HOUSTON, TX--(Marketwire - April 30, 2012) - Anadarko Petroleum Corporation (
First-Quarter 2012 Highlights
- Delivered record daily sales volumes of 704,000 barrels of oil equivalent per day (BOE/d), including record liquids volumes of 301,000 barrels per day, comprised of approximately 75 percent crude oil
- Announced positive resolution of the Algeria tax dispute
- Achieved first oil at Caesar/Tonga and ramped production to more than 45,000 BOE/d
- Announced deep-water drilling success in Mozambique, Ghana and the Gulf of Mexico
- Completed successful drill-stem tests in Mozambique and Ghana
"Anadarko delivered record operating results, generated more than $130 million of free cash flow and successfully appraised discoveries in Mozambique, the Gulf of Mexico and Ghana during the first quarter of 2012," said Anadarko Chairman and CEO Jim Hackett. "The operating results were highlighted by record sales volumes, a year-over-year increase of 27,000 barrels per day from our liquids-rich U.S. onshore growth properties, and the startup of oil production at Caesar/Tonga in the Gulf of Mexico. In addition, we resolved the Algeria tax dispute in a mutually beneficial manner that resulted in a $1.8 billion benefit in the first quarter, of which we expect to receive approximately $1 billion in cash during 2012 and the balance during the first half of 2013. The resolution also included amended contract terms, which are expected to result in approximately 1.6 million barrels of additional oil volumes during 2012. This is reflected in our increased sales-volumes guidance range of 258 to 262 million BOE, with no corresponding increase in capital."
Operations Summary
Sales volumes in the first quarter rose to 64 million BOE, or a record 704,000 BOE/d, averaging approximately 221,000 barrels of oil per day (BOPD), 80,000 barrels of natural gas liquids per day and 2.4 billion cubic feet of natural gas per day.
The company delivered a record 301,000 barrels of liquids per day, benefitting from a 50-percent year-over-year increase in liquids sales volumes from the five major liquids-rich plays highlighted during Anadarko's March 13 Investor Conference (the Wattenberg, Eagleford, Permian, East Texas HZ and Greater Natural Buttes plays). The Wattenberg field in Colorado accounted for a significant portion of this growth, by ramping up year-over-year liquids sales volumes by approximately 12,000 barrels per day.
As referenced in the highlights, Anadarko achieved first production at the Caesar/Tonga mega project in the Gulf of Mexico in early March, and is currently producing more than 45,000 BOE/d from three wells. The partnership plans to drill a fourth well in the third quarter of this year. At Independence Hub, the Cheyenne East well was brought on line.
Exploration Summary
Anadarko and its partners drilled six successful deep-water exploration/appraisal wells during the first quarter of 2012. In West Africa, the Ntomme-2A and Enyenra-4A appraisal wells offshore Ghana encountered significant oil pay, enhancing the value and expanding the areal extent of the TEN (Tweneboa, Enyenra and Ntomme) complex. The company also successfully completed a drill-stem test at its Owo discovery well, which flowed at facility-constrained rates exceeding 20,000 BOPD from multiple zones. Offshore Sierra Leone, Anadarko and its partners encountered hydrocarbon pay at the Jupiter-1 prospect, and evaluation of the area is ongoing.
Offshore Mozambique in the Prosperidade complex, the company announced successful appraisal wells at Lagosta-2 and Lagosta-3 during the quarter. Anadarko and its partners also successfully conducted a drill-stem test at the Barquentine-2 well during the quarter and another at the Barquentine-1 well subsequent to quarter's end. Both demonstrated outstanding reservoir characteristics, flowing at facility-constrained rates of approximately 100 million cubic feet per day (MMcf/d). The results of both drill-stem tests support well designs with potential flow rates of up to 200 MMcf/d. In April, following the successful Barquentine-4 appraisal well, Anadarko and its partners announced the completion of the appraisal drilling program in the complex. The company has now restarted its exploration program with the Golfinho prospect more than 15 miles northwest of Prosperidade.
