Anadarko Announces Second-Quarter 2006 Earnings.HOUSTON Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; -- Anadarko Petroleum Corporation Anadarko Petroleum Corporation (NYSE: APC) is one of the world’s largest independent oil and gas exploration and production companies, with 2.37 billion barrels of oil equivalent (BOE) of proved reserves and a production of 190 million BOE in 2004. Ranked No. (NYSE NYSE See: New York Stock Exchange :APC (1) (American Power Conversion Corporation, West Kingston, RI, www.apcc.com) The leading manufacturer of UPS systems and surge suppressors, founded in 1981 by Rodger Dowdell, Neil Rasmussen and Emanual Landsman, three electronic power engineers who had worked at MIT. ) today announced second-quarter 2006 net income available to common shareholders totaled $814 million, or $1.76 per share (diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ), compared with the split-adjusted $1.06 per share (diluted) earned in the 2005 second quarter. Adjustments to estimated future tax liabilities resulting from tax law changes contributed $148 million, or $.32 per share (diluted), to the 2006 second-quarter earnings. Second-quarter 2006 income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the totaled $663 million, or $1.43 per share (diluted), compared with $.92 per share (diluted) in the 2005 second quarter. Adjustments to estimated future tax liabilities contributed $69 million, or $.15 per share (diluted), to the 2006 second-quarter results from continuing operations. Cash flow from operating activities was $957 million and discretionary cash flow Discretionary cash flow Cash flow that is available after the funding of all positive net present value (NPV) capital investment projects; it is available for paying cash dividends, repurchasing common stock, retiring debt, and so on. totaled $1.21 billion in the second quarter.(1) "Anadarko's very strong performance in the second quarter reinforces our conviction regarding the company's strategy and potential," Anadarko Chairman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Jim Hackett Hackett may refer to: In places:
Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east and in U.S. onshore on·shore adj. 1. Moving or directed toward the shore: an onshore wind. 2. Located on the shore: an onshore beacon; an onshore patrol. adv. tight gas sands and coalbed methane Coalbed methane is a form of natural gas extracted from coal beds. In recent decades it has become an important source of energy in United States, Canada, and other countries. plays are delivering results. These are three core areas that will become an even greater focus for the company in the future through the pending acquisitions of Kerr-McGee The Kerr-McGee Corporation was an energy company involved in the exploration and production of oil and gas resources. The company, founded in 1929, had about 1.4 billion U.S. dollars in assets as of March 31, 2006. and Western Gas Resources Western Gas Resources is a Fortune 1000 company based in Denver, Colorado and founded in 1971. Western is an independent natural gas explorer, producer, gatherer, processor, transporter and energy marketer. ." Regarding the status of the acquisitions, shareholder meetings to approve the transactions have been scheduled, with an Aug. 10 vote set by Kerr-McGee Corporation (NYSE:KMG KMG Kerr-McGee KMG Koi Mil Gaya (Hindi movie) KMG Kunming, China - Kunming (Airport Code) KMG Kent Messenger Group (UK) ) and an Aug. 23 vote set by Western Gas Resources, Inc. (NYSE:WGR WGR Wireless Gaming Review (gaming resource website) WGR Western Gas Resources, Inc. WGR Waveguide Grating Router (IEEE) WGR Women in Government Relations, Inc. ). Each transaction is expected to close immediately after receipt of shareholder approval, subject to approval by the appropriate regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities . "We are working to complete the transactions expeditiously ex·pe·di·tious adj. Acting or done with speed and efficiency. See Synonyms at fast1. ex and are preparing for the integration of the three companies," Hackett said. "Some initiatives cannot begin until closing, but we are moving forward on several fronts, as evidenced by our decision to sell Anadarko's Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. subsidiary and by the pending divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of our Bear Head LNG LNG (liquefied natural gas): see under natural gas. project. By year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , investors should have a much clearer picture of the restructured, post-acquisition Anadarko and its excellent potential for growth and returns." Second-quarter sales volumes of natural gas, crude oil and natural gas liquids totaled 41 million barrels of oil equivalent (BOE BOE Based on Experience BOE Board of Education