EX-99 2 a5459781ex99.txt EXHIBIT 99 Exhibit 99 Anadarko Announces Second-Quarter 2007 Earnings HOUSTON--(BUSINESS WIRE)--July 30, 2007--Anadarko Petroleum Corporation (NYSE:APC) today announced second-quarter 2007 net income available to common stockholders totaled $652 million, or $1.39 per share (diluted). Income from continuing operations totaled $645 million, or $1.38 per share (diluted). These results include unrealized losses on derivatives of $35 million after tax, or $.08 per share (diluted); a restructuring charge of $27 million after tax, or $.06 per share (diluted); realized gains on derivatives of $82 million after tax, or $.17 per share (diluted); and a gain from the sale of certain midstream assets of $126 million after tax, or $.27 per share (diluted). Cash flow from continuing operations in the second quarter of 2007 was $229 million and discretionary cash flow totaled $174 million(1). Income tax payments made in the second quarter of 2007 associated with the divestiture program reduced both cash flow from continuing operations and discretionary cash flow by approximately $1.1 billion. In the 2006 second quarter, net income available to common stockholders was $814 million, or $1.76 per share (diluted), while income from continuing operations totaled $663 million, or $1.43 per share (diluted). Adjustments to estimated future tax liabilities resulting from tax law changes contributed $148 million, or $.32 per share (diluted), to net income, while contributing $69 million, or $.15 per share (diluted), to income from continuing operations in the 2006 second quarter. "We are pleased with our second-quarter operating and financial results," Anadarko Chairman, President and CEO Jim Hackett said. "Our retained properties are performing very well. Based on the demonstrated performance of the portfolio, combined with our expectations from Independence Hub, we are raising the production guidance for our continuing portfolio again, to between 189 million barrels and 193 million barrels of oil equivalent for the year - an increase of 3 million barrels from the previous midpoint." Second-quarter 2007 sales volumes of natural gas, crude oil and natural gas liquids totaled 52 million barrels of oil equivalent (BOE), or 574,000 BOE per day, compared with second-quarter 2006 sales volumes from continued operations of 36 million BOE, or 392,000 BOE per day. Second-quarter 2007 natural gas sales volumes averaged 1.80 billion cubic feet per day, at an average price of $7.10 per thousand cubic feet. Oil sales volumes in the second quarter averaged 227,000 barrels per day, at an average price of $60.43 per barrel. Natural gas liquids sales volumes averaged 47,000 barrels per day, at an average price of $41.88 per barrel. CONFERENCE CALL TOMORROW AT 9 A.M. CDT, 10 A.M. EDT Anadarko will host a conference call on Tuesday, July 31, at 9 a.m. Central Daylight Time (10 a.m. Eastern Daylight Time) to discuss second-quarter results and the company's outlook for 2007. The dial-in number is 913.981.4910, and the confirmation number is 7477001. 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 also be available on the website for approximately 30 days following the conference call. ANADARKO OPERATIONS REPORT For more details on Anadarko's operations, please refer to the comprehensive report on second-quarter activity. The report will be available at www.anadarko.com on the Investor Relations page. FINANCIAL DATA Nine pages of summary financial data follow, including current hedge positions, guidance and supplemental production guidance for the retained assets. 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 2006, the company had 3.0 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. For more information about Anadarko, please visit www.anadarko.com. (1) See the accompanying table for a reconciliation of GAAP to non-GAAP financial measures and a statement indicating why management believes the non-GAAP measures are useful information for investors. 