Preserving Value & Positioning for the Future John Colglazier - - PowerPoint PPT Presentation

INVESTOR RELATIONS

John Colglazier Senior Vice President 832/636-2306 Robin Fielder Director 832/636-1462 Jeremy Smith Director 832/636-1544

NYSE: APC | www.anadarko.com

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

John Colglazier

Preserving Value & Positioning for the Future

2015 Anadarko Investor Conference Call

March 3, 2015

WATTENBERG FIELD, COLORADO

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NYSE: APC | www.anadarko.com

2

Agenda

Presenter Title

Strategic Overview Al Walker Chairman, President and CEO Financial Discipline Bob Gwin EVP, Finance and CFO U.S. Onshore Chuck Meloy EVP, U.S. Onshore Exploration and Production International & Deepwater Operations Jim Kleckner EVP, International and Deepwater Operations International & Deepwater Exploration Bob Daniels EVP, International and Deepwater Exploration Closing Remarks Al Walker Chairman, President and CEO Q&A All

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Regarding Forward-Looking Statements and Other Matters

Cautionary Language

3 This presentation 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 presentation, including Anadarko’s ability to meet financial and operating guidance, achieve its production targets, successfully manage its capital expenditures, consummate the transaction described in this presentation, timely complete and commercially operate the projects and drilling prospects identified in this presentation, achieve production and budget expectations on its mega projects, and successfully plan, secure necessary government approvals, finance, build, and

• perate the necessary infrastructure and LNG park. See “Risk Factors” in the company’s 2014 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and
• ther public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.

Please also see our website at www.anadarko.com under “Investor Relations” for reconciliations of the differences between any non-GAAP measure used in this presentation, the appendix slides or the most directly comparable GAAP financial measures. Also on our website at www.anadarko.com is a glossary of terms. Cautionary Note to Investors - The U.S. Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC’s definitions for such terms. We may use terms in this presentation, such as “resources,” “net resources,” “net discovered resources,” “gross resource,” “estimated recoverable resources,” “discovered resource opportunity,” “relative net resources,” “net resource potential,” and similar terms that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the oil and gas disclosures in our Form 10-K for the year ended December 31, 2014, File No. 001-08968, available from us at www.anadarko.com or by writing us at: Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The Woodlands, Texas 77380 Attn: Investor Relations. You can also obtain this form from the SEC by calling 1-800-SEC-0330.

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INVESTOR RELATIONS

John Colglazier Senior Vice President 832/636-2306 Robin Fielder Director 832/636-1462 Jeremy Smith Director 832/636-1544

Al Walker

Preserving Value & Positioning for the Future

LUCIUS SPAR, GULF OF MEXICO

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

NYSE: APC | www.anadarko.com

Proven Successful Track Record Deep and Balanced Portfolio Best-in-Class Capital Allocation Distinct Competitive Advantages Active Portfolio Management

Differentiating Performance

5

Production Exploration

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Differentiating 5-Year Track Record

6

Divestiture-Adjusted Sales-Volume Growth

8+%

Reserve Replacement

160+%

~4 BBOE

Net Discovered Resources

~65%

Deepwater Exploration/Appraisal Success Adjusted Free Cash Flow

$4.5+ Billion ~$15/BOE

F&D

~$12.5 Billion Asset Monetizations 160+%

Reserve Replacement

Note: See appendix slides for definitions/reconciliations of non-GAAP financial measures

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Top-Tier U.S. Onshore Activation Costs: ~$35,000 per Flowing Barrel Visible Pipeline of High-Impact Mega Projects Exploration Optionality

Differentiating Depth & Quality

7

* Maintenance capital is defined as capital investments necessary to keep current-year sales volumes flat to previous year Shales Mozambique GNB Other U.S. Wattenberg GOM Other Int'l Relative Net Resources

8+ BBOE Lower-Risk Resources Provide Predictability

$2.0 $2.2 $2.5 $2.9 $2.9 $0.5 $1.1 $1.3 $1.8 $2.9 $2.0 $1.6 $1.9 $2.1 $2.0 ~$2.4

$0 $4 $8

2010 2011 2012 2013 2014 2015E

E&P CapitalAllocation (Billions)

Advantaged Maintenance Capital* Provides Portfolio Flexibility

Maintenance Capital Short Cycle Growth Capital Mid & Long-Cycle Capital

39% ~50% $3.0 - 3.2 Maintenance Capital Liquids Mix

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Align Capital Investments with Anticipated Cash Inflows Maintain Flexibility with Short-Cycle U.S. Onshore Opportunities Leverage Midstream Advantage Advance Mid-Cycle Mega Projects Continue to Invest in Long-Cycle Exploration