BOE Boletín Oficial del Estado (Spanish) BOE Bank of England BOE Board of Equalization BOE Board of Elections BOE Barrel of Oil Equivalent BOE Bind on Equip ), or 447,000 BOE per day. Natural gas sales volumes averaged 1,375 million cubic feet per day, at an average price of $6.26 per thousand cubic feet. Oil sales volumes in the second quarter averaged 177,000 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. , with an average price of $64.54 per barrel barrel: see English units of measurement. . Natural gas liquids sales volumes averaged 41,000 barrels per day, at an average price of $41.29 per barrel. Second-quarter sales volumes from continuing operations totaled 36 million BOE, or 392,000 BOE per day, up 5 percent from the prior-year period and 7 percent from the 2006 first quarter. CONFERENCE CALL TOMORROW AT 9 A.M. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT , 10 A.M. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT Anadarko will host a conference call on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , July July: see month. 28, at 9 a.m. Central Daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). Time (10 a.m. Eastern Daylight Time) to discuss second-quarter results and the company's outlook for 2006. The dial-in number is 913-981-4900, and the confirmation number is 2594836. For complete instructions on how to actively participate in the conference call, or to listen to the live audio webcast or a replay, please refer to www.anadarko.com. ANADARKO OPERATIONS REPORT For more details on Anadarko's operations, please refer to the comprehensive report on second-quarter drilling activity. The report will be available at www.anadarko.com on the Investor Relations Investor relations The process by which the corporation communicates with its investors. page. FINANCIAL DATA Ten pages of summary financial data follow, including current hedge positions and guidance. ABOUT ANADARKO 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 2005, the company had 2.45 billion barrels-equivalent of proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. , making it one of the world's largest independent exploration and production companies. Anadarko's operational focus in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. extends from the deepwater Gulf of Mexico, up through the western U.S. and Canadian regions and onto the North Slope North Slope, Alaska: see Alaska North Slope. of Alaska Alaska (əlă`skə), largest in area of the United States but third smallest (exceeding only Vermont and Wyoming) in population, occupying the northwest extremity of the North American continent, separated from the coterminous United States . Anadarko's international activities are focused on major positions in North Africa, the Middle East and Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. , as well as exploration or production operations in several other countries. In June June: see month. , Anadarko agreed to acquire Kerr-McGee Corporation (NYSE:KMG) and Western Gas Resources, Inc. (NYSE:WGR) in separate all-cash transactions totaling $21.1 billion, plus the assumption of debt estimated at $2.2 billion. For more information about how Anadarko is bringing excellence to the surface, please visit: www.anadarko.com. (1) See accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. table for a reconciliation of GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). to non-GAAP financial measures and statement indicating why management believes the non-GAAP measures are useful information for investors. This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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, or that the transactions described above will occur. 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 2005 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 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.
Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
Below is a reconciliation of cash provided by operating activities
(GAAP) to discretionary cash flow (non-GAAP) as required under
Regulation G of the Securities Exchange Act of 1934. The company uses
discretionary 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.
Quarter Ended
June 30
-------------------
millions 2006 2005
---------------------------------------------------------------------
Cash Flow
---------------------------------------------------------------------
Net cash provided by operating activities $957 $795
Add back:
Change in accounts receivable (6) 16
Change in accounts payable and accrued expenses 253 25
Change in other items - net 2 94
---------------------------------------------------------------------
Discretionary Cash Flow $1,206 $930
---------------------------------------------------------------------
Anadarko Petroleum Corporation
Quarter Ended Year to Date
