SOURCE: Anadarko Petroleum Corporation

Anadarko Petroleum Corporation

February 03, 2014 16:10 ET

Anadarko Announces 2013 Fourth-Quarter and Full-Year Results

HOUSTON, TX--(Marketwired - Feb 3, 2014) - Anadarko Petroleum Corporation (NYSE: APC) today announced 2013 fourth-quarter results, reporting a net loss attributable to common stockholders of $770 million, or $1.53 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items, which include a Tronox-related loss accrual, decreased net income by approximately $1.145 billion, or $2.27 per share (diluted), on an after-tax basis.(1) Cash flow from operating activities in the fourth quarter of 2013 was approximately $2.104 billion, and discretionary cash flow totaled $2.049 billion.(2)

For the year ended Dec. 31, 2013, Anadarko reported net income attributable to common stockholders of $801 million, or $1.58 per share (diluted), and full-year 2013 cash flow from operating activities was $8.888 billion. Discretionary cash flow for the year totaled $8.033 billion.(2)

2013 Highlights

  • Delivered record sales volumes, including an increase of more than 32,000 barrels-per-day in liquids volumes over 2012 from core horizontal growth plays in Wattenberg, Eagleford and East Texas/North Louisiana
  • Accelerated approximately $4.5 billion of value through announced asset monetizations
  • Reached milestones at multiple large oil projects with first oil at El Merk, the installation of the Lucius spar, and the sanctioning of the Heidelberg and TEN developments, along with progressing liquefied natural gas (LNG) off-take agreements
  • Achieved a 67-percent deepwater exploration/appraisal success rate

"In 2013, Anadarko built upon its multi-year track record of delivering consistent results, with an approximate 7-percent year-over-year increase in daily sales volumes, industry-leading deepwater exploration/appraisal success, unmatched portfolio management, and a 194-percent reserve-replacement ratio (before the effects of price revisions) at very competitive costs," said Al Walker, Anadarko Chairman, President and CEO. "I'm extraordinarily proud of the ability and focus demonstrated by our employees and the resiliency of our portfolio in meeting or exceeding our 2013 goals. I'm confident we'll continue to deliver differentiating results in 2014 and longer term through our focus on value acceleration, margin expansion and investment returns."

Sales Volumes and Proved Reserves
Anadarko's full-year sales volumes of natural gas, crude oil and natural gas liquids (NGLs) totaled a record 285 million barrels of oil equivalent (BOE), or an average of 781,000 BOE per day, representing an increase of approximately 7 percent over full-year 2012 sales volumes of 732,000 BOE per day. Fourth-quarter 2013 sales volumes of natural gas, crude oil and NGLs totaled 74 million BOE, or an average of 806,000 BOE per day.

Anadarko added 551 million BOE of proved reserves in 2013 before the effects of price revisions and incurred oil and natural gas exploration and development costs of $7.468 billion.(2) The company estimates its proved reserves at year-end 2013 totaled 2.79 billion BOE, with 72 percent of its reserves categorized as proved developed. At year-end 2013, Anadarko's proved reserves were comprised of 45 percent liquids and 55 percent natural gas.

U.S. Onshore Highlights
Anadarko's U.S. onshore operating areas achieved a 25-percent increase in oil volumes for full-year 2013 relative to 2012, driven by record production in several major growth plays, including the Wattenberg field, Eagleford Shale and East Texas/North Louisiana Horizontal play.

Anadarko's operated Wattenberg Horizontal program averaged more than 56,000 BOE per day in 2013, up almost 34,000 BOE per day over 2012, with the fourth quarter averaging more than 72,000 BOE per day. In October, the company announced a property exchange, which consolidated Anadarko's core acreage position, enabling more efficient development planning and utilization of infrastructure. Additionally, Wattenberg crude oil export capacity was expanded with the Plains Rail Terminal, which began operations in November. Construction is more than 90-percent complete at the Lancaster plant and the Front Range pipeline, which are both expected to be commissioned during the first quarter of 2014.

