Anadarko Announces 2012 Fourth-Quarter and Full-Year Results

Mon Feb 4, 2013 4:05pm EST

* Reuters is not responsible for the content in this press release.

  HOUSTON, TX, Feb 04 (Marketwire) -- 
Anadarko Petroleum Corporation (NYSE: APC) today announced 2012
fourth-quarter results, reporting net income attributable to common
stockholders of $203 million, or $.40 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 $254 million, or $.51 per share (diluted) on an after-tax
basis.(1) Cash flow from operating activities in the fourth quarter of
2012 was $2.220 billion. Discretionary cash flow for the quarter totaled
$1.612 billion.(2)

    For the year ended Dec. 31, 2012, Anadarko reported net income
attributable to common stockholders of $2.391 billion, or $4.74 per share
(diluted), and full-year 2012 cash flow from operating activities was
$8.339 billion. Discretionary cash flow for the year totaled $7.157
billion.

    2012 Operational Highlights


--  Delivered record sales volumes, representing an 8-percent increase
    over 2011
--  Achieved gross processed production milestones of 100,000 barrels of
    oil equivalent (BOE) per day in four U.S. onshore plays
--  Added 434 million BOE of proved reserves, replacing 162 percent of
    production, before the effects of price revisions
--  Announced two of the world's largest discoveries of 2012 offshore
    Mozambique

    

"Anadarko's outstanding operational results in 2012 demonstrated the
flexibility and strength of our capital-efficient portfolio," said
Anadarko President and CEO Al Walker. "We achieved record production,
highlighted by a 25,000 barrel-per-day increase in higher-margin liquids
sales volumes over 2011, while continuing to safely improve efficiencies
in every segment of our business. We achieved a reserve-replacement ratio
of 162 percent, before the effects of price revisions, at competitive
costs, and we remain on track to meet our goal of 3 billion BOE of proved
reserves by the end of 2014. We also made significant progress advancing
several large-scale development projects, contributing to our transparent
future growth. We delivered a 67-percent success rate in 2012 from our
deepwater exploration and appraisal drilling program, where we've had a
very strong three-year average success rate of almost 70 percent. The
combination of industry-leading deepwater exploration success and strong,
capital-efficient operating results gives Anadarko a track record our
employees are very proud of and look forward to building upon in 2013."

    2012 Sales Volumes and Proved Reserves
 Anadarko's full-year sales
volumes of natural gas, crude oil and natural gas liquids (NGLs) totaled
a record 268 million BOE, or approximately 732,000 BOE per day, an
increase of 8 percent over full-year 2011 sales volumes of approximately
248 million BOE. Fourth-quarter 2012 sales volumes of natural gas, crude
oil and NGLs totaled 68 million BOE, or 741,000 BOE per day.

    Anadarko added 434 million BOE of proved reserves in 2012, before the
effects of price revisions, and incurred oil and natural gas exploration
and development costs of $6.358 billion.(2) The company estimates its
proved reserves at year-end 2012 totaled 2.56 billion BOE, with 74
percent of its reserves in the proved developed category and 26 percent
categorized as proved undeveloped. At year-end 2012, Anadarko's proved
reserves were comprised of 46 percent liquids and 54 percent natural gas. 

    2012 U.S. Onshore Highlights
 Anadarko's U.S. onshore operating areas
achieved a 28-percent increase in oil sales volumes for the full year
relative to 2011. As announced in December, the company achieved gross
processed production milestones of 100,000 BOE per day in four core
growth plays (Wattenberg, Eagleford, Greater Natural Buttes and
Marcellus), and made significant progress to enable future production
growth throughout its U.S. onshore portfolio by continuing to expand its
large and growing midstream infrastructure.

    During 2012, Anadarko increased the net estimated resource potential in
the core of its liquids-rich Wattenberg Horizontal play to a new range of
1.0 billion to 1.5 billion BOE, with significant additional potential on
the company's large mineral interest outside the core of the field. The
Wattenberg field continues to generate outstanding economics, with rates
of return in excess of 100 percent, and delivered sales volumes growth of
more than 25 percent over 2011, including a 41-percent increase in oil
sales volumes. 

