SOURCE: Anadarko Petroleum Corporation

Anadarko Petroleum Corporation

January 31, 2011 16:27 ET

Anadarko Announces 2010 Fourth-Quarter and Full-Year Results

HOUSTON, TX--(Marketwire - January 31, 2011) - Anadarko Petroleum Corporation (NYSE: APC) today announced that net income from continuing operations attributable to common stockholders totaled $111 million, or $0.22 per share (diluted), for the quarter ended Dec. 31, 2010. These results include certain items affecting comparability that are typically excluded by the investment community in published estimates. In total, these items decreased net income by approximately $34 million, or $0.07 per share (diluted), on an after-tax basis.(1) Cash flow from continuing operations in the fourth quarter of 2010 was $1.315 billion, and discretionary cash flow totaled $1.298 billion.(2)

For the year ended Dec. 31, 2010, Anadarko reported net income from continuing operations attributable to common stockholders of $761 million, or $1.52 per share (diluted). Full-year 2010 cash flow from continuing operations was $5.247 billion, and discretionary cash flow totaled $5.380 billion.(2)

2010 Highlights

--  Increased sales volumes by 7 percent over 2009, including a 13-percent
    liquids increase
--  Added 359 million barrels of oil equivalent (BOE) of proved reserves,
    which equates to replacing 153 percent of production
--  Continued offshore exploration success with an approximate 60-percent
    discovery rate
--  Achieved first oil from the Jubilee mega project in a record 3.5 years
    following discovery

"2010 was a year of very strong performance with record sales volumes, above-target reserve growth and industry-leading exploration results -- each of which surpassed the guidance we provided in March -- while spending approximately $200 million less capital than originally projected," said Anadarko Chairman and CEO Jim Hackett. "Additionally, we strengthened the balance sheet by completing several transactions that enhanced liquidity and significantly extended near-term debt maturities, and had approximately $3.7 billion of cash on hand at year end. We are positioned to deliver upon the strategic plan we laid out last March to achieve a five-year 7- to 9-percent production CAGR (compounded annual growth rate) and surpass 3 billion BOE of proved reserves by year-end 2014."

Full-year 2010 sales volumes of natural gas, crude oil and natural gas liquids (NGLs) totaled a record 235 million BOE, or 643,000 BOE per day, which was 6.5 million BOE higher than the midpoint of the original sales-volumes guidance provided at the March 2010 Investor Conference. This represents an approximate 7-percent increase over full-year 2009 sales volumes of 220 million BOE. Fourth-quarter 2010 sales volumes of natural gas, crude oil and NGLs totaled 56 million BOE, or 608,000 BOE per day.

Anadarko added 359 million BOE of proved reserves in 2010, including 29 million BOE from price revisions, and incurred costs of approximately $5.036 billion associated with its oil and natural gas exploration and development activities.(2) The company estimates its proved reserves at year-end 2010 totaled 2.42 billion BOE, with approximately 69 percent of its reserves in the proved developed category and approximately 31 percent categorized as proved undeveloped. At year-end 2010, Anadarko's product mix of proved reserves was made up of approximately 56 percent natural gas and 44 percent liquids.

2010 Worldwide Exploration and Development Highlights

Anadarko's record production of 235 million BOE was primarily driven by an 11-percent increase in sales volumes from the Rocky Mountain region, growth in the company's liquids-rich plays and accelerated activity in the Marcellus shale. With existing infrastructure and service agreements in place, Anadarko has established itself as the largest producer in the Eagleford Shale with current gross production of approximately 27,000 BOE per day. The midstream expansion in the Marcellus Shale during the fourth quarter of 2010 enabled the company to nearly double its gross daily sales volumes from the end of the third quarter to approximately 330 million cubic feet per day (MMcf/d) at the end of the year, while being carried on its capital costs through the joint-venture agreement announced earlier in the year.

"The success of Anadarko's worldwide exploration program, coupled with the results of our evaluation and development activity in the U.S. onshore, has continued to add differentiating value for shareholders," continued Hackett. "Our offshore exploration drilling program achieved a success rate of approximately 60 percent, while also continuing to safely advance existing deepwater discoveries toward potential future development, with a 100-percent success rate on a total of nine appraisal wells in 2010. In addition to these industry-leading results, the further evaluation and development of our Marcellus and Eagleford shale programs -- where we amassed large fairway acreage positions at attractive costs in the early stages of exploration -- enabled us to establish a net risked resource potential of 1.5 billion BOE in these two major growth areas."