In February, Anadarko announced that the Heidelberg-2 appraisal well in the Gulf of Mexico encountered more than 250 net feet of oil pay, and a recent down-dip sidetrack appraisal well at Heidelberg confirmed an extension of up to 1,500 acres in the field. Pre-FEED (front-end engineering and design) work has been initiated at Heidelberg to evaluate development solutions. The company also recently spud the Spartacus well that will target subsalt layers in the vicinity of Anadarko's Lucius mega project, which is currently under development.
Earlier this month, Anadarko announced encouraging results from its exploration drilling program in the Utica Shale play of eastern Ohio. The company plans to continue evaluating the liquids-rich potential of its 390,000-acre (gross) position in the Utica throughout 2012.
Financial Summary
Anadarko ended the first quarter of 2012 with approximately $3.0 billion of cash on hand, and generated approximately $132 million of free cash flow(2) during the first quarter, which includes the impact of $98 million of capital expenditures incurred by Western Gas Partners, LP (
ratio(2) to 38 percent, compared to 41 percent at year-end 2011. Also, Moody's Investors Service returned Anadarko's senior unsecured rating to investment grade at Baa3, with a stable outlook. In addition, the company recently closed the divestiture of its South Texas assets, as well as finalized a $400 million joint-venture agreement at its enhanced oil recovery development in the Salt Creek field in Wyoming.
As described in the items affecting comparability on page 5 of the release, the company recorded an additional non-cash charge of $275 million related to the Tronox Adversary Proceeding. Also included in the items affecting comparability is the $1.8 billion benefit associated with the resolution of the Algeria tax dispute.
Operations Report
For more details on Anadarko's operations, please refer to the comprehensive report on first-quarter 2012 activity. The report is available at www.anadarko.com on the Investor Relations page.
Conference Call Tomorrow at 9 a.m. CDT, 10 a.m. EDT
Anadarko will host a conference call on Tuesday, May 1, at 9 a.m. Central Daylight Time (10 a.m. Eastern Daylight Time) to discuss first-quarter results, current operations and the company's outlook for the remainder of 2012. The dial-in number is 888.680.0890 in the United States or 617.213.4857 internationally. The confirmation number is 35225653. 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 conference call.
Financial Data
Eight pages of summary financial data follow, including current hedge positions and updated financial and production guidance.
(1) See the accompanying table for details of certain items affecting comparability.
(2) See the accompanying table for a reconciliation of GAAP to non-GAAP financial measures and a statement indicating why management believes the non-GAAP financial measures provide useful information for investors.
Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world's health and welfare. As of year-end 2011, the company had approximately 2.54 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. For more information about Anadarko, 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 drill, develop and commercially operate the drilling prospects identified in this news release and successfully plan, build and operate an LNG project. 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.
| Anadarko Petroleum Corporation | ||||||||||||
| Certain Items Affecting Comparability | ||||||||||||
| Quarter Ended March 31, 2012 | ||||||||||||
| Before | After | Per Share | ||||||||||
| millions except per-share amounts | Tax | Tax | (diluted) | |||||||||
| Unrealized gains (losses) on derivatives, net* | $ | 142 | $ | 90 | $ | 0.18 | ||||||
| Gains (losses) on divestitures, net | (17 | ) | (11 | ) | (0.02 | ) | ||||||
| Impairments, including unproved properties | (53 | ) | (34 | ) | (0.07 | ) | ||||||
| Change in uncertain tax positions (FIN48) | -- | 12 | 0.03 | |||||||||
| Algeria exceptional profits tax settlement | 1,804 | 1,804 | 3.60 | |||||||||
| Tronox-related contingent loss | (275 | ) | (175 | ) | (0.35 | ) | ||||||
| Deepwater Horizon settlement and related costs | (8 | ) | (5 | ) | (0.01 | ) | ||||||
| $ | 1,593 | $ | 1,681 | $ | 3.36 | |||||||
* For the quarter ended March 31, 2012, before-tax unrealized gains (losses) on derivatives, net includes $(89) million related to commodity derivatives, $236 million related to other derivatives, and $(5) million related to gathering, processing, and marketing sales.
| Quarter Ended March 31, 2011 | ||||||||||||
| Before | After | Per Share | ||||||||||
| millions except per-share amounts | Tax | Tax | (diluted) | |||||||||
| Unrealized gains (losses) on derivatives, net* | $ | (253 | ) | $ | (160 | ) | $ | (0.32 | ) | |||
| Tronox damage claim settlement | 46 | 29 | 0.06 | |||||||||
| Impairments, including unproved properties | (2 | ) | (2 | ) | -- | |||||||
| Deepwater Horizon settlement and related costs | (26 | ) | (17 | ) | (0.04 | ) | ||||||
| $ | (235 | ) | $ | (150 | ) | $ | (0.30 | ) | ||||
* For the quarter ended March 31, 2011, before-tax unrealized gains (losses) on derivatives, net includes $(313) million related to commodity derivatives, $59 million related to other derivatives, and $1 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 and free cash flow (non-GAAP), and 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 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. Management uses adjusted net income (loss) to evaluate the Company's operational trends and performance.
| Quarter Ended March 31, | |||||||||
| millions | 2012 | 2011 | |||||||
| Net cash provided by operating activities | $ | 1,891 | $ | 1,289 | |||||
| Add back: | |||||||||
| Deepwater Horizon settlement and related costs | (22 | ) | 26 | ||||||
| Change in accounts receivable | 27 | 251 | |||||||
| Change in accounts payable and accrued expenses | 258 | 177 | |||||||
| Change in other items--net | (232 | ) | (43 | ) | |||||
| Discretionary cash flow from operations | $ | 1,922 | $ | 1,700 | |||||
| Anadarko Petroleum Corporation | ||||||
| Reconciliation of GAAP to Non-GAAP Measures | ||||||
| Quarter Ended | ||||||
| March 31, | ||||||
| millions | 2012 | 2011 | ||||
| Discretionary cash flow from operations | $ | 1,922 | $ | 1,700 | ||
| Less: Capital expenditures* | 1,790 | 1,587 | ||||
| Free cash flow | $ | 132 | $ | 113 | ||
* Includes Western Gas Partners, LP (WES) capital expenditures of $98 million and $317 million for the quarter ended March 31, 2012 and 2011, respectively.
| Quarter Ended | Quarter Ended | |||||||||||||
| March 31, 2012 | March 31, 2011 | |||||||||||||
| After | Per Share | After | Per Share | |||||||||||
| millions except per-share amounts | Tax | (diluted) | Tax | (diluted) | ||||||||||
| Net income (loss) attributable to common stockholders | $ | 2,156 | $ | 4.28 | $ | 216 | $ | 0.43 | ||||||
| Less: Certain items affecting comparability | 1,681 | 3.36 | (150 | ) | (0.30 | ) | ||||||||
| Adjusted net income (loss) | $ | 475 | $ | 0.92 | $ | 366 | $ | 0.73 | ||||||
Presented below is a reconciliation of total debt (GAAP) to net debt (non-GAAP). Management uses net debt as a measure of the Company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand.
