EX-99 2 a5821107-ex99.htm EXHIBIT 99

Exhibit 99

Anadarko Announces Third-Quarter Results

Reaffirms Strong Liquidity Position,
Provides Update on Pre-Salt Discovery Offshore Brazil and
Successful Appraisal in the Gulf of Mexico

HOUSTON--(BUSINESS WIRE)--November 3, 2008--Anadarko Petroleum Corporation (NYSE:APC) today announced third-quarter 2008 net income available to common stockholders totaled $2.165 billion, or $4.62 per share (diluted). Income from continuing operations totaled $2.164 billion, or $4.62 per share (diluted). The net income results include certain items affecting comparability that are typically excluded by the investment community in published estimates. In total, these items increased net income by approximately $1.399 billion, or $3.00 per share (diluted), on an after-tax basis.(1) Cash flow from continuing operations in the third quarter of 2008 was $3.520 billion, and discretionary cash flow totaled $1.132 billion.(2)

OPERATIONAL HIGHLIGHTS

  • Increased reported sales volumes 9 percent over third-quarter 2007 from retained properties
  • Achieved production milestone of 600,000 barrels of oil equivalent (BOE) per day
  • Set new daily production records in the Greater Natural Buttes and Powder River Basin

“As illustrated by the highlights above, our third-quarter performance was very strong,” Anadarko Chairman and CEO Jim Hackett said. “At one point during the quarter, we achieved a daily record for sales volumes of 600,000 BOE. Following major back-to-back hurricanes, our employees and contractors throughout our operating regions performed in an extraordinary fashion to safely overcome the impacts of the storms – enabling us to achieve a 9-percent increase in overall reported sales volumes over third-quarter 2007 and, for the seventh consecutive quarter, meet or exceed our volume guidance.”

At Independence Hub, the company’s largest producing platform in the Gulf of Mexico, production was restored within three days of Hurricane Ike. Anadarko also demonstrated notable growth in the Rockies with new daily production records in both the Greater Natural Buttes area of Utah, where sales volumes increased nearly 40 percent for the quarter compared to the previous year, and the Powder River Basin of Wyoming, where sales volumes for the quarter were up about 55 percent year-over-year.

Third-quarter 2008 sales volumes of natural gas, crude oil and natural gas liquids totaled 51 million BOE, or 552,000 BOE per day. Third-quarter 2008 natural gas sales volumes averaged 1.994 billion cubic feet per day. Oil sales volumes in the third quarter averaged 182,000 barrels per day, and natural gas liquids sales volumes averaged 38,000 barrels per day.

EXPLORATION HIGHLIGHTS

  • Announced substantial pre-salt discovery offshore Brazil at the Wahoo prospect
  • Encountered more than 700 feet of net pay in Tonga West appraisal well in Gulf of Mexico
  • Continued U.S. onshore exploration program with encouraging results

Anadarko continues to build upon its successful international and deepwater Gulf of Mexico exploration and appraisal programs. During the third quarter, the company announced a substantial pre-salt discovery at the deepwater Wahoo prospect on block BM-C-30 in the Campos Basin offshore Brazil. Extensive logging, fluid and pressure sampling has now confirmed more than 200 feet of net pay consisting of high-quality, high-gravity crude oil in an upper zone, with additional hydrocarbon-bearing zones encountered deeper in the well. Casing is currently being run to total depth to prepare for drillstem testing in 2009 to further evaluate the multiple hydrocarbon-bearing zones. The partnership also is planning further exploration and appraisal drilling on the block in 2009. Anadarko, through a wholly owned subsidiary, operates the block with a 30-percent working interest.

“Since announcing the Wahoo pre-salt discovery in September, we have successfully reached total depth of approximately 20,000 feet, encountered an additional oil accumulation in the deeper objective and confirmed the quality of the previously announced reservoir,” Anadarko Sr. Vice President, Worldwide Exploration, Bob Daniels said. “We are very encouraged by this discovery and its similarities to the giant Jubarte field, and we look forward to working with the Brazilian government and our partners to further delineate the area’s potential.”

Anadarko plans to now move the Transocean Deepwater Millennium drillship to the Espírito Santo Basin to continue its pre-salt exploration program, which includes re-entering the Serpa prospect and drilling at least five additional pre-salt tests.

