EX-99 2 apc20164q-earningsrelease.htm ANADARKO PRESS RELEASE DATED JANUARY 31, 2016 Exhibit

Exhibit 99

newsreleaseanadarkoa19.jpg
NEWS

ANADARKO ANNOUNCES 2016 FOURTH-QUARTER
AND FULL-YEAR RESULTS

HOUSTON, Jan. 31, 2017 – Anadarko Petroleum Corporation (NYSE: APC) today announced 2016 fourth-quarter results, reporting a net loss attributable to common stockholders of $515 million, or $0.94 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items increased the net loss by $243 million, or $0.44 per share (diluted), on an after-tax basis.(1) Net cash provided by operating activities in the fourth quarter of 2016 was $1.12 billion.
For the year ended Dec. 31, 2016, Anadarko reported a net loss attributable to common stockholders of $3.07 billion, or $5.90 per share (diluted). Full-year 2016 net cash provided by operating activities totaled $3.00 billion.
    
2016 HIGHLIGHTS
•
Surpassed initial sales-volume expectations by 11 million barrels of oil equivalent (BOE) on a same-store-sales basis,(2) while keeping capital investments within initial guidance
•
Closed more than $4.0 billion of monetizations in 2016, with an additional $3.5 billion of announced divestitures, which are expected to close in the first quarter of 2017
•
Achieved operating milestones including production records at Lucius, Caesar/Tonga and in the Delaware and DJ basins, as well as first oil at Heidelberg and TEN
•
Closed the immediately accretive Freeport-McMoRan deepwater Gulf of Mexico acquisition
•
Increased the expected five-year compounded annual oil growth rate to 12 to 14 percent

“Our employees did outstanding work over the past year to overcome the prolonged market challenges and sharpen the company’s competitive focus going forward,” said Al Walker, Anadarko Chairman, President and CEO. “As a result of these actions, we have a stronger balance sheet, an improved cost structure, and a more concentrated portfolio focused on higher-margin oil production provided by our leading positions in the Delaware and DJ basins and the deepwater Gulf of Mexico. These accomplishments, along with our monetization activities, the cash-generating capabilities of our international operations, a successful exploration program, and the acquisition of Freeport-McMoRan’s Gulf of Mexico properties, have created strong momentum going into 2017. We are already increasing investments in our three ‘Ds’


2

to drive a five-year compounded annual oil growth rate of 12 to 14 percent, and I believe Anadarko is in a better position today to deliver value than at any time in my tenure with the company.”

SALES VOLUMES AND PROVED RESERVES
Anadarko’s full-year sales volumes of oil, natural gas and natural gas liquids (NGLs) totaled 290 million BOE, or an average of 793,000 BOE per day. Fourth-quarter 2016 sales volumes of oil, natural gas and NGLs averaged approximately 774,000 BOE per day.
In 2016, Anadarko organically added 300 million BOE of proved reserves before the effects of price revisions. Anadarko’s costs incurred were $5.63 billion, which includes $2.45 billion of acquisition costs. The company’s oil and natural gas exploration and development costs were $3.21 billion.(3) The company estimates its proved reserves at year-end 2016 totaled 1.72 billion BOE, with 77 percent of its reserves categorized as proved developed. At year-end 2016, Anadarko’s proved reserves were comprised of 57 percent liquids and 43 percent natural gas.

