andarko petroleum ubs 2013 global o&g conference presentation

8/12/2019 Andarko Petroleum UBS 2013 Global O&G Conference Presentation

1/22

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

www.anadarko.com | NYSE: APC ANADARKO PETROLEUM CORPORATION

INVESTOR RELATIONSCONTACTS:

John Colglazier

Vice President832/636-2306

Brian KuckManager

832/636-1397

Bill TedescoManager

832/636-3375

Frank PattersonVP, International Exploration

May 22, 2013


2/22


3/22

A N A D A R K O

www.anadarko.com

NYSE: APC

2www.anadarko.com | NYSE: APC

Anadarkos Competitive Advantage

Values-Based Culture with Focus on Safety and Continuous Improvement

Predictable, Repeatable U.S. Onshore; Low-Cost Operator

High-Margin Oil Mega Projects

World-Class Exploration

Active Portfolio Management

ResourceConversionInvestmentReturns ValueAcceleration


4/22


5/22

A N A D A R K O

www.anadarko.com

NYSE: APC


Anadarko Delivered Outstanding Results in 2012

268 MMBOE Sales Volumes: 8% YOY Growth434 MMBOE Reserve Adds for $14.65/BOE*

Predictable, Repeatable Growth

28% YOY U.S. Onshore Drilling-Efficiency Improvement9% YOY Reduction in LOE/BOE

Efficiency Improvements

67% Deepwater Exploration/Appraisal Success Rate2 of the Worlds Largest Discoveries

Industry-Leading Exploration

$1+ Billion of Monetized Assets$6.8+ Billion Market Value Established from IPO of WGP

High-Graded Portfolio

$2.5 Billion - Fully Repaid Revolving Credit Facility$0.9 Billion Adjusted Free Cash Flow

Financial Discipline

*Before the Effects of Price Revisions


6/22

A N A D A R K O

www.anadarko.com

NYSE: APC


Anadarko is Positioned to Deliver in 2013

Sales Volumes (MMBOE)* 279 - 287

Capital (Billions)** $7.2 - $7.6

Reserve Replacement 150+%

F&D ~$15/BOE

*Includes Ethane Rejection Assumptions and Anticipated Weather/Facility Downtime

**Excludes WES Capital Investments and Assumes Carried-Interest Agreements for Heidelberg and Mozambique

U.S. ONSHORE

60%

MIDSTREA

M/OTHER

10%

EXPL

INTERNATIONAL

15%

GULF OF MEXICO

15%

2013 Capital Allocation by Area

206220

235248

268279 - 287

296 - 306

30%

40%

50%

60%

100

225

350

2008 2009 2010 2011 2012 2013E2014E

PcLqd

SalesV

olumes(MMBOE)

Demonstrated Liquids Growth10% Liquids CAGR


7/22A N A D A R K O

www.anadarko.com

NYSE: APC


Predictable Growth, Expanding Margins and Value Upside

Confident in 5 - 7% Production CAGR through 2020 at Current PricesAchieved through Identified and Producing Assets

Increased Growth Potential with Sustained $4.50+ Natural Gas Prices

Exploration Provides Additional Value Upside and Optionality

0

100

200

300

400

500

600

2012 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E

Growth from Higher-Margin Liquids

Oil/Liquids Gas Additional Gas at $4.50/Mcf


8/22A N A D A R K O

www.anadarko.com

NYSE: APC


U.S. Onshore: Accelerating Value and Enhancing Margins

10% Sales-Volume Growth to~570,000 BOE/d

35% Growth in Oil Volumes

Allocating Capital to ProjectsGenerating 30 - 100+% ROR

GNB

Operated Wells 200+

89

2012 2013E

PERMIAN

Operated Wells 100+

172012 2013E

EAGLEFORD

Operated Wells 250+

332012 2013E

EAST TEXAS

Operated Wells 75+

392012 2013E

MARCELLUS

Operated Wells 70+

54

2012 2013E

WATTENBERG

Operated Wells 300+

912012 2013E

2013 Planned Activity

~90~120

~80

~50~50

~20

~$12/BOE Reserve-Replacement Cost

Wedge Volumes Added at $35,000 per

Flowing BOE/d

Midstream Expansion to Enable Growth

Sales Volumes (MBOE/d)







