Wattenberg HZ Operations Wattenberg HZ Operations April 2012 1 - PowerPoint PPT Presentation

www.anadarko.com | NYSE: APC A N A D A R KO P E T R O L E U M C O R P O R AT I O N Wattenberg HZ Operations Wattenberg HZ Operations April 2012 1

www.anadarko.com | NYSE: APC 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. While Anadarko believes that its expectations are based on reasonable assumptions as and when made, no assurance 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 the following: t diff t i ll f th j ti ti i t d lt th t ti d i thi t ti i l di th f ll i Anadarko’s ability to meet financial and operating guidance; to achieve its production targets, successfully manage its capital expenditures and to complete, test and produce the wells and prospects identified in this presentation; to successfully plan, secure necessary government approvals, finance, build and operate the necessary infrastructure and LNG plant; to achieve its production and budget expectations on its mega projects; to successfully defend itself against any remaining claims relating to the Deepwater Horizon event (including but not limited to fines penalties and punitive damages) and BP’s ability to fulfill its indemnification obligations to event (including, but not limited to, fines, penalties and punitive damages) and BP s ability to fulfill its indemnification obligations to Anadarko; and the legislative and regulatory changes, such as the delays in processing and approval of drilling permits, exploration plans and oil response plans that may impact the Company’s Gulf of Mexico and International offshore operations resulting from the Deepwater Horizon events. Other factors that could impact any forward ‐ looking statements are described in “Risk Factors” in the company’s 2011 Annual Report on Form 10 ‐ K, Quarterly Reports on Form 10 ‐ Q, and other public filings and press releases. Readers are cautioned not to place undue reliance on forward ‐ looking statements, which speak only as of the date hereof. 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 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, 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,” “net risked resources,” “resource opportunity,” h h “ ” “ ” “ d d ” “ k d ” “ ” “estimated ultimate recovery,” “resource potential,” “resource estimate,” “gross recoverable resources,” “net resource estimate,” “gross recoverable resource,” “net resource estimate,” “discovered resources,” “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, 2011, 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 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 Anadarko Petroleum Corporation

www.anadarko.com | NYSE: APC Anadarko Petroleum Corporation  2.54 Billion BOE of Proved Reserves at Year ‐ End 2011 at Year End 2011  Approximately 4,900 Employees Worldwide  Total Assets of Approximately $52 Billion at Year ‐ End 2011  Included in the S&P 100 Index  Named Top Work Place in:  Named Top Work Place in: Houston – 2011, 2012 (Houston Chronicle) Denver – 2012 (Denver Post) 3 Anadarko Petroleum Corporation

www.anadarko.com | NYSE: APC Our Mission and Values  Anadarko’s mission is to provide a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world’s d l i l h ld’ health and welfare. Integrity and Trust Servant Leadership People and Passion Commercial Focus O Open Communication C i ti 4 Anadarko Petroleum Corporation

www.anadarko.com | NYSE: APC Committed to Safety and Environmental Excellence A Leading Role in Third ‐ Party Internal Focus on Safety Industry Initiatives Validation and the Environment Leading Participant in Environmental and Water ‐ Executive ‐ Sponsored Annual FracFocus.org – Online Public Quality Awards from Colorado Safety and Environmental Frac Fluid Registry Oil and Gas Conservation Excellence Competition C Commission i i Participating in Deepwater 5 Innovator Awards Presented in 2011 for Environmental and Response and Containment Landowner of the Year from Safety Improvements Programs: Wyoming Game & Fish Monthly Executive Reviews of Marine Well Containment Company Conservation Award from Safet and En ironmental Safety and Environmental National Wild Turkey Helix Well Containment Group Performance Federation Clean Gulf Associates Expanding Use of CNG Vehicles Earth Day Award from Utah Marine Spill Response Corporation Across U.S. Field Operations Division of Oil, Gas and Leading Best Management Practices g g Mining Mining for Water Conservation and Additional Recognitions Listed Management, and Green at www.anadarko.com Completions 5 Anadarko Petroleum Corporation

