ANADARKO PETROLEUM CORP - FORM 8-K - EX-99 - ANADARKO PRESS RELEASE DATED OCTOBER 27, 2015 - October 27, 2015

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Exhibit 99

NEWS

ANADARKO ANNOUNCES THIRD-QUARTER 2015 RESULTS

HOUSTON, Oct. 27, 2015 – Anadarko Petroleum Corporation (NYSE: APC) today announced its financial and operating results for the third quarter of 2015, including a net loss attributable to common stockholders of $2.235 billion, or $4.41 per share (diluted). These results include certain items typically excluded by the investment community in published estimates, which in aggregate decreased net income by $1.877 billion or $3.69 per share (diluted), on an after-tax basis.(1) Net cash flow from operating activities in the third quarter of 2015 was $1.127 billion, and discretionary cash flow from operations totaled $979 million.(2)    
    
HIGHLIGHTS
•
Exceeded the midpoint of guidance by 6,000 barrels per day of higher-margin U.S. oil sales volumes
•
Achieved capital expenditures and lease operating expense (LOE) per barrel of oil equivalent (BOE) below the low end of guidance
•
Completed a successful appraisal test at the Shenandoah field in the Gulf of Mexico
•
Accomplished a project milestone at the Heidelberg spar with the setting of the topsides
•
Continued to actively manage the portfolio by monetizing nearly $2 billion of assets year to date
“We remain committed to building and preserving value in this challenging environment,” said Anadarko Chairman, President and CEO Al Walker. “During the third quarter, we continued our focus on maintaining long-term flexibility, while enhancing short-cycle returns by delivering higher-margin sales volumes for lower costs. Our employees have continued to do outstanding work optimizing our performance by moderating our base decline, safely improving efficiencies and rig productivity, and achieving greater cost savings. These efforts and achievements have us well positioned to create differentiating value today and to accelerate activity when the market begins to reward growth again.”



2

OPERATIONS SUMMARY
During the third quarter, Anadarko’s sales volumes of crude oil, natural gas and natural gas liquids (NGLs) totaled 73 million BOE, or an average of 787,000 BOE per day. These results include an increase in oil sales volumes of 11,000 barrels of oil per day (BOPD) on a divestiture-adjusted basis(3) over the third quarter of 2014. Anadarko also updated its full-year 2015 sales-volume guidance to a range of 290 million to 292 million BOE, which excludes 2015 sales volumes associated with the divestitures of EOR, Bossier and Powder River Basin coalbed methane (CBM).
In the U.S. onshore, Anadarko increased oil sales volumes by 11 percent year over year on a divestiture-adjusted basis.(3) In the Wattenberg field, Anadarko increased oil sales volumes by 14 percent versus the third quarter of 2014. During the quarter, the Wattenberg team continued to achieve significant improvements in its drilling metrics. As a result, drilling cycle times were reduced by approximately 20 percent with a corresponding 15-percent reduction in drilling costs per foot versus the second quarter of 2015.
Anadarko continues to position its extensive Delaware Basin Wolfcamp Shale opportunity for future oil growth. As a result of improved well recoveries, now approaching 1 million BOE per well, and efficiency gains and cost reductions in the Wolfcamp Shale, this emerging oil play is beginning to contend with Wattenberg in terms of the most attractive economics in the company’s U.S. onshore portfolio. Anadarko has successfully reduced drilling costs in the Wolfcamp Shale to around $7.5 million per well with the expected ability to achieve further reductions of $1.5 million to $2 million per well with a future move to field-wide pad drilling. During the quarter, the company also successfully drilled its first test well in the Second Bone Spring, which demonstrated an initial production rate of more than 1,000 BOPD.
In the Gulf of Mexico, the company continued to successfully advance the Heidelberg project with the installation of the topsides. With the significant milestones achieved to date, first oil at Heidelberg has been accelerated and is now anticipated in the second quarter of 2016 from the first three subsea wells, with production from two additional wells coming on line at a later date. Also in the Gulf of Mexico, the company’s third appraisal test of the Shenandoah discovery encountered more than 620 net feet of oil pay, and an appraisal well at the Yeti discovery was spud during the third quarter.

OPERATIONS REPORT
For additional details on the operations described above and other operating areas and exploration activities, please refer to Anadarko’s comprehensive report on third-quarter 2015 activity. The report is available at www.anadarko.com.



