www.anadarko.com | NYSE: APC INVESTOR RELATIONS CONTACTS: John Colglazier Vice President 832/636-2306 Clay Gaspar Manager 832/636-2541 Wayne Rodrigs Manager 832/636-2305 2012 ANADARKO INVESTOR CONFERENCE Growth and Value: Today and into the Next Decade Al Walker President and Chief Operating Officer March 13, 2012
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www.anadarko.com | NYSE: APC
INVESTOR RELATIONS CONTACTS:
John Colglazier Vice President 832/636-2306
Clay Gaspar Manager 832/636-2541
Wayne Rodrigs Manager 832/636-2305
2 0 1 2 A N A D A R K O I N V E S T O R C O N F E R E N C E
Growth and Value: Today and into the Next Decade
Al Walker President and Chief Operating Officer
March 13, 2012
Anadarko Petroleum Corporation
www.anadarko.com | NYSE: APC
Announced Resolution to Algeria Dispute
Validates Our Position and Maintains Strong Relationship with Sonatrach
Settlement Provides ~$4.4 Billion of Net Present Value to Anadarko
$1.8 Billion to be Received over 12 Months from Effective Date
$2.6 Billion of NPV Resulting from Amended Contract Terms*
Benefits Are Not Included in Guidance
Will Provide Revised Guidance Subsequent to Algerian Government Approval
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*Value is Based on Unescalated Current Prices for Sahara Blend and a 10% Discount Rate
Anadarko Petroleum Corporation
www.anadarko.com | NYSE: APC
Our Proven Strategy and Deep Portfolio
Identify and Commercialize Resources
Explore in High-Potential, Proven Basins
Employ a Global Business Development Approach
Ensure Financial Discipline and Flexibility
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Areas of Activity
Anadarko Petroleum Corporation
www.anadarko.com | NYSE: APC
Capital-Efficient Growth
Focused on Returns
Capital Directed to Oil and Liquids-Rich Plays
Midstream Expansion to Increase Liquid Yields
Advancing Oil Mega Projects
Industry-Leading Global Exploration
Limited U.S. Onshore Dry Gas Activity
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Anadarko Petroleum Corporation
www.anadarko.com | NYSE: APC
Based on Unescalated NYMEX Prices of $100/Bbl and $3.25/Mcf
Line-of-Sight Liquids Growth and Reserve Additions
Option Value with HBP Dry Gas Projects
Liquids
Gas
Gas at $4.50/Mcf
Anadarko Petroleum Corporation
www.anadarko.com | NYSE: APC
1 - 5 BBOE
300 - 1,000 MMBOE
<300 MMBOE
Net Risked Resources
Focused on Sustainable Growth and Value
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Capital-Efficient, Value-Enhancing Allocation
Volumes Growth with Focus on Returns
Reserves Growth at Competitive Costs
Exploration Creates Differentiating Value
East Africa
Brazil
West Africa
Gulf of Mexico
U.S. Onshore
Algeria
Alaska
5+ BBOE
China
www.anadarko.com | NYSE: APC
INVESTOR RELATIONS CONTACTS:
John Colglazier Vice President 832/636-2306
Clay Gaspar Manager 832/636-2541
Wayne Rodrigs Manager 832/636-2305
2 0 1 2 A N A D A R K O I N V E S T O R C O N F E R E N C E
Bobby Reeves SVP, General Counsel and CAO
Clarifying Uncertainty
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March 13, 2012
Anadarko Petroleum Corporation
www.anadarko.com | NYSE: APC
Clarifying Uncertainties and Protecting Stakeholder Interests
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Algeria Exceptional Profits Tax
History: 2006: Algeria Parliament Established TPE on Foreign Companies’ Oil Production
2007: Anadarko Initiated a Conciliation Proceeding as Provided in the PSA
2008: Conciliation Board Issued its Non-Binding Recommendation
2009: Anadarko Submitted Notice of Arbitration to Sonatrach
2011: Arbitration Hearings Concluded
Announced Resolution Providing Substantial Value to Anadarko $4.4 Billion Settlement Announced
Win-Win Outcome Achieved
Relationship with Sonatrach Sustained and Improved
On Track for Government Approval in Next 120 Days
RESOLVED
Anadarko Petroleum Corporation
www.anadarko.com | NYSE: APC
Clarifying Uncertainties and Protecting Stakeholder Interests
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BP Macondo JOA Dispute
Oct. 2011: Announced Settlement with BP
Paid $4 Billion and Transferred Interest in the Macondo Well and Lease to BP
Fully Indemnified by BP with Regard to Oil Pollution Act (OPA), Claims for Natural Resource Damages and Associated Damage-Assessment Costs and Any Claims Arising Under the Relevant Joint-Operating Agreement
