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May 2, 2016 4:40 PM EDT


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
 
FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Earliest Event Reported: May 2, 2016

 
ANADARKO PETROLEUM CORPORATION
(Exact name of registrant as specified in its charter)

Delaware
 
1-8968
 
76-0146568
(State or Other Jurisdiction of Incorporation)
 
(Commission File Number)
 
(IRS Employer Identification No.)


1201 Lake Robbins Drive
The Woodlands, Texas 77380-1046
(Address of principal executive offices)

Registrant’s telephone number, including area code (832) 636-1000
  
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))





The information in this Current Report on Form 8-K shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (Exchange Act), or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act.

Item 2.02  Results of Operations and Financial Condition.

On May 2, 2016, Anadarko Petroleum Corporation (Anadarko) announced first-quarter 2016 financial and operating results. The press release is included in this report as Exhibit 99 and is incorporated herein by reference.

Item 7.01  Regulation FD Disclosure.

On May 2, 2016, Anadarko provided guidance for the remainder of 2016. This information is contained in the press release included in this report as Exhibit 99.

Item 9.01  Financial Statements and Exhibits.
(d)

Exhibits.
99

Anadarko Press Release dated May 2, 2016.





SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
ANADARKO PETROLEUM CORPORATION
 
 
(Registrant)
 
 
 
May 2, 2016
By:
/s/ CHRISTOPHER O. CHAMPION
 
 
Christopher O. Champion
 
 
Vice President, Chief Accounting Officer and Controller





EXHIBIT INDEX
 
Exhibit No.
 
Description
 
 
 
99
 
Anadarko Press Release dated May 2, 2016.




Exhibit 99

NEWS

ANADARKO ANNOUNCES FIRST-QUARTER 2016 RESULTS

HOUSTON, May 2, 2016 – Anadarko Petroleum Corporation (NYSE: APC) today announced its financial and operating results for the first quarter of 2016, including a net loss attributable to common stockholders of $1.034 billion, or $2.03 per share (diluted). The net loss includes certain items typically excluded by the investment community in published estimates, which in the aggregate decreased net income by $465 million or $0.91 per share (diluted) on an after-tax basis.(1) Net cash used in operating activities in the first quarter of 2016 was $137 million. Discretionary cash flow from operations totaled $486 million.(2)    
    
FIRST-QUARTER 2016 HIGHLIGHTS
•
Announced year-over-year capital reduction of approximately 50 percent(3) 
•
Improved cost structure by $800 million by reducing the dividend and staffing
•
Closed monetizations totaling $1.3 billion
•
Issued $3.0 billion of new bonds to refinance debt maturing in 2016 and 2017

“During the first quarter, we maintained strong operating performance and continued to improve our cost structure and efficiencies, while taking significant steps to strengthen our financial position without diluting equity,” said Al Walker, Anadarko Chairman, President and CEO. “Year to date, we’ve closed monetizations totaling $1.3 billion and are currently in the process of advancing another $700-plus million of divestitures. We’ve also removed perceived uncertainty by issuing $3.0 billion of investment-grade bonds to refinance near-term maturities. Additionally, the dividend reduction and the restructuring of our workforce together are expected to provide approximately $800 million of available cash on an annualized basis. These actions combined with our continued focus on financial discipline, operational excellence and best-in-class capital allocation, support our ability to enhance and preserve value in a volatile market environment.”




