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Anadarko Announces Third-Quarter 2017 Results

HOUSTON, Oct. 31, 2017 /PRNewswire/ -- Anadarko Petroleum Corporation (NYSE: APC) today announced its third-quarter 2017 results, reporting a net loss attributable to common stockholders of $699 million, or $1.27 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items increased the net loss by $272 million, or $0.50 per share (diluted), on an after-tax basis.(1) Net cash provided by operating activities in the third quarter of 2017 was $639 million.

RECENT HIGHLIGHTS

  • Announced a $2.5 billion share-repurchase program and entered into an accelerated share repurchase (ASR) agreement to execute upon the first $1.0 billion by year end
  • Achieved double-digit oil-volume growth over second-quarter 2017 in the Delaware Basin, DJ Basin and deepwater Gulf of Mexico assets
  • Improved oil production mix to 57 percent versus 42 percent in the third quarter of 2016, significantly improving margins per barrel
  • Entered into an agreement to sell the company's Moxa asset in southwest Wyoming for approximately $350 million
  • Received clarity on the Ghana maritime boundary, enabling additional high-margin oil development, and completed the foundational Legal and Contractual Framework for the Mozambique LNG project

"I am very proud of the efforts exhibited by our people and the results achieved in the face of an unusually active hurricane season in the Gulf of Mexico and a continuing volatile commodity environment," said Al Walker, Anadarko Chairman, President and CEO. "We have made significant progress in shifting our production mix toward higher-value oil, which has improved our margins per barrel(2) by about 34 percent year over year. We expect to improve our margins further as we finalize the sale of our Moxa gas asset, continue focusing investments in our high-quality oil plays, and drive greater efficiencies into the system. Although we have adjusted our full-year sales-volume guidance to reflect the impacts of hurricanes Harvey, Irma and Nate, as well as the sale of our Moxa asset, we still expect to exit 2017 with production rates of approximately 150,000 barrels of oil per day combined from the Delaware and DJ basins, and more than 130,000 barrels of oil per day from the deepwater Gulf of Mexico.

"Looking to 2018, we will continue to demonstrate financial discipline as a foundational principle," added Walker. "We will remain focused on returns by continuing to allocate upstream capital toward the higher-margin assets in our portfolio, which should generate substantial free cash flow in a $50 oil-price environment, with total capital spending, including Anadarko midstream spending on infrastructure in the Delaware Basin, inside of discretionary cash flow from operations."

OPERATIONAL HIGHLIGHTS

Anadarko's third-quarter 2017 sales volume of oil, natural gas and natural gas liquids (NGLs) totaled 58 million barrels of oil equivalent (BOE), or an average of 626,000 BOE per day.

In the Delaware Basin, Anadarko remains on track to achieve its expected exit rate of approximately 50,000 barrels of oil per day (BOPD). In the third quarter, the company achieved a new oil sales-volume record of 44,500 BOPD, while averaging 37,000 BOPD - a 13-percent increase over the second quarter of 2017. Anadarko averaged 16 rigs and six completions crews in the basin during the quarter, as it continued to focus on capturing operatorship over approximately 70 percent of its gross acreage position. Anadarko also made significant progress in applying its proven development model to the Delaware Basin, which includes building gathering and processing infrastructure to enable future growth and expanding takeaway capacity.

Anadarko also has a clear line of sight to reaching its expected exit rate of about 100,000 BOPD in the DJ Basin, where in the third quarter it achieved an oil production record of more than 90,000 BOPD, while averaging 83,000 BOPD, representing a 10-percent increase over the prior quarter. The company averaged six operated rigs and four completions crews in the basin during the quarter. The number of wells turned to sales increased by 70 percent versus the second-quarter 2017. The company continues to see strong results from its new completion design, which has been applied to more than 70 wells, the majority of which have been producing more than 150 days. These wells are demonstrating a cumulative oil uplift of more than 40 percent when compared to the previous design.

In the deepwater Gulf of Mexico, the company increased oil production by more than 10 percent relative to the second quarter of 2017, averaging 126,000 BOPD during the quarter. Production of approximately 840,000 BOE was deferred during the quarter as a result of hurricanes Harvey and Irma. The company's hub-and-spoke infrastructure continues to deliver significant value with new tiebacks at Horn Mountain and Marlin. Anadarko also added new tieback opportunities as the apparent high bidder on 10 blocks in the most recent Gulf of Mexico lease sale.

