Attached files
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| 8-K - 8-K - ANADARKO PETROLEUM CORP | apc0630138k.htm |
Exhibit 99
NEWS
ANADARKO ANNOUNCES SECOND-QUARTER 2013 RESULTS
FULL-YEAR SALES-VOLUMES GUIDANCE INCREASED BY 1 MILLION BOE
HOUSTON, July 29, 2013 - Anadarko Petroleum Corporation (NYSE: APC) today announced second-quarter 2013 net income attributable to common stockholders of $929 million, or $1.83 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items increased net income by approximately $392 million, or $0.78 per share (diluted), on an after-tax basis.(1) Cash flow from operating activities in the second quarter of 2013 was approximately $2.502 billion, and discretionary cash flow totaled $1.908 billion.(2)
SECOND-QUARTER 2013 HIGHLIGHTS
• | Generated $290 million of adjusted free cash flow(2) |
• | Increased U.S. onshore oil volumes by almost 20,000 barrels per day over second-quarter 2012 |
• | Reached milestones at four large-scale oil projects in Algeria, Ghana and the Gulf of Mexico |
• | Drilled five deepwater discoveries in the Gulf of Mexico and Mozambique |
“We continue to have exceptional performance from our portfolio, as evidenced by the results delivered in the second quarter of 2013,” said Anadarko Chairman, President and CEO Al Walker. “Our U.S. onshore activities delivered year-over-year oil growth of 25 percent, averaging approximately 97,000 barrels per day during the quarter. We continued to drive significant improvements into our drilling and completions programs, and costs in each category were favorable to our expectations. We reached milestones at four of our large global oil projects, which are advancing on schedule and on budget, and we achieved a success rate of almost 70 percent in our deepwater exploration/appraisal program, including five new discoveries. We also strengthened the balance sheet, improving our net-debt-to-adjusted-capitalization ratio(2) to 29 percent compared to 34 percent at the end of 2012.”
OPERATIONS SUMMARY
Anadarko reported total sales volumes of more than 750,000 barrels of oil equivalent (BOE) per day during the second quarter. Liquids sales volumes averaged 309,000 barrels per day, without the benefit
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of an expected tanker lifting in Algeria, which is anticipated during the third quarter. Natural gas volumes averaged approximately 2.6 billion cubic feet per day. Anadarko is increasing its full-year 2013 sales volumes guidance to a range of 281 to 287 million BOE, from the previous range of 279 to 287 million BOE.
Anadarko’s Wattenberg Horizontal program continued to deliver robust growth during the quarter, driving the field average to more than 60,000 barrels of liquids per day, representing an increase of more than 37 percent over the second quarter of 2012. The company’s Eagleford Shale program also delivered higher liquids sales volumes, averaging approximately 32,000 barrels per day, representing a 62-percent increase over the second quarter of 2012. Additionally, Anadarko commenced operations at its 200-million-cubic-feet-per-day Brasada natural gas processing plant, significantly enhancing the company’s takeaway capacity in the Eagleford Shale. In Anadarko’s liquids-rich East Texas Horizontal program, sales volumes doubled from the second quarter of 2012 to approximately 40,000 BOE per day in the second quarter of 2013.
MEGA-PROJECT SUMMARY
Anadarko reached significant milestones at four of its large-scale oil projects during the quarter. The Lucius development in the deepwater Gulf of Mexico remains on track for first oil in the second half of 2014. The company successfully transported its 80,000-barrels-of-oil-per-day (BOPD) Lucius spar from the fabrication yard in Pori, Finland, to Corpus Christi, Texas, with plans to install the spar in Keathley Canyon block 875 during the third quarter of 2013. Construction on the Heidelberg spar, which also has a capacity of 80,000 BOPD, is about 30-percent complete. During the quarter, the company and its partners officially sanctioned the Heidelberg development project and expect to achieve first oil in mid-2016.
In Algeria, the first oil train at El Merk continued to increase production throughout the quarter, and the second oil train is being commissioned. El Merk remains on schedule to ramp toward a net rate of approximately 30,000 barrels per day by the end of 2013.
In Ghana, the government approved the Plan of Development for the TEN (Tweneboa, Enyenra, Ntomme) project during the quarter, which will be the partnership’s second major oil development offshore Ghana, with an 80,000-BOPD facility expected to begin production in 2016.