2

OPERATIONS HIGHLIGHTS
•
Increased Delaware Basin net resource estimate to more than 2 billion barrels of oil equivalent (BOE)
•
Achieved first oil at the Heidelberg development in the deepwater Gulf of Mexico
•
Advanced the TEN development with the arrival of the FPSO offshore Ghana
•
Successfully drilled the company’s first horizontal deepwater well offshore Côte d’Ivoire

Anadarko’s first-quarter sales volumes of natural gas, oil and natural gas liquids (NGLs) totaled 75 million BOE, or an average of 823,000 BOE per day, on a divestiture-adjusted basis.(4) 
Anadarko’s 2016 U.S. onshore capital investments are primarily focused in the Delaware and DJ basins. In the Delaware Basin of West Texas, Anadarko delivered a year-over-year increase in sales volumes of approximately 47 percent, or about 12,000 BOE per day. As previously announced, the company’s successful appraisal and delineation program also resulted in an increase to its net recoverable resource estimate in the basin to more than 2 billion BOE from its previous estimate of more than 1 billion BOE. In the DJ Basin of northeast Colorado, the company achieved a year-over-year sales-volume increase of approximately 11 percent, or about 24,000 BOE per day.
In the Gulf of Mexico, the company increased year-over-year liquids sales volumes in the first quarter by 25 percent, largely driven by achieving first oil at Heidelberg ahead of schedule, continued outperformance at Lucius, and the contributions from our capital-efficient tieback program. Also during the first quarter, the floating production, storage and offloading (FPSO) vessel arrived at the TEN field offshore Ghana. The TEN development is more than 90-percent complete and remains on schedule for first oil in the third quarter of this year. Offshore Côte d’Ivoire, Anadarko continued its successful appraisal program, encountering approximately 100 net feet of vertical pay in the company’s first horizontal deepwater well at Paon-5A. The company plans to drill the Paon-3AR sidetrack well in the second quarter, followed by a drillstem and interference testing program, as it works to advance the Paon discovery toward commerciality.

OPERATIONS REPORT
For details on Anadarko’s operations and exploration program, including detailed tables illustrating divestiture-adjusted information, please refer to the comprehensive report on first-quarter 2016 activity. The report is available at www.anadarko.com.



3

CONFERENCE CALL TOMORROW AT 8 A.M. CDT, 9 A.M. EDT
Anadarko will host a conference call on Tuesday, May 3, 2016, at 8 a.m. Central Daylight Time (9 a.m. Eastern Daylight Time) to discuss first-quarter results, current operations and the company’s outlook for the remainder of 2016. The dial-in number is 877.883.0383 in the United States or 412.902.6506 internationally. The confirmation number is 1750264. 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) Does not include capital investments associated with Western Gas Partners, LP (NYSE: WES).

(4) 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 2015, the company had approximately 2.06 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, and consummate the transactions described in this news release. See “Risk Factors” in the company’s 2015 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.

Cautionary Note to Investors: The United States Securities and Exchange Commission (“SEC”) permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC’s definitions for such terms. Anadarko uses certain terms in this news release, such as “net resource estimate,” “net recoverable resource estimate,” and similar terms that the SEC’s guidelines strictly prohibit Anadarko from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in Anadarko’s Form 10-K for the year ended Dec. 31, 2015, File No. 001-08968, available from Anadarko at www.anadarko.com or by writing Anadarko at: Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The Woodlands, Texas 77380, Attn: Investor Relations. This form may also be obtained by contacting the SEC at 1-800-SEC-0330.

#            #            #

ANADARKO CONTACTS
MEDIA:
John Christiansen, [email protected], 832.636.8736
Stephanie Moreland, [email protected], 832.636.2912

INVESTORS:
John Colglazier, [email protected], 832.636.2306
Brian Kuck, [email protected], 832.636.7135
Jeremy Smith, [email protected], 832.636.1544
Shandell Szabo, [email protected], 832.636.3977


5

Anadarko Petroleum Corporation
Certain Items Affecting Comparability
 
 
Quarter Ended March 31, 2016
 
 
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*
 
$
(404
)
 
$
(255
)
 
$
(0.50
)
Gains (losses) on divestitures, net
 
2

 
1

 
—

Impairments
 
(16
)
 
(10
)
 
(0.02
)
Restructuring charges
 
(203
)
 
(128
)
 
(0.25
)
Change in uncertain tax positions (FIN 48)
 
—

 
(73
)
 
(0.14
)
 
 
$
(621
)
 
$
(465
)
 
$
(0.91
)

*
Includes $(325) million related to interest-rate derivatives, $(75) million related to commodity derivatives, and $(4) million related to gathering, processing, and marketing sales.    
 