Anadarko and its partners also continue an active program offshore Ghana, where the partnership recently spud the Hyedua-2 appraisal well on the Deepwater Tano license. Prior to year end, the partnership also plans to spud the nearby Tweneboa prospect, which has similar size and seismic characteristics to the giant Jubilee field. The partners expect Jubilee to be sanctioned prior to year end.

In the Gulf of Mexico, Anadarko recently completed a successful appraisal well, located 3,000 feet to the south and up dip from the original Tonga West discovery well. The appraisal well encountered more than 700 feet of net pay in dipping formations. Anadarko is the operator with a 33.75-percent working interest.

“The Tonga West confirmation well encountered subsalt Miocene sands with much greater quality and thickness than we had anticipated,” Anadarko Sr. Vice President, Worldwide Operations, Chuck Meloy said. “This well is a tremendous success that affirms this world-class reservoir and solidifies our previous estimated resource range of 200 million to 400 million BOE. Anadarko expects to sanction the Caesar/Tonga complex this year, with first significant volumes as early as 2011.”

Anadarko’s U.S. onshore exploration programs in the Maverick Basin, and Haynesville and Marcellus Shale plays are ongoing with encouraging results. Additional details regarding Anadarko’s U.S. onshore exploration programs and other activities are available in the third-quarter 2008 Operations Report at www.anadarko.com.

FINANCIAL HIGHLIGHTS

  • Completed $600 million worth of share repurchases
  • Retired approximately $350 million of debt
  • Held strong liquidity position with a cash balance of nearly $2 billion at quarter end

“We believe we have a strong capital structure and liquidity position,” Hackett said. “We closed the quarter with a cash balance of nearly $2 billion, after completing the repurchase of $600 million worth of shares and retiring approximately $350 million of debt. Our $1.3 billion revolving credit facility remains undrawn, and we anticipate closing the divestiture of Peregrino during the fourth quarter, with net cash proceeds in excess of $1 billion. We expect to deliver upon our commitment to achieve our debt-to-cap target of between 25 percent to 35 percent by year end.”

CONFERENCE CALL TOMORROW AT 9 A.M. CST, 10 A.M. EST

Anadarko will host a conference call on Tuesday, Nov. 4, at 9 a.m. Central Standard Time (10 a.m. Eastern Standard Time) to discuss third-quarter results and the company’s outlook for the remainder of 2008. The dial-in number is 888.680.0878 in the United States or 617.213.4855 internationally. The confirmation number is 79021387. 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 also be available on the Web site for approximately 30 days following the conference call.

ANADARKO OPERATIONS REPORT

For more details on Anadarko’s operations, please refer to the comprehensive report on third-quarter 2008 activity. The report will be available at www.anadarko.com on the Investor Relations page.

FINANCIAL DATA

Nine pages of summary financial data follow, including current hedge positions, financial guidance and supplemental production guidance.

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 2007, Anadarko had 2.4 billion barrels of oil equivalent of proved reserves, making it one of the world’s largest independent oil and natural gas exploration and production companies. For more information about Anadarko, please visit www.anadarko.com.

(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 measures are useful information for investors.

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 successfully meet its production guidance, complete its announced asset divestitures, achieve debt-reduction goals and complete and commercially operate the drilling prospects identified in this news release. See “Risk Factors” in the company’s 2007 Annual Report on Form 10-K and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.

Cautionary Note to U.S. Investors: The United States Securities and Exchange Commission (“SEC”) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Anadarko uses certain terms in this news release, such as “estimated resource range,” and similar terms that the SEC’s guidelines strictly prohibit Anadarko from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in Anadarko’s Form 10-K for the year ended December 31, 2007, File No. 001-08968, available from Anadarko at www.anadarko.com or by writing Anadarko at: Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The Woodlands, Texas 77380 Attn: Investor Relations. You can also obtain this form from the SEC by calling 1-800-SEC-0330.

