Anadarko: Capital Spending at USD 7.2 Bilion to USD 7.6 Billion (USA)

February 20, 2013

Anadarko Petroleum Corporation announced details of its 2013 capital program and guidance, and provided additional information regarding its significant U.S. onshore growth opportunities, deepwater and international mega projects and industry-leading exploration program.

“With the outstanding momentum we established in 2012 and the opportunities our deep portfolio provides, we expect 2013 to be one of the best years in our company’s history,” Anadarko President and CEO Al Walker said. “Our 2013 capital investments will focus on projects that generate rates of return between 30 and more than 100 percent in the current commodity-price environment, while spending within cash flow. We expect to deliver sales-volumes growth of approximately five percent, with the year-over-year increase comprised almost entirely of higher-margin oil sales volumes. The projected increase in oil sales volumes will be largely driven by accelerated activity in our Wattenberg and Eagleford horizontal programs and the anticipated ramp up of oil volumes during the year at our El Merk facilities in Algeria.

“Accelerating value by advancing our high-margin deepwater and international oil and LNG (liquefied natural gas) mega projects remains a priority in 2013, and we expect to continue pursuing carry arrangements and opportunistic divestitures to further enhance the capital efficiency of our portfolio,” added Walker. “Following our highly successful 2012 exploration program where we nearly doubled our original targeted resources, we plan to be among the most active deepwater explorers in the world again in 2013. We expect to drill approximately 25 deepwater exploration and appraisal wells this year, including high-potential prospects in the Gulf of Mexico and three potentially play-opening international opportunities.”

2013 Capital Program and Expectations
Total 2013 capital investments are expected to be in the range of $7.2 to $7.6 billion. This range excludes capital investments associated with Western Gas Partners, LP (NYSE: WES), a separate, publicly traded entity controlled by Anadarko and included in its consolidated financial statements. An approximate breakout of Anadarko’s 2013 capital program is included below: