INVESTOR 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 ...filecache.investorroom.com/...JPM_Presentation.pdfA 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 | NYSE: APC

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

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 Nw w w . a n a d a r k o . c o m | N Y S E : A P C

I N V E S T O R R E L A T I O N S

ROBIN FIELDERVice President832 636 1462

KATE SLOANDirector

832 636 2562

ANDY TAYLORDirector

832 636 3089

JP MORGAN 2018 ENERGY CONFERENCEAl Walker, President, CEO & Chairman

June 19, 2018

w w w . a n a d a r k o . c o m | N Y S E : A P CA 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

Regarding Forward-Looking Statements and Other Matters

2

Cautionary Language

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 Actof 1934. Anadarko believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to havebeen correct. A number of factors could cause actual results to differ materially from the projections, anticipated results, or other expectations expressed in thispresentation, including Anadarko’s ability to successfully execute upon its capital program; to efficiently identify and deploy capital resource; to meet financial andoperating guidance and achieve the production targets and cash flow levels identified in this presentation; to timely complete and commercially operate the projects,infrastructure and drilling prospects identified in this presentation; to successfully drill, complete, test and produce the wells identified in this presentation; to successfullycomplete the share repurchase program; and to reduce debt. See “Risk Factors” in the company’s 2017 Annual Report on Form 10-K, Quarterly Reports on Form 10-Qand other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements.

Please see the appendix slides or our website at www.anadarko.com under “Investor Relations” for reconciliations of the differences between any non-GAAP measureused in this presentation and the most directly comparable GAAP financial measures.

Cautionary Note to Investors - The U.S. Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose onlyproved, 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 recoverable resources,” “recoverable resources,” and similar terms that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. Thesequantities may not constitute "reserves" within the meaning of the SEC’s rules. EUR estimates and drilling locations have not been risked by our management. Actualquantities that may be ultimately recovered from our interests may differ substantially. Factors affecting ultimate recovery include the scope of our ongoing drillingprogram, which will be directly affected by commodity prices, the availability of capital, drilling and production costs, availability of drilling services and equipment, drillingrisks, lease expirations, transportation constraints, regulatory approvals and other factors; and our actual drilling results, including geological and mechanical factorsaffecting recovery rates. Such estimates may change significantly as development of our oil and gas assets provide additional data.

U.S. Investors are urged to consider closely the oil and gas disclosures in our Form 10-K for the year ended December 31, 2017, File No. 001-08968, available from usat www.anadarko.com or by writing to us at: Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The Woodlands, Texas 77380 Attn: Investor Relations. Youcan also obtain this form from the SEC by calling 1-800-SEC-0330.


Anadarko’s History of Capital Efficiency

3

$0

$5

$10

Bill

ion

INVESTING WITHIN ORGANIC CASH FLOWS

2011 2012 2013 2014 2015 2016 2017 2018E

12018E based on $50/Bbl WTI and Brent, and $3/Mcf HH, including the $350+ million impact of hedges

Note: See Appendix for non-GAAP definitions and reconciliations

FOUNDATIONAL

PRINCIPLESEFFICIENT CAPITAL

ALLOCATION

STRATEGIC PORTFOLIO

MANAGEMENT

FINANCIAL

DISCIPLINE

$800+ Million Potential Incremental Cash Flow

at $60 Oil

APC Adj. DCF1 Upstream CapitalAPC Incremental CF ($60 Upside) APC Midstream Capital


World-Class Portfolio Positioned to Deliver

4

DJ BASIN

$1.0 -$1.5GOM DEVELOPMENT

$0.7 -$1.1

ALGERIA & GHANA

$0.8 -$1.22018E FCF*

($Billion)

U.S. Onshore$2,750

GOM Development

$1,000

Int’l$150 Expl

$200 LNG$150

Corp$150

2018E CAPITAL1

($Millions)

1Does not include WES capital investments2Refer to Appendix for divested sales-volumes summary3Based on $50/Bbl WTI and Brent, and $3/Mcf HH

*Range of $50 - 60/Bbl WTI and Brent, and $3/Mcf HH; Asset-level free cash flow is unburdened by corporate expenses and income tax

Note: See Appendix for non-GAAP definitions and reconciliations

STABLE CONVENTIONAL PRODUCTION & UNCONVENTIONAL GROWTH2

2020E2018E

Algeria & Ghana

GOM Development

U.S. Onshore

Algeria & Ghana

GOM Development

U.S. Onshore

10 - 14%Oil

CAGR3

w w w . a n a d a r k o . c o m | N Y S E : A P CA 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 5

