EX-99 2 apc093013earningsrelease.htm ANADARKO PRESS RELEASE DATED NOVEMBER 4, 2013 APC 09.30.13 Earnings Release

Exhibit 99


NEWS

ANADARKO ANNOUNCES THIRD-QUARTER 2013 RESULTS

HOUSTON, Nov. 4, 2013 - Anadarko Petroleum Corporation (NYSE: APC) today announced third-quarter 2013 net income attributable to common stockholders of $182 million, or $0.36 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items decreased net income by approximately $389 million, or $0.77 per share (diluted), on an after-tax basis.(1) Cash flow from operating activities in the third quarter of 2013 was approximately $1.779 billion, and discretionary cash flow totaled $2.020 billion.(2) 
    
THIRD-QUARTER 2013 HIGHLIGHTS
•
Announced $2.64 billion transaction for the sale of a 10-percent working interest in Mozambique’s Offshore Area 1
•
Achieved record U.S. onshore sales volumes of approximately 590,000 barrels of oil equivalent (BOE) per day
•
Delivered 30,000-BOE-per-day growth in the Wattenberg horizontal program, more than doubling year-over-year sales volumes
•
Reached project milestones with the installation of the Lucius spar in the Gulf of Mexico and the initiation of oil production from the second El Merk train in Algeria
•
Increased activity in the Delaware Basin Wolfcamp play in West Texas

“We continue to demonstrate our commitment to value acceleration and portfolio management,” said Al Walker, Anadarko Chairman, President and CEO. “During the third quarter, we announced the $2.64 billion monetization of a portion of our working interest in Mozambique, and more recently, announced a strategic acreage exchange in the Wattenberg field that is expected to enhance our operating efficiencies and concentrate our core acreage position near our operated infrastructure. In addition, we expanded our ownership position in the emerging Shenandoah Basin of the deepwater Gulf of Mexico by more than doubling our working interest in the Coronado discovery. We also ramped up Wolfcamp activity in West Texas, which continued to deliver high liquids yields and strong initial production rates.”





2

OPERATIONS REPORT
For details on Anadarko’s operations and exploration program, please refer to the comprehensive report on third-quarter 2013 activity. The report is available at www.anadarko.com.

OPERATIONS SUMMARY
During the third quarter, Anadarko increased U.S. onshore sales volumes by approximately 61,000 BOE per day over the third quarter of 2012, which includes an approximate 16-percent increase in liquids volumes. The Wattenberg horizontal program, where Anadarko more than doubled sales volumes over the third quarter of 2012, was a significant contributor to this growth. The company also achieved substantial growth in the Eagleford Shale in South Texas and the liquids-rich East Texas horizontal development.
Anadarko also increased activity in the Wolfcamp play in the Delaware Basin of West Texas during the quarter, currently running six operated rigs, compared to none in the third quarter of 2012. Wolfcamp results have been very encouraging with six wells now on production. Each well has demonstrated initial production rates of between 1,000 and 1,600 BOE per day of gross processed production with oil comprising more than 70 percent of the product mix.

MEGA-PROJECT SUMMARY
Anadarko installed the 80,000-barrels-of-oil-per-day (BOPD) Lucius spar on location in the deepwater Gulf of Mexico in August. The company initiated well-completion activities at Lucius during the quarter, and the project remains on schedule, with first oil production expected during the second half of 2014. Leveraging a design-one, build-two strategy, Anadarko progressed construction on the hull of the 80,000-BOPD Heidelberg spar, which is now nearly 50-percent complete. Heidelberg remains on schedule for initial oil production anticipated in 2016.
In Algeria, Anadarko and its partners achieved initial oil production from the second El Merk train and continued to advance the third facility, which is on schedule to commence production during the fourth quarter of 2013.

EXPLORATION SUMMARY
Anadarko drilled two successful appraisal wells in Mozambique during the third quarter. The Golfinho-5 and Golfinho-6 wells encountered approximately 330 net feet and approximately 240 net feet of natural


3

gas pay, respectively. Both wells appear to be in static communication with the rest of the Golfinho field. The Golfinho appraisal program is expected to be completed this year.
In the Gulf of Mexico, Anadarko enhanced its working interest in the Shenandoah Basin by increasing its stake in the Coronado discovery from 15 to 35 percent. Anadarko will assume operatorship of Coronado after the next appraisal well is drilled.