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 successfully meet its revised production guidance, complete its announced asset divestitures, successfully create and market an initial public offering of a midstream Master Limited Partnership, and achieve Anadarko's debt reduction goals. See "Risk Factors" in the company's 2006 Annual Report on Form 10-K and other public filings and press releases. 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 2007 2006 --------------------------------------------------------------------- Cash Flow --------------------------------------------------------------------- Net cash provided by operating activities - continuing operations $ 229 $ 945 Add back: Change in accounts receivable (88) (42) Change in accounts payable and accrued expenses 593 221 Change in other items - net (560) (63) --------------------------------------------------------------------- Discretionary Cash Flow from Continuing Operations $ 174 $1,061 --------------------------------------------------------------------- Anadarko Petroleum Corporation Quarter Ended Year to Date Summary Financial Information June 30 June 30 ---------------- --------------- $ and shares in millions 2007 2006 2007 2006 ---------------------------------------------------------------------- Revenues and Other ---------------------------------------------------------------------- Gas sales $1,162 $ 627 $2,237 $1,371 Oil and condensate sales 1,249 1,007 2,327 1,808 Natural gas liquids sales 179 138 336 245 Gathering, processing and marketing sales 486 29 847 45 Other 237 8 249 41 ---------------------------------------------------------------------- Total 3,313 1,809 5,996 3,510 ---------------------------------------------------------------------- Costs and Expenses ---------------------------------------------------------------------- Oil and gas operating 253 138 581 262 Oil and gas transportation and other 110 88 217 163 Gathering, processing and marketing 336 24 635 42 General and administrative 217 123 448 228 Depreciation, depletion and amortization 706 362 1,551 655 Other taxes 276 101 627 208 Impairments 27 5 33 18 ---------------------------------------------------------------------- Total 1,925 841 4,092 1,576 ---------------------------------------------------------------------- Operating Income 1,388 968 1,904 1,934 ---------------------------------------------------------------------- Interest Expense and Other (Income) Expense ---------------------------------------------------------------------- Interest expense 314 51 624 104 Other (income) expense (23) (7) (52) (7) ---------------------------------------------------------------------- Total 291 44 572 97 ---------------------------------------------------------------------- Income from Continuing Operations, Before Income Taxes 1,097 924 1,332 1,837 ---------------------------------------------------------------------- Income Tax Expense 452 261 609 609 ---------------------------------------------------------------------- Income from Continuing Operations $ 645 $ 663 $ 723 $1,228 ---------------------------------------------------------------------- Income from Discontinued Operations, net of taxes 7 152 34 248 ---------------------------------------------------------------------- Net Income $ 652 $ 815 $ 757 $1,476 ---------------------------------------------------------------------- Preferred Stock Dividends - 1 1 2 ---------------------------------------------------------------------- Net Income Available to Common Stockholders $ 652 $ 814 $ 756 $1,474 ---------------------------------------------------------------------- Per Common Share ---------------------------------------------------------------------- Income from Continuing Operations - basic $ 1.39 $ 1.44 $ 1.56 $ 2.67 Income from Continuing Operations - diluted $ 1.38 $ 1.43 $ 1.55 $ 2.65 Income from Discontinued Operations, net of taxes - basic $ 0.01 $ 0.33 $ 0.07 $ 0.54 Income from Discontinued Operations, net of taxes - diluted $ 0.01 $ 0.33 $ 0.07 $ 0.53 Net Income Available to Common Stockholders - basic $ 1.40 $ 1.77 $ 1.63 $ 3.21 Net Income Available to Common