OPERATING HIGHLIGHTS
In 2016, Anadarko reduced its capital investments by approximately 50 percent relative to 2015, excluding capital investments associated with Western Gas Partners, LP (NYSE: WES), yet delivered significant sales-volume increases in its two most attractive U.S. onshore operating areas – the Delaware and DJ basins. Sales volumes in the Delaware Basin averaged approximately 45,000 BOE per day, including an increase of 8,000 barrels of oil per day (BOPD), representing a 50-percent increase over 2015. In the DJ Basin, sales volumes averaged 244,000 BOE per day – a 20,000-BOE per day increase over 2015. The company increased rig activity in both basins during the year, ending 2016 with nine operated rigs in the Delaware Basin and five operated rigs in the DJ Basin, compared to six rigs in the Delaware and two in the DJ in the first quarter of 2016.
In December, Anadarko closed the acquisition of Freeport-McMoRan’s deepwater Gulf of Mexico properties for $1.8 billion net of purchase-price adjustments, providing the company with the largest number of floating production facilities in the Gulf and doubling its net sales volumes from the region to more than 160,000 BOE per day. Also in the Gulf, the company announced exploration success at the Warrior prospect, which is a likely tieback to the company’s Marco Polo facility. Anadarko expects to spud an appraisal well to Warrior in the second quarter of 2017. Additionally, a successful appraisal well was drilled at the Phobos discovery, which is being evaluated as a possible tieback to Anadarko’s Lucius facility.
Internationally, Anadarko’s operations in Algeria continued to produce at their highest level since 2009, with gross production averaging 404,000 BOE per day during the fourth quarter. Meanwhile, the


3

TEN project offshore Ghana, which achieved first oil in August, successfully ramped gross production to an average of approximately 54,000 BOPD in December.

OPERATIONS REPORT
For additional details on Anadarko’s fourth-quarter 2016 operations and exploration program, please refer to the comprehensive Operations Report available at www.anadarko.com.

FINANCIAL HIGHLIGHTS
Anadarko ended 2016 with $3.2 billion of cash on hand. During the year, the company generated $3.0 billion of net cash provided by operating activities and closed monetizations totaling more than $4.0 billion. Anadarko also has announced the divestitures of its Eagleford and Marcellus shale positions totaling more than $3.5 billion, which are expected to close during the first quarter of 2017. During the fourth quarter, the company redeemed its remaining $750 million of 2017 debt maturities. Subsequent to year end, the company further strengthened its liquidity position by renewing its $2.0 billion, 364-day credit facility with a new maturity in 2018.

CONFERENCE CALL TOMORROW AT 8 A.M. CST, 9 A.M. EST
Anadarko will host a conference call on Wednesday, Feb. 1, 2017, at 8 a.m. Central Standard Time (9 a.m. Eastern Standard Time) to discuss fourth-quarter and full-year 2016 results. The dial-in number is 877.883.0383 in the U.S. or 412.902.6506 internationally. The confirmation number is 9799112. 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 costs incurred, proved reserves and current hedge positions.

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

(2) See the accompanying table for a reconciliation of same-store sales volumes, which reflects both acquisitions and divestitures.

(3) 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.


4

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 2016, the company had 1.72 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 realize its expectations regarding performance, finalize year-end reserves, timely complete and commercially operate the projects and drilling prospects identified in this news release, and consummate the transactions described in this news release. See “Risk Factors” in the company’s 2015 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 Contacts

MEDIA:
John Christiansen, john.christiansen@anadarko.com, 832.636.8736

INVESTORS:
Robin Fielder, robin.fielder@anadarko.com, 832.636.1462
Jim Grant, james.grant@anadarko.com, 832.636.8320
Pete Zagrzecki, pete.zagrzecki@anadarko.com, 832.636.7727


5

Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures

Below are reconciliations of certain GAAP to non-GAAP financial measures, each as required under Regulation G of the Securities Exchange Act of 1934. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. The non-GAAP financial information presented may be determined or calculated differently by other companies and may not be comparable to similarly titled measures.

Management uses adjusted net income (loss) to evaluate operating and financial performance and believes the measure is useful to investors because it eliminates the impact of certain noncash and/or other items that management does not consider to be indicative of the Company’s performance from period to period. Management also believes this non-GAAP measure is useful to investors to evaluate and compare the Company’s operating and financial performance across periods, as well as facilitating comparisons to others in the Company’s industry.
 
