Anadarko Proposes Stock Split, Declares Dividends.

HOUSTON -- The Board of Directors of Anadarko Petroleum Corporation (NYSE:APC) today declared dividends on the company's common and preferred shares and authorized a two-for-one split of the common stock, subject to shareholder approval of an increase in authorized shares.

The stock split will require that shareholders authorize the issuance of new shares for this purpose at the company's May 11, 2006 annual meeting. If approved, Anadarko's transfer agent will deliver to each holder of record at the close of business on May 12, 2006, one additional share for every share of common stock held. The split will be effected in the form of a stock dividend, which will be delivered on May 26, 2006. Anadarko's common stock should begin trading on a post-split basis May 29, 2006. Based on year-end 2005 shares outstanding, Anadarko would have approximately 460 million shares of common stock outstanding following the proposed stock split.

A dividend of 18 cents per share was declared on the company's outstanding common stock, payable March 22, 2006, to stockholders of record at the close of business on March 8, 2006. Also, a standard dividend of $13.65 per share (equivalent to $1.365 per Depositary Share) was declared on the company's 5.46% Series B Cumulative Preferred Stock, payable on March 31, 2006, to stockholders of record at the close of business on March 15, 2006.

The amount of future dividends for Anadarko common stock will depend on earnings, financial condition, capital requirements and other factors. The Board of Directors will determine dividends on a quarterly basis.

ANADARKO PETROLEUM CORPORATION (NYSE:APC)

                                            5.46% Series B
                 Common Stock         Cumulative Preferred Stock
Record Date:     March 8, 2006            March 15, 2006
Payment Date:    March 22, 2006           March 31, 2006
Amount:          18 cents per share       $13.65 per share
                                          (Equivalent to $1.365
                                          per Depositary Share)

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 2004, the company had 2.37 billion barrels-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 the western U.S. and Canadian regions and onto the North Slope of Alaska. Anadarko's international activities are focused on its major positions in North Africa, the Middle East, Indonesia and exploration or production operations 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 news release. See "Regulatory Matters and Additional Factors Affecting Business" in the Management's Discussion and Analysis (MD&A) included in the company's 2004 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.