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Credit Suisse 2011 Energy SummitBob Daniels
Sr. Vice President, Worldwide Exploration
February 8, 2011February 8, 2011
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3
Identify andIdentify andCommercializeCommercialize
ResourcesResources
3+ BBOE 3+ BBOE
of Proved of Proved Reserves in Reserves in Five Years Five Years
ExerciseExercise
FinancialFinancialDisciplineDiscipline
Managing Managing Success with Success with
Strong Balance Strong Balance Sheet Sheet
Exploration inExploration inHighHigh--PotentialPotentialProven BasinsProven Basins
25+ Deepwater 25+ Deepwater
Exploration and Exploration and Appraisal Wells Appraisal Wells in 2010 in 2010
Global BusinessGlobal Business
DevelopmentDevelopmentApproachApproach
Six World Six World - - Class Class Discoveries Discoveries
Producing Producing by 2016 by 2016
Our Strategy Is Working
Identify and Commercialize Resources
Global Business Development Approach Exercise Financial Discipline
Exploration in High- Potential Proven Basins
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De-RiskedW. Africa
ShalesBrazilGOM
Converting Resources to Value
Accelerate Production
and Reserve Growth
Prices and ServiceCosts in Equilibrium
Capitalize UponPortfolio Optionality
Base AssetsBase Assets
2.3 BBOE2.3 BBOE
Base Assets
2.3 BBOE
Base Assets
2.3 BBOE
Base Assets
2.3 BBOE
Base Assets
2.3 BBOE
Base AssetsBase Assets
2.3 BBOE2.3 BBOE
Development4.5+ BBOE
DevelopmentDevelopment
4.5+ BBOE4.5+ BBOE
ExplorationExploration
3.5+ BBOE3.5+ BBOE
10+ BBOE
DevelopmentDevelopment
5+ BBOE5+ BBOE
D e - R i s k e d S h a l e s
ExplorationExploration
3.5+ BBOE3.5+ BBOE
10.5+ BBOE
Monetized Shales $1.5B
March 2009 March 2010
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5
0
2
4
Production Mega Projects Shales
B B O E
Our Portfolio is Delivering
Capital-Efficient Base Replaces ProductionMega Projects Add Significant Oil Reserves
Shale Plays Are a New Source for Growth
YE 2014E
3+ BBOE
YE 2010
2.4 BBOE
Base
3+ BBOE of Proved Reserves in Five Years
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Raising the Performance Bar
7 - 9% Five-Year Production CAGR150+% Reserve ReplacementF&D Less Than $15/BOE
Transition Discoveries to DevelopmentLine of Sight to Significant Production Growth
400
700
1,000
2010 2011 2012 2013 2014
M B O E / d
Shales Sanctioned MegasBase
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Additional Project PotentialLucius
Wahoo
Tweneboa / EnyenraHeidelberg
Vito
Itaipu
Mahogany East
Next GenerationMozambique Gas
MercuryItauna
Shenandoah 400
700
1,000
1,300
2010 2011 2012 2013 2014 2015 2016
M B O E
/ d
Visible Growth from Mega Projects
Additional ProjectsShales Sanctioned MegasBase
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Our Track Record of Delivery ContinuesExceeded 2010 Expectations
March 2010Midpoint
2010Results
Record Sales Volumes (MMBOE) 228.5 235
Capital Expenditures, IncludingExpensed G&G ($ Billion) 5.45 <5.3
Free Cash Flow ($ Million) (100) 211
Organic Reserve Replacement 130+% 140%
Lease Operating Expense ($/BOE) 4.35 3.54
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Enhanced Liquidity and Financial Flexibility
Ended 2010 with ~$3.7 Billion of Cash on Hand
Access to 5-Year $5 Billion Undrawn Secured FacilityReplaced and Upsized $1.3 Billion Revolver Maturing in 2013
Extended Near-Term Debt Maturities