Stockholders - diluted $ 1.39 $ 1.76 $ 1.62 $ 3.18 ---------------------------------------------------------------------- Average Number of Common Shares Outstanding - Basic 465 459 464 460 ---------------------------------------------------------------------- Average Number of Common Shares Outstanding - Diluted 467 463 466 464 ---------------------------------------------------------------------- Anadarko Petroleum Corporation Quarter Ended Year to Date Summary Financial Information June 30 June 30 ----------------- ----------------- $ in millions 2007 2006 2007 2006 ---------------------------------------------------------------------- Cash Flow from Operating Activities ---------------------------------------------------------------------- Net income $ 652 $ 815 $ 757 $ 1,476 Less income from discontinued operations, net of taxes (7) (152) (34) (248) Depreciation, depletion and amortization 706 362 1,551 655 Deferred income taxes (1,080) 23 (1,308) 144 Impairments 27 5 33 18 Gain on asset dispositions (197) - (221) - Unrealized (gains) losses on derivatives 55 2 557 (11) Other noncash items 18 6 62 27 ---------------------------------------------------------------------- Discretionary Cash Flow from Continuing Operations 174 1,061 1,397 2,061 (Increase) decrease in accounts receivable 88 42 675 345 Increase (decrease) in accounts payable and accrued expenses (593) (221) (1,670) (498) Other items - net 560 63 683 (59) ---------------------------------------------------------------------- Cash provided by operating activities - continuing operations 229 945 1,085 1,849 Cash provided by operating activities - discontinued operations 154 12 165 330 ---------------------------------------------------------------------- Net Cash Provided by Operating Activities(a) $ 383 $ 957 $ 1,250 $ 2,179 ---------------------------------------------------------------------- ---------------------------------------------------------------------- Capital Expenditures ---------------------------------------------------------------------- Capital spending $ 1,180 $ 848 $ 2,185 $ 1,579 Capitalized interest 53 15 98 28 Capitalized overhead 49 39 93 79 ---------------------------------------------------------------------- Capital expenditures - continuing operations 1,282 902 2,376 1,686 Capital expenditures - discontinued operations - 143 - 343 ---------------------------------------------------------------------- Total $ 1,282 $ 1,045 $ 2,376 $ 2,029 ---------------------------------------------------------------------- (a) Income tax payments of $1.1 billion associated with the divestiture program were made in the second quarter of 2007, which reduced cash flow from operating activities for the quarter and year- to-date periods. Proceeds from divestitures, which are reflected in investing activities (not presented above), provided the cash for these tax payments. June 30, Dec. 31, June 30, 2007 2006 2006 ---------------------------------------------------------------------- Condensed Balance Sheet ---------------------------------------------------------------------- Cash and cash equivalents $ 1,647 $ 491 $ 671 Other current assets 2,948 4,055 1,532 Current assets held for sale - 68 369 Net properties and equipment 39,146 48,739 16,231 Other assets 932 865 609 Goodwill and other intangible assets 4,740 4,616 1,092 Long-term assets held for sale 1,603 10 3,161 ---------------------------------------------------------------------- Total Assets $51,016 $58,844 $23,665 ---------------------------------------------------------------------- Current debt $ 5,744 $11,471 $ 211 Other current liabilities 3,826 5,240 1,690 Current liabilities associated with assets held for sale - 47 306 Long-term debt 11,138 11,520 3,361 Other long-term liabilities 14,507 15,653 5,021 Other long-term liabilities associated with assets held for sale 7 - 712 Stockholders' equity 15,794 14,913 12,364 ---------------------------------------------------------------------- Total Liabilities and Stockholders' Equity $51,016 $58,844 $23,665 ---------------------------------------------------------------------- Capitalization ---------------------------------------------------------------------- Total debt $16,882 $22,991 $ 3,572 Stockholders' equity 15,794 14,913 12,364 ---------------------------------------------------------------------- Total $32,676 $37,904 $15,936 ---------------------------------------------------------------------- Capitalization Ratios ---------------------------------------------------------------------- Total debt 52% 61% 22% Stockholders' equity 48% 39% 78% ---------------------------------------------------------------------- Anadarko Petroleum Corporation Quarter Ended Year to Date Volumes and Prices June 30 June 30 --------------- --------------- 2007 2006 2007 2006 ---------------------------------------------------------------------- Natural Gas ---------------------------------------------------------------------- United States ---------------------------------------------------------------------- Volumes, billion cubic feet 164 99 362 197 Average daily volumes, million cubic feet per day 1,798 1,091 2,000 1,091 Price per thousand cubic feet excluding derivatives $ 6.14 $ 6.20 $ 6.19 $ 6.83 ---------------------------------------------------------------------- Realized gain (loss) on derivatives $ 0.47 $(0.01) $ 0.68 $(0.02) Unrealized gain (loss) on derivatives $ 0.49 $ 0.12 $(0.69) $ 0.13 ---------------------------------------------------------------------- Total gains (losses) on derivatives $ 0.96 $ 0.11 $(0.01) $ 0.11 ---------------------------------------------------------------------- Total price per thousand cubic feet $ 7.10 $ 6.31 $ 6.18 $ 6.94 ---------------------------------------------------------------------- Crude Oil and Condensate ---------------------------------------------------------------------- United States ---------------------------------------------------------------------- Volumes, million barrels 13 7 26 14 Average daily volumes, thousand barrels per day 139 84 143 77 Price per barrel excluding derivatives $60.69 $64.17 $56.63 $61.15 ---------------------------------------------------------------------- Realized gain (loss) on derivatives $ 4.09 $(0.44) $ 5.14 $(0.44) Unrealized gain (loss) on derivatives $(5.77) $(1.92) $(8.61) $(1.00) ---------------------------------------------------------------------- Total gains (losses) on derivatives $(1.68) $(2.36) $(3.47) $(1.44) ---------------------------------------------------------------------- Price per barrel $59.01 $61.81 $53.16 $59.71 ---------------------------------------------------------------------- Algeria ---------------------------------------------------------------------- Volumes, million barrels 5 7 12 12 Average daily volumes, thousand barrels per day 59 71 66 67 Price per barrel excluding derivatives $69.27 $70.54 $64.03 $67.12 ---------------------------------------------------------------------- Realized gain (loss) on derivatives $ - $ - $ - $ - Unrealized gain (loss) on derivatives $(4.80) $ - $(3.22) $ - ---------------------------------------------------------------------- Total gains (losses) on derivatives $(4.80) $ - $(3.22) $ - ---------------------------------------------------------------------- Price per barrel $64.47 $70.54 $60.81 $67.12 ---------------------------------------------------------------------- Other International ---------------------------------------------------------------------- Volumes, million barrels 3 2 4 3 Average daily volumes, thousand barrels per day 29 17 23 18 Price per barrel $58.95 $53.47 $54.43 $50.59 ---------------------------------------------------------------------- Total ---------------------------------------------------------------------- Volumes, million barrels 21 16 42 29 Average daily volumes, thousand barrels per day 227 172 232 162 Price per barrel excluding derivatives $62.71 $65.75 $58.50 $62.41 ---------------------------------------------------------------------- Realized gain (loss) on derivatives $ 2.49 $(0.21) $ 3.19 $(0.21) Unrealized gain (loss) on derivatives $(4.77) $(0.93) $(6.25) $(0.47) ---------------------------------------------------------------------- Total gains (losses) on derivatives $(2.28) $(1.14) $(3.06) $(0.68) ---------------------------------------------------------------------- Total price per barrel $60.43 $64.61 $55.44 $61.73 ---------------------------------------------------------------------- Natural Gas Liquids ---------------------------------------------------------------------- United States ---------------------------------------------------------------------- Volumes, million barrels 4 4 9 6 Average daily volumes, thousand barrels per day 47 38 48 35 Total price per barrel $41.88 $39.66 $38.73 $39.32 ---------------------------------------------------------------------- Total Barrels of Oil Equivalent (BOE) - continuing operations ---------------------------------------------------------------------- Volumes, million BOE 52 36 111 68 Average daily volumes, thousand BOE per day 574 392 613 378 ---------------------------------------------------------------------- Total Barrels of Oil Equivalent (BOE) - discontinued operations ---------------------------------------------------------------------- Volumes, million BOE - 5 - 10 Average daily volumes, thousand BOE per day - 55 - 55 ---------------------------------------------------------------------- Total Barrels of Oil Equivalent (BOE) ---------------------------------------------------------------------- Volumes, million BOE 52 41 111 78 Average daily volumes, thousand BOE per day 574 447 613 433 Anadarko Petroleum Corporation Financial and Operating Guidance Continuing Operations As of July 30, 2007 3rd Quarter Total Year 2007 Forecast 2007 Forecast ------------- ------------- Units Units ------------- ------------- Total Sales (MMBOE) (a) 45 - 48 203 - 210 Crude Oil (MBbl/d): 180 - 190 195 - 210 United States 100 - 115 120 - 125 Algeria 60 - 65 60 - 65 Other International 17 - 20 17 - 20 Natural Gas (MMcf/d): United States 1,660 -1,750 1,940 -1,960 Natural Gas Liquids (MBbl/d): United States 35 - 37 37 - 40 (a) Sales include volumes associated with divestitures of 14.5 MMBOE through the 1st half of 2007, with 0-1 MMBOE in the 3rd Quarter and about 15 MMBOE for the year. $/ Unit $/ Unit --------------- --------------- Price Differentials vs NYMEX (w/o hedges) Crude Oil ($/Bbl): (3.50)- (4.50) (4.00)- (5.00) United States (7.00)- (8.00) (7.00)- (8.00) Algeria 1.00 - 4.00 1.00 - 3.00 Other International (10.00)-(12.00) (10.00)-(12.00) Natural Gas ($/Mcf): United States (1.00)- (1.50) (1.00)- (1.50) Anadarko Petroleum Corporation Financial and Operating Guidance Continuing Operations As of July 30, 2007 3rd Quarter Total Year 2007 Forecast 2007 Forecast -------------- -------------- $MM $MM -------------- -------------- Other Revenues: Gathering, Processing & Marketing Margins 70 - 90 325 - 375 Minerals and Other 25 - 30 275 - 300 ---------------------------------------------------------------------- Costs and Expenses: $ / Boe $ / Boe -------------- -------------- Oil & Gas Lease Operating 5.00 - 5.25 5.00 - 5.20 Oil & Gas Transportation 1.60 - 1.80 1.75 - 1.85 Depreciation, Depletion and Amortization 13.75 - 14.25 13.75 - 14.25 Production Taxes (% of Revenue) 12%- 13% 12%- 13% $MM $MM -------------- -------------- General and Administrative (excludes 180 - 195 700 - 725 restructuring charges) Impairments - - 25 35 - 100 Interest Expense 200 - 225 925 - 1,000 Other (Income) Expense (10)- 10 (70)- (50) Effective Tax Rate 40%- 46% 40%- 46% ---------------------------------------------------------------------- Avg. Shares Outstanding (MM) Basic 466 - 467 465 - 467 Diluted 467 - 468 467 - 469 ---------------------------------------------------------------------- $MM $MM -------------- -------------- Capital Investment 1,200 - 1,300 4,400 - 4,600 Capital Projects 1,120 - 1,200 4,050 - 4,175 Capitalized Direct Expenses 40 - 50 175 - 225 Capitalized Interest 40 - 50 175 - 200 Anadarko Petroleum Corporation Commodity Hedge Positions (Excluding Natural Gas Basis) As of July 30, 2007 ----------------- -------------------------- Fixed 