SOURCE: Anadarko Petroleum Corporation

Anadarko Petroleum Corporation

February 06, 2012 16:05 ET

Anadarko Announces 2011 Fourth-Quarter and Full-Year Results

HOUSTON, TX--(Marketwire - Feb 6, 2012) - Anadarko Petroleum Corporation (NYSE: APC) today announced 2011 fourth-quarter results, reporting a net loss attributable to common stockholders of $358 million, or $.72 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 $781 million, or $1.57 per share (diluted) on an after-tax basis.1 Cash flow from operating activities in the fourth quarter of 2011 includes a $4 billion payment to settle the BP dispute. This resulted in negative cash flow from operating activities for the fourth quarter of $2.087 billion. Discretionary cash flow for the quarter totaled $1.752 billion.2

For the year ended Dec. 31, 2011, Anadarko reported a net loss from continuing operations attributable to common stockholders of $2.649 billion, or $5.32 per share (diluted), and full-year 2011 cash flow from operating activities was $2.505 billion, both of which were impacted by the BP settlement and payment. Discretionary cash flow totaled $7.178 billion.

2011 Operational Highlights

  • Delivered record sales volumes of 248 million BOE (barrels of oil equivalent), driven by a 10-percent year-over-year increase in liquids
  • Added 392 million BOE of proved reserves, replacing 159 percent of production
  • Achieved 80-percent success rate in offshore exploration and appraisal drilling programs
  • Established net resource potential of 500 million to 1.5 billion BOE in the Horizontal Wattenberg
  • More than tripled the original recoverable resource estimate offshore Mozambique to 15 to 30-plus trillion cubic feet (Tcf)

"During 2011, we continued to demonstrate the power of Anadarko's capital-efficient portfolio by achieving sales volumes at the high end of guidance with capital spending at the low end of the guidance range. We also generated significant discretionary cash flow and delivered record sales volumes, strong reserve additions at very competitive costs, and a leading deepwater exploration and appraisal drilling success rate," said Anadarko Chairman and CEO Jim Hackett. "By continuing to focus capital investments on our liquids-rich opportunities, we achieved 10-percent year-over-year growth in liquids sales volumes, highlighted by production records in the Eagleford Shale, Wattenberg field, Greater Natural Buttes area, Bone Spring and certain other U.S. onshore resource plays. We successfully unitized and sanctioned the Lucius project in the Gulf of Mexico, with anticipated first oil in 2014. Also in the Gulf, we've continued to advance the Caesar/Tonga development toward first oil, which is expected by mid-year 2012. Internationally, the El Merk project in Algeria is about 88-percent complete, with significant oil volumes expected near year end, and we continue to de-risk and advance growth opportunities offshore Mozambique and Ghana. The depth and performance of our portfolio continues to keep us on the path toward meeting our strategic objectives."

2011 Sales Volumes and Proved Reserves
Anadarko's full-year 2011 sales volumes of natural gas, crude oil and natural gas liquids (NGLs) totaled a record 248 million BOE, or 680,000 BOE per day, which was an increase of 6 percent over full-year 2010 sales volumes of 235 million BOE. Fourth-quarter 2011 sales volumes of natural gas, crude oil and NGLs totaled 63 million BOE, or 683,000 BOE per day, a 12-percent increase over the fourth quarter of 2010.

Anadarko added 392 million BOE of proved reserves in 2011 and incurred costs of approximately $5.561 billion associated with its oil and natural gas exploration and development activities.2 The company estimates its proved reserves at year-end 2011 totaled 2.54 billion BOE, with approximately 71 percent of its reserves in the proved developed category and approximately 29 percent categorized as proved undeveloped. At year-end 2011, Anadarko's proved reserves were comprised of approximately 55 percent natural gas and 45 percent liquids.

2011 U.S. Onshore Highlights
Anadarko's U.S. onshore operating areas generated an overall year-over-year increase in sales volumes of more than 11 percent, highlighted by growth of nearly 200 percent in its shale plays and record volumes in the higher-margin, liquids-rich Wattenberg, Greater Natural Buttes and Bone Spring areas. At year-end 2011, Anadarko's shale plays accounted for more than 10 percent of the company's total sales volumes, compared to less than 1 percent at the beginning of 2010, and represented approximately 5 percent of the company's total proved reserves.

