I nvestor Conference John Colglazier Vice President, Investor - PowerPoint PPT Presentation

I nvestor Conference John Colglazier Vice President, Investor Relations March 2, 2010

Agenda Company Overview Jim Hackett Chairman and CEO Portfolio Performance Al Walker President and COO Worldwide Operations Chuck Meloy SVP, Operations Worldwide Exploration Bob Daniels SVP, Exploration Financials Bob Gwin SVP, Finance and CFO Closing Remarks Jim Hackett 1

Cautionary Language Regarding Forward-Looking Statements and other Matters 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. Anadarko cannot guarantee that it will successfully execute on its exploration, drilling, development or other operational plans, or meet its production or reserves guidance. See “Risk Factors” in the company’s 2009 Annual Report on Form 10-K and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements. Please also see our Web site at www.anadarko.com under “Investor Relations” for reconciliations of the differences between any non-GAAP measures used in this presentation and the most directly comparable GAAP financial measures. Cautionary Note to U.S. Investors — The U.S. Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We may use terms in this presentation, such as “net resources,” “net discovered resources,” “net risked captured resources,” “gross resources,” “gross resource potential,” “gross unrisked 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, 2009, 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. 2

Com pany Overview Jim Hackett Chairman and CEO March 2, 2010

Our Strategy I s W orking Identify and Exploration in Identify and Exploration in High- -Potential Potential Commercialize Commercialize High Resources Proven Basins Resources Proven Basins Global Business Exercise Global Business Exercise Development Financial Development Financial Discipline Approach Discipline Approach 4

Our Strategy I s W orking Identify and Commercialize Exploration in High- Resources Potential Proven Basins 3+ BBOE 3+ BBOE ~30 Deepwater ~30 Deepwater Identify and Exploration in Identify and Exploration in of Proved of Proved Exploration and Exploration and High- -Potential Potential Commercialize High Commercialize Reserves in Reserves in Appraisal Wells Appraisal Wells Resources Proven Basins Resources Proven Basins Five Years Five Years in 2010 in 2010 Six World- -Class Class Six World Managing Managing Global Business Exercise Global Business Exercise Discoveries Discoveries Success with Success with Development Financial Development Financial Producing Producing Strong Balance Strong Balance Discipline Approach Discipline Approach Sheet by 2016 Sheet by 2016 Global Business Exercise Financial Development Approach Discipline 5

Our Track Record of Delivery Continues 2009 Exceeded Expectations High-Impact Exploration Success ~360 MMBOE of Net Discovered Resources 50% Success Rate in Deep Water Industry-Leading Project-Management Skills Advanced Sanctioned Mega Projects On Time and On Budget Capital-Efficient Base Assets Maintenance Capital ~$2 Billion ~$8/BOE F&D on Near-Term Projects Financial Discipline with Commercial Mindset Reduced LOE/BOE by More Than 20% Reduced Net Debt and Improved Liquidity 6

A Strong Start to 2 0 1 0 Tweneboa Appraisal: 300+ MMBOE Gross Resources Lucius Appraisal: 200+ MMBOE Gross Resources Marcellus JV: Values Anadarko’s Interest at ~$4.5 Billion Windjammer Discovery: Major Find in Frontier Basin 7

8 EXPLORATION PRODUCTION W e Have W hat I t Takes Deep, Diversified Portfolio Strong Balance Sheet Proven Capabilities

Raising the Bar Five-Year Outlook 7 - 9% Production CAGR 150+% Reserve Replacement F&D Less Than $15/BOE Transition Discoveries to Development Line of Sight to Significant Production Growth 1,000 MBOE/d 700 400 2010 2011 2012 2013 2014 9

Built to Deliver Al Walker President and COO March 2, 2010

Converting Resources to Value Monetized Shales $1.5B 10.5+ BBOE 10+ BBOE Accelerate Production De-Risked Exploration Exploration Exploration Exploration W. Africa and Reserve Growth 3.5+ BBOE 3.5+ BBOE 3.5+ BBOE 3.5+ BBOE Shales Brazil GOM De-Risked Shales Prices and Service Costs in Equilibrium Development Development Development Development Development 4.5+ BBOE 4.5+ BBOE 4.5+ BBOE 5+ BBOE 5+ BBOE Capitalize Upon Portfolio Optionality Base Assets Base Assets Base Assets Base Assets Base Assets Base Assets Base Assets Base Assets 2.3 BBOE 2.3 BBOE 2.3 BBOE 2.3 BBOE 2.3 BBOE 2.3 BBOE 2.3 BBOE 2.3 BBOE March 2009 March 2010 11

