Anadarko Announces 2012 Fourth-Quarter and Full-Year Results

HOUSTON, TX -- (Marketwire) -- 02/04/13 -- Anadarko Petroleum Corporation (NYSE: APC) today announced 2012 fourth-quarter results, reporting net income attributable to common stockholders of $203 million, or $.40 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 $254 million, or $.51 per share (diluted) on an after-tax basis.(1) Cash flow from operating activities in the fourth quarter of 2012 was $2.220 billion. Discretionary cash flow for the quarter totaled $1.612 billion.(2)

For the year ended Dec. 31, 2012, Anadarko reported net income attributable to common stockholders of $2.391 billion, or $4.74 per share (diluted), and full-year 2012 cash flow from operating activities was $8.339 billion. Discretionary cash flow for the year totaled $7.157 billion.

2012 Operational Highlights

  • Delivered record sales volumes, representing an 8-percent increase over 2011
  • Achieved gross processed production milestones of 100,000 barrels of oil equivalent (BOE) per day in four U.S. onshore plays
  • Added 434 million BOE of proved reserves, replacing 162 percent of production, before the effects of price revisions
  • Announced two of the world's largest discoveries of 2012 offshore Mozambique

"Anadarko's outstanding operational results in 2012 demonstrated the flexibility and strength of our capital-efficient portfolio," said Anadarko President and CEO Al Walker. "We achieved record production, highlighted by a 25,000 barrel-per-day increase in higher-margin liquids sales volumes over 2011, while continuing to safely improve efficiencies in every segment of our business. We achieved a reserve-replacement ratio of 162 percent, before the effects of price revisions, at competitive costs, and we remain on track to meet our goal of 3 billion BOE of proved reserves by the end of 2014. We also made significant progress advancing several large-scale development projects, contributing to our transparent future growth. We delivered a 67-percent success rate in 2012 from our deepwater exploration and appraisal drilling program, where we've had a very strong three-year average success rate of almost 70 percent. The combination of industry-leading deepwater exploration success and strong, capital-efficient operating results gives Anadarko a track record our employees are very proud of and look forward to building upon in 2013."

2012 Sales Volumes and Proved Reserves
Anadarko's full-year sales volumes of natural gas, crude oil and natural gas liquids (NGLs) totaled a record 268 million BOE, or approximately 732,000 BOE per day, an increase of 8 percent over full-year 2011 sales volumes of approximately 248 million BOE. Fourth-quarter 2012 sales volumes of natural gas, crude oil and NGLs totaled 68 million BOE, or 741,000 BOE per day.

Anadarko added 434 million BOE of proved reserves in 2012, before the effects of price revisions, and incurred oil and natural gas exploration and development costs of $6.358 billion.(2) The company estimates its proved reserves at year-end 2012 totaled 2.56 billion BOE, with 74 percent of its reserves in the proved developed category and 26 percent categorized as proved undeveloped. At year-end 2012, Anadarko's proved reserves were comprised of 46 percent liquids and 54 percent natural gas.

2012 U.S. Onshore Highlights
Anadarko's U.S. onshore operating areas achieved a 28-percent increase in oil sales volumes for the full year relative to 2011. As announced in December, the company achieved gross processed production milestones of 100,000 BOE per day in four core growth plays (Wattenberg, Eagleford, Greater Natural Buttes and Marcellus), and made significant progress to enable future production growth throughout its U.S. onshore portfolio by continuing to expand its large and growing midstream infrastructure.

During 2012, Anadarko increased the net estimated resource potential in the core of its liquids-rich Wattenberg Horizontal play to a new range of 1.0 billion to 1.5 billion BOE, with significant additional potential on the company's large mineral interest outside the core of the field. The Wattenberg field continues to generate outstanding economics, with rates of return in excess of 100 percent, and delivered sales volumes growth of more than 25 percent over 2011, including a 41-percent increase in oil sales volumes.

In the liquids-rich Eagleford Shale, Anadarko achieved a 93-percent increase in sales volumes and continued to significantly improve drilling and completions performance over 2011. By the end of 2012, drilling cycle times in the field averaged 9.2 days from spud to rig release, representing a 26-percent improvement over the fourth quarter of 2011. Other core areas that demonstrated record sales-volumes growth in 2012 included Greater Natural Buttes, Marcellus, Permian oil and the East Texas Horizontal play.