International and Alaska sales volume averaged 102,000 barrels per day, slightly less than the prior quarter due to the timing of liftings in Algeria. The International Tribunal for the Law of the Sea (ITLOS) has defined the border between Ghana and Côte d'Ivoire, which enables continued development in the TEN field. In addition, the partnership received approval from the Ghanaian government for the Jubilee full-field plan of development earlier this month, with drilling operations expected to commence in 2018. Anadarko also is continuing to generate substantial momentum with its Mozambique LNG project, having finalized the "marine concession" agreements with the Government of Mozambique during the quarter. These agreements marked the completion of the foundational Legal and Contractual Framework. Subsequent to quarter end, Anadarko also reached a 20-year Sale and Purchase Agreement (SPA) for 2.6 million tonnes of LNG per annum with PTT Public Company Limited of Thailand. The SPA is pending approval by the Government of Thailand.

OPERATIONS REPORT

For additional details on Anadarko's third-quarter 2017 operations and exploration program, please refer to the comprehensive Operations Report available at www.anadarko.com.

FINANCIAL SUMMARY

Anadarko ended the third quarter of 2017 with $5.25 billion of cash on hand. In September, the company announced a $2.5 billion share-repurchase program, which is authorized to extend through the end of 2018. Subsequently, Anadarko entered into an ASR agreement to complete the repurchase of $1.0 billion of shares prior to the end of 2017. In October, Anadarko entered into a definitive agreement to sell its Moxa asset in southwest Wyoming for approximately $350 million.

CONFERENCE CALL TOMORROW AT 8:00 A.M. CDT, 9:00 A.M. EDT

Anadarko will host a conference call on Wednesday, Nov. 1, 2017, at 8 a.m. Central (9 a.m. Eastern) to discuss third-quarter results. The dial-in number is 877.883.0383 in the U.S. or 412.902.6506 internationally. The confirmation number is 2812178. 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

Ten 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 Adjusted EBITDAX (Margin) table for a reconciliation of GAAP to the non-GAAP financial measure and a statement indicating why management believes the non-GAAP financial measure provides useful information for investors.

Logo - http://photos.prnewswire.com/prnh/20141103/156201LOGO

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 2016, the company had 1.72 billion barrels-equivalent of proved reserves, making it one of the world's largest independent exploration and production companies. For more information about Anadarko and APC Flash Feed updates, please visit www.anadarko.com.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Anadarko believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release, including Anadarko's ability to realize its expectations regarding performance; to successfully execute upon its capital program; to efficiently identify and deploy capital resources; to finalize the capital program for 2018; to meet financial and operating guidance and achieve the production levels identified in this news release; to meet the long-term goals identified in this news release; to consummate the transactions described in this release; to successfully complete the share-repurchase program; to successfully drill, complete, test and produce the wells identified in this news release; to timely complete and commercially operate the projects, infrastructure and drilling prospects identified in this news release; to finalize the necessary steps to ensure operatorship; and to successfully plan, secure additional government approvals, enter into long-term sales contracts, finance, build, and operate the necessary infrastructure and LNG park in Mozambique. See "Risk Factors" in the company's 2016 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:
Robin Fielder, robin.fielder@anadarko.com, 832.636.1462
Andy Taylor, andy.taylor@anadarko.com, 832.636.3089
Pete Zagrzecki, pete.zagrzecki@anadarko.com, 832.636.7727

Anadarko Petroleum Corporation

Reconciliation of GAAP to Non-GAAP Financial Measures


Below are reconciliations of certain GAAP to non-GAAP financial measures, each as required under Regulation G of the Securities Exchange Act of 1934. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. The non-GAAP financial information presented may be determined or calculated differently by other companies and may not be comparable to similarly titled measures.


Management uses adjusted net income (loss) to evaluate operating and financial performance and believes the measure is useful to investors because it eliminates the impact of certain noncash and/or other items that management does not consider to be indicative of the Company's performance from period to period. Management also believes this non-GAAP measure is useful to investors to evaluate and compare the Company's operating and financial performance across periods, as well as facilitating comparisons to others in the Company's industry.




Quarter Ended September 30, 2017



Before


After


Per Share

millions except per-share amounts


Tax


Tax


(diluted)

Net income (loss) attributable to common stockholders (GAAP)




$

(699)



$

(1.27)


Adjustments for certain items affecting comparability







Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives*


$

(98)



(62)



(0.11)


Gains (losses) on divestitures, net


(194)



(123)



(0.23)


Impairments - exploration assets


(106)



(82)



(0.15)


Change in uncertain tax positions




(5)



(0.01)


Certain items affecting comparability


$

(398)



(272)



(0.50)


Adjusted net income (loss) (Non-GAAP)




$

(427)



$

(0.77)




*

Includes $(39) million related to interest-rate derivatives and $(59) million related to commodity derivatives.