Differentiating Capital-Allocation Approach

8

Mid Cash Cycle Short Cash Cycle Long Cash Cycle <1 Year 1 - 3 Years 3+ Years

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9

Differentiating Advantages

World-Class Exploration

Reserve Replacement

160+%

Provides Portfolio Option Value Industry-Leading Project Management Enhances Project Value Active Portfolio Management Accelerates Cash Cycle & Value Integrated Midstream Approach Maximizes Upstream Value Extensive Minerals-Interest Ownership Drives Value & Efficiencies

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Ongoing Commitment to Accelerate Value and Reduce Portfolio Complexity ~$12.5 Billion in Monetizations 2010 - 2014

• ~$6 Billion Divestitures
• $5+ Billion Carried-Interest Agreements
• $1+ Billion Exploration Farm-Downs

$3+ Billion Inflows from WES and WGP to Date $700+ Million Divestiture Already in 2015

Differentiating Portfolio Management

10

$1.7 $1.8 $1.4 $4.8 $2.6

$0.0 $2.5 $5.0 2010 2011 2012 2013 2014 Monetizations* (Billions)

Marcellus JV ~$1.4 Other ~$0.3 Eagleford JV ~$1.6 Other ~$0.2 Lucius JV ~$0.6 Salt Creek JV ~$0.4 Other ~$0.4 Mozambique ~$2.6 Heidelberg JV ~$0.9 Pinedale/Jonah ~$0.6 Other ~$0.7 China ~$1.1 Vito ~$0.5 Eaglebine JV ~$0.4 Other ~$0.6

*Does not include WES/WGP transactions

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A N A D A R K O P E T R O L E U M C O R P O R A T I O N

Maintain Portfolio Flexibility to Accelerate as Returns Improve Focus on Driving Efficiencies and Cost Savings Exercise Financial Discipline Continue to be an Active Portfolio Manager

Preserving Value & Positioning for the Future

11

LUCIUS SPAR, GULF OF MEXICO

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

NYSE: APC | www.anadarko.com

2015 Initial Expectations

Sales Volumes (MMBOE)** 295 - 301 Capital (Billions)1 $5.4 - $5.8 Reserve Replacement2 100+% F&D ($/BOE)2 ~$20

2015 Expectations

1Does not include WES capital investments 2Does not include potential Mozambique reserve adds

12

* See 2014 divestiture-adjusted table attached to 3/3/2015 capital and guidance release ** Net of anticipated weather and facility downtime

301 295 - 301 308 - 314 9 4 280 320

2014 Divestiture Adjusted* 2015E** Ethane Rejection Assumption Anticipated Completion Deferrals 2015 Budget Productive Capacity**

Sales Volumes MMBOE

Preserving Value over Near-Term Growth

275,000 Daily Oil Sales ~289,000 Daily Oil Sales

~5% YOY Oil Sales-Volume Growth Minimal Incremental Cost Savings Assumed 40% U.S. Onshore Rig Count Reduction ~125 Deferred U.S. Onshore Well Completions

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Short Cash Cycle ~55%

Flexible Capital Allocation Preserves Value

Mid Cash Cycle ~30% Long Cash Cycle ~12%

Wattenberg Generates 30+% BTAX ROR at Strip Prices Eagleford Generates 20+% BTAX ROR at Strip Prices Leverage Midstream Advantage Build Foundation for Wolfcamp Growth Add Incremental Oil at K2 and Caesar/Tonga Advance Heidelberg and TEN Mega Projects for 2016 Start Progress Mozambique LNG Advance Shenandoah to Development Advance Paon Commerciality Test Play-Opening Prospects in Colombia, Kenya and GOM

* Does not include WES capital investments

Corporate ~3%

<1 Year 1 - 3 Years 3+ Years 2015 Capital Expectations: $5.4 - $5.8 Billion*

13

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

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INVESTOR RELATIONS

John Colglazier Senior Vice President 832/636-2306 Robin Fielder Director 832/636-1462 Jeremy Smith Director 832/636-1544

Bob Gwin

Preserving Financial Strength

BRASADA PLANT, TEXAS

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

NYSE: APC | www.anadarko.com

~$3 Billion Cash-on-Hand* Material Borrowing Capacity

• $3 Billion 5-Year Revolving Credit Facility
• $2 Billion 364-Day Facility
• $3 Billion Commercial Paper

Continue to be an Active Portfolio Manager

• $700+ Million Divestiture Announced

Anticipate Periodic WES and WGP Transactions

Strong Financial Position

15

* Post Tronox settlement and announced 2015 divestiture

Net Debt-to-Cap YE 2014 Pro Forma YE 2014*

Anadarko Consolidated 26% 35% Anadarko ex WES/WGP 21% 33% Fitch BBB- Positive Strong Investment-Grade Ratings Moody’s Baa2 Stable S&P BBB Stable

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$0 $500 $1,000 2008 2009 2010 2011 2012 2013 2014