Strong performance in the Eagleford Shale, East Texas/North Louisiana Horizontal and Marcellus Shale contributed to an average increase of 59,000 BOE per day during 2013 in the Southern and Appalachia Region. Evaluation continued during the fourth quarter in the Wolfcamp opportunity in the Delaware Basin. To date, Anadarko has drilled 29 wells and is currently running seven operated rigs in the Wolfcamp Shale.

Mega-Project Milestones
In 2013, Anadarko achieved first oil at the El Merk development in Algeria. All three facilities are now operational, with recent net production achieving a rate of more than 30,000 barrels per day.

In the deepwater Gulf of Mexico, the company completed installation of the 80,000-barrels-of-oil-per-day Lucius spar, with the topsides expected to be towed to location in the first quarter of 2014. Lucius is progressing on schedule toward first oil production in the second half of 2014. Construction on the Lucius-look-alike Heidelberg spar is more than 70-percent complete, remaining on schedule for first oil production in 2016. The TEN development, which was sanctioned and received approval from the Government of Ghana in 2013, also is expected to achieve first oil in 2016.

Anadarko and its partners continue to make steady progress marketing LNG sourced from the Anadarko-operated Offshore Area 1 in Mozambique. To date, the partners have reached multiple non-binding Heads of Agreement (HOAs) for long-term LNG sales to buyers in premium Asian markets covering approximately two-thirds of the first 5-million-tonne-per-annum train.

Exploration Highlights
In 2013, Anadarko continued an active and successful deepwater exploration and appraisal program with a success rate of 67 percent.

Anadarko's 2013 success in the deepwater Gulf of Mexico was highlighted by the emergence of the Shenandoah Basin, which has the potential to be one of the largest oil accumulations ever discovered in the Gulf. Following the Anadarko-operated Shenandoah-2 appraisal well, which encountered more than 1,000 net feet of oil pay, and oil discoveries at the nearby Coronado and Yucatan prospects, Anadarko enhanced its ownership position in, and will become the operator of Coronado. Anadarko is the only company with ownership in all three discoveries in the Shenandoah Basin. In addition, Anadarko and its partners are accelerating appraisal activity in the basin with appraisal wells under way at Coronado and Yucatan, and a rig committed to drill a delineation well at Shenandoah beginning in the second quarter of 2014.

Offshore Mozambique, the company continued exploration and appraisal of its Offshore Area 1 block with two discoveries and six successful appraisal wells in 2013. In December, Anadarko's success in Mozambique was recognized by Platts with its 2013 Global Energy Award for Leadership in Exploration and Production.

Operations Report
For details on Anadarko's fourth-quarter 2013 operations and exploration program, please refer to the comprehensive Operations Report available at www.anadarko.com.

Financial Highlights
Anadarko ended 2013 with approximately $3.7 billion of cash on hand, up $1.2 billion from year-end 2012. During the year, the company generated $240 million of adjusted free cash flow, including $792 million of capital investments incurred by WES.(2) Anadarko also reached agreements to monetize a total of approximately $4.5 billion of assets, highlighted by the $2.64 billion sell-down of a portion of its interest in the Offshore Area 1 of Mozambique expected to close in the first quarter of 2014, the $860 million carried-interest agreement at Heidelberg and the recent $581 million divestiture of its non-operated interest in the Pinedale/Jonah field. At year-end 2013, Anadarko's net debt to adjusted capitalization ratio was approximately 31 percent, compared to 34 percent at year-end 2012.(2)