Anadarko Petroleum Corporation
     
 
Certain Items Affecting Comparability
 
Quarter Ended September 30, 2008
Before After Per Share
millions   Tax   Tax   (diluted)
Unrealized gains (losses) on derivatives, net $ 2,368 $ 1,508 $ 3.22
Impairments (56 ) (35 ) (0.07 )
Other adjustments     (119 )     (74 )     (0.15 )
    $ 2,193     $ 1,399     $ 3.00  
 
Quarter Ended September 30, 2007
Before After Per Share
millions   Tax   Tax   (diluted)
Unrealized gains (losses) on derivatives, net $ (33 ) $ (21 ) $ (0.04 )
Gains (losses) on divestitures, net     308       196       0.42  
    $ 275     $ 175     $ 0.38  
 
Reconciliation of GAAP to Non-GAAP Measures
 
Below is a reconciliation of cash provided by operating activities (GAAP) to discretionary cash flow and free cash flow (non-GAAP) and net income from continuing operations (GAAP) to adjusted net income from continuing operations (non-GAAP) as required under Regulation G of the Securities Exchange Act of 1934. The company uses discretionary cash flow and free cash flow to demonstrate the company’s ability to internally fund capital expenditures and to service or incur additional debt. It is useful in comparisons of oil and gas exploration and production companies because it excludes fluctuations in assets and liabilities. The company uses adjusted net income from continuing operations to evaluate the company’s operational trends and performance.
  Quarter Ended   Year to Date
September 30 September 30
millions   2008   2007   2008   2007
Cash Flow                
Net cash provided by operating activities - continuing operations $ 3,520   $ 940 $ 6,004   $ 1,823
Add back:
Change in accounts receivable (988 ) (310 ) (340 ) (1,352 )
Change in accounts payable and accrued expenses (1,371 ) 230 (548 ) 1,575
Change in other items - net     (29 )     (124 )     197       (784 )

Discretionary Cash Flow from Continuing Operations*

  $ 1,132     $ 736     $ 5,313     $ 1,262  
 

*Discretionary cash flow from continuing operations for the quarter and year to date September 30, 2008 was reduced by current tax expense of $1.1 billion and $1.7 billion, respectively. However, actual cash tax payments for the quarter and year to date September 30, 2008 were $337 million and $823 million, respectively. For the same periods of 2007, discretionary cash flow from continuing operations was reduced by current tax expense of $669 million and $3.2 billion, respectively. However, actual cash tax payments for the quarter and year to date September 30, 2007 were $530 million and $1.6 billion, respectively.

   
September 30, 2008
Quarter Year
millions   Ended   to Date
Discretionary cash flow from continuing operations $ 1,132 $ 5,313
Less: Capital expenditures     1,181       3,469

Free Cash Flow**

  $ (49 )   $ 1,844
 

**Free cash flow for the quarter and year to date September 30, 2008 was reduced by current tax expense of $1.1 billion and $1.7 billion, respectively. However, actual cash tax payments for the quarter and year to date September 30, 2008 were $337 million and $823 million, respectively.

  Quarter Ended   Quarter Ended
September 30, 2008 September 30, 2007
millions except per share amounts  

After
Tax

 

Per Share
(diluted)

 

After
Tax

 

Per Share
(diluted)

Net income from continuing operations, as reported $ 2,164   $ 4.62 $ 493   $ 1.05
Less: Certain items affecting comparability     1,399     3.00     175     0.38
Adjusted net income from continuing operations   $ 765   $ 1.62   $ 318   $ 0.67
 