CONFERENCE CALL TOMORROW AT 8 A.M. CST, 9 A.M. EST
Anadarko will host a conference call on Tuesday, Nov. 5, 2013, at 8 a.m. Central Standard Time (9 a.m. Eastern Standard Time) to discuss third-quarter results, current operations and the company’s outlook for the remainder of 2013. The dial-in number is 855.812.0464 in the United States, or 970.300.2271 internationally. The confirmation number is 75022312. For complete instructions on how to participate in the conference call, or to listen to the live audio webcast and slide presentation, please visit www.anadarko.com. A replay of the call will be available on the website for approximately 30 days following the conference call.

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

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

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

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


This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Anadarko believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release, including Anadarko’s ability to consummate the transaction described in this news release, achieve its production targets, successfully manage its capital expenditures, timely complete and commercially operate the projects and drilling prospects identified in this news release, and achieve production and budget expectations on its mega projects. See “Risk Factors” in the company’s 2012 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.






4

#            #            #

ANADARKO CONTACTS

MEDIA:
John Christiansen, john.christiansen@anadarko.com, 832.636.8736
Brian Cain, brian.cain@anadarko.com, 832.636.3404
Christina Ramirez, christina.ramirez@anadarko.com, 832.636.8687

INVESTORS:
John Colglazier, john.colglazier@anadarko.com, 832.636.2306
Jeremy Smith, jeremy.smith@anadarko.com, 832.636.1544
Bill Tedesco, william.tedesco@anadarko.com, 832.636.3375




5

Anadarko Petroleum Corporation
Certain Items Affecting Comparability
 
 
 
Quarter Ended September 30, 2013
 
 
 
Before
 
After
 
Per Share
millions except per-share amounts
 
 
Tax
 
Tax
 
(diluted)
Unrealized gains (losses) on derivatives, net*
 
 
$
(36
)
 
$
(21
)
 
$
(0.04
)
Gains (losses) on divestitures, net
 
 
8

 
5

 
0.01

Impairments
 
 
(593
)
 
(376
)
 
(0.74
)
Third-party well and platform decommissioning obligation
 
 
10

 
6

 
0.01

Deepwater Horizon settlement and related costs
 
 
(5
)
 
(3
)
 
(0.01
)
 
 
 
$
(616
)
 
$
(389
)
 
$
(0.77
)

*
For the quarter ended September 30, 2013, before-tax unrealized gains (losses) on derivatives, net includes $(120) million related to commodity derivatives, $74 million related to interest-rate and other derivatives, and $10 million related to gathering, processing, and marketing sales.     
 
 
 
Quarter Ended September 30, 2012
 
 
 
Before
 
After
 
Per Share
millions except per-share amounts
 
 
Tax
 
Tax
 
(diluted)
Unrealized gains (losses) on derivatives, net*
 
 
$
(456
)
 
$
(290
)
 
$
(0.58
)
Gains (losses) on divestitures, net
 
 
6

 
3

 
0.01

Impairments, including unproved properties
 
 
(5
)
 
(4
)
 
(0.01
)
Algeria exceptional profits tax settlement
 
 
(7
)
 
(7
)
 
(0.01
)
Deepwater Horizon settlement and related costs
 
 
(4
)
 
(3
)
 
(0.01
)
 
 
 
$
(466
)
 
$
(301
)
 
$
(0.60
)

*
For the quarter ended September 30, 2012, before-tax unrealized gains (losses) on derivatives, net includes $(437) million related to commodity derivatives, $(14) million related to interest-rate and other derivatives, and $(5) million related to gathering, processing, and marketing sales.

Reconciliation of GAAP to Non-GAAP Measures

Below are reconciliations of cash provided by operating activities (GAAP) to discretionary cash flow from operations (non-GAAP), free cash flow (non-GAAP), and adjusted free cash flow (non-GAAP), as well as net income (loss) attributable to common stockholders (GAAP) to adjusted net income (loss) (non-GAAP) as required under Regulation G of the Securities Exchange Act of 1934. Management uses discretionary cash flow from operations because it is useful in comparisons of oil and gas exploration and production companies as it excludes fluctuations in assets and liabilities. Management uses free cash flow and adjusted free cash flow to demonstrate the Company’s ability to internally fund capital expenditures and to service or incur additional debt. Management uses adjusted net income (loss) to evaluate the Company’s operational trends and performance.
 
