NYSE: APC | www.anadarko.com
INVESTOR RELATIONS
John Colglazier
Senior Vice President
832/636-2306
Jeremy Smith
Director
832/636-1544
Shandell Szabo
Director
832/636-3977
HEIDELBERG, GULF OF MEXICO
Fourth-Quarter 2015
OPERATIONS REPORT
February 1, 2016
ANADARKO PETROLEUM CORPORATION
4th Quarter 2015 and Full-Year Highlights ..... 2
Overview......................................................... 3
Rockies ........................................................... 4
Southern & Appalachia .................................. 6
Gulf of Mexico ................................................ 8
International & Frontier ................................ 11
Deepwater Rig Schedule ............................. 14
Glossary of Abbreviations ............................ 15
1
FOURTH-QUARTER 2015 AND FULL-YEAR HIGHLIGHTS
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PRESERVING VALUE WITH U.S.
ONSHORE
ACCELERATING VALUE THROUGH
PORTFOLIO MANAGEMENT
DELIVERING HIGH-MARGIN MEGA
PROJECTS
In 2015, Anadarko’s U.S. onshore team focused on
increasing capital efficiency, reducing costs and
providing flexibility for 2016.
In 2015, the company generated $2 billion from
monetizations. During the 4th quarter, the company
closed on the previously announced divestiture of
its Powder River Basin CBM gas gathering system.
Anadarko achieved first oil at its Lucius development
in the 1st quarter of 2015, just over three years after
sanction. The 80,000-BOPD facility is Anadarko’s
largest truss spar completed to date. Production
reached nameplate capacity during the 2nd quarter.
Anadarko grew its divesture-adjusted U.S. onshore
volumes by 4% in 2015 while decreasing its
operated U.S. onshore rig fleet from an average of
37 rigs in 2014 to an average of 25 rigs in 2015 and
exiting the year with 16 rigs.
Anadarko enhanced its Wattenberg wellbore design,
which along with other efficiencies, allowed the
company to reduce its Wattenberg drilling costs per
foot by 50% and completion costs per well by
approximately 32% in 2015 from 2014. The
increased efficiencies allowed Anadarko to reduce
its average rig count by almost half in Wattenberg in
2015 from 2014, while still drilling approximately
90% of the type-well equivalents.
CREATING OPTION VALUE WITH
EXPLORATION
In 2015, Anadarko drilled a successful appraisal
well at Shenandoah in the Gulf of Mexico. The well
encountered more than 620 net feet of oil pay and
continued to progress the giant oil discovery toward
development.
Offshore Colombia, Anadarko announced the
play-opening
discovery
at
Kronos,
which
encountered between 130 - 230 net feet of naturalgas pay and proved the presence of a working
petroleum system.
Anadarko achieved first oil at its Heidelberg
development in the 1st quarter of 2016, less than
three years from sanction. Heidelberg is the sister
spar to Lucius.
The 80,000-BOPD TEN development off the coast
of Ghana was more than 80% complete at the end
of 2015 and is on track for first oil in the 3rd quarter
of 2016. The TEN FPSO departed Singapore in
January 2016. Upon the FPSO’s arrival in Ghana in
the 1st quarter, the vessel will begin connecting to
the risers and subsea infrastructure.
The company exited 2015 with an inventory of
approximately 230 iDUCs, primarily in Wattenberg,
Eagleford and the Delaware Basin. The iDUCs
increase Anadarko’s capital flexibility for 2016.
Lucius, Gulf of Mexico
*Except as otherwise noted, volumes discussed in this report exclude production associated with EOR, Bossier and CBM to provide a “divestiture-adjusted” or “same-store” sales comparison. “Divestiture-adjusted”
or “same-store” sales volumes are intended to present performance of Anadarko’s continuing asset base, giving effect to recent divestitures.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
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 1934. While Anadarko believes that its
expectations are based on reasonable assumptions as and when made, no assurance 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 presentation, including Anadarko’s ability to finalize year-end reserves, timely complete and commercially operate the
projects and drilling prospects identified in this presentation, successfully, plan, secure necessary government approvals, finance, build and operate the necessary infrastructure and LNG park in Mozambique and
achieve its production and budget expectations on its mega projects. Other factors that could impact any forward-looking statements are described in “Risk Factors” in the company’s 2014 Annual Report on Form 10K, Quarterly Reports on Form 10-Q, and other public filings and press releases. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. Anadarko
undertakes no obligation to publicly update or revise any forward-looking statements.