Quarter Ended September 30, 2016



Before


After


Per Share

millions except per-share amounts


Tax


Tax


(diluted)

Net income (loss) attributable to common stockholders (GAAP)




$

(830)



$

(1.61)


Adjustments for certain items affecting comparability







Total gains (losses) on derivatives, net, less net cash from settlement of commodity derivatives*


$

(88)



(56)



(0.11)


Gains (losses) on divestitures, net


(414)



(261)



(0.51)


Impairments - producing properties


(27)



(17)



(0.03)


Restructuring charges


(112)



(71)



(0.14)


Tax indemnification


39



25



0.05


Change in uncertain tax positions




9



0.02


Certain items affecting comparability


$

(602)



(371)



(0.72)


Adjusted net income (loss) (Non-GAAP)




$

(459)



$

(0.89)




*

Includes $(84) million related to interest-rate derivatives and $(4) million related to commodity derivatives.

Anadarko Petroleum Corporation

Reconciliation of GAAP to Non-GAAP Measures


Management believes that the presentation of Adjusted EBITDAX (Margin) provides information useful in assessing the Company's operating and financial performance across periods.



Quarter Ended
September 30,

millions

2017


2016

Net income (loss) attributable to common stockholders (GAAP)

$

(699)



$

(830)


Interest expense

230



220


Income tax expense (benefit)

(425)



(260)


DD&A

1,083



1,069


Exploration expense

751



304


(Gains) losses on divestitures, net

194



414


Impairments



27


Total (gains) losses on derivatives, net, less net cash from settlement of commodity derivatives

98



88


Restructuring charges

3



112


Consolidated Adjusted EBITDAX (Margin) (Non-GAAP)

$

1,235



$

1,144


Total barrels of oil equivalent (BOE)

58



72


Consolidated Adjusted EBITDAX (Margin) per BOE

$

21.29



$

15.89


Management uses net debt to determine the Company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. Management believes that using net debt in the capitalization ratio is useful to investors in determining the Company's leverage since the Company could choose to use its cash and cash equivalents to retire debt. In addition, management believes that presenting Anadarko's net debt excluding WGP is useful because WGP is a separate public company with its own capital structure.




September 30, 2017








Anadarko




Anadarko


WGP*


excluding

millions



Consolidated


Consolidated


WGP

Total debt (GAAP)



$

15,573



$

3,372



$

12,201


Less cash and cash equivalents



5,251



153



5,098


Net debt (Non-GAAP)



$

10,322



$

3,219



$

7,103

















Anadarko






Anadarko


excluding

millions





Consolidated


WGP

Net debt





$

10,322



$

7,103


Total equity





13,922



10,782


Adjusted capitalization





$

24,244



$

17,885


Net debt to adjusted capitalization ratio








43%




40%




*

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

Anadarko Petroleum Corporation

Cash Flow Information

(Unaudited)



Quarter Ended


Nine Months Ended


September 30,


September 30,

millions

2017


2016


2017


2016

Cash Flows from Operating Activities








Net income (loss)

$

(641)



$

(747)



$

(1,250)



$

(2,356)


Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities








Depreciation, depletion, and amortization

1,083



1,069



3,235



3,202


Deferred income taxes

(854)



(301)



(1,026)



(1,121)


Dry hole expense and impairments of unproved properties

678



255



2,144



300


Impairments



27



383



61


(Gains) losses on divestitures, net

194



414



(815)



516


Loss on early extinguishment of debt





2



124


Total (gains) losses on derivatives, net

82



24



(33)



634


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

16



64



21



229


Other

68



53



225



256


Changes in assets and liabilities

13



(73)



(267)



32


Net Cash Provided by (Used in) Operating Activities*

$

639



$

785



$

2,619



$

1,877


Net Cash Provided by (Used in) Investing Activities

$

(1,242)



$

(291)



$

(26)



$

(1,256)


Net Cash Provided by (Used in) Financing Activities

$

(155)



$

2,092



$

(527)



$

2,421










Capital Expenditures








Exploration and production and other

$

976



$

586



$

2,877



$

1,921


Midstream - Anadarko**

131



16



258



45


Midstream - WES

224



95



661



355


Total

1,331



697



3,796



2,321




*

Restructuring charges (excluding noncash share-based compensation) were $3 million for the quarter ended September 30, 2017, $110 million for the quarter ended September 30, 2016, $20 million for the nine months ended September 30, 2017, and $334 million for the nine months ended September 30, 2016. Cash payments for restructuring charges were $2 million for the quarter ended September 30, 2017, $35 million for the quarter ended September 30, 2016, $52 million for the nine months ended September 30, 2017, and $217 million for the nine months ended September 30, 2016.

