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Segment Information
 9 Months Ended
Sep. 30, 2012
Disclosure Text Block [Abstract]  
Segment Information

14.  Segment Information

 

       Anadarko's business segments are separately managed due to distinct operational differences and unique technology, distribution, and marketing requirements. The Company's three reporting segments are oil and gas exploration and production, midstream, and marketing. The oil and gas exploration and production segment explores for and produces natural gas, crude oil, condensate, and NGLs. The midstream segment engages in gathering, processing, treating, and transporting Anadarko and third-party oil, natural-gas, and NGLs production. The midstream reporting segment consists of two operating segments, WES and other midstream activities, which are aggregated into one reporting segment due to similar financial and operating characteristics. The marketing segment sells most of Anadarko's production, as well as third-party purchased volumes.

       To assess the performance of Anadarko's operating segments, the chief operating decision maker analyzes Adjusted EBITDAX. The Company defines Adjusted EBITDAX as income (loss) before income taxes; interest expense; exploration expense; depreciation, depletion, and amortization (DD&A); impairments; Deepwater Horizon settlement and related costs; Algeria exceptional profits tax settlement; Tronox-related contingent loss; unrealized (gains) losses on derivatives, net; and realized (gains) losses on other derivatives, net, less net income attributable to noncontrolling interests. The Company's definition of Adjusted EBITDAX excludes interest expense to allow for assessment of segment operating results without regard to Anadarko's financing methods or capital structure. Adjusted EBITDAX also excludes exploration expense, as it is not an indicator of operating efficiency for a given reporting period. However, exploration expense is monitored by management as part of costs incurred in exploration and development activities. Similarly, DD&A and impairments are excluded from Adjusted EBITDAX as a measure of segment operating performance because capital expenditures are evaluated at the time capital costs are incurred. Anadarko's definition of Adjusted EBITDAX excludes Deepwater Horizon settlement and related costs, Algeria exceptional profits tax settlement, and Tronox-related contingent loss, as these costs are outside the normal operations of the Company. See Note 11—Contingencies. Finally, unrealized (gains) losses on derivatives, net and realized (gains) losses on other derivatives, net are excluded from Adjusted EBITDAX because these (gains) losses are not considered a measure of asset operating performance. Management believes that the presentation of Adjusted EBITDAX provides information useful in assessing the Company's financial condition and results of operations and that Adjusted EBITDAX is a widely accepted financial indicator of a company's ability to incur and service debt, fund capital expenditures, and make distributions to stockholders.

       Adjusted EBITDAX, as defined by Anadarko, may not be comparable to similarly titled measures used by other companies and should be considered in conjunction with net income (loss) attributable to common stockholders and other performance measures, such as operating income or cash flows from operating activities. Below is a reconciliation of consolidated Adjusted EBITDAX to income (loss) before income taxes.

             
  Three Months Ended Nine Months Ended
  September 30, September 30,
millions2012 2011 2012 2011
Income (loss) before income taxes$390 $(4,496) $3,019 $(2,991)
Exploration expense 297  307  1,662  722
DD&A 979  932  2,936  2,902
Impairments 4  183  166  287
Deepwater Horizon settlement and related costs 4  4,042  15  4,077
Algeria exceptional profits tax settlement (1) 7   —  (1,797)   —
Tronox-related contingent loss (1)  —   —  (250)   —
Interest expense 185  206  561  642
Unrealized (gains) losses on derivatives, net 456  692  539  767
Realized (gains) losses on other derivatives, net (1)  —   —  2  2
Less: Net income attributable to noncontrolling interests 21  23  67  62
Consolidated Adjusted EBITDAX$2,301 $1,843 $6,786 $6,346
             

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(1)        In the first quarter of 2012, the Company revised the definition of Adjusted EBITDAX to exclude Algeria exceptional profits tax settlement, Tronox-related contingent loss, and realized (gains) losses on other derivatives, net. Prior periods have been adjusted to reflect this change.

       The following presents selected financial information for Anadarko's reporting segments. Information presented below as “Other and Intersegment Eliminations” includes results from hard-minerals non-operated joint ventures and royalty arrangements, and corporate, financing, and certain hedging activities.