9/22A N A D A R K O

www.anadarko.com

NYSE: APC


5.3

2.4

350 MBOE EUR Well

1.0 to 1.5 BBOE Net Resources~4,000 Horizontal Drill Sites

350 MBOE EUR per Well

Optimizing Lateral Lengths, Spacing and Completions

$6.7 Million BTAX NPV per Well100+% ROR at Current Prices

Converting $2 Billion BTAX Value in 2013Doubling Well Activity to 300+ Planned Wells

Expanding Enabling Infrastructure

Mineral Interest Enhances Returns

Wattenberg: Accelerating $15+ Billion of Value

~350,000 Net Acres in Core Wattenberg

Arapahoe

Adams

Morgan

Jefferson

Douglas

Boulder

Elbert

Larimer

Denver

10 Miles

4855 61

73

91

~120

0

70

140

2008 2009 2010 2011 2012 2013E

M

Increasing Sales Volumes

Based on $4.3 Million Well Cost & Unescalated

NYMEX Prices of $90/Bbl and $3.50/Mcf

Anadarko Economics Enhancedby Land Grant Position

($ Millions)

7.7APC Mineral

OwnershipAdvantage

APC Land Grant and Leasehold

Core Wattenberg Area

Area of 2013 Activity


10/22A N A D A R K O

www.anadarko.com

NYSE: APC


Wattenberg: Expanding Infrastructure Advantage

Year-End2012 InfrastructureGas Gathering Pipelines ~3,000 Miles

Oil Gathering Pipelines 32 Miles

Processing Capacity 400 MMcf/d

Compression 110,000 HP

Gas Gathering System Capacity 450 MMcf/d

Oil Gathering Throughput 12 MBOPD

Expanding Compression, Gathering andProcessing

Oil Rail Terminal Expected in Service 3Q13

Front Range NGL Pipeline Expected inService 4Q13

300 MMcf/d Lancaster Cryo Plant Expectedin Service 1Q14

Evaluating Expansions

0

200

400

600

800

1,000

Jan-12 Jul-12 Jan-13 Jul-13E Jan-14E

PlantInlet(MMcf/d)

Gas Processing Capacity Aligned

with Production Growth(Illustrated through 1Q14)

0

20

40

60

80

100

120

Jan-12 Jul-12 Jan-13 Jul-13E Jan-14E

MBOPD

Oil Takeaway Capacity Aligned

with Production Growth(Illustrated through 1Q14)



www.anadarko.com

NYSE: APC


18

2133

~50

0

10

20

30

40

50

2009 2010 2011 2012 2013E

MBOE/d

Increasing Sales Volumes

~600,000 BOE EUR per Well2,500+ Identified Drill Sites

65% Liquids Composition

Large-Scale Infrastructure Additions200 MMcf/d Brasada Plant Expected inService 2Q13

NGL and Gas Line to Premium Markets

Industry-Leading Drilling Cycle Times

Eagleford: Delivering Significant Growth

$1.0

$1.5

$2.0

0

5

10

15

20

2010 2011 1Q12 2Q12 3Q12 4Q12

AgCPWeMo

Days

Drilling Efficiencies and Cost Control

Spud to RR Cost per Well

Brasada Plant Construction

~400,000 Gross Acres~200,000 Net Acres



www.anadarko.com

NYSE: APC


Consistent, On-Time, On-Budget DeliveryStandardized Process, Technology andEquipment

Accelerate Value through Carried-Interest Agreements

Lucius - $556 Million

Heidelberg - $860 Million

Mozambique - TBD

Significant Future EBITDAX Generationfrom Identified Mega Projects

Mega Projects: Delivering High-Impact Growth and Cash Flow

*Assumes Carried-Interest Agreements for Heidelberg and First Two Trains in Mozambique

0

90

180

Es

timatedSalesVolumes(MBOE/d)