**

Excludes Western Gas Partners, LP (WES).

Anadarko Petroleum Corporation

(Unaudited)



Quarter Ended


Nine Months Ended

Summary Financial Information

September 30,


September 30,

millions except per-share amounts

2017


2016


2017


2016

Consolidated Statements of Income








Revenues and Other








Oil sales

$

1,567



$

1,239



$

4,652



$

3,214


Natural-gas sales

269



435



1,090



1,121


Natural-gas liquids sales

265



227



768



640


Gathering, processing, and marketing sales

509



350



1,417



895


Gains (losses) on divestitures and other, net

(114)



(358)



1,052



(388)


Total

2,496



1,893



8,979



5,482


Costs and Expenses








Oil and gas operating

257



198



748



608


Oil and gas transportation

220



256



698



744


Exploration

751



304



2,371



506


Gathering, processing, and marketing

398



291



1,108



758


General and administrative

280



362



840



1,116


Depreciation, depletion, and amortization

1,083



1,069



3,235



3,202


Production, property, and other taxes

159



148



449



422


Impairments



27



383



61


Other operating expense

123



31



157



54


Total

3,271



2,686



9,989



7,471


Operating Income (Loss)

(775)



(793)



(1,010)



(1,989)


Other (Income) Expense








Interest expense

230



220



680



657


Loss on early extinguishment of debt





2



124


(Gains) losses on derivatives, net

82



25



(33)



629


Other (income) expense, net

(21)



(31)



(43)



(86)


Total

291



214



606



1,324


Income (Loss) Before Income Taxes

(1,066)



(1,007)



(1,616)



(3,313)


Income tax expense (benefit)

(425)



(260)



(366)



(957)


Net Income (Loss)

(641)



(747)



(1,250)



(2,356)


Net income (loss) attributable to noncontrolling interests

58



83



182



200


Net Income (Loss) Attributable to Common Stockholders

$

(699)



$

(830)



$

(1,432)



$

(2,556)


Per Common Share








Net income (loss) attributable to common stockholders—basic

$

(1.27)



$

(1.61)



$

(2.60)



$

(5.00)


Net income (loss) attributable to common stockholders—diluted

$

(1.27)



$

(1.61)



$

(2.61)



$

(5.00)


Average Number of Common Shares Outstanding—Basic

553



517



552



512


Average Number of Common Shares Outstanding—Diluted

553



517



552



512










Exploration Expense








Dry hole expense

$

565



$

203



$

1,408



$

209


Impairments of unproved properties

113



52



736



91


Geological and geophysical, exploration overhead, and other expense

73



49



227



206


Total

751



304



2,371



506


Anadarko Petroleum Corporation

(Unaudited)







September 30,


December 31,

millions





2017


2016

Condensed Balance Sheets








Cash and cash equivalents





$

5,251



$

3,184


Accounts receivable, net of allowance





1,882



1,728


Other current assets





340



354


Net properties and equipment





27,832



32,168


Other assets





2,152



2,226


Goodwill and other intangible assets





5,671



5,904


Total Assets





$

43,128



$

45,564


Short-term debt





149



42


Other current liabilities





3,534



3,286


Long-term debt





15,424



15,281


Deferred income taxes





3,378



4,324


Asset retirement obligations





2,747



2,802


Other long-term liabilities





3,974



4,332


Common stock





57



57


Paid-in capital





11,972



11,875


Retained earnings





160



1,704


Treasury stock





(1,070)



(1,033)


Accumulated other comprehensive income (loss)





(337)



(391)


Total stockholders' equity





10,782



12,212


Noncontrolling interests





3,140



3,285


Total Equity





13,922



15,497


Total Liabilities and Equity





$

43,128



$

45,564


Capitalization








Total debt





$

15,573



$

15,323


Total equity





13,922



15,497


Total





$

29,495



$

30,820


Capitalization Ratios










Total debt






53%




50%


Total equity






47%




50%


Anadarko Petroleum Corporation

(Unaudited)