1Expected in-service date2Expected in service of Plains Cactus II pipeline

Delaware Basin: Strategic Infrastructure Buildout

5 MILES

NEW MEXICO

TEXAS

CULBERSON

REEVES

LOVING

WINKLER

WARD

Ramsey

Mentone

SILVERTIPCAMPAIGN AREAN E W A D D I T I O N S 1

Gas Processing

Ramsey VI200 MMcf/d

4Q17

Mentone I & II400 MMcf/d

2H18

Oil Treating

Reeves 60 MBOPD

2Q18

N. Loving60 MBOPD

3Q18

Haley (E. Loving)60 MBOPD

2019

APC Leasehold

2018E Wells Turned to Sales

Existing/Future Gas Plant

Existing/Future Gas Gathering Lines

Future Regional Oil Treating Facility

Existing/Future Oil Pipelines

Existing/Future Water Pipelines

MarketOil Pipeline

Enterprise

Houston

Plains

Corpus Christi

Reeves ROTFLoving ROTF

FIRM AGREEMENTS

Product % Operated Volumes

Oil50% in 2018

100% by YE192

Gas 80% Covered


Mozambique LNG: Advancing First Onshore Project

6

2018E

CAPITAL$150MILLION

LEGAL &

CONTRACTUAL FRAMEWORK

DEVELOPMENT PLAN APPROVED

OFFTAKEAGREEMENTS

Binding SPAs

SITEPREPARATION

Ahead of FID

PROJECTFINANCINGPursuing ~2/3

Leverage

FID

IN PROGRESS


Enhancing Shareholder Value in 2018

7

Invest Upstream & APC Midstream within DCF at $50 & $3

$3 Billion Share-Repurchase Program Completed 1H18

Generate 19% CFROIC*

Deliver 13% YOY Oil Growth

REPURCHASE

ADDITIONAL SHARES

REDUCE

DEBTINCREASE

DIVIDEND YIELD

UPSIDE ABOVE $50 /Bbl & $3 /Mcf

400% Dividend Increase

*See Glossary of Terms and Definitions

Note: See Appendix for non-GAAP definitions and

reconciliations





KATE SLOANDirector

832 636 2562

ANDY TAYLORDirector

832 636 3089

CAPITAL EFFICIENCY & ENHANCED RETURNS





KATE SLOANDirector

832 636 2562

ANDY TAYLORDirector

832 636 3089

APPENDIX


Divested Sales-Volumes Summary

10

1Q17 2Q17 3Q17 4Q17 TY17 1Q18MBOE/d 84 9 0 0 23 0

Gas (MMcf/d) 504 55 0 0 138 0NGLs (MBbl/d) 0 0 0 0 0 0Oil (MBOPD) 0 0 0 0 0 0MBOE/d 40 0 0 0 10 0





Gas (MMcf/d) 0 0 0 0 0 0NGLs (MBbl/d) 0 0 0 0 0 0Oil (MBOPD) 11 11 11 11 11 4

Alaska

Moxa

W.Chalk/Eaglebine

Utah CBM

Marcellus

Eagleford


Non-GAAP Financial Measure Definitions & Reconciliations; Management Estimates & Assumptions

11

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. The Company undertakes no obligation to publicly update or revise any non-GAAP financial measure definitions and related reconciliations.

Non-GAAP financial measures exclude certain amounts that are included in the corresponding financial measures determined in accordance with GAAP. The following slidesinclude reconciliations of GAAP to non-GAAP financial measures and statements indicating why management believes the non-GAAP financial measures provide usefulinformation for investors. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordancewith GAAP. The non-GAAP financial information presented may be determined or calculated differently by other companies and may not be comparable to similarly titledmeasures.

Non-GAAP financial measures provided in this presentation for specific asset areas are calculated using the same methodology as the consolidated measure. Corporategeneral and administrative expenses are included in consolidated Adjusted EBITDAX (Margin), but excluded from EBITDAX and EBITDA by asset area as these expensesare not considered an operating expense of the asset area. Income taxes are included in consolidated FCF, but excluded from FCF by asset area as taxes are not allocatedto specific asset areas.

Management has presented herein certain estimates about future performance, results, and financial position. Such estimates generally reflect current or explicitly assumedfuture commodity strip prices as well as management's assumptions about future drilling plans, performance, and production mix, among other factors. These forward-looking estimates are illustrative and are not intended to reflect the results we will achieve for the periods presented. Actual results may differ materially from the estimatespresented herein. Management has also presented herein certain forward-looking non-GAAP financial measures, including Adjusted EBITDAX (Margin), EBITDA, DCF,Adjusted DCF, and FCF. Due to the forward-looking nature of the aforementioned non-GAAP financial measures, management cannot reliably predict certain of thenecessary components of the most directly comparable forward-looking GAAP measures, such as future impairments and future changes in working capital. Accordingly, thecompany is unable to present a quantitative reconciliation of such forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAPfinancial measures. Reconciling items in future periods could be significant.


Non-GAAP Reconciliation

12

Discretionary Cash Flow from Operations (DCF) and Free Cash Flow (FCF)The Company defines DCF as net cash provided by (used in) operating activities before changes in accounts receivable; changes in accounts payable and other current liabilities; other items, net; and certain nonoperating and other excluded items.

The Company defines FCF as DCF, less capital expenditures.

Management believes that these measures are useful to management and investors as a measure of a company’s ability to internally fund its capital expenditures and to service or incur additional debt. These measures eliminate the impact of certain items that management does not consider to be indicative of the Company’s performance from period to period. To assist in measuring the Company’s performance, management will also evaluate Anadarko on a deconsolidated basis, which excludes WES.