FOURTH-QUARTER 2015 |OPERATIONS REPORT
2
OVERVIEW
SALES VOLUMES
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For the full year, Anadarko reduced its capital
investments from 2014 by 36% to $5.36 billion,
excluding $0.5 billion of capital investments made
by WES.
th
Sales volumes for the 4 quarter totaled 72
MMBOE, or 780,000 BOE/d, which was within
guidance. U.S. oil volumes increased by
approximately 2% from the 3rd quarter of 2015
primarily due to the performance of Wattenberg and
the Delaware Basin.
RESERVES
Anadarko replaced more than 130% of its
production in 2015 by organically adding 407 million
BOE of proved reserves, before the effects of price
revisions, at competitive costs.
Full-year divestiture-adjusted sales volumes averaged
805,000 BOE/d, a 4% increase over 2014.
The company ended the year with estimated proved
reserves of 2.06 billion BOE, with 79% being proved
developed and 52% comprising liquids.
CAPITAL INVESTMENTS
Fourth-quarter capital investments of $1.2 billion,
excluding WES capital investments, were at the low
end of guidance.
SALES VOLUMES
CAPITAL INVESTMENTS
4Q15
4Q15
4Q15
4Q15
4Q14
4Q14
4Q14
4Q14
Oil
MBOPD
NGLs
MBbl/d
Gas
MMcf/d
MMBOE
Oil
MBOPD
NGLs
MBbl/d
Gas
MMcf/d
MMBOE
4Q15
$MM
Rockies
1
85
Rockies
104
57
1,031
31
95
59
1,012
30
Southern & Appalachia
62
49
927
24
57
54
1,076
26
Southern & Appalachia
343
Lower 48
166
106
1,958
55
152
113
2,088
56
Lower 48
428
Alaska
9
-
-
1
8
-
-
1
Alaska
16
Gulf of Mexico
54
6
115
7
47
6
179
8
Gulf of Mexico
187
Total U.S.
229
112
2,073
63
207
119
2,267
65
Total U.S.
631
International*
87
6
-
9
80
10
-
8
International
231
1,2
405
Capitalized Items/Other
46
Total Company
1,313
Same-Store Sales
316
118
2,073
72
287
129
2,267
73
EOR, Bossier and CBM**
-
-
(5)
(1)
13
-
282
6
Total Company
316
118
2,068
71
300
129
2,549
79
*Quarterly sales volumes are influenced by size, timing and scheduling of tanker liftings.
**The EOR divestiture closed in 2Q15, and the Bossier and CBM divestitures closed in 3Q15.
FOURTH-QUARTER 2015 |OPERATIONS REPORT
Midstream
1.
Reflects the reclass of $243MM associated with
the Wattenberg COSF to Midstream.
2.
Includes WES capital investments of ~$120MM.
3
ROCKIES
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Anadarko’s Rockies assets delivered sales volumes
averaging 333,000 BOE/d during the 4th quarter, a 3%
increase from the 3rd quarter. Oil volumes increased
9% from the 4th quarter of 2014. The company
continued to make the economic decision to reject
ethane, which equated to a net sales volumes
reduction of 3.9 MMBOE.
Anadarko averaged seven operated rigs and drilled
89 wells in the 4th quarter, with the majority of the
activity taking place in the liquids-rich Wattenberg
field. This denotes an 86% drilling-efficiency
improvement versus the 4th quarter of 2014 when
Anadarko drilled 82 wells with 12 operated rigs in the
region.
The company closed the sale of its CBM midstream
assets in the Powder River Basin in the 4th quarter.