Quarter Ended
 
Nine Months Ended
 
September 30,
 
September 30,
millions
2013
 
2012
 
2013
 
2012
Net cash provided by operating activities
$
1,779

 
$
2,229

 
$
6,784

 
$
6,119

Add back
 
 
 
 
 
 
 
Deepwater Horizon settlement and related costs
3

 
3

 
9

 
(10
)
Algeria exceptional profits tax settlement
(32
)
 
(501
)
 
(730
)
 
(614
)
Change in accounts receivable
11

 
(58
)
 
(246
)
 
(409
)
Change in accounts payable and accrued expenses
248

 
—

 
116

 
486

Change in other items—net
11

 
121

 
51

 
(27
)
Discretionary cash flow from operations
$
2,020

 
$
1,794

 
$
5,984

 
$
5,545




6

Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
 
Quarter Ended
 
Nine Months Ended
 
September 30,
 
September 30,
millions
2013
 
2012
 
2013
 
2012
Discretionary cash flow from operations
$
2,020

 
$
1,794

 
$
5,984

 
$
5,545

Less capital expenditures*
2,298

 
1,779

 
5,911

 
5,378

Free cash flow
$
(278
)
 
$
15

 
$
73

 
$
167

Collection of Algeria exceptional profits tax receivable
32

 
501

 
730

 
614

Adjusted free cash flow
$
(246
)
 
$
516

 
$
803

 
$
781


*
Includes Western Gas Partners, LP (WES) capital expenditures of $185 million for the quarter ended September 30, 2013, $139 million for the quarter ended September 30, 2012, $622 million for the nine months ended September 30, 2013, and $360 million for the nine months ended September 30, 2012.
 
Quarter Ended
 
Quarter Ended
 
September 30, 2013
 
September 30, 2012
 
After
 
Per Share
 
After
 
Per Share
millions except per-share amounts
Tax
 
(diluted)
 
Tax
 
(diluted)
Net income (loss) attributable to common stockholders
$
182

 
$
0.36

 
$
121

 
$
0.24

Certain items affecting comparability
(389
)
 
(0.77
)
 
(301
)
 
(0.60
)
Adjusted net income (loss)
$
571

 
$
1.13

 
$
422

 
$
0.84


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.
 
 
 
 
 
 
September 30,
millions
 
 
 
 
 
2013
Total debt
 
 
 
 
 
 
$
13,647

Less cash and cash equivalents
 
 
 
 
 
 
3,939

Net debt
 
 
 
 
 
 
$
9,708

 
 
 
 
 
 
 
 
Net debt
 
 
 
 
 
 
$
9,708

Stockholders’ equity
 
 
 
 
 
 
22,342

Adjusted capitalization
 
 
 
 
 
 
$
32,050


Net debt to adjusted capitalization ratio
 
 
 
 
 
 
30
%




7

Anadarko Petroleum Corporation
(Unaudited)
 
Quarter Ended
 
Nine Months Ended
Summary Financial Information
September 30,
 
September 30,
millions except per-share amounts
2013
 
2012
 
2013
 
2012
Consolidated Statements of Income
 
 
 
 
 
 
 
Revenues and Other
 
 
 
 
 
 
 
Natural-gas sales
$
805

 
$
613

 
$
2,547

 
$
1,682

Oil and condensate sales
2,389

 
2,163

 
6,761

 
6,629

Natural-gas liquids sales
325

 
289

 
889

 
913

Gathering, processing, and marketing sales
270

 
218

 
750

 
671

Gains (losses) on divestitures and other, net
64

 
49

 
296

 
106

Total
3,853

 
3,332

 
11,243

 
10,001

Costs and Expenses
 
 
 
 
 
 
 
Oil and gas operating
277

 
241

 
769

 
732

Oil and gas transportation and other
255

 
247

 
763

 
710

Exploration
272

 
297

 
714

 
1,662

Gathering, processing, and marketing
217

 
185

 
638

 
552

General and administrative
255

 
285

 
787

 
816

Depreciation, depletion, and amortization
996

 
979

 
2,958

 
2,936

Other taxes
294

 
267

 
819

 
970

Impairments
593

 
4

 
632

 
166

Algeria exceptional profits tax settlement
—

 
7

 
33

 
(1,797
)
Deepwater Horizon settlement and related costs
5

 
4

 
12

 
15

Total
3,164

 
2,516

 
8,125

 
6,762

Operating Income (Loss)
689

 
816

 
3,118

 
3,239

Other (Income) Expense
 
 
 