 
Quarter Ended December 31, 2016
 
 
Before
 
After
 
Per Share
millions except per-share amounts
 
Tax
 
Tax
 
(diluted)
Net income (loss) attributable to common stockholders
 
 
 
$
(515
)
 
$
(0.94
)
Adjustments for certain items affecting comparability
 
 
 
 
 
 
Total gains (losses) on derivatives, net, less net cash from settlement of
commodity derivatives*
 
$
304

 
193

 
0.35

Gains (losses) on divestitures, net
 
(241
)
 
(155
)
 
(0.28
)
Impairments
 
 
 
 
 
 
Producing and general properties
 
(166
)
 
(101
)
 
(0.18
)
Exploration assets
 
(149
)
 
(115
)
 
(0.21
)
Restructuring charges
 
(26
)
 
(16
)
 
(0.03
)
Early termination of rig
 
(49
)
 
(32
)
 
(0.06
)
Loss on early extinguishment of debt
 
(31
)
 
(20
)
 
(0.04
)
Environmental reserves
 
21

 
13

 
0.03

Change in uncertain tax positions (FIN 48)
 


 
(10
)
 
(0.02
)
Certain items affecting comparability
 
$
(337
)
 
(243
)
 
(0.44
)
Adjusted net income (loss)
 
 
 
$
(272
)
 
$
(0.50
)
*
Includes $483 million related to interest-rate derivatives and $(179) million related to commodity derivatives.    
 
 
Quarter Ended December 31, 2015
 
 
Before
 
After
 
Per Share
millions except per-share amounts
 
Tax
 
Tax
 
(diluted)
Net income (loss) attributable to common stockholders
 
 
 
$
(1,250
)
 
$
(2.45
)
Adjustments for certain items affecting comparability
 
 
 
 
 
 
Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives*
 
$
139

 
88

 
0.17

Gains (losses) on divestitures, net (after noncontrolling interest)
 
(7
)
 
(5
)
 
(0.01
)
Impairments
 


 


 


Producing properties (after noncontrolling interest)
 
(1,205
)
 
(761
)
 
(1.50
)
Exploration assets
 
(144
)
 
(93
)
 
(0.18
)
Clean Water Act penalty accrual
 
(70
)
 
(70
)
 
(0.14
)
Settlement accrual
 
(74
)
 
(47
)
 
(0.09
)
Inventory adjustments
 
(38
)
 
(25
)
 
(0.05
)
Environmental reserves
 
(29
)
 
(18
)
 
(0.03
)
Other adjustments
 
(13
)
 
(10
)
 
(0.02
)
Change in uncertain tax positions (FIN 48)
 
—

 
(13
)
 
(0.03
)
Certain items affecting comparability
 
$
(1,441
)
 
(954
)
 
(1.88
)
Adjusted net income (loss)
 
 
 
$
(296
)
 
$
(0.57
)
*
Includes $32 million related to interest-rate derivatives, $106 million related to commodity derivatives, and $1 million related to gathering, processing, and marketing sales.


6

Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures

Management believes oil and natural gas exploration and development costs is a more accurate reflection of the expenditures incurred during the current year excluding acquisition costs and certain obligations to be paid in future periods.
millions
 
 
 
 
 
Year Ended December 31, 2016
Costs incurred
 
 
 
 
 
 
$
5,633

Costs incurred related to the Gulf of Mexico acquisition*
 
 
 
 
 
 
(2,454
)
Asset retirement obligation liabilities incurred
 
 
 
 
 
 
(191
)
Cash expenditures for asset retirement obligations
 
 
 
 
 
 
222

Oil and natural gas exploration and development costs
 
 
 
 
 
 
$
3,210

*
Includes capitalized asset retirement costs.

Management uses net debt to determine the Company’s outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. Management believes that using net debt in the capitalization ratio is useful to investors in determining the Company’s leverage since the Company could choose to use its cash and cash equivalents to retire debt. In addition, management believes that presenting Anadarko’s net debt excluding WGP is useful because WGP is a separate public company with its own capital structure.
 
