Anadarko Announces 2010 Fourth-Quarter and Full-Year Results
31.01.2011 | Marketwired
HOUSTON, TX -- (Marketwire) -- 01/31/11 -- Anadarko Petroleum Corporation (NYSE: APC) today
announced that net income from continuing operations attributable to common
stockholders totaled $111 million, or $0.22 per share (diluted), for the
quarter ended Dec. 31, 2010. These results include certain items affecting
comparability that are typically excluded by the investment community in
published estimates. In total, these items decreased net income by
approximately $34 million, or $0.07 per share (diluted), on an after-tax
basis.(1) Cash flow from continuing operations in the fourth quarter of 2010
was $1.315 billion, and discretionary cash flow totaled $1.298 billion.(2)
For the year ended Dec. 31, 2010, Anadarko reported net income from
continuing operations attributable to common stockholders of $761 million,
or $1.52 per share (diluted). Full-year 2010 cash flow from continuing
operations was $5.247 billion, and discretionary cash flow totaled $5.380
billion.(2)
2010 Highlights
-- Increased sales volumes by 7 percent over 2009, including a 13-percent
liquids increase
-- Added 359 million barrels of oil equivalent (BOE) of proved reserves,
which equates to replacing 153 percent of production
-- Continued offshore exploration success with an approximate 60-percent
discovery rate
-- Achieved first oil from the Jubilee mega project in a record 3.5 years
following discovery
'2010 was a year of very strong performance with record sales volumes,
above-target reserve growth and industry-leading exploration results --
each of which surpassed the guidance we provided in March -- while spending
approximately $200 million less capital than originally projected,' said
Anadarko Chairman and CEO Jim Hackett. 'Additionally, we strengthened the
balance sheet by completing several transactions that enhanced liquidity
and significantly extended near-term debt maturities, and had approximately
$3.7 billion of cash on hand at year end. We are positioned to deliver upon
the strategic plan we laid out last March to achieve a five-year 7- to
9-percent production CAGR (compounded annual growth rate) and surpass 3
billion BOE of proved reserves by year-end 2014.'
Full-year 2010 sales volumes of natural gas, crude oil and natural gas
liquids (NGLs) totaled a record 235 million BOE, or 643,000 BOE per day,
which was 6.5 million BOE higher than the midpoint of the original
sales-volumes guidance provided at the March 2010 Investor Conference. This
represents an approximate 7-percent increase over full-year 2009 sales
volumes of 220 million BOE. Fourth-quarter 2010 sales volumes of natural
gas, crude oil and NGLs totaled 56 million BOE, or 608,000 BOE per day.
Anadarko added 359 million BOE of proved reserves in 2010, including 29
million BOE from price revisions, and incurred costs of approximately
$5.036 billion associated with its oil and natural gas exploration and
development activities.(2) The company estimates its proved reserves at
year-end 2010 totaled 2.42 billion BOE, with approximately 69 percent of
its reserves in the proved developed category and approximately 31 percent
categorized as proved undeveloped. At year-end 2010, Anadarko's product mix
of proved reserves was made up of approximately 56 percent natural gas and
44 percent liquids.
2010 Worldwide Exploration and Development Highlights
Anadarko's record production of 235 million BOE was primarily driven by an
11-percent increase in sales volumes from the Rocky Mountain region, growth
in the company's liquids-rich plays and accelerated activity in the
Marcellus shale. With existing infrastructure and service agreements in
place, Anadarko has established itself as the largest producer in the
Eagleford Shale with current gross production of approximately 27,000 BOE
per day. The midstream expansion in the Marcellus Shale during the fourth
quarter of 2010 enabled the company to nearly double its gross daily sales
volumes from the end of the third quarter to approximately 330 million
cubic feet per day (MMcf/d) at the end of the year, while being carried on
its capital costs through the joint-venture agreement announced earlier in
the year.