Tronox-Related Contingent Liability
In the fourth quarter, the company accrued an $850 million loss related to the ongoing Tronox Adversary Proceeding. The company currently believes a significant portion of this amount to be deductible; accordingly, it also has recorded a tax benefit of $274 million associated with the loss accrual. Applicable accounting guidance requires the company to accrue a loss if it is both probable that a liability has been incurred and the amount of that liability can be reasonably estimated. The company recorded its accrual in accordance with these guidelines, based on the company's assessment of the information available to it as of the date of this news release, and its conclusion that a loss related to the proceeding is now probable. The company determined the range of probable loss related to potential damages that ultimately may be awarded, after all appellate processes, to be $850 million to $5.15 billion. Based on information currently available to it, the company is unable to identify an amount within this range that is a better estimate than any other number in the range. When no amount within the range is a better estimate than any other amount, accounting guidance requires an accrual to be at the low end of the range of loss. Neither the range of probable loss nor the accrual includes any amounts for possible interest, attorneys' fees, or other costs, given the uncertainty and lack of information concerning these items available to the company at this time. However, these additional amounts could prove to be material. The company does not believe that the current accrued liability is representative of the amount the company could be required to pay to reach final resolution of the matter through settlement. The company currently expects that a settlement of the proceeding, if any, would require payment of an amount substantially greater than the current accrued liability.

A wide range of possible ultimate outcomes currently exists; accordingly, this accrual could change materially as events unfold and more information becomes available. The Court in its Memorandum of Opinion issued on December 12, 2013 concluded that damages were $14.459 billion prior to the application of any offset claim that Kerr-McGee may have, and the amount of any such offset could vary substantially. As requested by the Court, Kerr-McGee submitted a brief on January 13, 2014, and the plaintiffs' reply brief is due by February 12, 2014. Kerr-McGee will have until 30 days after the filing of the plaintiffs' reply brief to respond to that brief, and the parties can request a hearing on the issues being briefed. Investors are cautioned that the accrual and the range of probable loss identified above could change materially over time, including between the time of this news release and the filing of the company's Form 10-K. A detailed discussion of the potential liability related to this matter, and the related contingent liability recorded, will be included in the company's 2013 Form 10-K that will be filed later this month.

As previously stated, the company strongly disagrees with the Court's Opinion, and continues to reserve all of its objections to the Opinion and its rights to appeal.

Conference Call Tomorrow at 8 a.m. CST, 9 a.m. EST
Anadarko will host a conference call on Tuesday, Feb. 4, 2014, at 8 a.m. Central Standard Time (9 a.m. Eastern Standard Time) to discuss fourth-quarter and full-year 2013 results. The dial-in number is 855.812.0464 in the U.S., or 970.300.2271 internationally. The confirmation number is 28584560. 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 be available on the website for approximately 30 days following the conference call.

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

(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 2013, the company had approximately 2.79 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. For more information about Anadarko and APC Flash Feed updates, please visit www.anadarko.com.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Anadarko believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release, including the nature and timing of a final judgment or other decisions rendered relating to the Tronox Adversary Proceeding, the amount of damages, interest, attorneys' fees and other costs for which the defendants may be found liable, and the effect of such amounts on our business, prospects, results of operations, financial condition and liquidity, Anadarko's ability to finalize year-end reserves, consummate the transactions described in this news release, timely complete and commercially operate the projects and drilling prospects identified in this news release, achieve production and budget expectations on its mega projects, and successfully plan, secure necessary government approvals, finance, build and operate an LNG project. See "Risk Factors" in the company's 2012 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 December 31, 2013  
    Before     After     Per Share  
millions except per-share amounts   Tax     Tax     (diluted)  
Total gains (losses) on derivatives, net, less net cash received from settlements*   $ (52 )   $ (34 )   $ (0.07 )
Gains (losses) on divestitures, net     (635 )     (402 )     (0.80 )
Impairments     (162 )     (103 )     (0.21 )
Third-party property restoration     (35 )     (22 )     (0.04 )
Tronox-related contingent loss     (850 )     (576 )     (1.14 )
Change in uncertain tax positions (FIN 48)     -       (6 )     (0.01 )
Deepwater Horizon settlement and related costs     (3 )     (2 )     -  
    $ (1,737 )   $ (1,145 )   $ (2.27 )
                         

* For the quarter ended December 31, 2013, this includes $(155) million related to commodity derivatives, $111 million related to other derivatives, and $(8) million related to gathering, processing, and marketing sales. 