| millions | March 31, 2012 | ||
| Total debt | $ | 15,386 | |
| Less: Cash and cash equivalents | 2,957 | ||
| Net debt | $ | 12,429 | |
| Net debt | $ | 12,429 | |
| Stockholders' equity | 20,279 | ||
| Adjusted capitalization | $ | 32,708 | |
| Net debt to adjusted capitalization ratio | 38% | ||
| Anadarko Petroleum Corporation | ||||||||
| (Unaudited) | ||||||||
| Quarter Ended | ||||||||
| Summary Financial Information | March 31, | |||||||
| millions except per-share amounts | 2012 | 2011 | ||||||
| Consolidated Statements of Income | ||||||||
| Revenues and Other | ||||||||
| Natural-gas sales | $ | 573 | $ | 854 | ||||
| Oil and condensate sales | 2,244 | 1,807 | ||||||
| Natural-gas liquids sales | 342 | 333 | ||||||
| Gathering, processing, and marketing sales | 253 | 230 | ||||||
| Gains (losses) on divestitures and other, net | 35 | 29 | ||||||
| Total | 3,447 | 3,253 | ||||||
| Costs and Expenses | ||||||||
| Oil and gas operating | 242 | 232 | ||||||
| Oil and gas transportation and other | 240 | 209 | ||||||
| Exploration | 244 | 179 | ||||||
| Gathering, processing, and marketing | 189 | 171 | ||||||
| General and administrative | 269 | 209 | ||||||
| Depreciation, depletion, and amortization | 930 | 985 | ||||||
| Other taxes | 377 | 344 | ||||||
| Impairments | 50 | 2 | ||||||
| Algeria exceptional profits tax settlement | (1,804 | ) | -- | |||||
| Deepwater Horizon settlement and related costs | 8 | 26 | ||||||
| Total | 745 | 2,357 | ||||||
| Operating Income (Loss) | 2,702 | 896 | ||||||
| Other (Income) Expense | ||||||||
| Interest expense | 186 | 220 | ||||||
| (Gains) losses on commodity derivatives, net | (48 | ) | 256 | |||||
| (Gains) losses on other derivatives, net | (236 | ) | (59 | ) | ||||
| Other (income) expense, net | 265 | (24 | ) | |||||
| Total | 167 | 393 | ||||||
| Income (Loss) Before Income Taxes | 2,535 | 503 | ||||||
| Income Tax Expense (Benefit) | 352 | 266 | ||||||
| Net Income (Loss) | $ | 2,183 | $ | 237 | ||||
| Net Income Attributable to Noncontrolling Interests | 27 | 21 | ||||||
| Net Income (Loss) Attributable to Common Stockholders | $ | 2,156 | $ | 216 | ||||
| Per Common Share: | ||||||||
| Net income (loss) attributable to common stockholders--basic | $ | 4.30 | $ | 0.43 | ||||
| Net income (loss) attributable to common stockholders--diluted | $ | 4.28 | $ | 0.43 | ||||
| Average Number of Common Shares Outstanding--Basic | 499 | 497 | ||||||
| Average Number of Common Shares Outstanding--Diluted | 501 | 499 | ||||||
| Exploration Expense | ||||||||
| Dry hole expense | $ | 89 | $ | 16 | ||||
| Impairments of unproved properties | 60 | 74 | ||||||
| Geological and geophysical expense | 35 | 48 | ||||||
| Exploration overhead and other | 60 | 41 | ||||||
| Total | $ | 244 | $ | 179 | ||||
| Anadarko Petroleum Corporation | ||||||||
| (Unaudited) | ||||||||
| Quarter Ended | ||||||||
| Summary Financial Information | March 31, | |||||||
| millions | 2012 | 2011 | ||||||
| Cash Flows from Operating Activities | ||||||||
| Net income (loss) | $ | 2,183 | $ | 237 | ||||
| Depreciation, depletion, and amortization | 930 | 985 | ||||||
| Deferred income taxes | 210 | 73 | ||||||
| Dry hole expense and impairments of unproved properties | 149 | 90 | ||||||
| Impairments | 50 | 2 | ||||||
| (Gains) losses on divestitures, net | 17 | -- | ||||||
| Unrealized (gains) losses on derivatives, net | (142 | ) | 253 | |||||
| Deepwater Horizon settlement and related costs* | 8 | 26 | ||||||
| Algeria exceptional profits tax settlement | (1,804 | ) | -- | |||||
| Tronox-related contingent loss | 275 | -- | ||||||
| Other | 46 | 34 | ||||||
| Discretionary Cash Flow from Operations | 1,922 | 1,700 | ||||||
| Deepwater Horizon settlement and related costs | 22 | (26 | ) | |||||
| (Increase) decrease in accounts receivable | (27 | ) | (251 | ) | ||||
| Increase (decrease) in accounts payable and accrued expenses | (258 | ) | (177 | ) | ||||
| Other items--net | 232 | 43 | ||||||
| Net Cash Provided by Operating Activities | $ | 1,891 | $ | 1,289 | ||||
| Capital Expenditures | $ | 1,790 | $ | 1,587 | ||||
* Deepwater Horizon settlement and related costs are excluded from discretionary cash flow from operations.