    In the liquids-rich Eagleford Shale, Anadarko achieved a 93-percent
increase in sales volumes and continued to significantly improve drilling
and completions performance over 2011. By the end of 2012, drilling cycle
times in the field averaged 9.2 days from spud to rig release,
representing a 26-percent improvement over the fourth quarter of 2011.
Other core areas that demonstrated record sales-volumes growth in 2012
included Greater Natural Buttes, Marcellus, Permian oil and the East
Texas Horizontal play.

    2012 International and Deepwater Highlights
 In 2012, Anadarko continued
a robust worldwide exploration and appraisal program, participating in
more than 25 deepwater wells. As previously announced, the company made
two new significant natural gas discoveries offshore Mozambique during
2012 at the Golfinho and Atum prospects. These discoveries more than
doubled Anadarko's previous estimated recoverable resources in the
operated Offshore Area 1 to a range of 35 trillion cubic feet (Tcf) to
65-plus Tcf. Anadarko also continued its active appraisal drilling and
testing programs, the results of which verified the high deliverability
of both the Prosperidade and Golfinho/Atum complexes.

    The company continued to advance the Mozambique liquefied natural gas
(LNG) development toward first sales in 2018. In December, Anadarko
reached Heads of Agreement with Eni, establishing foundational principles
for the coordinated development of common natural gas reservoirs in
Offshore Areas 1 and 4. Anadarko also awarded competitive Front-End
Engineering and Design contracts for both the offshore installation and
an initial, four-train onshore LNG park. 

    In West Africa, the company achieved significant exploration and
appraisal success in discovering and delineating oil opportunities
offshore Ghana and Cote d'Ivoire. In the Deepwater Tano Block offshore
Ghana, Anadarko and its partners continued to advance the TEN (Tweneboa,
Enyenra and Ntomme) complex by drilling three successful
exploration/appraisal wells and submitting a Plan of Development to the
Ghanaian government. The partnership also increased production at Jubilee
to more than 110,000 barrels of oil per day, through the successful
application of acid jobs and the startup of the initial phase-1A drilling
program. The company's Paon discovery offshore Cote d'Ivoire confirmed
the extension of the upper Cretaceous fan play and could potentially
anchor a new oil development. 

    The company achieved first oil in March at its Caesar/Tonga mega project
in the deepwater Gulf of Mexico and, during the fourth quarter, drilled
another successful development well in the field. Anadarko advanced its
Heidelberg discovery by ordering long-lead items and expects to seek
project sanction by mid-year 2013. In addition, the company drilled its
first development well at its sanctioned Lucius development, encountering
910 net feet of oil pay.

    In 2013, Anadarko is continuing its active international and deepwater
drilling program with exploration, appraisal, completions and development
activities under way in the Gulf of Mexico. Internationally, Anadarko
recently spud the first of two wells offshore Kenya, and expects to
achieve initial oil production during the first quarter of 2013 from the
first of three facilities in the El Merk complex in Algeria. 

    2012 Financial Highlights


--  Fully repaid $2.5 billion of borrowings under the company's revolving
    credit facility
--  Accelerated value by monetizing more than $1 billion in assets
--  Resolved the Algerian TPE dispute, providing a $4.4 billion
    net-present-value benefit
--  Successfully completed the Western Gas Equity Partners, LP (NYSE: WGP)
    initial public offering

    

"Anadarko further strengthened its balance sheet during 2012 by
repaying all borrowings under its revolving credit facility and improving
the company's net-debt-to-adjusted-capitalization(2) ratio from 41
percent at year-end 2011 to 34 percent at year-end 2012," Walker said.
"We ended the year with $2.5 billion of cash on hand, bolstered by the
collection of $1 billion associated with the Algeria exceptional profits
tax resolution. During the year, we actively managed our portfolio
through various monetizations that accelerated significant value for our
shareholders. Among these monetizations were the previously announced
Lucius and Salt Creek carried-interest agreements, as well as a $114
million transaction for approximately 59,000 acres south of our core
Wattenberg activity, while retaining a 20-percent royalty interest on our
fee mineral acreage. We were also very pleased with the initial public
offering of WGP, which established a current market value of more than
$6.5 billion for Anadarko's remaining 91-percent interest. Value
acceleration will continue to be a priority for us in 2013, as
demonstrated by the recently announced divestiture of our equity interest
in the OCI soda ash business for $310 million and additional potential
consideration."