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

* For the quarter ended December 31, 2012, this includes $3 million related to commodity derivatives, $157 million related to other derivatives, and $2 million related to gathering, processing, and marketing sales. 

Reconciliation of GAAP to Non-GAAP Measures

Below are reconciliations of cash provided by operating activities (GAAP) to discretionary cash flow from operations (non-GAAP), free cash flow (non-GAAP), and adjusted free cash flow (non-GAAP), as well as net income (loss) attributable to common stockholders (GAAP) to adjusted net income (loss) (non-GAAP) as required under Regulation G of the Securities Exchange Act of 1934. Management uses discretionary cash flow from operations because it is useful in comparisons of oil and gas exploration and production companies as it excludes fluctuations in assets and liabilities. Management uses free cash flow and adjusted free cash flow to demonstrate the Company's ability to internally fund capital expenditures and to service or incur additional debt. Management uses adjusted net income (loss) to evaluate the Company's operational trends and performance. 

             
    Quarter Ended     Year Ended  
    December 31,     December 31,  
millions   2013     2012     2013     2012  
Net cash provided by operating activities   $ 2,104     $ 2,220     $ 8,888     $ 8,339  
Add back                                
  Deepwater Horizon settlement and related costs     8       4       17       (6 )
  Algeria exceptional profits tax settlement     -       (392 )     (730 )     (1,006 )
  Change in accounts receivable     5       (111 )     (241 )     (520 )
  Change in accounts payable and accrued expenses     51       (10 )     167       476  
  Change in other items - net     (119 )     (99 )     (68 )     (126 )
Discretionary cash flow from operations   $ 2,049     $ 1,612     $ 8,033     $ 7,157  
                                 
   
Anadarko Petroleum Corporation  
Reconciliation of GAAP to Non-GAAP Measures  
   
    Quarter Ended     Year Ended  
    December 31,     December 31,  
millions   2013     2012     2013     2012  
Discretionary cash flow from operations   $ 2,049     $ 1,612     $ 8,033     $ 7,157  
Less capital expenditures*     2,612       1,933       8,523       7,311  
Free cash flow   $ (563 )   $ (321 )   $ (490 )   $ (154 )
Collection of Algeria exceptional profits tax receivable     -       392       730       1,006  
Adjusted free cash flow   $ (563 )   $ 71     $ 240     $ 852  
                                 

* Includes Western Gas Partners, LP (WES) capital expenditures of $170 million for the quarter ended December 31, 2013, $169 million for the quarter ended December 31, 2012, $792 million for the year ended December 31, 2013, and $529 million for the year ended December 31, 2012. 

             
    Quarter Ended     Quarter Ended  
    December 31, 2013     December 31, 2012  
    After     Per Share     After     Per Share  
millions except per-share amounts   Tax     (diluted)     Tax     (diluted)  
Net income (loss) attributable to common stockholders   $ (770 )   $ (1.53 )   $ 203     $ 0.40  
Certain items affecting comparability     (1,145 )     (2.27 )     (254 )     (0.51 )
Adjusted net income (loss)   $ 375     $ 0.74     $ 457     $ 0.91  
                                 

Presented below are reconciliations of costs incurred (GAAP) to oil and natural gas exploration and development costs (non-GAAP) and total debt (GAAP) to net debt (non-GAAP). Management believes oil and natural gas exploration and development costs is a more accurate reflection of the expenditures incurred during the current year, excluding certain obligations to be paid in future periods. Management uses net debt as a measure of the Company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand.