Anadarko Petroleum Corporation
       
Quarter Ended Year to Date
Summary Financial Information September 30 September 30
millions except per share amounts   2008   2007   2008   2007
Revenues and Other                
Gas sales $ 2,395 $ 871 $ 5,089 $ 3,108
Oil and condensate sales 3,217 1,262 4,911 3,558
Natural gas liquids sales 244 175 703 511
Gathering, processing and marketing sales 353 348 940 1,195
Gains (losses) on divestitures and other, net     (60 )     339       270       4,458  
Total     6,149       2,995       11,913       12,830  
Costs and Expenses                
Oil and gas operating 274 256 778 868
Oil and gas transportation and other 140 113 400 342
Exploration 373 253 880 614
Gathering, processing and marketing 265 217 679 840
General and administrative 216 171 619 681
Depreciation, depletion and amortization 844 655 2,438 2,090
Other taxes 424 269 1,306 869
Impairments     56       -       67       40  
Total     2,592       1,934       7,167       6,344  
Operating Income     3,557       1,061       4,746       6,486  
Interest Expense, Other (Income) Expense and Minority Interests                
Interest expense 180 222 558 861
Other (income) expense 22 (8 ) (5 ) (60 )
Minority interests     10       -       15       -  
Total     212       214       568       801  
Income from Continuing Operations Before Income Taxes     3,345       847       4,178       5,685  
Income Tax Expense     1,181       354       1,761       2,191  
Income from Continuing Operations     2,164       493       2,417       3,494  
Income (loss) from Discontinued Operations, net of taxes     1       (12 )     58       22  
Net Income     2,165       481       2,475       3,516  
Preferred Stock Dividends     -       1       1       2  
Net Income Available to Common Stockholders   $ 2,165     $ 480     $ 2,474     $ 3,514  
Per Common Share                
Income from continuing operations - basic $ 4.65 $ 1.06 $ 5.17 $ 7.51
Income from continuing operations - diluted $ 4.62 $ 1.05 $ 5.14 $ 7.48
Income (loss) from discontinued operations, net of taxes - basic $ - $ (0.03 ) $ 0.13 $ 0.05
Income (loss) from discontinued operations, net of taxes - diluted $ - $ (0.03 ) $ 0.12 $ 0.05
Net income available to common stockholders - basic $ 4.65 $ 1.03 $ 5.29 $ 7.56
Net income available to common stockholders - diluted   $ 4.62     $ 1.03     $ 5.26     $ 7.53  
Average Number of Common Shares Outstanding - Basic     466       466       467       465  
Average Number of Common Shares Outstanding - Diluted     468       468       470       467  
                 
Exploration Expense                
Dry hole expense $ 143 $ 111 $ 232 $ 222
Impairments of unproved properties 162 86 405 232
Geological and geophysical expense 30 27 122 91
Exploration overhead and other     38       29       121       69  
Total   $ 373     $ 253     $ 880     $ 614  
 
Anadarko Petroleum Corporation
   

Quarter Ended

Year to Date
Summary Financial Information

September 30

September 30
millions 2008   2007   2008   2007
Cash Flow from Operating Activities              
Net income $ 2,165 $ 481 $ 2,475 $ 3,516
Less income from discontinued operations, net of taxes 1 (12 ) 58 22
Depreciation, depletion and amortization 844 655 2,438 2,090
Deferred income taxes 57 (315 ) 94 (1,060 )
Dry hole expense and impairments of unproved properties 305 197 637 454
Minority interests 10 - 15 -
Impairments 56 - 67 40
(Gains) losses on divestitures, net (1 ) (308 ) (165 ) (4,400 )
Unrealized (gains) losses on derivatives (2,368 ) (13 ) (277 ) 544
Other noncash items   65       27       87       100  
Discretionary Cash Flow from Continuing Operations 1,132 736 5,313 1,262
(Increase) decrease in accounts receivable 988 310 340 1,352
Increase (decrease) in accounts payable and accrued expenses 1,371 (230 ) 548 (1,575 )
Other items - net   29       124       (197 )     784  
Cash provided by (used in) operating activities - continuing operations 3,520 940 6,004 1,823
Cash provided by (used in) operating activities - discontinued operations   (4 )     28       (4 )     193  

Net cash provided by (used in) operating activities*

$ 3,516     $ 968     $ 6,000     $ 2,016  
               
 
               
Capital Expenditures $ 1,181     $ 826     $ 3,469     $ 2,993  
 

*Cash flow from operating activities for the quarter ended and year to date September 30, 2008 was reduced by $87 million and $131 million, respectively, due to the impact of income taxes on divestitures. Cash flow from operating activities for the quarter ended and year to date September 30, 2007 was reduced by $530 million and $1.6 billion, respectively, due to the impact of income taxes on divestitures. Cash flow from investing activities includes the proceeds from the divestitures and provides cash for payment of related taxes.