In November 2011, Anadarko updated the resource potential of its horizontal Niobrara and Codell opportunities in the liquids-rich Wattenberg field of northeastern Colorado. Based upon the results of this horizontal drilling program, the company announced a net resource potential within the Wattenberg field of 500 million to 1.5 billion BOE, with significant additional potential outside the field boundaries. Anadarko is currently operating five horizontal rigs in the Wattenberg field and two additional horizontal rigs that are evaluating liquids-rich opportunities in Wyoming's Powder River Basin. To enhance the strategic alignment of its upstream and midstream assets in Colorado, Anadarko acquired the Wattenberg Plant in March 2011. This acquisition, combined with Western Gas Partners, LP's (WES) acquisition of the Platte Valley Plant and WES's ownership of the Fort Lupton Plant, along with other midstream assets, is enabling continued growth and value-enhancing opportunities within the Wattenberg field and greater DJ Basin.

Anadarko accelerated production growth in the liquids-rich Eagleford Shale during 2011, exiting the year with gross volumes of approximately 77,000 BOE per day in the play, with a liquids yield of more than 65 percent. The growth in this highly economic field was aided by the company's entry into a $1.6 billion joint venture and major expansions in midstream infrastructure, and strategic service agreements.

2011 Exploration Highlights
In 2011, Anadarko's deepwater exploration and appraisal programs delivered an extraordinary success rate of 80 percent, with discoveries offshore Mozambique, offshore Ghana and in the Gulf of Mexico.

Through additional drilling offshore Mozambique, Anadarko and its partners' exploration efforts more than tripled the original estimate of recoverable natural gas resources to a range of 15 to 30-plus Tcf, making this area one of the world's most important natural gas discoveries over the last 10 years. To date, the partnership has announced a total of seven successful wells in the discovery complex located in the Offshore Area 1 of the Rovuma Basin. To commercialize the discovery area, the partnership continues to advance the development of a liquefaction facility initially designed for two, 5-million-tonne-per-annum trains.

In the Deepwater Tano Block offshore Ghana, Anadarko and its partners continued to advance the Tweneboa, Enyenra and Ntomme (TEN) complex toward a plan of development with four successful delineation wells during the year. On the adjacent West Cape Three Points Block, the partners announced three discoveries and one successful appraisal well during the year. With additional appraisal success, these discoveries have the potential to anchor new development projects on the block.

The company has resumed an active deepwater exploration and appraisal program in the Gulf of Mexico and made its first post-moratorium discovery at the Cheyenne East prospect. The well is being tied back to the Independence Hub facility, with production expected during the first quarter of 2012. In addition, Anadarko recently received the necessary permits to drill its Spartacus prospect, located near the company's sanctioned Lucius development.

2011 Financial Highlights

  • Generated approximately $7.2 billion of discretionary cash flow, increasing cash flow per BOE by 26 percent over 2010 to approximately $29 per BOE
  • Removed significant uncertainty regarding future liabilities via the BP settlement
  • Received $419 million of contingent sales proceeds related to the 2008 divestiture of the Peregrino field offshore Brazil

"We generated strong discretionary cash flow of almost $7.2 billion in 2011, primarily driven by the growth of higher-margin liquids volumes," said Hackett. "This growth resulted in the generation of $625 million in free cash flow2 3 during the year, even taking into account the $880 million associated with strategic acquisitions of two natural gas processing plants. We believe the depth and quality of Anadarko's diverse portfolio will continue to provide for significant future cash generation, as well as the flexibility to prudently allocate capital during this period of low natural gas prices.

"In addition, we reached a settlement with BP over the 2010 Deepwater Horizon event, removing significant uncertainties for our stakeholders and returning investor and management focus to the value-creation opportunities in our portfolio. We look forward to updating our stakeholders regarding our capital program for 2012 and plans for value-based growth at our upcoming Investor Conference scheduled for March 13 in The Woodlands," added Hackett.

During the quarter, Anadarko remitted approximately $4 billion to BP as part of its settlement agreement and received insurance proceeds of approximately $138 million associated with the Deepwater Horizon events. Also included in the items affecting comparability as described on page 7 of this release, the company recorded a non-cash price-related impairment of approximately $1.5 billion with no associated impact on proved reserves, and a non-cash charge of $250 million relating to the Tronox Adversary Proceeding.