CAPITAL
INVESTMENTS
SALES VOLUMES
4Q15
4Q15
4Q15
Oil
MBOPD
NGLs
MBbl/d
Gas
MMcf/d
4Q15
4Q14
4Q14
4Q14
4Q14
MBOE/d
Oil
MBOPD
NGLs
MBbl/d
Gas
MMcf/d
MBOE/d
4Q15
$MM
Wattenberg
1
AVERAGE
RIG ACTIVITY
4Q15
3Q15
Operated Operated
21
5
6
Greater Natural
Buttes
26
1
1
51
Other
38
1
1
1,012
323
Total
85
7
8
-
208
48
59
1,220
371
Wattenberg
95
45
532
229
85
43
400
195
Greater Natural Buttes
2
8
290
58
3
11
380
77
Other
7
4
212
46
7
5
232
Same-Store Sales
104
57
1,034
333
95
59
EOR and CBM*
-
-
(3)
-
13
Total
104
57
1,031
333
108
1.
Reflects the reclass of $243MM associated with the Wattenberg COSF.
*The EOR divestiture closed in 2Q15 and the CBM divestiture closed in 3Q15.
FOURTH-QUARTER 2015 |OPERATIONS REPORT
4
ROCKIES
Wattenberg:
th
 During the 4 quarter, the Wattenberg field net
sales volumes increased by approximately 9,000
BOE/d or 4% compared with the 3rd quarter of 2015
to an average of approximately 229,000 BOE/d. Oil
sales volumes increased 12% year over year.
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 During the quarter, Saddlehorn (APC 20% equity
interest) combined with Grand Mesa to form a
single pipeline project, which enhances economics.
The 20-inch pipeline is planned to deliver crude
from the DJ Basin to Cushing, Okla., and is
expected to be operational by mid-2016 with
Saddlehorn’s initial capacity set at 190,000 BOPD.
 Anadarko began production from its 1,000th
operated HZ well in Wattenberg during the quarter.
Greater Natural Buttes:
 Anadarko operated an average of five rigs and
drilled 75 wells (96 type-well equivalents) during the
4th quarter and exited 2015 with five rigs.
 The company operated one rig and drilled 11 wells
in the 4th quarter. Net natural gas sales volumes
averaged 290 MMcf/d for the quarter, flat compared
to the prior quarter.
 The company completed 68 wells in the 4th quarter
of 2015, a 34 well increase over the 3rd quarter.
 The COSF is currently in recycle mode as
construction is being completed. Commissioning is
expected to occur in the 1st quarter of 2016. This
facility should increase oil recoveries, enhance
efficiencies of tank batteries, lower operating
expenses and reduce impacts on the environment.
FOURTH-QUARTER 2015 |OPERATIONS REPORT
MINERAL-INTEREST OWNERSHIP
In 2015, the company recorded revenues totaling approximately
$460 million from its mineral-interest ownership in the Rockies,
Southern & Appalachia and the Gulf of Mexico. Oil and natural
gas royalties decreased by approximately 50% from 2014 due to
lower commodity prices, while the hard-minerals royalties
increased almost 7% to approximately $90 million.
Lancaster Plant, Colorado
5
SOUTHERN & APPALACHIA
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During the 4th quarter, the Southern & Appalachia
region delivered sales volumes of approximately
265,000 BOE/d, a 1% increase from the 3rd
quarter of 2015.
Oil volumes grew almost 5% from the 3rd quarter
of 2015 and approximately 9% over the 4th
quarter of 2014 driven by continued development
in the Wolfcamp Shale in the Delaware Basin and
through carried investments in the Eaglebine.