| March 31, | December 31, | |||||||
| millions | 2012 | 2011 | ||||||
| Condensed Balance Sheets | ||||||||
| Cash and cash equivalents | $ | 2,957 | $ | 2,697 | ||||
| Algeria exceptional profits tax settlement | 1,458 | -- | ||||||
| Other current assets | 4,299 | 4,234 | ||||||
| Net properties and equipment | 38,166 | 37,501 | ||||||
| Other assets | 1,816 | 1,516 | ||||||
| Goodwill and other intangible assets | 5,825 | 5,831 | ||||||
| Total Assets | $ | 54,521 | $ | 51,779 | ||||
| Current debt | $ | 39 | $ | 170 | ||||
| Other current liabilities | 4,858 | 4,729 | ||||||
| Long-term debt | 15,347 | 15,060 | ||||||
| Other long-term liabilities | 13,113 | 12,837 | ||||||
| Stockholders' equity | 20,279 | 18,105 | ||||||
| Noncontrolling interests | 885 | 878 | ||||||
| Total Liabilities and Equity | $ | 54,521 | $ | 51,779 | ||||
| Capitalization | ||||||||
| Total debt | $ | 15,386 | $ | 15,230 | ||||
| Stockholders' equity | 20,279 | 18,105 | ||||||
| Total | $ | 35,665 | $ | 33,335 | ||||
| Capitalization Ratios | ||||||||
| Total debt | 43 | % | 46 | % | ||||
| Stockholders' equity | 57 | % | 54 | % | ||||
| Anadarko Petroleum Corporation | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Sales Volumes and Prices | ||||||||||||||||||||
| Average Daily Volumes | Sales Volumes | Average Sales Price | ||||||||||||||||||
| Natural Gas | Crude Oil & Condensate | NGLs | Natural Gas | Crude Oil & Condensate | NGLs | Natural Gas | Crude Oil & Condensate | NGLs | ||||||||||||
| MMcf/d | MBbls/d | MBbls/d | Bcf | MMBbls | MMBbls | Per Mcf | Per Bbl | Per Bbl | ||||||||||||
| Quarter Ended March 31, 2012 | ||||||||||||||||||||
| United States | 2,416 | 138 | 80 | 220 | 12 | 7 | $ | 2.60 | $ | 105.75 | $ | 47.09 | ||||||||
| Algeria | -- | 50 | -- | -- | 5 | -- | -- | 119.57 | -- | |||||||||||
| Other International | -- | 33 | -- | -- | 3 | -- | -- | 120.64 | -- | |||||||||||
| Total | 2,416 | 221 | 80 | 220 | 20 | 7 | $ | 2.60 | $ | 111.07 | $ | 47.09 | ||||||||
| Quarter Ended March 31, 2011 | ||||||||||||||||||||
| United States | 2,412 | 131 | 76 | 217 | 12 | 7 | $ | 3.93 | $ | 91.56 | $ | 48.86 | ||||||||
| Algeria | -- | 55 | -- | -- | 5 | -- | -- | 98.45 | -- | |||||||||||
| Other International | -- | 26 | -- | -- | 2 | -- | -- | 101.66 | -- | |||||||||||
| Total | 2,412 | 212 | 76 | 217 | 19 | 7 | $ | 3.93 | $ | 94.58 | $ | 48.86 | ||||||||
| Average Daily Volumes MBOE/d | Sales Volumes MMBOE |
|||
| Quarter Ended March 31, 2012 | 704 | 64 | ||
| Quarter Ended March 31, 2011 | 690 | 62 | ||
| Sales Revenue and Commodity Derivatives | |||||||||||||||||||||||||||||||
| Sales | Commodity Derivatives Gain (Loss) | ||||||||||||||||||||||||||||||
| Natural Gas | Crude Oil & Condensate | NGLs | |||||||||||||||||||||||||||||