In Mozambique, Anadarko announced three world-class natural gas discoveries at Windjammer, Barquentine and Lagosta -- each of which was ranked among the top five discoveries offshore Africa in 2010, according to IHS Energy. As a result of the success, Anadarko and its partners have begun evaluating various commercialization options and expect to keep at least one rig in the area to advance an appraisal program and continue exploration activities. In West Africa, the company announced its second discovery offshore Sierra Leone at the Mercury prospect. Anadarko, along with partners, is advancing plans to drill three to five exploration and appraisal wells across the company's 5 million gross acres offshore Sierra Leone, Liberia and Cote d'Ivoire in 2011. Offshore Ghana, Anadarko and its partners achieved first oil from the world-class Jubilee field in a record 3.5 years following discovery. Also offshore Ghana, Anadarko and its partners continued a successful appraisal program in the adjacent Tweneboa and Enyenra (formerly Owo) fields and expect to submit a development plan to the Ghanaian government in 2011.

Anadarko will provide more information regarding its 2011 capital program and longer-term outlook on Feb. 24, 2011, when it holds an extended conference call and portfolio discussion. The company will provide additional details and dial-in instructions for the call later this month.

Conference Call Tomorrow at 9 a.m. CST, 10 a.m. EST

Anadarko will host a conference call on Tuesday, Feb. 1, at 9 a.m. Central Standard Time (10 a.m. Eastern Standard Time) to discuss fourth-quarter and year-end results. The dial-in number is 888.679.8034 in the United States or 617.213.4847 for international calls. The confirmation number is 98549147. 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 fourth-quarter 2010 activity. The report will be available at www.anadarko.com on the Investor Relations page.

Financial Data

Seven pages of summary financial data follow, including current hedge positions, proved reserves and costs incurred.

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 2010, the company had approximately 2.42 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.

(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 provide 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 finalize year-end reserves and complete and commercially operate the drilling prospects identified in this news release. See "Risk Factors" in the company's 2009 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: Effective Jan. 1, 2010, 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 risked resource potential," 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, 2009, 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, 2010
                                           -------------------------------
                                            Before      After    Per Share
millions except per-share amounts            Tax         Tax     (diluted)
                                           ---------  ---------  ---------
Unrealized gains (losses) on
 derivatives, net*                         $      48  $      30  $    0.06
Gains (losses) on divestitures, net               17         10       0.02
Gulf of Mexico accelerated depreciation,
 depletion and amortization                      (19)       (12)     (0.02)
Deepwater royalty adjustments                    (52)       (33)     (0.07)
Impairments                                      (69)       (29)     (0.06)
                                           ---------  ---------  ---------
                                           $     (75) $     (34) $   (0.07)
                                           =========  =========  =========

* For the quarter ended December 31, 2010, before-tax unrealized gains
(losses) on derivatives, net includes $(318) million related to commodity
derivatives, $371 million related to other derivatives, and $(5) million
related to gathering, processing and marketing sales.


                                           Quarter Ended December 31, 2009
                                           ---------  ---------  ---------
                                            Before      After    Per Share
millions except per-share amounts            Tax         Tax     (diluted)
                                           ---------  ---------  ---------
Unrealized gains (losses) on
 derivatives, net*                         $     356  $     226  $    0.45
Impairments                                      (36)       (28)     (0.05)
Change in uncertain tax positions (FIN48)          -         10       0.02
                                           ---------  ---------  ---------
                                           $     320  $     208  $    0.42
                                           =========  =========  =========

* For the quarter ended December 31, 2009, before-tax unrealized gains
(losses) on derivatives, net includes $82 million related to commodity
derivatives, $267 million related to other derivatives, and $7 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 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. 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 (loss) to evaluate the company's operational trends and performance.