SALES VOLUMES
4Q15
4Q15
4Q15
Oil
MBOPD
NGLs
MBbl/d
Gas
MMcf/d
4Q15
4Q14
4Q14
4Q14
4Q14
MBOE/d
Oil
MBOPD
NGLs
MBbl/d
Gas
MMcf/d
MBOE/d
CAPITAL
INVESTMENTS
AVERAGE
RIG ACTIVITY
4Q15
4Q15
3Q15
$MM
Operated
Operated
Eagleford
32
24
145
80
33
25
143
82
Eagleford
75
1
3
Delaware Basin
18
7
65
36
14
5
49
27
Delaware Basin
189
7
7
E. Texas/N. Louisiana
2
14
238
56
2
17
240
60
E. Texas/N. Louisiana
64
3
4
Chalk/Eaglebine
8
3
25
15
6
3
21
12
Chalk/Eaglebine
-
1
1
Marcellus
-
-
386
64
-
-
546
91
Marcellus
11
-
-
Other
2
1
68
14
2
4
77
18
Other
4
-
-
Same-Store Sales
62
49
927
265
57
54
1,076
290
Total
343
12
15
Bossier*
-
-
(2)
-
-
-
73
12
Total
62
49
925
265
57
54
1,149
302
*The Bossier divestiture closed in 3Q15.
FOURTH-QUARTER 2015 |OPERATIONS REPORT
6
SOUTHERN & APPALACHIA
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Delaware Basin:
East Texas/North Louisiana:
 Anadarko’s net sales volumes for the quarter
averaged approximately 36,000 BOE/d, an
increase of almost 4% from the 3rd quarter of 2015.
Total liquids volumes averaged approximately
25,000 Bbl/d, which is an increase of 31%
compared to the 4th quarter of 2014.
 Anadarko’s
net
sales
volumes
averaged
approximately 56,000 BOE/d during the 4th quarter,
which was an increase of 4% compared to the 3rd
quarter of 2015.
 The company averaged seven operated rigs, spud
20 wells and brought 21 Wolfcamp Shale operated
wells on line during the 4th quarter of 2015.
 The company averaged three operated rigs, spud
two wells and brought eight wells on line during the
quarter.
Eaglebine:
 The company continued to drive down costs and
achieved an 18% reduction in completion costs
from the 3rd quarter due to efficiency gains.
 Anadarko’s net sales volumes averaged more than
3,000 BOE/d during the quarter, which was
essentially flat to the 3rd quarter of 2015.
 Anadarko continues to replicate the Wattenberg
infrastructure model by integrating and expanding
gathering and processing infrastructure for longterm growth and operational flexibility.
 Anadarko continued to focus on reducing costs and
achieved a new record low of $119 average costper-drilling foot. Completion costs were down
almost 11% in the quarter versus the prior quarter
due largely to design changes.
 The Avalon Express North Extension was
commissioned and placed in service during the
quarter. The extension lowers the line pressures in
north Loving County and increases take-away
capacity by 60 MMcf/d.
Carthage, East Texas
 At the end of the 4th quarter, Anadarko had
$331 million remaining on a $442 million carried
interest agreement which could be used to fund
development activities in 2016.
Eagleford:
Marcellus:
 Anadarko’s net sales volumes averaged 80,000
BOE/d during the quarter, a 4% decrease from the
3rd quarter of 2015. The decrease was primarily due
to a reduction in drilling activity.
 Anadarko’s
net
sales
volumes
averaged
approximately 386 MMcf/d during the 4th quarter
and were impacted by voluntary curtailments.
 Anadarko spud 14 wells utilizing one operated rig in
the 4th quarter.
 The company achieved a record low average costper-drilling foot of $72 and an 8% sequential
reduction in completion costs from design changes
and efficiency gains.
FOURTH-QUARTER 2015 |OPERATIONS REPORT
Delaware Basin, Texas
7
GULF OF MEXICO
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During the 4th quarter, Anadarko’s Gulf of Mexico region averaged sales volumes of
approximately 80,000 BOE/d, down 4% from the same period in 2014. Oil sales volumes
increased 15% from the prior year.
Anadarko is currently operating four rigs in the Gulf of Mexico.
SALES VOLUMES*
Total
4Q15
4Q15
4Q15
Oil
MBOPD
NGLs
MBbl/d
Gas
MMcf/d
54
6
4Q15
4Q14
4Q14
4Q14
4Q14
MBOE/d
Oil
MBOPD
NGLs
MBbl/d
Gas
MMcf/d
MBOE/d
115
80
47
6
179
83
*Includes the impact of weather-related downtime.