    Anadarko generated $852 million of adjusted free cash flow(2) during the
year, which includes the impact of $529 million of capital expenditures
incurred by Western Gas Partners, LP (NYSE: WES). 

    Anadarko plans to communicate its 2013 capital program and performance
expectations during an Investor Conference Call, scheduled for Feb. 20,
2013.

    Operations Report
 For more details on Anadarko's 2012 operations, please
refer to the operations report on fourth-quarter 2012 activity. The
report is available at www.anadarko.com on the Investor Relations page.

    Conference Call Tomorrow at 9 a.m. CST, 10 a.m. EST
 Anadarko will host a
conference call on Tuesday, February 5, at 9 a.m. Central Standard Time
(10 a.m. Eastern Standard Time) to discuss fourth-quarter and full-year
results. The dial-in number is 855.812.0464 in the United States or
970.300.2271 for international calls. The confirmation number is
69777651. 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 website for approximately 30 days following the
call. 

    Financial Data
 Seven pages of summary financial data follow, including
proved reserves, costs incurred and the company's current hedge positions.

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

    (2) See the accompanying tables for reconciliations of GAAP to non-GAAP
financial measures and a statement indicating why management believes the
non-GAAP 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 finalize year-end reserves,
drill, develop and commercially operate the drilling prospects identified
in this news release, continue to coordinate development activities with
Eni in Mozambique, successfully plan, secure necessary government
approvals, finance, build and operate an LNG project and WGP's market
performance and the impact on Anadarko's ownership interest. See "Risk
Factors" in the company's 2011 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. 

    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, probable and possible
reserves that meet the SEC's definitions for such terms. Anadarko uses
certain terms in this news release, such as "net estimated resource
potential," "estimated recoverable resources," 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 Dec. 31, 2011, 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. This form may also be
obtained by contacting the SEC at 1-800-SEC-0330.

                       Anadarko Petroleum Corporation
                   Certain Items Affecting Comparability

                                            Quarter Ended December 31, 2012 
                                           -------------------------------- 
                                             Before     After     Per Share 
millions except per-share amounts             Tax        Tax      (diluted) 
                                           ---------  ---------  ---------- 
Unrealized gains (losses) on derivatives,
 net*                                      $     162  $     102  $     0.20 
Realized losses on interest-rate swaps           (64)       (41)      (0.09)
Gains (losses) on divestitures, net              (48)       (52)      (0.10)
Impairments                                     (223)      (143)      (0.28)
Change in uncertain tax positions (FIN 48)        --        (38)      (0.08)
Deepwater Horizon settlement and related
 costs                                            (3)        (2)         -- 
WES general partner Unit Appreciation
 Rights                                         (126)       (80)      (0.16)
                                           ---------  ---------  ---------- 
                                           $    (302) $    (254) $    (0.51)
                                           =========  =========  ========== 


    
* For the quarter ended December 31, 2012, before-tax unrealized
gains (losses) on derivatives, net includes $3 million related to
commodity derivatives, $157 million related to other derivatives, and $2
million related to gathering, processing, and marketing sales. 

                                            Quarter Ended December 31, 2011 
                                           -------------------------------- 
                                             Before     After     Per Share 
millions except per-share amounts             Tax        Tax      (diluted) 
                                           ---------  ---------  ---------- 
Unrealized gains (losses) on derivatives,
 net*                                      $     151  $      96  $     0.19 
Realized losses on interest-rate swaps           (57)       (36)      (0.07)
Gains (losses) on divestitures, net              265        247        0.49 
Impairments, including unproved properties    (1,556)    (1,012)      (2.03)
Change in uncertain tax positions (FIN 48)        --        (11)      (0.02)
Deepwater Horizon settlement and related
 costs                                           147         94        0.19 
Tronox-related contingent loss                  (250)      (159)      (0.32)
                                           ---------  ---------  ---------- 
                                           $  (1,300) $    (781) $    (1.57)
                                           =========  =========  ========== 

    
* For the quarter ended December 31, 2011, before-tax unrealized
gains (losses) on derivatives, net includes $174 million related to
commodity derivatives, $(27) million related to other derivatives, and $4
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        Year Ended
                                        December 31,        December 31,
                                     ------------------  ------------------ 
millions                               2012      2011      2012      2011
                                     --------  --------  --------  -------- 
Net cash provided by operating
 activities                          $  2,220  $ (2,087) $  8,339  $  2,505 
Adjustments
  Deepwater Horizon settlement and
   related costs                            4     3,891        (6)    3,948 
  Algeria exceptional profits tax
   settlement                            (392)       --    (1,006)       -- 
  Change in accounts receivable          (111)       54      (520)      993 
  Change in accounts payable and
   accrued expenses                       (10)      (34)      476      (284)
  Change in other items--net              (99)      (72)     (126)       16 
                                     --------  --------  --------  -------- 
Discretionary cash flow from
 operations                          $  1,612  $  1,752  $  7,157  $  7,178 
                                     ========  ========  ========  ======== 

                       Anadarko Petroleum Corporation
                 Reconciliation of GAAP to Non-GAAP Measures

                                         Quarter Ended        Year Ended
                                         December 31,        December 31,
                                      ------------------  ------------------
millions                                2012      2011      2012      2011
                                      --------  --------  --------  --------
Discretionary cash flow from
 operations                           $  1,612  $  1,752  $  7,157  $  7,178
Less: Capital expenditures*              1,933     1,942     7,311     6,553
                                      --------  --------  --------  --------
Free cash flow                        $   (321) $   (190) $   (154) $    625
                                      ========  ========  ========  ========
Collection of Algeria exceptional
 profits tax receivable                    392        --     1,006        --
                                      --------  --------  --------  --------
Adjusted free cash flow               $     71  $   (190) $    852  $    625
                                      ========  ========  ========  ========


    
* Includes Western Gas Partners, LP (WES) capital expenditures of
$169 million and $56 million for the three months ended December 31, 2012
and 2011, respectively, and $529 million and $439 million for the year
ended December 31, 2012 and 2011, respectively. 

                                      Quarter Ended        Quarter Ended
                                    December 31, 2012    December 31, 2011
                                   -------------------  ------------------- 
                                    After    Per Share   After    Per Share 
millions except per-share amounts    Tax     (diluted)    Tax     (diluted) 
                                   -------  ----------  -------  ---------- 
Net income (loss) attributable to
 common stockholders               $   203  $     0.40  $  (358) $    (0.72)
Less: Certain items affecting
 comparability                        (254)      (0.51)    (781)      (1.57)
                                   -------  ----------  -------  ---------- 
Adjusted net income (loss)         $   457  $     0.91  $   423  $     0.85 
                                   =======  ==========  =======  ========== 

    
Presented below are reconciliations of costs incurred (GAAP) to oil
and natural gas exploration and development costs (non-GAAP) and total
debt (GAAP) to net debt (non-GAAP). Management believes oil and natural
gas exploration and development costs is a more accurate reflection of
the expenditures incurred during the current year, excluding certain
obligations to be paid in future periods. 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. 

                                                                Year Ended
                                                               December 31, 
millions                                                           2012
                                                              ------------- 
Costs incurred                                                $       6,367 
Asset retirement obligation liability incurred                          (98)
Cash expenditures for asset retirement obligations                       89 
                                                              ------------- 
Oil and natural gas exploration and development costs         $       6,358 
                                                              ============= 

                                                               December 31, 
millions                                                           2012
                                                              ------------- 
Total debt                                                    $      13,269 
Less: Cash and cash equivalents                                       2,471 
                                                              ------------- 
Net debt                                                      $      10,798 
                                                              ============= 

Net debt                                                      $      10,798 
Stockholders' equity                                                 20,629 
                                                              ------------- 
Adjusted capitalization                                       $      31,427 
                                                              ============= 

                                                              ------------- 
Net debt to adjusted capitalization ratio                                34%
                                                              ============= 

                       Anadarko Petroleum Corporation
                                (Unaudited)

