Anadarko Announces New Facility.

HOUSTON -- Anadarko Petroleum Corporation (NYSE:APC) today announced it will enter into a new 364-day $10 billion facility that replaces its existing $24 billion acquisition facility, effectively extending the maturity of the debt outstanding under the existing facility from August 2007 to April 2008. Other terms of the facility will remain substantially the same.

The original acquisition facility was used to finance the 2006 acquisitions of Kerr-McGee Corporation and Western Gas Resources, Inc. As part of its portfolio optimization activity, the company has been using proceeds from asset sales to reduce the initial $22.5 billion of borrowings under the original facility.

"Anadarko remains on track to accomplish its asset divestiture and debt reduction goals during 2007 as originally planned. The maturity extension through the new facility provides us with additional flexibility during our balance sheet restoration program should market dynamics change," Anadarko Chief Financial Officer Al Walker said. "We are very focused on maintaining our investment grade credit ratings as a strategic component of our business model. In addition to the substantial debt reduction to date, we have announced approximately $4 billion in asset sales that are anticipated to close in the near term and will further reduce the balance outstanding under the facility. We continue to expect our net total debt outstanding at the end of 2007 will be reduced to $12 billion or less."

UBS Investment Bank, Credit Suisse and Citigroup, the arrangers under the original facility, have provided firm commitments to Anadarko to underwrite the entire new $10 billion facility.

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 2006, the company had 3.0 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. In August 2006, Anadarko acquired Kerr-McGee Corporation and Western Gas Resources, Inc. in separate transactions.

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. See "Risk Factors" in the company's 2006 Annual Report on Form 10-K and other public filings, press releases and discussions with company management. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.