3

FINANCIAL SUMMARY
Anadarko ended the quarter with $2.1 billion of cash on hand. Year to date, Anadarko has reached agreements to monetize or closed asset monetizations totaling approximately $2.0 billion, including the recent Powder River Basin CBM upstream divestiture, which closed Sept. 1, and the associated CBM midstream transaction, which is expected to close in the fourth quarter.

CONFERENCE CALL TOMORROW AT 8 A.M. CDT, 9 A.M. EDT
Anadarko will host a conference call on Wednesday, Oct. 28, 2015, at 8 a.m. Central Daylight Time (9 a.m. Eastern Daylight Time) to discuss third-quarter results, current operations and the company’s outlook for the remainder of 2015. The dial-in number is 866.777.2509 in the United States or 412.317.5413 internationally. Participants can register for the conference at
http://dpregister.com/10073998. For complete instructions on how to participate in the conference call, or to listen to the live audio webcast and slide presentation, please visit www.anadarko.com. A replay of the call will be available on the website for approximately 30 days following the conference call.

FINANCIAL DATA
Nine pages of summary financial data follow, including current hedge positions, a reconciliation of “divestiture-adjusted” or “same-store” sales, 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.

(3) See the accompanying table for a reconciliation of “divestiture-adjusted” or “same-store” sales volumes, which are intended to present performance of Anadarko’s continuing asset base, giving effect to recent divestitures.

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 2014, the company had approximately 2.86 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.



4

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 realize its expectations regarding performance in this challenging economic environment and meet financial and operating guidance, timely complete and commercially operate the projects and drilling prospects identified in this news release, achieve further drilling cost reductions, consummate the transaction described in this release, and achieve production and budget expectations. See “Risk Factors” in the company’s 2014 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
Stephanie Moreland, stephanie.moreland@anadarko.com, 832.636.2912

INVESTORS:
John Colglazier, john.colglazier@anadarko.com, 832.636.2306
Robin Fielder, robin.fielder@anadarko.com, 832.636.1462
Jeremy Smith, jeremy.smith@anadarko.com, 832.636.1544


5

Anadarko Petroleum Corporation
Certain Items Affecting Comparability
 
 
Quarter Ended September 30, 2015
 
 
Before
 
After
 
Per Share
millions except per-share amounts
 
Tax
 
Tax
 
(diluted)
Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives*
 
$
(360
)
 
$
(227
)
 
$
(0.45
)
Gains (losses) on divestitures, net (after noncontrolling interest)
 
(613
)
 
(388
)
 
(0.76
)
Impairments
 
 
 
 
 
 
Producing properties
 
(758
)
 
(479
)
 
(0.94
)
Exploration assets
 
(787
)
 
(698
)
 
(1.38
)
Inventory adjustments
 
(33
)
 
(22
)
 
(0.04
)
Change in uncertain tax positions (FIN 48)
 
—

 
(28
)
 
(0.05
)
Other adjustments
 
(40
)
 
(35
)
 
(0.07
)
 
 
$
(2,591
)
 
$
(1,877
)
 
$
(3.69
)

*
Includes $46 million related to commodity derivatives, $(407) million related to interest-rate derivatives, and $1 million related to gathering, processing, and marketing sales.    
 
 
Quarter Ended September 30, 2014
 
 
Before
 
After
 
Per Share
millions except per-share amounts
 
Tax
 
Tax
 
(diluted)
Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives*
 
$
276

 
$
175

 
$
0.35

Gains (losses) on divestitures, net
 
726

 
647

 
1.27

Impairments
 
(394
)
 
(249
)
 
(0.49
)
Change in uncertain tax positions (FIN 48)
 
—

 
(60
)
 
(0.12
)
Third-party well and platform decommissioning obligation
 
(22
)
 
(14
)
 
(0.03
)
Interest expense related to Tronox settlement
 
(19
)
 
(12
)
 
(0.02
)
 
 
$
567

 
$
487

 
$
0.96


*
Includes $371 million related to commodity derivatives, $(96) million related to interest-rate derivatives, and $1 million related to gathering, processing, and marketing sales.