 
Quarter Ended March 31, 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*
 
$
(243
)
 
$
(153
)
 
$
(0.30
)
Gains (losses) on divestitures, net
 
(334
)
 
(252
)
 
(0.50
)
Impairments, including unproved properties
 
(3,718
)
 
(2,353
)
 
(4.64
)
Early termination of rig
 
(50
)
 
(50
)
 
(0.10
)
Third-party well and platform decommissioning obligation
 
(22
)
 
(14
)
 
(0.03
)
Interest expense related to Tronox settlement
 
(5
)
 
(3
)
 
(0.01
)
Change in uncertain tax positions (FIN 48)
 
—

 
(78
)
 
(0.15
)
 
 
$
(4,372
)
 
$
(2,903
)
 
$
(5.73
)

*
Includes $(205) million related to interest-rate derivatives, $(37) million related to commodity 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
 
March 31, 2016
 
March 31, 2015
 
After
 
Per Share
 
After
 
Per Share
millions except per-share amounts
Tax
 
(diluted)
 
Tax
 
(diluted)
Net income (loss) attributable to common stockholders
$
(1,034
)
 
$
(2.03
)
 
$
(3,268
)
 
$
(6.45
)
Less certain items affecting comparability
(465
)
 
(0.91
)
 
(2,903
)
 
(5.73
)
Adjusted net income (loss)
$
(569
)
 
$
(1.12
)
 
$
(365
)
 
$
(0.72
)



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
 
March 31,
millions
2016
 
2015
Net cash provided by (used in) operating activities
$
(137
)
 
$
(4,504
)
Add back
 
 
 
Increase (decrease) in accounts receivable
(46
)
 
(357
)
(Increase) decrease in accounts payable and accrued expenses
403

 
279

Other items, net
86

 
608

Tronox settlement payment
—

 
5,215

Certain nonoperating and other excluded items
180

 
26

Current taxes related to asset monetizations and Tronox tax position
—

 
228

Discretionary cash flow from operations
$
486

 
$
1,495

 
Quarter Ended
 
March 31,
millions
2016
 
2015
Discretionary cash flow from operations
$
486

 
$
1,495

Less capital expenditures*
896

 
1,822

Free cash flow**
$
(410
)
 
$
(327
)

*
Includes Western Gas Partners, LP (WES) capital expenditures of $140 million for the quarter ended March 31, 2016, and $156 million for the quarter ended March 31, 2015.
**
Free cash flow for the quarter ended March 31, 2015, includes a $561 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.
 
 
 
March 31, 2016
 
 
 
 
 
 
 
Anadarko
 
 
 
Anadarko
 
WGP*
 
excluding
millions
 
 
Consolidated
 
Consolidated
 
WGP
Total debt
 
 
$
18,751

 
$
3,049

 
$
15,702

Less cash and cash equivalents
 
 
2,947

 
111

 
2,836

Net debt
 
 
$
15,804

 
$
2,938

 
$
12,866

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Anadarko
 
 
 
 
 
Anadarko
 
excluding
millions
 
 
 
 
Consolidated
 
WGP
Net debt
 
 
 
 
$
15,804

 
$
12,866

Total equity
 
 
 
 
14,701

 
11,686

Adjusted capitalization
 
 
 
 
$
30,505

 
$
24,552


Net debt to adjusted capitalization ratio
 
 
 
 
52
%
 
52
%

*
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
Summary Financial Information
March 31,
millions except per-share amounts
2016
 
2015
Consolidated Statements of Income
 
 
 
Revenues and Other
 
 
 