       
    Year Ended  
    December 31,  
millions   2013  
Costs incurred   $ 7,486  
Asset retirement obligation liability incurred     (180 )
Cash expenditures for asset retirement obligations     162  
Oil and natural gas exploration and development costs   $ 7,468  
         
    December 31,  
millions   2013  
Total debt   $ 13,565  
Less cash and cash equivalents     3,698  
Net debt   $ 9,867  
         
Net debt   $ 9,867  
Stockholders' equity     21,857  
Adjusted capitalization   $ 31,724  
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   2013     2012     2013     2012  
Consolidated Statements of Income                                
Revenues and Other                                
Natural-gas sales   $ 841     $ 762     $ 3,388     $ 2,444  
Oil and condensate sales     2,417       2,099       9,178       8,728  
Natural-gas liquids sales     373       311       1,262       1,224  
Gathering, processing, and marketing sales     289       240       1,039       911  
Gains (losses) on divestitures and other, net     (582 )     (2 )     (286 )     104  
Total     3,338       3,410       14,581       13,411  
Costs and Expenses                                
Oil and gas operating     323       244       1,092       976  
Oil and gas transportation and other     259       245       1,022       955  
Exploration     615       284       1,329       1,946  
Gathering, processing, and marketing     231       211       869       763  
General and administrative     303       430       1,090       1,246  
Depreciation, depletion, and amortization     969       1,028       3,927       3,964  
Other taxes     258       254       1,077       1,224  
Impairments     162       223       794       389  
Algeria exceptional profits tax settlement     -       -       33       (1,797 )
Deepwater Horizon settlement and related costs     3       3       15       18  
Total     3,123       2,922       11,248       9,684  
Operating Income (Loss)     215       488       3,333       3,727  
Other (Income) Expense                                
Interest expense     173       181       686       742  
(Gains) losses on derivatives, net     (5 )     (249 )     (398 )     (326 )
Other (income) expense, net     20       10       89       (4 )
Tronox-related contingent loss     850       -       850       (250 )
Total     1,038       (58 )     1,227       162  
Income (Loss) Before Income Taxes     (823 )     546       2,106       3,565  
Income Tax Expense (Benefit)     (98 )     356       1,165       1,120  
Net Income (Loss)     (725 )     190       941       2,445  
Net Income (Loss) Attributable to Noncontrolling Interests     45       (13 )     140       54  
Net Income (Loss) Attributable to Common Stockholders   $ (770 )   $ 203     $ 801     $ 2,391  
Per Common Share                                
Net income (loss) attributable to common stockholders-basic   $ (1.53 )   $ 0.40     $ 1.58     $ 4.76  
Net income (loss) attributable to common stockholders-diluted   $ (1.53 )   $ 0.40     $ 1.58     $ 4.74  
Average Number of Common Shares Outstanding-Basic     504       500       502       500  
Average Number of Common Shares Outstanding-Diluted     504       502       505       502  
                                 
Exploration Expense                                
Dry hole expense   $ 255     $ 94     $ 556     $ 440  
Impairments of unproved properties     186       61       308       1,104  
Geological and geophysical expense     97       62       208       151  
Exploration overhead and other     77       67       257       251  
Total   $ 615     $ 284     $ 1,329     $ 1,946  
                                 
   
Anadarko Petroleum Corporation  
(Unaudited)  
   
    Quarter Ended     Year Ended  
Summary Financial Information   December 31,     December 31,  
millions   2013     2012     2013     2012  
Cash Flows from Operating Activities                                
Net income (loss)   $ (725 )   $ 190     $ 941     $ 2,445  
Depreciation, depletion, and amortization     969       1,028       3,927       3,964  
Deferred income taxes     (445 )     69       90       164  
Dry hole expense and impairments of unproved properties     441       155       864       1,544  
Impairments     162       223       794       389  
(Gains) losses on divestitures, net     635       48       470       71  
Total (gains) losses on derivatives, net     4       (249 )     (392 )     (308 )
Net cash received in settlement of derivative instruments     48       87       85       685  
Deepwater Horizon settlement and related costs     3       3       15       18  
Algeria exceptional profits tax settlement     -       -       33       (1,797 )
Tronox-related contingent loss     850       -       850       (250 )
Certain other nonoperating items     35       -       110       -  
Other     72       58       246       232  
Discretionary Cash Flow from Operations     2,049       1,612       8,033       7,157  
Deepwater Horizon settlement and related costs     (8 )     (4 )     (17 )     6  
Algeria exceptional profits tax settlement     -       392       730       1,006  
(Increase) decrease in accounts receivable     (5 )     111       241       520  
Increase (decrease) in accounts payable and accrued expenses     (51 )     10       (167 )     (476 )
Other items-net     119       99       68       126  
Net Cash Provided by Operating Activities   $ 2,104     $ 2,220     $ 8,888     $ 8,339  
                                 