Millions

$3+ Billion Returned to Anadarko

Asset Sales to WES Distributions WGP Unit Sales

Anticipate Periodic Transactions WES Independently Funds Significant Midstream Expansions Provides Visible Cash Source

WES & WGP: $15+ Billion Value for Anadarko

* Fully Diluted ** As of 2/27/2015

~$12 Billion** WGP Unit Value Owned by Anadarko

~35% LP* ~2% GP

~88% LP*

Western Gas Partners, LP Anadarko Western Gas Equity Partners, LP

NYSE: WGP NYSE: WES

~8% LP*

16

GP

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2015 Multiples With/Without Hedging Impact

17

4.0x 6.0x 8.0x 10.0x 12.0x 14.0x 16.0x Small-Cap Median Mid-Cap Median Large-Cap Median Anadarko Anadarko Excluding WGP/WES*

E&P Valuations – 2015 EV/EBITDA

Hedged Unhedged

Source: Heikkinen Energy Advisors estimates (2/27/2015 Valuation Sheet) * Does not include 2/27/2015 WGP enterprise value owned by Anadarko and forecasted 2015 WES EBITDA

(15 Companies) (16 Companies) (10 Companies)

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Preserve Balance Sheet Strength Committed to Solid Investment Grade Rating Ongoing Portfolio-Management Activity

Financial Discipline as a Competitive Advantage

18

• $0.1

$0.3 $1.1 $1.4 $1.0 $0.8 $(1) $1 $3 $5 $(1) $1 $2 $3 2009 2010 2011 2012 2013 2014 Billions Billions

$4.5+ Billion Adjusted Free Cash Flow* Generation

FCF by Year Cumulative FCF

Note: See appendix slides for definitions/reconciliations of non-GAAP financial measures * Does not include WES capital investments

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

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INVESTOR RELATIONS

John Colglazier Senior Vice President 832/636-2306 Robin Fielder Director 832/636-1462 Jeremy Smith Director 832/636-1544

Chuck Meloy

U.S. Onshore

DELAWARE BASIN, TEXAS

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

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Maintain High HSE Standards Leverage Continuous Improvement Culture Capture Supply Chain Savings Focus on Base Production Leverage Integrated Business Approach to Maximize Value Increase Activity when Costs Align with Commodity Prices Build Foundation for Wolfcamp Growth

U.S. Onshore: 2015 Playbook

20 WES/WGP Enable Upstream Growth Enhance Margins Enhance Liquid Recoveries Multiple Marketing Outlets Low-Cost Operator Advanced Surveillance Technologies Integrated with Midstream Large Assets for Economies of Scale Increase EURs Water On-Demand Capture Savings with Well-to-Well Contracts Option to Accelerate when Costs Align with Commodity Prices Utilize Flexibility from Staggered Rig Contracts 20% 2-Year Drilling Efficiency Improvement

0.30 0.60 0.00 0.50 1.00 2008 2009 2010 2011 2012 2013 2014 TRIR

Outstanding Safety Performance

Anadarko Employees AXPC Average

Eagleford DJ Basin Delaware Basin Marcellus Haynesville

Completions Production Midstream & Takeaway Exploration Drilling

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

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54 47 36 36 30 26 18 14 20 40 60 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15

In-Service/Committed Rigs

Staggered Operated Rig Contracts Provide Flexibility

Rigs in Service Rig Contract Obligations

Will Reduce Onshore Rig Count by 40% from 2014 Defer ~125 Completions Until Costs Align with Commodity Prices 50% Capital Allocation to Wattenberg: 30+% BTAX ROR ~15% Capital Allocation to Eagleford: 20+% BTAX ROR Wolfcamp: Delineation and Enabling Infrastructure

U.S. Onshore: Maintain Flexibility & Preserve Value

21

Eagleford Wattenberg Wolfcamp

• E. Texas Other

Midstream Exploration

2015 CAPITAL BUDGET ~$3.8 BILLION

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

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1.5+ BBOE Current Net Resources

• 500+ MMBOE Upside with Downspacing

~4,000 Identified HZ Drilling Locations Resilient Returns

• 30+% BTAX Returns in Current Environment
• Minerals-Interest Uplift

Infrastructure in Place for Expanded Growth

Wattenberg: World-Class Asset

22

2015 Planned Activity

Operate ~9 Rigs Drill 280+ Wells (330+ Type-Well Equivalents) Defer ~70 Well Completions $2.0 $1.2

350 MBOE EUR Well

Based on $3.6 million well cost and NYMEX strip as of 2/24/2015

Anadarko Economics Enhanced by Minerals-Interest Ownership

BTAX NPV-10 (Millions)

$3.2

APC Mineral Ownership Advantage

Consolidated Core Acreage

Oil Light Oil

350+ MBOE EUR/Well ~70% Liquid Composition 350+ MBOE EUR/Well 60+% Liquid Composition ~450 MBOE EUR/Well 65+% Liquid Composition 350+ MBOE EUR/Well 60+% Liquid Composition