Reconciliation of GAAP to Non-GAAP Measures

Below are reconciliations of net income (loss) attributable to common stockholders (GAAP) to adjusted net income (loss) (non-GAAP), cash provided by operating activities (GAAP) to discretionary cash flow from operations (non-GAAP), as well as to free cash flow (non-GAAP) as required under Regulation G of the Securities Exchange Act of 1934. Management uses adjusted net income (loss) to evaluate the Company’s operational trends and performance.

 
Quarter Ended
 
Quarter Ended
 
September 30, 2015
 
September 30, 2014
 
After
 
Per Share
 
After
 
Per Share
millions except per-share amounts
Tax
 
(diluted)
 
Tax
 
(diluted)
Net income (loss) attributable to common stockholders
$
(2,235
)
 
$
(4.41
)
 
$
1,087

 
$
2.12

Less certain items affecting comparability
(1,877
)
 
(3.69
)
 
487

 
0.96

Adjusted net income (loss)
$
(358
)
 
$
(0.72
)
 
$
600

 
$
1.16




6

Anadarko Petroleum Corporation
Reconciliation of GAAP to Non-GAAP Measures

Management uses discretionary cash flow from operations because it is useful in comparisons of oil and gas exploration and production companies as it excludes certain fluctuations in assets and liabilities and current taxes related to certain items affecting comparability. Management uses free cash flow to demonstrate the Company’s ability to internally fund capital expenditures and to service or incur additional debt.
 
Quarter Ended
 
Nine Months Ended
 
September 30,
 
September 30,
millions
2015
 
2014
 
2015
 
2014
Net cash provided by (used in) operating activities
$
1,127

 
$
2,323

 
$
(2,134
)
 
$
6,514

Add back
 
 
 
 
 
 
 
Increase (decrease) in accounts receivable
(128
)
 
(287
)
 
(23
)
 
(104
)
(Increase) decrease in accounts payable and accrued expenses
374

 
(689
)
 
573

 
(710
)
Other items—net
(1,069
)
 
198

 
(800
)
 
225

Tronox settlement payment
—

 
—

 
5,215

 
—

Certain nonoperating and other excluded items
1

 
24

 
26

 
25

Current taxes related to asset monetizations and Tronox tax position
674

 
207

 
990

 
1,033

Discretionary cash flow from operations
$
979

 
$
1,776

 
$
3,847

 
$
6,983

 
Quarter Ended
 
Nine Months Ended
 
September 30,
 
September 30,
millions
2015
 
2014
 
2015
 
2014
Discretionary cash flow from operations
$
979

 
$
1,776

 
$
3,847

 
$
6,983

Less capital expenditures*
1,352

 
2,117

 
4,575

 
7,087

Free cash flow**
$
(373
)
 
$
(341
)
 
$
(728
)
 
$
(104
)

*
Includes Western Gas Partners, LP (WES) capital expenditures of $127 million for the quarter ended September 30, 2015, $147 million for the quarter ended September 30, 2014, $405 million for the nine months ended September 30, 2015, and $490 million for the nine months ended September 30, 2014.
**
Free cash flow for the nine months ended September 30, 2015, includes a $910 million current tax benefit associated with the Tronox settlement.

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.
 
 
 
September 30, 2015
 
 
 
 
 
 
 
Anadarko
 
 
 
Anadarko
 
WGP*
 
excluding
millions
 
 
Consolidated
 
Consolidated
 
WGP
Total debt
 
 
$
15,925

 
$
2,587

 
$
13,338

Less cash and cash equivalents
 
 
2,072

 
75

 
1,997

Net debt
 
 
$
13,853

 
$
2,512

 
$
11,341

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Anadarko
 
 
 
 
 
Anadarko
 
excluding
millions
 
 
 
 
Consolidated
 
WGP
Net debt
 
 
 
 
$
13,853

 
$
11,341

Total equity
 
 
 
 
17,052

 
14,079

Adjusted capitalization
 
 
 
 
$
30,905

 
$
25,420


Net debt to adjusted capitalization ratio
 
 
 
 
45
%
 
45
%

*
Western Gas Equity Partners, LP (WGP) is a publicly traded consolidated subsidiary of Anadarko and WES is a consolidated subsidiary of WGP.


