Anadarko Delivers on Strategy and Outlines Future Growth Plans.

HOUSTON -- Anadarko Petroleum Corporation (NYSE:APC)

--ADDITIONAL NET RISKED RESOURCE POTENTIAL REACHES 2.1 BILLION BOE 

--ON TRACK TO DELIVER 5 - 9% ANNUAL VOLUME GROWTH THROUGH 2009

--MAINTAINING FINANCIAL DISCIPLINE AND FOCUSING ON RETURNS

In an analyst and investor conference today, Anadarko Petroleum Corporation (NYSE:APC) updated its progress since announcing its refocused corporate strategy in June 2004 and outlined how the changes have repositioned the company for growth, aided by a portfolio that today includes an additional net risked resource potential of approximately 2.1 billion barrels of oil equivalent (BOE).

"The 2.1 billion BOE of net risked resource potential we've identified is in addition to Anadarko's year-end 2004 proved reserves of 2.4 billion BOE. About half of these potential new resources are related to properties we are already developing," said Jim Hackett, Anadarko President and CEO. "The remainder are attributable to exploration prospects in our portfolio, including a substantial number of unconventional resource play opportunities onshore North America."

In the past 12 months, the company has successfully restructured its asset base, sold approximately $3.5 billion (pre-tax) of non-strategic properties, retired $1.4 billion in debt and repurchased $1.5 billion of common stock.

"Last June, we set an aggressive game plan, and today, we're continuing to deliver on that plan," Hackett said. "We have met or exceeded our goals in terms of restructuring-related divestiture timing and proceeds, and exercised the financial discipline we promised by retiring debt, repurchasing shares and otherwise strengthening our balance sheet. We've also met our production, cost, and other operational guidance for five consecutive quarters.

"In the midst of a major restructuring of the company, we continued to deliver very competitive drillbit-driven reserve replacement and finding and development costs," Hackett added.

Some recent operational highlights include:

--Anadarko sanctioned the development of its Eastern Gulf of Mexico discoveries through an agreement with four other producers and a midstream company. Production through the Independence Hub is expected in third quarter of 2007 with Anadarko as operator. The company also made two additional discoveries in the area.

--The K2/K2 North development through the Marco Polo hub facility has advanced, with the K2 field beginning production last month and currently producing at a daily gross rate of 12,000 BOE per day. Both fields are expected to ramp up through year-end. Further success was achieved in April with the Genghis Khan discovery, which is expected to begin production in 2006 through subsea tieback to the Marco Polo platform.

--At the company's Vernon field in North Louisiana, net production increased 75 percent during 2004. Anadarko is expanding the economic limits of the field, where current gross production is 320 million cubic feet a day (MMcf/d).

--The Haley field in West Texas, a new growth area, is an example of the company transferring its tight gas expertise to other geographic areas. From zero production 20 months ago, the company is now producing gross volumes of 106 MMcf/d.

Due to the success in advancing its refocused strategy, Anadarko is adding $300 million to its 2005 capital expenditures for new long-term strategic opportunities in three major areas: U.S. onshore lease acquisition and delineation drilling; a coalbed methane (CBM) water pipeline in Wyoming to make existing operations more economic and to enhance the company's competitive position; and additional deepwater Gulf of Mexico exploration and development. The company now estimates 2005 capital investment of $3.1 billion - $3.3 billion.

"Our success over the past year demonstrates our ability to deliver on our growth projections through 2009, including projected 5 to 9% annual production growth, 4 to 6% annual reserve growth, and 6 to 10% annual cash flow growth," Hackett said. "We're also positioning ourselves for growth beyond 2009 by capturing and advancing new projects in the deepwater Gulf of Mexico, Indonesia, Qatar, the Georgia Black Sea and North and West Africa as well as our LNG project in Canada."

Anadarko's analyst conference takes place today from 7:30 a.m. until noon Central Daylight Time (8:30 a.m. until 1 p.m. Eastern Daylight Time). The conference is being webcast and available for replay afterward at www.anadarko.com.

Anadarko Petroleum Corporation's mission is to deliver a competitive and sustainable rate of return to shareholders by developing, acquiring and exploring for oil and gas resources vital to the world's health and welfare. As of year-end 2004, the company had 2.37 billion barrels of oil equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. Anadarko's operational focus in North America extends from the deepwater Gulf of Mexico, up through Texas, Louisiana, the Mid-Continent, western U.S. and Canadian Rockies and onto the North Slope of Alaska. Anadarko also has significant production in Algeria, Venezuela and Qatar, and exploration or production positions in several other countries. For more information about how Anadarko is bringing excellence to the surface, 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 presentation. While Anadarko makes these forward-looking statements in good faith, neither Anadarko nor its management can guarantee that the anticipated future results will be achieved. Anadarko discloses proved reserves that comply with the SEC's definitions. Additionally, Anadarko may refer to potential resources and net risked resource potential, which are inherently more uncertain than proved reserves and are not allowed to be included in filings with the SEC. See "Regulatory Matters and Additional Factors Affecting Business" in the Management's Discussion and Analysis (MD&A) included in the company's Annual Report on Form 10-K.