SOURCE: Anadarko Petroleum Corporation

Anadarko Petroleum Corporation

July 29, 2014 16:05 ET

Anadarko Announces Second-Quarter 2014 Results

Increases Midpoint of 2014 Sales-Volume Guidance by 5 Million BOE

HOUSTON, TX--(Marketwired - Jul 29, 2014) - Anadarko Petroleum Corporation (NYSE: APC) today announced its financial and operating results for the second quarter of 2014, including net income attributable to common stockholders of $227 million, or $0.45 per share (diluted). These results include certain items typically excluded by the investment community in published estimates, which in the aggregate decreased net income by $442 million or $0.87 per share (diluted).(1) Cash flow from operating activities in the second quarter of 2014 was $2.462 billion, and discretionary cash flow totaled $2.434 billion.(2)

SECOND-QUARTER 2014 HIGHLIGHTS

  • Delivered record average daily sales volumes of 848,000 barrels of oil equivalent (BOE) per day, including a 50,000-barrels-per-day increase in oil sales volumes over the second quarter of 2013 from the U.S. onshore
  • Achieved oil production milestones in Algeria and Ghana, and advanced the Gulf of Mexico Lucius project on schedule
  • Reached a settlement agreement on the Tronox Adversary Proceeding
  • Announced a 50-percent increase in the company's quarterly dividend to 27 cents per share

"Anadarko delivered exceptional operating performance during the second quarter, with an increase of 65,000 barrels of oil per day over the second quarter of 2013 led by our U.S. onshore assets and the El Merk development in Algeria," said Al Walker, Anadarko Chairman, President and CEO. "We are increasing our full-year sales-volume guidance by 5 million BOE, reflecting our confidence in the portfolio's capability to continue delivering strong results. To further enhance performance, we will continue to be an active portfolio manager and pursue additional opportunities to accelerate value as appropriate."

OPERATIONS SUMMARY
During the second quarter, Anadarko's sales volumes of crude oil, natural gas and natural gas liquids (NGLs) totaled a record 77 million BOE, or an average of 848,000 BOE per day, representing an increase of almost 100,000 BOE per day over the second quarter of 2013.

Anadarko's U.S. onshore liquids sales volumes increased by more than 86,000 barrels per day over the second quarter of 2013, led by outstanding growth in the company's liquids-rich assets in the Wattenberg field, Eagleford Shale, Wolfcamp Shale and the East Texas/North Louisiana area. The Wattenberg field averaged a record 169,000 BOE per day in the second quarter, a 63,000-BOE-per-day increase over the second quarter of 2013. Wattenberg's growth was highlighted by an increase of 52,000 barrels per day of higher-margin liquids volumes relative to the second-quarter 2013, resulting from the continued strong performance of the company's horizontal program, higher NGL recoveries through the startup of the Lancaster cryogenic plant and lower line pressures in the field.

Anadarko achieved oil production milestones at the El Merk development in Algeria, which recently achieved a gross-daily production record of more than 150,000 barrels per day, and at the Jubilee field offshore Ghana, where cumulative gross oil production surpassed 100 million barrels during the quarter.

In the Gulf of Mexico, Anadarko completed all major construction and installation projects at its Lucius development. The 80,000-barrels-of-oil-per-day Lucius spar is expected to achieve first oil on schedule around the beginning of the fourth quarter of 2014. In addition, construction on the hull of the Heidelberg spar is nearly complete, and it remains on schedule to achieve first oil in 2016.

OPERATIONS REPORT
For details on Anadarko's operating areas and exploration program, including tables illustrating same-store sales information,(3) please refer to the comprehensive report on second-quarter 2014 activity. The report is available at www.anadarko.com.

FINANCIAL SUMMARY
During the quarter, the company generated more than $2.4 billion of discretionary cash flow and ended the quarter with approximately $5.4 billion of cash on hand, while increasing the quarterly dividend by 50 percent. In addition, Anadarko entered into a settlement agreement with the plaintiffs in the Tronox Adversary Proceeding. The settlement agreement is subject to approval by the District Court, which the company expects to occur during the second half of 2014.