Wet Gas

5 Miles

WATTENBERG

Net Acres: ~350,000

APC Acreage APC Mineral Interest HZ Wells 24 Wells Per Section Downspacing Tests

COLORADO

55 61 72 91 109 171

125 250 2009 2010 2011 2012 2013 2014 2015E

MBOE/d

Wattenberg Net Sales Volumes

Vertical Horizontal Full Ethane Recovery

180 - 185* * Assuming partial ethane recovery

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Multiple Delivery Options to Maximize Value Recent Additions

• 300 MMcf/d Lancaster Cryogenic Plant
• 150,000 Bbl/d Front Range NGL Pipeline
• ~80,000 Bbl/d White Cliffs Oil Pipeline

Expansions Under Way

• Field Gathering and Compression
• 300 MMcf/d Lancaster II Cryogenic Plant

Wattenberg Infrastructure: Staying Ahead of the Game

23

Year-End 2014 Infrastructure

Gas Gathering Pipelines 3,100+ Miles Oil Gathering Pipelines 200+ Miles Processing Capacity 875 MMcf/d Compression 197,000 HP Gas Gathering System Capacity 685 MMcf/d Oil Gathering System Capacity 125 MBOPD

60 120 2012 2013 2014 2015E 2016E MBOPD

Oil Takeaway Capacity

600 1,200 2012 2013 2014 2015E 2016E MMcf/d

Gas Processing Capacity

Current Throughput Current Throughput

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Activity Demonstrates Commerciality 1+ BBOE Net Resource Potential

• 100+ MMBbl Original Oil in Place per Section
• 5,000+ Identified Wolfcamp A Locations

Preparing for Full-Scale Development

Delaware Basin Wolfcamp: It’s BIG

24

TEXAS

DELAWARE BASIN

Gross Acres: ~610,000 Net Acres: ~255,000

NEW MEXICO TEXAS

Ward Winkler

10 MILES

Culberson Pecos

800 - 1,000 MBOE EUR/Well 600 - 800 MBOE EUR/Well 700 - 900 MBOE EUR/Well

Reeves

Top-Tier Acreage Position

Oil 46% Gas 27% NGL 27% Oil 70% Gas 15% NGL 15%

40 80 120 1 210 Cumulative MBOE Days On Line

~30% Increase in EURs

Initial Design New Design

APC Acreage

WOLFCAMP

TVD (ft) 9,000 - 12,000 Gross Thickness (ft) 1,200 - 2,000 Porosity (%) 8 - 12

TOP-TIER RESERVOIR CHARACTERISTICS

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Applying Proven Midstream Model

• Enables Operational Control
• Ensures Timely Well Connections
• Improves Price Realizations

Delaware Basin: Building the Foundation for Future Growth

25

TEXAS

APC Acreage Gas Gathering Oil Gathering Production Facility Processing Plant

DELAWARE BASIN

Gross Acres: ~610,000 Net Acres: ~255,000

2015 Planned Additions

190 Miles of Pipeline 30,000 BOPD Oil Processing 200 MMcf/d Cryo Gas Processing

Ward Winkler

10 MILES

Culberson Pecos Reeves Loving A N A D A R K O P E T R O L E U M C O R P O R A T I O N

Year-End 2014 Infrastructure

Gas Gathering Pipelines 780 Miles Oil Gathering Pipelines 115 Miles Compression 70,000+ HP Gas Gathering Facilities 13 Water Gathering Pipelines 100+ Miles

APC, WES & JV Infrastructure

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

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U U U L U L U L L U L U U U L U L U L L U L

Complete Reservoir Evaluation and Lease-Commitment Activity

• Test Stacked-Pay Potential

Prepare Multi-Year Development Plan

• Optimize Spacing and Completion Design
• Utilize Longer Laterals
• Transition to Field-Wide Pad Activity

Expand Enabling Infrastructure

• Roads
• Power
• Water

Delaware Basin Wolfcamp: Advancing an Onshore Mega Project

26

Opportunities to Pool Units 8 - 12 Wells/Section Sawtooth Development of Wolfcamp A Benches

3-Section Pooled Unit

Planned Development Options

U L

Upper Wolfcamp A Lower Wolfcamp A Surface Location

3D Development View

• Facilities
• Gathering
• Processing

2015 Planned Activity

Operate ~6 Rigs Drill 60 - 70 Wells Defer ~30 Well Completions

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

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Dimmit Maverick Webb

10 Miles

250+ MBOE/d Gross Processed Sales Volumes

• ~2,000 Identified Drilling Locations
• Testing Stacked-Pay Potential

Reduced Rig Count from 10 to 5

• 20+% BTAX ROR at Strip Prices* and Current Costs

Best Drilling Cycle Times in Play

• Longer Laterals at Lower Cost

Infrastructure in Place

Eagleford: Maximizing Scale Advantages

27

La Sall e

2015 Planned Activity

Operate ~5 Rigs Drill ~200 Wells Defer ~30 Well Completions

1 7 17 33

48

71 76 - 78 20 40 60 80 2009 2010 2011 2012 2013 2014 2015E MBOE/d

Increasing Sales Volumes

EAGLEFORD

Gross Acres: ~332,000 Net Acres: ~162,000

APC Acreage Drilled Wells

1,400+ Wells Drilled to Date

TEXAS

$0.0 $0.5 $1.0 $1.5 $2.0 2013 2014 BTAX NPV10 (Millions)