2- Way Collars ----------------- -------------------------- ------------------------ ----------------- -------------------------- NYMEX Volume Price Volume Floor Ceiling Crude Oil Bbl/day $/Bbl Bbl/day $/Bbl $/Bbl ------------------------ -------------------------------------------- United States ----------------- -------------------------- Remainder 2007 27,250 $51.44 18,542 $44.33 $60.40 ----------------- -------------------------- Total Year 2008 Total Year 2009 Total Year 2010 Total Year 2011 Total Year 2012 Algeria Total Year 2008 Total Year 2009 Total Year 2010 Total Crude Oil, All Locations ----------------- -------------------------- Remainder 2007 27,250 $51.44 18,542 $44.33 $60.40 ----------------- -------------------------- Total Year 2008 Total Year 2009 Total Year 2010 Total Year 2011 Total Year 2012 ------------------------ ----------------- -------------------------- NYMEX Volume Price Volume Floor Ceiling Natural Gas MMMBtu/d $/MMBtu MMMBtu/d $/MMBtu $/MMBtu ------------------------ ----------------- -------------------------- United States ----------------- -------------------------- Remainder 2007 265 $ 7.03 386 $ 6.27 $10.73 ----------------- -------------------------- Total Year 2008 Total Year 2009 Prices are weighted averages of all transactions for each transaction type presented. ------------------------------------ 3- Way Collars ------------------------------------ --------------------------------- ------------------------------------ Sold Purchased Volume Floor Floor Ceiling Crude Oil Bbl/day $/Bbl $/Bbl $/Bbl --------------------------------- ------------------------------------ United States ------------------------------------ Remainder 2007 35,000 $43.57 $58.57 $86.16 ------------------------------------ ------------------------------------ Total Year 2008 67,000 $43.21 $58.21 $94.75 ------------------------------------ ------------------------------------ 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 ------------------------------------ Total Crude Oil, All Locations ------------------------------------ Remainder 2007 35,000 $43.57 $58.57 $86.16 ------------------------------------ ------------------------------------ Total Year 2008 86,000 $41.07 $56.07 $92.98 ------------------------------------ ------------------------------------ Total Year 2009 48,000 $37.51 $52.51 $87.04 ------------------------------------ ------------------------------------ Total Year 2010 18,000 $34.18 $49.19 $86.76 ------------------------------------ ------------------------------------ Total Year 2011 3,000 $35.00 $50.00 $86.00 ------------------------------------ ------------------------------------ Total Year 2012 1,500 $35.00 $50.00 $92.50 ------------------------------------ --------------------------------- ------------------------------------ Sold Purchased Volume Floor Floor Ceiling Natural Gas MMMBtu/d $/MMBtu $/MMBtu $/MMBtu --------------------------------- ------------------------------------ United States ------------------------------------ Remainder 2007 30 $ 6.00 $ 9.00 $11.23 ------------------------------------ ------------------------------------ Total Year 2008 500 $ 5.00 $ 7.50 $14.26 ------------------------------------ ------------------------------------ Total Year 2009 50 $ 5.00 $ 7.50 $12.60 ------------------------------------ Prices are weighted averages of all transactions for each transaction type presented. Anadarko Petroleum Corporation Natural Gas Basis Hedge Positions As of July 30, 2007 --------------------------------------------------------------------- ------------------------------------ Daily Volume (MMMBtu's) by Pricing Point --------------------------------------------------------------------- Pricing Point 2007 2008 2009 2010 --------------------------------------------------------------------- Gulf Coast 131 110 - - Mid Continent 220 330 140 25 Rocky Mountains 170 375 165 180 West Texas 10 10 - - ------------------------------------ Total Daily Volume Hedged 531 825 305 205 ==================================== ------------------------------------ Average Price Differential to Henry Hub --------------------------------------------------------------------- Pricing Point 2007 2008 2009 2010 --------------------------------------------------------------------- Gulf Coast $(0.614) $(0.475) $ - $ - Mid Continent $(0.986) $(0.993) $(0.708) $(0.592) Rocky Mountains $(1.455) $(1.467) $(1.104) $(0.985) West Texas $(1.196) $(1.080) $ - $ - ------------------------------------ Average Price Differential Hedged $(1.049) $(1.141) $(0.922) $(0.937) ==================================== Rockies Export Firm Transportation As of July 30, 2007 -------------------- Daily Volume (MMMBtu's) by Pricing Point ------------------------------------------------------------------- Delivery/ Pricing Point 2007 2008 2009 ------------------------------------------------------------------- Mid Continent 471 471 471 West Coast 88 88 88 San Juan 15 15 15 -------------------- Total 574 574 574 ==================== ------------------------------------------------------------------- Interest Rate Derivatives As of July 30, 2007 --------------------------------------------------------------------- --------------------------------------------------------------------- Instrument Notional Amt. Maturity Rate Paid Rate Received --------------------------------------------------------------------- Swap $600 Million May 2031 LIBOR + 2.205% 7.5% Swap $150 Million Oct 2007 LIBOR + 3.345% 6.625% Anadarko Petroleum Corporation Retained Properties Sales Recent Performance and 2007 Guidance As of July 30, 2007 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Actuals Actuals Actuals Guidance ------- ------- ------- ----------------- TOTAL SALES (MMBOE) 48.4 49.2 47.1 45.0 - 47.0 Natural Gas (MMcf/d) 1,791.5 1,795.7 1,634.1 1,660.0 - 1,725.0 Crude Oil (MBbl/d) 204.5 208.3 206.0 180.0 - 190.0 Natural Gas Liquids (MBbl/d) 34.2 39.3 38.9 34.0 - 37.0 ROCKIES Natural Gas (MMcf/d) 917.2 937.0 841.7 875.0 - 900.0 Crude Oil (MBbl/d) 23.1 23.5 23.9 24.0 - 26.0 Natural Gas Liquids (MBbl/d) 16.9 16.2 15.0 13.0 - 14.0 Total Sales (MMBOE) 17.4 17.6 16.3 16.8 - 17.5 SOUTHERN Natural Gas (MMcf/d) 639.5 644.2 611.0 560.0 - 580.0 Crude Oil (MBbl/d) 12.2 10.8 10.0 9.0 - 10.0 Natural Gas Liquids (MBbl/d) 10.3 14.4 14.5 14.0 - 15.0 Total Sales (MMBOE) 11.6 11.9 11.5 10.7 - 11.2 GULF OF MEXICO Natural Gas (MMcf/d) 239.7 223.2 200.5 230.0 - 250.0 Crude Oil (MBbl/d) 63.0 61.3 67.2 50.0 - 55.0 Natural Gas Liquids (MBbl/d) 4.2 4.0 4.6 4.0 - 4.0 Total Sales (MMBOE) 9.6 9.2 9.6 8.5 - 9.3 INTERNATIONAL / FRONTIER Natural Gas (MMcf/d) 0.4 0.3 0.3 0.0 - 0.0 Crude Oil (MBbl/d) 106.2 112.7 104.9 95.0 - 100.0 Natural Gas Liquids (MBbl/d) - - - - - - Total Sales (MMBOE) 9.6 10.1 9.6 8.7 - 9.2 Q4 2007 Total Year 2007 Guidance Guidance ----------------- ----------------- TOTAL SALES (MMBOE) 48.0 - 50.0 189.0 - 193.0 Natural Gas (MMcf/d) 1,930.0 - 1,990.0 1,755.0 - 1,787.0 Crude Oil (MBbl/d) 175.0 - 185.0 188.5 - 194.0 Natural Gas Liquids (MBbl/d) 30.0 - 35.0 35.0 - 38.0 ROCKIES Natural Gas (MMcf/d) 940.0 - 960.0 900.0 - 910.0 Crude Oil (MBbl/d) 25.0 - 27.0 24.0 - 25.0 Natural Gas Liquids (MBbl/d) 13.0 - 14.0 14.0 - 15.0 Total Sales (MMBOE) 17.9 - 18.5 68.6 - 70.0 SOUTHERN Natural Gas (MMcf/d) 545.0 - 565.0 590.0 - 600.0 Crude Oil (MBbl/d) 8.0 - 9.0 9.5 - 10.0 Natural Gas Liquids (MBbl/d) 13.0 - 14.0 14.0 - 14.5 Total Sales (MMBOE) 10.3 - 10.8 44.5 - 45.4 GULF OF MEXICO Natural Gas (MMcf/d) 445.0 - 465.0 275.0 - 285.0 Crude Oil (MBbl/d) 50.0 - 55.0 57.0 - 59.0 Natural Gas Liquids (MBbl/d) 4.5 - 5.0 4.0 - 4.5 Total Sales (MMBOE) 11.8 - 12.7 39.0 - 40.5 INTERNATIONAL / FRONTIER Natural Gas (MMcf/d) 0.0 - 0.0 0.0 - 0.0 Crude Oil (MBbl/d) 90.0 - 95.0 98.0 - 100.0 Natural Gas Liquids (MBbl/d) - - - - - - Total Sales (MMBOE) 8.3 - 8.7 35.8 - 36.5 CONTACT: Anadarko Petroleum Corporation, Houston Media: John Christiansen, 832-636-8736 john.christiansen@anadarko.com or Paula Beasley, 832-636-8765 paula.beasley@anadarko.com or Investors: John Colglazier, 832-636-2306 john.colglazier@anadarko.com or Chris Campbell, CFA, 832-636-8434 chris.campbell@anadarko.com