Anadarko also enhanced its liquidity position by issuing $1.25 billion of senior notes, and by entering into new unsecured credit facilities, which are available upon the satisfaction of certain conditions. Additionally, the company successfully completed a secondary sale of WGP common units, which resulted in cash proceeds of approximately $335 million to Anadarko.

CONFERENCE CALL TOMORROW AT 8 A.M. CDT, 9 A.M. EDT
Anadarko will host a conference call on Wednesday, July 30, 2014, at 8 a.m. Central Daylight Time (9 a.m. Eastern Daylight Time) to discuss second-quarter results, current operations and the company's outlook for the remainder of 2014. The dial-in number is 855.812.0464 in the United States or 970.300.2271 internationally. The confirmation number is 53684166. 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
Nine pages of summary financial data follow, including current hedge positions and updated financial and production guidance.

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

(2) See the accompanying table for a reconciliation of GAAP to non-GAAP financial measures and a statement indicating why management believes the non-GAAP financial measures provide useful information for investors.

(3) See the accompanying table for a reconciliation of same-store sales. "Same-store" sales volumes are intended to present performance of Anadarko's continuing asset base, giving effect to recently announced or closed divestitures.

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 court approval of the settlement agreement related to the Tronox Adversary Proceeding, issuance of the injunction and dismissal with prejudice of the claims asserted in the Adversary Proceeding, Anadarko's ability to achieve its production targets, successfully manage its capital expenditures, and achieve production and budget expectations on its mega projects. See "Risk Factors" in the company's 2013 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 June 30, 2014  
    Before     After     Per Share  
millions except per-share amounts   Tax     Tax     (diluted)  
Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives*   $ (237 )   $ (151 )   $ (0.30 )
Gains (losses) on divestitures, net     9       8       0.02  
Impairments     (117 )     (75 )     (0.15 )
Change in uncertain tax positions (FIN 48)     --       (115 )     (0.23 )
Contingent Clean Water Act penalty accrual     (90 )     (90 )     (0.17 )
Interest expense related to Tronox settlement     (19 )     (19 )     (0.04 )
    $ (454 )   $ (442 )   $ (0.87 )
                         

* For the quarter ended June 30, 2014, this includes $(76) million related to commodity derivatives, $(159) million related to other derivatives, and $(2) million related to gathering, processing, and marketing sales.

       
    Quarter Ended June 30, 2013  
    Before     After     Per Share  
millions except per-share amounts   Tax     Tax     (diluted)  
Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives*   $ 641     $ 407     $ 0.81  
Gains (losses) on divestitures, net     13       9       0.02  
Impairments     (10 )     (4 )     (0.01 )
Third-party well and platform decommissioning obligation     (141 )     (89 )     (0.18 )
Reversal of Canadian indemnification liability     56       35       0.07  
Change in uncertain tax positions (FIN 48)     --       37       0.07  
    $ 559     $ 395     $ 0.78  
                         
                         

* For the quarter ended June 30, 2013, this includes $373 million related to commodity derivatives, $262 million related to other derivatives, and $6 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), 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 certain fluctuations in assets and liabilities and current taxes related to certain items affecting comparability. Management uses 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   Six Months Ended  
  June 30,   June 30,  
millions 2014   2013   2014   2013  
Net cash provided by operating activities $ 2,462   $ 2,502   $ 4,191   $ 5,005  
Add back                        
  Algeria exceptional profits tax settlement   --     (248 )   --     (698 )
  Increase (decrease) in accounts receivable   (83 )   (217 )   183     (257 )
  (Increase) decrease in accounts payable and accrued expenses   (84 )   (346 )   (21 )   (221 )
  Other items--net   82     129     27     11  
  Certain nonoperating and other excluded items   1     88     1     124  
  Current taxes related to asset monetization   56     --     576     --  
Discretionary cash flow from operations $ 2,434   $ 1,908   $ 4,957   $ 3,964  
                         
                         
 
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
 
    Quarter Ended   Six Months Ended
    June 30,   June 30,
millions   2014   2013   2014     2013
Discretionary cash flow from operations   $ 2,434   $ 1,908   $ 4,957     $ 3,964
Less capital expenditures*     2,402     1,866     4,970       3,613
Free cash flow   $ 32   $ 42   $ (13 )   $ 351
                           
                           

* Includes Western Gas Partners, LP (WES) capital expenditures of $173 million for the quarter ended June 30, 2014, $138 million for the quarter ended June 30, 2013, $343 million for the six months ended June 30, 2014, and $437 million for the six months ended June 30, 2013.