 
 
 
 
Interest expense
177

 
185

 
513

 
561

(Gains) losses on derivatives, net
72

 
251

 
(393
)
 
(77
)
Other (income) expense, net
(23
)
 
(10
)
 
69

 
(264
)
Total
226

 
426

 
189

 
220

Income (Loss) Before Income Taxes
463

 
390

 
2,929

 
3,019

Income Tax Expense (Benefit)
240

 
248

 
1,263

 
764

Net Income (Loss)
223

 
142

 
1,666

 
2,255

Net Income Attributable to Noncontrolling Interests
41

 
21

 
95

 
67

Net Income (Loss) Attributable to Common Stockholders
$
182

 
$
121

 
$
1,571

 
$
2,188

Per Common Share
 
 
 
 
 
 
 
Net income (loss) attributable to common stockholders—basic
$
0.36

 
$
0.24

 
$
3.11

 
$
4.35

Net income (loss) attributable to common stockholders—diluted
$
0.36

 
$
0.24

 
$
3.10

 
$
4.34

Average Number of Common Shares Outstanding—Basic
503

 
500

 
502

 
499

Average Number of Common Shares Outstanding—Diluted
505

 
502

 
504

 
501

 
 
 
 
 
 
 
 
Exploration Expense
 
 
 
 
 
 
 
Dry hole expense
$
77

 
$
142

 
$
301

 
$
346

Impairments of unproved properties
83

 
60

 
122

 
1,043

Geological and geophysical expense
51

 
40

 
111

 
89

Exploration overhead and other
61

 
55

 
180

 
184

Total
$
272

 
$
297

 
$
714

 
$
1,662




8

Anadarko Petroleum Corporation
(Unaudited)
 
Quarter Ended
 
Nine Months Ended
Summary Financial Information
September 30,
 
September 30,
millions
2013
 
2012
 
2013
 
2012
Cash Flows from Operating Activities
 
 
 
 
 
 
 
Net income (loss)
$
223

 
$
142

 
$
1,666

 
$
2,255

Depreciation, depletion, and amortization
996

 
979

 
2,958

 
2,936

Deferred income taxes
(28
)
 
(48
)
 
535

 
95

Dry hole expense and impairments of unproved properties
160

 
202

 
423

 
1,389

Impairments
593

 
4

 
632

 
166

(Gains) losses on divestitures, net
(8
)
 
(6
)
 
(165
)
 
23

Unrealized (gains) losses on derivatives, net
36

 
456

 
(359
)
 
539

Deepwater Horizon settlement and related costs
5

 
4

 
12

 
15

Algeria exceptional profits tax settlement
—

 
7

 
33

 
(1,797
)
Tronox-related contingent loss
—

 
—

 
—

 
(250
)
Certain other nonoperating items
(10
)
 
—

 
75

 
—

Other
53

 
54

 
174

 
174

Discretionary Cash Flow from Operations
2,020

 
1,794

 
5,984

 
5,545

Deepwater Horizon settlement and related costs
(3
)
 
(3
)
 
(9
)
 
10

Algeria exceptional profits tax settlement
32

 
501

 
730

 
614

(Increase) decrease in accounts receivable
(11
)
 
58

 
246

 
409

Increase (decrease) in accounts payable and accrued expenses
(248
)
 
—

 
(116
)
 
(486
)
Other items—net
(11
)
 
(121
)
 
(51
)
 
27

Net Cash Provided by Operating Activities
$
1,779

 
$
2,229

 
$
6,784

 
$
6,119

 
 
 
 
 
 
 
 
Capital Expenditures
$
2,298

 
$
1,779

 
$
5,911

 
$
5,378

 
 
 
 
 
September 30,
 
December 31,
millions
 
 
 
 
2013
 
2012
Condensed Balance Sheets
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
$
3,939

 
$
2,471

Accounts receivable, net of allowance
 
 
 
 
2,465

 
2,747

Algeria exceptional profits tax settlement
 
 
 
 
—

 
730

Other current assets
 
 
 
 
736

 
847

Net properties and equipment
 
 
 
 
40,485

 
38,398

Other assets
 
 
 
 
2,006

 
1,716

Goodwill and other intangible assets
 
 
 