 
 
December 31, 2016
 
 
 
 
 
 
 
Anadarko
 
 
 
Anadarko
 
WGP*
 
excluding
millions
 
 
Consolidated
 
Consolidated
 
WGP
Total debt
 
 
$
15,323

 
$
3,119

 
$
12,204

Less cash and cash equivalents
 
 
3,184

 
359

 
2,825

Net debt
 
 
$
12,139

 
$
2,760

 
$
9,379

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Anadarko
 
 
 
 
 
Anadarko
 
excluding
millions
 
 
 
 
Consolidated
 
WGP
Net debt
 
 
 
 
$
12,139

 
$
9,379

Total equity
 
 
 
 
15,497

 
12,212

Adjusted capitalization
 
 
 
 
$
27,636

 
$
21,591


Net debt to adjusted capitalization ratio
 
 
 
 
44
%
 
43
%

*
Western Gas Equity Partners, LP (WGP) is a publicly traded consolidated subsidiary of Anadarko and WES is a consolidated subsidiary of WGP.


7

Anadarko Petroleum Corporation
Cash Flow Information
(Unaudited)
 
Quarter Ended
 
Year Ended
 
December 31,
 
December 31,
millions
2016
 
2015
 
2016
 
2015
Cash Flows from Operating Activities
 
 
 
 
 
 
 
Net income (loss)
$
(452
)
 
$
(1,524
)
 
$
(2,808
)
 
$
(6,812
)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
 
 
 
 
 
 
 
Depreciation, depletion, and amortization
1,099

 
1,022

 
4,301

 
4,603

Deferred income taxes
(117
)
 
(525
)
 
(1,238
)
 
(3,152
)
Dry hole expense and impairments of unproved properties
313

 
274

 
613

 
2,267

Impairments
166

 
1,504

 
227

 
5,075

(Gains) losses on divestitures, net
241

 
19

 
757

 
1,022

Loss on early extinguishment of debt
31

 
—

 
155

 
—

Total (gains) losses on derivatives, net
(342
)
 
(223
)
 
292

 
(100
)
Operating portion of net cash received (paid) in settlement of derivative instruments
38

 
84

 
267

 
335

Other
86

 
101

 
342

 
320

Changes in assets and liabilities*
60

 
(475
)
 
92

 
(5,435
)
Net Cash Provided by (Used in) Operating Activities**
$
1,123

 
$
257

 
$
3,000

 
$
(1,877
)
Net Cash Provided by (Used in) Investing Activities
$
(1,506
)
 
$
(1,075
)
 
$
(2,762
)
 
$
(4,771
)
Net Cash Provided by (Used in) Financing Activities
$
(413
)
 
$
(314
)
 
$
2,008

 
$
220

 
 
 
 
 
 
 
 
Capital Expenditures***
$
993

 
$
1,313

 
$
3,314

 
$
5,888

*
The year ended December 31, 2015, includes a $5,210 million decrease for the Tronox-related contingent liability.
**
Restructuring charges (excluding stock-based compensation) were $23 million for the quarter ended December 31, 2016, and $357 million for the year ended December 31, 2016. Cash payments for restructuring charges were $30 million for the quarter ended December 31, 2016, and $247 million for the year ended December 31, 2016.
***Includes Western Gas Partners, LP (WES) capital expenditures of $135 million for the quarter ended December 31, 2016, and $120 million for the quarter ended December 31, 2015, $491 million for the year ended December 31, 2016, and $525 million for the year ended December 31, 2015.