'The success of Anadarko's worldwide exploration program, coupled with the
results of our evaluation and development activity in the U.S. onshore, has
continued to add differentiating value for shareholders,' continued
Hackett. 'Our offshore exploration drilling program achieved a success rate
of approximately 60 percent, while also continuing to safely advance
existing deepwater discoveries toward potential future development, with a
100-percent success rate on a total of nine appraisal wells in 2010. In
addition to these industry-leading results, the further evaluation and
development of our Marcellus and Eagleford shale programs -- where we
amassed large fairway acreage positions at attractive costs in the early
stages of exploration -- enabled us to establish a net risked resource
potential of 1.5 billion BOE in these two major growth areas.'
In Mozambique, Anadarko announced three world-class natural gas discoveries
at Windjammer, Barquentine and Lagosta -- each of which was ranked among
the top five discoveries offshore Africa in 2010, according to IHS Energy.
As a result of the success, Anadarko and its partners have begun evaluating
various commercialization options and expect to keep at least one rig in
the area to advance an appraisal program and continue exploration
activities. In West Africa, the company announced its second discovery
offshore Sierra Leone at the Mercury prospect. Anadarko, along with
partners, is advancing plans to drill three to five exploration and
appraisal wells across the company's 5 million gross acres offshore Sierra
Leone, Liberia and Cote d'Ivoire in 2011. Offshore Ghana, Anadarko and its
partners achieved first oil from the world-class Jubilee field in a record
3.5 years following discovery. Also offshore Ghana, Anadarko and its
partners continued a successful appraisal program in the adjacent Tweneboa
and Enyenra (formerly Owo) fields and expect to submit a development plan
to the Ghanaian government in 2011.
Anadarko will provide more information regarding its 2011 capital program
and longer-term outlook on Feb. 24, 2011, when it holds an extended
conference call and portfolio discussion. The company will provide
additional details and dial-in instructions for the call later this month.
Conference Call Tomorrow at 9 a.m. CST, 10 a.m. EST
Anadarko will host a conference call on Tuesday, Feb. 1, at 9 a.m. Central
Standard Time (10 a.m. Eastern Standard Time) to discuss fourth-quarter and
year-end results. The dial-in number is 888.679.8034 in the United States
or 617.213.4847 for international calls. The confirmation number is
98549147. For complete instructions on how to participate in the conference
call, or to listen to the live audio webcast and slide presentation, please
visit www.anadarko.com. A replay of the call will also be available on the
Web site for approximately 30 days following the conference call.
Anadarko Operations Report
For more details on Anadarko's operations, please refer to the
comprehensive report on fourth-quarter 2010 activity. The report will be
available at www.anadarko.com on the Investor Relations page.
Financial Data
Seven pages of summary financial data follow, including current hedge
positions, proved reserves and costs incurred.
Anadarko Petroleum Corporation's mission is to deliver a competitive and
sustainable rate of return to shareholders by exploring for, acquiring and
developing oil and natural gas resources vital to the world's health and
welfare. As of year-end 2010, the company had approximately 2.42 billion
barrels-equivalent of proved reserves, making it one of the world's largest
independent exploration and production companies. For more information
about Anadarko, please visit www.anadarko.com.
(1) See the accompanying table for details of certain items affecting
comparability.
(2) See the accompanying table for a reconciliation of GAAP to non-GAAP
financial measures and a statement indicating why management believes the
non-GAAP measures provide useful information for investors.
This news release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Anadarko believes that its expectations are based on
reasonable assumptions. No assurance, however, can be given that such
expectations will prove to have been correct. A number of factors could
cause actual results to differ materially from the projections, anticipated
results or other expectations expressed in this news release, including
Anadarko's ability to finalize year-end reserves and complete and
commercially operate the drilling prospects identified in this news
release. See 'Risk Factors' in the company's 2009 Annual Report on Form
10-K, Quarterly Reports on Form 10-Q and other public filings and press
releases. Anadarko undertakes no obligation to publicly update or revise
any forward-looking statements.