           
    Quarter Ended     Quarter Ended
    June 30, 2014     June 30, 2013
    After     Per Share     After   Per Share
millions except per-share amounts   Tax     (diluted)     Tax   (diluted)
Net income (loss) attributable to common stockholders   $ 227     $ 0.45     $ 929   $ 1.83
Less certain items affecting comparability     (442 )     (0.87 )     395     0.78
Adjusted net income (loss)   $ 669     $ 1.32     $ 534   $ 1.05
                             
                             

Presented below is a reconciliation of total debt (GAAP) to net debt (non-GAAP). Management uses net debt as a measure of the Company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand.

     
  June 30,  
millions 2014  
Total debt $ 13,414  
Less cash and cash equivalents   5,365  
Net debt $ 8,049  
       
Net debt $ 8,049  
Stockholders' equity   19,331  
Adjusted capitalization $ 27,380  
       
Net debt to adjusted capitalization ratio   29 %
       
       
   
Anadarko Petroleum Corporation  
(Unaudited)  
   
    Quarter Ended     Six Months Ended  
Summary Financial Information   June 30,     June 30,  
millions except per-share amounts   2014     2013     2014     2013  
Consolidated Statements of Income                                
Revenues and Other                                
Natural-gas sales   $ 991     $ 935     $ 2,208     $ 1,742  
Oil and condensate sales     2,705       1,995       5,129       4,372  
Natural-gas liquids sales     411       261       797       564  
Gathering, processing, and marketing sales     278       249       589       480  
Gains (losses) on divestitures and other, net     54       57       1,560       232  
Total     4,439       3,497       10,283       7,390  
Costs and Expenses                                
Oil and gas operating     273       245       586       492  
Oil and gas transportation and other     281       253       547       508  
Exploration     502       178       801       442  
Gathering, processing, and marketing     250       222       502       421  
General and administrative     305       260       603       532  
Depreciation, depletion, and amortization     1,048       940       2,172       1,962  
Other taxes     361       245       675       525  
Impairments     117       10       120       39  
Algeria exceptional profits tax settlement     --       --       --       33  
Deepwater Horizon settlement and related costs     93       4       93       7  
Total     3,230       2,357       6,099       4,961  
Operating Income (Loss)     1,209       1,140       4,184       2,429  
Other (Income) Expense                                
Interest expense     186       172       369       336  
(Gains) losses on derivatives, net     323       (656 )     776       (465 )
Other (income) expense, net     (13 )     98       (12 )     92  
Tronox-related contingent loss     19       --       4,319       --  
Total     515       (386 )     5,452       (37 )
Income (Loss) Before Income Taxes     694       1,526       (1,268 )     2,466  
Income tax expense (benefit)     428       567       1,092       1,023  
Net Income (Loss)     266       959       (2,360 )     1,443  
Net income (loss) attributable to noncontrolling interests     39       30       82       54  
Net Income (Loss) Attributable to Common Stockholders   $ 227     $ 929     $ (2,442 )   $ 1,389  
Per Common Share                                
Net income (loss) attributable to common stockholders--basic   $ 0.45     $ 1.84     $ (4.84 )   $ 2.75  
Net income (loss) attributable to common stockholders--diluted   $ 0.45     $ 1.83     $ (4.84 )   $ 2.74  
Average Number of Common Shares Outstanding--Basic     505       502       505       501  
Average Number of Common Shares Outstanding--Diluted     507       504       505       504  
                                 
Exploration Expense                                
Dry hole expense   $ 302     $ 66     $ 423     $ 224  
Impairments of unproved properties     109       20       186       39  
Geological and geophysical expense     37       23       80       60  
Exploration overhead and other     54       69       112       119  
Total   $ 502     $ 178     $ 801     $ 442  
                                 