Capital Expenditures   $ 2,612     $ 1,933     $ 8,523     $ 7,311  
                                 
             
    December 31,     December 31,  
millions   2013     2012  
Condensed Balance Sheets                
Cash and cash equivalents   $ 3,698     $ 2,471  
Accounts receivable, net of allowance     2,470       2,747  
Algeria exceptional profits tax settlement     -       730  
Other current assets     674       847  
Net properties and equipment     40,929       38,398  
Other assets     2,096       1,716  
Goodwill and other intangible assets     5,662       5,680  
Total Assets   $ 55,529     $ 52,589  
Current asset retirement obligations   $ 409     $ 298  
Current portion of long-term debt     500       -  
Other current liabilities     4,542       3,696  
Long-term debt     13,065       13,269  
Deferred income taxes     9,245       8,759  
Other long-term liabilities     4,118       4,685  
Stockholders' equity     21,857       20,629  
Noncontrolling interests     1,793       1,253  
Total Liabilities and Equity   $ 55,529     $ 52,589  
Capitalization                
Total debt   $ 13,565     $ 13,269  
Stockholders' equity     21,857       20,629  
Total   $ 35,422     $ 33,898  
                 
Capitalization Ratios                
Total debt     38 %     39 %
Stockholders' equity     62 %     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, 2013                                          
United States   2,643   167   100   243   16   9   $ 3.46   $ 93.01   $ 40.30
Algeria   -   62   -   -   6   -     -     109.18     -
Other International   -   36   -   -   3   -     -     110.56     -
Total   2,643   265   100   243   25   9   $ 3.46   $ 99.20   $ 40.30
                                           
Quarter Ended December 31, 2012                                          
United States   2,521   159   87   232   15   8   $ 3.28   $ 92.50   $ 38.97
Algeria   -   47   -   -   4   -     -     109.68     -
Other International   -   28   -   -   3   -     -     107.56     -
Total   2,521   234   87   232   22   8   $ 3.28   $ 97.74   $ 38.97
                                           
Year Ended December 31, 2013                                          
United States   2,652   158   91   968   58   33   $ 3.50   $ 97.02   $ 37.97
Algeria   -   55   -   -   20   -     -     109.20     -
Other International   -   35   -   -   13   -     -     109.07     -
Total   2,652   248   91   968   91   33   $ 3.50   $ 101.41   $ 37.97
                                           
Year Ended December 31, 2012                                          
United States   2,495   149   83   913   55   30   $ 2.68   $ 97.46   $ 40.44
Algeria   -   54   -   -   20   -     -     110.29     -
Other International   -   30   -   -   11   -     -     112.61     -
Total   2,495   233   83   913   86   30   $ 2.68   $ 102.35   $ 40.44
                                           
         
         
    Average Daily Volumes
MBOE/d
  Sales Volumes
MMBOE
         
Quarter Ended December 31, 2013   806   74
Quarter Ended December 31, 2012   741   68
         
Year Ended December 31, 2013   781   285
Year Ended December 31, 2012   732   268
         