Average Maturity – 14.3 YearsAverage Coupon – 6.59%
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Capital-Efficient U.S. Onshore Portfolio
Base Assets~25 Tcfe Resource BaseScaleable ProgramsEnhancing Margins and Efficiencies
Accelerating Shale ValuePremier Acreage PositionReserve Growth Engine60+% 5-Year Production CAGR
OIL AND GASNATURAL GAS
SHALE PLAY
MARCELLUS6+ Tcf Net Risked Resources
MARCELLUS6+ Tcf Net Risked Resources
HAYNESVILLEHBP Acreage
HAYNESVILLEHBP Acreage
EAGLEFORD/PEARSALL
450+ MMBOE Net Risked Resources
EAGLEFORD/PEARSALL450+ MMBOE Net Risked Resources
POWDER RIVERPOWDER RIVERPOWDER RIVER
GNBGNBGNB
WATTENBERGWATTENBERGWATTENBERG
GREEN RIVERGREEN RIVERGREEN RIVER
CHALKCHALKCHALK
CARTHAGECARTHAGECARTHAGEBOSSIERBOSSIERBOSSIER
4Q10 Net Sales 2.4 Bcfe/d
Net Acreage ~15 Million
BONE SPRINGBONE SPRINGBONE SPRING
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Marcellus Shale
ResultsIPs 7+ MMcf/d4 - 6 Bcf EUR per Well
2010 Activity7 Operated Rigs at YE20 Non-Operated Rigs at YE
Secured 1.2 Bcf/d AdditionalTakeaway Capacity
Prudently Paced
Development with JointVenture Transaction
Net Risked Resources 6+ Tcf
Gross Acreage: ~750,000
Net Acreage: ~260,000
0 20
Miles
APC ACREAGE
PENNSYLVANIAPENNSYLVANIA
NEW YORKNEW YORK
PENNSYLVANIAPENNSYLVANIA
Marcellus Shale PlayMarcellus Shale Play
PILOT AREA
ANADARKOFOCUS AREAANADARKO
FOCUS AREA
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APC ACREAGE
MAVERICKMAVERICK
DIMMITDIMMIT
WEBBWEBB
0 10
Miles
2010 DEVELOPMENT AREA
ZAVALAZAVALA
Eagleford Shale
400+ MBOE EURs
2,000+ Drill Sites
~85% of Value from Liquids
Excellent Economics
Deeper Pearsall Shale Opportunity
TEXASTEXAS
Gross Acreage: ~400,000
Net Acreage: ~300,000
Production Composition
27%
27%
46%
Net Risked Resources 450+ MMBOE
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Our Big Boys are BIG
1+ BBOE Net Risked Resources
Gross Resource Potential in MMBOE
Prior 2007 2008 2009 2010
Discovery Date
El Merk500500--600600
Jubilee
600600--1,5001,500
Caesar/Tonga200200--400400
Heidelberg200+200+
Wahoo 200+200+
Vito200+200+
Itaipu300+300+
Tweneboa300+300+
Lucius
300+300+
D e v C o s t / B O E
4+4+ TcfTcf
Moz. Gas
Enyenra300+300+
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Focused Exploration in High-Potential Basins
60% Offshore Exploration Success Rate in 2010100% Offshore Appraisal Success Rate in 2010Deep, Multi-Year Inventory of Identified Prospects
GULF OF MEXICO • ~3 MM Gross Acres
• 4+ Wells
GULF OF MEXICO GULF OF MEXICO •• ~3 MM Gross Acres~3 MM Gross Acres•• 4+ Wells4+ Wells
BRAZIL• ~1 MM Gross Acres• 2 Exploration
BRAZILBRAZIL•• ~1 MM Gross Acres~1 MM Gross Acres•• 2 Exploration2 Exploration
WEST AFRICA• ~7 MM Gross Acres
• 5 Exploration• 5 Appraisal
WEST AFRICAWEST AFRICA•• ~7 MM Gross Acres~7 MM Gross Acres•• 5 Exploration5 Exploration•• 5 Appraisal5 Appraisal
EAST AFRICA• ~14 MM Gross Acres• 6 Exploration
EAST AFRICAEAST AFRICA•• ~14 MM Gross Acres~14 MM Gross Acres•• 6 Exploration6 Exploration
SE ASIA• ~7 MM Gross Acres• 3 Exploration
SE ASIASE ASIA•• ~7 MM Gross Acres~7 MM Gross Acres•• 3 Exploration3 Exploration
NEW ZEALAND • ~17 MM Gross Acres
NEW ZEALAND NEW ZEALAND •• ~17 MM Gross Acres~17 MM Gross Acres
2010 Drilling Plan
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Exploration Capital Spent ~ $5.6 Billion
Net Resources Discovered ~ 1.8 BBOEMonetized ~500 MMBOE ~ $6 Billion
Booked ~150 MMBOE ~ $3 BillionYet to Book ~1,150 MMBOE $13+ Billion