Improved Completion Design Doubled Value per Well

* As of 2/24/2015

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Brasada Gas Plant

• Flexibility to Maximize Value
• Direct NGL Access to Mt. Belvieu

Eagleford: Large-Scale Infrastructure Advantages

28

Year-End 2014 Infrastructure

Oil Gathering Pipelines 241 Miles Gas Gathering Pipelines 605 Miles Compression 224,000 HP Central Gathering Facilities 24 Central Production Facilities 138 Water Pipelines 312 Miles

TEXAS

EAGLEFORD

Gross Acres: ~332,000 Net Acres: ~162,000

APC Acreage Gas Gathering Oil Gathering Oil Handling Facility Processing Plant Delivery Points

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

Dimmit La Salle Webb Maverick

10 Miles

Oil Terminal and Gas Pipeline Hub Brasada Processing Plant

Oil Pipeline to Corpus Christi NGL Pipeline to Mt. Belvieu

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

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Core Positions in 3 Major Horizontal Oil Plays Track Record of Top-Tier Results

• ~92,000 BOE/d Growth in 2014
• Wedge Volumes Added at ~$35,000 per Flowing Barrel

Well Positioned for 2015

U.S. Onshore: Delivering Capital-Efficient Liquids Growth

29

U.S. Onshore Net Sales Volumes (MBOE/d) 2009 2010 2011 2012 2013 2014 2015E Total Sales Volumes* 326 359 407 485 553 644 632 - 642 Liquids (MBbl/d)* 68 89 113 140 169 246 252 - 262 Wattenberg HZ

• 4

22 56 124 153 - 156 Eagleford 1 7 17 33 48 71 76 - 78 Wolfcamp

• 1

7 13 - 15

• E. Tx/N. La HZ
• 6

9 23 41 48 46 - 48 Marcellus 1 6 23 54 85 95 80 - 85

Major Horizontal Fields

* Divestiture-adjusted

~$13/BOE Development Costs

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INVESTOR RELATIONS

John Colglazier Senior Vice President 832/636-2306 Robin Fielder Director 832/636-1462 Jeremy Smith Director 832/636-1544

Jim Kleckner

International & Deepwater Operations

March 4, 2014

LUCIUS SPAR, GULF OF MEXICO

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

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High-Quality Assets Industry-Leading Project Management Manage Portfolio Risk and Accelerate Value

High-Impact Projects Deliver Differentiating Value

31

Note: See appendix slides for definitions/reconciliations of non-GAAP financial measures

2014 Results

Sales Volumes (MBOPD) 9 EBITDAX/Bbl $64

2015 Expectations

~$1.4 Billion Capital 180 - 185 MBOE/d Sales Volumes

141 147 149 143 148 150 - 160 100 160 2010 2011 2012 2013 2014 2015E

MBbl/d

Stable Higher-Margin Liquids Sales Volumes

Alaska

Sales Volumes (MBOE/d) 83 EBITDAX/BOE $64

Gulf of Mexico

Sales Volumes (MBOPD) 19 EBITDAX/Bbl $90

Ghana

Sales Volumes (MBbl/d) 69 EBITDAX/Bbl $72

Algeria

~$1.1 Billion Divestiture Closed

China

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

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Excellent Safety Performance Project Delivery Track Record Efficient Reservoir Characterization Standardization and Contractor Continuity Knowledge Transfer Leader in Deepwater Drilling

Industry-Leading Project Management Enhances Value

32

Fast/High-Cost Fast/Low-Cost Slow/High-Cost Slow/Low-Cost Facilities Cost Performance

Industry Norm

Schedule Performance

2007 2006 2008 2012 2009 2010/11

*

2013

2014

Anadarko is Fast & Efficient (IPA)

Recent Industry Projects ~10 Years Lucius & Heidelberg ~6 Years

5 10

Recent Industry Projects Lucius & Heidelberg

Years from Discovery to First Production

Anadarko’s Project Management is Adding ~$1 Billion Gross Value to Each Project

~40% Faster

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

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Lucius Ramping Toward Capacity Caesar/Tonga Adding Incremental Oil Volumes Heidelberg on Track for First Oil in 2016 Ghana TEN on Track for First Oil in 2016 Mozambique LNG Development Advancing to FID

