A N A DA R KO P E T R O L E U M C O R P O R AT I O N. Bob Gwin SVP, Finance and Chief Financial Officer. March 6, 2013 INVESTOR RELATIONS CONTACTS:

Transcription

1 A N A DA R KO P E T R O L E U M C O R P O R AT I O N INVESTOR RELATIONS CONTACTS: John Colglazier Vice President 832/ Brian Kuck Manager 832/ Bill Tedesco Manager 832/ Bob Gwin SVP, Finance and Chief Financial Officer March 6, 213 ANADARKO PETROLEUM CORPORATION

2 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 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 news release, including Anadarko s ability to meet financial and operating guidance; to achieve its production targets, successfully manage its capital expenditures, including entering into carried-interest agreements, and complete, test and procure the wells and prospects identified in this presentation; to successfully plan, secure necessary government approvals, finance, build and operate the necessary infrastructure and LNG park; and to achieve its production and budget expectations on its mega projects. See Risk Factors in the company s 212 Annual Report on Form 1-K, Quarterly Reports on Form 1-Q and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements. Please also see our website at under Investor Relations for reconciliations of the differences between any non-gaap measure used in this presentation and the most directly comparable GAAP financial measures. Cautionary Note to U.S. Investors: The United States 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. Anadarko uses certain terms in this news release, such as resources, net resources, net discovered resources, net risked resources, resource opportunity, estimated ultimate recovery, resource potential, resource estimate, incremental recoverable resources, recoverable natural gas, net resource estimate, recoverable resource, net resource estimate, discovered resources, and similar terms that the SEC s guidelines strictly prohibit Anadarko from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in Anadarko s Form 1-K for the year ended Dec. 31, 212, File No , available from Anadarko at or by writing Anadarko at: Anadarko Petroleum Corporation, 121 Lake Robbins Drive, The Woodlands, Texas 7738, Attn: Investor Relations. This form may also be obtained by contacting the SEC at 1-8-SEC-33. 1

3 Anadarko s 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 Investment Returns Resource Conversion Value Acceleration 2

4 A Portfolio with Balance, Scale and Unparalleled Optionality Predictable, Repeatable U.S. Onshore Advancing NextGeneration Mega Projects World-Class Exploration Higher-Margin Liquids High-Margin Oil High-Impact Targets Driving Efficiencies Industry-Leading Project Management First-Mover Advantage Leveraging Midstream Track Record of Success Alaska U.S. Onshore North Africa China Deepwater GOM Net Risked Resources (BBOE) -1 South America West Africa East Africa South Africa Emerging Opportunities New Zealand ANADARKO 3

5 Anadarko Delivered Outstanding Results in 212 Predictable, Repeatable Growth Efficiency Improvements Industry-Leading Exploration High-Graded Portfolio Financial Discipline 268 MMBOE Sales Volumes: 8% YOY Growth 434 MMBOE Reserve Adds for $14.65/BOE* 28% YOY U.S. Onshore Drilling-Efficiency Improvement 9% YOY Reduction in LOE/BOE 67% Deepwater Exploration/Appraisal Success Rate 2 of the World s Largest Discoveries $1+ Billion of Monetized Assets $6.8+ Billion Market Value Established from IPO of WGP $2.5 Billion - Fully Repaid Revolving Credit Facility $.9 Billion Adjusted Free Cash Flow *Before the Effects of Price Revisions 4

6 Sales Volumes (MMBOE) Percent Liquids Anadarko is Positioned to Deliver in 213 Sales Volumes (MMBOE)* Capital (Billions)** $7.2 - $7.6 Reserve Replacement 15+% F&D ~$15/BOE Demonstrated Liquids Growth 1% Liquids CAGR % 5% MIDSTREAM/OTHER 1% U.S. ONSHORE 6% 213 Capital Allocation by Area GULF OF MEXICO 15% EXPL INTERNATIONAL 15% 4% 1 3% E 214E *Includes Ethane Rejection Assumptions and Anticipated Weather/Facility Downtime **Excludes WES Capital Investments and Assumes Carried-Interest Agreements for Heidelberg and Mozambique 5