Operations Report
For more details on Anadarko's 2011 operations, please refer to the comprehensive report on fourth-quarter 2011 activity. The report is available at www.anadarko.com on the Investor Relations page.

Conference Call Tomorrow at 8 a.m. CST, 9 a.m. EST
Anadarko will host a conference call on Tuesday, February 7, at 8 a.m. Central Standard Time (9 a.m. Eastern Standard Time) to discuss fourth-quarter and year-end results. The dial-in number is 888.679.8035 in the United States or 617.213.4848 for international calls. The confirmation number is 64650969. 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.

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

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 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.

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.

3 Free cash flow includes a $321 million current tax benefit associated with the Deepwater Horizon settlement.

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, successfully plan, build and operate an LNG project, and successfully defend itself against remaining claims relating to the Deepwater Horizon event (including, but not limited to fines, penalties and punitive damages). See "Risk Factors" in the company's 2010 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 "resource potential," "net resource potential," "recoverable resource estimate," "recoverable natural gas 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, 2010, 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, 2011
Before After Per Share
millions except per-share amounts Tax Tax (diluted)
Deepwater Horizon settlement and related costs $ 147 $ 94 $ 0.19
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 (FIN48) -- (11 ) (0.02 )
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.
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, including unproved properties (136 ) (73 ) (0.15 )
$ (142 ) $ (78 ) $ (0.16 )
* 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.

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 December 31, Year Ended December 31,
millions 2011 2010 2011 2010
Net cash provided by operating activities $ (2,087 ) $ 1,315 $ 2,505 $ 5,247
Add back:
Deepwater Horizon settlement and related costs 3,873 13 3,930 15
Change in accounts receivable 50 187 989 172
Change in accounts payable and accrued expenses (37 ) (134 ) (287 ) 157
Change in other items--net (47 ) (70 ) 41 (196 )
Discretionary cash flow from operations $ 1,752 $ 1,311 $ 7,178 $ 5,395
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
Quarter Ended December 31, Year Ended December 31,
millions 2011 2010 2011 2010
Discretionary cash flow from operations $ 1,752 $ 1,311 $ 7,178 $ 5,395
Less: Capital expenditures* 1,942 1,277 6,553 5,169
Free cash flow $ (190 ) $ 34 $ 625 $ 226
* Includes Western Gas Partners, LP (WES) capital expenditures of $56 million and $16 million for the three months ended December 31, 2011, and 2010, respectively, and $439 million and $81 million for the year ended December 31, 2011, and 2010, respectively.
Quarter Ended December 31, 2011 Quarter Ended December 31, 2010
After Per Share After Per Share
millions except per-share amounts Tax (diluted) Tax (diluted)
Net income (loss) attributable to common stockholders $ (358 ) $ (0.72 ) $ 111 $ 0.22
Less: Certain items affecting comparability (781 ) (1.57 ) (78 ) (0.16 )
Adjusted net income (loss) $ 423 $ 0.85 $ 189 $ 0.38

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 2011
Costs incurred $ 5,641
Asset retirement obligation liability incurred (148 )
Cash expenditures for asset retirement obligations 68
Oil and natural gas exploration and development costs $ 5,561
millions December 31, 2011
Total debt $ 15,230
Less: Cash and cash equivalents 2,697
Net debt $ 12,533
Net debt $ 12,533
Stockholders' equity 18,105
Adjusted capitalization $ 30,638
Net debt to adjusted capitalization ratio 41 %