2012 International and Deepwater Highlights
In 2012, Anadarko continued a robust worldwide exploration and appraisal program, participating in more than 25 deepwater wells. As previously announced, the company made two new significant natural gas discoveries offshore Mozambique during 2012 at the Golfinho and Atum prospects. These discoveries more than doubled Anadarko's previous estimated recoverable resources in the operated Offshore Area 1 to a range of 35 trillion cubic feet (Tcf) to 65-plus Tcf. Anadarko also continued its active appraisal drilling and testing programs, the results of which verified the high deliverability of both the Prosperidade and Golfinho/Atum complexes.

The company continued to advance the Mozambique liquefied natural gas (LNG) development toward first sales in 2018. In December, Anadarko reached Heads of Agreement with Eni, establishing foundational principles for the coordinated development of common natural gas reservoirs in Offshore Areas 1 and 4. Anadarko also awarded competitive Front-End Engineering and Design contracts for both the offshore installation and an initial, four-train onshore LNG park.

In West Africa, the company achieved significant exploration and appraisal success in discovering and delineating oil opportunities offshore Ghana and Côte d'Ivoire. In the Deepwater Tano Block offshore Ghana, Anadarko and its partners continued to advance the TEN (Tweneboa, Enyenra and Ntomme) complex by drilling three successful exploration/appraisal wells and submitting a Plan of Development to the Ghanaian government. The partnership also increased production at Jubilee to more than 110,000 barrels of oil per day, through the successful application of acid jobs and the startup of the initial phase-1A drilling program. The company's Paon discovery offshore Côte d'Ivoire confirmed the extension of the upper Cretaceous fan play and could potentially anchor a new oil development.

The company achieved first oil in March at its Caesar/Tonga mega project in the deepwater Gulf of Mexico and, during the fourth quarter, drilled another successful development well in the field. Anadarko advanced its Heidelberg discovery by ordering long-lead items and expects to seek project sanction by mid-year 2013. In addition, the company drilled its first development well at its sanctioned Lucius development, encountering 910 net feet of oil pay.

In 2013, Anadarko is continuing its active international and deepwater drilling program with exploration, appraisal, completions and development activities under way in the Gulf of Mexico. Internationally, Anadarko recently spud the first of two wells offshore Kenya, and expects to achieve initial oil production during the first quarter of 2013 from the first of three facilities in the El Merk complex in Algeria.

2012 Financial Highlights

  • Fully repaid $2.5 billion of borrowings under the company's revolving credit facility
  • Accelerated value by monetizing more than $1 billion in assets
  • Resolved the Algerian TPE dispute, providing a $4.4 billion net-present-value benefit
  • Successfully completed the Western Gas Equity Partners, LP (NYSE: WGP) initial public offering

"Anadarko further strengthened its balance sheet during 2012 by repaying all borrowings under its revolving credit facility and improving the company's net-debt-to-adjusted-capitalization(2) ratio from 41 percent at year-end 2011 to 34 percent at year-end 2012," Walker said. "We ended the year with $2.5 billion of cash on hand, bolstered by the collection of $1 billion associated with the Algeria exceptional profits tax resolution. During the year, we actively managed our portfolio through various monetizations that accelerated significant value for our shareholders. Among these monetizations were the previously announced Lucius and Salt Creek carried-interest agreements, as well as a $114 million transaction for approximately 59,000 acres south of our core Wattenberg activity, while retaining a 20-percent royalty interest on our fee mineral acreage. We were also very pleased with the initial public offering of WGP, which established a current market value of more than $6.5 billion for Anadarko's remaining 91-percent interest. Value acceleration will continue to be a priority for us in 2013, as demonstrated by the recently announced divestiture of our equity interest in the OCI soda ash business for $310 million and additional potential consideration."

Anadarko generated $852 million of adjusted free cash flow(2) during the year, which includes the impact of $529 million of capital expenditures incurred by Western Gas Partners, LP (NYSE: WES).

Anadarko plans to communicate its 2013 capital program and performance expectations during an Investor Conference Call, scheduled for Feb. 20, 2013.

Operations Report
For more details on Anadarko's 2012 operations, please refer to the operations report on fourth-quarter 2012 activity. The report is available at www.anadarko.com on the Investor Relations page.