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EXPLORATION SUMMARY
Anadarko and its partners drilled five deepwater discoveries during the second quarter - three in the deepwater Gulf of Mexico and two in Mozambique. In addition to Anadarko’s previously announced discoveries at Phobos and Orca, during the second quarter the company also discovered:
• | Raptor (Gulf of Mexico; Desoto Canyon block 535) - Encountered approximately 150 net feet of high-quality oil pay in Jurassic reservoirs. Raptor was drilled to a total depth of 22,135 feet in approximately 8,200 feet of water. Data from these activities are being incorporated into the geologic model to evaluate potential appraisal plans. Anadarko operates Raptor with a 50-percent working interest. BHP Billiton Petroleum (Deepwater) Inc. owns a 50-percent working interest. |
• | Yucatan (Gulf of Mexico; Walker Ridge block 95) - Encountered more than 120 net feet of oil pay. Yucatan is more than three miles south and syncline separated from the Anadarko-operated Shenandoah discovery and approximately nine miles west of the Coronado discovery, in which Anadarko also owns an interest. The well was drilled to a total depth of 32,250 feet in water depth of approximately 5,800 feet. The partnership is evaluating the results and planning additional appraisal activity. Anadarko owns a 15-percent working interest in Yucatan. The block is operated by Shell with a 70-percent working interest. The other co-owner in the well is INPEX with a 15-percent working interest. |
• | Espadarte (Mozambique; Offshore Area 1) - Encountered approximately 280 net feet of natural gas pay in Oligocene and Miocene sands. The well was drilled to a total depth of approximately 11,640 feet in water depth of 1,536 feet. Anadarko operates Espadarte with a 36.5-percent working interest. Co-owners include Mitsui E&P Mozambique Area 1, Limited (20 percent), BPRL Ventures Mozambique B.V. (10 percent), Videocon Mozambique Rovuma 1 Limited (10 percent) and PTT Exploration & Production Plc (8.5 percent). Empresa Nacional de Hidrocarbonetos, ep, owns a 15-percent interest that is carried through the exploration phase. |
OPERATIONS REPORT
For more details on Anadarko’s operations and exploration program, please refer to the comprehensive report on second-quarter 2013 activity. The report is available on the Investor Relations page at: www.anadarko.com.
CONFERENCE CALL TOMORROW AT 8 A.M. CDT, 9 A.M. EDT
Anadarko will host a conference call on Tuesday, July 30, 2013, at 8 a.m. Central Daylight Time (9 a.m. Eastern Daylight Time) to discuss second-quarter results, current operations and the company’s outlook for the remainder of 2013. The dial-in number is 855.812.0464 in the United States, or 970.300.2271 internationally. The confirmation number is 16786048. For complete instructions on how to participate in the conference call, or to listen to the live audio webcast and slide presentation, please visit
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www.anadarko.com. A replay of the call will be available on the website for approximately 30 days following the conference call.
FINANCIAL DATA
Eight pages of summary financial data follow, including current hedge positions and updated financial and production guidance.
(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 financial measures provide useful information for investors.
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 2012, the company had approximately 2.56 billion barrels-equivalent of proved reserves, making it one of the world’s largest independent exploration and production companies. For more information about Anadarko and APC Flash Feed updates, 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, including Anadarko’s ability to meet financial and operating guidance, achieve its production targets, successfully manage its capital expenditures, timely complete and commercially operate the projects and drilling prospects identified in this news release, and achieve production and budget expectations on its mega projects. See “Risk Factors” in the company’s 2012 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.