7

Anadarko Petroleum Corporation
(Unaudited)
 
Quarter Ended
 
Nine Months Ended
Summary Financial Information
September 30,
 
September 30,
millions except per-share amounts
2015
 
2014
 
2015
 
2014
Consolidated Statements of Income
 
 
 
 
 
 
 
Revenues and Other
 
 
 
 
 
 
 
Natural-gas sales
$
484

 
$
830

 
$
1,612

 
$
3,038

Oil and condensate sales
1,229

 
2,637

 
4,264

 
7,766

Natural-gas liquids sales
183

 
424

 
644

 
1,221

Gathering, processing, and marketing sales
334

 
339

 
932

 
928

Gains (losses) on divestitures and other, net
(542
)
 
780

 
(807
)
 
2,340

Total
1,688

 
5,010

 
6,645

 
15,293

Costs and Expenses
 
 
 
 
 
 
 
Oil and gas operating
262

 
275

 
784

 
861

Oil and gas transportation and other
271

 
322

 
921

 
869

Exploration
1,074

 
199

 
2,260

 
1,000

Gathering, processing, and marketing
289

 
269

 
798

 
771

General and administrative
345

 
381

 
933

 
984

Depreciation, depletion, and amortization
1,111

 
1,163

 
3,581

 
3,335

Other taxes
127

 
306

 
460

 
981

Impairments
758

 
394

 
3,571

 
514

Deepwater Horizon settlement and related costs
—

 
3

 
4

 
96

Total
4,237

 
3,312

 
13,312

 
9,411

Operating Income (Loss)
(2,549
)
 
1,698

 
(6,667
)
 
5,882

Other (Income) Expense
 
 
 
 
 
 
 
Interest expense
199

 
204

 
616

 
573

(Gains) losses on derivatives, net
282

 
(323
)
 
123

 
453

Other (income) expense, net
47

 
24

 
109

 
12

Tronox-related contingent loss
—

 
19

 
5

 
4,338

Total
528

 
(76
)
 
853

 
5,376

Income (Loss) Before Income Taxes
(3,077
)
 
1,774

 
(7,520
)
 
506

Income Tax Expense (Benefit)
(917
)
 
627

 
(2,232
)
 
1,719

Net Income (Loss)
(2,160
)
 
1,147

 
(5,288
)
 
(1,213
)
Net Income (Loss) Attributable to Noncontrolling Interests
75

 
60

 
154

 
142

Net Income (Loss) Attributable to Common Stockholders
$
(2,235
)
 
$
1,087

 
$
(5,442
)
 
$
(1,355
)
Per Common Share
 
 
 
 
 
 
 
Net income (loss) attributable to common stockholders—basic
$
(4.41
)
 
$
2.13

 
$
(10.73
)
 
$
(2.69
)
Net income (loss) attributable to common stockholders—diluted
$
(4.41
)
 
$
2.12

 
$
(10.73
)
 
$
(2.69
)
Average Number of Common Shares Outstanding—Basic
508

 
506

 
508

 
505

Average Number of Common Shares Outstanding—Diluted
508

 
508

 
508

 
505

 
 
 
 
 
 
 
 
Exploration Expense
 
 
 
 
 
 
 
Dry hole expense
$
817

 
$
104

 
$
859

 
$
527

Impairments of unproved properties
136

 
30

 
1,134

 
216

Geological and geophysical expense
67

 
13

 
105

 
93

Exploration overhead and other
54

 
52

 
162

 
164

Total
$
1,074

 
$
199

 
$
2,260

 
$
1,000



8

Anadarko Petroleum Corporation
(Unaudited)
 
Quarter Ended
 
Nine Months Ended
Summary Financial Information
September 30,
 
September 30,
millions
2015
 
2014
 
2015
 
2014
Cash Flows from Operating Activities
 
 
 
 
 
 
 
Net income (loss)
$
(2,160
)
 
$
1,147

 
$
(5,288
)
 
$
(1,213
)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
 
 
 
 
 
 
 
Depreciation, depletion, and amortization
1,111

 
1,163

 
3,581

 
3,335

Deferred income taxes
(1,440
)
 
(398
)
 
(2,627
)
 
(210
)
Dry hole expense and impairments of unproved properties
953

 
134

 
1,993

 
743

Impairments
758

 
394

 
3,571

 
514

(Gains) losses on divestitures, net
578

 
(726
)
 
1,003

 
(2,194
)
Total (gains) losses on derivatives, net
281

 
(324
)
 
123

 
462

Operating portion of net cash received (paid) in settlement of derivative instruments
79