Conference Call Tomorrow at 9 a.m. CST, 10 a.m. EST
Anadarko will host a conference call on Tuesday, February 5, at 9 a.m. Central Standard Time (10 a.m. Eastern Standard Time) to discuss fourth-quarter and full-year results. The dial-in number is 855.812.0464 in the United States or 970.300.2271 for international calls. The confirmation number is 69777651. For complete instructions on how to participate in the conference call, or to listen to the live audio webcast and slide presentation, please visit www.anadarko.com. A replay of the call will also be available on the website for approximately 30 days following the call.

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

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

(2) See the accompanying tables for reconciliations of GAAP to non-GAAP financial measures and a statement indicating why management believes the non-GAAP 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 2012, the company had approximately 2.56 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 Anadarko's ability to finalize year-end reserves, drill, develop and commercially operate the drilling prospects identified in this news release, continue to coordinate development activities with Eni in Mozambique, successfully plan, secure necessary government approvals, finance, build and operate an LNG project and WGP's market performance and the impact on Anadarko's ownership interest. See "Risk Factors" in the company's 2011 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.

Cautionary Note to U.S. Investors: 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 estimated resource potential," "estimated recoverable 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, 2011, 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, 2012
                                           --------------------------------
                                             Before     After     Per Share
millions except per-share amounts             Tax        Tax      (diluted)
                                           ---------  ---------  ----------
Unrealized gains (losses) on derivatives,
 net*                                      $     162  $     102  $     0.20
Realized losses on 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, before-tax unrealized gains (losses) on derivatives, net includes $3 million related to commodity derivatives, $157 million related to other derivatives, and $2 million related to gathering, processing, and marketing sales.


                                            Quarter Ended December 31, 2011
                                           --------------------------------
                                             Before     After     Per Share
millions except per-share amounts             Tax        Tax      (diluted)
                                           ---------  ---------  ----------
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 (FIN 48)        --        (11)      (0.02)
Deepwater Horizon settlement and related
 costs                                           147         94        0.19
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.

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                               2012      2011      2012      2011
                                     --------  --------  --------  --------
Net cash provided by operating
 activities                          $  2,220  $ (2,087) $  8,339  $  2,505
Adjustments
  Deepwater Horizon settlement and
   related costs                            4     3,891        (6)    3,948
  Algeria exceptional profits tax
   settlement                            (392)       --    (1,006)       --
  Change in accounts receivable          (111)       54      (520)      993
  Change in accounts payable and
   accrued expenses                       (10)      (34)      476      (284)
  Change in other items--net              (99)      (72)     (126)       16
                                     --------  --------  --------  --------
Discretionary cash flow from
 operations                          $  1,612  $  1,752  $  7,157  $  7,178
                                     ========  ========  ========  ========


                       Anadarko Petroleum Corporation
                 Reconciliation of GAAP to Non-GAAP Measures

                                         Quarter Ended        Year Ended
                                         December 31,        December 31,
                                      ------------------  ------------------
millions                                2012      2011      2012      2011
                                      --------  --------  --------  --------
Discretionary cash flow from
 operations                           $  1,612  $  1,752  $  7,157  $  7,178
Less: Capital expenditures*              1,933     1,942     7,311     6,553
                                      --------  --------  --------  --------
Free cash flow                        $   (321) $   (190) $   (154) $    625
                                      ========  ========  ========  ========
Collection of Algeria exceptional
 profits tax receivable                    392        --     1,006        --
                                      --------  --------  --------  --------
Adjusted free cash flow               $     71  $   (190) $    852  $    625
                                      ========  ========  ========  ========

* Includes Western Gas Partners, LP (WES) capital expenditures of $169 million and $56 million for the three months ended December 31, 2012 and 2011, respectively, and $529 million and $439 million for the year ended December 31, 2012 and 2011, respectively.