Sales Revenue and Commodity Derivatives
    Sales     Net Cash Received (Paid) in Settlement of Commodity Derivatives

millions
 
Natural Gas
  Crude Oil &
Condensate
 
NGLs
   
Natural Gas
  Crude Oil &
Condensate
   
NGLs
Quarter Ended December 31, 2013                                        
United States   $ 841   $ 1,426   $ 373     $ 42   $ 8     $ 2
Algeria     -     618     -       -     (3 )     -
Other International     -     373     -       -     -       -
Total   $ 841   $ 2,417   $ 373     $ 42   $ 5     $ 2
                                         
Quarter Ended December 31, 2012                                        
United States   $ 762   $ 1,351   $ 311     $ 114   $ 34     $ 4
Algeria     -     469     -       -     1       -
Other International     -     279     -       -     -       -
Total   $ 762   $ 2,099   $ 311     $ 114   $ 35     $ 4
                                         
Year Ended December 31, 2013                                        
United States   $ 3,388   $ 5,601   $ 1,262     $ 133   $ (53 )   $ 9
Algeria     -     2,184     -       -     6       -
Other International     -     1,393     -       -     -       -
Total   $ 3,388   $ 9,178   $ 1,262     $ 133   $ (47 )   $ 9
                                         
Year Ended December 31, 2012                                        
United States   $ 2,444   $ 5,332   $ 1,224     $ 678   $ 70     $ 10
Algeria     -     2,182     -       -     (5 )     -
Other International     -     1,214     -       -     -       -
Total   $ 2,444   $ 8,728   $ 1,224     $ 678   $ 65     $ 10
                                         
   
Anadarko Petroleum Corporation  
Estimated Year-End Proved Reserves 2011 - 2013  
                   
                   
MMBOE   2013     2012     2011  
Proved Reserves                  
Beginning of year   2,560     2,539     2,422  
Reserves additions and revisions                  
  Discoveries and extensions   145     82     174  
  Infill-drilling additions   410     383     203  
    Drilling-related reserves additions and revisions   555     465     377  
  Other non-price-related revisions   (40 )   (31 )   7  
    Net organic reserves additions   515     434     384  
  Acquisition of proved reserves in place   36     4     -  
  Price-related revisions   (23 )   (68 )   8  
Total reserves additions and revisions   528     370     392  
Sales in place   (12 )   (81 )   (29 )
Production   (284 )   (268 )   (246 )
End of year   2,792     2,560     2,539  
Proved Developed Reserves                  
Beginning of year   1,883     1,811     1,673  
End of year   2,003     1,883     1,811  
                   
 
Anadarko Petroleum Corporation
Commodity Hedge Positions
As of February 3, 2014
             
        Weighted Average Price per barrel
    Volume
(MBbls/d)
  Floor Sold   Floor Purchased   Ceiling Sold
Crude Oil                  
  Fixed Price - Financial                  
  2014                  
    WTI   70   $ 96.03        
    Brent   37   $ 109.19        
    107   $ 100.58        
         
        Weighted Average Price per MMBtu
    Volume            
    (thousand MMBtu/d)   Floor Sold   Floor Purchased   Ceiling Sold
Natural Gas                      
  Three-Way Collars                      
  2014   600   $ 2.75   $ 3.75   $ 5.01
                       
  2015   635   $ 2.75   $ 3.75   $ 4.76
                       
  Fixed Price - Financial                      
  2014   600   $ 4.26            
                       
  Extendable Fixed Price - Financial                      
  2014 (January - June)*   400   $ 4.19            
                       
*Includes an option to extend the contract term to December 2014 at the same price.
 
           
           
Interest Rate Derivatives
As of February 3, 2014
           
Instrument Notional Amt. Start Date Maturity Rate Paid Rate Received
Swap $750 Million June 2014 June 2024 6.00% 3M LIBOR
Swap $1,100 Million June 2014 June 2044 5.57% 3M LIBOR
Swap $50 Million Sept. 2016 Sept. 2026 5.91% 3M LIBOR
Swap $750 Million Sept. 2016 Sept. 2046 5.86% 3M LIBOR