8

Anadarko Petroleum Corporation
(Unaudited)
 
Quarter Ended
 
Year Ended
Summary Financial Information
December 31,
 
December 31,
millions except per-share amounts
2016
 
2015
 
2016
 
2015
Consolidated Statements of Income
 
 
 
 
 
 
 
Revenues and Other
 
 
 
 
 
 
 
Oil sales
$
1,454

 
$
1,156

 
$
4,668

 
$
5,420

Natural-gas sales
443

 
395

 
1,564

 
2,007

Natural-gas liquids sales
281

 
189

 
921

 
833

Gathering, processing, and marketing sales
399

 
294

 
1,294

 
1,226

Gains (losses) on divestitures and other, net
(190
)
 
19

 
(578
)
 
(788
)
Total
2,387

 
2,053

 
7,869

 
8,698

Costs and Expenses
 
 
 
 
 
 
 
Oil and gas operating
203

 
230

 
811

 
1,014

Oil and gas transportation
258

 
264

 
1,002

 
1,117

Exploration
440

 
384

 
946

 
2,644

Gathering, processing, and marketing
329

 
256

 
1,087

 
1,054

General and administrative
324

 
288

 
1,440

 
1,176

Depreciation, depletion, and amortization
1,099

 
1,022

 
4,301

 
4,603

Other taxes
114

 
93

 
536

 
553

Impairments
166

 
1,504

 
227

 
5,075

Other operating expense
64

 
154

 
118

 
271

Total
2,997

 
4,195

 
10,468

 
17,507

Operating Income (Loss)
(610
)
 
(2,142
)
 
(2,599
)
 
(8,809
)
Other (Income) Expense
 
 
 
 
 
 
 
Interest expense
233

 
209

 
890

 
825

Loss on early extinguishment of debt
31

 
—

 
155

 
—

(Gains) losses on derivatives, net
(343
)
 
(222
)
 
286

 
(99
)
Other (income) expense, net
(15
)
 
40

 
(101
)
 
149

Tronox-related contingent loss
—

 
—

 
—

 
5

Total
(94
)
 
27

 
1,230

 
880

Income (Loss) Before Income Taxes
(516
)
 
(2,169
)
 
(3,829
)
 
(9,689
)
Income tax expense (benefit)
(64
)
 
(645
)
 
(1,021
)
 
(2,877
)
Net Income (Loss)
(452
)
 
(1,524
)
 
(2,808
)
 
(6,812
)
Net income (loss) attributable to noncontrolling interests
63

 
(274
)
 
263

 
(120
)
Net Income (Loss) Attributable to Common Stockholders
$
(515
)
 
$
(1,250
)
 
$
(3,071
)
 
$
(6,692
)
Per Common Share
 
 
 
 
 
 
 
Net income (loss) attributable to common stockholders—basic
$
(0.94
)
 
$
(2.45
)
 
$
(5.90
)
 
$
(13.18
)
Net income (loss) attributable to common stockholders—diluted
$
(0.94
)
 
$
(2.45
)
 
$
(5.90
)
 
$
(13.18
)
Average Number of Common Shares Outstanding—Basic
551

 
508

 
522

 
508

Average Number of Common Shares Outstanding—Diluted
551

 
508

 
522

 
508

 
 
 
 
 
 
 
 
Exploration Expense
 
 
 
 
 
 
 
Dry hole expense
$
188

 
$
193

 
$
397

 
$
1,052

Impairments of unproved properties
125

 
81

 
216

 
1,215

Geological and geophysical expense
40

 
63

 
121

 
168

Exploration overhead and other
87

 
47

 
212

 
209

Total
$
440

 
$
384

 
$
946

 
$
2,644



9

Anadarko Petroleum Corporation
(Unaudited)
 
 
 
 
 
December 31,
 
December 31,
millions
 
 
 
 
2016
 
2015
Condensed Balance Sheets
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
$
3,184

 
$
939

Accounts receivable, net of allowance
 
 
 
 
1,728

 
2,469

Other current assets
 
 
 
 
354

 
573

Net properties and equipment
 
 
 
 
32,168

 
33,751

Other assets
 
 
 