Overall Value Added $16+ Billion
Creating Value from Exploration2004 Through June 2010
200720052004 2006 2008 2009
U.S. ONSHORE EXPLORATION
2010 2011
2006 – 10 DISCOVERIES
2005 – 8 DISCOVERIES
2004 – 12 DISCOVERIES
PRODUCING
GOM DISCOVERY
INTERNATIONAL DISCOVERY
BOOMVANG SATS
WAHOO
MAHOGANY DEEP
ODUM
HEIDELBERG
SHENANDOAH
TWENEBOA
SAMURAI
VITO
LUCIUS
ITAIPU
CAESAR / TONGAJUBILEE
VENUS
WINDJAMMERENYENRA
BARQUENTINEBADIK
MERCURY
ITAUNA
LAGOSTA
TUBARÃO
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Deepwater Gulf of Mexico Exploration
HEIDELBERGHEIDELBERGHEIDELBERGSHENANDOAHSHENANDOAHSHENANDOAH
SAMURAISAMURAISAMURAI
PHOBOSPHOBOS
CORONADOCORONADO
LYELLLYELL
FLINT CREEKFLINT CREEKBLACKTAILBLACKTAIL
SILVERADOSILVERADO
MAUNA KEAMAUNA KEA
HALEAKALAHALEAKALA
SILVERTONSILVERTONTORREYSTORREYS
PEBBLE BEACHPEBBLE BEACH
VITOVITOVITO
LOWER TERTIARY PROSPECT
MIOCENE/PLIOCENE PROSPECT
RECENT DISCOVERY
APC ACREAGE
Exploration Track Record: Discovered 32 Fields
10+ BBOE Gross Resource Potential
Identified More Than 100+ Prospect and LeadsTargeting 100+ MMBOE Gross Resources
Exploration Track Record: Discovered 32 Fields
10+ BBOE Gross Resource Potential
Identified More Than 100+ Prospect and Leads
Targeting 100+ MMBOE Gross Resources
Gross Acreage: ~3.3 MillionGross Acreage: ~3.3 Million
SPARTACUSSPARTACUS
LUCIUSLUCIUSLUCIUS
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Brazil Exploration
Gross Acreage: ~1 MillionGross Acreage: ~1 Million
Campos Basin
Santos
Basin
Espírito Santo Basin
LinguadoLinguado
JubarteJubarte
0
Miles
250
ANADARKO WI BLOCK
SUCCESSFUL WELL
COMPETITOR ACTIVITY
DISCOVERY
PROSPECT
ITAUNADISCOVERY
ITAUNAITAUNADISCOVERYDISCOVERY
Discoveries
WahooItaipuItaunaCoalho
Near-Term ActivityItaipu AppraisalItauna By-Pass Core
Transition Discoveriesto Development
0 5
Miles ITAUNADISCOVERY
ITAUNAITAUNADISCOVERYDISCOVERY
BM-C-2950% WI
WAHOODISCOVERY
WAHOOWAHOO
DISCOVERYDISCOVERY
BM-C-3233% WI
BM-C-3030% WI
ITAIPUDISCOVERY
ITAIPUITAIPUDISCOVERYDISCOVERY
WAHOO #2WAHOO #2WAHOO #2
WAHOO #2STWAHOO #2STWAHOO #2ST
Miles
ITAIPUDISCOVERY
ITAIPUITAIPUDISCOVERYDISCOVERY
COALHODISCOVERY
COALHOCOALHODISCOVERYDISCOVERY
WAHOODISCOVERY
WAHOOWAHOODISCOVERYDISCOVERY
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Gross Acreage: ~0.6 MillionGross Acreage: ~0.6 Million
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Jubilee – First Oil Achieved in 3.5 Years
Operator Resource Range of600 - 1,500 MMBOE
First Oil December 2010On Time, On Budget
120,000 BOPD by Mid-2011
High-Quality DevelopmentOutstanding ReservoirCharacteristics
Light Oil
High Flow Rates
World-Class Development in Record Time
May 2007 June 2008 1st Half 2009 Q3 2009 2009 - 2010 Q4 2010
Discovery AppraisalDrilling
SuccessfulFlow Tests
ProjectSanction
Construction, Installation,Drilling and Completions
FirstProduction
Unit WI: 23.5%Unit WI: 23.5%
WATER INJECTOR
GAS INJECTOR
SUCCESSFUL WELLS
WEST CAPE THREE POINTS(WI 31%)
JUBILEEJUBILEEJUBILEE
DEEPWATERTANO
(WI 18%)
5
MILES
0
MAHOGANY EASTMAHOGANY EASTMAHOGANY EAST
ANADARKO WI BLOCKS
DISCOVERY FIELD
OIL PRODUCER
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Ghana: Big and Getting Bigger Gross Acreage: ~0.6 MillionGross Acreage: ~0.6 Million
Miles100PROSPECT
DISCOVERED FIELDSUCCESSFUL WELL
2011 PLANNED EXPL DRILLING
W
OWO
MAHOGANY EASTTWENEBOA
DEEPWATER TANO BLOCK WEST CAPE THREE POINTS BLOCK
OWO
JUBILEE
WEST CAPE
THREE POINTS(APC WI 31%)