Advancing Mega Developments

33

DESIGN ONE: BUILD TWO

Lucius: 80,000 BOPD Spar Sanction to First Production: 3 Years Heidelberg: 80,000 BOPD Spar Sanction to First Production: 3 Years

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

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$0 $3 $5 2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E 2021E

Billions

Mega Projects Provide Significant Free Cash Flow

Consistently Delivering High-Value Growth $3.5+ Billion Value Accelerated

• Lucius: $476 Million Carry for 6.2% Interest
• Heidelberg: $860 Million Carry for 12.75% Interest
• Mozambique: $2.1 Billion Net Divestiture for 10% Interest

Transitioning Next-Generation Projects

Mega Projects Provide Significant Volumes & Cash

34

Note: See appendix slides for definitions/reconciliations of non-GAAP financial measures * Based on strip pricing as of 02/24/2015 ** ~60% Mozambique project financing assumed

Mozambique Proceeds EBITDAX* Capital**

Jubilee/MTA Caesar/Tonga El Merk Lucius Heidelberg TEN Mozambique First 2 Trains

125 250 2010 2015E 2021E Estimated Sales Volumes (MBOE/d)

Visible Growth

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$2+ Billion BTAX Net Value

• Development Capital Carried
• 1-Year Anticipated Payout

First Oil 3 Years from Sanction

• Ramping Toward Capacity

World-Class Reservoir Quality Enhancing Value Through Infrastructure

• Hadrian South PHA
• Buckskin/Moccasin PHA
• Pursuing Additional Opportunities

Lucius: Differentiating Value

35

Hadrian South Gas Field Buckskin Oil Field Hadrian North

KEATHLEY CANYON WALKER RIDGE SIGSBEE ESCARPMENT AMERY TRACE

Phobos Discovery 30% WI

Moccasin Discovery

Lucius Unit 24% WI

300+ MMBOE Gross Resources

Lucius: Anadarko’s Largest Spar Capacity 80,000 BOPD, 450 MMcf/d Spar Diameter 110 Feet Spar Length 605 Feet Hull Weight 23,000 Tons Water Depth 7,100 Feet

APC WI Block APC Discovery Industry Discovery Oil Field Gas Field Subsea Tie-Back

GULF OF MEXICO

Gross Acres: ~2.3 Million $200 $300 $400 2015E 2016E 2017E 2018E 2019E 2020E

Millions

Forecasted Free Cash Flow*

* Based on strip pricing as of 02/24/2015 Note: See appendix slides for definitions/reconciliations of non-GAAP financial measures

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

NYSE: APC | www.anadarko.com

First Oil Anticipated Mid-2016

• 3 Years from Sanction
• Project ~75% Complete
• 2 Rigs Drilling Development Wells

Utilizing Lucius Spar Design

• Accelerates First Oil by 18 Months
• Reduces Execution Risk and Cost

200 - 400 MMBOE Gross Resources

Heidelberg: Replicating Lucius Success

36

APC WI Block Successful Well Planned Drilling Oil Field Salt Subsea Tieback

$860 Million Carried-Interest Agreement

GULF OF MEXICO

Gross Acres: ~2.3 Million

Salt Miocene HEID-3 Cretaceous

A A’

HEID-1 Pliocene Eocene Oligocene Salt Jurassic

Younger Basin

Salt 859 860 903 904 948 861

GREEN CANYON

Subsea Manifold

Heidelberg Unit 31.5% WI

Future Spar Location

A’ A

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

NYSE: APC | www.anadarko.com

Jubilee: Producing 100,000+ BOPD

• High Margins: $90/Bbl EBITDAX in 2014
• 125+ MMBO Produced Since 2010
• Gas Off-Take to Enable Increased Oil Production

TEN: 80,000 BOPD FPSO

• First Oil Anticipated Mid-2016
• Project ~50% Complete
• On Budget and On Schedule

MTA: Potential Jubilee Tie-Back

Ghana: Premium-Value Oil Growth

37

Note: See appendix slides for definitions/reconciliations of non-GAAP financial measures 20 miles 32 km

WEST CAPE THREE POINTS (31% WI)

Mahogany Akasa Wawa

DEEPWATER TANO (19% WI)

Teak Enyenra Ntomme

Planned FPSO Location

TEN Complex Jubilee Unit Tweneboa GHANA

Gross Acres: ~0.3 Million

APC WI Block Oil Field Gas Condensate Field Appraisal Area

AFRICA

30 60

2010 2020E

MBOE/d

Net Sales Volumes

Jubilee/MTA TEN

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

NYSE: APC | www.anadarko.com

High Margins: $72/Bbl EBITDAX in 2014 El Merk Drives Record Net Production in 2014