Oil and condensate sales
$
850

 
$
1,419

Natural-gas sales
366

 
641

Natural-gas liquids sales
178

 
232

Gathering, processing, and marketing sales
240

 
293

Gains (losses) on divestitures and other, net
40

 
(264
)
Total
1,674

 
2,321

Costs and Expenses
 
 
 
Oil and gas operating
208

 
296

Oil and gas transportation
242

 
305

Exploration
126

 
1,083

Gathering, processing, and marketing
215

 
254

General and administrative
449

 
307

Depreciation, depletion, and amortization
1,149

 
1,256

Other taxes
117

 
182

Impairments
16

 
2,783

Other operating expense
16

 
63

Total
2,538

 
6,529

Operating Income (Loss)
(864
)
 
(4,208
)
Other (Income) Expense
 
 
 
Interest expense
220

 
216

(Gains) losses on derivatives, net
297

 
152

Other (income) expense, net
—

 
47

Tronox-related contingent loss
—

 
5

Total
517

 
420

Income (Loss) Before Income Taxes
(1,381
)
 
(4,628
)
Income tax expense (benefit)
(383
)
 
(1,392
)
Net Income (Loss)
(998
)
 
(3,236
)
Net income (loss) attributable to noncontrolling interests
36

 
32

Net Income (Loss) Attributable to Common Stockholders
$
(1,034
)
 
$
(3,268
)
Per Common Share
 
 
 
Net income (loss) attributable to common stockholders—basic
$
(2.03
)
 
$
(6.45
)
Net income (loss) attributable to common stockholders—diluted
$
(2.03
)
 
$
(6.45
)
Average Number of Common Shares Outstanding—Basic
509

 
507

Average Number of Common Shares Outstanding—Diluted
509

 
507

 
 
 
 
Exploration Expense
 
 
 
Dry hole expense
$
11

 
$
29

Impairments of unproved properties
24

 
980

Geological and geophysical expense
37

 
22

Exploration overhead and other
54

 
52

Total
$
126

 
$
1,083



8

Anadarko Petroleum Corporation
(Unaudited)
 
Quarter Ended
Summary Financial Information
March 31,
millions
2016
 
2015
Cash Flows from Operating Activities
 
 
 
Net income (loss)
$
(998
)
 
$
(3,236
)
Adjustments to reconcile net income (loss) to net cash provided by (used in)
operating activities
 
 
 
Depreciation, depletion, and amortization
1,149

 
1,256

Deferred income taxes
(413
)
 
(1,198
)
Dry hole expense and impairments of unproved properties
35

 
1,009

Impairments
16

 
2,783

(Gains) losses on divestitures, net
(2
)
 
334

Total (gains) losses on derivatives, net
299

 
152

Operating portion of net cash received (paid) in settlement of derivative instruments
105

 
91

Other
115

 
45

Changes in assets and liabilities
 
 
 
Tronox-related contingent liability
—

 
(5,210
)
(Increase) decrease in accounts receivable
46

 
357

Increase (decrease) in accounts payable and accrued expenses
(403
)
 
(279
)
Other items, net
(86
)
 
(608
)
Net Cash Provided by (Used in) Operating Activities
$
(137
)
 
$
(4,504
)
 
 
 
 
Capital Expenditures
$
896

 
$
1,822

 
 
 
 
 
March 31,
 
December 31,
millions
 
 
 
 
2016
 
2015
Condensed Balance Sheets
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
$
2,947

 
$
939

Accounts receivable, net of allowance
 
 
 
 
2,392

 
2,469

Other current assets
 
 
 
 
428

 
573

Net properties and equipment
 
 
 
 
33,526

 
33,751

Other assets
 
 
 
 
2,304

 
2,268

Goodwill and other intangible assets
 
 
 
 
6,325

 
6,331

Total Assets
 
 
 
 
$
47,922

 
$
46,331

Short-term debt
 
 
 
 
3,025

 
32

Other current liabilities
 
 
 
 
3,632

 
4,148

Long-term debt
 
 
 
 
15,726

 
15,636

Deferred income taxes
 
 
 
 
4,940

 
5,400

Other long-term liabilities
 
 
 
 
5,898

 
5,658

Stockholders’ equity
 
 
 
 
11,686

 
12,819

Noncontrolling interests
 
 
 
 
3,015

 
2,638

Total Equity
 
 
 
 
$
14,701

 
$
15,457

Total Liabilities and Equity
 
 
 
 
$
47,922

 
$
46,331

Capitalization
 
 
 
 
 
 
 
Total debt
 
 
 
 
$
18,751

 
$
15,668

Total equity
 
 
 
 
14,701

 
15,457

Total
 
 
 
 
$
33,452

 
$
31,125

Capitalization Ratios
 
 
 
 
 
 
 
Total debt
 
 
 
 
56
%
 
50
%
Total equity
 
 
 
 
44
%
 
50
%


9

Anadarko Petroleum Corporation
(Unaudited)
Sales Volumes and Prices
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Daily Sales Volumes
 
Sales Volumes
 
Average Sales Price
 
Oil &
 
 
 
 
 
Oil &
 
 
 
 
 
Oil &
 
 
 
 
 
Condensate
 
Natural Gas
 
NGLs
 
Condensate
 
Natural Gas
 
NGLs
 
Condensate
 
Natural Gas
 
NGLs
 
MBbls/d
 
MMcf/d
 
MBbls/d
 
MMBbls
 
Bcf
 
MMBbls
 
Per Bbl
 
Per Mcf
 
Per Bbl
Quarter Ended March 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
232

 
2,303

 
122

 
21

 
210

 
11

 
$
28.04

 
$
1.75

 
$
14.98

Algeria
65

 
—

 
6

 
6

 
—

 
—

 
34.62

 
—

 
22.78

Other International
18

 
—

 
—

 
2

 
—

 
—

 
32.27

 
—

 
—

Total
315

 
2,303

 
128

 
29

 
210

 
11

 
$
29.65

 
$
1.75

 
$
15.32

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended March 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
237

 
2,738

 
136

 
22

 
246

 
12

 
$
44.19

 
$
2.60

 
$
17.29

Algeria
70

 
—

 
7

 
6

 
—

 
1

 
56.02

 
—

 
32.75

Other International
28

 
—

 
—

 
2

 
—

 
—

 
49.55

 
—

 
—

Total
335

 
2,738

 
143

 
30

 
246

 
13

 
$
47.12

 
$
2.60

 
$
18.00

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average Daily Sales Volumes
MBOE/d
 
Sales Volumes
MMBOE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended March 31, 2016
827
 
75
 
 
 
 
 
 
 
 
 
 
Quarter Ended March 31, 2015
934
 
84
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales Revenue and Commodity Derivatives
 
 
 
 
 
 
 
 
Sales
 
 
Net Cash Received (Paid) from Settlement of Commodity Derivatives
millions
Oil & Condensate
 
Natural Gas
 
NGLs
 
 
Oil & Condensate
 
Natural Gas
 
NGLs
Quarter Ended March 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
United States
$
591

 
$
366

 
$
167

 
 
$
88

 
$
13

 
$
2

Algeria
206

 
—

 
11

 
 
—

 
—

 
—

Other International
53

 
—

 
—

 
 
—

 
—

 
—

Total
$
850

 
$
366

 
$
178

 
 
$
88

 
$
13

 
$
2

 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended March 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
United States
$
940

 
$
641

 
$
213

 
 
$
2

 
$
73

 
$
15

Algeria
352

 
—

 
19

 
 
—

 
—

 
—

Other International
127

 
—

 
—

 
 
—

 
—

 
—

Total
$
1,419

 
$
641

 
$
232

 
 
$
2

 
$
73

 
$
15




10

Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of May 2, 2016
 
 
 
 
 
Note: Guidance excludes 2016 sales volumes associated with the East Chalk divestiture.
 
 
 
 
 
 
 
2nd-Qtr
 
Full-Year
 
 
Guidance (see Note)
 
Guidance (see Note)
 
 Units
 
 Units
 
 
 
 
 
 
 
 
 
Total Sales Volumes (MMBOE)
 
71

—

73

 
282

—

286

Total Sales Volumes (MBOE/d)
 
780

—

802

 
770

—

781

 
 
 
 
 
 
 
 
 
Oil (MBbl/d)
 
296

—

302

 
306

—

311

 
 
 
 
 
 
 
 
 
United States
 
219

—

222

 
222

—

225

Algeria
 
59

—

61

 
59

—

60

Ghana
 
18

—

19

 
25

—

26

 
 
 
 
 
 
 
 
 
Natural Gas (MMcf/d)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
 
2,140

—

2,180

 
2,060

—

2,080

 
 
 
 
 
 
 
 
 
Natural Gas Liquids (MBbl/d)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
 
123

—

127

 
117

—

120

Algeria
 
4

—

6

 
5

—

7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ / Unit
 
$ / Unit
Price Differentials vs NYMEX (w/o hedges)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Oil ($/Bbl)
 
(6.70
)
—

(2.20
)
 
(6.90
)
—

(2.40
)
 
 
 
 
 
 
 
 
 
United States
 
(8.00
)
—

(3.00
)
 
(8.00
)
—

(3.00
)
Algeria
 
(3.00
)
—

—

 
(4.00
)
—

(1.00
)
Ghana
 
(3.00
)
—

—

 
(4.00
)
—

(1.00
)
 
 
 
 
 
 
 
 
 
Natural Gas ($/Mcf)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States
 
(0.40
)
—

(0.15
)
 
(0.40
)
—

(0.20
)
 
 
 
 
 
 
 
 
 



11

Anadarko Petroleum Corporation
Financial and Operating External Guidance
As of May 2, 2016
 
 
 
 
 
Note: Guidance excludes items affecting comparability
 
 
 
 
 
 
 
2nd-Qtr
 
Full-Year
 
 
Guidance (see Note)
 
Guidance (see Note)
 
 
 $ MM
 
 $ MM
Other Revenues
 
 
 
 
 
 
 
 
Marketing and Gathering Margin
 
10

—

30

 
110

—

130

Minerals and Other
 
35

—

55

 
165

—

185

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ / BOE
 
$ / BOE
Costs and Expenses
 
 
 
 
 
 
 
 
Oil & Gas Direct Operating
 
3.05

—

3.20

 
3.10

—

3.30

Oil & Gas Transportation
 
3.30

—

3.50

 
3.40

—

3.60

Depreciation, Depletion, and Amortization
 
14.90

—

15.25

 
15.80

—

16.00

Production Taxes (% of Product Revenue)
 
8.0
%
—

9.0
%
 
8.0
%
—

9.0
%
 
 
 
 
 
 
 
 
 
 
 
$ MM
 
$ MM
 
 
 
 
 
 
 
 
 
General and Administrative (excludes restructuring charges)
 
245

—

265

 
950

—

1,000

Other Operating Expense
 
5

—

15

 
55

—

65

Exploration Expense
 
 
 
 
 
 
 
 
Non-Cash
 
40

—

60

 
350

—

450

Cash
 
65

—

85

 
280

—

300

Interest Expense (net)
 
215

—

230

 
880

—

900

Other (Income) Expense
 
35

—

45

 
150

—

175

 
 
 
 
 
 
 
 
 
Taxes
 
 
 
 
 
 
 
 
Algeria (100% current)
 
70
%
—

75
%
 
70
%
—

75
%
Rest of Company (10% Current for Q2 and Total Year)
 
35
%
—

45
%
 
30
%
—

40
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Avg. Shares Outstanding (MM)
 