                                 
   
Anadarko Petroleum Corporation  
(Unaudited)  
   
    Quarter Ended     Six Months Ended  
Summary Financial Information   June 30,     June 30,  
millions   2014     2013     2014     2013  
Cash Flows from Operating Activities                                
Net income (loss)   $ 266     $ 959     $ (2,360 )   $ 1,443  
Adjustments to reconcile net income (loss) to net cash provided by operating activities                                
  Depreciation, depletion, and amortization     1,048       940       2,172       1,962  
  Deferred income taxes     142       401       188       563  
  Dry hole expense and impairments of unproved properties     411       86       609       263  
  Impairments     117       10       120       39  
  (Gains) losses on divestitures, net     (9 )     (13 )     (1,468 )     (157 )
  Total (gains) losses on derivatives, net     325       (659 )     786       (460 )
  Operating portion of net cash received (paid) in settlement of derivative instruments     (88 )     18       (186 )     65  
  Other     54       77       108       121  
  Changes in assets and liabilities                                
    Deepwater Horizon settlement and related costs     92       1       92       1  
    Algeria exceptional profits tax settlement     --       248       --       698  
    Tronox-related contingent loss     19       --       4,319       --  
    (Increase) decrease in accounts receivable     83       217       (183 )     257  
    Increase (decrease) in accounts payable and accrued expenses     84       346       21       221  
    Other items--net     (82 )     (129 )     (27 )     (11 )
Net Cash Provided by Operating Activities   $ 2,462     $ 2,502     $ 4,191     $ 5,005  
                                 
Capital Expenditures   $ 2,402     $ 1,866     $ 4,970     $ 3,613  
                                 
                                 
             
    June 30,     December 31,  
millions   2014     2013  
Condensed Balance Sheets            
Cash and cash equivalents   $ 5,365     $ 3,698  
Accounts receivable, net of allowance     3,079       2,722  
Other current assets     536       688  
Net properties and equipment     41,487       40,929  
Other assets     2,352       2,082  
Goodwill and other intangible assets     5,595       5,662  
Total Assets   $ 58,414     $ 55,781  
Other current liabilities   $ 5,499     $ 5,703  
Deepwater Horizon settlement and related costs     92       --  
Tronox-related contingent liability     5,169       --  
Long-term debt     13,414       13,065  
Deferred income taxes     9,186       9,245  
Other long-term liabilities     3,882       4,118  
Stockholders' equity     19,331       21,857  
Noncontrolling interests     1,841       1,793  
Total Liabilities and Equity   $ 58,414     $ 55,781  
Capitalization                
Total debt   $ 13,414     $ 13,565  
Stockholders' equity     19,331       21,857  
Total   $ 32,745     $ 35,422  
                 
Capitalization Ratios                
Total debt     41 %     38 %
Stockholders' equity     59 %     59 %
                 
                 
 
Anadarko Petroleum Corporation
(Unaudited)
 
Sales Volumes and Prices                                    
    Average Daily Sales Volumes   Sales Volumes   Average Sales Price
   
Natural Gas
MMcf/d
  Crude Oil &
Condensate
MBbls/d
 
NGLs
MBbls/d
 
Natural Gas
Bcf
  Crude Oil &
Condensate
MMBbls
 
NGLs
MMBbls
 
Natural Gas
Per Mcf
  Crude Oil &
Condensate
Per Bbl
 
NGLs
Per Bbl
Quarter Ended June 30, 2014                                          
United States   2,620   196   119   238   18   11   $ 4.16   $ 98.69   $ 37.39
Algeria   --   72   1   --   7   --     --     108.64     66.69
Other International   --   23   --   --   2   --     --     110.16     --
Total   2,620   291   120   238   27   11   $ 4.16   $ 102.04   $ 37.66
                                           
Quarter Ended June 30, 2013                                          
United States   2,647   155   83   241   14   7   $ 3.88   $ 94.99   $ 34.33
Algeria   --   43   --   --   4   --     --     102.18     --
Other International   --   28   --   --   3   --     --     101.84     --
Total   2,647   226   83   241   21   7   $ 3.88   $ 97.21   $ 34.33
                                           