Cautionary Note to U.S. Investors: Effective Jan. 1, 2010, the United
States Securities and Exchange Commission ('SEC') permits oil and gas
companies, in their filings with the SEC, to disclose only proved, probable
and possible reserves that meet the SEC's definitions for such terms.
Anadarko uses certain terms in this news release, such as 'net risked
resource potential,' and similar terms that the SEC's guidelines strictly
prohibit Anadarko from including in filings with the SEC. U.S. investors
are urged to consider closely the disclosure in Anadarko's Form
10-K for the year ended Dec. 31, 2009, File No. 001-08968, available from
Anadarko at www.anadarko.com or by writing Anadarko at: Anadarko Petroleum
Corporation, 1201 Lake Robbins Drive, The Woodlands, Texas 77380, Attn:
Investor Relations. This form may also be obtained by contacting the SEC at
1-800-SEC-0330.
Anadarko Petroleum Corporation
Certain Items Affecting Comparability
Quarter Ended December 31, 2010
-------------------------------
Before After Per Share
millions except per-share amounts Tax Tax (diluted)
--------- --------- ---------
Unrealized gains (losses) on
derivatives, net* $ 48 $ 30 $ 0.06
Gains (losses) on divestitures, net 17 10 0.02
Gulf of Mexico accelerated depreciation,
depletion and amortization (19) (12) (0.02)
Deepwater royalty adjustments (52) (33) (0.07)
Impairments (69) (29) (0.06)
--------- --------- ---------
$ (75) $ (34) $ (0.07)
========= ========= =========
* For the quarter ended December 31, 2010, before-tax unrealized gains
(losses) on derivatives, net includes $(318) million related to commodity
derivatives, $371 million related to other derivatives, and $(5) million
related to gathering, processing and marketing sales.
Quarter Ended December 31, 2009
--------- --------- ---------
Before After Per Share
millions except per-share amounts Tax Tax (diluted)
--------- --------- ---------
Unrealized gains (losses) on
derivatives, net* $ 356 $ 226 $ 0.45
Impairments (36) (28) (0.05)
Change in uncertain tax positions (FIN48) - 10 0.02
--------- --------- ---------
$ 320 $ 208 $ 0.42
========= ========= =========
* For the quarter ended December 31, 2009, before-tax unrealized gains
(losses) on derivatives, net includes $82 million related to commodity
derivatives, $267 million related to other derivatives, and $7 million
related to gathering, processing and marketing sales.
Reconciliation of GAAP to Non-GAAP Measures
Below are reconciliations of cash provided by operating activities (GAAP)
to discretionary cash flow and free cash flow (non-GAAP), and net income
(loss) attributable to common stockholders (GAAP) to adjusted net income
(loss) (non-GAAP) as required under Regulation G of the Securities Exchange
Act of 1934. The company uses discretionary cash flow and free cash flow to
demonstrate the company's ability to internally fund capital expenditures
and to service or incur additional debt. It is useful in comparisons of oil
and gas exploration and production companies because it excludes
fluctuations in assets and liabilities. The company uses adjusted net
income (loss) to evaluate the company's operational trends and performance.