 
2,226

 
2,268

Goodwill and other intangible assets
 
 
 
 
5,904

 
6,331

Total Assets
 
 
 
 
$
45,564

 
$
46,331

Short-term debt
 
 
 
 
42

 
32

Other current liabilities
 
 
 
 
3,286

 
4,148

Long-term debt
 
 
 
 
15,281

 
15,636

Deferred income taxes
 
 
 
 
4,324

 
5,400

Asset retirement obligations
 
 
 
 
2,802

 
1,750

Other long-term liabilities
 
 
 
 
4,332

 
3,908

Common stock
 
 
 
 
57

 
52

Paid-in capital
 
 
 
 
11,875

 
9,265

Retained earnings
 
 
 
 
1,704

 
4,880

Treasury stock
 
 
 
 
(1,033
)
 
(995
)
Accumulated other comprehensive income (loss)
 
 
 
 
(391
)
 
(383
)
Total stockholders’ equity
 
 
 
 
12,212

 
12,819

Noncontrolling interests
 
 
 
 
3,285

 
2,638

Total Equity
 
 
 
 
15,497

 
15,457

Total Liabilities and Equity
 
 
 
 
$
45,564

 
$
46,331

Capitalization
 
 
 
 
 
 
 
Total debt
 
 
 
 
$
15,323

 
$
15,668

Total equity
 
 
 
 
15,497

 
15,457

Total
 
 
 
 
$
30,820

 
$
31,125

Capitalization Ratios
 
 
 
 
 
 
 
Total debt
 
 
 
 
50
%
 
50
%
Total equity
 
 
 
 
50
%
 
50
%


10

Anadarko Petroleum Corporation
(Unaudited)
Sales Volumes and Prices
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Daily Sales Volumes
 
Sales Volumes
 
Average Sales Price
 
Oil
 
Natural Gas
 
NGLs
 
Oil
 
Natural Gas
 
NGLs
 
Oil
 
Natural Gas
 
NGLs
 
MBbls/d
 
MMcf/d
 
MBbls/d
 
MMBbls
 
Bcf
 
MMBbls
 
Per Bbl
 
Per Mcf
 
Per Bbl
Quarter Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
240

 
1,881

 
116

 
22

 
173

 
10

 
$
46.31

 
$
2.56

 
$
24.24

Algeria
68

 
—

 
8

 
6

 
—

 
1

 
49.39

 
—

 
30.10

Other International
28

 
—

 
—

 
3

 
—

 
—

 
47.18

 
—

 
—

Total
336

 
1,881

 
124

 
31

 
173

 
11

 
$
47.01

 
$
2.56

 
$
24.62

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
229

 
2,068

 
112

 
21

 
190

 
10

 
$
37.83

 
$
2.08

 
$
16.86

Algeria
68

 
—

 
6

 
7

 
—

 
—

 
44.69

 
—

 
30.04

Other International
19

 
—

 
—

 
1

 
—

 
—

 
44.42

 
—

 
—

Total
316

 
2,068

 
118

 
29

 
190

 
10

 
$
39.71

 
$
2.08

 
$
17.52

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
233

 
2,093

 
122

 
85

 
766

 
44

 
$
39.06

 
$
2.04

 
$
19.32

Algeria
64

 
—

 
6

 
24

 
—

 
2

 
44.15

 
—

 
25.63

Other International
19

 
—

 
—

 
7

 
—

 
—

 
43.18

 
—

 
—

Total
316

 
2,093

 
128

 
116

 
766

 
46

 
$
40.34

 
$
2.04

 
$
19.64

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
232

 
2,334

 
124

 
85

 
852

 
45

 
$
45.00

 
$
2.36

 
$
17.03

Algeria
59

 
—

 
6

 
22

 
—

 
2

 
51.93

 
—

 
29.85

Other International
26

 
—

 
—

 
9

 
—

 
—

 
51.09

 
—

 
—

Total
317

 
2,334

 
130

 
116

 
852

 
47

 
$
46.79

 
$
2.36

 
$
17.61

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Daily Sales Volumes
MBOE/d
 
Sales Volumes
MMBOE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended December 31, 2016
774
 