7 Predictable Growth, Expanding Margins and Value Upside Confident in 5-7% Production CAGR through 22 at Current Prices Achieved through Identified and Producing Assets Increased Growth Potential with Sustained $4.5+ Natural Gas Prices Exploration Provides Additional Value Upside and Optionality Growth from Higher-Margin Liquids E 214E 215E 216E 217E 218E 219E 22E Oil/Liquids Gas Additional Gas at $4.5/Mcf 6

8 U.S. Onshore: Accelerating Value and Enhancing Margins 1% Sales-Volume Growth to ~57, BOE/d 35% Growth in Oil Volumes Allocating Capital to Projects Generating 3-1+% ROR ~$12/BOE Reserve-Replacement Cost Wedge Volumes Added at $35, per Flowing BOE/d Midstream Expansion to Enable Growth GNB Operated Wells E Sales Volumes (MBOE/d) PERMIAN Operated Wells ~ E Sales Volumes (MBOE/d) ~91 EAGLEFORD Operated Wells ~ E Sales Volumes (MBOE/d) WATTENBERG Operated Wells 3+ MARCELLUS ~123 Operated Wells ~ E 54 Sales Volumes (MBOE/d) E Sales Volumes (MBOE/d) EAST TEXAS Operated Wells 75+ ~ E Sales Volumes (MBOE/d) 213 Planned Activity 7

9 BOE/d Wattenberg HZ: Accelerating $15+ Billion of Value 1. to 1.5 BBOE Net Resources ~4, Horizontal Drill Sites 35 MBOE EUR per Well Optimizing Lateral Lengths, Spacing and Completions $6.7 Million BTAX NPV per Well 1+% ROR at Current Prices Converting $2 Billion BTAX Value in 213 Doubling Well Activity to 3+ Planned Wells Operate ~11 Horizontal Rigs Expanding Enabling Infrastructure Mineral Interest Enhances Returns Increasing Sales Volumes E ~35, Net Acres in Core Wattenberg Larimer Boulder Jefferson Denver Douglas Arapahoe $2.4 $5.3 Elbert Morgan Adams Anadarko Economics Enhanced by Land Grant Position ($ Millions) $ MBOE EUR Well Based on $4.3 Million Well Cost & Unescalated NYMEX Prices of $9/Bbl and $3.5/Mcf APC Land Grant and Leasehold Core 1 Miles Wattenberg Area Area of 213 Activity APC Mineral Ownership Advantage 8

10 Plant Inlet (MMcf/d) MBOPD Wattenberg: Expanding Infrastructure Advantage Year-End 212 Infrastructure Gas Gathering Pipelines ~3, Miles Oil Gathering Pipelines 32 Miles Processing Capacity 4 MMcf/d Compression 11, HP Gas Gathering System Capacity 45 MMcf/d Oil Gathering Throughput 12 MBOPD Oil Takeaway Capacity Aligned with Production Growth (Illustrated through 1Q14) Current Production Expanding Compression, Gathering and Processing Oil Rail Terminal Expected in Service 3Q13 Front Range NGL Pipeline Expected in Service 4Q13 3 MMcf/d Lancaster Cryo Plant Expected in Service 1Q14 Evaluating Expansions 1, Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Gas Processing Capacity Aligned with Production Growth (Illustrated through 1Q14) Current Production Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 9

11 MBOE/d Days Avg. Cost Per Well (Millions) Eagleford: Delivering Significant Growth ~4, Gross Acres ~2, Net Acres 6+ MMBOE Net Resources 33% Increase in EURs to ~6 MBOE per Well 2,5+ Identified Drill Sites 65% Liquids Composition Large-Scale Infrastructure Additions 2 MMcf/d Brasada Plant Expected in Service 2Q13 NGL and Gas Line to Premium Markets Industry-Leading Drilling Cycle Times Brasada Plant Construction Increasing Sales Volumes Drilling Efficiencies and Cost Control Spud to RR Cost per Well $ E Q12 2Q12 3Q12 4Q12 $1.5 $1. 1