Summary Financial Information June 30 June 30
------------------- -------------------
$ and shares in millions 2006 2005 2006 2005
---------------------------------------------------------------------
Revenues
---------------------------------------------------------------------
Gas sales $627 $659 $1,371 $1,260
Oil and condensate sales 1,007 601 1,808 1,241
Natural gas liquids sales 138 104 245 206
Other sales 37 30 86 38
---------------------------------------------------------------------
Total 1,809 1,394 3,510 2,745
---------------------------------------------------------------------
Costs and Expenses
---------------------------------------------------------------------
Direct operating 150 106 284 213
Transportation and cost of
product 100 66 183 128
General and administrative 123 98 228 188
Depreciation, depletion and
amortization 362 277 655 548
Other taxes 101 90 208 171
Impairments related to oil and
gas properties 5 - 18 -
---------------------------------------------------------------------
Total 841 637 1,576 1,248
---------------------------------------------------------------------
Operating Income 968 757 1,934 1,497
---------------------------------------------------------------------
Interest Expense and Other
(Income) Expense
---------------------------------------------------------------------
Interest expense 51 51 104 105
Other (income) expense (7) 7 (7) 5
---------------------------------------------------------------------
Total 44 58 97 110
---------------------------------------------------------------------
Income Before Income Taxes 924 699 1,837 1,387
---------------------------------------------------------------------
Income Tax Expense 261 260 609 520
---------------------------------------------------------------------
Income from Continuing
Operations $663 $439 $1,228 $867
---------------------------------------------------------------------
Income from Discontinued
Operations 152 68 248 131
---------------------------------------------------------------------
Net Income $815 $507 $1,476 $998
---------------------------------------------------------------------
Preferred Stock Dividends 1 1 2 2
---------------------------------------------------------------------
Net Income Available to Common
Stockholders $814 $506 $1,474 $996
---------------------------------------------------------------------
Per Common Share
---------------------------------------------------------------------
Income from continuing
operations - basic $1.44 $0.93 $2.67 $1.83
Income from continuing
operations - diluted $1.43 $0.92 $2.65 $1.81
Income from discontinued
operations - basic $0.33 $0.14 $0.54 $0.28
Income from discontinued
operations - diluted $0.33 $0.14 $0.53 $0.28
Net income - basic $1.77 $1.07 $3.21 $2.11
Net income - diluted $1.76 $1.06 $3.18 $2.09
---------------------------------------------------------------------
Average Number of Common
Shares Outstanding - Basic 459 472 460 473
---------------------------------------------------------------------
Average Number of Common
Shares Outstanding - Diluted 463 477 464 477
---------------------------------------------------------------------
Anadarko Petroleum Corporation
Quarter Ended Year to Date
Summary Financial Information June 30 June 30
------------------- -------------------
$ in millions 2006 2005 2006 2005
---------------------------------------------------------------------
Cash Flow from Operating
Activities
---------------------------------------------------------------------
Net income $815 $507 $1,476 $998
Less net income from
discontinued operations (152) (68) (248) (131)
Depreciation, depletion and
amortization 362 277 655 548
Deferred income taxes 12 58 133 118
Impairments related to oil and
gas properties 5 - 18 -
Other noncash items 6 16 27 23
---------------------------------------------------------------------
Discretionary Cash Flow from
Continuing operations 1,048 790 2,061 1,556
(Increase) decrease in
accounts receivable 42 10 345 118
Increase (decrease) in
accounts payable and accrued
expenses (190) 4 (476) (28)
Other items - net 7 (66) (81) (87)
---------------------------------------------------------------------
Cash provided by operating
activities - continuing
operations 907 738 1,849 1,559
Cash provided by operating
activities - discontinued
operations 50 57 330 172
---------------------------------------------------------------------
Net Cash Provided by Operating
Activities $957 $795 $2,179 $1,731
---------------------------------------------------------------------
---------------------------------------------------------------------
Capital Expenditures
---------------------------------------------------------------------
Capital spending $848 $615 $1,579 $1,189
Capitalized interest 15 16 28 30
Capitalized overhead 39 35 79 72
---------------------------------------------------------------------