Algeria: 3 World-Class Developments in Sahara Desert

38

BLOCK 404A PK0 BLOCK 208

HBNS CPF El Merk CPF

10 miles 16 kms

APC WI Block Oil Field Gas Condensate Field Export Pipeline

ALGERIA

Gross Acres: ~0.5 Million

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

AFRICA

Approaching 2 Billion Barrels Cumulative Oil Production

Ourhoud CPF 40 80 120 160 2013

MBOE/d

El Merk

140+ MBbl/d Gross Sustained Rates

Actuals Oil Condensate NGL 2015E EL MERK CPF, ALGERIA

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

NYSE: APC | www.anadarko.com

Enormous Recoverable Resources

• 75+ Tcf on Offshore Area 1
• Scalable Onshore Development to 50+ MMTPA

Attractive Cost Advantages

• Close Proximity to Shore
• Natural Harbor
• Direct Subsea to Shore Development
• High Well Deliverability
• Access to Premium Asian Markets

Advantaged Economics

• 20-Year Off-Take HOAs
• Pricing Mechanism Protects Economics

Financially Derisked

• $2.1 Billion Net Monetization Proceeds
• Material Project Financing Available

Mozambique LNG: Competitive Global LNG Supply Source

39 MOZAMBIQUE OFFSHORE AREA 1

Gross Acres: 1+ Million

AFRICA

APC WI Block Natural Gas Field

MOZAMBIQUE

Area 1

10 Miles 16 km

17,000 Acre LNG Facility Site Orca Golfinho/Atum Tubarão Tigre Prosperidade Tubarão

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

NYSE: APC | www.anadarko.com

Mozambique LNG: Progressing World-Class Project to FID

40

Independent Certified Reserves

Reserve Replacement

160+%

Sufficient to Support Initial Trains Establishing Legal & Contractual Stability Decree Law Gazetted Evaluating Competitive FEEDs Contractor Decision Pending Capturing Market 8+ MMTPA Non-Binding HOAs Project Financing 60+% Funding Indications Received

75+ Tcf Estimated Recoverable Resources

MOZAMBIQUE OFFSHORE AREA 1

Gross Acres: 1+ Million

AFRICA

Pace to be Dictated by Government Agreements and Approvals

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

NYSE: APC | www.anadarko.com

Growing Long-Life, High-Margin Oil Production Advancing Multiple Development Projects Appraising Next-Generation Projects Managing Portfolio Risk and Accelerating Value

• ~$1.6 Billion China and Vito 2014 Divestitures

Continuous Mega-Project Pipeline Delivering Results

41

Phobos Yucatan Lucius Jubilee Caesar/Tonga El Merk Shenandoah Paon Mozambique Heidelberg TEN

63% 68% 74% 77% 82% ~85% 50% 75% 100% 2010 2011 2012 2013 2014 2015E

Liquids Increasing Liquids Composition

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

NYSE: APC | www.anadarko.com

INVESTOR RELATIONS

John Colglazier Senior Vice President 832/636-2306 Robin Fielder Director 832/636-1462 Jeremy Smith Director 832/636-1544

Bob Daniels

International & Deepwater Exploration

OFFSHORE COLOMBIA

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

NYSE: APC | www.anadarko.com

Consistent

• Focus on Strengths
• Portfolio-Based Decisions
• Risk Assessment

Focused on Value Creation

• Early, Low-Cost Entry
• Optimize Working Interest
• Commercial Leverage

Talented Oil Finders

• Culture of Creativity
• Petroleum System Foundation
• Appropriate Technology Application

Proven Exploration Strategy

43

5-Year Track Record

~65% Deepwater Success ~4 BBOE Net Discovered Resources

Drill Best Opportunities Explore/ Capture Optimize/ Test Post Appraisal

Deep Evolving Portfolio

Jubilee Wahoo Shenandoah Lucius Itaipu Vito Heidelberg Prosperidade Enyenra Golfinho/Atum Orca Tubarão Tigre

TOP-10 DEEPWATER DISCOVERIES*

2007 2008 2009 2010 2012 2013 2014

* IHS Energy, January 2015

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

NYSE: APC | www.anadarko.com

Creating Unmatched Value with Optionality

44

2005 - 2014

~$10 Billion Capital Invested

Net Discovered Resources

~6.5 BBOE ~$13 Billion

Monetized

~5 BBOE ~250 MBOE/d

Resources Retained Net Production

Discoveries Appraising Developing Monetized

• Tubarão Tigre
• Tembo
• Shenandoah
• Paon
• Orca
• Tubarão Tigre
• Lucius: 1st Oil
• Heidelberg
• TEN
• Mozambique LNG
• Mozambique WI
• Vito