Advancing Identified Mega Projects

Jubilee / MTA

Caesar / Tonga

El Merk

Lucius

Heidelberg

TEN Complex

Mozambique

First 2 Trains

2010 2020E

0

2,500

5,000

2010 2011 2012 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E

$Millions

Capex

EBITDAX

Identified Mega Projects Deliver Significant Value*(Based on Unescalated NYMEX Prices of $90/Bbl and $3.50/Mcf)



www.anadarko.com

NYSE: APC


Sub-Salt Pliocene

Norphlet

Gulf of Mexico: Enhancing High-Margin Oil Projects

Anadarko WI Block

Planned Activity

APC Discovery

Lower Tertiary

Lucius Unit28% WI

Heidelberg31.5% WI

Caesar/Tonga34% WI

Miocene

Caesar/Tonga200 - 400 MMBOE Resource

$1 Billion Capital Avoided byLeveraging Existing Infrastructure

Oil Production Began 1Q12

4th Well On Line Mid-2013

Shenandoah Basin

Emerging Development Area

140

144

9998

Shenandoah

Basin

96

95

5251

Yucatan

15% WI 143

Lucius300+ MMBOE Resource

Expected Capital Carried through FirstProduction

World-Class Reservoir Quality andDeliverability

On Time, On Budget for First Oil 2014

Heidelberg200 - 400 MMBOE Resource

Expected Capital Carried throughFirst Production

Replicating Lucius Spar Design

Ordered Long-Lead Items

First Oil Anticipated Mid-2016

Shenandoah30% WI

Coronado

15% WI


14/22

A N A D A R K O

www.anadarko.com

NYSE: APC


Ghana and Algeria: High-Margin Oil Producers

Algeria

~1.7 Billion Barrels of Gross Oil Producedto Date

Enhanced Value from TPE Resolution

El Merk Achieved First Oil

Expected Ramp to ~30,000 Bbl/d by YE13

Drives 10+% YOY Algeria Growth

Ghana

Jubilee: Producing ~110,000 BOPD

TEN: Second Major Oil Development

Miles

100

West Cape Three Points

31% WI

Deepwater Tano

18% WI

Ntomme

Tweneboa

Enyenra

Teak

Mahogany

Akasa

Jubilee

Wawa

Planned

FPSO

Block 404a

PK0

Block 208

0 10

Miles

HBNS CPF

Ourhoud CPF

El Merk CPF

Anadarko WI BlockOil FieldGas Condensate FieldProspect


15/22

A N A D A R K O

www.anadarko.com

NYSE: APC


35 to 65+ Tcf of Recoverable Natural GasDISCOVEREDMASSIVERESOURCE

Wells Capable of Producing 100 - 200 MMcf/dCONFIRMEDRESERVOIRQUALITYAND

DELIVERABILITY

Supports Initial LNG Trains for ProsperidadeRECEIVEDRESERVESCERTIFICATION

Maintained Schedule for First Cargo in 2018SIGNEDHOA WITHAREA-4 OPERATOR

Offshore Gathering and Onshore ConstructionAWARDEDCOMPETITIVEFEED CONTRACTS

Mozambique: Advancing Toward 50 MMTPA

0

800

1,600

2018E 2020E 2022E 2024E 2026E 2028E 2030E 2032E 2034E 2036E 2038E 2040E 2042E 2044E

MBOE/

d

Mozambique Offshore Area 1: Notional 50 MMTPA Gross Production

0

20

4060

80

100

MMTP

A

Projected Liquefaction Capacity

Assumes Future 10-Train Mozambique Development


16/22

A N A D A R K O

www.anadarko.com

NYSE: APC


Exploration: Focusing on Play-Opening Opportunities

Leveraging Exploration Success

Testing New Plays

Expanding the Portfolio

Planned 2013 Activity

Planned Divestiture

6 - 8 Exploration / Appraisal Wells

~3 MM AcresGulf of Mexico

Seismic Acquisition and Processing

~13 MM AcresSouth America

2 Exploration Wells

~15 MM AcresNorth Africa


~5 MM AcresWest Africa

Seismic Acquisition and Processing

~23 MM AcresSouth Africa


~6 MM AcresMozambique

2 Exploration Wells

~6 MM AcresKenya