 
5,663

 
5,680

Total Assets
 
 
 
 
$
55,294

 
$
52,589

Current asset retirement obligations
 
 
 
 
$
311

 
$
298

Other current liabilities
 
 
 
 
4,427

 
3,696

Long-term debt
 
 
 
 
13,647

 
13,269

Deferred income taxes
 
 
 
 
9,372

 
8,759

Other long-term liabilities
 
 
 
 
3,636

 
4,685

Stockholders’ equity
 
 
 
 
22,342

 
20,629

Noncontrolling interests
 
 
 
 
1,559

 
1,253

Total Liabilities and Equity
 
 
 
 
$
55,294

 
$
52,589

Capitalization
 
 
 
 
 
 
 
Total debt
 
 
 
 
$
13,647

 
$
13,269

Stockholders’ equity
 
 
 
 
22,342

 
20,629

Total
 
 
 
 
$
35,989

 
$
33,898

Capitalization Ratios
 
 
 
 
 
 
 
Total debt
 
 
 
 
38
%
 
39
%
Stockholders’ equity
 
 
 
 
62
%
 
61
%



9

Anadarko Petroleum Corporation
(Unaudited)
Sales Volumes and Prices
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Daily Volumes
 
Sales Volumes
 
Average Sales Price
 
 
 
Crude Oil &
 
 
 
 
 
 
Crude Oil &
 
 
 
 
 
Crude Oil &
 
 
 
Natural Gas
 
Condensate
 
NGLs
 
 
Natural Gas
 
Condensate
 
NGLs
 
Natural Gas
 
Condensate
 
NGLs
 
MMcf/d
 
MBbls/d
 
MBbls/d
 
 
Bcf
 
MMBbls
 
MMBbls
 
Per Mcf
 
Per Bbl
 
Per Bbl
Quarter Ended September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
2,629

 
152

 
92

 
 
242

 
14

 
9

 
$
3.33

 
$
103.15

 
$
38.49

Algeria
—

 
62

 
—

 
 
—

 
5

 
—

 
—

 
110.95

 
—

Other International
—

 
31

 
—

 
 
—

 
3

 
—

 
—

 
110.54

 
—

Total
2,629

 
245

 
92

 
 
242

 
22

 
9

 
$
3.33

 
$
106.05

 
$
38.49

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
2,499

 
143

 
88

 
 
231

 
13

 
8

 
$
2.67

 
$
94.19

 
$
35.93

Algeria
—

 
61

 
—

 
 
—

 
6

 
—

 
—

 
109.70

 
—

Other International
—

 
30

 
—

 
 
—

 
2

 
—

 
—

 
107.42

 
—

Total
2,499

 
234

 
88

 
 
231

 
21

 
8

 
$
2.67

 
$
99.93

 
$
35.93

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
2,655

 
155

 
88

 
 
725

 
42

 
24

 
$
3.51

 
$
98.48

 
$
37.07

Algeria
—

 
53

 
—

 
 
—

 
14

 
—

 
—

 
109.20

 
—

Other International
—

 
34

 
—

 
 
—

 
10

 
—

 
—

 
108.53

 
—

Total
2,655

 
242

 
88

 
 
725

 
66

 
24

 
$
3.51

 
$
102.23

 
$
37.07

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
2,487

 
146

 
81

 
 
681

 
40

 
22

 
$
2.47

 
$
99.26

 
$
40.96

Algeria
—

 
57

 
—

 
 
—

 
16

 
—

 
—

 
110.46

 
—

Other International
—

 
30

 
—

 
 
—

 
8

 
—

 
—

 
114.21

 
—

Total
2,487

 
233

 
81

 
 
681

 
64

 
22

 
$
2.47

 
$
103.90

 
$
40.96

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Daily Volumes
MBOE/d
 
Sales Volumes
MMBOE
 
 
 
 
 
 
 
 
 
 
Quarter Ended September 30, 2013
775
 
71
 
 
 
 
 
 
 
 
 
 
Quarter Ended September 30, 2012
739
 
68
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2013
773
 
211
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2012
729
 
200
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales Revenue and Commodity Derivatives
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales
 
 
Commodity Derivatives Gain (Loss)
 
 
 
Crude Oil &
 
 
 