Six Months Ended June 30, 2014                                          
United States   2,658   189   109   481   34   20   $ 4.59   $ 96.86   $ 40.08
Algeria   --   65   1   --   12   --     --     108.60     66.69
Other International   --   27   --   --   5   --     --     109.00     --
Total   2,658   281   110   481   51   20   $ 4.59   $ 100.76   $ 40.22
                                           
Six Months Ended June 30, 2013                                          
United States   2,668   157   85   483   28   15   $ 3.61   $ 96.17   $ 36.29
Algeria   --   48   --   --   9   --     --     108.06     --
Other International   --   36   --   --   7   --     --     107.66     --
Total   2,668   241   85   483   44   15   $ 3.61   $ 100.26   $ 36.29
                                           
                                           
         
    Average Daily Volumes
MBOE/d
  Sales Volumes
MMBOE
Quarter Ended June 30, 2014   848   77
Quarter Ended June 30, 2013   750   69
         
Six Months Ended June 30, 2014   834   151
Six Months Ended June 30, 2013   771   140
         
         
                 
Sales Revenue and Commodity Derivatives                
    Sales   Net Cash Received (Paid) from Settlement of Commodity Derivatives

millions
 
Natural Gas
  Crude Oil &
Condensate
 
NGLs
 
Natural Gas
    Crude Oil &
Condensate
   
NGLs
Quarter Ended June 30, 2014                                        
United States   $ 991   $ 1,768   $ 404   $ (41 )   $ (44 )   $ 2
Algeria     --     711     7     --       (5 )     --
Other International     --     226     --     --       --       --
Total   $ 991   $ 2,705   $ 411   $ (41 )   $ (49 )   $ 2
                                         
Quarter Ended June 30, 2013                                        
United States   $ 935   $ 1,336   $ 261   $ (16 )   $ 1     $ 3
Algeria     --     400     --     --       33       --
Other International     --     259     --     --       --       --
Total   $ 935   $ 1,995   $ 261   $ (16 )   $ 34     $ 3
                                         
Six Months Ended June 30, 2014                                        
United States   $ 2,208   $ 3,308   $ 790   $ (122 )   $ (60 )   $ 2
Algeria     --     1,293     7     --       --       --
Other International     --     528     --     --       --       --
Total   $ 2,208   $ 5,129   $ 797   $ (122 )   $ (60 )   $ 2
                                         
Six Months Ended June 30, 2013                                        
United States   $ 1,742   $ 2,729   $ 564   $ 51     $ 2     $ 5
Algeria     --     937     --     --       14       --
Other International     --     706     --     --       --       --
Total   $ 1,742   $ 4,372   $ 564   $ 51     $ 16     $ 5
                                         
                                         
   
Anadarko Petroleum Corporation  
Financial and Operating External Guidance  
As of July 29, 2014  
             
    3rd Qtr     Total Year  
    Guidance *     Guidance *  
                                 
    Units     Units  
                                 
Total Sales Volumes (MMBOE)   76     --   78     299     --   302  
Total Sales Volumes (MBOE/d)   826     --   848     819     --   827  
                                 
Crude Oil (MBbl/d)   304     --   311     283     --   286  
                                 
  United States   203     --   208     195     --   199  
  Algeria   72     --   73     68     --   70  
  Ghana   29     --   30     19     --   20  
                                 
Natural Gas (MMcf/d)                                
                                 
  United States   2,425     --   2,475     2,530     --   2,560  
                                 
Natural Gas Liquids (MBbl/d)                                
                                 
  United States   110     --   120     112     --   115  
  Algeria   2     --   3     1     --   2  
                                 
                                 
    $ / Unit     $ / Unit  
Price Differentials vs NYMEX (w/o hedges)                                
                                 
Crude Oil ($/Bbl)   (2.00 )   --   2.00     (2.00 )   --   2.00  
                                 
  United States   (6.00 )   --   (1.00 )   (6.00 )   --   (1.00 )
  Algeria   5.00     --   10.00     5.00     --   10.00  
  Ghana   3.00     --   8.00     4.00     --   9.00  
                                 
Natural Gas ($/Mcf)                                
                                 