Quarter Ended Year Ended
December 31, December 31,
---------------- ----------------
millions 2010 2009 2010 2009
------- ------- ------- -------
Net cash provided by operating
activities $ 1,315 $ 1,100 $ 5,247 $ 3,926
Add back:
Change in accounts receivable 187 151 172 290
Change in accounts payable and
accrued expenses (134) (449) 157 (269)
Change in other items-net (70) 67 (196) 411
------- ------- ------- -------
Discretionary cash flow from operations $ 1,298 $ 869 $ 5,380 $ 4,358
======= ======= ======= =======
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
December 31, 2010
------------------
Quarter Year
millions Ended Ended
-------- --------
Discretionary cash flow from operations $ 1,298 $ 5,380
Less: Capital expenditures 1,277 5,169
-------- --------
Free cash flow $ 21 $ 211
======== ========
Quarter Ended Year Ended
December 31, 2010 December 31, 2009
------------------ ------------------
After Per Share After Per Share
millions except per-share amounts Tax (diluted) Tax (diluted)
-------- -------- -------- --------
Net income (loss) attributable to
common stockholders $ 111 $ 0.22 $ 229 $ 0.46
Less: Certain items affecting
comparability (34) (0.07) 208 0.42
-------- -------- -------- --------
Adjusted net income (loss) $ 145 $ 0.29 $ 21 $ 0.04
======== ======== ======== ========
Presented below are reconciliations of costs incurred (GAAP) to oil and gas
exploration and development costs (non-GAAP) and total debt (GAAP) to net
debt (non-GAAP). Management believes oil and gas exploration and
development costs is a more accurate reflection of the expenditures
incurred during the current year; excluding certain obligations to be paid
in future periods. Management uses net debt as a measure of the company's
outstanding debt obligations that would not be readily satisfied by its
cash and cash equivalents on hand.
Year Ended
December 31,
millions 2010
-----------
Costs incurred $ 5,086
Asset retirement obligation liability incurred (86)
Cash expenditures for asset retirement obligations 36
-----------
Oil and gas exploration and development costs $ 5,036
===========
December 31,
millions 2010
-----------
Total debt $ 13,013
Less: Cash and cash equivalents 3,680
-----------
Net debt $ 9,333
===========
Net debt $ 9,333
Stockholders' equity 20,684
-----------
Adjusted capitalization $ 30,017
===========
-----------
Net debt to adjusted capitalization ratio 31%
===========
Anadarko Petroleum Corporation
(Unaudited)
Quarter Ended Year Ended
Summary Financial Information December 31, December 31,
---------------- ----------------
millions except per-share amounts 2010 2009 2010 2009
------- ------- ------- -------
Consolidated Statements of Income
------- ------- ------- -------
Revenues and Other
------- ------- ------- -------
Gas sales $ 728 $ 776 $ 3,420 $ 2,924
Oil and condensate sales 1,454 1,254 5,592 4,022
Natural-gas liquids sales 261 171 997 536
Gathering, processing and marketing
sales 190 197 833 728
Gains (losses) on divestitures and
other, net 58 19 142 133
Reversal of accrual for DWRRA dispute - - - 657
------- ------- ------- -------
Total 2,691 2,417 10,984 9,000
======= ======= ======= =======
Costs and Expenses
------- ------- ------- -------
Oil and gas operating 240 199 830 859
Oil and gas transportation and other* 209 137 816 664
Exploration 325 294 974 1,107
Gathering, processing and marketing 149 148 615 617
General and administrative 294 325 982 983
Depreciation, depletion and
amortization 869 884 3,714 3,532
Other taxes 259 203 1,068 746
Impairments 69 36 216 115
------- ------- ------- -------
Total 2,414 2,226 9,215 8,623
======= ======= ======= =======
Operating Income (Loss) 277 191 1,769 377
======= ======= ======= =======
Other (Income) Expense
------- ------- ------- -------
Interest expense 213 198 855 702
(Gains) losses on commodity
derivatives, net 159 (95) (893) 408
(Gains) losses on other derivatives, net (371) (267) 285 (582)
Other (income) expense, net (13) (20) (119) (43)
------- ------- ------- -------
Total (12) (184) 128 485
======= ======= ======= =======
Income (Loss) Before Income Taxes 289 375 1,641 (108)
======= ======= ======= =======
Income Tax Expense (Benefit) 160 137 820 (5)
