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

News Feed Item

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 barrels 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 budget 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 in 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, depletion, 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 States            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 Guidance
                            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
                                          ------- ---------- ------- -------


More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.