                                      Quarter Ended        Quarter Ended
                                    December 31, 2012    December 31, 2011
                                   -------------------  -------------------
                                    After    Per Share   After    Per Share
millions except per-share amounts    Tax     (diluted)    Tax     (diluted)
                                   -------  ----------  -------  ----------
Net income (loss) attributable to
 common stockholders               $   203  $     0.40  $  (358) $    (0.72)
Less: Certain items affecting
 comparability                        (254)      (0.51)    (781)      (1.57)
                                   -------  ----------  -------  ----------
Adjusted net income (loss)         $   457  $     0.91  $   423  $     0.85
                                   =======  ==========  =======  ==========

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                                                           2012
                                                              -------------
Costs incurred                                                $       6,367
Asset retirement obligation liability incurred                          (98)
Cash expenditures for asset retirement obligations                       89
                                                              -------------
Oil and natural gas exploration and development costs         $       6,358
                                                              =============

                                                               December 31,
millions                                                           2012
                                                              -------------
Total debt                                                    $      13,269
Less: Cash and cash equivalents                                       2,471
                                                              -------------
Net debt                                                      $      10,798
                                                              =============

Net debt                                                      $      10,798
Stockholders' equity                                                 20,629
                                                              -------------
Adjusted capitalization                                       $      31,427
                                                              =============

                                                              -------------
Net debt to adjusted capitalization ratio                                34%
                                                              =============

                       Anadarko Petroleum Corporation
                                (Unaudited)

                                        Quarter Ended        Year Ended
Summary Financial Information           December 31,        December 31,
                                     ------------------  ------------------
millions except per-share amounts      2012      2011      2012      2011
                                     --------  --------  --------  --------
Consolidated Statements of Income
                                     --------  --------  --------  --------
Revenues and Other
                                     --------  --------  --------  --------
Natural-gas sales                    $    762  $    736  $  2,444  $  3,300
Oil and condensate sales                2,099     2,124     8,728     8,072
Natural-gas liquids sales                 311       382     1,224     1,462
Gathering, processing, and marketing
 sales                                    240       298       911     1,048
Gains (losses) on divestitures and
 other, net                                (2)      299       104        85
                                     --------  --------  --------  --------
Total                                   3,410     3,839    13,411    13,967
                                     ========  ========  ========  ========
Costs and Expenses
                                     --------  --------  --------  --------
Oil and gas operating                     244       263       976       993
Oil and gas transportation and other      245       258       955       891
Exploration                               284       354     1,946     1,076
Gathering, processing, and marketing      211       201       763       791
General and administrative                430       276     1,246     1,060
Depreciation, depletion, and
 amortization                           1,028       928     3,964     3,830
Other taxes                               254       360     1,224     1,492
Impairments                               223     1,487       389     1,774
Algeria exceptional profits tax
 settlement                                --        --    (1,797)       --
Deepwater Horizon settlement and
 related costs                              3      (147)       18     3,930
                                     --------  --------  --------  --------
Total                                   2,922     3,980     9,684    15,837
                                     ========  ========  ========  ========
Operating Income (Loss)                   488      (141)    3,727    (1,870)
                                     ========  ========  ========  ========
Other (Income) Expense
                                     --------  --------  --------  --------
Interest expense                          181       197       742       839
(Gains) losses on derivatives, net       (249)     (161)     (326)      461
Other (income) expense, net                10       256      (254)      254
                                     --------  --------  --------  --------
Total                                     (58)      292       162     1,554
                                     ========  ========  ========  ========
Income (Loss) Before Income Taxes         546      (433)    3,565    (3,424)
                                     ========  ========  ========  ========
Income Tax Expense (Benefit)              356       (94)    1,120      (856)
                                     ========  ========  ========  ========
Net Income (Loss)                    $    190  $   (339) $  2,445  $ (2,568)
                                     ========  ========  ========  ========
Net Income (Loss) Attributable to
 Noncontrolling Interests                 (13)       19        54        81
                                     ========  ========  ========  ========
Net Income (Loss) Attributable to
 Common Stockholders                 $    203  $   (358) $  2,391  $ (2,649)
                                     ========  ========  ========  ========
Per Common Share:
                                     ========  ========  ========  ========
Net income (loss) attributable to
 common stockholders--basic          $   0.40  $  (0.72) $   4.76  $  (5.32)
Net income (loss) attributable to
 common stockholders--diluted        $   0.40  $  (0.72) $   4.74  $  (5.32)
                                     ========  ========  ========  ========
Average Number of Common Shares
 Outstanding--Basic                       500       498       500       498
                                     ========  ========  ========  ========
Average Number of Common Shares
 Outstanding--Diluted                     502       498       502       498
                                     ========  ========  ========  ========