Capital expenditures -
continuing operations 902 666 1,686 1,291
Capital expenditures -
discontinued operations 143 92 343 262
---------------------------------------------------------------------
Total $1,045 $758 $2,029 $1,553
---------------------------------------------------------------------
June 30, Dec. 31, June 30,
2006 2005 2005
---------------------------------------------------------------------
Condensed Balance Sheet
---------------------------------------------------------------------
Cash and cash equivalents $671 $561 $582
Other current assets 1,532 1,878 1,233
Current assets held for sale 369 477 620
Net properties and equipment 16,233 15,197 14,178
Other assets 609 561 443
Goodwill 1,092 1,089 1,192
Long-term assets held for sale 3,159 2,825 2,579
---------------------------------------------------------------------
Total Assets $23,665 $22,588 $20,827
---------------------------------------------------------------------
Current liabilities $1,901 $2,064 $1,698
Current liabilities held for
sale 306 339 236
Long-term debt 3,361 3,547 3,595
Other long-term liabilities 5,021 4,812 4,471
Other long-term liabilities
held for sale 712 775 772
Stockholders' equity 12,364 11,051 10,055
---------------------------------------------------------------------
Total Liabilities and
Stockholders' Equity $23,665 $22,588 $20,827
---------------------------------------------------------------------
Capitalization
---------------------------------------------------------------------
Total debt $3,572 $3,627 $3,625
Stockholders' equity 12,364 11,051 10,055
---------------------------------------------------------------------
Total $15,936 $14,678 $13,680
---------------------------------------------------------------------
Capitalization Ratios
---------------------------------------------------------------------
Total debt 22% 25% 26%
Stockholders' equity 78% 75% 74%
---------------------------------------------------------------------
Anadarko Petroleum Corporation
Quarter Ended Year to Date
Volumes and Prices June 30 June 30
------------------- -------------------
2006 2005 2006 2005
---------------------------------------------------------------------
Natural Gas
---------------------------------------------------------------------
United States
---------------------------------------------------------------------
Volumes, billion cubic feet 99 104 197 210
Average daily volumes, million
cubic feet per day 1,091 1,147 1,091 1,165
Price per thousand cubic feet $6.31 $6.32 $6.94 $5.98
---------------------------------------------------------------------
Crude Oil and Condensate
---------------------------------------------------------------------
United States
---------------------------------------------------------------------
Volumes, million barrels 7 5 14 12
Average daily volumes,
thousand barrels per day 84 65 77 67
Price per barrel $61.81 $44.32 $59.71 $41.20
---------------------------------------------------------------------
Algeria
---------------------------------------------------------------------
Volumes, million barrels 7 5 12 12
Average daily volumes,
thousand barrels per day 71 57 67 67
Price per barrel $70.54 $51.75 $67.12 $49.81
---------------------------------------------------------------------
Other International
---------------------------------------------------------------------
Volumes, million barrels 2 2 3 4
Average daily volumes,
thousand barrels per day 17 20 18 21
Price per barrel $53.47 $40.03 $50.59 $35.40
---------------------------------------------------------------------
Total
---------------------------------------------------------------------
Volumes, million barrels 16 12 29 28
Average daily volumes,
thousand barrels per day 172 142 162 155
Price per barrel $64.61 $46.71 $61.73 $44.10
---------------------------------------------------------------------
Natural Gas Liquids
---------------------------------------------------------------------
Total
---------------------------------------------------------------------
Volumes, million barrels 4 4 6 7
Average daily volumes,
thousand barrels per day 38 39 35 37
Price per barrel $39.66 $29.65 $39.32 $31.02
---------------------------------------------------------------------
Total Barrels of Oil
Equivalent (BOE) -
continuing operations
---------------------------------------------------------------------
Volumes, million BOE 36 34 68 70
Average daily volumes,
thousand BOE per day 392 372 378 386
---------------------------------------------------------------------
Total Barrels of Oil
Equivalent (BOE) -
discontinued operations
---------------------------------------------------------------------
Volumes, million BOE 5 5 10 10
Average daily volumes,
thousand BOE per day 55 56 55 55
---------------------------------------------------------------------
Total Barrels of Oil
Equivalent (BOE)