Anadarko Petroleum Corporation
(Unaudited)
Quarter Ended Year Ended
Summary Financial Information December 31, December 31,
millions except per-share amounts 2011 2010 2011 2010
Consolidated Statements of Income
Revenues and Other
Natural-gas sales $ 736 $ 728 $ 3,300 $ 3,420
Oil and condensate sales 2,124 1,454 8,072 5,592
Natural-gas liquids sales 382 261 1,462 997
Gathering, processing, and marketing sales 298 190 1,048 833
Gains (losses) on divestitures and other, net 299 58 85 142
Total 3,839 2,691 13,967 10,984
Costs and Expenses
Oil and gas operating 263 240 993 830
Oil and gas transportation and other 258 209 891 816
Exploration 354 325 1,076 974
Gathering, processing, and marketing 201 149 791 615
General and administrative 276 281 1,060 967
Depreciation, depletion, and amortization 928 869 3,830 3,714
Other taxes 360 259 1,492 1,068
Impairments 1,487 69 1,774 216
Deepwater Horizon settlement and related costs (147 ) 13 3,930 15
Total 3,980 2,414 15,837 9,215
Operating Income (Loss) (141 ) 277 (1,870 ) 1,769
Other (Income) Expense
Interest expense 197 213 839 855
(Gains) losses on commodity derivatives, net (245 ) 159 (562 ) (893 )
(Gains) losses on other derivatives, net 84 (371 ) 1,023 285
Other (income) expense, net 256 (13 ) 254 (119 )
Total 292 (12 ) 1,554 128
Income (Loss) Before Income Taxes (433 ) 289 (3,424 ) 1,641
Income Tax Expense (Benefit) (94 ) 160 (856 ) 820
Net Income (Loss) $ (339 ) $ 129 $ (2,568 ) $ 821
Net Income Attributable to Noncontrolling Interests 19 18 81 60
Net Income (Loss) Attributable to Common Stockholders $ (358 ) $ 111 $ (2,649 ) $ 761
Per Common Share:
Net income (loss) attributable to common stockholders--basic $ (0.72 ) $ 0.22 $ (5.32 ) $ 1.53
Net income (loss) attributable to common stockholders--diluted $ (0.72 ) $ 0.22 $ (5.32 ) $ 1.52
Average Number of Common Shares Outstanding--Basic 498 496 498 495
Average Number of Common Shares Outstanding--Diluted 498 498 498 497
Exploration Expense
Dry hole expense $ 79 $ 55 $ 154 $ 202
Impairments of unproved properties 123 154 471 480
Geological and geophysical expense 94 52 246 103
Exploration overhead and other 58 64 205 189
Total $ 354 $ 325 $ 1,076 $ 974
Anadarko Petroleum Corporation
(Unaudited)
Quarter Ended Year Ended
Summary Financial Information December 31, December 31,
millions 2011 2010 2011 2010
Cash Flows from Operating Activities
Net income (loss) $ (339 ) $ 129 $ (2,568 ) $ 821
Depreciation, depletion, and amortization 928 869 3,830 3,714
Deferred income taxes (266 ) 19 (1,461 ) (123 )
Dry hole expense and impairments of unproved properties 202 209 625 682
Impairments 1,487 69 1,774 216
(Gains) losses on divestitures, net (265 ) (17 ) (22 ) (29 )
Unrealized (gains) losses on derivatives, net (151 ) (48 ) 616 (114 )
Deepwater Horizon settlement and related costs* (147 ) 13 3,930 15
Other 303 68 454 213
Discretionary Cash Flow from Operations 1,752 1,311 7,178 5,395
Deepwater Horizon settlement and related costs (3,873 ) (13 ) (3,930 ) (15 )
(Increase) decrease in accounts receivable (50 ) (187 ) (989 ) (172 )
Increase (decrease) in accounts payable and accrued expenses 37 134 287 (157 )
Other items--net 47 70 (41 ) 196
Net Cash Provided by Operating Activities $ (2,087 ) $ 1,315 $ 2,505 $ 5,247
Capital Expenditures $ 1,942 $ 1,277 $ 6,553 $ 5,169
* Deepwater Horizon settlement and related costs are excluded from discretionary cash flow from operations.
December 31, December 31,
millions 2011 2010
Condensed Balance Sheets
Cash and cash equivalents $ 2,697 $ 3,680
Other current assets 4,234 2,995
Net properties and equipment 37,501 37,957
Other assets 1,516 1,616
Goodwill and other intangible assets 5,831 5,311
Total Assets $ 51,779 $ 51,559