 
48

 
251

 
(138
)
Other
145

 
87

 
219

 
195

Changes in assets and liabilities
 
 
 
 
 
 
 
Deepwater Horizon settlement and related costs
(1
)
 
1

 
—

 
93

Tronox-related contingent liability
—

 
19

 
(5,210
)
 
4,338

(Increase) decrease in accounts receivable
128

 
287

 
23

 
104

Increase (decrease) in accounts payable and accrued expenses
(374
)
 
689

 
(573
)
 
710

Other items—net
1,069

 
(198
)
 
800

 
(225
)
Net Cash Provided by (Used in) Operating Activities
$
1,127

 
$
2,323

 
$
(2,134
)
 
$
6,514

 
 
 
 
 
 
 
 
Capital Expenditures
$
1,352

 
$
2,117

 
$
4,575

 
$
7,087

 
 
 
 
 
September 30,
 
December 31,
millions
 
 
 
 
2015
 
2014
Condensed Balance Sheets
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
$
2,072

 
$
7,369

Accounts receivable, net of allowance
 
 
 
 
2,469

 
2,527

Other current assets
 
 
 
 
646

 
1,325

Net properties and equipment
 
 
 
 
35,381

 
41,589

Other assets
 
 
 
 
2,271

 
2,310

Goodwill and other intangible assets
 
 
 
 
6,343

 
6,569

Total Assets
 
 
 
 
$
49,182

 
$
61,689

Other current liabilities
 
 
 
 
4,348

 
4,934

Deepwater Horizon settlement and related costs
 
 
 
 
90

 
90

Tronox-related contingent liability
 
 
 
 
—

 
5,210

Long-term debt
 
 
 
 
15,892

 
15,092

Deferred income taxes
 
 
 
 
6,090

 
9,249

Other long-term liabilities
 
 
 
 
5,710

 
4,796

Stockholders’ equity
 
 
 
 
14,079

 
19,725

Noncontrolling interests
 
 
 
 
2,973

 
2,593

Total Equity
 
 
 
 
$
17,052

 
$
22,318

Total Liabilities and Equity
 
 
 
 
$
49,182

 
$
61,689

Capitalization
 
 
 
 
 
 
 
Total debt
 
 
 
 
$
15,925

 
$
15,092

Total equity
 
 
 
 
17,052

 
22,318

Total
 
 
 
 
$
32,977

 
$
37,410

Capitalization Ratios
 
 
 
 
 
 
 
Total debt
 
 
 
 
48
%
 
40
%
Total equity
 
 
 
 
52
%
 
60
%


9

Anadarko Petroleum Corporation
(Unaudited)
Sales Volumes and Prices
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Daily Sales Volumes
 
Sales Volumes
 
Average Sales Price
 
 
 
Oil &
 
 
 
 
 
Oil &
 
 
 
 
 
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 September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
2,186

 
224

 
117

 
201

 
21

 
11

 
$
2.41

 
$
43.48

 
$
15.83

Algeria
—

 
49

 
5

 
—

 
4

 
1

 
—

 
47.86

 
25.18

Other International
—

 
28

 
—

 
—

 
3

 
—

 
—

 
46.30

 
—

Total
2,186

 
301

 
122

 
201

 
28

 
12

 
$
2.41

 
$
44.45

 
$
16.26

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
2,494

 
213

 
129

 
230

 
20

 
11

 
$
3.62

 
$
92.59

 
$
35.11

Algeria
—

 
62

 
1

 
—

 
6

 
—

 
—

 
98.69

 
65.55

Other International
—

 
28

 
—

 
—

 
2

 
—

 
—

 
100.48

 
—

Total
2,494

 
303

 
130

 
230

 
28

 
11

 
$
3.62

 
$
94.56

 
$
35.35

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
2,424

 
233

 
128

 
662

 
64

 
35

 
$
2.44

 
$
47.37

 
$
17.08

Algeria
—

 
56

 
6

 
—

 
15

 
2

 
—

 
54.90

 
29.79

Other International
—

 
28

 
—

 
—

 
8

 
—

 
—

 
52.58

 
—

Total
2,424

 
317

 
134

 
662

 
87

 
37

 
$
2.44

 
$
49.16

 
$
17.63

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
2,603

 
197

 
116

 
711

 
54

 
31

 
$
4.27

 
$
95.30

 
$
38.21

Algeria
—

 
64

 
1

 
—

 
18

 
—

 
—

 
105.38

 
66.14

Other International
—

 
27

 
—

 
—

 
7

 
—

 
—

 
106.06

 
—

Total
2,603

 
288

 
117

 
711

 
79

 
31

 
$
4.27

 
$
98.57

 
$
38.38

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Daily Sales Volumes
MBOE/d
 
Sales Volumes
MMBOE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended September 30, 2015
787
 