BP, plc Guarantees Indemnification
Resolution with BP Eliminates Significant Uncertainties
RESOLVED
Anadarko Petroleum Corporation
www.anadarko.com | NYSE: APC
Clarifying Uncertainties and Protecting Stakeholder Interests
25
Clean Water Act (CWA): Pending
CWA Fines are Fault-Based … Not Based on Working Interest
Court Has Said Anadarko Was Not Responsible for Accident and Spill
Though the BP Settlement Agreement Does Not Provide Indemnification Against Fines and Penalties, Punitive Damages or Certain Other Potential Claims, the Company Does Not Consider These Items to Represent a Significant Financial Risk
Anadarko Petroleum Corporation
www.anadarko.com | NYSE: APC
Clarifying Uncertainties and Protecting Stakeholder Interests
26
Tronox Litigation: Pending
Confident in the Merits of Our Case
Preparing for Trial
Anticipate Continued Settlement Discussions
Current Estimated Loss Related to Final Disposition of the Adversary Proceeding is $250 Million
Trial Slated to Start in May 2012
www.anadarko.com | NYSE: APC
INVESTOR RELATIONS CONTACTS:
John Colglazier Vice President 832/636-2306
Clay Gaspar Manager 832/636-2541
Wayne Rodrigs Manager 832/636-2305
2 0 1 2 A N A D A R K O I N V E S T O R C O N F E R E N C E
Financial Discipline
Bob Gwin SVP, Finance and Chief Financial Officer
March 13, 2012
Anadarko Petroleum Corporation
www.anadarko.com | NYSE: APC
Exercising Financial Discipline
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~$2.7 Billion Cash at YE 2011
2012 Capital Expenditures in Line with Cash Flow
Cash Flow Protected with Tactical Hedges
Net Debt/Capital Ratio Target of 25 - 35%
Opportunistic Monetizations
Ongoing Midstream Asset Sales to WES
Anadarko Petroleum Corporation
www.anadarko.com | NYSE: APC
Capital Expenditures in Line with Cash Flow
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$90/Bbl $2.50/Mcf
Current Strip
$6.60 B – $1.25 B
$6.75 B $(0.15) B $1.10 B
$6.90 B $(0.30) B $0.95 B
2012 Estimated Free Cash Flow*
*Excludes Western Gas Partners, LP (WES)
Cap
ital
Ex
pe
nd
itu
res*
Anadarko Petroleum Corporation
www.anadarko.com | NYSE: APC
Tactical Hedges Protect Cash Flow
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Hedge Position* 2012 2013
Gas Volume
(Thousand MMBtu/d)
Price ($/MMBtu)
Volume (Thousand MMBtu/d)
Price ($/MMBtu)
Swaps 1,000 4.69 – –
3-ways – – 450 4 / 5 / 6.57
Total % Gas Hedged ~42% ~19%
Oil Volume
(MBbl/d) Price
($/Bbl)
Swaps - WTI 20 101.39
Swaps - Brent 40 110.10
3-ways - WTI 17 71 / 91 / 113
3-ways – Brent 45 85 / 105 / 126
Total % Oil Hedged ~51% N/A
*As of March 13, 2012
Anadarko Petroleum Corporation
www.anadarko.com | NYSE: APC
Debt-Reduction Framework
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Consolidated Net Debt to Capital
Year-End 2011 41%
Path to 25 - 35% Leverage Target During 2012
2012 Operations and Monetizations ~36%
2012 Effects of Algeria TPE Resolution* ~32%
Potential Other Monetizations TBD
Based on 2012 Strip Pricing
* Pro-forma for Full $1.8 Billion Recoupment Equates to ~30% Net Debt to Capital
Anadarko Petroleum Corporation
www.anadarko.com | NYSE: APC
Opportunistic 2012 Monetizations
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DIVESTITURE SALES AMOUNT (Millions)
2011 NET SALES VOLUMES
South Texas $185 1.7 MMBOE
Pompano $67 0.7 MMBOE
San Juan Plant $50 –
Brazil* TBD –
Indonesia* TBD –
JOINT VENTURE PARTNER INTEREST 2011 NET SALES
VOLUMES
Salt Creek EOR 23% 0.6 MMBOE
Greater DJ Basin* (Excludes Core Wattenberg)
TBD –
Other Areas* TBD –
*Under Consideration
~
Anadarko Petroleum Corporation
www.anadarko.com | NYSE: APC
(50%)
0%
50%
100%
150%
200%
250%
5/8/08 2/11/09 11/18/09 8/25/10 6/1/11 3/7/12
WES vs. Alerian MLP Index
WES AMZX
WES: Material Value Contributor to Anadarko
$1.8 Billion Cash Realized by Anadarko
$2.0 Billion Market Value of Public L.P. Units and Debt Holdings
Significant Value in Ownership of General Partner
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Anadarko Petroleum Corporation
Western Gas Partners, LP (NYSE: WES)
Western Gas Holdings, LLC Public Unitholders
43.6% Limited Partner Interest
100% Ownership
2% General Partner Interest and Incentive Distribution Rights