# # #
ANADARKO CONTACTS
MEDIA:
John Christiansen, john.christiansen@anadarko.com, 832.636.8736
Brian Cain, brian.cain@anadarko.com, 832.636.3404
Christina Ramirez, christina.ramirez@anadarko.com, 832.636.8687
INVESTORS:
John Colglazier, john.colglazier@anadarko.com, 832.636.2306
Brian Kuck, brian.kuck@anadarko.com, 832.636.1397
Bill Tedesco, william.tedesco@anadarko.com, 832.636.3375
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Anadarko Petroleum Corporation
Certain Items Affecting Comparability
Quarter Ended June 30, 2013 | |||||||||||||
Before | After | Per Share | |||||||||||
millions except per-share amounts | Tax | Tax | (diluted) | ||||||||||
Unrealized gains (losses) on derivatives, net* | $ | 641 | $ | 407 | $ | 0.81 | |||||||
Gains (losses) on divestitures, net | 13 | 9 | 0.02 | ||||||||||
Impairments | (10 | ) | (4 | ) | (0.01 | ) | |||||||
Third-party well and platform decommissioning obligation | (141 | ) | (89 | ) | (0.18 | ) | |||||||
Reversal of Canadian indemnification liability | 56 | 35 | 0.07 | ||||||||||
Change in uncertain tax positions (FIN 48) | — | 37 | 0.07 | ||||||||||
Deepwater Horizon settlement and related costs | (4 | ) | (3 | ) | — | ||||||||
$ | 555 | $ | 392 | $ | 0.78 | ||||||||
* | For the quarter ended June 30, 2013, before-tax unrealized gains (losses) on derivatives, net includes $373 million related to commodity derivatives, $262 million related to other derivatives, and $6 million related to gathering, processing, and marketing sales. |
Quarter Ended June 30, 2012 | |||||||||||||
Before | After | Per Share | |||||||||||
millions except per-share amounts | Tax | Tax | (diluted) | ||||||||||
Unrealized gains (losses) on derivatives, net* | $ | (225 | ) | $ | (143 | ) | $ | (0.29 | ) | ||||
Gains (losses) on divestitures, net | (12 | ) | (8 | ) | (0.02 | ) | |||||||
Impairments, including unproved properties | (978 | ) | (628 | ) | (1.26 | ) | |||||||
Tronox-related contingent loss reversal | 525 | 334 | 0.67 | ||||||||||
Gulf of Mexico accelerated depreciation, depletion, and amortization | (34 | ) | (22 | ) | (0.04 | ) | |||||||
Change in uncertain tax positions (FIN 48) | — | (1 | ) | — | |||||||||
Deepwater Horizon settlement and related costs | (3 | ) | (2 | ) | — | ||||||||
$ | (727 | ) | $ | (470 | ) | $ | (0.94 | ) | |||||
* | For the quarter ended June 30, 2012, before-tax unrealized gains (losses) on derivatives, net includes $157 million related to commodity derivatives, $(374) million related to other derivatives, and $(8) 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 from operations (non-GAAP), free cash flow (non-GAAP), and adjusted free cash flow (non-GAAP), as well as 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. Management uses discretionary cash flow from operations because it is useful in comparisons of oil and gas exploration and production companies as it excludes fluctuations in assets and liabilities. Management uses free cash flow and adjusted free cash flow to demonstrate the Company’s ability to internally fund capital expenditures and to service or incur additional debt. Management uses adjusted net income (loss) to evaluate the Company’s operational trends and performance.
Quarter Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
millions | 2013 | 2012 | 2013 | 2012 | |||||||||||
Net cash provided by operating activities | $ | 2,502 | $ | 1,999 | $ | 5,005 | $ | 3,890 | |||||||
Add back | |||||||||||||||
Deepwater Horizon settlement and related costs | 3 | 9 | 6 | (13 | ) | ||||||||||
Algeria exceptional profits tax settlement | (248 | ) | (113 | ) | (698 | ) | (113 | ) | |||||||
Change in accounts receivable | (217 | ) | (378 | ) | (257 | ) | (351 | ) | |||||||
Change in accounts payable and accrued expenses | (290 | ) | 228 | (132 | ) | 486 | |||||||||
Change in other items—net | 158 | 84 | 40 | (148 | ) | ||||||||||
Discretionary cash flow from operations | $ | 1,908 | $ | 1,829 | $ | 3,964 | $ | 3,751 | |||||||
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Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures
Quarter Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
millions | 2013 | 2012 | 2013 | 2012 | |||||||||||
Discretionary cash flow from operations | $ | 1,908 | $ | 1,829 | $ | 3,964 | $ | 3,751 | |||||||
Less capital expenditures* | 1,866 | 1,809 | 3,613 | 3,599 | |||||||||||
Free cash flow | $ | 42 | $ | 20 | $ | 351 | $ | 152 | |||||||
Collection of Algeria exceptional profits tax receivable | 248 | 113 | 698 | 113 | |||||||||||
Adjusted free cash flow | $ | 290 | $ | 133 | $ | 1,049 | $ | 265 | |||||||
* | Includes Western Gas Partners, LP (WES) capital expenditures of $138 million for the quarter ended June 30, 2013, $123 million for the quarter ended June 30, 2012, $437 million for the six months ended June 30, 2013, and $221 million for the six months ended and June 30, 2012. |
Quarter Ended | Quarter Ended | ||||||||||||||
June 30, 2013 | June 30, 2012 | ||||||||||||||
After | Per Share | After | Per Share | ||||||||||||
millions except per-share amounts | Tax | (diluted) | Tax | (diluted) | |||||||||||
Net income (loss) attributable to common stockholders | $ | 929 | $ | 1.83 | $ | (89 | ) | $ | (0.18 | ) | |||||
Certain items affecting comparability | 392 | 0.78 | (470 | ) | (0.94 | ) | |||||||||
Adjusted net income (loss) | $ | 537 | $ | 1.05 | $ | 381 | $ | 0.76 | |||||||
Presented below is a reconciliation of total debt (GAAP) to net debt (non-GAAP). 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.
