2015 APC Investor Conference Call Appendix · 2015 Anadarko Investor Conference Call Appendix. NYSE: APC | ... 640 724 727 Constitution 100% WI

INVESTOR RELATIONS John Colglazier Senior Vice President 832/636-2306

Robin Fielder Director832/636-1462

Jeremy SmithDirector832/636-1544

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

March 3, 2015

2015 Anadarko Investor Conference Call Appendix



Enhancing Drilling Performance

U.S. Onshore: $8+ Billion Capital Savings Since 2009

2

$0

$1

$2

$3

$4

$5

$0

$500

$1,000

2009 2010 2011 2012 2013 2014

Bill

ions

$/Fo

ot

~$4.5 Billion Captured Completion Savings

$/Completed Foot Cumulative Savings

$0

$1

$2

$3

$4

$5

$0

$150

$300

2009 2010 2011 2012 2013 2014

Bill

ions

$/Fo

ot

~$3.8 Billion Captured Drilling Savings

$/Drilled Foot Cumulative Savings

Optimizing Completion Performance



U.S. Onshore: Reducing Unit Costs & Increasing Liquids Mix

3

$3.67

$3.48$3.57

$3.06 $3.01 $3.02

20%

30%

40%

50%

$2

$3

$4

2009 2010 2011 2012 2013 2014

Liqu

ids

Com

posi

tion

LOE/

BO

E

LOE/BOE Liquids Composition



1714

11 10

10,000

11,000

12,000

13,000

14,000

0

20

2011 2012 2013 2014

Avg

. MD

(Fee

t)

Day

s

Spud to Rig-Release Cycle TimeOptimizing Results Through Efficiencies

40+% Improvement in Drilling Cycle Time

Maximizing Recovery Through SpacingDrill 12 - 24 Wells per Section

Wattenberg: Continued Optimization Expands Resources

4

StructureTarget ZoneLateral LengthWell SpacingCompletion DesignProduction Management

1.0

2.0

0

2.5

2011EMidpoint

ExpandedWell

Opportunity

WellPerformance

DownspacingUpside

2015E

BB

OE

Expanding Net Resources

0

25

50

0 90 180

Cum

ulat

ive

Oil

(MB

O)

Days On Line

Enhanced Type-Well Performance

2013 2014

SCIENCE INCREASES CONFIDENCE



~1 MMBOE EUR per Well30+% Liquids Composition~$7 Million Current Well Costs

Access to Premium Markets

East Texas/North Louisiana: Efficiency Gains Drive Returns

5

Henderson

Elm GroveHarrison

Marion

Gregg

Carthage

TEXA

S

LOU

ISIA

NA

Upshur

Rusk

De Soto

Caddo

Bossier

Red RiverPrimary Targets:HaynesvilleCotton ValleySEC

$0

$200

$400

$600

$800

0

20

40

60

80

2010 2011 2012 2013 2014 2015E

Mill

ions

MB

OE/

d

Predictable Sales Volumes

Volumes Net Capital

400

600

800

1,000

0

1,000

2,000

2011 2012 2013 2014M

MB

OE

Com

plet

ed L

ater

al

Leng

th ($

/Foo

t)

Enhancing Margins and Recoveries

Cost/Foot Average EUR

TEXAS

E. TEXAS/N. LOUISIANAGross Acres: ~300,000Net Acres: ~210,000

APC Acreage

2015 Planned ActivityOperate ~3 Rigs

Drill 30+ Wells

LA

Based on NYMEX strip oil prices as of 2/24/2015

0%

10%

20%

30%

40%

50%

$2 $3 $4

Ope

rate

d B

TAX

RO

R

Realized Gas Prices ($/Mcf)

Robust Returns



1,000+ Identified Drilling Locations~300,000 BOE EUR per Well90+% Oil Composition

$442 Million Carry for 34% InterestExisting Midstream Infrastructure

Eaglebine: Short-Cycle Oil Opportunity

6

APC Acreage

Wells in Progress

Producing Wells

JV AMI

TEXAS

2015 Planned ActivityOperate ~1 Rig

Drill ~20 Wells

Robertson

Brazos

Milam

Burleson

Lee

5 Miles

EAGLEBINEGross Acres: ~150,000

Net Acres: ~92,000

0

350

700

1Q14 2Q14 3Q14

30-D

ay IP

(BO

PD)