---------------------------------------------------------------------
Volumes, million BOE 41 39 78 80
Average daily volumes,
thousand BOE per day 447 428 433 441
---------------------------------------------------------------------
Anadarko Petroleum Corporation
Supplemental Financial Information
Summary Financial
Information 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr
$ and shares in
millions 2005 2005 2005 2005 2005 2006
---------------------------------------------------------------------
Revenues
---------------------------------------------------------------------
Gas sales $601 $659 $701 $1,007 $2,968 $744
Oil and condensate
sales 640 601 714 748 2,703 801
Natural gas liquids
sales 102 104 115 116 437 107
Other sales 8 30 (5) 46 79 49
---------------------------------------------------------------------
Total 1,351 1,394 1,525 1,917 6,187 1,701
---------------------------------------------------------------------
Costs and Expenses
---------------------------------------------------------------------
Direct operating 107 106 104 120 437 134
Transportation and
cost of product 62 66 69 78 275 83
General and
administrative 90 98 87 118 393 105
Depreciation,
depletion and
amortization 271 277 272 291 1,111 293
Other taxes 81 90 97 90 358 107
Impairments related
to oil and gas
properties - - 13 65 78 13
---------------------------------------------------------------------
Total 611 637 642 762 2,652 735
---------------------------------------------------------------------
Operating Income 740 757 883 1,155 3,535 966
---------------------------------------------------------------------
Interest Expense
and Other (Income)
Expense
---------------------------------------------------------------------
Interest expense 54 51 51 50 206 53
Other (income)
expense (2) 7 (36) (45) (76) -
---------------------------------------------------------------------
Total 52 58 15 5 130 53
---------------------------------------------------------------------
Income Before
Income Taxes 688 699 868 1,150 3,405 913
---------------------------------------------------------------------
Income Tax Expense 260 260 336 476 1,332 348
---------------------------------------------------------------------
Income from
Continuing
Operations $428 $439 $532 $674 $2,073 $565
---------------------------------------------------------------------
Income from
Discontinued
Operations 63 68 66 201 398 96
---------------------------------------------------------------------
Net Income $491 $507 $598 $875 $2,471 $661
Preferred Stock
Dividends 1 1 2 1 5 1
---------------------------------------------------------------------
Net Income
Available to
Common
Stockholders $490 $506 $596 $874 $2,466 $660
---------------------------------------------------------------------
Per Common Share
---------------------------------------------------------------------
Income from
continuing
operations -
basic $0.90 $0.93 $1.13 $1.45 $4.40 $1.23
Income from
continuing
operations -
diluted $0.89 $0.92 $1.11 $1.43 $4.36 $1.22
Income from
discontinued
operations -
basic $0.13 $0.14 $0.14 $0.43 $0.85 $0.21
Income from
discontinued
operations -
diluted $0.13 $0.14 $0.14 $0.43 $0.84 $0.20
Net income -
basic $1.03 $1.07 $1.27 $1.88 $5.24 $1.43
Net income -
diluted $1.03 $1.06 $1.25 $1.87 $5.19 $1.42
---------------------------------------------------------------------
Average Number of
Common Shares
Outstanding -
Basic 474 472 471 464 470 460
---------------------------------------------------------------------
Average Number of
Common Shares
Outstanding -
Diluted 478 477 476 469 475 465
---------------------------------------------------------------------
---------------------------------------------------------------------
Capital
Expenditures
---------------------------------------------------------------------
Capital spending $574 $615 $703 $848 $2,740 $731
Capitalized
interest 14 16 15 15 60 13
Capitalized
overhead 37 35 28 43 143 40
---------------------------------------------------------------------
Capital
expenditures -
continuing
operations 625 666 746 906 2,943 784
Capital
expenditures -
discontinued
operations 170 92 108 124 494 200
---------------------------------------------------------------------
Total $795 $758 $854 $1,030 $3,437 $984
---------------------------------------------------------------------
Anadarko Petroleum Corporation
Supplemental Financial Information
Volumes and Prices 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr
2005 2005 2005 2005 2005 2006
---------------------------------------------------------------------
Natural Gas
---------------------------------------------------------------------
United States
---------------------------------------------------------------------
Volumes, billion
cubic feet 107 104 101 102 414 98
Average daily
volumes, million
cubic feet per day 1,183 1,147 1,098 1,114 1,136 1,091
