Anadarko Provides Capital Markets Update

October 7, 2008 7:58 AM EDT

HOUSTON--(BUSINESS WIRE)--

Anadarko Petroleum Corporation (NYSE: APC) today provided updated information regarding its activities in the debt and equity capital markets.

"During the third quarter, we completed a $600 million share repurchase and retired approximately $350 million of floating-rate notes due Sept. 15, 2009," Anadarko Sr. Vice President, Finance and Chief Financial Officer Al Walker said. "The outstanding capital efficiency of our assets is the primary driver for building a cash balance of approximately $1.9 billion at the end of September. We expect to close the previously announced divestiture of the Peregrino field offshore Brazil by year end and apply the net after-tax proceeds to additional debt reduction. We anticipate meeting our year-end debt-to-cap target range of 25 to 35 percent and, should prices stay at or above current levels, use our free cash flow above capital spending to repurchase additional shares in 2009."

The expanded 2009 capital program is expected to be focused on building upon the success of the company's exploration and development results. This includes our lower-risk onshore U.S. properties and recent oil discoveries in the deepwater Gulf of Mexico at Caesar/Tonga, offshore Ghana at the Jubilee field and most recently offshore Brazil where Anadarko announced a significant discovery in the Campos Basin.

"Our financial and operating profiles are very strong. In addition to the outstanding cash our operations produce, we have an undrawn $1.3 billion revolving credit facility. As for our various derivatives positions, we monitor these very closely and have no material counter-party risk at this time," Walker added.

Anadarko will provide additional details on its financial and operating results for the third-quarter 2008 during its earnings conference call on Nov. 4, 2008.

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 2007, Anadarko had 2.4 billion barrels of oil equivalent of proved reserves, making it one of the world's largest independent oil and natural gas exploration and production companies. For more information about Anadarko, 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 successfully generate sufficient cash flow to execute its capital and share repurchase programs, successfully achieve its debt-to-cap targets, and to efficiently identify and deploy capital resources for drilling prospects. See "Risk Factors" in the company's 2007 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.

Source: Anadarko Petroleum Corporation

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