Increased Well Performance

Core HBP Acreage Position

Most Recent Wells



2015 Minimal Drilling Activity

Ramp Activity with Improved Differentials

~4,500 Identified Drilling Locations at Higher Natural Gas Prices

Marcellus: Massive Resource Option Value

7

NEW YORKPENNSYLVANIA

PotterTioga BradfordNon-Operated

Anadarko Operated

CentreClinton

Lycoming

Sullivan

20 Miles

0%

50%

100%

$2 $3 $4

BTA

X R

OR

Realized Natural Gas Price ($/Mcf)

Marcellus Returns

MARCELLUSGross Acres: ~654,000Net Acres: ~254,000

APC Acreage

PENNSYLVANIA

0

200

400

600

2009 2010 2011 2012 2013 2014 2015E

MM

cf/d

Net Sales Volumes

Core HBP Acreage Position



Scalable DevelopmentInfrastructure in Place

Focus on Margins and EfficienciesLow Cost Operation $3.36/BOE

Large Remaining Inventory

Greater Natural Buttes: Predictable Delivery

8

0

5,000

10,000

$3 $4 $5 $5+

Loca

tions

Identified Drill Sites at Various Gas Prices

Note: Identified drilling locations with a positive NPV-10 at various NYMEX gas prices and constant service costs. Assumed 10% capital reduction.

$0.7

$0.9

$1.1

$1.3

4

6

8

10

2009 2010 2011 2012 2013 2014 2015E

Mill

ions

Day

s

Drilling Cycle-Time Improvement

Drilling Cycle Time Drilling Cost Per Well

GREATER NATURAL BUTTESNet Acres: ~196,000

APC Acreage

UTAH

2015 Planned ActivityOperate ~1 Rig

Drill ~60 Wells

25 Miles

Uintah County

UTAH

$0

$300

$600

0

100

2009 2010 2011 2012 2013 2014 2015E

Mill

ions

MB

OE/

d

Sales Volumes

Volumes Net Capital



Minerals-Interest Ownership: Accelerating Value

9

WYOMING

COLORADO

Moxa Wamsutter

Anadarko’s Land Grant Position

UTAH

40 Miles

Wattenberg

Monell

CoalSoda Ash

APC Mineral Ownership Advantage

$1.1

$0.8

$1.9

Laramie County Economics Enhanced by Minerals-Interest Ownership

BTAX NPV-10 (Millions)

Based on NYMEX strip prices as of 2/24/2015

2014 Minerals-Interest Royalty Revenues~$675 Million Oil & Gas

~$100 Million Coal, Soda Ash & Other

APC Land GrantProducing FieldsHard Rock Minerals

LARAMIE COUNTY, WY200,000 Net Acres

Multi-Zone Oil Opportunity1,000+ BOE/d 24-Hour IP RatesMinerals-Interest Uplift Advantage

~8 Million Acres Concentrated

Minerals-InterestOwnership

APC Acreage

Drilled Wells

Laramie County

Silo Field

Hereford Field

WYOMINGCOLORADO



Enables Asset Operational ControlEnsures Timely Well ConnectionsImproves Price Realizations

