Anadarko Petroleum has ventured beyond its original area of operation -- the Anadarko Basin -- to explore for, develop, produce, and market oil, natural gas, natural gas liquids, and related products worldwide. In 2012 the large independent company reported proved reserves (90% of which is located in the US) of 2.6 billion barrels of oil equivalent. Additional assets include coal, trona (natural soda ash), and other minerals. Anadarko operates a handful of gas-gathering systems in the Mid-Continent. Internationally, the company has substantial oil and gas interests in Algeria. It also has holdings in Brazil, China, Indonesia, Mozambique, and West Africa.
Anadarko's assets include US onshore resource plays in the Rocky Mountains area, the southern US, and the Appalachian basin. It is one the largest independent producers in the deepwater Gulf of Mexico, and has production and exploration activities worldwide, including high-potential basins located in Alaska, Algeria, Brazil, China, Côte d'Ivoire, Ghana, Kenya, Liberia, Mozambique, New Zealand, Sierra Leone, and other countries.
In 2012 the US accounted for 74% of Anadarko's total revenues.
The company is engaged in oil and gas exploration and production (including gas, crude oil, condensate, and NGLs); the midstream activities of gathering, processing, treating, and transporting oil, naturalgas, and NGLs production; and the marketing of oil, natural gas, and NGLs in the US, and oil from Algeria, China, and Ghana.
Anadarko's revenues decreased by 4% in 2012 primarily due to lower average natural gas and NGLs prices.
However, net income increased by 190% in 2012 due to a decrease in oil and gas operating expenses primarily due to lower workover expenses associated with fewer workover projects, primarily in the Gulf of Mexico and the Rockies; and lower taxes decreased primarily related to lower Algerian exceptional profits taxes resulting from the resolution of the Algeria exceptional profits tax dispute. Another factor was a decrease in interest expense primarily related to higher construction-in-progress balances for long-term capital projects. Additionally, interest expense for 2012 decreased as a result of interest incurred during 2011 related to the company's capital lease obligations for a floating production, storage, and offloading vessel (FPSO) for the company's Jubilee field operations in Ghana.
In 2012 the company resolved a tax dispute with the Algerian government, allowing it to resume full operations in Algeria. (Algeria accounted for 15% of Anadarko's total revenues in 2012).
Anadarko explores in high-potential, proven, and emerging basins worldwide. Developing a portfolio of primarily unconventional resources provides the company with a stable base of capital-efficient, predictable, and repeatable development opportunities.
Taking advantage of a low-priced assets, in 2011 Anadarko and Newfield Exploration bought properties in the Maverick Basin in Texas for $310 million from bankrupt TXCO. All told, Anadarko added a total of 392 million barrels of oil equivalent reserves in 2011.
To raise cash to help it exploit its US shale assets (a growth segment), in 2011 the company closed a joint venture deal with Korea National Oil (KNOC) under which KNOC agreed to pay $1.6 billion over several years for one-third of Anadarko's holdings in the lucrative Eagle Ford shale play in South Texas. In 2012 it also gained $433 million on divestitures related to US oil and gas properties and reported net losses on divestitures of $43 million related to oil and gas properties in Indonesia.