 
September 30, December 31,
          2008   2007
Condensed Balance Sheet              
Cash and cash equivalents $ 1,980 $ 1,268
Other current assets 3,003 3,218
Current assets held for sale 3 -
Net properties and equipment 36,877 37,451
Other assets 1,118 1,030
Goodwill and other intangible assets 5,100 5,166
Long-term assets held for sale           1,148       318  
Total Assets         $ 49,229     $ 48,451  
Current debt $ 1,708 $ 1,396
Other current liabilities 4,479 3,838
Current liabilities associated with assets held for sale 45 -
Long-term debt 9,120 11,151
Midstream subsidiary note to a related party 1,870 2,200
Other long-term liabilities 13,138 13,496
Long-term liabilities associated with assets held for sale 299 6
Minority interests 359 -
Stockholders' equity           18,211       16,364  
Total Liabilities and Stockholders' Equity         $ 49,229     $ 48,451  
Capitalization              
Total debt $ 12,698 $ 14,747
Stockholders' equity           18,211       16,364  
Total         $ 30,909     $ 31,111  
Capitalization Ratios              
Total debt 41 % 47 %
Stockholders' equity           59 %     53 %
Anadarko Petroleum Corporation
     
Quarter Ended Year to Date
Sales Volumes and Prices September 30 September 30
    2008   2007   2008   2007
Natural Gas                
United States                
Volumes, billion cubic feet 183 151 548 513
Average daily volumes, million cubic feet per day 1,994 1,637 2,000 1,877
Price per thousand cubic feet excluding derivatives   $ 8.36     $ 4.70     $ 8.55     $ 5.75  
Realized gain (loss) on derivatives 0.13 0.84 (0.15 ) 0.73
Unrealized gain (loss) on derivatives     4.57       0.24       0.89       (0.42 )
Total gains (losses) on derivatives   $ 4.70     $ 1.08     $ 0.74     $ 0.31  
Total price per thousand cubic feet $ 13.06 $ 5.78 $ 9.29 $ 6.06
                 
Crude Oil and Condensate                
United States                
Volumes, million barrels 9 10 32 36
Average daily volumes, thousand barrels per day 103 116 117 134
Price per barrel excluding derivatives   $ 114.26     $ 72.12     $ 107.89     $ 61.13  
Realized gain (loss) on derivatives (15.27 ) 0.65 (11.35 ) 3.83
Unrealized gain (loss) on derivatives     106.14       (7.21 )     (2.90 )     (8.20 )
Total gains (losses) on derivatives   $ 90.87     $ (6.56 )   $ (14.25 )   $ (4.37 )
Price per barrel   $ 205.13     $ 65.56     $ 93.64     $ 56.76  
Algeria                
Volumes, million barrels 6 6 16 18
Average daily volumes, thousand barrels per day 64 65 57 64
Price per barrel excluding derivatives   $ 116.55     $ 75.83     $ 114.51     $ 68.08  
Realized gain (loss) on derivatives (8.39 ) - (8.20 ) -
Unrealized gain (loss) on derivatives     85.29       1.38       (9.92 )     (1.72 )
Total gains (losses) on derivatives   $ 76.90     $ 1.38     $ (18.12 )   $ (1.72 )
Price per barrel   $ 193.45     $ 77.21     $ 96.39     $ 66.36  
Other International                
Volumes, million barrels 1 2 4 6
Average daily volumes, thousand barrels per day 15 17 16 21
Price per barrel   $ 105.28     $ 63.52     $ 98.73     $ 56.13  
Total                
Volumes, million barrels 16 18 52 60
Average daily volumes, thousand barrels per day 182 198 190 219
Price per barrel excluding derivatives   $ 114.34     $ 72.63     $ 109.10     $ 62.68  
Realized gain (loss) on derivatives (11.60 ) 0.38 (9.42 ) 2.35
Unrealized gain (loss) on derivatives     90.11       (3.76 )     (4.77 )     (5.53 )
Total gains (losses) on derivatives   $ 78.51     $ (3.38 )   $ (14.19 )   $ (3.18 )
Total price per barrel $ 192.85 $ 69.25 $ 94.91 $ 59.50
                 