Price per thousand
cubic feet $5.64 $6.32 $6.94 $9.83 $7.16 $7.58
---------------------------------------------------------------------
Crude Oil and
Condensate
---------------------------------------------------------------------
United States
---------------------------------------------------------------------
Volumes, million
barrels 6 5 6 6 24 6
Average daily
volumes, thousand
barrels per day 70 65 68 70 68 71
Price per barrel $38.30 $44.32 $43.43 $51.24 $44.35 $57.24
---------------------------------------------------------------------
Algeria
---------------------------------------------------------------------
Volumes, million
barrels 7 5 6 6 24 6
Average daily
volumes, thousand
barrels per day 77 57 65 61 65 62
Price per barrel $48.36 $51.75 $61.18 $56.92 $54.38 $63.11
---------------------------------------------------------------------
Other International
---------------------------------------------------------------------
Volumes, million
barrels 2 2 2 2 8 2
Average daily
volumes, thousand
barrels per day 23 20 21 26 22 19
Price per barrel $31.30 $40.03 $42.31 $43.48 $39.37 $48.00
---------------------------------------------------------------------
Total Crude Oil and
Condensate
---------------------------------------------------------------------
Volumes, million
barrels 15 12 14 14 56 14
Average daily
volumes, thousand
barrels per day 170 142 154 157 155 152
Price per barrel $41.91 $46.71 $50.88 $52.20 $47.84 $58.44
---------------------------------------------------------------------
Natural Gas Liquids
---------------------------------------------------------------------
United States
---------------------------------------------------------------------
Volumes, million
barrels 3 4 3 3 12 3
Average daily
volumes, thousand
barrels per day 35 39 33 32 34 31
Price per barrel $32.55 $29.65 $37.87 $39.12 $34.56 $38.88
---------------------------------------------------------------------
Total Barrels of
Oil Equivalent
(BOE) - continuing
operations
---------------------------------------------------------------------
Volumes, million
BOE 36 34 34 34 138 33
Average daily
volumes, thousand
BOE per day 402 372 370 374 379 365
---------------------------------------------------------------------
Natural Gas
---------------------------------------------------------------------
Volumes, billion
cubic feet 24 26 26 25 102 25
Average daily
volumes, million
cubic feet per day 271 287 284 272 278 275
Price per thousand
cubic feet $5.70 $6.03 $7.08 $10.39 $7.29 $7.78
---------------------------------------------------------------------
Crude Oil and
Condensate
---------------------------------------------------------------------
Volumes, million
barrels 1 1 1 1 3 -
Average daily
volumes, thousand
barrels per day 7 7 8 7 7 5
Price per barrel $45.34 $46.36 $53.97 $51.36 $49.48 $47.60
---------------------------------------------------------------------
Natural Gas Liquids
---------------------------------------------------------------------
Volumes, million
barrels - - - - 1 -
Average daily
volumes, thousand
barrels per day 1 1 1 2 2 3
Price per barrel $29.64 $30.83 $31.77 $39.75 $33.75 $50.97
---------------------------------------------------------------------
Total Barrels of
Oil Equivalent
(BOE) -
discontinued
operations
---------------------------------------------------------------------
Volumes, million
BOE 5 5 5 5 20 5
Average daily
volumes, thousand
BOE per day 53 56 56 55 55 54
---------------------------------------------------------------------
Total Barrels of
Oil Equivalent
(BOE)
---------------------------------------------------------------------
Volumes, million
BOE 41 39 39 39 158 38
Average daily
volumes, thousand
BOE per day 455 428 426 429 434 419
---------------------------------------------------------------------
Anadarko Petroleum Corporation
Commodity Hedge Position for 3rd Quarter 2006 and Beyond
As of July 26, 2006
Natural Gas
United
States
------------------------ ------------------------------------
2 - Way Collars 3- Way Collars
------------------------ ------------------------------------
Sold Purchased
Volume Floor Ceiling Volume Floor Floor Ceiling
MMMBtu/d $/MMBtu $/MMBtu MMMbtu/day $/MMBtu $/MMBtu $/MMBtu
------------------------ ------------------------------------
Remainder
Year
2006 10.0 $4.00 $5.88 - $- $- $-
------------------------ ------------------------------------
Total
Year
2007 6.0 $4.00 $6.02 30.0 $6.00 $9.00 $11.23
------------------------ ------------------------------------
Total
Year
2008 250.0 $5.00 $7.50 $14.25
------------------------------------
Total
Year
2009 50.0 $5.00 $7.50 $12.60
------------------------------------
Canada
----------------
Fixed Price
----------------
NYMEX
Volume Price
MMMBtu/d $/MMBtu
----------------
----------------
Remainder
Year
2006 10.9 $2.87
----------------
Total
Year
2007 4.5 $2.83
----------------
Crude Oil