73
 
 
 
 
 
 
 
 
 
 
Quarter Ended September 30, 2014
849
 
78
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2015
855
 
234
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2014
839
 
229
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales Revenue and Commodity Derivatives
 
 
 
 
 
 
 
 
Sales
 
 
Net Cash Received (Paid) from Settlement of Commodity Derivatives
millions
Natural Gas
 
Oil & Condensate
 
NGLs
 
 
Natural Gas
 
Oil & Condensate
 
NGLs
Quarter Ended September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
United States
$
484

 
$
897

 
$
170

 
 
$
78

 
$
1

 
$
—

Algeria
—

 
214

 
13

 
 
—

 
—

 
—

Other International
—

 
118

 
—

 
 
—

 
—

 
—

Total
$
484

 
$
1,229

 
$
183

 
 
$
78

 
$
1

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
United States
$
830

 
$
1,817

 
$
418

 
 
$
15

 
$
(8
)
 
$
1

Algeria
—

 
565

 
6

 
 
—

 
40

 
—

Other International
—

 
255

 
—

 
 
—

 
—

 
—

Total
$
830

 
$
2,637

 
$
424

 
 
$
15

 
$
32

 
$
1

 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2015
 
 
 
 
 
 
 
 
 
United States
$
1,612

 
$
3,018

 
$
596

 
 
$
228

 
$
6

 
$
17

Algeria
—

 
843

 
48

 
 
—

 
—

 
—

Other International
—

 
403

 
—

 
 
—

 
—

 
—

Total
$
1,612

 
$
4,264

 
$
644

 
 
$
228

 
$
6

 
$
17

 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2014
 
 
 
 
 
 
 
 
 
United States
$
3,038

 
$
5,125

 
$
1,208

 
 
$
(107
)
 
$
(68
)
 
$
3

Algeria
—

 
1,858

 
13

 
 
—

 
40

 
—

Other International
—

 
783

 
—

 
 
—

 
—

 
—

Total
$
3,038

 
$
7,766

 
$
1,221

 
 
$
(107
)
 
$
(28
)
 
$
3




10

Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of October 27, 2015
 
 
 
 
 
Note: Guidance excludes 2015 sales volumes associated with EOR, Bossier, and Powder River Basin CBM.
 
 
 
 
 
 
 
4th-Qtr
 
Full-Year
 
 
Guidance (see Note)
 
Guidance (see Note)
 
 
 
 
 
 
 
 
 
 
 Units
 
 Units
 
 
 
 
 
 
 
 
 
Total Sales Volumes (MMBOE)
 
68

—

70

 
290

—

292

Total Sales Volumes (MBOE/d)
 
739

—

761

 
795

—

800

 
 
 
 
 
 
 
 
 
Oil (MBbl/d)
 
297

—

305

 
308

—

312

 
 
 
 
 
 
 
 
 
United States
 
218

—

222

 
226

—

228

Algeria
 
61

—

63

 
57

—

58

Ghana
 
18

—

20

 
25

—

26

 
 
 
 
 
 
 
 
 
Natural Gas (MMcf/d)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
 
1,980

—

2,020

 
2,140

—

2,160

 
 
 
 
 
 
 
 
 
Natural Gas Liquids (MBbl/d)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
 
106

—

111

 
122

—

124

Algeria
 
5

—

7

 
5

—

6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ / Unit
 
$ / Unit
Price Differentials vs NYMEX (w/o hedges)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oil ($/Bbl)
 
(4.40
)
—

(0.40
)
 
(3.40
)
—

(0.40
)
 
 
 
 
 
 
 
 
 
United States
 
(6.00
)
—

(2.00
)
 
(5.00
)
—

(2.00
)
Algeria
 
—

—

4.00

 
1.00

—

4.00

Ghana
 
—

—

4.00

 
1.00

—

4.00

 
 