| millions | Natural Gas | Crude Oil & Condensate |
NGLs | Realized | Unrealized | Realized | Unrealized | Realized | Unrealized | ||||||||||||||||||||||
| Quarter Ended March 31, 2012 | |||||||||||||||||||||||||||||||
| United States | $ | 573 | $ | 1,339 | $ | 342 | $ | 170 | $ | 86 | $ | (5 | ) | $ | (173 | ) | $ | -- | $ | (2 | ) | ||||||||||
| Algeria | -- | 538 | -- | -- | -- | (28 | ) | -- | -- | -- | |||||||||||||||||||||
| Other International | -- | 367 | -- | -- | -- | -- | -- | -- | -- | ||||||||||||||||||||||
| Total | $ | 573 | $ | 2,244 | $ | 342 | $ | 170 | $ | 86 | $ | (33 | ) | $ | (173 | ) | $ | -- | $ | (2 | ) | ||||||||||
| Quarter Ended March 31, 2011 | |||||||||||||||||||||||||||||||
| United States | $ | 854 | $ | 1,080 | $ | 333 | $ | 72 | $ | (47 | ) | $ | (12 | ) | $ | (275 | ) | $ | -- | $ | -- | ||||||||||
| Algeria | -- | 491 | -- | -- | -- | (3 | ) | 9 | -- | -- | |||||||||||||||||||||
| Other International | -- | 236 | -- | -- | -- | -- | -- | -- | -- | ||||||||||||||||||||||
| Total | $ | 854 | $ | 1,807 | $ | 333 | $ | 72 | $ | (47 | ) | $ | (15 | ) | $ | (266 | ) | $ | -- | $ | -- | ||||||||||
| Anadarko Petroleum Corporation | |||||||||
| Financial and Operating External Guidance | |||||||||
| As of April 30, 2012 | |||||||||
| 2nd Qtr | Total Year | ||||||||
| Guidance | Guidance | ||||||||
| Units | Units | ||||||||
| Total Sales (MMBOE) | 64 | - | 66 | 258 | - | 262 | |||
| Crude Oil (MBbl/d): | 235 | - | 243 | 237 | - | 243 | |||
| United States | 154 | - | 158 | 155 | - | 157 | |||
| Algeria | 57 | - | 58 | 56 | - | 58 | |||
| Other International | 24 | - | 27 | 26 | - | 28 | |||
| Natural Gas (MMcf/d): | |||||||||
| United States | 2,375 | - | 2,400 | 2,320 | - | 2,340 | |||
| Natural Gas Liquids (MBbl/d): | |||||||||
| United States | 77 | - | 79 | 80 | - | 83 | |||
| $ / Unit | $ / Unit | ||||||||
| Price Differentials vs NYMEX (w/o hedges) | |||||||||
| Crude Oil ($/Bbl): | 6.00 | - | 10.00 | 5.00 | - | 8.00 | |||
| United States | 2.00 | - | 4.00 | 1.00 | - | 3.00 | |||
| Algeria | 15.00 | - | 18.00 | 12.00 | - | 15.00 | |||
| Other International | 16.00 | - | 19.00 | 12.00 | - | 15.00 | |||
| Natural Gas ($/Mcf): | |||||||||
| United States | (0.10) | - | (0.15) | (0.10) | - | (0.20) | |||
| Anadarko Petroleum Corporation | ||||||||||||
| Financial and Operating External Guidance | ||||||||||||
| As of April 30, 2012 | ||||||||||||
| 2nd Qtr | Total Year | |||||||||||
| Guidance | Guidance | |||||||||||
| $ MM | $ MM | |||||||||||
| Other Revenues: | ||||||||||||
| Marketing and Gathering Margin | 55 | - | 75 | 240 | - | 280 | ||||||
| Minerals and Other | 35 | - | 45 | 155 | - | 180 | ||||||
| Costs and Expenses: | ||||||||||||
| $ / BOE | $ / BOE | |||||||||||