Natural Gas Liquids                
United States                
Volumes, million barrels 4 4 11 12
Average daily volumes, thousand barrels per day 38 39 39 45
Total price per barrel   $ 69.30     $ 48.39     $ 65.17     $ 41.57  
Total Barrels of Oil Equivalent (BOE)                
Volumes, million BOE 51 47 154 158
Average daily volumes, thousand BOE per day     552       510       562       577  
Anadarko Petroleum Corporation
Financial and Operating Guidance
Continuing Operations
As of November 4, 2008
           
4th Quarter Full Year
2008 Forecast 2008 Forecast
 
Units Units
 
Total Sales (MMBOE)   50 - 53   204 - 207
 
Crude Oil (MBbl/d): 155 - 165 180 - 185
 
United States 75 - 86 106 - 108
Algeria 60 - 65 58 - 60
Other International 15 - 16 15 - 17
 
Natural Gas (MMcf/d):
 
United States 2,110 - 2,140 2,030 - 2,040
 
Natural Gas Liquids (MBbl/d):
 
United States 35 - 38 38 - 40
 
 
 
                         
 

$ / Unit

$ / Unit

Price Differentials vs NYMEX (w/o hedges)
 
Crude Oil ($/Bbl): (2.50 ) - (4.50 ) (3.80 ) - (4.50 )
 
United States (3.00 ) - (5.00 ) (4.50 ) - (5.00 )
Algeria - - (2.00 ) - - (0.50 )
Other International (9.00 ) - (11.00 ) (13.00 ) - (14.00 )
 
Natural Gas ($/Mcf):
 
United States (1.50 ) - (2.00 ) (1.25 ) - (1.75 )
Anadarko Petroleum Corporation
Financial and Operating Guidance
Continuing Operations
As of November 4, 2008
           
4th Quarter Full Year
2008 Forecast 2008 Forecast
 

$ MM

$ MM

Other Revenues:
 
Gathering, Processing & Marketing Margins   85 - 95   345 - 355
Minerals and Other 25 - 35 170 - 180
                         
 
Costs and Expenses:
$ / Boe $ / Boe
 
Oil & Gas Lease Operating 6.00 - 6.50 5.30 - 5.50
Oil & Gas Transportation and Other 2.50 - 2.75 2.50 - 2.70
Depreciation, Depletion and Amortization 15.00 - 15.50 15.60 - 15.75
Production Taxes (% of Revenue) 12.5 % - 13.5 % 12.5 % - 13.5 %
 

$ MM

$ MM

 
General and Administrative 210 - 225 835 - 850
 
Exploration Expense
Non-Cash 200 - 220 780 - 800
Cash 110 - 120 325 - 335
 
Interest Expense 175 - 185 735 - 745
Other (Income) Expense (10 ) - 10 (15 ) - 5
 
Effective Tax Rate 35 % - 40 % 40 % - 45 %
                         
 
Avg. Shares Outstanding (MM)
 
Basic 460 - 462 466 - 468
Diluted 463 - 464 463 - 465
                         
 

$ MM

$ MM

 
Capital Investment 1,275 - 1,375 4,650 - 4,750
 
Capital Projects 1,265 - 1,345 4,540 - 4,620
Capitalized Interest 10 - 30 110 - 130
Anadarko Petroleum Corporation
Commodity Hedge Positions (Excluding Natural Gas Basis)
As of November 4, 2008
       
 
 

 

Weighted Average Price per MMBtu
 

Volume (thousand MMBtu/d)

Floor Sold Floor Purchased Ceiling Sold
Natural Gas
Three-Way Collars
Remainder of 2008
500 $ 5.00 $ 7.50 $ 14.26
900 $ 5.50 $ 7.50 $ 9.14
1,400 $ 5.32 $ 7.50 $ 10.97
 

2009

530 $ 5.45 $ 7.50 $ 11.25
 
 
 
 
 
 
 
 

 

Weighted Average Price per barrel
 

Volume (thousand MBbls/d)

Floor Sold Floor Purchased Ceiling Sold
Crude Oil
Three-Way Collars
Remainder of 2008
31 $ 34.09 $ 49.09 $ 87.09
20 $ 45.00 60.00 $ 87.38
35 $ 45.00 $ 60.00 $ 101.39
86 $ 41.07 $ 56.07 $ 92.98
 