======= ======= ======= =======
Net Income (Loss) $ 129 $ 238 $ 821 $ (103)
======= ======= ======= =======
Net Income Attributable to
Noncontrolling Interests 18 9 60 32
======= ======= ======= =======
Net Income (Loss) Attributable to
Common Stockholders $ 111 $ 229 $ 761 $ (135)
======= ======= ======= =======
Per Common Share:
======= ======= ======= =======
Net income (loss) attributable to
common stockholders-basic $ 0.22 $ 0.46 $ 1.53 $ (0.28)
Net income (loss) attributable to
common stockholders-diluted $ 0.22 $ 0.46 $ 1.52 $ (0.28)
======= ======= ======= =======
Average Number of Common Shares
Outstanding-Basic 496 492 495 480
======= ======= ======= =======
Average Number of Common Shares
Outstanding-Diluted 498 494 497 480
======= ======= ======= =======
======= ======= ======= =======
Exploration Expense
------- ------- ------- -------
Dry hole expense $ 55 $ 44 $ 202 $ 304
Impairments of unproved properties 154 128 480 476
Geological and geophysical expense 52 47 103 105
Exploration overhead and other 64 75 189 222
------- ------- ------- -------
Total $ 325 $ 294 $ 974 $ 1,107
======= ======= ======= =======
* For the quarter ended December 31, 2010, oil and gas transportation and
other expenses include $18 million related to idle rig costs in the Gulf of
Mexico. For the year ended December 31, 2010, oil and gas transportation
and other expenses include $27 million related to idle rig costs and
$19 million of rig termination fees related to contracted deepwater
drilling rigs in the Gulf of Mexico.
Anadarko Petroleum Corporation
(Unaudited)
Quarter Ended Year Ended
Summary Financial Information December 31, December 31,
---------------- ----------------
millions 2010 2009 2010 2009
------- ------- ------- -------
Cash Flow from Operating Activities
------- ------- ------- -------
Net income (loss) $ 129 $ 238 $ 821 $ (103)
Depreciation, depletion and
amortization 869 884 3,714 3,532
Deferred income taxes 19 (157) (123) (165)
Dry hole expense and impairments of
unproved properties 209 172 682 780
Impairments 69 36 216 115
(Gains) losses on divestitures, net (17) - (29) (44)
Unrealized (gains) losses on
derivatives, net (48) (356) (114) 717
Reversal of accrual for DWRRA dispute - - - (657)
Other 68 52 213 183
------- ------- ------- -------
Discretionary Cash Flow from Operations 1,298 869 5,380 4,358
(Increase) decrease in accounts
receivable (187) (151) (172) (290)
Increase (decrease) in accounts payable
and accrued expenses 134 449 (157) 269
Other items-net 70 (67) 196 (411)
------- ------- ------- -------
Net Cash Provided By Operating
Activities $ 1,315 $ 1,100 $ 5,247 $ 3,926
======= ======= ======= =======
======= ======= ======= =======
Capital Expenditures $ 1,277 $ 1,688 $ 5,169 $ 4,558
------- ------- ------- -------
December 31, December 31,
2010 2009
----------- -----------
Condensed Balance Sheets
----------- -----------
Cash and cash equivalents $ 3,680 $ 3,531
Other current assets 2,995 2,552
Net properties and equipment 37,957 37,204
Other assets 1,616 1,514
Goodwill and other intangible assets 5,311 5,322
----------- -----------
Total Assets $ 51,559 $ 50,123
----------- -----------
Current debt $ 291 $ -
Other current liabilities 3,823 3,824
Long-term debt 12,722 11,149
Midstream subsidiary note payable to a
related party - 1,599
Other long-term liabilities 13,284 13,136
Stockholders' equity 20,684 19,928
Noncontrolling interests 755 487
----------- -----------
Total Liabilities and Equity $ 51,559 $ 50,123
=========== ===========
Capitalization
----------- -----------
Total debt $ 13,013 $ 12,748
Stockholders' equity 20,684 19,928
----------- -----------
Total $ 33,697 $ 32,676
=========== ===========
Capitalization Ratios
----------- -----------
Total debt 39% 39%
Stockholders' equity 61% 61%
=========== ===========
Note: After applying relevant accounting guidance to the facts, as they are
known to the Company today, the Company's liability accrual for the
Deepwater Horizon event continues to be zero. Please refer to the Company's
report on Form 10-Q filed with the SEC on November 1, 2010, for additional
disclosure and information surrounding the treatment of this item.