12 $Millions Estimated Sales Volumes (MBOE/d) Mega Projects: Delivering High-Impact Growth and Cash Flow Consistent, On-Time, On-Budget Delivery Standardized Process, Technology and Equipment Accelerate Value through Carried- Interest Agreements Lucius - $556 Million Heidelberg - $86 Million Mozambique - TBD Significant Future EBITDAX Generation from Identified Mega Projects 18 9 Advancing Identified Mega Projects Mozambique First 2 Trains TEN Complex Heidelberg Lucius El Merk Caesar / Tonga Jubilee / MTA 21 22E 5, Capex EBITDAX Identified Mega Projects Deliver Significant Value* (Based on Unescalated NYMEX Prices of $9/Bbl and $3.5/Mcf) 2, E 214E 215E 216E 217E 218E 219E 22E *Assumes Carried-Interest Agreements for Heidelberg and First Two Trains in Mozambique 11

13 Gulf of Mexico: Enhancing High-Margin Oil Projects Shenandoah Mini-Basin Potential Development Area Shenandoah 3% WI Shenandoah 52 Mini-Basin Caesar/Tonga 2-4 MMBOE Resource $1 Billion Capital Avoided by Leveraging Existing Infrastructure Oil Production Began 1Q12 4th Well On Line 2Q13 Heidelberg 2-4 MMBOE Resource Expected Capital Carried through First Production Replicating Lucius Spar Design Ordered Long-Lead Items First Oil Anticipated Mid-216 Yucatan 96 15% WI 143 Coronado 14 15% WI 144 Norphlet Miocene Caesar/Tonga 34% WI Lower Tertiary Anadarko WI Block Planned Drilling Sub-Salt Pliocene Lucius Unit 28% WI Heidelberg 44% WI Lucius 3+ MMBOE Resource Expected Capital Carried through First Production World-Class Reservoir Quality and Deliverability On Time, On Budget for First Oil

14 Ghana and Algeria: High-Margin Oil Producers Ghana Jubilee: Producing 11,+ BOPD TEN: Second Major Oil Development Planned FPSO Wawa Miles 1 Algeria 1.6+ Billion Barrels of Gross Oil Produced to Date Enhanced Value from TPE Resolution El Merk First Oil Expected in March Expected Ramp to ~3, Bbl/d Net Around Year End Drives 1+% YOY Algeria Growth Enyenra Jubilee Teak Block 44a HBNS CPF Tweneboa PK Ntomme Mahogany Akasa Ourhoud CPF Deepwater Tano 18% WI West Cape Three Points 31% WI Block 28 1 Anadarko WI Block Planned Drilling Oil Field Gas Condensate Field Prospect El Merk CPF Miles 13

15 MBOE/d MMTPA Mozambique: Advancing Toward 5 MMTPA DISCOVERED MASSIVE RESOURCE CONFIRMED RESERVOIR QUALITY AND DELIVERABILITY SECURED LAND FOR LNG PARK SIGNED HOA WITH AREA-4 OPERATOR AWARDED COMPETITIVE FEED CONTRACTS 35 to 65+ Tcf of Recoverable Natural Gas Wells Capable of Producing 1-2 MMcf/d 17,+ Acres in Afungi Peninsula Maintained Schedule for First Cargo in 218 Offshore Gathering and Onshore Construction 1,6 Mozambique Offshore Area 1: Notional 5 MMTPA Gross Production Projected Liquefaction Capacity Assumes Future 1-Train Mozambique Development 218E 22E 222E 224E 226E 228E 23E 232E 234E 236E 238E 24E 242E 244E 14