Sales Volumes and Prices



















Average Daily Sales Volumes


Sales Volumes


Average Sales Price


Oil


Natural Gas


NGLs


Oil


Natural Gas


NGLs


Oil


Natural Gas


NGLs


MBbls/d


MMcf/d


MBbls/d


MMBbls


Bcf


MMBbls


Per Bbl


Per Mcf


Per Bbl

Quarter Ended September 30, 2017


















United States

266



1,086



88



25



100



9



$

46.89



$

2.69



$

31.07


Algeria

60





4



6







52.91





32.98


Other International

27







2







51.95






Total

353



1,086



92



33



100



9



$

48.31



$

2.69



$

31.15




















Quarter Ended September 30, 2016


















United States

233



2,003



122



22



184



11



$

41.29



$

2.36



$

18.87


Algeria

65





7



7







45.88





23.74


Other International

19







1







45.61






Total

317



2,003



129



30



184



11



$

42.49



$

2.36



$

19.13




















Nine Months Ended September 30, 2017


















United States

259



1,392



96



71



380



27



$

47.63



$

2.87



$

27.43


Algeria

63





5



18





1



51.54





34.02


Other International

28







7







51.70






Total

350



1,392



101



96



380



28



$

48.66



$

2.87



$

27.77




















Nine Months Ended September 30, 2016


















United States

230



2,164



124



63



593



34



$

36.52



$

1.89



$

17.78


Algeria

63





6



18





1



42.27





23.55


Other International

16







4







40.80






Total

309



2,164



130



85



593



35



$

37.91



$

1.89



$

18.04







































Average Daily Sales Volumes

MBOE/d


Sales Volumes

MMBOE





























Quarter Ended September 30, 2017

626


58











Quarter Ended September 30, 2016

780


72





























Nine Months Ended September 30, 2017

683


187











Nine Months Ended September 30, 2016

800


219





























Sales Revenue and Commodity Derivatives









Sales



Net Cash Received (Paid) from Settlement of Commodity
Derivatives

millions

Oil


Natural Gas


NGLs



Oil


Natural Gas


NGLs

Quarter Ended September 30, 2017













United States

$

1,145



$

269



$

253




$

12



$

4



$


Algeria

291





12









Other International

131













Total

$

1,567



$

269



$

265




$

12



$

4



$















Quarter Ended September 30, 2016













United States

$

884



$

435



$

212




$

66



$

(2)



$

(1)


Algeria

276





15









Other International

79













Total

$

1,239



$

435



$

227




$

66



$

(2)



$

(1)















Nine Months Ended September 30, 2017















United States

$

3,368



$

1,090



$

720




$

27



$

(1)



$

(3)


Algeria

885





48









Other International

399













Total

$

4,652



$

1,090



$

768




$

27



$

(1)



$

(3)















Nine Months Ended September 30, 2016















United States

$

2,305



$

1,121



$

602




$

214



$

13



$

(1)


Algeria

734





38









Other International

175













Total

$

3,214



$

1,121



$

640




$

214



$

13



$

(1)


Anadarko Petroleum Corporation

Financial and Operating External Guidance

As of October 31, 2017






Note: Guidance excludes 2017 sales volumes associated with the Eagleford, Marcellus, West Chalk/Eaglebine, Utah CBM and Moxa divestitures.








4th-Qtr


Full-Year



Guidance (see Note)


Guidance (see Note)


Units


Units










Total Sales Volumes (MMBOE)


56



58



224



228


Total Sales Volumes (MBOE/d)


609



630



614



625











Oil (MBbl/d)


357



364



343



348











United States


279



283



257



260


Algeria


51



53



59



60


Ghana


27



28



27



28











Natural Gas (MMcf/d)


















United States


1,000



1,035



1,065



1,085











Natural Gas Liquids (MBbl/d)


















United States


84



88



87



90


Algeria


2



4



5



6






















$ / Unit


$ / Unit

Price Differentials vs NYMEX (w/o hedges)


















Oil ($/Bbl)


(1.50)



2.50



(2.75)



1.25











United States


(2.00)



2.00



(3.00)



1.00


Algeria




4.00



(2.00)



2.00


Ghana




4.00



(2.00)



2.00











Natural Gas ($/Mcf)


















United States


(0.40)



(0.20)



(0.35)



0.25











Anadarko Petroleum Corporation

Financial and Operating External Guidance

As of October 31, 2017






Note: Guidance excludes items affecting comparability.