                                     ========  ========  ========  ========
Exploration Expense
                                     --------  --------  --------  --------
Dry hole expense                     $     94  $     79  $    440  $    154
Impairments of unproved properties         61       123     1,104       471
Geological and geophysical expense         62        94       151       246
Exploration overhead and other             67        58       251       205
                                     --------  --------  --------  --------
Total                                $    284  $    354  $  1,946  $  1,076
                                     ========  ========  ========  ========


                       Anadarko Petroleum Corporation
                                (Unaudited)

                                        Quarter Ended        Year Ended
Summary Financial Information           December 31,        December 31,
                                     ------------------  ------------------
millions                               2012      2011      2012      2011
                                     --------  --------  --------  --------
Cash Flows from Operating Activities
                                     --------  --------  --------  --------
Net income (loss)                    $    190  $   (339) $  2,445  $ (2,568)
Depreciation, depletion, and
 amortization                           1,028       928     3,964     3,830
Deferred income taxes                      69      (266)      164    (1,461)
Dry hole expense and impairments of
 unproved properties                      155       202     1,544       625
Impairments                               223     1,487       389     1,774
(Gains) losses on divestitures, net        48      (265)       71       (22)
Unrealized (gains) losses on
 derivatives, net                        (162)     (151)      377       616
Deepwater Horizon settlement and
 related costs                              3      (147)       18     3,930
Algeria exceptional profits tax
 settlement                                --        --    (1,797)       --
Tronox-related contingent loss             --       250      (250)      250
Other                                      58        53       232       204
                                     --------  --------  --------  --------
Discretionary Cash Flow from
 Operations                             1,612     1,752     7,157     7,178
Deepwater Horizon settlement and
 related costs                             (4)   (3,891)        6    (3,948)
Algeria exceptional profits tax
 settlement                               392        --     1,006        --
(Increase) decrease in accounts
 receivable                               111       (54)      520      (993)
Increase (decrease) in accounts
 payable and accrued expenses              10        34      (476)      284
Other items--net                           99        72       126       (16)
                                     --------  --------  --------  --------
Net Cash Provided by Operating
 Activities                          $  2,220  $ (2,087) $  8,339  $  2,505
                                     ========  ========  ========  ========

                                     ========  ========  ========  ========
Capital Expenditures                 $  1,933  $  1,942  $  7,311  $  6,553
                                     --------  --------  --------  --------

                                                 December 31,  December 31,
millions                                             2012          2011
                                                 ------------  ------------
Condensed Balance Sheets
                                                 ------------  ------------
Cash and cash equivalents                        $      2,471  $      2,697
Algeria exceptional profits tax settlement                730            --
Other current assets                                    3,594         4,234
Net properties and equipment                           38,398        37,501
Other assets                                            1,716         1,516
Goodwill and other intangible assets                    5,680         5,831
                                                 ------------  ------------
Total Assets                                     $     52,589  $     51,779
                                                 ------------  ------------
Current portion of long-term debt                $         --  $        170
Other current liabilities                               3,994         4,729
Long-term debt                                         13,269        15,060
Other long-term liabilities                            13,444        12,837
Stockholders' equity                                   20,629        18,105
Noncontrolling interests                                1,253           878
                                                 ------------  ------------
Total Liabilities and Equity                     $     52,589  $     51,779
                                                 ============  ============
Capitalization
                                                 ------------  ------------
Total debt                                       $     13,269  $     15,230
Stockholders' equity                                   20,629        18,105
                                                 ------------  ------------
Total                                            $     33,898  $     33,335
                                                 ============  ============
Capitalization Ratios
                                                 ------------  ------------
Total debt                                                 39%           46%
Stockholders' equity                                       61%           54%
                                                 ============  ============


                       Anadarko Petroleum Corporation
                                 (Unaudited)

Sales Volumes and Prices

                         Average Daily Volumes          Sales Volumes
                      -------------------------- --------------------------
                               Crude Oil                  Crude Oil
                      Natural      &             Natural      &
                        Gas   Condensate   NGLs    Gas   Condensate   NGLs
                       MMcf/d   MBbls/d  MBbls/d   Bcf     MMBbls    MMBbls
                      ------- ---------- ------- ------- ---------- -------
Quarter Ended
 December 31, 2012
United States           2,521        159      87     232         15       8
Algeria                    --         47      --      --          4      --
Other International        --         28      --      --          3      --
                      ------- ---------- ------- ------- ---------- -------
Total                   2,521        234      87     232         22       8
                      ------- ---------- ------- ------- ---------- -------