                                        Quarter Ended        Year Ended
Summary Financial Information           December 31,        December 31,
                                     ------------------  ------------------ 
millions except per-share amounts      2012      2011      2012      2011
                                     --------  --------  --------  -------- 
Consolidated Statements of Income
                                     --------  --------  --------  -------- 
Revenues and Other
                                     --------  --------  --------  -------- 
Natural-gas sales                    $    762  $    736  $  2,444  $  3,300 
Oil and condensate sales                2,099     2,124     8,728     8,072 
Natural-gas liquids sales                 311       382     1,224     1,462 
Gathering, processing, and marketing
 sales                                    240       298       911     1,048 
Gains (losses) on divestitures and
 other, net                                (2)      299       104        85 
                                     --------  --------  --------  -------- 
Total                                   3,410     3,839    13,411    13,967 
                                     ========  ========  ========  ======== 
Costs and Expenses
                                     --------  --------  --------  -------- 
Oil and gas operating                     244       263       976       993 
Oil and gas transportation and other      245       258       955       891 
Exploration                               284       354     1,946     1,076 
Gathering, processing, and marketing      211       201       763       791 
General and administrative                430       276     1,246     1,060 
Depreciation, depletion, and
 amortization                           1,028       928     3,964     3,830 
Other taxes                               254       360     1,224     1,492 
Impairments                               223     1,487       389     1,774 
Algeria exceptional profits tax
 settlement                                --        --    (1,797)       -- 
Deepwater Horizon settlement and
 related costs                              3      (147)       18     3,930 
                                     --------  --------  --------  -------- 
Total                                   2,922     3,980     9,684    15,837 
                                     ========  ========  ========  ======== 
Operating Income (Loss)                   488      (141)    3,727    (1,870)
                                     ========  ========  ========  ======== 
Other (Income) Expense
                                     --------  --------  --------  -------- 
Interest expense                          181       197       742       839 
(Gains) losses on derivatives, net       (249)     (161)     (326)      461 
Other (income) expense, net                10       256      (254)      254 
                                     --------  --------  --------  -------- 
Total                                     (58)      292       162     1,554 
                                     ========  ========  ========  ======== 
Income (Loss) Before Income Taxes         546      (433)    3,565    (3,424)
                                     ========  ========  ========  ======== 
Income Tax Expense (Benefit)              356       (94)    1,120      (856)
                                     ========  ========  ========  ======== 
Net Income (Loss)                    $    190  $   (339) $  2,445  $ (2,568)
                                     ========  ========  ========  ======== 
Net Income (Loss) Attributable to
 Noncontrolling Interests                 (13)       19        54        81 
                                     ========  ========  ========  ======== 
Net Income (Loss) Attributable to
 Common Stockholders                 $    203  $   (358) $  2,391  $ (2,649)
                                     ========  ========  ========  ======== 
Per Common Share:
                                     ========  ========  ========  ======== 
Net income (loss) attributable to
 common stockholders--basic          $   0.40  $  (0.72) $   4.76  $  (5.32)
Net income (loss) attributable to
 common stockholders--diluted        $   0.40  $  (0.72) $   4.74  $  (5.32)
                                     ========  ========  ========  ======== 
Average Number of Common Shares
 Outstanding--Basic                       500       498       500       498 
                                     ========  ========  ========  ======== 
Average Number of Common Shares
 Outstanding--Diluted                     502       498       502       498 
                                     ========  ========  ========  ======== 

                                     ========  ========  ========  ======== 
Exploration Expense
                                     --------  --------  --------  -------- 
Dry hole expense                     $     94  $     79  $    440  $    154 
Impairments of unproved properties         61       123     1,104       471 
Geological and geophysical expense         62        94       151       246 
Exploration overhead and other             67        58       251       205 
                                     --------  --------  --------  -------- 
Total                                $    284  $    354  $  1,946  $  1,076 
                                     ========  ========  ========  ======== 

                       Anadarko Petroleum Corporation
                                (Unaudited)