Midstream: Integrated with Upstream Activity

Large-Scale Operations~19,000 Miles Pipeline

~6 Bcf/d Throughput

3+ Bcf/d Processing Capacity

Front Range

OPPL

White Cliffs

GNB (MMcf/d)Year 2014ProcessingCapacity 970

Eagleford (MMcf/d)Year 2014ProcessingCapacity 200

Wattenberg (MMcf/d)Year 2014 2015EProcessingCapacity 875 1,175

Enterprise

Conway, KSNGL HUB

Cushing, OKWTI HUB

ChipetaLancaster

WattenbergPlatte Valley

Brasada

MAPL / Seminole

Delaware Basin (MMcf/d)Year 2014 2015EProcessingCapacity 425 625

Texas Express

ETC Mt. Belvieu, TXNGL HUB

0

3,000

6,000

9,000

$0

$400

$800

$1,200

2009 2010 2011 2012 2013 2014 2015E

MM

cf/d

Mill

ions

Midstream Asset-Level EBITDA*& Throughput Volumes

EBITDA Throughput

Processing Plant

Market Center

Oil Equity Pipeline

NGL Equity Pipeline

NGL Pipeline

10

*Includes WES EBITDANote: See appendix slides for non-GAAP financial measures

RamseyBonesMi Vida



Caesar/Tonga 250 - 350 MMBOE Gross ResourcesLeveraged Infrastructure: $1 Billion Capital AvoidedFirst Oil Achieved in 20122 Planned Development Wells

K2Low-Risk, High-Margin, Oil OpportunitiesLeverage Existing InfrastructureRiser Gas Lift Project Approved2 Planned Development Wells

Caesar/Tonga & K2: High-Value GOM Assets

11

518

562561

606605

519

563

608

K2 Unit41.8% WI

Marco Polo100% WI

Ticonderoga50% WI

Tahiti

GREEN CANYON

771768

726

680

770

679 683

640

727724

Constitution100% WI

GULF OF MEXICOGross Acres: ~2.3 Million

Caesar/Tonga K2

GREEN CANYON

Caesar/Tonga33.75% WI

APC WI BlockSuccessful WellPlanned DrillingOil FieldProspectSaltSubsea Tieback

Warrior55% WI



Increased Capability Reduces Days on Location2.5 Million Pound Hook Loads2 BOP Stacks with Dual Activity Capability

Upgraded Deepwater Rig Fleet Enhances Efficiency

12

Ocean BlackHornet

Noble Bob Douglas

Note: Excludes Spot Market Rigs

Rig Fleet 2015 2016 2017 2018 2019 2020

Ensco 8500

Ensco 8506

Belford Dolphin

Noble Bob Douglas*

Rowan Resolute*

Bolette Dolphin*

Ocean BlackHawk*

Ocean BlackHornet*

* Rigs with 2 BOP stacks and 2.5 million pound hook loads



Significant Value CreationExcellent Transmissibility

High PermeabilityThick and Continuous ReservoirsLow Fluid Viscosity

2015 Appraisal WellUp-Dip and Northwest of Shenandoah-2

Shenandoah: Advancing Giant Discovery Toward Development

13

APC WI BlockAPC DiscoverySuccessful WellPlanned DrillingOil FieldSalt


52 53

97

51

95WALKERRIDGE

Shenandoah30% WI

Shenandoah-4

Yucatan25% WI

A

A’

YUCATAN-1 YUCATAN-2 SHEN-1SHEN-3 SHEN-4SHEN-2

Cretaceous

Oligocene

Upper WilcoxLower Wilcox

Lower Miocene

A A’

Salt Shenandoah-3 ConfirmedDepositional ModelLateral Sand Continuity and QualityDown-Dip Thickening

• Found ~50% More Net SandProjected Oil-Water Contacts

Shenandoah-3Shenandoah-2



Miocene Subsalt 3-Way Trap

Prolific Petroleum SystemHigh-Quality Reservoirs

~26,000 Feet TVD

Yeti: Drilling Under Way


YETI BIGFOOT

Plio-Pleistocene

Mesozoic

Wilcox

Upper MioceneMM9

MM7

LM4MM4

A A’

Miocene

Salt

14

WALKERRIDGE

117

GREENCANYON Bigfoot

~300 MMBOE

Cascade~300 MMBOE

160159158157

Yeti37.5% WI

A’

A

APC WI BlockOil FieldProspectSaltIndustry Discovery



Miocene Unconfined Fan System

Large Upside Potential

~15,000 Feet TVD

Opal: New Play Concept

15

DESOTO CANYON

Miocene Reservoir

808 809

852 853 854

897 898

942

A

A’

Opal50% WI

855

899 900

OPAL-1

Jurassic

A’