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

NYSE: APC | www.anadarko.com

Leveraged Our Success

• ~$200 Million Funding Through Farm-Outs

$3+ Billion Monetizations Closed

• Mozambique
• Vito and Prospects

~200 MMBOE Net Discovered Resources Doubled Acreage Position in Colombia

Exploration Successes in 2014

45

TUBARÃO TIGRE-1

2014 Top-10 Deepwater Discovery*

* IHS Energy, January 2015

An Active Start to 2015 Gulf of Mexico: Drilling Yeti Prospect Colombia: Spud Play-Opening Opportunity Mozambique: Successfully Completed Deepwater Exploration Program

• 75+ Tcf Discovered to Date

0% 20% 40% 60% 80% 100% 2009 2010 2011 2012 2013 2014

Drilling Success

Deepwater Drilling Success Rate

Anadarko Industry*

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

NYSE: APC | www.anadarko.com

2015 Deepwater & International Exploration Activity

46

• 2+ MM Gross Acres
• 3 - 4 Exploration &

Appraisal Wells

Gulf of Mexico

• ~16 MM Gross Acres
• 2 Exploration Wells
• 3D Acquisition

Colombia

• ~1 MM Gross Acres
• 1 Exploration Well

North Africa

• ~3 MM Gross Acres
• 1 - 2 Exploration &

Appraisal Wells

West Africa

• ~11 MM Gross Acres
• 2 - 3 Exploration &

Appraisal Wells

East Africa

• ~42 MM Gross Acres
• 3D Acquisition

New Zealand

Expl Drilling 52% Appr Drilling 28% G&G 20%

2015 CAPITAL BUDGET ~$600 MILLION

2015 Planned Activity

Drill 9 - 12 Wells Target 700+ MMBOE Net Discovered Resources

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

NYSE: APC | www.anadarko.com

Shenandoah: Advancing Toward Development

• Appraisal Well Up-Dip to Shenandoah-2

Yeti: Miocene Subsalt 3-Way Trap Opal: Miocene Unconfined Fan Thorvald: Subsalt 3-Way Trap Phobos: Potential Appraisal

2015 Gulf of Mexico Exploration Activity

47 GULF OF MEXICO

Gross Acres: ~2.3 Million 3 - 5 Gross Wells

Sub-Salt Pliocene Lower Tertiary

Opal Shenandoah-4 Yeti Thorvald

Miocene

Shenandoah Yucatan Phobos

Shenandoah

WALKER RIDGE

Shenandoah 30% WI

Shenandoah-4

Yucatan 25% WI Shenandoah-3 Shenandoah-2

52 53 97 51 95

APC WI Block APC Discovery Successful Appraisal Planned Drilling Industry Discovery

Yeti: Drilling

WALKER RIDGE

117

GREEN CANYON Bigfoot ~300 MMBOE Cascade ~300 MMBOE

160 159 158 157

Yeti 37.5% WI

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

NYSE: APC | www.anadarko.com

Exploration

Côte d’Ivoire

• Advancing Toward Commerciality
• Paon: Appraisal Well and DST

Colombia: Drilling Under Way

• Kronos: Large 3-Way
• Calasu: Multi-Target 4-Way
• Grand Col Area: 3D Acquisition

Kenya

• Mlima: Large 4-Way

Mozambique

• Success at Tubarão Tigre

2015 International Deepwater Exploration Activity

48

APC WI Block APC Discovery Successful Appraisal Planned Drilling Oil Field Prospect

Colombia

Col 5 Fuerte Sur Ura 4 Purple Angel

Kronos

Fuerte Norte 25 miles 40 km

Calasu

Côte d’Ivoire

10 miles 16 km Paon-2A CI-529 90% WI CI-528 90% WI CI-103 65% WI

Paon-1X Paon-3AR Paon-4A Paon-5A

10 miles 16 km

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

NYSE: APC | www.anadarko.com

Capture with High Working Interest Perform Early Science Develop High-Quality Projects Leverage Reputation Ensure Win-Win Partnerships

Leveraging Exploration as a Competitive Advantage

49

25% Uplift in Activity

$200+ Million Funding in 2014

33+% Uplift in Activity

$200+ Million Funding in 2015 & Growing

~$2 Billion Farm-Out Funding

$0 $1 $2 2007 2015E Billions

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

NYSE: APC | www.anadarko.com

Accelerating Portfolio Value Leveraging Our Success Providing Option Value

Proven Exploration Strategy with an Eye on the Future

50

Value Creation from New Fields, Organic Unconventionals and DROs (2009 - 2013)

Anadarko 

Relative Value

Discovered Resource Opportunity Organic Unconventionals New Fields

Source: Wood Mackenzie Exploration Service Corporate Benchmarking Report, September 2014

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

NYSE: APC | www.anadarko.com

A N A D A R K O P E T R O L E U M C O R P O R A T I O N

Balanced Portfolio with Unmatched Depth and Quality Demonstrated Commitment to Financial Discipline Efficient Capital-Allocation Approach Active Portfolio Management Sustained Focus on Long-Term Value Creation

Preserving Value & Positioning for the Future

WATTENBERG FIELD, COLORADO

51