                                         Quarter Ended       Year Ended
                                          December 31,      December 31,
                                        ----------------  ----------------
millions                                  2010     2009     2010     2009
                                        -------  -------  -------  -------
Net cash provided by operating
 activities                             $ 1,315  $ 1,100  $ 5,247  $ 3,926
Add back:
   Change in accounts receivable            187      151      172      290
   Change in accounts payable and
    accrued expenses                       (134)    (449)     157     (269)
   Change in other items-net                (70)      67     (196)     411
                                        -------  -------  -------  -------
Discretionary cash flow from operations $ 1,298  $   869  $ 5,380  $ 4,358
                                        =======  =======  =======  =======





                     Anadarko Petroleum Corporation

               Reconciliation of GAAP to Non-GAAP Measures

                                                         December 31, 2010
                                                        ------------------
                                                        Quarter     Year
millions                                                 Ended     Ended
                                                        --------  --------
Discretionary cash flow from operations                 $  1,298  $  5,380
Less:  Capital expenditures                                1,277     5,169
                                                        --------  --------
Free cash flow                                          $     21  $    211
                                                        ========  ========


                                       Quarter Ended        Year Ended
                                     December 31, 2010   December 31, 2009
                                    ------------------  ------------------
                                      After   Per Share   After   Per Share
millions except per-share amounts      Tax    (diluted)    Tax    (diluted)
                                    --------  --------  --------  --------
Net income (loss) attributable to
 common stockholders                $    111  $   0.22  $    229  $   0.46
Less: Certain items affecting
 comparability                           (34)    (0.07)      208      0.42
                                    --------  --------  --------  --------
Adjusted net income (loss)          $    145  $   0.29  $     21  $   0.04
                                    ========  ========  ========  ========


Presented below are reconciliations of costs incurred (GAAP) to oil and gas
exploration and development costs (non-GAAP) and total debt (GAAP) to net
debt (non-GAAP). Management believes oil and 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                                                          2010
                                                               -----------
Costs incurred                                                 $     5,086
Asset retirement obligation liability incurred                         (86)
Cash expenditures for asset retirement obligations                      36
                                                               -----------
Oil and gas exploration and development costs                  $     5,036
                                                               ===========


                                                               December 31,
millions                                                          2010
                                                               -----------
Total debt                                                     $    13,013
Less:  Cash and cash equivalents                                     3,680
                                                               -----------
Net debt                                                       $     9,333
                                                               ===========

Net debt                                                       $     9,333
Stockholders' equity                                                20,684
                                                               -----------
Adjusted capitalization                                        $    30,017
                                                               ===========

                                                               -----------
Net debt to adjusted capitalization ratio                               31%
                                                               ===========





                     Anadarko Petroleum Corporation
                              (Unaudited)

                                         Quarter Ended       Year Ended
Summary Financial Information             December 31,      December 31,
                                        ----------------  ----------------
millions except per-share amounts        2010     2009     2010     2009
                                        -------  -------  -------  -------
Consolidated Statements of Income
                                        -------  -------  -------  -------
Revenues and Other
                                        -------  -------  -------  -------
Gas sales                               $   728  $   776  $ 3,420  $ 2,924
Oil and condensate sales                  1,454    1,254    5,592    4,022
Natural-gas liquids sales                   261      171      997      536
Gathering, processing and marketing
 sales                                      190      197      833      728
Gains (losses) on divestitures and
 other, net                                  58       19      142      133
Reversal of accrual for DWRRA dispute         -        -        -      657
                                        -------  -------  -------  -------
Total                                     2,691    2,417   10,984    9,000
                                        =======  =======  =======  =======
Costs and Expenses
                                        -------  -------  -------  -------
Oil and gas operating                       240      199      830      859
Oil and gas transportation and other*       209      137      816      664
Exploration                                 325      294      974    1,107
Gathering, processing and marketing         149      148      615      617
General and administrative                  294      325      982      983
Depreciation, depletion and
 amortization                               869      884    3,714    3,532
Other taxes                                 259      203    1,068      746
Impairments                                  69       36      216      115
                                        -------  -------  -------  -------
Total                                     2,414    2,226    9,215    8,623
                                        =======  =======  =======  =======
Operating Income (Loss)                     277      191    1,769      377
                                        =======  =======  =======  =======
Other (Income) Expense
                                        -------  -------  -------  -------
Interest expense                            213      198      855      702
(Gains) losses on commodity
 derivatives, net                           159      (95)    (893)     408
(Gains) losses on other derivatives, net   (371)    (267)     285     (582)
Other (income) expense, net                 (13)     (20)    (119)     (43)
                                        -------  -------  -------  -------
Total                                       (12)    (184)     128      485
                                        =======  =======  =======  =======
Income (Loss) Before Income Taxes           289      375    1,641     (108)
                                        =======  =======  =======  =======
Income Tax Expense (Benefit)                160      137      820       (5)
                                        =======  =======  =======  =======
Net Income (Loss)                       $   129  $   238  $   821  $  (103)
                                        =======  =======  =======  =======
Net Income Attributable to
 Noncontrolling Interests                    18        9       60       32
                                        =======  =======  =======  =======
Net Income (Loss) Attributable to
 Common Stockholders                    $   111  $   229  $   761  $  (135)
                                        =======  =======  =======  =======
Per Common Share:
                                        =======  =======  =======  =======
Net income (loss) attributable to
 common stockholders-basic              $  0.22  $  0.46  $  1.53  $ (0.28)
Net income (loss) attributable to
 common stockholders-diluted            $  0.22  $  0.46  $  1.52  $ (0.28)
                                        =======  =======  =======  =======
Average Number of Common Shares
 Outstanding-Basic                          496      492      495      480
                                        =======  =======  =======  =======
Average Number of Common Shares
 Outstanding-Diluted                        498      494      497      480
                                        =======  =======  =======  =======