Year EndedDecember 31,

millions 2017 2016Net cash provided by (used in) operating activities (GAAP) $ 4,009 $ 3,000Add back

Increase (decrease) in accounts receivable 147 (677)(Increase) decrease in accounts payable and other current liabilities 32 443Other items, net 127 142Certain nonoperating and other excluded items 21 299

Discretionary cash flow from operations (Non-GAAP) * $ 4,336 $ 3,207Less capital expenditures ** 5,300 3,314Free cash flow (Non-GAAP) $ (964) $ (107)

*Includes $27 million current tax expense for the quarter ended December 31, 2017, and $147 million current tax expense for the year ended

December 31, 2017, related to asset monetizations.

**Includes Western Gas Partners, LP (WES) capital expenditures of $295 million for the quarter ended December 31, 2017, and $135 million for

the quarter ended December 31, 2016, $956 million for the year ended December 31, 2017, and $491 million for the year ended

December 31, 2016.


Non-GAAP Reconciliation

13

Adjusted Discretionary Cash Flow from Operations (Adjusted DCF)The Company defines adjusted discretionary cash flow from operations as net cash provided by (used in) operating activities adjusted by changes in accounts receivable; changes in accounts payable and other current liabilities; other items, net; Deepwater Horizon and Tronox settlement payments; collections associated with the Algeria exceptional profits tax settlement; certain nonoperating and other excluded items; current taxes related to Tronox tax position; and Western Gas Partners, LP (WES)/Western Gas Equity Partners, LP (WGP) distributions to third parties.

Management believes that these measures are useful to management and investors as a measure of a company's ability to internally fund its capital expenditures and to service or incur additional debt. These measures eliminate the impact of certain items that management does not consider to be indicative of the Company's performance from period to period. To assist in measuring the Company’s performance, management will also evaluate Anadarko on a deconsolidated basis, which excludes WES.

Year Ended December 31,millions 2011 2012 2013 2014 2015 2016 2017Net cash provided by (used in) operating activities (GAAP) $ 2,505 $ 8,339 $ 8,888 $ 8,466 $ (1,877) $ 3,000 $ 4,009Adjusted by:

Increase (decrease) in accounts receivable 993 (520) 11 (103) 2 (677) 147(Increase) decrease in accounts payable and other current liabilities (284) 476 (150) (97) 697 443 32Other items, net 16 (126) (146) 71 (474) 142 127Deepwater Horizon / Tronox settlement payments 3,948 (6) — — 5,215 — —Algeria exceptional profits tax settlement — (1,006) (730) — — — —Certain nonoperating and other excluded items — — 160 119 96 299 21Current taxes related to Tronox tax position — — — — 910 — —WES/WGP distributions to third parties (79) (107) (158) (216) (280) (362) (444)

Adjusted discretionary cash flow from operations (Non-GAAP) $ 7,099 $ 7,050 $ 7,875 $ 8,240 $ 4,289 $ 2,845 $ 3,892


Glossary of Terms & Definitions

14

APC: Anadarko Petroleum CorporationB: BillionBbl: BarrelBBOE: Billion Barrels of Oil EquivalentBOE: Barrel of Oil Equivalent BTAX: Before Tax CAGR: Compound Annual Growth RateCFFO: Cash Flow From OperationsCFROIC*: Cash Flow Return on Invested CapitalCMPL: CompletionCorp: CorporateCOSF: Central Oil Stabilization FacilityDAS**: Debt-Adjusted ShareDCF: Discretionary Cash FlowDD&A: Depreciation, Depletion, and AmortizationDJ: Denver JulesburgE: Expected

EBITDA: Earnings Before Interest, Tax, Depreciation, and AmortizationEBITDAX: Earnings Before Interest, Tax, Depreciation, Amortization, and Exploration ExpenseEUR: Estimated Ultimate RecoveryExpl: ExplorationFCF: Free Cash Flow FID: Final Investment DecisionFt: FeetGAAP: Generally Accepted Accounting Principles GOM: Gulf of MexicoGP: General PartnershipHH: Henry HubInt’l: InternationalLNG: Liquefied Natural GasLP: Limited PartnersMBOPD: Thousand Barrels of Oil per DayMcf: Thousand Cubic Feet of Natural Gas

MLP: Master Limited PartnershipMMcf/d: Million Cubic Feet per DayMM: MillionsNGL: Natural Gas LiquidsNYSE: New York Stock ExchangeROR: Rate of ReturnROTF: Regional Oil Treating Facility SPA: Sales and Purchase AgreementTY: Total YearU.S.: United States of AmericaWES: Western Gas Partners, LPWGP: Western Gas Equity Partners, LP WI: Working InterestWTI: West Texas IntermediateYE: Year EndYOY: Year Over Year

(APC Consolidated CFFO – WGP CFFO + WGP distributions to APC)(Stockholders’ Equity + Anadarko Debt)

*CFROIC =

**DAS = + Avg. Shares OutstandingAvg. Anadarko DebtAvg. Share Price

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INVESTOR 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 ...filecache.investorroom.com/...JPM_Presentation.pdfA 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 | NYSE: APC