  United States   (0.50 )   --   (0.25 )   (0.35 )   --   (0.25 )
                                 
* All volumes exclude the impact from China and Pinedale/Jonah.                                
                                 
                                 
   
Anadarko Petroleum Corporation  
Financial and Operating External Guidance  
As of July 29, 2014  
             
    3rd Qtr     Total Year  
    Guidance *     Guidance *  
                                 
    $ MM     $ MM  
Other Revenues                                
  Marketing and Gathering Margin   50     --   70     230     --   250  
  Minerals and Other   45     --   55     190     --   210  
                                 
                                 
    $ / BOE     $ / BOE  
Costs and Expenses                                
  Oil & Gas Direct Operating   3.80     --   4.00     3.80     --   4.00  
  Oil & Gas Transportation/Other   3.85     --   4.05     3.80     --   3.90  
  Depreciation, Depletion, and Amortization   14.00     --   14.50     14.00     --   14.50  
  Production Taxes (% of Product Revenue)   9.0 %   --   9.5 %   8.5 %   --   9.0 %
                                 
    $ MM     $ MM  
                                 
  General and Administrative   350     --   370     1,200     --   1,300  
  Exploration Expense                                
    Non-Cash   150     --   200     850     --   950  
    Cash   105     --   115     400     --   450  
  Interest Expense (net)   195     --   205     760     --   770  
  Other (Income) Expense - Includes Noncontrolling Interests   60     --   70     175     --   195  
                                 
Tax Rate                                
  Algeria (All current)   45 %   --   55 %   45 %   --   55 %
  Rest of Company (50% Current for Q3 and 10% for FY)   40 %   --   50 %   35 %   --   45 %
                                 
                                 
Avg. Shares Outstanding (MM)                                
  Basic   505     --   506     504     --   505  
  Diluted   507     --   508     507     --   508  
                                 
                                 
Capital Investment (Excluding Western Gas Partners, LP)   $ MM     $ MM  
                                 
  APC Capital Expenditures   2,100     --   2,300     8,600     --   8,800  
                                 
* Excludes items affecting comparability                                
                                 
                                 
 
Anadarko Petroleum Corporation
Commodity Hedge Positions (Excluding Natural Gas Basis)
As of July 29, 2014
                 
        Weighted Average Price per Barrel
    Volume
(MBbls/d)
  Floor Sold   Floor Purchased   Ceiling Sold
Crude Oil                      
  Three-Way Collars                      
  2015                      
    Brent   25   $ 85.00   $ 100.00   $ 117.55
                       
Fixed Price - Financial                      
2014                      
    WTI   70   $ 96.03            
    Brent   70   $ 109.55            
    140   $ 101.94            
           
    Volume   Weighted Average Price per MMBtu
    (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   1,000   $ 4.23            
                         
                         
                     
Interest-Rate Derivatives
As of July 29, 2014
                     
Instrument   Notional Amt.   Start Date   Maturity   Rate Paid   Rate Received
Swap   $50 Million   Sept. 2016   Sept. 2026   5.91%   3M LIBOR
Swap   $1,850 Million   Sept. 2016   Sept. 2046   6.05%   3M LIBOR
                     
                     
 
Anadarko Petroleum Corporation
Reconciliation of Same-Store Sales
 
Average Daily Sales Volumes
 
    Quarter Ended June 30, 2014   Quarter Ended June 30, 2013
   
Natural Gas
MMcf/d
  Crude Oil &
Condensate
MBbls/d
 
NGLs
MBbls/d
 
Total
MBOE/d
 
Natural Gas
MMcf/d
  Crude Oil &
Condensate
MBbls/d
 
NGLs
MBbls/d
 
Total
MBOE/d
   
   
U.S. Onshore   2,444   146   113   667   2,279   96   74   550
Deepwater Gulf of Mexico   176   41   6   76   280   46   6   98
International and Alaska   --   101   1   102   --   74   --   74
Same-Store Sales   2,620   288   120   845   2,559   216   80   722
China and Pinedale/Jonah   --   3   --   3   88   10   3   28
Total   2,620   291   120   848   2,647   226   83   750