                                        =======  =======  =======  =======
Exploration Expense
                                        -------  -------  -------  -------
Dry hole expense                        $    55  $    44  $   202  $   304
Impairments of unproved properties          154      128      480      476
Geological and geophysical expense           52       47      103      105
Exploration overhead and other               64       75      189      222
                                        -------  -------  -------  -------
Total                                   $   325  $   294  $   974  $ 1,107
                                        =======  =======  =======  =======

* For the quarter ended December 31, 2010, oil and gas transportation and
other expenses include $18 million related to idle rig costs in the Gulf of
Mexico. For the year ended December 31, 2010, oil and gas transportation
and other expenses include $27 million related to idle rig costs and
$19 million of rig termination fees related to contracted deepwater
drilling rigs in the Gulf of Mexico.





                     Anadarko Petroleum Corporation
                              (Unaudited)


                                         Quarter Ended       Year Ended
Summary Financial Information             December 31,      December 31,
                                        ----------------  ----------------
millions                                  2010     2009     2010     2009
                                        -------  -------  -------  -------
Cash Flow from Operating Activities
                                        -------  -------  -------  -------
Net income (loss)                       $   129  $   238  $   821  $  (103)
Depreciation, depletion and
 amortization                               869      884    3,714    3,532
Deferred income taxes                        19     (157)    (123)    (165)
Dry hole expense and impairments of
 unproved properties                        209      172      682      780
Impairments                                  69       36      216      115
(Gains) losses on divestitures, net         (17)       -      (29)     (44)
Unrealized (gains) losses on
 derivatives, net                           (48)    (356)    (114)     717
Reversal of accrual for DWRRA dispute         -        -        -     (657)
Other                                        68       52      213      183
                                        -------  -------  -------  -------
Discretionary Cash Flow from Operations   1,298      869    5,380    4,358
(Increase) decrease in accounts
 receivable                                (187)    (151)    (172)    (290)
Increase (decrease) in accounts payable
 and accrued expenses                       134      449     (157)     269
Other items-net                              70      (67)     196     (411)
                                        -------  -------  -------  -------
Net Cash Provided By Operating
 Activities                             $ 1,315  $ 1,100  $ 5,247  $ 3,926
                                        =======  =======  =======  =======

                                        =======  =======  =======  =======
Capital Expenditures                    $ 1,277  $ 1,688  $ 5,169  $ 4,558
                                        -------  -------  -------  -------


                                                 December 31,  December 31,
                                                    2010          2009
                                                 -----------   -----------
Condensed Balance Sheets
                                                 -----------   -----------
Cash and cash equivalents                        $     3,680   $     3,531
Other current assets                                   2,995         2,552
Net properties and equipment                          37,957        37,204
Other assets                                           1,616         1,514
Goodwill and other intangible assets                   5,311         5,322
                                                 -----------   -----------
Total Assets                                     $    51,559   $    50,123
                                                 -----------   -----------
Current debt                                     $       291   $         -
Other current liabilities                              3,823         3,824
Long-term debt                                        12,722        11,149
Midstream subsidiary note payable to a
 related party                                             -         1,599
Other long-term liabilities                           13,284        13,136
Stockholders' equity                                  20,684        19,928
Noncontrolling interests                                 755           487
                                                 -----------   -----------
Total Liabilities and Equity                     $    51,559   $    50,123
                                                 ===========   ===========
Capitalization
                                                 -----------   -----------
Total debt                                       $    13,013   $    12,748
Stockholders' equity                                  20,684        19,928
                                                 -----------   -----------
Total                                            $    33,697   $    32,676
                                                 ===========   ===========
Capitalization Ratios
                                                 -----------   -----------
Total debt                                                39%           39%
Stockholders' equity                                      61%           61%
                                                 ===========   ===========