Anadarko Petroleum Corporation
(Unaudited)
Sales Volumes and Prices
Average Daily Volumes Sales Volumes
----------------------- -----------------------
Crude Crude
Oil & Oil &
Natural Conden- Natural Conden-
Gas sate NGLs Gas sate NGLs
MMcf/d MBbls/d MBbls/d Bcf MMBbls MMBbls
------- ------- ------- ------- ------- -------
Quarter Ended
December 31, 2010
United States 2,139 122 57 197 11 5
Algeria 51 5
Other International 21 2
------- ------- ------- ------- ------- -------
Total 2,139 194 57 197 18 5
------- ------- ------- ------- ------- -------
Quarter Ended
December 31, 2009
United States 2,076 133 47 191 12 4
Algeria 43 4
Other International 14 1
------- ------- ------- ------- ------- -------
Total 2,076 190 47 191 17 4
------- ------- ------- ------- ------- -------
Year Ended
December 31, 2010
United States 2,272 130 63 829 48 23
Algeria 55 20
Other International 16 6
------- ------- ------- ------- ------- -------
Total 2,272 201 63 829 74 23
------- ------- ------- ------- ------- -------
Year Ended
December 31, 2009
United States 2,217 120 47 809 44 17
Algeria 52 19
Other International 15 5
------- ------- ------- ------- ------- -------
Total 2,217 187 47 809 68 17
------- ------- ------- ------- ------- -------
Sales Volumes and Prices
Average Sales Price
-----------------------
Crude
Oil &
Natural Conden-
Gas sate NGLs
Per Mcf Per Bbl Per Bbl
------- ------- -------
Quarter Ended
December 31, 2010
United States $ 3.70 $ 78.55 $ 49.31
Algeria 88.51
Other International 82.79
------- ------- -------
Total $ 3.70 $ 81.64 $ 49.31
------- ------- -------
Quarter Ended
December 30, 2009
United States $ 4.06 $ 71.06 $ 39.91
Algeria 72.69
Other International 72.76
------- ------- -------
Total $ 4.06 $ 71.55 $ 39.91
------- ------- -------
Year to Date
December 30, 2010
United States $ 4.12 $ 74.96 $ 43.07
Algeria 79.00
Other International 76.89
------- ------- -------
Total $ 4.12 $ 76.22 $ 43.07
------- ------- -------
Year to Date
December 30, 2009
United States $ 3.61 $ 58.56 $ 31.42
Algeria 59.51
Other International 57.22
------- ------- -------
Total $ 3.61 $ 58.72 $ 31.42
------- ------- -------
Average Daily Sales Volumes
Volumes MBOE/d MMBOE
-------------- --------------
Quarter Ended
December 31, 2010 608 56
Quarter Ended
December 31, 2009 583 53
Year Ended
December 31, 2010 643 235
Year Ended
December 31, 2009 604 220
Sales Revenue and Commodity Derivatives
Commodity Derivatives
Sales Gain (Loss)
----------------------- ------------------------------
Crude Oil &
Crude Natural Gas Condensate
Oil & --------------- --------------
Natural Conden- Realiz- Unrea- Reali- Unrea-
millions Gas sate NGLs ed lized zed lized
------- ------- ------- ------- ------ ------ ------
Quarter Ended
December 31, 2010
United States $ 728 $ 879 $ 261 $ 176 $ (169) $ (19) $ (140)
Algeria 418 2 (9)
Other International 157
------- ------- ------- ------- ------ ------ ------
Total $ 728 $ 1,454 $ 261 $ 176 $ (169) $ (17) $ (149)