71
 
 
 
 
 
 
 
 
 
 
Quarter Ended December 31, 2015
779
 
71
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2016
793
 
290
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2015
836
 
305
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales Revenue and Commodity Derivatives
 
 
 
 
 
 
 
 
Sales
 
 
Net Cash Received (Paid) from Settlement of Commodity Derivatives
millions
Oil
 
Natural Gas
 
NGLs
 
 
Oil
 
Natural Gas
 
NGLs
Quarter Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
United States
$
1,025

 
$
443

 
$
259

 
 
$
39

 
$
—

 
$
—

Algeria
309

 
—

 
22

 
 
—

 
—

 
—

Other International
120

 
—

 
—

 
 
—

 
—

 
—

Total
$
1,454

 
$
443

 
$
281

 
 
$
39

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
United States
$
799

 
$
395

 
$
173

 
 
$
—

 
$
84

 
$
—

Algeria
282

 
—

 
16

 
 
—

 
—

 
—

Other International
75

 
—

 
—

 
 
—

 
—

 
—

Total
$
1,156

 
$
395

 
$
189

 
 
$
—

 
$
84

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
United States
$
3,330

 
$
1,564

 
$
861

 
 
$
253

 
$
13

 
$
(1
)
Algeria
1,043

 
—

 
60

 
 
—

 
—

 
—

Other International
295

 
—

 
—

 
 
—

 
—

 
—

Total
$
4,668

 
$
1,564

 
$
921

 
 
$
253

 
$
13

 
$
(1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
United States
$
3,817

 
$
2,007

 
$
769

 
 
$
6

 
$
312

 
$
17

Algeria
1,125

 
—

 
64

 
 
—

 
—

 
—

Other International
478

 
—

 
—

 
 
—

 
—

 
—

Total
$
5,420

 
$
2,007

 
$
833

 
 
$
6

 
$
312

 
$
17




11

Anadarko Petroleum Corporation
Estimated Year-End Proved Reserves 2014 - 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MMBOE
 
2016
 
2015
 
2014
Proved Reserves
 
 
 
 
 
 
Beginning of year
 
2,057

 
2,858

 
2,792

Reserves additions and revisions
 
 
 
 
 
 
Discoveries and extensions
 
40

 
29

 
63

Infill-drilling additions
 
69

 
89

 
577

Drilling-related reserves additions and revisions
 
109

 
118

 
640

Other non-price-related revisions
 
191

 
289

 
(137
)
Net organic reserves additions
 
300

 
407

 
503

Acquisition of proved reserves in place
 
97

 
1

 
—

Price-related revisions
 
(147
)
 
(624
)
 
(1
)
Total reserves additions and revisions
 
250

 
(216
)
 
502

Sales in place
 
(294
)
 
(279
)
 
(124
)
Production
 
(291
)
 
(306
)
 
(312
)
End of year
 
1,722

 
2,057

 
2,858

Proved Developed Reserves
 
 
 
 
 
 
Beginning of year
 
1,632

 
1,969

 
2,003

End of year
 
1,325

 
1,632

 
1,969



12

Anadarko Petroleum Corporation
Commodity Hedge Positions
As of January 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Price per barrel
 
 
 
Volume
(MBbls/d)
 
Floor Sold
 
Floor Purchased
 
Ceiling Sold
Oil
 
 
 
 
 
 
 
 
Three-Way Collars
 
 
 
 
 
 
 
2017
 
 
 
 
 
 
 
 
WTI
 
68
$
40.00
$
50.00
$
58.84
 
Brent
 
23
$
40.00
$
50.00
$
62.64
 
 
 
91
$
40.00
$
50.00
$
59.80
 
 
 