4th-Qtr


Full-Year



Guidance (see Note)


Guidance (see Note)



$ MM


$ MM

Other Revenues









Marketing and Gathering Margin


100



110



410



420


Minerals and Other


45



65



280



300






















$ / BOE


$ / BOE

Costs and Expenses









Oil & Gas Direct Operating


4.40



4.65



3.95



4.30


Oil & Gas Transportation


3.50



3.70



3.60



3.80


Depreciation, Depletion, and Amortization


19.00



19.20



17.75



17.85


Production Taxes (% of Product Revenue)


6.0%



7.0%



6.0%



7.0%













$ MM


$ MM










General and Administrative


240



260



1,060



1,080


Other Operating Expense


30



50



185



205


Exploration Expense









Non-Cash


10



40



1,445



1,475


Cash


65



85



280



300


Interest Expense (net)


220



235



900



915


Other (Income) Expense


(25)



(15)



(65)



(55)











Taxes









Algeria (100% Current)


60%



70%



60%



70%


Rest of Company (60% Current/40% Deferred for Q4 and (50)% Current/150% Deferred for Total Year)


30%



40%



30%



40%











Noncontrolling Interest


50



60



230



240




















Avg. Shares Outstanding (MM)









Basic


534



538



548



549


Diluted


534



538



548



549




















Capital Investment (Excluding Western Gas Partners, LP)

$ MM


$ MM










APC Capital Expenditures


1,065



1,265



4,200



4,400











Anadarko Petroleum Corporation

Commodity Hedge Positions

As of October 31, 2017
















Weighted Average Price per barrel




Volume

(MBbls/d)


Floor Sold


Floor Purchased


Ceiling Sold

Oil









Three-Way Collars








2017









WTI


68

$

40.00

$

50.00

$

58.84


Brent


23

$

40.00

$

50.00

$

62.64




91

$

40.00

$

50.00

$

59.80










Volume


Weighted Average Price per MMBtu




(thousand










MMBtu/d)


Floor Sold


Floor Purchased


Ceiling Sold

Natural Gas









Three-Way Collars








2017



857

$

2.10

$

2.85

$

3.64











2018



250

$

2.00

$

2.75

$

3.54


















Interest-Rate Derivatives

As of October 31, 2017







Instrument

Notional Amt.

Reference Period

Mandatory

Termination Date

Rate Paid

Rate Received

Swap

$550 Million

Sept. 2016 – 2046

Sept. 2020

6.418%

3M LIBOR

Swap

$250 Million

Sept. 2016 – 2046

Sept. 2022

6.809%

3M LIBOR

Swap

$200 Million

Sept. 2017 – 2047

Sept. 2018

6.049%

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

Swap

$250 Million

Sept. 2017 – 2047

Sept. 2023

6.761%

3M LIBOR

Anadarko Petroleum Corporation

Reconciliation of Same-Store Sales


Average Daily Sales Volumes


Quarter Ended September 30, 2017


Quarter Ended September 30, 2016


Oil

MBbls/d


Natural Gas
MMcf/d


NGLs
MBbls/d


Total
MBOE/d


Oil

MBbls/d


Natural Gas
MMcf/d


NGLs
MBbls/d


Total
MBOE/d

U.S. Onshore

129



980



78



370



126



1,034



78



376


Gulf of Mexico

126



106



10



154



65



77



6



84


International and Alaska

98





4



102



93





7



100


Same-Store Sales

353



1,086



92



626



284



1,111



91



560


Divestitures*









33



892



38



220


Total

353



1,086



92



626



317



2,003



129



780







Nine Months Ended September 30, 2017


Nine Months Ended September 30, 2016


Oil

MBbls/d


Natural Gas
MMcf/d


NGLs
MBbls/d


Total
MBOE/d


Oil

MBbls/d


Natural Gas
MMcf/d


NGLs
MBbls/d


Total
MBOE/d

U.S. Onshore

120



1,042



81



374



124



1,074



76



379


Gulf of Mexico

121



118



10



151



59



78



6



78


International and Alaska

102





5



107



89





6



95


Same-Store Sales

343



1,160



96



632



272



1,152



88



552


Divestitures*

7



232



5



51



37



1,012



42



248


Total

350



1,392



101



683



309



2,164



130



800




















*

Includes Eagleford, Marcellus, Eaglebine, Utah CBM, East Chalk, Wamsutter, Ozona, Elm Grove, Hugoton, Hearne, and Carthage.

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SOURCE Anadarko Petroleum Corporation