 
 
 
 
 
 
 
Natural Gas ($/Mcf)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
 
(0.45
)
—

(0.35
)
 
(0.45
)
—

(0.35
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



11

Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of October 27, 2015
 
 
 
 
 
Note: Guidance excludes items affecting comparability
 
 
 
 
 
 
 
4th-Qtr
 
Full-Year
 
 
Guidance (see Note)
 
Guidance (see Note)
 
 
 
 
 
 
 
 
 
 
 
 $ MM
 
 $ MM
Other Revenues
 
 
 
 
 
 
 
 
Marketing and Gathering Margin
 
40

—

50

 
175

—

185

Minerals and Other
 
45

—

55

 
275

—

285

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ / BOE
 
$ / BOE
Costs and Expenses
 
 
 
 
 
 
 
 
Oil & Gas Direct Operating
 
3.40

—

3.60

 
3.35

—

3.45

Oil & Gas Transportation/Other
 
3.75

—

3.95

 
3.70

—

3.80

Depreciation, Depletion, and Amortization
 
15.35

—

15.85

 
15.30

—

15.50

Production Taxes (% of Product Revenue)
 
7.5
%
—

8.5
%
 
7.0
%
—

7.5
%
 
 
 
 
 
 
 
 
 
 
 
$ MM
 
$ MM
 
 
 
 
 
 
 
 
 
General and Administrative
 
340

—

350

 
1,270

—

1,280

Exploration Expense
 
 
 
 
 
 
 
 
Non-Cash
 
230

—

250

 
500

—

550

Cash
 
120

—

140

 
375

—

395

Interest Expense (net)
 
200

—

210

 
815

—

825

Other (Income) Expense
 
35

—

45

 
200

—

210

 
 
 
 
 
 
 
 
 
Taxes
 
 
 
 
 
 
 
 
Algeria (All current)
 
55
%
—

60
%
 
55
%
—

60
%
Rest of Company (60% Current / 40% Deferred for Q4 and 25% Current / 75% deferred for FY)
 
35
%
—

45
%
 
30
%
—

40
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Avg. Shares Outstanding (MM)
 
 
 
 
 
 
 
 
Basic
 
507

—

508

 
507

—

509

Diluted
 
508

—

510

 
508

—

510

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital Investment (Excluding Western Gas Partners, LP)
$ MM
 
$ MM
 
 
 
 
 
 
 
 
 
APC Capital Expenditures
 
1,225

—

1,425

 
5,400

—

5,600

 
 
 
 
 
 
 
 
 



12

Anadarko Petroleum Corporation
Commodity Hedge Positions
As of October 27, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Price per barrel
 
 
 
Volume
(MBbls/d)
 
Floor Sold
 
Floor Purchased
 
Ceiling Sold
Crude Oil
 
 
 
 
 
 
 
 
Three-Way Collars
 
 
 
 
 
 
 
2016
 
 
 
 
 
 
 
 
WTI
 
65
$
41.54
$
53.08
$
62.25
 
Brent
 
18
$
47.22
$
59.44
$
69.47
 
 
 
83
$
42.77
$
54.46
$
63.82
 
 
 
 
 
 
 
 
 
 
 
Volume
 
Weighted Average Price per MMBtu
 
 
 
(thousand
 
 
 
 
 
 
 
 
 
MMBtu/d)
 
Floor Sold
 
Floor Purchased
 
Ceiling Sold
Natural Gas
 
 
 
 
 
 
 
 
Three-Way Collars
 
 
 
 
 
 
 
2015
 
 
635
$
2.75
$
3.75
$
4.76
 
 
 
 
 
 
 
 
 
 
Extendable Fixed Price - Financial
 
 
 
 
 
 
 
2015*
170
$
4.17
 
 
 
 
__________________________________________________________________
*
Includes an option for the counterparty to extend the contract term to December 2016 at the same price.