FOURTH-QUARTER 2015 |OPERATIONS REPORT
8
GULF OF MEXICO
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DEVELOPMENT
Heidelberg:
GREEN CANYON 859/860/903/904/948 (APC WI 31.5%)
 First oil began in the 1st quarter of 2016 from the
initial three subsea wells.
 The company plans to drill two additional wells later
in 2016 to further increase field production.
 At the end of the 4th quarter, Anadarko had $67
million remaining on an $860 million carried interest
agreement which could be used to fund
development activities in 2016.
Caesar/Tonga:
GREEN CANYON 683/726/727/770 (APC WI 33.75%)
 The sixth Caesar/Tonga well is being flow tested
and is on schedule to come on line in the 1st quarter
of 2016.
 The seventh Caesar/Tonga well was near target
depth at year end.
 The Phase 2 development project is moving ahead
with first oil anticipated by the end of 2017.
Independence Hub:
 Gross production averaged 40 MMcf/d (37 MMcf/d
net) during the quarter. The last producing well went
off line in December 2015.
 Independence Hub produced 1.3 TCF gross in 8.5
years, exceeding initial production expectations by
approximately 30%. The project hit payout within 1.5
years of first production.
FOURTH-QUARTER 2015 |OPERATIONS REPORT
Heidelberg, Gulf of Mexico
9
GULF OF MEXICO
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EXPLORATION/APPRAISAL
Shenandoah Basin:
Yeti:
WALKER RIDGE 51/52/53 (APC WI 30%, OPERATOR)
WALKER RIDGE 117/157/158/159/160 (APC WI 37.5%)
 Following the success of the Shenandoah-4 sidetrack, which encountered more
than 620 net feet of high-quality oil pay, the partnership successfully acquired
more than 550 feet of whole core from the hydrocarbon-bearing reservoir interval.
 The Yeti-3 appraisal well finished drilling during the 4th quarter. The partnership
successfully acquired more than 320 feet of whole core across the primary
Miocene-aged reservoir intervals encountered in the Yeti discovery well. The
partnership is currently evaluating potential development options for the Yeti
discovery.
 The partnership plans to spud the Shenandoah-5 appraisal well during the 1st
quarter of 2016. The well is designed to confirm and extend reservoir boundaries.
FOURTH-QUARTER 2015 |OPERATIONS REPORT
10
INTERNATIONAL & FRONTIER
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During the 4th quarter, the International
and Frontier region sales volumes
averaged 102,000 Bbl/d.
The El Merk facility reached a significant
milestone of 100 MMBbl cumulative
gross production only 2.5 years after first
production.
CAPITAL INVESTMENTS
SALES VOLUMES
4Q15
MBbl/d
4Q14
MBbl/d
Alaska
9
8
Algeria*
74
80
Brazil
-
-
Ghana/W. Africa*
19
10
Mozambique
-
Other
Total
4Q15
$MM
Alaska
16
Algeria
12
Brazil
5
-
Ghana/W. Africa
141
-
-
Mozambique
21
102
98
Other
52
Total
247
*Quarterly sales volumes are influenced by size, timing and
scheduling of tanker liftings.
El Merk, Algeria
FOURTH-QUARTER 2015 |OPERATIONS REPORT
11
INTERNATIONAL & FRONTIER
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Jubilee FPSO, Ghana
DEVELOPMENT
Alaska:
Ghana:
 Gross production from the Colville River Unit
increased approximately 24% from the 3rd quarter
of 2015 to 52,000 BOPD as the Alpine West
satellite project began production.
 Gross production at the Jubilee field averaged
approximately 106,000 BOPD during the 4th
quarter. Production was up approximately 13,000
BOPD from the 3rd quarter after the gas
compression
system
maintenance
was
successfully completed.
 The TEN development was more than 80%
complete at the close of 2015. The fifth well was
being completed at year-end and the remaining five
wells are scheduled for completion before startup.
The 80,000-BOPD project remains on schedule for
first oil in the 3rd quarter of 2016.
 The GJFFDP and UEA were submitted to the
Government of Ghana for approval in December.