16 Exploration: Focusing on Play-Opening Opportunities Leveraging Exploration Success Testing New Plays Expanding the Portfolio 213 Net Discovered Resources Target: 8+ MMBOE ~25 Deepwater Exploration/Appraisal Wells Gulf of Mexico 6-8 Exploration / Appraisal Wells South America Planned 213 Activity Planned Divestiture ~3 MM Acres ~13 MM Acres Seismic Acquisition and Processing West Africa North Africa ~5 MM Acres ~15 MM Acres 2 Exploration Wells 7-9 Exploration / Appraisal Wells South Africa ~23 MM Acres Seismic Acquisition and Processing Kenya Mozambique ~6 MM Acres 2 Exploration Wells ~6 MM Acres South China Sea 7-9 Exploration / Appraisal Wells New Zealand ~2 MM Acres 1-2 Exploration Wells ~1 MM Acres ~1 Exploration Well 15

17 Mozambique: Focusing on Upside Potential MOZAMBIQUE ~6 MM Gross Acres Cavala Enchova A Golfinho/Atum Complex Linguado Exploring Full Stratigraphic Column Low-Dip Stratigraphic and Structural Traps 213 Planned Activity 4-5 Exploration Wells 2-3 Appraisal Wells in Golfinho/Atum Complex Orca A GOLFINHO DISCOVERY ORCA 1 CAVALA 1 ENCHOVA 1 LINGUADO 1 A A Anadarko WI Block Planned Drilling Natural Gas Field Prospects Tubarão Offshore Area 1 APC Operated 36.5% WI Tubarão-2 15 Miles 16

18 Kenya: Testing a New Deepwater Basin ~6 MM Gross Acres Potential for Oil KENYA Very Large Traps L-5 L-7 A Kubwa Significant Follow-On Prospects Drilling 2 Exploration Wells Farm-Out Recovered Historical Costs A Partial Drilling Carry Anadarko WI Block Planned Drilling Prospects Seismic APC Operated 45% WI 25 Miles L-12 L-11A L-11B Kiboko INDUSTRY DISCOVERY KUBWA-1 A 52 m Gas Pay A Good Quality Sands 17

19 Gulf of Mexico: Unprecedented Activity Level GULF OF MEXICO 5 Exploration/Appraisal Wells Active Test 3 Large, Multi-Block, 4-Way Structures Drilling First Norphlet Test Expanding Proven Plays Sub-Salt Pliocene Miocene Lower Tertiary Haleakala 67% WI Raptor 5% WI ~ 3MM Gross Acres Norphlet Deep Nansen 5% WI Lower Tertiary Shenandoah 3% WI Miocene K2 Deep 42% WI Stromboli 5% WI Sub-Salt Pliocene Yucatan 15% WI Phobos 3% WI Coronado 15% WI Anadarko WI Block Planned Drilling 18

20 Production Rate (MBOE/d) Exploration: Creating Unmatched Value and Optionality NET DISCOVERED RESOURCES 5+ BBOE CAPITAL INVESTED MONETIZED VALUE RETAINED ~$8 Billion ~$8 Billion ~2 MBOE/d Net Production ~4 BBOE Resources OPTIMIZE Lucius Heidelberg Mozambique 35 Mozambique Significant Value Retained DISCOVERY APPRAISE Vito Shenandoah Paon Future Discoveries TEN Heidelberg Lucius Caesar Tonga Avalon Jubilee Eagleford Marcellus DIVEST Indonesia Brazil

21 Exercising Financial Discipline $2.5 Billion of Cash on Hand at YE Capital Investments within Cash Flow Cash Flow Protected with Tactical Hedges Planned and Opportunistic Monetizations Anticipate Periodic WES and WGP Transactions Strengthening the Balance Sheet Net Debt to Adjusted Capital Year-End % Year-End % Anticipated Improvement During 213 at Strip Prices Effects of Algeria TPE Resolution ~32% Operations and Monetizations ~3% Other Potential Monetizations TBD 2

22 Providing Transparent Growth with Unmatched Optionality 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 Investment Returns Resource Conversion Value Acceleration 21