 
 
 
 
 
 
Volume
 
Weighted Average Price per MMBtu
 
 
 
(thousand
 
 
 
 
 
 
 
 
 
MMBtu/d)
 
Floor Sold
 
Floor Purchased
 
Ceiling Sold
Natural Gas
 
 
 
 
 
 
 
 
Three-Way Collars
 
 
 
 
 
 
 
2017
 
 
682
$
2.00
$
2.75
$
3.60
 
 
 
 
 
 
 
 
 
 
2018
 
 
250
$
2.00
$
2.75
$
3.54

 
 
 
 
 
 
Interest-Rate Derivatives
As of January 31, 2017
 
 
 
 
 
 
Instrument
Notional Amt.
Reference Period
Mandatory
Termination Date
Rate Paid
Rate Received
Swap
$500 Million
Sept. 2016 – 2046
Sept. 2018
6.559%
3M LIBOR
Swap
$300 Million
Sept. 2016 – 2046
Sept. 2020
6.509%
3M LIBOR
Swap
$450 Million
Sept. 2017 – 2047
Sept. 2018
6.445%
3M LIBOR
Swap
$100 Million
Sept. 2017 – 2047
Sept. 2020
6.891%
3M LIBOR
Swap
$250 Million
Sept. 2017 – 2047
Sept. 2021
6.570%
3M LIBOR



13

Anadarko Petroleum Corporation
Reconciliation of Same-Store Sales
Average Daily Sales Volumes
 
Quarter Ended December 31, 2016
 
Quarter Ended December 31, 2015
 
Oil
 MBbls/d
 
Natural Gas MMcf/d
 
NGLs MBbls/d
 
Total MBOE/d
 
Oil
 MBbls/d
 
Natural Gas MMcf/d
 
NGLs MBbls/d
 
Total MBOE/d
U.S. Onshore
147

 
1,704

 
102

 
533

 
159

 
1,559

 
82

 
501

Deepwater Gulf of Mexico
69

 
82

 
8

 
91

 
54

 
115

 
6

 
79

International and Alaska
107

 
—

 
8

 
115

 
96

 
—

 
6

 
102

Same-Store Sales
323

 
1,786

 
118

 
739

 
309

 
1,674

 
94

 
682

Acquisition*
12

 
11

 
1

 
15

 
—

 
—

 
—

 
—

Divestitures**
1

 
84

 
5

 
20

 
7

 
394

 
24

 
97

Total
336

 
1,881

 
124

 
774

 
316

 
2,068

 
118

 
779

 
 
 
 
 
Year Ended December 31, 2016
 
Year Ended December 31, 2015
 
Oil
 MBbls/d
 
Natural Gas MMcf/d
 
NGLs MBbls/d
 
Total MBOE/d
 
Oil
 MBbls/d
 
Natural Gas MMcf/d
 
NGLs MBbls/d
 
Total MBOE/d
U.S. Onshore
155

 
1,737

 
100

 
545

 
160

 
1,618

 
92

 
522

Deepwater Gulf of Mexico
62

 
79

 
7

 
82

 
53

 
152

 
7

 
85

International and Alaska
93

 
—

 
6

 
99

 
94

 
—

 
6

 
100

Same-Store Sales
310

 
1,816

 
113

 
726

 
307

 
1,770

 
105

 
707

Acquisition*
3

 
3

 
—

 
4

 
—

 
—

 
—

 
—

Divestitures**
3

 
274

 
15

 
63

 
10

 
564

 
25

 
129

Total
316

 
2,093

 
128

 
793

 
317

 
2,334

 
130

 
836

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*
Includes volumes related to the acquisition of Gulf of Mexico assets on December 15, 2016.
**
Includes East Chalk, Wamsutter, Ozona, Elm Grove, Hugoton, Hearne, Carthage, EOR, Bossier, and Powder River Basin CBM.
.