When approved, the GJFFDP and UEA will allow
further development of the Jubilee Field and the
development of the Mahogany and Teak
complexes in the Greater Jubilee area.
Mozambique LNG:
Algeria:
 Gross production averaged approximately 384,000
Bbl/d during the quarter, which was an increase of
12,000 Bbl/d over the 3rd quarter of 2015. The
production increase was due to new wells brought
on line at the HBNS facility and El Merk production
increases following repairs to the dehydration
system.
FOURTH-QUARTER 2015 |OPERATIONS REPORT
OFFSHORE AREA 1 (APC WI 26.5%, OPERATOR)
 The partnership executed a UUOA for the joint
development of the straddling reservoir between
Offshore Area 1 and Offshore Area 4 operated by
ENI. The UUOA is subject to final approval by the
Government of Mozambique.
12
INTERNATIONAL & FRONTIER
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EXPLORATION/APPRAISAL
Colombia:
FUERTE NORTE, FUERTE SUR, PURPLE ANGEL, COL 5 AND URA 4 (APC WI 50%, OPERATOR)
 The Calasu-1 well tested a large four-way structure located approximately 100
miles north of Anadarko’s Kronos discovery. The well finished drilling during the
4th quarter and encountered non-commercial quantities of pay.
BLOCKS COL 1, COL 2, COL 6 AND COL 7 (APC WI 100%, OPERATOR)
 Phase I of the Esmeralda 3D survey, which is approximately 16,300 km², was
completed during the 4th quarter. Acquisition of Phase II of the Esmeralda 3D
survey, approximately 13,000 km2, is anticipated to commence during the 1st
quarter of 2016.
FOURTH-QUARTER 2015 |OPERATIONS REPORT
Côte d’Ivoire:
BLOCK CI-103 (APC WI 65%, OPERATOR)
 A rig is on location to begin a drilling and interference testing program during the
1st quarter of 2016 as part of the continuing appraisal of the Paon discovery. The
program will also include additional appraisal drilling. The data from these
operations are expected to provide insight on reservoir connectivity, deliverability,
fluid properties and reservoir size. Positive results should advance the discovery
toward commerciality.
13
DEEPWATER RIG SCHEDULE
2016
NYSE: APC | www.anadarko.com
2017
2018
2019
2020
Noble Bob Douglas
Rowan Resolute
Bolette Dolphin
Ocean BlackHawk
Ocean BlackHornet
Ocean BlackHornet Drillship
FOURTH-QUARTER 2015 |OPERATIONS REPORT
Bolette Dolphin Drillship
14
GLOSSARY OF ABBREVIATIONS
NYSE: APC | www.anadarko.com
 APC: Anadarko Petroleum Corporation
 MBbl/d: Thousand Barrels of Liquids per Day
 Bbl/d: Barrels of Liquids per Day
 MBOE/d: Thousand Barrels of Oil Equivalent per Day
 BOE: Barrels of Oil Equivalent
 MBOPD: Thousand Barrels of Oil per Day
 BOE/d: Barrels of Oil Equivalent per Day
 MM: Million
 BOPD: Barrels of Oil per Day
 MMBbl: Million Barrels of Liquids
 CBM: Coalbed Methane
 MMBOE: Million Barrels of Oil Equivalent
 COSF: Centralized Oil Stabilization Facility
 MMcf/d: Million Cubic Feet per Day
 EOR: Enhanced Oil Recovery
 NGL: Natural Gas Liquid
 FPSO: Floating, Production, Storage and Offloading Unit
 TCF: Trillion Cubic Feet
 GJFFDP: Greater Jubilee Full Field Development Plan
 TEN: Tweneboa, Enyenra and Ntomme
 HBNS: Hassi Berkine Sud (South)
 UEA: Unit Expansion Agreement
 HZ: Horizontal
 UUOA: Unitization and Unit Operating Agreement
 iDUC: Intentionally Drilled, Uncompleted Wellbore
 WES: Western Gas Partners, LP (NYSE: WES)
 Km: Kilometer
 WI: Working Interest
 LNG: Liquefied Natural Gas
FOURTH-QUARTER 2015 |OPERATIONS REPORT
15