millions | June 30, 2013 | ||||||||
Total debt | $ | 13,538 | |||||||
Less cash and cash equivalents | 4,581 | ||||||||
Net debt | $ | 8,957 | |||||||
Net debt | $ | 8,957 | |||||||
Stockholders’ equity | 22,189 | ||||||||
Adjusted capitalization | $ | 31,146 | |||||||
Net debt to adjusted capitalization ratio | 29 | % | ||||||
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Anadarko Petroleum Corporation
(Unaudited)
Quarter Ended | Six Months Ended | ||||||||||||||
Summary Financial Information | June 30, | June 30, | |||||||||||||
millions except per-share amounts | 2013 | 2012 | 2013 | 2012 | |||||||||||
Consolidated Statements of Income | |||||||||||||||
Revenues and Other | |||||||||||||||
Natural-gas sales | $ | 935 | $ | 496 | $ | 1,742 | $ | 1,069 | |||||||
Oil and condensate sales | 1,995 | 2,222 | 4,372 | 4,466 | |||||||||||
Natural-gas liquids sales | 261 | 282 | 564 | 624 | |||||||||||
Gathering, processing, and marketing sales | 249 | 200 | 480 | 453 | |||||||||||
Gains (losses) on divestitures and other, net | 57 | 22 | 232 | 57 | |||||||||||
Total | 3,497 | 3,222 | 7,390 | 6,669 | |||||||||||
Costs and Expenses | |||||||||||||||
Oil and gas operating | 245 | 249 | 492 | 491 | |||||||||||
Oil and gas transportation and other | 253 | 223 | 508 | 463 | |||||||||||
Exploration | 178 | 1,121 | 442 | 1,365 | |||||||||||
Gathering, processing, and marketing | 222 | 178 | 421 | 367 | |||||||||||
General and administrative | 260 | 262 | 532 | 531 | |||||||||||
Depreciation, depletion, and amortization | 940 | 1,027 | 1,962 | 1,957 | |||||||||||
Other taxes | 245 | 326 | 525 | 703 | |||||||||||
Impairments | 10 | 112 | 39 | 162 | |||||||||||
Algeria exceptional profits tax settlement | — | — | 33 | (1,804 | ) | ||||||||||
Deepwater Horizon settlement and related costs | 4 | 3 | 7 | 11 | |||||||||||
Total | 2,357 | 3,501 | 4,961 | 4,246 | |||||||||||
Operating Income (Loss) | 1,140 | (279 | ) | 2,429 | 2,423 | ||||||||||
Other (Income) Expense | |||||||||||||||
Interest expense | 172 | 190 | 336 | 376 | |||||||||||
(Gains) losses on derivatives, net | (656 | ) | (44 | ) | (465 | ) | (328 | ) | |||||||
Other (income) expense, net | 98 | (519 | ) | 92 | (254 | ) | |||||||||
Total | (386 | ) | (373 | ) | (37 | ) | (206 | ) | |||||||
Income (Loss) Before Income Taxes | 1,526 | 94 | 2,466 | 2,629 | |||||||||||
Income Tax Expense (Benefit) | 567 | 164 | 1,023 | 516 | |||||||||||
Net Income (Loss) | 959 | (70 | ) | 1,443 | 2,113 | ||||||||||
Net Income Attributable to Noncontrolling Interests | 30 | 19 | 54 | 46 | |||||||||||
Net Income (Loss) Attributable to Common Stockholders | $ | 929 | $ | (89 | ) | $ | 1,389 | $ | 2,067 | ||||||
Per Common Share | |||||||||||||||
Net income (loss) attributable to common stockholders—basic | $ | 1.84 | $ | (0.18 | ) | $ | 2.75 | $ | 4.11 | ||||||
Net income (loss) attributable to common stockholders—diluted | $ | 1.83 | $ | (0.18 | ) | $ | 2.74 | $ | 4.10 | ||||||
Average Number of Common Shares Outstanding—Basic | 502 | 500 | 501 | 499 | |||||||||||
Average Number of Common Shares Outstanding—Diluted | 504 | 500 | 504 | 501 | |||||||||||
Exploration Expense | |||||||||||||||
Dry hole expense | $ | 66 | $ | 115 | $ | 224 | $ | 204 | |||||||
Impairments of unproved properties | 20 | 923 | 39 | 983 | |||||||||||
Geological and geophysical expense | 23 | 14 | 60 | 49 | |||||||||||
Exploration overhead and other | 69 | 69 | 119 | 129 | |||||||||||
Total | $ | 178 | $ | 1,121 | $ | 442 | $ | 1,365 | |||||||
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Anadarko Petroleum Corporation
(Unaudited)
Quarter Ended | Six Months Ended | ||||||||||||||
Summary Financial Information | June 30, | June 30, | |||||||||||||
millions | 2013 | 2012 | 2013 | 2012 | |||||||||||
Cash Flows from Operating Activities | |||||||||||||||
Net income (loss) | $ | 959 | $ | (70 | ) | $ | 1,443 | $ | 2,113 | ||||||
Depreciation, depletion, and amortization | 940 | 1,027 | 1,962 | 1,957 | |||||||||||
Deferred income taxes | 401 | (67 | ) | 563 | 143 | ||||||||||
Dry hole expense and impairments of unproved properties | 86 | 1,038 | 263 | 1,187 | |||||||||||
Impairments | 10 | 112 | 39 | 162 | |||||||||||
(Gains) losses on divestitures, net | (13 | ) | 12 | (157 | ) | 29 | |||||||||
Unrealized (gains) losses on derivatives, net | (641 | ) | 225 | (395 | ) | 83 | |||||||||
Deepwater Horizon settlement and related costs | 4 | 3 | 7 | 11 | |||||||||||
Algeria exceptional profits tax settlement | — | — | 33 | (1,804 | ) | ||||||||||
Tronox-related contingent loss | — | (525 | ) | — | (250 | ) | |||||||||
Certain other nonoperating items | 85 | — | 85 | — | |||||||||||
Other | 77 | 74 | 121 | 120 | |||||||||||
Discretionary Cash Flow from Operations | 1,908 | 1,829 | 3,964 | 3,751 | |||||||||||
Deepwater Horizon settlement and related costs | (3 | ) | (9 | ) | (6 | ) | 13 | ||||||||
Algeria exceptional profits tax settlement | 248 | 113 | 698 | 113 | |||||||||||
(Increase) decrease in accounts receivable | 217 | 378 | 257 | 351 | |||||||||||
Increase (decrease) in accounts payable and accrued expenses | 290 | (228 | ) | 132 | (486 | ) | |||||||||
Other items—net | (158 | ) | (84 | ) | (40 | ) | 148 | ||||||||
Net Cash Provided by Operating Activities | $ | 2,502 | $ | 1,999 | $ | 5,005 | $ | 3,890 | |||||||
Capital Expenditures | $ | 1,866 | $ | 1,809 | $ | 3,613 | $ | 3,599 | |||||||
June 30, | December 31, | ||||||||||
millions | 2013 | 2012 | |||||||||
Condensed Balance Sheets | |||||||||||
Cash and cash equivalents | $ | 4,581 | $ | 2,471 | |||||||
Accounts receivable, net of allowance | 2,556 | 2,747 | |||||||||
Algeria exceptional profits tax settlement | 32 | 730 | |||||||||
Other current assets | 730 | 847 | |||||||||
Net properties and equipment | 39,831 | 38,398 | |||||||||
Other assets | 1,893 | 1,716 | |||||||||
Goodwill and other intangible assets | 5,677 | 5,680 | |||||||||
Total Assets | $ | 55,300 | $ | 52,589 | |||||||
Current asset retirement obligations | $ | 285 | $ | 298 | |||||||
Other current liabilities | 4,728 | 3,696 | |||||||||
Long-term debt | 13,538 | 13,269 | |||||||||
Deferred income taxes | 9,378 | 8,759 | |||||||||
Other long-term liabilities | 3,662 | 4,685 | |||||||||
Stockholders’ equity | 22,189 | 20,629 | |||||||||
Noncontrolling interests | 1,520 | 1,253 | |||||||||
Total Liabilities and Equity | $ | 55,300 | $ | 52,589 | |||||||
Capitalization | |||||||||||