United States
----------------------- ---------------------------------
2 - Way Collars 3- Way Collars
----------------------- ---------------------------------
Sold Purchased
Volume Floor Ceiling Volume Floor Floor Ceiling
Bbl/day $/Bbl $/Bbl Bbl/day $/Bbl $/Bbl $/Bbl
----------------------- ---------------------------------
Remainder
Year 2006 822 $22.00 $26.32 - $- $- $-
----------------------- ---------------------------------
Total Year
2007 542 $22.00 $26.32 35,000 $43.57 $58.57 $86.16
----------------------- ---------------------------------
Total Year
2008 42,000 $42.14 $57.14 $90.74
---------------------------------
Total Year
2009 28,000 $40.36 $55.36 $87.34
---------------------------------
Total Year
2010 8,000 $35.00 $50.00 $86.49
---------------------------------
Total Year
2011 3,000 $35.00 $50.00 $86.00
---------------------------------
Total Year
2012 1,500 $35.00 $50.00 $92.50
---------------------------------
Algeria
---------------------------------
Total Year
2008 19,000 $33.51 $48.51 $86.73
---------------------------------
Total Year
2009 20,000 $33.51 $48.51 $86.62
---------------------------------
Total Year
2010 10,000 $33.53 $48.53 $86.98
---------------------------------
Anadarko Petroleum Corporation
Financial and Operating Guidance
Continuing Operations
As of July 27, 2006
3rd Quarter Total Year
2006 Forecast 2006 Forecast
------------------- -------------------
Units Units
------------------- -------------------
Total Sales (MM BOE) 35 - 37 141 - 143
Crude Oil (MBbl/d): 158 - 173 163 - 169
United States 88 - 94 84 - 86
Algeria 60 - 65 64 - 67
Other International 10 - 14 15 - 16
Natural Gas (MMcf/d): 1,130 - 1,170 1,120 - 1,140
United States 1,130 - 1,170 1,120 - 1,140
Natural Gas Liquids (MBbl/d): 35 - 39 33 - 36
United States 35 - 39 33 - 36
---------------------------------------------------------------------
$/ Unit $/ Unit
------------------- -------------------
Price Differentials vs NYMEX
(w/o hedges)
Crude Oil ($/Bbl): (4.50) - (6.50) (4.50) - (6.50)
United States (5.50) - (7.50) (5.50) - (6.50)
Algeria (1.25) - (1.75) (0.75) - (1.50)
Other International (3.00) - (9.00) (4.00) - (8.00)
Natural Gas ($/Mcf): (0.50) - (1.00) (0.75) - (1.25)
United States (0.50) - (1.00) (0.75) - (1.25)
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Anadarko Petroleum Corporation
Financial and Operating
Guidance
Continuing Operations
As of July 27, 2006
3rd Quarter Total Year
2006 Forecast 2006 Forecast
------------------- -------------------
$MM $MM
------------------- -------------------
Other Revenues:
Marketing 10 - 20 80 - 100
Minerals and Other 10 - 15 65 - 75
---------------------------------------------------------------------
Costs and Expenses:
$ / Boe $ / Boe
------------------- -------------------
Direct Operating 4.15 - 4.35 4.10 - 4.30
Transportation and Cost of
Product 2.40 - 2.80 2.50 - 2.80
Depreciation, Depletion and
Amortization 9.20 - 9.60 9.40 - 9.80
Production Taxes (% of
Revenue) 6.4% - 6.7% 6.2% - 6.5%
$MM $MM
------------------- -------------------
General and Administrative 110 - 120 445 - 465
Impairments Related to Oil
and Gas Properties - - 20 20 - 50
Interest Expense 49 - 50 200 - 210
Other (Income) Expense (5) - 5 (20) - -
Federal Tax Rate 35% - 40% 35% - 40%
Deferred Taxes (% of Total
Taxes) 20% - 40% 30% - 40%
---------------------------------------------------------------------
Avg. Shares Outstanding (MM)
Basic 459 - 460 460 - 461
Diluted 462 - 464 463 - 464
$MM $MM
------------------- -------------------
Capital Investment 850 - 925 3,400 - 3,550
Capital Projects 790 - 855 3,175 - 3,300
Capitalized Direct Expenses 45 - 50 170 - 185
Capitalized Interest 15 - 20 55 - 65
Anadarko Petroleum Corporation
Financial and Operating
Guidance
Discontinued Operations
As of July 27, 2006
3rd Quarter Total Year
2006 Forecast 2006 Forecast
------------------- -------------------
Units Units
------------------- -------------------
Total Sales (MM BOE) 5 - 6 20 - 21
Crude Oil (MBbl/d): 4 - 6 5 - 6
Natural Gas (MMcf/d): 284 - 304 285 - 295
Natural Gas Liquids (MBbl/d): 2 - 3 2 - 3
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$/ Unit $/ Unit
------------------- -------------------
Price Differentials vs NYMEX
(w/o hedges)
Crude Oil ($/Bbl): (7.00) - (10.00) (10.00) - (13.50)
Natural Gas ($/Mcf): (0.75) - (1.25) (1.00) - (1.50)
---------------------------------------------------------------------
$MM $MM
------------------- -------------------
Other Revenues: 5 - 15 50 - 70
---------------------------------------------------------------------
$ / Boe $ / Boe
------------------- -------------------
Costs and Expenses: 7.75 - 8.25 7.75 - 8.25
---------------------------------------------------------------------
$MM $MM
------------------- -------------------
Capital Investment 150 - 175 500 - 550
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