Anadarko Announces Third-Quarter Results

Achieves Record Quarterly Sales Volumes and Raises Full-Year Sales-Volumes Guidance

HOUSTON--(BUSINESS WIRE)--Nov. 2, 2009-- Anadarko Petroleum Corporation (NYSE:APC) today announced third-quarter 2009 net income from continuing operations attributable to common stockholders totaled $200 million, or $0.40 per share (diluted). These results include certain items typically excluded by the investment community in published estimates. In total, these items increased net income by approximately $251 million, or $0.51 per share (diluted) on an after-tax basis.(1) Cash flow from continuing operations in the third quarter of 2009 totaled slightly more than $1 billion, and discretionary cash flow totaled approximately $1.26 billion.(2)

THIRD-QUARTER 2009 HIGHLIGHTS

Achieved record quarterly sales volumes (from retained properties), a 12-percent increase over third-quarter 2008
Reduced lease operating expense (LOE) per barrel of oil equivalent (BOE) by 9 percent sequentially over the second-quarter 2009, and by 15 percent year-to-date over the comparable nine-month period in 2008
Announced deepwater drilling successes in the Gulf of Mexico and West Africa
Received Ghanaian government approval for the Jubilee field Phase I development plan
"The positive third-quarter results continue to demonstrate the value of Anadarko's portfolio, with strong performance from both our producing assets and deepwater exploration program," Anadarko Chairman and CEO Jim Hackett said. "Our exploration, drilling and operations teams continued to perform very well in achieving record sales volumes, lower costs, increased efficiencies and differentiating deepwater drilling success."

Third-quarter 2009 sales volumes of natural gas, crude oil and natural gas liquids totaled 57 million BOE, or 616,000 BOE per day, comprised of natural gas sales volumes that averaged 2.144 billion cubic feet per day, oil sales volumes that averaged 205,000 barrels per day and natural gas liquids sales volumes that averaged 54,000 barrels per day.

"As a result of both improved operating performance and the absence of severe weather in the Gulf of Mexico, we expect our full-year sales volumes to be approximately 220 million BOE, up from our original midpoint of 210 million BOE at the beginning of the year, without increasing capital spending," continued Hackett. "This equates to a forecasted growth rate of approximately 7 percent over our 2008 total sales volumes of 206 million BOE, while spending approximately 35 percent less capital on near-term projects."

In July, Anadarko announced the Vito exploration well in the deepwater Gulf of Mexico encountered more than 250 net feet of oil pay in Miocene sands. This success was followed by the announcement of the Venus discovery offshore Sierra Leone in September. The results of the Venus well confirmed the existence of an active petroleum system in this frontier basin, thereby enhancing the prospectivity of the company's approximately 8 million gross acres offshore West Africa.

Anadarko also continued to make significant progress on its mega projects in West Africa and in the Gulf of Mexico. Offshore Ghana, Anadarko and its partners successfully drilled the Mahogany-4 appraisal well. The well, which was located outside the

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