Total debt | $ | 13,538 | $ | 13,269 | |||||||
Stockholders’ equity | 22,189 | 20,629 | |||||||||
Total | $ | 35,727 | $ | 33,898 | |||||||
Capitalization Ratios | |||||||||
Total debt | 38 | % | 39 | % | |||||
Stockholders’ equity | 62 | % | 61 | % | |||||
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Anadarko Petroleum Corporation
(Unaudited)
Sales Volumes and Prices | ||||||||||||||||||||||||||||||||||||
Average Daily Volumes | Sales Volumes | Average Sales Price | ||||||||||||||||||||||||||||||||||
Crude Oil & | Crude Oil & | Crude Oil & | ||||||||||||||||||||||||||||||||||
Natural Gas | Condensate | NGLs | Natural Gas | Condensate | NGLs | Natural Gas | Condensate | NGLs | ||||||||||||||||||||||||||||
MMcf/d | MBbls/d | MBbls/d | Bcf | MMBbls | MMBbls | Per Mcf | Per Bbl | Per Bbl | ||||||||||||||||||||||||||||
Quarter Ended June 30, 2013 | ||||||||||||||||||||||||||||||||||||
United States | 2,647 | 155 | 83 | 241 | 14 | 7 | $ | 3.88 | $ | 94.99 | $ | 34.33 | ||||||||||||||||||||||||
Algeria | — | 43 | — | — | 4 | — | — | 102.18 | — | |||||||||||||||||||||||||||
Other International | — | 28 | — | — | 3 | — | — | 101.84 | — | |||||||||||||||||||||||||||
Total | 2,647 | 226 | 83 | 241 | 21 | 7 | $ | 3.88 | $ | 97.21 | $ | 34.33 | ||||||||||||||||||||||||
Quarter Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||
United States | 2,544 | 156 | 77 | 230 | 15 | 7 | $ | 2.15 | $ | 98.20 | $ | 40.41 | ||||||||||||||||||||||||
Algeria | — | 59 | — | — | 5 | — | — | 103.61 | — | |||||||||||||||||||||||||||
Other International | — | 26 | — | — | 3 | — | — | 113.95 | — | |||||||||||||||||||||||||||
Total | 2,544 | 241 | 77 | 230 | 23 | 7 | $ | 2.15 | $ | 101.22 | $ | 40.41 | ||||||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||||||||||
United States | 2,668 | 157 | 85 | 483 | 28 | 15 | $ | 3.61 | $ | 96.17 | $ | 36.29 | ||||||||||||||||||||||||
Algeria | — | 48 | — | — | 9 | — | — | 108.06 | — | |||||||||||||||||||||||||||
Other International | — | 36 | — | — | 7 | — | — | 107.66 | — | |||||||||||||||||||||||||||
Total | 2,668 | 241 | 85 | 483 | 44 | 15 | $ | 3.61 | $ | 100.26 | $ | 36.29 | ||||||||||||||||||||||||
Six Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||
United States | 2,480 | 148 | 78 | 450 | 27 | 14 | $ | 2.37 | $ | 101.76 | $ | 43.82 | ||||||||||||||||||||||||
Algeria | — | 54 | — | — | 10 | — | — | 110.88 | — | |||||||||||||||||||||||||||
Other International | — | 30 | — | — | 6 | — | — | 117.72 | — | |||||||||||||||||||||||||||
Total | 2,480 | 232 | 78 | 450 | 43 | 14 | $ | 2.37 | $ | 105.94 | $ | 43.82 | ||||||||||||||||||||||||
Average Daily Volumes MBOE/d | Sales Volumes MMBOE | |||||||||||||||||||||||||||||||||||
Quarter Ended June 30, 2013 | 750 | 69 | ||||||||||||||||||||||||||||||||||
Quarter Ended June 30, 2012 | 742 | 68 | ||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2013 | 771 | 140 | ||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2012 | 723 | 132 | ||||||||||||||||||||||||||||||||||
Sales Revenue and Commodity Derivatives | ||||||||||||||||||||||||||||||||||||
Commodity Derivatives Gain (Loss) | ||||||||||||||||||||||||||||||||||||
Natural Gas | Crude Oil & | Natural Gas | Crude Oil & Condensate | NGLs | ||||||||||||||||||||||||||||||||
millions | MMcf/d | Condensate | NGLs | Realized | Unrealized | Realized | Unrealized | Realized | Unrealized | |||||||||||||||||||||||||||
Quarter Ended June 30, 2013 | ||||||||||||||||||||||||||||||||||||
United States | $ | 935 | $ | 1,336 | $ | 261 | $ | (16 | ) | $ | 258 | $ | 1 | $ | 110 | $ | 3 | $ | 5 | |||||||||||||||||
Algeria | — | 400 | — | — | — | 33 | — | — | — | |||||||||||||||||||||||||||
Other International | — | 259 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total | $ | 935 | $ | 1,995 | $ | 261 | $ | (16 | ) | $ | 258 | $ | 34 | $ | 110 | $ | 3 | $ | 5 | |||||||||||||||||
Quarter Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||
United States | $ | 496 | $ | 1,396 | $ | 282 | $ | 224 | $ | (288 | ) | $ | 20 | $ | 414 | $ | 3 | $ | 31 | |||||||||||||||||
Algeria | — | 558 | — | — | — | 16 | — | — | — | |||||||||||||||||||||||||||
Other International | — | 268 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total | $ | 496 | $ | 2,222 | $ | 282 | $ | 224 | $ | (288 | ) | $ | 36 | $ | 414 | $ | 3 | $ | 31 | |||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||||||||||
United States | $ | 1,742 | $ | 2,729 | $ | 564 | $ | 51 | $ | (11 | ) | $ | 2 | $ | 50 | $ | 5 | $ | — | |||||||||||||||||
Algeria | — | 937 | — | — | — | 14 | — | — | — | |||||||||||||||||||||||||||
Other International | — | 706 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total | $ | 1,742 | $ | 4,372 | $ | 564 | $ | 51 | $ | (11 | ) | $ | 16 | $ | 50 | $ | 5 | $ | — | |||||||||||||||||
Six Months Ended June 30, 2012 | ||||||||||||||||||||||||||||||||||||
United States | $ | 1,069 | $ | 2,735 | $ | 624 | $ | 394 | $ | (202 | ) | $ | 15 | $ | 241 | $ | 3 | $ | 29 | |||||||||||||||||
Algeria | — | 1,096 | — | — | — | (12 | ) | — | — | — | ||||||||||||||||||||||||||
Other International | — | 635 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Total | $ | 1,069 | $ | 4,466 | $ | 624 | $ | 394 | $ | (202 | ) | $ | 3 | $ | 241 | $ | 3 | $ | 29 | |||||||||||||||||
10
Anadarko Petroleum Corporation | ||||||||||||||
Financial and Operating External Guidance | ||||||||||||||
As of July 29, 2013 | ||||||||||||||
3rd Qtr | Total Year | |||||||||||||
Guidance | Guidance | |||||||||||||
Units | Units | |||||||||||||
Total Sales (MMBOE) | 69 | — | 72 | 281 | — | 287 | ||||||||
Crude Oil (MBbl/d) | 252 | — | 256 | 256 | — | 260 | ||||||||
United States | 160 | — | 164 | 162 | — | 164 | ||||||||
Algeria | 60 | — | 62 | 59 | — | 61 | ||||||||
Other International | 30 | — | 32 | 34 | — | 36 | ||||||||
Natural Gas (MMcf/d) | ||||||||||||||
United States | 2,550 | — | 2,600 | 2,590 | — | 2,615 | ||||||||
Natural Gas Liquids (MBbl/d) | ||||||||||||||
United States | 82 | — | 88 | 84 | — | 90 | ||||||||
$ / Unit | $ / Unit | |||||||||||||
Price Differentials vs NYMEX (w/o hedges) | ||||||||||||||
Crude Oil ($/Bbl) | (1.00 | ) | — | 2.00 | 2.00 | — | 5.00 | |||||||
United States | (2.00 | ) | — | — | (1.00 | ) | — | 1.00 | ||||||
Algeria | 2.00 | — | 5.00 | 8.00 | — | 10.00 | ||||||||
Other International | 1.00 | — | 4.00 | 7.00 | — | 9.00 | ||||||||
Natural Gas ($/Mcf) | ||||||||||||||