Note: After applying relevant accounting guidance to the facts, as they are
known to the Company today, the Company's liability accrual for the
Deepwater Horizon event continues to be zero. Please refer to the Company's
report on Form 10-Q filed with the SEC on November 1, 2010, for additional
disclosure and information surrounding the treatment of this item.





                     Anadarko Petroleum Corporation
                              (Unaudited)


Sales Volumes and Prices

                            Average Daily Volumes       Sales Volumes
                            ----------------------- -----------------------
                                    Crude                   Crude
                                    Oil &                   Oil &
                            Natural Conden-         Natural Conden-
                              Gas    sate    NGLs     Gas    sate    NGLs
                            MMcf/d  MBbls/d MBbls/d   Bcf   MMBbls  MMBbls
                            ------- ------- ------- ------- ------- -------
Quarter Ended
 December 31, 2010
United States                 2,139     122      57     197      11       5
Algeria                                  51                       5
Other International                      21                       2
                            ------- ------- ------- ------- ------- -------
Total                         2,139     194      57     197      18       5
                            ------- ------- ------- ------- ------- -------

Quarter Ended
 December 31, 2009
United States                 2,076     133      47     191      12       4
Algeria                                  43                       4
Other International                      14                       1
                            ------- ------- ------- ------- ------- -------
Total                         2,076     190      47     191      17       4
                            ------- ------- ------- ------- ------- -------

Year Ended
 December 31, 2010
United States                 2,272     130      63     829      48      23
Algeria                                  55                      20
Other International                      16                       6
                            ------- ------- ------- ------- ------- -------
Total                         2,272     201      63     829      74      23
                            ------- ------- ------- ------- ------- -------

Year Ended
 December 31, 2009
United States                 2,217     120      47     809      44      17
Algeria                                  52                      19
Other International                      15                       5
                            ------- ------- ------- ------- ------- -------
Total                         2,217     187      47     809      68      17
                            ------- ------- ------- ------- ------- -------


Sales Volumes and Prices

                              Average Sales Price
                            -----------------------
                                    Crude
                                    Oil &
                            Natural Conden-
                              Gas    sate    NGLs
                            Per Mcf Per Bbl Per Bbl
                            ------- ------- -------
Quarter Ended
 December 31, 2010
United States               $  3.70 $ 78.55 $ 49.31
Algeria                               88.51
Other International                   82.79
                            ------- ------- -------
Total                       $  3.70 $ 81.64 $ 49.31
                            ------- ------- -------

Quarter Ended
 December 30, 2009
United States               $  4.06 $ 71.06 $ 39.91
Algeria                               72.69
Other International                   72.76
                            ------- ------- -------
Total                       $  4.06 $ 71.55 $ 39.91
                            ------- ------- -------

Year to Date
 December 30, 2010
United States               $  4.12 $ 74.96 $ 43.07
Algeria                               79.00
Other International                   76.89
                            ------- ------- -------
Total                       $  4.12 $ 76.22 $ 43.07
                            ------- ------- -------

Year to Date
 December 30, 2009
United States               $  3.61 $ 58.56 $ 31.42
Algeria                               59.51
Other International                   57.22
                            ------- ------- -------
Total                       $  3.61 $ 58.72 $ 31.42
                            ------- ------- -------



                            Average Daily    Sales Volumes
                            Volumes MBOE/d        MMBOE
                            --------------   --------------
Quarter Ended
 December 31, 2010               608               56
Quarter Ended
 December 31, 2009               583               53

Year Ended
 December 31, 2010               643              235
Year Ended
 December 31, 2009               604              220