2 0 1 0 Expectations Guidance vs 2009 2009 vs Sales Volumes (MMBOE) 226 - 231 3 - 5% Capital ($ Billion) 5.3 - 5.6 14 - 20% Reserve Replacement 130+% By Area By Type 12% 10% MIDSTREAM/ 12% SHALES OTHER MIDSTREAM/ 36% 18% 42% OTHER NEAR-TERM GULF OF MEXICO U.S. ONSHORE 20% EXPLORATION 28% 22% INTERNATIONAL/ MEGA FRONTIER PROJECTS 2010 Capital and Expensed G&G 12

Our Portfolio is Delivering Capital-Efficient Base Replaces Production Mega Projects Add Significant Oil Reserves Shale Plays Are a New Source for Growth 3+ BBOE of Proved Reserves in Five Years 4 3+ BBOE 2.3 BBOE BBOE 2 0 YE 2009 Production Base Mega Projects Shales YE 2014E 13

Delivering Grow th and Value 2010 2010 5- 5 -Year Year 2009 2009 Guidance Outlook Guidance Outlook Actual Actual Production Growth (% CAGR) 7 3 - 5 7 - 9 PGPDAS* (% CAGR) 29 10+ 10+ Reserve Replacement (%) 140** 130+ 150+ F&D ($/BOE) 15** ~16 <15 (At Constant Prices) *Production Growth per Debt-Adjusted Share Calculated Using Year-End to Year-End Share Price **Before Effects of Price Revisions 14

Capital-Efficient Base 36% NEAR-TERM ~$2 Billion Maintains 2009 Production Base ~$9/BOE Development Costs 2010 Capital Deep Inventory Drives Predictable Performance 228 14 Sales Volumes 226 12 Dev Cost/BOE 224 10 MMBOE $/BOE 222 8 220 6 218 4 216 2 214 0 2009 2010E 2011E Near-Term Capital $1.8B $2.0B $2.2B 15

Sanctioned Mega Projects Deliver Significant Oil Volumes Robust Economics and Cash Flow 22% MEGA PROJECTS Industry-Leading Cycle Times 2010 Capital Projections for Jubilee Phase I, Caesar/Tonga I, II, and El Merk 2,000 65 Development Capital EBITDAX Sales Volumes 1,500 40 MBOE/d $MM 1,000 15 500 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 16

Accelerating the Value of Shales 10% SHALES 60+% Production CAGR over Five Years ~400 MMBOE Reserve Adds at <$6/BOE F&D 2010 Capital Provides Option Value 1,000 MMcfe/d 500 0 2010 2011 2012 2013 2014 17

Line of Sight to Significant Production Grow th 1,000 MBOE/d 700 400 2010 2011 2012 2013 2014 Base Shales Sanctioned Megas 18

Our Big Boys are BI G ~1 BBOE Net Resources from Nine Discoveries Gross Resource Potential in MMBOE Itaipu Wahoo 300+ 300+ 300+ 300+ Heidelberg Vito 200+ 200+ 200+ 200+ 200+ 200+ Dev Cost/BOE Jubilee El Merk Lucius 600- -1,800 1,800 600 300+ 300+ 500- -600 600 Tweneboa 500 Caesar/Tonga 200 200- -400 400 Prior 2007 2008 2009 2010 Discovery Date 19

Visible Grow th from Mega Projects Additional Project Potential Lucius 1,300 Wahoo Tweneboa Heidelberg Vito 1,000 MBOE/d Itaipu Jubilee Phase II 700 Next Generation Windjammer Shenandoah 400 +++ 2010 2011 2012 2013 2014 2015 2016 Base Shales Sanctioned Megas Additional Projects 20

Converting Discoveries to Cash Flow Mega Program Self-Funding Over 2010 - 2014 $18+ Billion Potential EBITDAX from Program by 2016 Sanctioned and Emerging Mega Projects Profile 9,000 Development Capital EBITDAX* Cumulative Free Cash Flow 6,000 $MM 3,000 0 -3,000 2010E 2011E 2012E 2013E 2014E 2015E 2016E *Based on $75/Bbl and $6/Mcf 21