                                        Quarter Ended        Year Ended
Summary Financial Information           December 31,        December 31,
                                     ------------------  ------------------ 
millions                               2012      2011      2012      2011
                                     --------  --------  --------  -------- 
Cash Flows from Operating Activities
                                     --------  --------  --------  -------- 
Net income (loss)                    $    190  $   (339) $  2,445  $ (2,568)
Depreciation, depletion, and
 amortization                           1,028       928     3,964     3,830 
Deferred income taxes                      69      (266)      164    (1,461)
Dry hole expense and impairments of
 unproved properties                      155       202     1,544       625 
Impairments                               223     1,487       389     1,774 
(Gains) losses on divestitures, net        48      (265)       71       (22)
Unrealized (gains) losses on
 derivatives, net                        (162)     (151)      377       616 
Deepwater Horizon settlement and
 related costs                              3      (147)       18     3,930 
Algeria exceptional profits tax
 settlement                                --        --    (1,797)       -- 
Tronox-related contingent loss             --       250      (250)      250 
Other                                      58        53       232       204 
                                     --------  --------  --------  -------- 
Discretionary Cash Flow from
 Operations                             1,612     1,752     7,157     7,178 
Deepwater Horizon settlement and
 related costs                             (4)   (3,891)        6    (3,948)
Algeria exceptional profits tax
 settlement                               392        --     1,006        -- 
(Increase) decrease in accounts
 receivable                               111       (54)      520      (993)
Increase (decrease) in accounts
 payable and accrued expenses              10        34      (476)      284 
Other items--net                           99        72       126       (16)
                                     --------  --------  --------  -------- 
Net Cash Provided by Operating
 Activities                          $  2,220  $ (2,087) $  8,339  $  2,505 
                                     ========  ========  ========  ======== 

                                     ========  ========  ========  ======== 
Capital Expenditures                 $  1,933  $  1,942  $  7,311  $  6,553 
                                     --------  --------  --------  -------- 

                                                 December 31,  December 31, 
millions                                             2012          2011
                                                 ------------  ------------ 
Condensed Balance Sheets
                                                 ------------  ------------ 
Cash and cash equivalents                        $      2,471  $      2,697 
Algeria exceptional profits tax settlement                730            -- 
Other current assets                                    3,594         4,234 
Net properties and equipment                           38,398        37,501 
Other assets                                            1,716         1,516 
Goodwill and other intangible assets                    5,680         5,831 
                                                 ------------  ------------ 
Total Assets                                     $     52,589  $     51,779 
                                                 ------------  ------------ 
Current portion of long-term debt                $         --  $        170 
Other current liabilities                               3,994         4,729 
Long-term debt                                         13,269        15,060 
Other long-term liabilities                            13,444        12,837 
Stockholders' equity                                   20,629        18,105 
Noncontrolling interests                                1,253           878 
                                                 ------------  ------------ 
Total Liabilities and Equity                     $     52,589  $     51,779 
                                                 ============  ============ 
Capitalization
                                                 ------------  ------------ 
Total debt                                       $     13,269  $     15,230 
Stockholders' equity                                   20,629        18,105 
                                                 ------------  ------------ 
Total                                            $     33,898  $     33,335 
                                                 ============  ============ 
Capitalization Ratios
                                                 ------------  ------------ 
Total debt                                                 39%           46%
Stockholders' equity                                       61%           54%
                                                 ============  ============ 

                       Anadarko Petroleum Corporation
                                 (Unaudited)

Sales Volumes and Prices

                         Average Daily Volumes          Sales Volumes
                      -------------------------- -------------------------- 
                               Crude Oil                  Crude Oil
                      Natural      &             Natural      &
                        Gas   Condensate   NGLs    Gas   Condensate   NGLs
                       MMcf/d   MBbls/d  MBbls/d   Bcf     MMBbls    MMBbls 
                      ------- ---------- ------- ------- ---------- ------- 
Quarter Ended
 December 31, 2012
United States           2,521        159      87     232         15       8 
Algeria                    --         47      --      --          4      -- 
Other International        --         28      --      --          3      -- 
                      ------- ---------- ------- ------- ---------- ------- 
Total                   2,521        234      87     232         22       8 
                      ------- ---------- ------- ------- ---------- ------- 

Quarter Ended
 December 31, 2011
United States           2,328        129      75     214         12       7 
Algeria                    --         60      --      --          6      -- 
Other International        --         31      --      --          2      -- 
                      ------- ---------- ------- ------- ---------- ------- 
Total                   2,328        220      75     214         20       7 
                      ------- ---------- ------- ------- ---------- ------- 