 
Natural Gas
 
Crude Oil & Condensate
 
NGLs
millions
Natural Gas
 
Condensate
 
NGLs
 
 
Realized
 
Unrealized
 
Realized
 
Unrealized
 
Realized
 
Unrealized
Quarter Ended September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
$
805

 
$
1,446

 
$
325

 
 
$
40

 
$
6

 
$
(63
)
 
$
(119
)
 
$
2

 
$
(7
)
Algeria
—

 
629

 
—

 
 
—

 
—

 
(5
)
 
—

 
—

 
—

Other International
—

 
314

 
—

 
 
—

 
—

 
—

 
—

 
—

 
—

Total
$
805

 
$
2,389

 
$
325

 
 
$
40

 
$
6

 
$
(68
)
 
$
(119
)
 
$
2

 
$
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
$
613

 
$
1,246

 
$
289

 
 
$
170

 
$
(262
)
 
$
21

 
$
(164
)
 
$
3

 
$
(11
)
Algeria
—

 
617

 
—

 
 
—

 
—

 
6

 
—

 
—

 
—

Other International
—

 
300

 
—

 
 
—

 
—

 
—

 
—

 
—

 
—

Total
$
613

 
$
2,163

 
$
289

 
 
$
170

 
$
(262
)
 
$
27

 
$
(164
)
 
$
3

 
$
(11
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
$
2,547

 
$
4,175

 
$
889

 
 
$
91

 
$
(5
)
 
$
(61
)
 
$
(69
)
 
$
7

 
$
(7
)
Algeria
—

 
1,566

 
—

 
 
—

 
—

 
9

 
—

 
—

 
—

Other International
—

 
1,020

 
—

 
 
—

 
—

 
—

 
—

 
—

 
—

Total
$
2,547

 
$
6,761

 
$
889

 
 
$
91

 
$
(5
)
 
$
(52
)
 
$
(69
)
 
$
7

 
$
(7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
$
1,682

 
$
3,981

 
$
913

 
 
$
564

 
$
(464
)
 
$
36

 
$
77

 
$
6

 
$
18

Algeria
—

 
1,713

 
—

 
 
—

 
—

 
(6
)
 
—

 
—

 
—

Other International
—

 
935

 
—

 
 
—

 
—

 
—

 
—

 
—

 
—

Total
$
1,682

 
$
6,629

 
$
913

 
 
$
564

 
$
(464
)
 
$
30

 
$
77

 
$
6

 
$
18





10

Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of November 4, 2013
 
 
 
 
 
 
 
4th Qtr
 
Total Year
 
 
Guidance
 
Guidance
 
 
 
 
 
 
 
 
 
 
 
 Units
 
 Units
 
 
 
 
 
 
 
 
 
Total Sales (MMBOE)
 
70

—

73

 
281

—

284

 
 
 
 
 
 
 
 
 
Crude Oil (MBbl/d)
 
256

—

263

 
245

—

248

 
 
 
 
 
 
 
 
 
United States
 
161

—

165

 
156

—

158

Algeria
 
57

—

59

 
54

—

55

Other International
 
38

—

39

 
35

—

36

 
 
 
 
 
 
 
 
 
Natural Gas (MMcf/d)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
 
2,550

—

2,600

 
2,625

—

2,640

 
 
 
 
 
 
 
 
 
Natural Gas Liquids (MBbl/d)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
 
90

—

95

 
88

—

90

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 $ / Unit
 
 $ / Unit
Price Differentials vs NYMEX (w/o hedges)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Crude Oil ($/Bbl)
 
(1.00
)
—

1.00

 
2.75

—

3.25

 
 
 
 
 
 
 
 
 
United States
 
(6.00
)
—

(2.00
)
 
(1.00
)
—

1.00

Algeria
 
6.00

—

8.00

 
8.00

—

10.00

Other International
 
5.00

—

7.00

 
7.00

—

9.00

 
 
 
 
 
 
 
 
 
Natural Gas ($/Mcf)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
 
(0.15
)
—

(0.25
)
 
(0.15
)
—

(0.20
)
 
 
 
 
 
 
 
 
 



11

Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of November 4, 2013
 
 
 
 
 
 
 
4th Qtr
 
Total Year
 
 
Guidance
 
Guidance *
 
 
 
 
 
 
 
 
 
 
 
 $ MM
 
 $ MM
Other Revenues
 
 
 
 
 
 
 