United States | (0.15 | ) | — | (0.25 | ) | (0.10 | ) | — | (0.20 | ) | ||||
11
Anadarko Petroleum Corporation | ||||||||||||||
Financial and Operating External Guidance | ||||||||||||||
As of July 29, 2013 | ||||||||||||||
3rd Qtr | Total Year | |||||||||||||
Guidance | Guidance * | |||||||||||||
$ MM | $ MM | |||||||||||||
Other Revenues | ||||||||||||||
Marketing and Gathering Margin | 30 | — | 50 | 135 | — | 165 | ||||||||
Minerals and Other | 30 | — | 40 | 150 | — | 170 | ||||||||
$ / BOE | $ / BOE | |||||||||||||
Costs and Expenses | ||||||||||||||
Oil & Gas Direct Operating | 3.95 | — | 4.20 | 3.80 | — | 3.95 | ||||||||
Oil & Gas Transportation/Other | 3.65 | — | 3.85 | 3.55 | — | 3.75 | ||||||||
Depreciation, Depletion and Amortization | 13.75 | — | 14.00 | 13.90 | — | 14.15 | ||||||||
Production Taxes (% of Product Revenue) | 8.0 | % | — | 9.0 | % | 8.0 | % | — | 9.0 | % | ||||
$ MM | $ MM | |||||||||||||
General and Administrative | 275 | — | 295 | 1,100 | — | 1,200 | ||||||||
Exploration Expense | ||||||||||||||
Non-Cash | 95 | — | 115 | 700 | — | 800 | ||||||||
Cash | 160 | — | 180 | 475 | — | 525 | ||||||||
Interest Expense (net) | 175 | — | 180 | 685 | — | 695 | ||||||||
Other (Income)/Expense | — | — | 20 | 75 | — | 95 | ||||||||
Tax Rate | ||||||||||||||
Algeria (All current) | 45 | % | — | 50 | % | 45 | % | — | 50 | % | ||||
Rest of Company (20% Current for 3Q and FY) | 40 | % | — | 50 | % | 45 | % | — | 55 | % | ||||
Avg. Shares Outstanding (MM) | ||||||||||||||
Basic | 502 | — | 503 | 502 | — | 503 | ||||||||
Diluted | 504 | — | 505 | 504 | — | 505 | ||||||||
Capital Investment (Excluding Western Gas Partners, LP) | $ MM | $ MM | ||||||||||||
APC Capital Expenditures | 1,800 | — | 2,000 | 7,200 | — | 7,600 | ||||||||
* Excludes items affecting comparability | ||||||||||||||
12
Anadarko Petroleum Corporation | |||||||||
Commodity Hedge Positions | |||||||||
As of July 29, 2013 | |||||||||
Weighted Average Price per barrel | |||||||||
Volume (MBbls/d) | Floor Sold | Floor Purchased | Ceiling Sold | ||||||
Crude Oil | |||||||||
Three-Way Collars | |||||||||
2013 | |||||||||
Brent | 26 | $ | 85.00 | $ | 105.00 | $ | 125.15 | ||
Fixed Price - Financial | |||||||||
2013 | |||||||||
Brent | 61 | $ | 108.72 | ||||||
WTI | 47 | $ | 94.43 | ||||||
108 | $ | 102.50 | |||||||
2013 (Jul-Dec) | |||||||||
WTI | 14 | $ | 104.36 | ||||||
Volume | Weighted Average Price per MMBtu | ||||||||
(thousand | |||||||||
MMBtu/d) | Floor Sold | Floor Purchased | Ceiling Sold | ||||||
Natural Gas | |||||||||
Two-Way Collars | |||||||||
2013 (Apr-Oct) | 600 | n/a | $ | 3.18 | $ | 4.00 | |||
Three-Way Collars | |||||||||
2014 | 600 | $ | 2.75 | $ | 3.75 | $ | 5.01 | ||
Fixed Price - Financial | |||||||||
2013 | 1,185 | $ | 4.00 | ||||||
2014 | 600 | $ | 4.26 | ||||||
Interest Rate Derivatives | |||||||
As of July 29, 2013 | |||||||
Instrument | Notional Amt. | Start Date | Maturity | Rate Paid | Rate Received | ||
Swap | $750 Million | June 2014 | June 2024 | 6.00% | 3M LIBOR | ||
Swap | $1,100 Million | June 2014 | June 2044 | 5.57% | 3M LIBOR | ||
Swap | $50 Million | Sept. 2016 | Sept. 2026 | 5.91% | 3M LIBOR | ||
Swap | $750 Million | Sept. 2016 | Sept. 2046 | 5.86% | 3M LIBOR | ||