                
 Oil and Gas     Other and  
 Exploration     Intersegment  
millions& Production Midstream Marketing Eliminations Total
Three Months Ended September 30, 2012              
Sales revenues$1,393 $80 $1,810 $ — $3,283
Intersegment revenues 1,587  232  (1,682)  (137)   —
Gains (losses) on divestitures and other, net 12  (6)   —  43  49
 Total revenues and other 2,992  306  128  (94)  3,332
Operating costs and expenses (1) 840  182  152  51  1,225
Realized (gains) losses on commodity              
 derivatives, net  —   —   —  (200)  (200)
Other (income) expense, net (2)  —   —   —  (10)  (10)
Net income attributable to              
 noncontrolling interests  —  21   —   —  21
 Total expenses and other 840  203  152  (159)  1,036
Unrealized (gains) losses on derivatives, net               
 included in marketing revenue  —   —  5   —  5
Adjusted EBITDAX$2,152 $103 $(19) $65 $2,301
                
Three Months Ended September 30, 2011              
Sales revenues$1,801 $76 $1,507 $ — $3,384
Intersegment revenues 1,244  251  (1,386)  (109)   —
Gains (losses) on divestitures and other, net (193)  (31)   —  39  (185)
 Total revenues and other 2,852  296  121  (70)  3,199
Operating costs and expenses (1) 955  210  143  53  1,361
Realized (gains) losses on commodity              
 derivatives, net  —   —   —  (71)  (71)
Other (income) expense, net (2)  —   —   —  40  40
Net income attributable to              
 noncontrolling interests  —  23   —   —  23
 Total expenses and other 955  233  143  22  1,353
Unrealized (gains) losses on derivatives, net               
 included in marketing revenue  —   —  (3)   —  (3)
Adjusted EBITDAX$1,897 $63 $(25) $(92) $1,843

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(1)        Operating costs and expenses excludes exploration expense, DD&A, impairments, Deepwater Horizon settlement and related costs, and Algeria exceptional profits tax settlement since these expenses are excluded from Adjusted EBITDAX.

(2)        Other (income) expense, net excludes Tronox-related contingent loss since this expense is excluded from Adjusted EBITDAX.

                
 Oil and Gas     Other and  
 Exploration     Intersegment  
millions& Production Midstream Marketing Eliminations Total
Nine Months Ended September 30, 2012              
Sales revenues$5,180 $248 $4,467 $ — $9,895
Intersegment revenues 3,796  701  (4,101)  (396)   —
Gains (losses) on divestitures and other, net (17)  (8)   —  131  106
 Total revenues and other 8,959  941  366  (265)  10,001
Operating costs and expenses (1) 2,639  545  464  132  3,780
Realized (gains) losses on commodity              
 derivatives, net  —   —   —  (600)  (600)
Other (income) expense, net (2)  —   —   —  (14)  (14)
Net income attributable to              
 noncontrolling interests  —  67   —   —  67
 Total expenses and other 2,639  612  464  (482)  3,233
Unrealized (gains) losses on derivatives, net               
 included in marketing revenue  —   —  18   —  18
Adjusted EBITDAX$6,320 $329 $(80) $217 $6,786
                
Nine Months Ended September 30, 2011              
Sales revenues$5,668 $238 $4,436 $ — $10,342
Intersegment revenues 3,699  684  (4,066)  (317)   —
Gains (losses) on divestitures and other, net (307)  (11)   —  104  (214)
 Total revenues and other 9,060  911  370  (213)  10,128
Operating costs and expenses (1) 2,717  575  414  163  3,869
Realized (gains) losses on commodity              
 derivatives, net  —   —   —  (155)  (155)
Other (income) expense, net (2)  —   —   —  (2)  (2)
Net income attributable to              
 noncontrolling interests  —  62   —   —  62
 Total expenses and other 2,717  637  414  6  3,774
Unrealized (gains) losses on derivatives, net               
 included in marketing revenue  —   —  (8)   —  (8)
Adjusted EBITDAX$6,343 $274 $(52) $(219) $6,346

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(1)        Operating costs and expenses excludes exploration expense, DD&A, impairments, Deepwater Horizon settlement and related costs, and Algeria exceptional profits tax settlement since these expenses are excluded from Adjusted EBITDAX.

(2)        Other (income) expense, net excludes Tronox-related contingent loss since this expense is excluded from Adjusted EBITDAX.