Sales Revenue and Commodity Derivatives

                                                  Commodity Derivatives
                            Sales                      Gain (Loss)
                    ----------------------- ------------------------------
                                                              Crude Oil &
                            Crude             Natural Gas     Condensate
                            Oil &           --------------- --------------
                    Natural Conden-         Realiz- Unrea-  Reali-  Unrea-
millions              Gas    sate    NGLs     ed    lized     zed   lized
                    ------- ------- ------- ------- ------  ------  ------
Quarter Ended
 December 31, 2010
United States       $   728 $   879 $   261 $   176 $ (169) $  (19) $ (140)
Algeria                         418                              2      (9)
Other International             157
                    ------- ------- ------- ------- ------  ------  ------
Total               $   728 $ 1,454 $   261 $   176 $ (169) $  (17) $ (149)
                    ------- ------- ------- ------- ------  ------  ------

Quarter Ended
 December 31, 2009
United States       $   776 $   874 $   171 $   11  $  190  $    1  $ (101)
Algeria                         286                              1      (7)
Other International              94
                    ------- ------- ------- ------- ------  ------  ------
Total               $   776 $ 1,254 $   171 $   11  $  190  $    2  $ (108)
                    ------- ------- ------- ------- ------  ------  ------

Year Ended
 December 31, 2010
United States       $ 3,420 $ 3,556 $   997 $   513 $  353  $  (23) $   37
Algeria                       1,582                              8       5
Other International             454
                    ------- ------- ------- ------- ------  ------  ------
Total               $ 3,420 $ 5,592 $   997 $   513 $  353  $  (15) $   42
                    ------- ------- ------- ------- ------  ------  ------

Year Ended
 December 31, 2009
United States       $ 2,924 $ 2,585 $   536 $   277 $ (444) $   34  $ (223)
Algeria                       1,133                             16     (68)
Other International             304
                    ------- ------- ------- ------- ------  ------  ------
Total               $ 2,924 $ 4,022 $   536 $   277 $ (444) $   50  $ (291)
                    ------- ------- ------- ------- ------  ------  ------





                     Anadarko Petroleum Corporation
                 Estimated 2010 Year-end Proved Reserves

                                                                    MMBOE
                                                                   -------
2009 Reported Year-end Proved Reserves                               2,304
2010 Estimated Year-end Proved Reserves                              2,422
                                                                   =======

Non-Price-Related Additions (exclusive of divestments)                 330
Price-Related Revisions                                                 29
                                                                   =======
Total 2010 Reserve Additions                                           359


Oil and Gas Exploration and Development Costs (billions)           $ 5.036
Reserve Replacement before Price Revisions                             140%
Reserve Replacement including Price Revisions                          153%
                                                                   =======

2010 Estimated Year-end Proved Developed Reserves                       69%
2010 Estimated Year-end Proved Undeveloped Reserves                     31%
                                                                   =======

2010 Estimated Year-end Natural Gas Proved Reserves                     56%
2010 Estimated Year-end Liquids Proved Reserves                         44%
                                                                   =======





                     Anadarko Petroleum Corporation
         Commodity Hedge Positions (Excluding Natural Gas Basis)
                         As of January 31, 2011


                       Volume        Weighted Average Price per MMBtu
                      (thousand  -----------------------------------------
                       MMBtu/d)  Floor Sold  Floor Purchased  Ceiling Sold
                       --------  ----------  ---------------  ------------
Natural Gas
   Three-Way Collars
   2011                   480    $     5.00  $          6.50  $       8.29
   2012                   500    $     5.00  $          6.50  $       9.03

   Fixed Price -
    Financial     
   2011                    90    $     6.17


                       Volume        Weighted Average Price per barrel
                      (thousand  -----------------------------------------
                       MBbls/d)  Floor Sold  Floor Purchased  Ceiling Sold
                       --------  ----------  ---------------  ------------
Crude Oil
   Three-Way Collars
   2011                   126    $    64.29  $         79.29  $      99.95
   2012                     2    $    35.00  $         50.00  $      92.50





                        Interest Rate Derivatives
                         As of January 31, 2011

Instrument   Notional Amt.  Start Date  Maturity  Rate Paid  Rate Received
----------  --------------  ----------  --------  ---------  -------------
Swap         $750 Million    Oct-2011   Oct-2021    4.72%       3M LIBOR
Swap        $1,250 Million   Oct-2011   Oct-2041    4.83%       3M LIBOR
Swap         $250 Million    Oct-2012   Oct-2022    4.91%       3M LIBOR
Swap         $750 Million    Oct-2012   Oct-2042    4.80%       3M LIBOR

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