 
 
 
 
 
 
Interest-Rate Derivatives

As of October 27, 2015
 
 
 
 
 
 
Instrument
Notional Amt.
Reference Period
Mandatory
Termination Date
Rate Paid
Rate Received
Swap
$50 Million
Sept. 2016 - Sept. 2026
Sept. 2016
5.910%
3M LIBOR
Swap
$50 Million
Sept. 2016 - Sept. 2046
Sept. 2016
6.290%
3M LIBOR
Swap
$250 Million
Sept. 2016 - Sept. 2046
Sept. 2018
6.310%
3M LIBOR
Swap
$300 Million
Sept. 2016 - Sept. 2046
Sept. 2020
6.509%
3M LIBOR
Swap
$250 Million
Sept. 2016 - Sept. 2046
Sept. 2021
6.724%
3M LIBOR
Swap
$200 Million
Sept. 2017 - Sept. 2047
Sept. 2018
6.049%
3M LIBOR
Swap
$300 Million
Sept. 2017 - Sept. 2047
Sept. 2020
6.569%
3M LIBOR
Swap
$500 Million
Sept. 2017 - Sept. 2047
Sept. 2021
6.654%
3M LIBOR



13

Anadarko Petroleum Corporation
Reconciliation of Same-Store Sales

Average Daily Sales Volumes
 
Quarter Ended September 30, 2015
 
Quarter Ended September 30, 2014
 
 
 
Oil &
 
 
 
 
 
 
 
Oil &
 
 
 
 
 
Natural Gas
 
Condensate
 
NGLs
 
Total
 
Natural Gas
 
Condensate
 
NGLs
 
Total
 
MMcf/d
 
MBbls/d
 
MBbls/d
 
MBOE/d
 
MMcf/d
 
MBbls/d
 
MBbls/d
 
MBOE/d
U.S. Onshore
1,883

 
162

 
110

 
586

 
2,049

 
146

 
124

 
611

Deepwater Gulf of Mexico
158

 
55

 
7

 
88

 
154

 
46

 
5

 
77

International and Alaska
—

 
84

 
5

 
89

 
—

 
98

 
1

 
99

Same-Store Sales
2,041

 
301

 
122

 
763

 
2,203

 
290

 
130

 
787

Divestitures*
145

 
—

 
—

 
24

 
291

 
13

 
—

 
62

Total
2,186

 
301

 
122

 
787

 
2,494

 
303

 
130

 
849

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2015
 
Nine Months Ended September 30, 2014
 
 
 
Crude Oil &
 
 
 
 
 
 
 
Crude Oil &
 
 
 
 
 
Natural Gas
 
Condensate
 
NGLs
 
Total
 
Natural Gas
 
Condensate
 
NGLs
 
Total
 
MMcf/d
 
MBbls/d
 
MBbls/d
 
MBOE/d
 
MMcf/d
 
MBbls/d
 
MBbls/d
 
MBOE/d
U.S. Onshore
2,037

 
168

 
121

 
629

 
2,094

 
131

 
110

 
590

Deepwater Gulf of Mexico
164

 
53

 
7

 
87

 
201

 
44

 
6

 
84

International and Alaska
—

 
92

 
6

 
98

 
—

 
96

 
1

 
97

Same-Store Sales
2,201

 
313

 
134

 
814

 
2,295

 
271

 
117

 
771

Divestitures*
223

 
4

 
—

 
41

 
308

 
17

 
—

 
68

Total
2,424

 
317

 
134

 
855

 
2,603

 
288

 
117

 
839

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*
Includes China, Pinedale/Jonah, EOR, Bossier, and Powder River Basin CBM.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Daily Sales Volumes
 
 
 
Year Ended December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
Crude Oil &
 
 
 
 
 
 
 
 
 
 
 
 
 
Natural Gas
 
Condensate
 
NGLs
 
Total
 
 
 
 
 
 
 
 
 
MMcf/d
 
MBbls/d
 
MBbls/d
 
MBOE/d
U.S. Onshore
 
 
 
 
 
 
 
 
2,092

 
136

 
111

 
595

Deepwater Gulf of Mexico
 
 
 
 
 
 
 
 
196

 
45

 
5

 
83

International and Alaska
 
 
 
 
 
 
 
 
—

 
94

 
3

 
97

Same-Store Sales
 
 
 
 
 
 
 
 
2,288

 
275

 
119

 
775

Divestitures*
 
 
 
 
 
 
 
 
301

 
17

 
—

 
68

Total
 
 
 
 
 
 
 
 
2,589

 
292

 
119

 
843

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*
Includes China, Pinedale/Jonah, EOR, Bossier, and Powder River Basin CBM.


ANADARKO PETROLEUM CORP Reports