| Oil & Gas Direct Operating | 3.95 | - | 4.15 | 4.00 | - | 4.25 | ||||||
| Oil & Gas Transportation/Other | 3.70 | - | 3.95 | 3.65 | - | 3.90 | ||||||
| Depreciation, Depletion and Amortization | 14.50 | - | 14.80 | 14.50 | - | 15.00 | ||||||
| Production Taxes (% of Revenue) | 11.0% | - | 12.0% | 10.0% | - | 11.0% | ||||||
| $ MM | $ MM | |||||||||||
| General and Administrative | 290 | - | 310 | 1,100 | - | 1,200 | ||||||
| Exploration Expense | ||||||||||||
| Non-Cash | 125 | - | 150 | 650 | - | 750 | ||||||
| Cash | 100 | - | 120 | 400 | - | 450 | ||||||
| Interest Expense (net) | 195 | - | 200 | 770 | - | 795 | ||||||
| Other (Income) Expense | - | - | (20) | 195 | - | 275 | ||||||
| Tax Rate: | ||||||||||||
| Algeria (All current) | 55% | - | 60% | 50% | - | 55% | ||||||
| Rest of Company (20% Current, 80% Deferred) | 40% | - | 45% | 45% | - | 50% | ||||||
| Avg. Shares Outstanding (MM): | ||||||||||||
| Basic | 498 | - | 500 | 498 | - | 500 | ||||||
| Diluted | 502 | - | 503 | 501 | - | 503 | ||||||
| $ MM | $ MM | |||||||||||
| Capital Investment* | ||||||||||||
| Capital Expenditures | 1,600 | - | 1,750 | 6,400 | - | 6,700 | ||||||
| Capitalized Interest | 45 | - | 55 | 195 | - | 215 | ||||||
| *Excludes Western Gas Partners, LP (WES) | ||||||||||||
| Anadarko Petroleum Corporation | |||||||||||||
| Commodity Hedge Positions (Excluding Natural Gas Basis) | |||||||||||||
| As of April 30, 2012 | |||||||||||||
| Weighted Average Price per MMBtu | |||||||||||||
| Volume (thousand MMBtu/d) | Floor Sold | Floor Purchased | Ceiling Sold | ||||||||||
| Natural Gas | |||||||||||||
| Fixed Price - Financial | |||||||||||||
| 2012 | 1,000 | $ | 4.69 | ||||||||||
| Three-Way Collars | |||||||||||||
| 2013 | 450 | $ | 4.00 | $ | 5.00 | $ | 6.57 | ||||||
| Weighted Average Price per barrel | |||||||||||||
| Volume (MBbls/d) | Floor Sold | Floor Purchased | Ceiling Sold | ||||||||||
| Crude Oil | |||||||||||||
| Three-Way Collars | |||||||||||||
| 2012 | |||||||||||||
| Brent | 45 | $ | 85.00 | $ | 105.00 | $ | 125.60 | ||||||
| WTI | 17 | $ | 71.36 | $ | 90.91 | $ | 113.30 | ||||||
| 62 | $ | 81.34 | $ | 101.22 | $ | 122.30 | |||||||
| Fixed Price - Financial | |||||||||||||
| 2012 | |||||||||||||
| Brent | 40 | $ | 110.10 | ||||||||||
| WTI | 20 | $ | 101.39 | ||||||||||
| 60 | $ | 107.19 | |||||||||||
| Interest Rate Derivatives | ||||||||||
| As of April 30, 2012 | ||||||||||
| Instrument | Notional Amt. | Start Date | Maturity | Rate Paid | Rate Received | |||||
| Swap | $250 Million | October 2012 | October 2022 | 4.91% | 3M LIBOR | |||||
| Swap | $750 Million | October 2012 | October 2042 | 4.80% | 3M LIBOR | |||||
| Swap | $750 Million | June 2014 | June 2024 | 6.00% | 3M LIBOR | |||||
| Swap | $1,100 Million | June 2014 | June 2044 | 5.57% | 3M LIBOR | |||||
