MARKETING ACTIVITIESThe Company’s m

MARKETING ACTIVITIES
The Company’s marketing segment actively manages Anadarko’s natural-gas, oil, condensate, and NGLs sales,
as well as the Company’s anticipated LNG sales. In marketing its production, the Company attempts to minimize
market-related shut-ins, maximize realized prices, and manage credit-risk exposure. The Company’s sales of natural
gas, oil, condensate, and NGLs are generally made at market prices for those products at the time of sale. The Company
also purchases natural gas, oil, condensate, and NGLs from third parties, primarily near Anadarko’s production areas,
to aggregate volumes so that the Company is positioned to fully use transportation, storage and fractionation capacity,
facilitate efforts to maximize prices received, and minimize balancing issues with customers and pipelines during
operational disruptions.
The Company sells its products under a variety of contract structures including indexed, fixed-price, and costescalation-based
agreements. The Company also engages in limited trading activities for the purpose of generating
profits from exposure to changes in market prices of natural gas, oil, condensate, and NGLs. The Company does not
engage in market-making practices and limits its marketing activities to natural-gas, oil, NGLs, and LNG commodity
contracts. The Company’s marketing-risk position is typically a net short position (reflecting agreements to sell natural
gas, oil, and NGLs in the future for specific prices) that is offset by the Company’s natural long position as a producer
(reflecting ownership of underlying natural-gas and oil reserves). See Commodity-Price Risk under Item 7A of this
Form 10-K.