)
Other items--net                                           55           118
                                                 ------------  ------------
Net Cash Provided by Operating Activities        $      1,729  $      2,503
                                                 ------------  ------------

                                                 ------------  ------------
Capital Expenditures                             $      2,568  $      1,747
                                                 ------------  ------------


                                                   March 31,   December 31,
millions                                             2014          2013
                                                 ------------  ------------
Condensed Balance Sheets
                                                 ------------  ------------
Cash and cash equivalents                        $      5,924  $      3,698
Accounts receivable, net of allowance                   3,049         2,722
Other current assets                                      691           688
Net properties and equipment                           40,564        40,929
Other assets                                            2,278         2,082
Goodwill and other intangible assets                    5,597         5,662
                                                 ------------  ------------
Total Assets                                     $     58,103  $     55,781
                                                 ------------  ------------
Other current liabilities                        $      5,779  $      5,703
Tronox-related contingent liability                     5,150            --
Long-term debt                                         13,569        13,065
Deferred income taxes                                   9,343         9,245
Other long-term liabilities                             3,345         4,118
Stockholders' equity                                   19,120        21,857
Noncontrolling interests                                1,797         1,793
                                                 ------------  ------------
Total Liabilities and Equity                     $     58,103  $     55,781
                                                 ------------  ------------
Capitalization
                                                 ------------  ------------
Total debt                                       $     13,569  $     13,565
Stockholders' equity                                   19,120        21,857
                                                 ------------  ------------
Total                                            $     32,689  $     35,422
                                                 ------------  ------------

                                                 ------------  ------------
Capitalization Ratios
                                                 ------------  ------------
Total debt                                                 42%           38%
Stockholders' equity                                       58%           62%
                                                 ------------  ------------



                       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 March
 31, 2014
United States           2,697        180      99     243         16       9
Algeria                    --         60      --      --          5      --
Other International        --         30      --      --          3      --
                      ------- ---------- ------- ------- ---------- -------
Total                   2,697        270      99     243         24       9
                      ------- ---------- ------- ------- ---------- -------

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
                      ------- ---------- ------- ------- ---------- -------

                      ------------------------------------------------------



Sales Volumes and
 Prices
                         Average Sales Price
                     --------------------------
                              Crude Oil
                     Natural      &
                       Gas   Condensate   NGLs
                     Per Mcf   Per Bbl  Per Bbl
                     ------- ---------- -------
Quarter Ended March
 31, 2014
United States        $  5.01 $    94.84 $ 43.35
Algeria                   --     108.55      --
Other International       --     108.14      --
                     ------- ---------- -------
Total                $  5.01 $    99.37 $ 43.35
                     ------- ---------- -------

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
                     ------- ---------- -------

                     --------------------------

                                                 Average Daily
                                                    Volumes    Sales Volumes
                                                     MBOE/d        MMBOE
                                                 ------------- -------------
Quarter Ended March 31, 2014                          819            74
Quarter Ended March 31, 2013                          793            71


Sales Revenue and Commodity Derivatives
                                                   Net Cash Received (Paid)
                                                      from Settlement of
                                   Sales             Commodity Derivatives
                         ------------------------ --------------------------
                                  Crude Oil                 Crude Oil
                         Natural      &           Natural       &
millions                   Gas   Condensate  NGLs   Gas    Condensate   NGLs
                         ------- ---------- ----- -------  ----------  -----
Quarter Ended March 31,
 2014
United States            $ 1,217 $    1,540 $ 386 $   (81) $      (16) $  --
Algeria                       --        582    --      --           5     --
Other International           --        302    --      --          --     --
                         ------- ---------- ----- -------  ----------  -----
Total                    $ 1,217 $    2,424 $ 386 $   (81) $      (11) $  --
                         ------- ---------- ----- -------  ----------  -----

Quarter Ended March 31,
 2013
United States            $   807 $    1,393 $ 303 $    67  $        1  $   2
Algeria                       --        537    --      --         (19)    --
Other International           --        447    --      --          --     --
                         ------- ---------- ----- -------  ----------  -----
Total                    $   807 $    2,377 $ 303 $    67  $      (18) $   2
                         ------- ---------- ----- -------  ----------  -----



                       Anadarko Petroleum Corporation
                 Financial and Operating External Guidance
                             As of May 5, 2014

                                              2nd Qtr          Full Year
                                            Guidance *        Guidance *
                                         ----------------  ----------------

                                               Units             Units
                                         ----------------  ----------------

Total Sales Volumes (MMBOE)                 72   --    74    293   --   298
Total Sales Volumes (MBOE/d)               791   --   813    803   --   816

Crude Oil (MBbl/d)                         276   --   280    275   --   281

  United States                            186   --   190    188   --   192
  Algeria                                   67   --    68     67   --    69
  Ghana                                     19   --    20     19   --    20

Natural Gas (MMcf/d)

  United States                          2,525   -- 2,575  2,475   -- 2,525

Natural Gas Liquids (MBbl/d)

  United States                            100   --   110    105   --   115
  Algeria                                   --   --    --      1   --     2

                                         ----------------------------------

                                             $ / Unit          $ / Unit
                                         ----------------  ----------------
Price Differentials vs NYMEX (w/o
 hedges)

Crude Oil ($/Bbl)                        (1.00)  --  2.00  (1.00)  --  2.00

  United States                          (5.00)  --    --  (5.00)  --    --
  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) (0.30)  -- (0.20)

* All volumes exclude the impact from China and Pinedale/Jonah.



                       Anadarko Petroleum Corporation
                 Financial and Operating External Guidance
                             As of May 5, 2014

                                              2nd Qtr          Full Year
                                            Guidance *        Guidance *
                                         ----------------  ----------------

                                               $ MM              $ MM
                                         ----------------  ----------------
Other Revenues
  Marketing and Gathering Margin            50   --    70    240   --   260
  Minerals and Other                        45   --    55    190   --   210

                                         ----------------------------------

                                              $ / BOE           $ / BOE
                                         ----------------  ----------------
Costs and Expenses
  Oil & Gas Direct Operating              3.80   --  4.00   3.90   --  4.10
  Oil & Gas Transportation/Other          3.55   --  3.75   3.75   --  3.85
  Depreciation, Depletion, and
   Amortization                          14.00   -- 14.50  14.25   -- 14.75
  Production Taxes (% of Product
   Revenue)                                7.5%  --   8.5%   8.0%  --   9.0%

                                               $ MM              $ MM
                                         ----------------  ----------------

  General and Administrative               290   --   310  1,150   -- 1,250
  Exploration Expense
    Non-Cash                               100   --   150    650   --   750
    Cash                                   105   --   115    400   --   450
  Interest Expense (net)                   180   --   185    735   --   745
  Other (Income) Expense                    40   --    50    135   --   155

Tax Rate
  Algeria (All current)                     45%  --    55%    45%  --    55%
  Rest of Company (10% current for Q2
   and FY)                                  50%  --    60%    40%  --    50%

                                         ----------------------------------

Avg. Shares Outstanding (MM)
  Basic                                    504   --   505    504   --   505
  Diluted                                  505   --   506    507   --   508

                                         ----------------------------------

Capital Investment (Excluding Western
 Gas Partners, LP)                             $ MM              $ MM
                                         ----------------  ----------------

  APC Capital Expenditures               2,100   -- 2,300  8,400   -- 8,800

* Excludes items affecting comparability



                       Anadarko Petroleum Corporation
           Commodity Hedge Positions (Excluding Natural Gas Basis)
                              As of May 5, 2014

                                               Weighted Average Price per
                                                         Barrel
                                            --------------------------------
                                   Volume                 Floor     Ceiling
                                  (MBbls/d) Floor Sold  Purchased    Sold
                                 ---------- ---------- ---------- ----------
Crude Oil
  Fixed Price - Financial
  2014
    WTI                                  70 $    96.03
    Brent                                37 $   109.19
                                 ---------- ----------
                                        107 $   100.58

                                            Weighted Average Price per MMBtu
                                            --------------------------------
                                   Volume
                                  (thousand               Floor     Ceiling
                                  MMBtu/d)  Floor 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                                  600 $     4.26

Extendable
2014 (through June)      Fixed
 Price                                  400 $     4.19
2014 (July - December)   Swap           400                       $     4.19



                          Interest-Rate Derivatives
                              As of May 5, 2014

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 Petroleum Corporation
                     Reconciliation of Same-Store Sales

Average Daily Sales Volumes
                                        Quarter Ended March 31, 2014
                                -------------------------------------------
                                            Crude Oil
                                  Natural       &
                                    Gas    Condensate    NGLs       Total
                                  MMcf/d     MBbls/d    MBbls/d    MBOE/d
                                ---------- ---------- ---------- ----------
U.S. Onshore                         2,397        125         92        617
Deepwater Gulf of Mexico               275         46          6         98
International and Alaska                --         87         --         87
                                ---------- ---------- ---------- ----------
Same-Store Sales                     2,672        258         98        802
                                ---------- ---------- ---------- ----------
China and Pinedale/Jonah                25         12          1         17
                                ---------- ---------- ---------- ----------
Total                                2,697        270         99        819
                                ---------- ---------- ---------- ----------

                                --------------------------------------------

 Average Daily Sales Volumes
                                        Quarter Ended March 31, 2013
                                -------------------------------------------
                                            Crude Oil
                                  Natural       &
                                    Gas    Condensate    NGLs       Total
                                  MMcf/d     MBbls/d    MBbls/d    MBOE/d
                                ---------- ---------- ---------- ----------
 U.S. Onshore                        2,244         97         77        548
 Deepwater Gulf of Mexico              362         50          8        118
 International and Alaska               --         95         --         95
                                ---------- ---------- ---------- ----------
 Same-Store Sales                    2,606        242         85        761
                                ---------- ---------- ---------- ----------
 China and Pinedale/Jonah               83         15          3         32
                                ---------- ---------- ---------- ----------
 Total                               2,689        257         88        793
                                ---------- ---------- ---------- ----------

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