------- ------- ------- ------- ------ ------ ------
Quarter Ended
December 31, 2009
United States $ 776 $ 874 $ 171 $ 11 $ 190 $ 1 $ (101)
Algeria 286 1 (7)
Other International 94
------- ------- ------- ------- ------ ------ ------
Total $ 776 $ 1,254 $ 171 $ 11 $ 190 $ 2 $ (108)
------- ------- ------- ------- ------ ------ ------
Year Ended
December 31, 2010
United States $ 3,420 $ 3,556 $ 997 $ 513 $ 353 $ (23) $ 37
Algeria 1,582 8 5
Other International 454
------- ------- ------- ------- ------ ------ ------
Total $ 3,420 $ 5,592 $ 997 $ 513 $ 353 $ (15) $ 42
------- ------- ------- ------- ------ ------ ------
Year Ended
December 31, 2009
United States $ 2,924 $ 2,585 $ 536 $ 277 $ (444) $ 34 $ (223)
Algeria 1,133 16 (68)
Other International 304
------- ------- ------- ------- ------ ------ ------
Total $ 2,924 $ 4,022 $ 536 $ 277 $ (444) $ 50 $ (291)
------- ------- ------- ------- ------ ------ ------
Anadarko Petroleum Corporation
Estimated 2010 Year-end Proved Reserves
MMBOE
-------
2009 Reported Year-end Proved Reserves 2,304
2010 Estimated Year-end Proved Reserves 2,422
=======
Non-Price-Related Additions (exclusive of divestments) 330
Price-Related Revisions 29
=======
Total 2010 Reserve Additions 359
Oil and Gas Exploration and Development Costs (billions) $ 5.036
Reserve Replacement before Price Revisions 140%
Reserve Replacement including Price Revisions 153%
=======
2010 Estimated Year-end Proved Developed Reserves 69%
2010 Estimated Year-end Proved Undeveloped Reserves 31%
=======
2010 Estimated Year-end Natural Gas Proved Reserves 56%
2010 Estimated Year-end Liquids Proved Reserves 44%
=======
Anadarko Petroleum Corporation
Commodity Hedge Positions (Excluding Natural Gas Basis)
As of January 31, 2011
Volume Weighted Average Price per MMBtu
(thousand -----------------------------------------
MMBtu/d) Floor Sold Floor Purchased Ceiling Sold
-------- ---------- --------------- ------------
Natural Gas
Three-Way Collars
2011 480 $ 5.00 $ 6.50 $ 8.29
2012 500 $ 5.00 $ 6.50 $ 9.03
Fixed Price -
Financial
2011 90 $ 6.17
Volume Weighted Average Price per barrel
(thousand -----------------------------------------
MBbls/d) Floor Sold Floor Purchased Ceiling Sold
-------- ---------- --------------- ------------
Crude Oil
Three-Way Collars
2011 126 $ 64.29 $ 79.29 $ 99.95
2012 2 $ 35.00 $ 50.00 $ 92.50
Interest Rate Derivatives
As of January 31, 2011
Instrument Notional Amt. Start Date Maturity Rate Paid Rate Received
---------- -------------- ---------- -------- --------- -------------
Swap $750 Million Oct-2011 Oct-2021 4.72% 3M LIBOR
Swap $1,250 Million Oct-2011 Oct-2041 4.83% 3M LIBOR
Swap $250 Million Oct-2012 Oct-2022 4.91% 3M LIBOR
Swap $750 Million Oct-2012 Oct-2042 4.80% 3M LIBOR
Anadarko Contacts
Media:
John Christiansen
Email Contact
832.636.8736
Matt Carmichael
Email Contact
832.636.2845
Investors:
John Colglazier
Email Contact
832.636.2306
Dean Hennings
Email Contact
832.636.2462