www.anadarko.com | NYSE: APC Constantly Improving Safety Performance Improving Safety Performance 1.0 R) Performance (TRIR 0.8 0.6 Safety P 0.4 Anadarko Record Anadarko Record 0.2 Safety Performance 0.0 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 6 Anadarko Petroleum Corporation Anadarko Petroleum Corporation

www.anadarko.com | NYSE: APC U.S. Onshore Overview  Anadarko’s U.S. Onshore Properties: Produce Enough Energy to Heat / Cool 15,000,000 Avg. Homes Each Day Anadarko’s Rockies Region Accounted for ~46% of Total Company Production in 4Q11 Benefited from $1+ Billion in Capital Investment in 4Q11 Benefited from $1+ Billion in Capital Investment in 4Q11 Anadarko Invested ~$575 Million in its Rockies Operations in 4Q11 Provide Direct Employment for 3,000+ Men and Women Anadarko Directly Employs ~950 Men and Women in Colorado MARCELLUS 6+ Tcf Net Risked Resources Ne Net A t Acre reage: ~1 ~15 Million 5 Million POWDER RIVER PO RIVER GREE GREEN RIVER N RIVER UTICA ~300,000 Gross Acres WATTE TTENBE NBERG HAYNESVILLE GNB GNB HBP Acreage HBP Acreage SHALE PLAY PERMIAN PERMIAN NA NATURAL GAS TURAL GAS OIL AND GAS OIL AND GAS EAGLEFORD/PEARSALL ~350 MMBOE Net Risked Resources 7 Anadarko Petroleum Corporation

www.anadarko.com | NYSE: APC Wattenberg HZ: A Superior Growth Opportunity  500 MM to 1.5 BBOE Net Resources ~350,000 Net Acres in Core Wattenberg 1,200 ‐ 2,700 Horizontal Drill Sites 300 ‐ 600 MBOE EUR per Well  Enhanced Returns Weld Mineral Interest Ownership Larimer Midstream Value Uplift p f  Positioned to Deliver Today Morgan Infrastructure in Place Boulder Wattenberg Field Producing Wattenberg Field Producing ~80 MBOE/d Net Adams Jefferson Denver Denver Sales ‐ Volumes Mix Arapahoe Gas 10 Miles 30% Douglas Elbert Oil 60% NGL NGL APC L APC Land Grant and Leasehold d G d L h ld 10% Core Wattenberg Area Area of Activity 8 Anadarko Petroleum Corporation

www.anadarko.com | NYSE: APC Wattenberg HZ: Premier Land Position and Mineral Ownership ~350,000 Net Acres in Core Wattenberg , g  Mineral Ownership Supercharges Economics Weld Larimer Anadarko Owns Minerals on Two ‐ Thirds of Acreage APC Land Grant and Leasehold Core Wattenberg Area Morgan in Core Wattenberg Boulder Area of Activity Adams 96% WI with 88% NRI h Jefferson J ff Denver Denver Arapahoe Douglas 10 Miles Elbert  Royalty Benefit from Non ‐ Op Production on Land Grant Anadarko Economics Enhanced Anadarko Economics Enhanced by Land Grant Position Wattenberg Field Net Sales Volumes BTAX PV10 (Millions) $19.2 120 80% APC Mineral $4.7 $4.7 Ownership Ownership Advantage 60% 80 $14.5 ent Liquids MBOE/d 40% Perce M $7.2 40 20% $2.4 $4.8 0 0% 2008 2009 2010 2011 2012E 2013E 300 MBOE EUR Well 600 MBOE EUR Well Based on $4.5 Million Well Cost & NYMEX Unescalated Prices of $100/Bbl and $3.25/Mcf 9 Anadarko Petroleum Corporation

www.anadarko.com | NYSE: APC Benefits for Local Colorado Economies  Paid More than $500 Million in Taxes, Royalties and Salaries Since 2007  Expect to Invest ~$1 Billion in Capital in 2012  Expect to Invest $1 Billion in Capital in 2012 Invested $1.5 Billion in Capital Since 2007  Employing ~1 000 Men and Women in Colorado  Employing 1,000 Men and Women in Colorado Providing Indirect Employment for Thousands of Local Contractors, and Inducing Employment for Many More in Various Service Industries 1 0 Anadarko Petroleum Corporation