Cretaceous

BasementSource Rocks

Migration Pathway

Salt

Jurassic

A

APC WI BlockPlanned DrillingProspectShale-Filled Channel




Subsalt 3-Way TrapProlific Miocene Sand Fairway~30,500 Feet TVD

Thorvald: Opportunity in Proven Area

16

MISSISSIPPICANYON

Kodiak~60 MMBOE

Tubular Bells~150 MMBOE

Kaikias~75 MMBOE Thorvald

50% WI

Gunflint~60 MMBOE

814

APC WI BlockPlanned DrillingOil FieldProspectSaltIndustry Discovery

A’

ATHORVALD-1 KODIAK POSEIDON TUBULAR BELLS

Oligocene

UM1

MM9

MM7

Mesozoic

Plio-Pleistocene

Top Miocene

Miocene Sand-Rich Interval

Source Interval

A’A

Salt

PayInterval




Planned Paon Appraisal Well and DSTEvaluating Development OptionsPotential for Fast-Track Development

Maturing CI-528/529 ProspectsExploration Well Planned

Ivorian Basin: Advancing Paon Commerciality

17

AFRICA

CÔTE D’IVOIREGross Acres: ~1.3 Million

Paon 2A

CI 52990%WI

CI 52890%WI

CI 10365%WI

10 miles16 km

CÔTE D’IVOIRE

Paon-1X

Paon-3ARPaon-4A

Paon-5A

APC WI BlockAPC DiscoverySuccessful WellPlanned DrillingOil FieldProspects/Leads

Commercializing PaonEstablished Oil-Water ContactVerified Lateral Sand Continuity Reduced UncertaintyDST and Offset MonitoringCommercial NegotiationsTransition to Development



Premier Acreage Position Geologic Setting Similar to MozambiqueOil Potential

2015 Drilling ProgramKronos: Large 3-WayCalasu: Multi-Target 4-WayMaturing Follow-On ProspectsLarge Resource Potential

Grand Col AreaPlanned 3D Seismic Acquisition

Colombia: Drilling Under Way in Frontier Basin

18

COLOMBIAGross Acres: ~16 Million

GRAND FUERTEAREA50% WI

Calasu

GRAND COL AREA

100% WI

SOUTHAMERICA

COLOMBIA

CALASU

Reservoir

KRONOS

50 miles80 km

Kronos

APC WI BlockPlanned DrillingProspects/LeadsSeismic

A’A B’B

A’

A

B’

B



High-Quality Reservoir Sand Development

Established Working Petroleum System

Multiple Large Traps Remain Untested

Drill Mlima: ~30,000-Acre 4-Way

Kenya: Applying Learnings to New Activity

19

KIBOKO-1MLIMA-1MPAKA

30 miles48 km

MbawaDiscovery

L-1245% WI

L-11A45% WI

L-11B45% WI

L-0745% WI

L-0545% WI

Mlima

Mpaka

Kubwa

Kiboko

KENYA AFRICA

KENYAGross Acres: ~5.6 Million

A

A’

A A’

APC WI BlockPlanned DrillingGas FieldProspects/LeadsIndustry Discovery

Basement

PossibleSource Rock

PossibleSource Rock

A A’



Canterbury Basin: ~4 Million AcresIncorporating Drilling Results3D Seismic Under Way

Pegasus Basin: ~2 Million Acres

New Caledonia Basin: ~36 Million AcresPetroleum Prospecting PermitPlanned 2D and Multi-Beam Bathymetry

New Zealand

20

NEW ZEALANDGross Acres: ~42 Million

AUSTRALIA

NEW ZEALAND

APC WI BlockProspect/LeadsSeismic

PEGASUS BASIN100% WI

NEWZEALAND

NEW CALEDONIA BASIN25% WI

CANTERBURY BASIN45% WI

Caravel25 miles40 km



Glossary of Terms

21

EqualizedProduct Mix or

Increase in Liquids?