Quarter Ended
 December 31, 2011
United States           2,328        129      75     214         12       7
Algeria                    --         60      --      --          6      --
Other International        --         31      --      --          2      --
                      ------- ---------- ------- ------- ---------- -------
Total                   2,328        220      75     214         20       7
                      ------- ---------- ------- ------- ---------- -------

Year Ended December
 31, 2012
United States           2,495        149      83     913         55      30
Algeria                    --         54      --      --         20      --
Other International        --         30      --      --         11      --
                      ------- ---------- ------- ------- ---------- -------
Total                   2,495        233      83     913         86      30
                      ------- ---------- ------- ------- ---------- -------

Year Ended December
 31, 2011
United States           2,334        132      74     852         48      27
Algeria                    --         57      --      --         21      --
Other International        --         28      --      --         10      --
                      ------- ---------- ------- ------- ---------- -------
Total                   2,334        217      74     852         79      27
                      ------- ---------- ------- ------- ---------- -------

                      ======= ========== ======= ======= ========== =======


                          Average Sales Price
                     ----------------------------
                               Crude Oil
                      Natural      &
                        Gas   Condensate   NGLs
                      Per Mcf   Per Bbl   Per Bbl
                     -------- ---------- --------
Quarter Ended
 December 31, 2012
United States        $   3.28 $    92.50 $  38.97
Algeria                    --     109.68       --
Other International        --     107.56       --
                     -------- ---------- --------
Total                $   3.28 $    97.74 $  38.97
                     -------- ---------- --------

Quarter Ended
 December 31, 2011
United States        $   3.43 $   100.32 $  55.29
Algeria                    --     111.29       --
Other International        --     110.98       --
                     -------- ---------- --------
Total                $   3.43 $   104.82 $  55.29
                     -------- ---------- --------

Year Ended December
 31, 2012
United States        $   2.68 $    97.46 $  40.44
Algeria                    --     110.29       --
Other International        --     112.61       --
                     -------- ---------- --------
Total                $   2.68 $   102.35 $  40.44
                     -------- ---------- --------

Year Ended December
 31, 2011
United States        $   3.87 $    97.70 $  53.95
Algeria                    --     108.74       --
Other International        --     110.12       --
                     -------- ---------- --------
Total                $   3.87 $   102.24 $  53.95
                     -------- ---------- --------

                     ======== ========== ========

                                       Average
                                        Daily        Sales
                                       Volumes      Volumes
                                       MBOE/d        MMBOE
                                    ------------ ------------

Quarter Ended December 31, 2012              741           68
Quarter Ended December 31, 2011              683           63

Year Ended December 31, 2012                 732          268
Year Ended December 31, 2011                 680          248



Sales Revenue and Commodity Derivatives

                            Sales
                 --------------------------

                           Crude Oil
                  Natural      &
millions            Gas   Condensate  NGLs
                 -------- ---------- ------
Quarter Ended
 December 31,
 2012
United States    $    762 $    1,351 $  311
Algeria                --        469     --
Other
 International         --        279     --
                 -------- ---------- ------
Total            $    762 $    2,099 $  311
                 -------- ---------- ------

Quarter Ended
 December 31,
 2011
United States    $    736 $    1,190 $  382
Algeria                --        614     --
Other
 International         --        320     --
                 -------- ---------- ------
Total            $    736 $    2,124 $  382
                 -------- ---------- ------

Year Ended
 December 31,
 2012
United States    $  2,444 $    5,332 $1,224
Algeria                --      2,182     --
Other
 International         --      1,214     --
                 -------- ---------- ------
Total            $  2,444 $    8,728 $1,224
                 -------- ---------- ------

Year Ended
 December 31,
 2011
United States    $  3,300 $    4,667 $1,462
Algeria                --      2,258     --
Other
 International         --      1,147     --
                 -------- ---------- ------
Total            $  3,300 $    8,072 $1,462
                 -------- ---------- ------