2009

48 $ 37.51 $ 52.51 $ 87.04
2010 18 $ 34.18 $ 49.19 $ 86.76
2011 3 $ 35.00 $ 50.00 $ 86.00
2012 2 $ 35.00 $ 50.00 $ 92.50
Anadarko Petroleum Corporation
Natural Gas Basis Hedge Positions
As of November 4, 2008
 

 

 

 

 

Volume (thousand MMBtu/d)

Price per MMBtu

Basis Swaps
Remainder of 2008

Gulf Coast

560 $ (0.24 )
Mid Continent 365 $ (1.01 )
Rocky Mountains 455 $ (1.47 )
West Texas 35 $ (0.92 )
1,415 $ (0.85 )
 
2009
Gulf Coast 315 $ (0.15 )
Mid Continent 330 $ (0.85 )
Rocky Mountains 555 $ (1.25 )
1,200 $ (0.85 )
 
2010
Mid Continent 125 $ (0.83 )
Rocky Mountains 340 $ (1.28 )
465 $ (1.16 )
 
 
 
Rockies Export Firm Transportation
As of November 4, 2008
Daily Volume (MMBtu's)
by Pricing Point
Delivery/Pricing Point
Remainder of 2008
Mid Continent 491
West Coast 88
San Juan 15
594
 
2009
Mid Continent 491
West Coast 88
San Juan 15
594
 

2010*

Mid Continent 491
West Coast 88
San Juan 15
594

*New agreement with Bison to begin in November 2010

Anadarko Petroleum Corporation
Retained Properties Sales
           
Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007 FY 2007
Actuals Actuals Actuals Actuals Actuals Actuals
 
 
TOTAL SALES (MMBOE) 48.5 49.2 46.8 46.5 53.1 195.7
Natural Gas (MMcf/d) 1,791.5 1,794.3 1,639.1 1,646.9 2,013.0 1,774.2
Crude Oil (MBbl/d) 203.4 207.9 202.0 192.0 203.8 201.5
Natural Gas Liquids (MBbl/d) 34.2 39.2 39.0 39.4 37.9 38.9
 
 
ROCKIES
Natural Gas (MMcf/d) 917.2 934.4 840.4 849.3 909.4 883.2
Crude Oil (MBbl/d) 23.1 23.4 23.8 24.0 26.7 24.5
Natural Gas Liquids (MBbl/d) 16.9 16.2 15.2 15.8 14.7 15.5
Total Sales (MMBOE) 17.4 17.6 16.3 16.7 17.7 68.3
 
SOUTHERN
Natural Gas (MMcf/d) 639.5 645.3 617.3 565.6 589.4 604.5
Crude Oil (MBbl/d) 12.2 10.9 10.2 8.6 10.2 10.0
Natural Gas Liquids (MBbl/d) 10.3 14.3 14.4 13.8 13.9 14.2
Total Sales (MMBOE) 11.6 11.9 11.6 10.7 11.3 45.6
 
GULF OF MEXICO
Natural Gas (MMcf/d) 239.7 223.2 200.5 240.0 522.1 297.3
Crude Oil (MBbl/d) 63.0 61.3 67.2 62.8 62.1 63.4
Natural Gas Liquids (MBbl/d) 4.2 4.0 4.6 5.0 6.2 5.0
Total Sales (MMBOE) 9.6 9.2 9.6 9.9 14.3 43.0
 
INTERNATIONAL / FRONTIER
Natural Gas (MMcf/d) 0.4 0.3 0.3 0.3 0.3 0.3
Crude Oil (MBbl/d) 105.1 112.4 100.8 96.6 104.9 103.6
Natural Gas Liquids (MBbl/d) - - - - - -
Total Sales (MMBOE) 9.7 10.1 9.2 8.9 9.7 37.8

CONTACT:
Anadarko Petroleum Corporation, Houston
MEDIA:
John Christiansen, 832-636-8736
john.christiansen@anadarko.com
or
Paula Beasley, 832-636-8765
paula.beasley@anadarko.com
or
INVESTORS:
John Colglazier, 832-636-2306
john.colglazier@anadarko.com
or
Chris Campbell, CFA, 832-636-8434
chris.campbell@anadarko.com
or
Danny Hart, 832-636-1355
danny.hart@anadarko.com