M: ThousandsMD: Measured Depth MM: MillionsMTA: Mahogany, Teak, AkasaNGL: Natural Gas LiquidsNPV: Net Present ValueNYMEX: New York Mercantile ExchangePHA: Production-Handling AgreementPK0: Point Kilometrique 0 PSI: Pounds per Square InchROR: Rate of ReturnRR: Rig ReleaseS&P: Standard & Poor’sT: TrillionTEN: Tweneboa, Enyenra, NtommeTPA: Tonnes per AnnumTRIR: Total Recordable Incident RateTVD: True Vertical Depth YE: Year EndYOY: Year over YearWES: Western Gas Partners, LPWGP: Western Gas Equity Partners, LP WI: Working InterestWTI: West Texas Intermediate

AMI: Area of Mutual Interest Avg.: AverageAXPC: American Exploration and Production CouncilB: BillionBbl: BarrelBBl/d: Barrels of Liquid per DayBO: Barrel of OilBOE: Barrel of Oil Equivalent BOE/d: Barrel of Oil Equivalent per DayBOPD: Barrels of Oil per DayBTAX: Before Tax cf: Cubic Feet of Natural Gascf/d: Cubic Feet per DayCI: Côte d'IvoireCPF: Central Processing Facility DST: Drill Stem TestE&P: Exploration and Production EBITDA: Earnings Before Interest, Tax, Depreciation and AmortizationEBITDAX: Earnings Before Interest, Tax, Depreciation, Amortization and Exploration Expense EUR: Estimated Ultimate RecoveryEV: Enterprise ValueF&D: Finding and Development Cost

FCF: Free Cash FlowFEED: Front-End Engineering DesignFID: Final Investment DecisionFPSO: Floating Production Storage and Offloading UnitFt: FeetG&G: Geology and Geophysics GAAP: Generally Accepted Accounting PrinciplesGNB: Greater Natural ButtesGOM: Gulf of MexicoGP: General Partner HBNS: Hassi Berkine Sud (South) HBP: Held by ProductionHOA: Heads of AgreementHP: HorsepowerHSE: Health, Safety and Environment HZ: HorizontalIP: Initial Production RateIPA: Independent Producers of AmericaJV: Joint VentureKm: KilometersLNG: Liquefied Natural GasLOE: Lease Operating ExpenseLP: Limited Partnership



This list of non-GAAP financial measure definitions and related reconciliations is intended to satisfy the requirements of Regulation G of the Securities Exchange Act of 1934, as amended. This information is historical in nature. Anadarko Petroleum Corporation (the “Company”) undertakes no obligation to publicly update or revise any non-GAAP financial measure definitions and related reconciliations.

Non-GAAP Financial Measure Definitions & Reconciliations

22



Adjusted EBITDAX (EBITDAX)The Company defines Adjusted EBITDAX as income (loss) before income taxes; exploration expense; depreciation, depletion, and amortization; impairments; interest expense; total (gains) losses on derivatives, net, less net cash from settlement of commodity derivatives; and certain items not related to the Company’s normal operations, less net income attributable to noncontrolling interests. During the periods presented, items not related to the Company’s normal operations included Deepwater Horizon settlement and related costs, Algeria exceptional profits tax settlement, Tronox-related contingent loss, and certain other nonoperating items included in other (income) expenses, net.

Management believes that the presentation of Adjusted EBITDAX provides information useful in assessing the Company’s financial condition and results of operations and that Adjusted EBITDAX is a widely accepted financial indicator of a company’s ability to incur and service debt, fund capital expenditures, and make distributions to stockholders.

Adjusted EBITDAX as defined by Anadarko may not be comparable to similarly titled measures used by other companies and should be considered in conjunction with net income (loss) attributable to common stockholders and other performance measures prepared in accordance with GAAP, such as operating income or cash flows from operating activities. Adjusted EBITDAX has important limitations as an analytical tool because it excludes certain items that affect net income (loss) attributable to common stockholders and net cash provided by operating activities. Adjusted EBITDAX should not be considered in isolation or as a substitute for an analysis of Anadarko’s results as reported under GAAP.

Non-GAAP Reconciliation

Year Ended December 31, 2014Millions

Income (loss) before income taxes (GAAP) 54Exploration expense 1,639DD&A 4,550Impairments 836Interest Expense 772Total (gains) losses on derivatives, net, less net cash received in settlement of commodity derivatives 578Deepwater Horizon settlement and related costs 97Algeria exceptional profits tax settlement --Tronox-related contingent loss 4,360Certain other nonoperating items 22Less net income attributable to noncontrolling interests 187Consolidated adjusted EBITDAX (Non-GAAP) 12,721

23



Net Debt to Adjusted CapitalizationThe Company defines net debt as total debt less cash and cash equivalents. Net debt for Anadarko excluding Western Gas Equity Partners, LP (WGP) is Anadarko’s Consolidated net debt, less WGP’s net debt.