1 - 2 Exploration Wells

~2 MM AcresSouth China Sea

~1 Exploration Well

~10 MM AcresNew Zealand

2013 Net Discovered Resources Target: 800+ MMBOE

~25 Deepwater Exploration/Appraisal Wells


17/22

A N A D A R K O

www.anadarko.com

NYSE: APC


Mozambique: Focusing on Upside Potential

~6 MM Gross Acres

MOZAMBIQUE

0 15

Miles

Tubaro

Linguado

Offshore Area 1

APC Operated

36.5% WI

Moreia

Espadarte

Anadarko WI Block

Planned Drilling

Natural Gas Field

Prospects

A

A

ESPADARTE 1

ORCA

DISCOVERY

GOLFINHO

DISCOVERY

LINGUADO 1MOREIA 1

A A

Exploring Full Stratigraphic

ColumnLow-Dip Stratigraphic andStructural Traps

2013 Planned Activity4 - 5 Exploration Wells

2 - 3 Appraisal Wells

Orca


18/22

A N A D A R K O

www.anadarko.com

NYSE: APC


Kenya: Testing a New Deepwater Basin

Potential for Oil

Very Large Traps

Significant Follow-On Prospects

Farm-Out Recovered Historical Costs

Partial Drilling Carry

KIBOKO-1A A

Jurassic

Carbonate

Upper

Cretaceous

Lower

Cretaceous

0 25

Miles

Anadarko WI Block

Planned Drilling

Prospects

Seismic

~6 MM Gross Acres

KENYA

APC Operated

45% WI

L-11A

L-11B

Kiboko

A A


19/22

A N A D A R K O

www.anadarko.com

NYSE: APC


Sub-Salt Pliocene

Norphlet

Gulf of Mexico: Expanding Success

GULFOFMEXICO

~ 3MM Gross Acres

Anadarko WI Block

Planned Drilling

APC Discovery

Miocene

Deep Nansen

35% WI

Yucatan

15% WI

K2 Deep

42% WI

Haleakala

67% WI

Stromboli

50% WI

Raptor

50% WI

Outstanding Success in Shenandoah Basin

Phobos Discovery Drilling First Norphlet Test at Raptor

Lower Tertiary

Shenandoah30% WI

Coronado15% WI

Phobos30% WI


20/22

A N A D A R K O

www.anadarko.com

NYSE: APC


Exploration: Creating Unmatched Value and Optionality

2004-20

12

NETDISCOVEREDRESOURCES 5+ BBOE

CAPITALINVESTED ~$8 Billion

MONETIZED ~$8 Billion

VALUERETAINED~200 MBOE/d Net Production

~4 BBOE Resources

LuciusHeidelberg

Mozambique

Vito

Shenandoah

PaonFuture Discoveries

Indonesia

Brazil

DISCOVERY

OPTIMIZE

APPRAISE

DIVEST0

50

100

150

200

250

300

350

ProductionRate

(MBOE/d)

Significant Value Retained

Mozambique

TEN

Heidelberg

Lucius

Caesar Tonga

Avalon

Jubilee

Eagleford

Marcellus


21/22

A N A D A R K O

www.anadarko.com

NYSE: APC


Exercising Financial Discipline

$3.7 Billion of Cash on Hand as of 1Q13

2013 Capital Investments within Cash Flow

Cash Flow Protected with Tactical Hedges

Planned and Opportunistic Monetizations$1.2+ Billion of Monetizations in 1Q13

Anticipate Periodic WES and WGP Transactions

$500 Million Asset Sale Completed from APC to WES

Strengthening the Balance SheetNet Debt to

Adjusted Capital

Year-End 2011 41%

Year-End 2012 34%As of 1Q13 32%


22/22

A N A D A R K O

www.anadarko.com

NYSE: APC

21www anadarko com | NYSE: APC

Providing Transparent Growth with Unmatched Optionality

ResourceConversionInvestmentReturns

ValueAcceleration

Values-Based Culture of Safety and Continuous Improvement

Predictable, Repeatable U.S. Onshore; Low-Cost Operator

High-Margin Oil Mega Projects

World-Class Exploration

Active Portfolio Management

andarko petroleum ubs 2013 global o&g conference presentation

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