 
 
 
 
 
 
 
Basic
 
509

—

510

 
509

—

510

Diluted
 
509

—

510

 
510

—

511

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital Investment (Excluding Western Gas Partners, LP)
$ MM
 
$ MM
 
 
 
 
 
 
 
 
 
APC Capital Expenditures
 
700

—

800

 
2,600

—

2,800

 
 
 
 
 
 
 
 
 



12

Anadarko Petroleum Corporation
Commodity Hedge Positions
As of May 2, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Price per barrel
 
 
 
Volume
(MBbls/d)
 
Floor Sold
 
Floor Purchased
 
Ceiling Sold
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

 
 
 
 
 
 
Interest-Rate Derivatives

As of May 2, 2016
 
 
 
 
 
 
Instrument
Notional Amt.
Reference Period
Mandatory
Termination Date
Rate Paid
Rate Received
Swap
$50 Million
Sept. 2016 – 2026
Sept. 2016
5.910%
3M LIBOR
Swap
$50 Million
Sept. 2016 – 2046
Sept. 2016
6.290%
3M LIBOR
Swap
$500 Million
Sept. 2016 – 2046
Sept. 2018
6.559%
3M LIBOR
Swap
$300 Million
Sept. 2016 – 2046
Sept. 2020
6.509%
3M LIBOR
Swap
$450 Million
Sept. 2017 – 2047
Sept. 2018
6.445%
3M LIBOR
Swap
$100 Million
Sept. 2017 – 2047
Sept. 2020
6.891%
3M LIBOR
Swap
$250 Million
Sept. 2017 – 2047
Sept. 2021
6.570%
3M LIBOR



13

Anadarko Petroleum Corporation
Reconciliation of Same-Store Sales

Average Daily Sales Volumes
 
Quarter Ended March 31, 2016
 
Quarter Ended March 31, 2015
 
Oil & Condensate MBbls/d
 
Natural Gas MMcf/d
 
NGLs MBbls/d
 
Total MBOE/d
 
Oil & Condensate MBbls/d
 
Natural Gas MMcf/d
 
NGLs MBbls/d
 
Total MBOE/d
U.S. Onshore
163

 
2,206

 
114

 
645

 
167

 
2,232

 
129

 
668

Deepwater Gulf of Mexico
58

 
85

 
7

 
79

 
46

 
221

 
6

 
89

International and Alaska
93

 
—

 
6

 
99

 
107

 
—

 
7

 
114

Same-Store Sales
314

 
2,291

 
127

 
823

 
320

 
2,453

 
142

 
871

Divestitures*
1

 
12

 
1

 
4

 
15

 
285

 
1

 
63

Total
315

 
2,303

 
128

 
827

 
335

 
2,738

 
143

 
934

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*
Includes East Chalk, EOR, Bossier, and Powder River Basin CBM. East Chalk was classified as held for sale at March 31, 2016, and closed in April 2016.

Average Daily Sales Volumes
 
 
 
Year Ended December 31, 2015
 
 
 
 
 
 
 
 
 
Oil & Condensate MBbls/d
 
Natural Gas MMcf/d
 
NGLs MBbls/d
 
Total MBOE/d
U.S. Onshore
 
 
 
 
 
 
 
 
165

 
2,003

 
116

 
615

Deepwater Gulf of Mexico
 
 
 
 
 
 
 
 
53

 
152

 
7

 
85

International and Alaska
 
 
 
 
 
 
 
 
94

 
—

 
6

 
100

Same-Store Sales

 

 

 

 
312

 
2,155

 
129

 
800

Divestitures*
 
 
 
 
 
 
 
 
5

 
179

 
1

 
36

Total

 

 

 

 
317

 
2,334

 
130

 
836

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*
Includes East Chalk, EOR, Bossier, and Powder River Basin CBM. East Chalk was classified as held for sale at March 31, 2016, and closed in April 2016.





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