The Company defines net debt to adjusted capitalization ratio as net debt / (net debt + total equity). Net debt to adjusted capitalization ratio for Anadarko excluding WGP excludes WGP’s net debt and noncontrolling interest attributable to WGP.

Management uses net debt as a measure of the Company’s outstanding debt obligations that would not be readily satisfied by cash and cash equivalents on hand.


Net Debt to Adjusted Capitalization Ratio December 31, 2014

MillionsAnadarko

ConsolidatedWGP*

Consolidated

Anadarko excluding

WGPTotal debt (GAAP) $ 15,092 $ 2,423 $ 12,669

Less cash and cash equivalents 7,369 67 7,302Net debt (Non-GAAP) $ 7,723 $ 2,356 $ 5,367

MillionsAnadarko

Consolidated

Anadarko excluding

WGPNet debt $ 7,723 $ 5,367

Total Equity 22,318 19,725Adjusted Capitalization (Non-GAAP) $ 30,041 $ 25,092

Net debt to adjusted capitalization ratio 26% 21%

*Western Gas Equity Partners, LP (WGP) is a publicly traded consolidated subsidiary of Anadarko and WES is a consolidated subsidiary of WGP 24



Discretionary Cash Flow from Operations, Free Cash Flow and Adjusted Free Cash FlowThe Company defines discretionary cash flow from operations as net cash provided by operating activities before collections associated with the Algeria exceptional profits tax settlement, changes in accounts receivable, changes in accounts payable and accrued expenses, other items-net, certain nonoperating and other excluded items, and current taxes related to asset monetizations.

The Company defines free cash flow as discretionary cash flow from operations less capital expenditures and the company defines adjusted free cash flow as defined above adjusted for the cash received from the Algeria Exceptional Profits Tax settlement. Also, the company defines Anadarko free cash flow as adjusted free cash flow excluding WES capital investments.

Management uses discretionary cash flow from operations because it is useful in comparisons of oil and gas exploration and production companies as it excludes certain fluctuations in assets and liabilities and current taxes related to certain items affecting comparability. Management uses free cash flow to demonstrate the Company's ability to internally fund capital expenditures and to service or incur additional debt.


Year Ended $ Millions December 31, 2014Net cash provided by operating activities (GAAP) 8,466

Add back:

Algeria exceptional profits tax settlement --

Increase (decrease) in accounts receivable (103)

Increase (decrease) in accounts payable and accrued expenses (7)

Other items – net 81

Certain nonoperating and other excluded items 29

Current taxes related to asset monetizations 938

Discretionary cash flow from operations (Non-GAAP) 9,404 Less: Anadarko capital expenditures 8,560

Anadarko adjusted free cash flow (Non-GAAP) 844

25



Finding and Development CostsThe Company defines finding and development (F&D) costs as total costs incurred divided by reserve additions. In addition, the Company will use several variations of this calculation, including isolating development costs and incorporating price-related and non-price-related reserve additions.

Management believes that the presentation of F&D costs provides useful information in assessing the Company’s ability to efficiently manage its capital programs.


*Includes Western Gas Partners, LP (WES) capital expenditures of $696 million for the year ended December 31, 2014

Total Costs Incurred for the Year Ended December 31, 2014 ($ MM) 8,712

Asset Retirement Obligation Liabilities Incurred ($ MM) (347)

Cash Expenditures for Asset Retirement Obligations ($ MM) 443

Oil and Natural Gas Exploration and Development Costs ($ MM) 8,808

Non-Price-Related Additions before Divestitures (MMBOE) 503

Finding & Development Costs ($/BOE) 17.51

Additions Including Price-Related Revisions (MMBOE) 502

Finding & Development Costs Including Price-Related Revisions ($/BOE) 17.55

26

2015 APC Investor Conference Call Appendix · 2015 Anadarko Investor Conference Call Appendix. NYSE: APC | ... 640 724 727 Constitution 100% WI

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