Year Ended December
 31, 2012
United States           2,495        149      83     913         55      30 
Algeria                    --         54      --      --         20      -- 
Other International        --         30      --      --         11      -- 
                      ------- ---------- ------- ------- ---------- ------- 
Total                   2,495        233      83     913         86      30 
                      ------- ---------- ------- ------- ---------- ------- 

Year Ended December
 31, 2011
United States           2,334        132      74     852         48      27 
Algeria                    --         57      --      --         21      -- 
Other International        --         28      --      --         10      -- 
                      ------- ---------- ------- ------- ---------- ------- 
Total                   2,334        217      74     852         79      27 
                      ------- ---------- ------- ------- ---------- ------- 

                      ======= ========== ======= ======= ========== ======= 

                          Average Sales Price
                     ----------------------------
                               Crude Oil
                      Natural      &
                        Gas   Condensate   NGLs
                      Per Mcf   Per Bbl   Per Bbl
                     -------- ---------- --------
Quarter Ended
 December 31, 2012
United States        $   3.28 $    92.50 $  38.97
Algeria                    --     109.68       --
Other International        --     107.56       --
                     -------- ---------- --------
Total                $   3.28 $    97.74 $  38.97
                     -------- ---------- --------

Quarter Ended
 December 31, 2011
United States        $   3.43 $   100.32 $  55.29
Algeria                    --     111.29       --
Other International        --     110.98       --
                     -------- ---------- --------
Total                $   3.43 $   104.82 $  55.29
                     -------- ---------- --------

Year Ended December
 31, 2012
United States        $   2.68 $    97.46 $  40.44
Algeria                    --     110.29       --
Other International        --     112.61       --
                     -------- ---------- --------
Total                $   2.68 $   102.35 $  40.44
                     -------- ---------- --------

Year Ended December
 31, 2011
United States        $   3.87 $    97.70 $  53.95
Algeria                    --     108.74       --
Other International        --     110.12       --
                     -------- ---------- --------
Total                $   3.87 $   102.24 $  53.95
                     -------- ---------- --------

                     ======== ========== ========

                                       Average
                                        Daily        Sales
                                       Volumes      Volumes
                                       MBOE/d        MMBOE
                                    ------------ ------------

Quarter Ended December 31, 2012              741           68
Quarter Ended December 31, 2011              683           63

Year Ended December 31, 2012                 732          268
Year Ended December 31, 2011                 680          248

Sales Revenue and Commodity Derivatives

                            Sales
                 -------------------------- 

                           Crude Oil
                  Natural      &
millions            Gas   Condensate  NGLs
                 -------- ---------- ------ 
Quarter Ended
 December 31,
 2012
United States    $    762 $    1,351 $  311 
Algeria                --        469     -- 
Other
 International         --        279     -- 
                 -------- ---------- ------ 
Total            $    762 $    2,099 $  311 
                 -------- ---------- ------ 

Quarter Ended
 December 31,
 2011
United States    $    736 $    1,190 $  382 
Algeria                --        614     -- 
Other
 International         --        320     -- 
                 -------- ---------- ------ 
Total            $    736 $    2,124 $  382 
                 -------- ---------- ------ 

Year Ended
 December 31,
 2012
United States    $  2,444 $    5,332 $1,224 
Algeria                --      2,182     -- 
Other
 International         --      1,214     -- 
                 -------- ---------- ------ 
Total            $  2,444 $    8,728 $1,224 
                 -------- ---------- ------ 

Year Ended
 December 31,
 2011
United States    $  3,300 $    4,667 $1,462 
Algeria                --      2,258     -- 
Other
 International         --      1,147     -- 
                 -------- ---------- ------ 
Total            $  3,300 $    8,072 $1,462 
                 -------- ---------- ------ 

