Shale Gas Overview

September 25, 2014

Anadarko is …

Production

Exploration

Among the World’s Largest Independent Oil and Natural Gas E&P Companies

Included in the S&P 100 Index with 6000 + Employees Worldwide

Headquartered in The Woodlands, TX with Operations in 15+ Countries

Producing Enough Energy to Meet Daily Demands of ~25 Million Avg. American Homes.

Mission and Values

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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 health and welfare.

Integrity and Trust

Servant Leadership

People and Passion

Commercial Focus

Open Communication

History of Shale Energy Development

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Shale Gas Plays

Horizontal Drilling + Hydraulic Fracturing = Energy Reboot

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Horizontal Drilling

Multiple layers of Protective steel &

cement

Hydraulic Fracturing

Hydraulic Fracturing “Fracking” Explained

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Fracking is a Temporary Process, Typically Lasting 3 - 5 Days per Well.

Involves Injecting a Mixture of Water, Sand and a Relatively Small Amount of Additives Under Pressure into Targeted Formations.

Pressure Creates Pathways, Propped Open by Sand, for Oil or Natural Gas to Flow to the Wellbore.

Without Hydraulic Fracturing Tight Sands and Shale Formations are too Dense to be Economically Produced.

Hydraulic Fracturing Quick Facts

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It Has Been Used For Years

Myth: Fracking is a New Technology

Truth: Fracking is a Proven Technology in Use Since the 1940s, while Constantly Being Improved and Enhanced.

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The world’s first commercially fractured wells located in Duncan, Oklahoma. (March 17, 1949)

It Is A Long Ways Down

Myth: Fracking Endangers Water

Truth: Proper Well Construction Protects Groundwater Near the Surface.

Truth: Mother Nature Protects Groundwater from Upward Migration of Fluids, as Thousands of Feet of Impervious Rock Separate Petroleum Zones from Groundwater Sources.

“In no case have we made a definitive determination that the fracking process has caused chemicals to enter groundwater.”

Lisa Jackson (2012), Former U.S.

Environmental Protection Agency Administrator

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Water Usage Comparison

Myth: Hydraulic Fracturing Uses Too Much Water

Truth: Fracking Conserves Water. (Gallons of Water per 1 Million BTU of Energy) Soy biodiesel: 44,500 gallons of water

Corn ethanol: 23 gallons of water

Natural gas: 3 gallons of water

Truth: Drilling and Fracturing a Horizontal Well Requires about 3 - 5 Million Gallons of Water – A Relatively Small Amount When Taken into Context with Other Uses

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Induced Seismicity

Myth: Hydraulic Fracturing Causes Earthquakes

According to the National Research Council, the process of hydraulic fracturing a well presently implemented for shale gas recovery does not pose a high risk for inducing seismic events.

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Low Carbon Footprint

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Myth: Hydraulic Fracturing Makes Air Quality & Climate Change Worse

Saves Space

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Myth: Fracking for Oil & Gas Takes Up Too Much Land

Truth: Shale Gas Production Requires Drastically Smaller Land-Use than Conventional Natural Gas and Many Other Forms of Energy Production.

Amount of Land Need to Fuel 1,000 Households for 1 Year

Shale Gas: 0.40 Acres

Coal: 0.75 Acres

Wind: 6.00 Acres

Solar: 8.40 Acres

Source: IGU: Shale Gas, The Facts About the Environmental Concerns

Commitment to Transparency

Myth: Companies Won’t Say What Chemicals They Use

Truth: We publicly share the ingredients used in every application of hydraulic fracturing through the Groundwater Protection Council’s Online Public Registry: www.fracfocus.org.

Anadarko’s uploaded data for 5,000+ wells

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Multiple Regulations

Myth: Hydraulic Fracturing is Not Adequately Regulated

Truth: Hydraulic fracturing is highly regulated at multiple levels of government.

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Key Federal Regulations Governing Shale Development Include:

Clean Water Act

Clean Air Act

Safe Drinking Water Act

National Environmental Policy Act

Resource Conservation and Recovery Act

Emergency Planning and Community Right to Know Act

Endangered Species Act

Occupational Safety and Health Act

Key State Regulations Governing Shale Development Include:

Review and Approval of Permits

Well Design, Location and Spacing

Drilling Operations

Water Management and Disposal

Air Emissions

Wildlife Impacts

Surface Disturbance

Worker Health and Safety

Inspection and Enforcement of Day-to-Day Oil and Gas Operations

Getting the Products to Market

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Obama Administration Officials on Safety, Benefits of Shale

President Barack Obama

Engaging Stakeholders

Launched CRED Initiative in Colorado

www.cred.org

www.studyfracking.com

Anadarko employees host an Open House in Ft. Lupton, Colo. to address concerns

and answer questions from stakeholders in the community.

Collaborative Air-Quality Rules in Colorado with Governor, Regulators and EDF

University of Texas/EDF Emissions Study

Utilizing Green and Reduced-Emission Completions Throughout U.S. Onshore

Expanding CNG Fleet and Infrastructure

Focus on Reducing Truck Traffic

Committed to Reducing Emissions

Anadarko is awarded a 2013 Environmental Protection Award by

the COGCC for the third consecutive year.

Anadarko, EDF, Governor John Hickenlooper and 2 Other Operators

Collaborate on New Air-Quality Rules in Colorado.

Increasing Production 2011-YE 2013

Conserving More & Producing More in Colorado INNOVATION IN THE WATTENBERG*

40% Smaller

Pads

88% Fewer Frac

Tanks

96% Fewer

Trucks on the Road

82% Fewer

Production Tanks

96% Fewer

Trucks on the Road

13X MORE

Production From the

Field

Centralized Stim Centers

New “Water on Demand”

System

New Oil Gathering

System

New Oil Gathering

System

New “Water on Demand”

System

PRODUCTION PHASE

COMPLETIONS PHASE

Innovation

Result

Innovation Innovation

Result Result

Innovation Innovation

Result Result

* Average per 4-well pad

What Oil & Natural Gas Means to You

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In 2013, America Exceeded Russia in Oil and Natural Gas Production

In 2011, America Became a Net Exporter of Petroleum Products for the First Time Since 1949

In 2015, America is Projected to Surpass Russia and Saudi Arabia as the World’s Top Oil Producer

In 2013, U.S. Consumers Paid 33% Less than Europeans for Home Heating and Electricity

What Oil & Natural Gas Means to You

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What Oil & Natural Gas Means to You

96% of All Products We Use on a Daily Basis are Either Derived From or Powered by Oil and Natural Gas

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U.S. Energy Revival

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Technological Innovation Horizontal Drilling and Hydraulic Fracturing

Transformational Benefits 100+ Years of Domestic Natural Gas Supply

Lower Energy Costs for Consumers

Industrial and Manufacturing Renaissance

Strengthen Energy Security / Balance of Trade

Growing U.S. Global Strategic Influence

Improve Environmental Quality

Shale Gas Overview September 25, 2014