Current debt $ 170 $ 291
Other current liabilities 4,729 3,823
Long-term debt 15,060 12,722
Other long-term liabilities 12,837 13,284
Stockholders' equity 18,105 20,684
Noncontrolling interests 878 755
Total Liabilities and Equity $ 51,779 $ 51,559
Capitalization
Total debt $ 15,230 $ 13,013
Stockholders' equity 18,105 20,684
Total $ 33,335 $ 33,697
Capitalization Ratios
Total debt 46 % 39 %
Stockholders' equity 54 % 61 %
Anadarko Petroleum Corporation
(Unaudited)
Sales Volumes and Prices
Average Daily Volumes Sales Volumes Average Sales Price
Crude Oil & Crude Oil & Crude Oil &
Natural Gas Condensate NGLs Natural Gas Condensate NGLs Natural Gas Condensate NGLs
MMcf/d MBbls/d MBbls/d Bcf MMBbls MMBbls Per Mcf Per Bbl Per Bbl
Quarter Ended December 31, 2011
United States 2,328 129 75 214 12 7 $ 3.43 $ 100.32 $ 55.29
Algeria 60 6 111.29
Other International 31 2 110.98
Total 2,328 220 75 214 20 7 $ 3.43 $ 104.82 $ 55.29
Quarter Ended December 31, 2010
United States 2,139 122 57 197 11 5 $ 3.70 $ 78.55 $ 49.31
Algeria 51 5 88.51
Other International 21 2 82.79
Total 2,139 194 57 197 18 5 $ 3.70 $ 81.64 $ 49.31
Year Ended December 31, 2011
United States 2,334 132 74 852 48 27 $ 3.87 $ 97.70 $ 53.95
Algeria 57 21 108.74
Other International 28 10 110.12
Total 2,334 217 74 852 79 27 $ 3.87 $ 102.24 $ 53.95
Year Ended December 31, 2010
United States 2,272 130 63 829 48 23 $ 4.12 $ 74.96 $ 43.07
Algeria 55 20 79.00
Other International 16 6 76.89
Total 2,272 201 63 829 74 23 $ 4.12 $ 76.22 $ 43.07
Average Daily Volumes MBOE/d Sales Volumes
MMBOE
Quarter Ended December 31, 2011 683 63
Quarter Ended December 31, 2010 608 56
Year Ended December 31, 2011 680 248
Year Ended December 31, 2010 643 235
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 December 31, 2011
United States $ 736 $ 1,190 $ 382 $ 73 $ 246 $ (2 ) $ (57 ) $ -- $ (15 )
Algeria 614 -- --
Other International 320
Total $ 736 $ 2,124 $ 382 $ 73 $ 246 $ (2 ) $ (57 ) $ -- $ (15 )
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 ) $ -- $ --
Year Ended December 31, 2011
United States $ 3,300 $ 4,667 $ 1,462 $ 288 $ 192 $ (58 ) $ 131 $ (1 ) $ 4
Algeria 2,258 (3 ) 9
Other International 1,147
Total $ 3,300 $ 8,072 $ 1,462 $ 288 $ 192 $ (61 ) $ 140 $ (1 ) $ 4
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 $ -- $ --
Anadarko Petroleum Corporation
Estimated Year-End Proved Reserves 2009 - 2011
MMBOE 2011 2010 2009
Proved Reserves
Beginning of year 2,422 2,304 2,277
Reserves additions and revisions
Discoveries and extensions 174 83 70
Infill-drilling additions 203 312 212
Drilling related reserves additions and revisions 377 395 282
Other non-price related revisions 7 (66 ) --
Acquisition of proved reserves in place -- 1 32
Price-related revision 8 29 (39 )
Total reserves additions and revisions 392 359 275
Sales in place (29 ) (6 ) (24 )
Production (246 ) (235 ) (224 )
End of year 2,539 2,422 2,304
Proved Developed Reserves
Beginning of year 1,673 1,624 1,600
End of year 1,811 1,673 1,624
Anadarko Petroleum Corporation
Commodity Hedge Positions (Excluding Natural Gas Basis)
As of February 6, 2012
Weighted Average Price per barrel
Volume (thousand MMBtu/d) Fixed Price 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) Fixed Price Floor Sold Floor Purchased Ceiling Sold
Crude Oil
Fixed Price - Financial
2012 (February - December)
Brent 40 $ 110.10
WTI 20 $ 101.39
60 $ 107.19
Three-Way Collars
2012 2 $ 35.00 $ 50.00 $ 92.50
Interest Rate Derivatives
As of February 6, 2012
Instrument Notional Amt. Start Date Maturity Rate Paid Rate Received
Swap $250 Million Oct. 2012 Oct. 2022 4.91% 3M LIBOR
Swap $750 Million Oct. 2012 Oct. 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