                             Commodity Derivatives Gain (Loss)
                -----------------------------------------------------------
                                        Crude Oil &
                    Natural Gas          Condensate             NGLs
                ------------------- ------------------- -------------------
millions        Realized Unrealized Realized Unrealized Realized Unrealized
                -------- ---------- -------- ---------- -------- ----------
Quarter Ended
 December 31,
 2012
United States   $    114 $       20 $     34 $      (13)$      4 $       (4)
Algeria               --         --        1         --       --         --
Other
 International        --         --       --         --       --         --
                -------- ---------- -------- ---------- -------- ----------
Total           $    114 $       20 $     35 $      (13)$      4 $       (4)
                -------- ---------- -------- ---------- -------- ----------

Quarter Ended
 December 31,
 2011
United States   $     73 $      246 $     (2)$      (57)$     -- $      (15)
Algeria               --         --       --         --       --         --
Other
 International        --         --       --         --       --         --
                -------- ---------- -------- ---------- -------- ----------
Total           $     73 $      246 $     (2)$      (57)$     -- $      (15)
                -------- ---------- -------- ---------- -------- ----------

Year Ended
 December 31,
 2012
United States   $    678 $     (444)$     70 $       64 $     10 $       14
Algeria               --         --       (5)        --       --         --
Other
 International        --         --       --         --       --         --
                -------- ---------- -------- ---------- -------- ----------
Total           $    678 $     (444)$     65 $       64 $     10 $       14
                -------- ---------- -------- ---------- -------- ----------

Year Ended
 December 31,
 2011
United States   $    288 $      192 $    (58)$      131 $     (1)$        4
Algeria               --         --       (3)         9       --         --
Other
 International        --         --       --         --       --         --
                -------- ---------- -------- ---------- -------- ----------
Total           $    288 $      192 $    (61)$      140 $     (1)$        4
                -------- ---------- -------- ---------- -------- ----------


                       Anadarko Petroleum Corporation
               Estimated Year-End Proved Reserves 2010 - 2012

MMBOE                                            2012      2011      2010
                                               --------  --------  --------
Proved Reserves
Beginning of year                                 2,539     2,422     2,304
Reserves additions and revisions
  Discoveries and extensions                         82       174        83
  Infill-drilling additions                         383       203       312
                                               --------  --------  --------
    Drilling-related reserves additions and
     revisions                                      465       377       395
  Other non-price-related revisions                 (31)        7       (66)
                                               --------  --------  --------
    Net organic reserves additions                  434       384       329
  Acquisition of proved reserves in place             4        --         1
  Price-related revisions                           (68)        8        29
                                               --------  --------  --------
Total reserves additions and revisions              370       392       359
Sales in place                                      (81)      (29)       (6)
Production                                         (268)     (246)     (235)
                                               --------  --------  --------
End of year                                       2,560     2,539     2,422
                                               --------  --------  --------
Proved Developed Reserves
Beginning of year                                 1,811     1,673     1,624
                                               --------  --------  --------
End of year                                       1,883     1,811     1,673
                                               --------  --------  --------


                       Anadarko Petroleum Corporation
           Commodity Hedge Positions (Excluding Natural Gas Basis)
                           As of February 4, 2013

                                                 Weighted Average Price per
                                                           MMBtu
                                               -----------------------------
                                    Volume
                                  (thousand                 Floor    Ceiling
                                   MMBtu/d)    Floor Sold Purchased   Sold
                                  ---------    ---------- --------- --------
Natural Gas
  Two-Way Collars
  2013 (April - October)                600           n/a $    3.18 $   4.00

  Fixed Price - Financial
  2013                                1,185    $     4.00

                                                 Weighted Average Price per
                                                           barrel
                                               -----------------------------
                                    Volume                  Floor    Ceiling
                                  (MBbls/d)    Floor Sold Purchased   Sold
                                  ---------    ---------- --------- --------
Crude Oil
  Three-Way Collars
  2013
    Brent                                26    $    85.00 $  105.00 $ 125.15

  Fixed Price - Financial
  2013
    Brent                                61    $   108.72
    WTI                                  47    $    94.43
                                  ---------
                                        108    $   102.50


                          Interest Rate Derivatives
----------------------------------------------------------------------------
                           As of February 4, 2013

----------------------------------------------------------------------------
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
----------------------------------------------------------------------------

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