                             Commodity Derivatives Gain (Loss)
                ----------------------------------------------------------- 
                                        Crude Oil &
                    Natural Gas          Condensate             NGLs
                ------------------- ------------------- ------------------- 
millions        Realized Unrealized Realized Unrealized Realized Unrealized 
                -------- ---------- -------- ---------- -------- ---------- 
Quarter Ended
 December 31,
 2012
United States   $    114 $       20 $     34 $      (13)$      4 $       (4)
Algeria               --         --        1         --       --         -- 
Other
 International        --         --       --         --       --         -- 
                -------- ---------- -------- ---------- -------- ---------- 
Total           $    114 $       20 $     35 $      (13)$      4 $       (4)
                -------- ---------- -------- ---------- -------- ---------- 

Quarter Ended
 December 31,
 2011
United States   $     73 $      246 $     (2)$      (57)$     -- $      (15)
Algeria               --         --       --         --       --         -- 
Other
 International        --         --       --         --       --         -- 
                -------- ---------- -------- ---------- -------- ---------- 
Total           $     73 $      246 $     (2)$      (57)$     -- $      (15)
                -------- ---------- -------- ---------- -------- ---------- 

Year Ended
 December 31,
 2012
United States   $    678 $     (444)$     70 $       64 $     10 $       14 
Algeria               --         --       (5)        --       --         -- 
Other
 International        --         --       --         --       --         -- 
                -------- ---------- -------- ---------- -------- ---------- 
Total           $    678 $     (444)$     65 $       64 $     10 $       14 
                -------- ---------- -------- ---------- -------- ---------- 

Year Ended
 December 31,
 2011
United States   $    288 $      192 $    (58)$      131 $     (1)$        4 
Algeria               --         --       (3)         9       --         -- 
Other
 International        --         --       --         --       --         -- 
                -------- ---------- -------- ---------- -------- ---------- 
Total           $    288 $      192 $    (61)$      140 $     (1)$        4 
                -------- ---------- -------- ---------- -------- ---------- 

                       Anadarko Petroleum Corporation
               Estimated Year-End Proved Reserves 2010 - 2012

MMBOE                                            2012      2011      2010
                                               --------  --------  -------- 
Proved Reserves
Beginning of year                                 2,539     2,422     2,304 
Reserves additions and revisions
  Discoveries and extensions                         82       174        83 
  Infill-drilling additions                         383       203       312 
                                               --------  --------  -------- 
    Drilling-related reserves additions and
     revisions                                      465       377       395 
  Other non-price-related revisions                 (31)        7       (66)
                                               --------  --------  -------- 
    Net organic reserves additions                  434       384       329 
  Acquisition of proved reserves in place             4        --         1 
  Price-related revisions                           (68)        8        29 
                                               --------  --------  -------- 
Total reserves additions and revisions              370       392       359 
Sales in place                                      (81)      (29)       (6)
Production                                         (268)     (246)     (235)
                                               --------  --------  -------- 
End of year                                       2,560     2,539     2,422 
                                               --------  --------  -------- 
Proved Developed Reserves
Beginning of year                                 1,811     1,673     1,624 
                                               --------  --------  -------- 
End of year                                       1,883     1,811     1,673 
                                               --------  --------  -------- 

                       Anadarko Petroleum Corporation
           Commodity Hedge Positions (Excluding Natural Gas Basis)
                           As of February 4, 2013

                                                 Weighted Average Price per 
                                                           MMBtu
                                               -----------------------------
                                    Volume
                                  (thousand                 Floor    Ceiling
                                   MMBtu/d)    Floor Sold Purchased   Sold
                                  ---------    ---------- --------- --------
Natural Gas
  Two-Way Collars
  2013 (April - October)                600           n/a $    3.18 $   4.00

  Fixed Price - Financial
  2013                                1,185    $     4.00

                                                 Weighted Average Price per 
                                                           barrel
                                               -----------------------------
                                    Volume                  Floor    Ceiling
                                  (MBbls/d)    Floor Sold Purchased   Sold
                                  ---------    ---------- --------- --------
Crude Oil
  Three-Way Collars
  2013
    Brent                                26    $    85.00 $  105.00 $ 125.15

  Fixed Price - Financial
  2013
    Brent                                61    $   108.72
    WTI                                  47    $    94.43
                                  ---------
                                        108    $   102.50

                          Interest Rate Derivatives
----------------------------------------------------------------------------
                           As of February 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
----------------------------------------------------------------------------

    


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 

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