 
Marketing and Gathering Margin
 
40

—

50

 
140

—

150

Minerals and Other
 
30

—

40

 
175

—

185

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 $ / BOE
 
 $ / BOE
Costs and Expenses
 
 
 
 
 
 
 
 
Oil & Gas Direct Operating
 
4.10

—

4.30

 
3.75

—

3.85

Oil & Gas Transportation/Other
 
3.45

—

3.65

 
3.55

—

3.65

Depreciation, Depletion and Amortization
 
14.10

—

14.30

 
13.95

—

14.05

Production Taxes (% of Product Revenue)
 
8.0
%
—

9.0
%
 
8.0
%
—

9.0
%
 
 
 
 
 
 
 
 
 
 
 
 $ MM
 
 $ MM
 
 
 
 
 
 
 
 
 
General and Administrative
 
275

—

325

 
1,050

—

1,100

Exploration Expense
 
 
 
 
 
 
 
 
Non-Cash
 
275

—

325

 
700

—

750

Cash
 
175

—

225

 
450

—

500

Interest Expense (net)
 
175

—

180

 
685

—

690

Other (Income)/Expense
 
—

—

20

 
180

—

200

 
 
 
 
 
 
 
 
 
Tax Rate
 
 
 
 
 
 
 
 
Algeria (All current)
 
45
%
—

50
%
 
40
%
—

45
%
Rest of Company (30% Current for 4Q and FY)
 
50
%
—

60
%
 
45
%
—

55
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Avg. Shares Outstanding (MM)
 
 
 
 
 
 
 
 
Basic
 
503

—

505

 
502

—

503

Diluted
 
507

—

508

 
505

—

506

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital Investment (Excluding Western Gas Partners, LP)
 $ MM
 
 $ MM
 
 
 
 
 
 
 
 
 
APC Capital Expenditures
 
2,100

—

2,300

 
7,400

—

7,600

 
 
 
 
 
 
 
 
 
* Excludes items affecting comparability
 
 
 
 
 
 
 
 



12

Anadarko Petroleum Corporation
Commodity Hedge Positions (Excluding Natural Gas Basis)
As of November 4, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Price per barrel
 
 
 
Volume
(MBbls/d)
 
Floor Sold
 
Floor Purchased
 
Ceiling Sold
Crude Oil
 
 
 
 
 
 
 
 
Three-Way Collars
 
 
 
 
 
 
 
2013
 
 
 
 
 
 
 
 
 
 
Brent
 
26
$
85.00
$
105.00
$
125.15
 
 
 
 
 
 
 
 
 
 
Fixed Price - Financial
 
 
 
 
 
 
 
2013
 
 
 
 
 
 
 
 
 
 
Brent
(Jan-Dec)
61
$
108.72
 
 
 
 
 
WTI
(Jan-Dec)
47
$
94.43
 
 
 
 
 
108
$
102.50
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
WTI
(Jul-Dec)
14
$
104.36
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
WTI
(Aug-Dec)
37
$
101.11
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brent
(Sep-Dec)
8
$
110.61
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
 
 
WTI
 
51
$
96.41
 
 
 
 
 
 
 
 
 
 
 
 
 
Volume
 
Weighted Average Price per MMBtu
 
 
 
(thousand
 
 
 
 
 
 
 
 
 
MMBtu/d)
 
Floor Sold
 
Floor Purchased
 
Ceiling Sold
Natural Gas
 
 
 
 
 
 
 
 
Three-Way Collars
 
 
 
 
 
 
 
2014
 
 
600
$
2.75
$
3.75
$
5.01
 
 
 
 
 
 
 
 
 
 
Fixed Price - Financial
 
 
 
 
 
 
 
2013
 
 
1,185
$
4.00
 
 
 
 
2014
 
 
600
$
4.26
 
 
 
 

 
 
 
 
 
 
 
 
Interest-Rate Derivatives
As of November 4, 2013
 
 
 
 
 
 
 
 
 
Instrument
Notional Amt.
Start Date
Maturity
Rate Paid
Rate Received
 
 
Swap
$750 Million
June 2014
June 2024
6.00%
3M LIBOR
 
 
Swap
$1,100 Million
June 2014
June 2044
5.57%
3M LIBOR
 
 
Swap
$50 Million
Sept. 2016
Sept. 2026
5.91%
3M LIBOR
 
 
Swap
$750 Million
Sept. 2016
Sept. 2046
5.86%
3M LIBOR