SC Channel 1
Odum Teak
3 Additional Major DiscoveriesMahogany East
Tweneboa
Enyenra
Transition Discoveriesto Development
2011 Planned Activity
3+ Appraisal WellsDrill-Stem Tests4+ Exploration Wells
SE CHANNEL 1
SE CHANNEL 2
TEAK ODUM
Banda
Dahoma Updip
SC Channel 2
BANDA
E
DEEPWATERTANO(APC WI 18%)
Tweneboa
OWOSuccessful
Sidetrack
OWOOWOSuccessfulSuccessful
SidetrackSidetrack
Jubilee
Turonian Deep
Mahogany East
TWENEBOA #2Successful
Appraisal
TWENEBOA #2TWENEBOA #2SuccessfulSuccessful
AppraisalAppraisal TEAK #1Drilling
TEAK #1TEAK #1DrillingDrilling
TWENEBOA #3SuccessfulAppraisal
TWENEBOA #3TWENEBOA #3SuccessfulSuccessfulAppraisalAppraisal
ENYENRA #2ADrilling
ENYENRA #2AENYENRA #2ADrillingDrilling
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West Africa: Multi-Billion-Barrel Potential
30+ Jubilee-Type Prospects Spanning ~7 MM AcresActive Exploration/Appraisal Program Outside Ghana
3 - 5 Wells Planned in 2011
APC ACREAGE
Liberian Basin
Ivorian Basin
700-Mile Span
SIERRA
LEONE
SIERRA
LEONE
LIBERIALIBERIA
CÔTE d’IVOIRECÔTE d’IVOIRE GHANAGHANA
VENUSDISCOVERY
VENUSVENUSDISCOVERYDISCOVERY MERCURY
DISCOVERYMERCURYMERCURY
DISCOVERYDISCOVERY GHANADISCOVERIES
GHANAGHANADISCOVERIESDISCOVERIES
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Mozambique: Emerging Grow th OpportunityGross Acreage: ~6 MillionGross Acreage: ~6 Million
ANADARKO WI BLOCK
PROSPECT
Mnazi BayMnazi Bay
APC OperatorONSHORE BLOCK
(APC WI 36%)
APC OperatorONSHORE BLOCK
(APC WI 36%)
APC OperatorOFFSHORE AREA 1
(APC WI 36.5%)
APC OperatorOFFSHORE AREA 1
(APC WI 36.5%)
0 15
Miles
T A N Z
A N I A
M O Z A M B
I Q U E
4 Major DiscoveriesTubarãoLagostaBarquentineWindjammer
2011 Planned ActivityAppraise DiscoveriesContinue Exploration Program
Robust Inventory
Acquire Additional 3D
IRONCLADEncountered Oil
IRONCLADIRONCLADEncountered OilEncountered Oil
LAGOSTADISCOVERYLAGOSTALAGOSTA
DISCOVERYDISCOVERY
TUBARÃODISCOVERYTUBARÃOTUBARÃO
DISCOVERYDISCOVERYROVUMA OFFSHORE
JurassicJurassic
WINDJAMMER
Tertiary
Cretaceous
Jurassic
BARQUENTINE &LAGOSTAIRONCLADTUBARÃO
W E
BARQUENTINEDISCOVERY
BARQUENTINEBARQUENTINEDISCOVERYDISCOVERY
WINDJAMMERDISCOVERY
WINDJAMMERWINDJAMMERDISCOVERYDISCOVERY
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South China Sea
BOHAI BAYBOHAI BAYBOHAI BAY
Gross Acreage: ~7 MillionGross Acreage: ~7 Million
SOUTH CHINA SEASOUTH CHINA SEASOUTH CHINA SEA
0 200
TARAKANCORE AREATARAKANTARAKAN
CORE AREACORE AREA
23
South China Sea Deepwater Exploration
Liwan 21-1 Prospect
64,000 Acre 4-Way Closure
Supported by Amplitudes
ANADARKO WI BLOCK
PROSPECTDISCOVERY
East China
Sea
PSCA 43/11APC
PSCA 42/05
LW 21-164,000 Acres
On 4-Way Closure
LW 21LW 21--1164,000 Acres64,000 Acres
On 4On 4--Way ClosureWay Closure
PSCA 29/26
Liuhua 34-2 DiscoveryWell Tested50+ MMcf/d
Liuhua 34-2 DiscoveryWell Tested50+ MMcf/d
Liuhua 29-1 DiscoveryTested
57+ MMcf/d
Liuhua 29-1 DiscoveryTested
57+ MMcf/d
Liwan 3-1 DiscoveryEst. Reserves
4 - 6 Tcf
Liwan 3-1 DiscoveryEst. Reserves
4 - 6 Tcf
0 12
Miles
BADIKDISCOVERYBADIKBADIK
DISCOVERYDISCOVERY
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Built to Deliver
Accelerating Value from Capital Capital - - Efficient Base Efficient Base Reaching Critical Mass in Shale Shale PlaysAdvancing Sanctioned Mega Projects Mega Projects
Transitioning Discoveries to Discoveries to Development Development Extending World-Class Exploration Exploration Program
PRODUCTION
EXPLORATION