ANADARKO PETROLEUM CORPORATION - Center for Strategic and

www.anadarko.com | NYSE: APC

ANADARKO PETROLEUM CORPORATION

Danny Brown

General Manager, Maverick Basin

PUBLIC AFFAIRS

CONTACTS:

John Colglazier

Vice President

832/636-2306

John Christiansen

Director

832/636-8736


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 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 the following: the Company’s ability to successfully

defend itself against any remaining claims relating to the Deepwater Horizon event (including, but not limited to, fines,

penalties and punitive damages) and BP’s ability to fulfill its indemnification obligations to Anadarko; the legislative

and regulatory changes, such as the delays in processing and approval of drilling permits, exploration plans and oil

response plans that may impact the Company’s Gulf of Mexico and International offshore operations resulting from the

Deepwater Horizon events; Anadarko’s ability to achieve its production targets, successfully manage its capital

expenditures and to complete, test and produce the wells and prospects identified in this presentation; to successfully

plan, secure necessary government approvals, finance, build and operate the necessary infrastructure and LNG plant;

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 2010 Annual Report on Form 10-K, 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.

Please also see our Web site at www.anadarko.com under “Investor Relations” for reconciliations of the differences between any

non-GAAP measures used in this presentation and the most directly comparable GAAP financial measures.

Cautionary Note to U.S. Investors — Effective January 1, 2010, the U.S. 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. We may use terms in this presentation, such as “resources,” “net

resources,” “net discovered resources,” “net risked resources,” “net lower-risked captured resources,” “net risked

captured resources,” “gross resources,” “gross resource potential,” “gross unrisked resource potential,” “gross

unrisked resources,” “lower-risked captured resources,” “recoverable resources,” “recoverable natural gas” and

similar terms that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are

urged to consider closely the oil and gas disclosures in our Form 10-K for the year ended December 31, 2010, File No.

001-08968, available from us at www.anadarko.com or by writing us at: Anadarko Petroleum Corporation, 1201 Lake

Robbins Drive, The Woodlands, Texas 77380 Attn: Investor Relations. You can also obtain this form from the SEC by

calling 1-800-SEC-0330.


About Anadarko

Top U.S. Independent E&P company

~ 4,700 employees worldwide

11+ BBOE of total Resource

Active player in many shale basins

Extensive experience in both onshore and offshore exploration and development

3

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.


Our Premier Balanced Portfolio is Built to Deliver

4

Our Strategy is Working:

Identify and Commercialize Resources

Explore in High-Potential, Proven Basins

Employ a Global Business Development Approach

Ensure Financial Discipline and Flexibility


Known U.S. Shale Play Distribution

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Palo Duro Woodford

Avalon

Barnett Haynesville

Fayetteville

Floyd/ Conasauga

Niobrara/Mowry

Cane Creek Monterey

Michigan Basin

Utica Shale

Horton Bluff Formation

New Albany

Marcellus

Antrim

Lewis/Mancos

Green River

Gammon

Colorado Group

Bakken

Montney Deep Basin

Horn River Basin/ Cordova Embayment

0 600

MILES

Eagleford Modified from various sources.

OIL SHALE

NATURAL GAS SHALE

Niobrara

USGS Resource Assessment :

336,145 BCF of Shale Gas

+ 8,580 Million BOE of Shale Oil

64.6 Billion Barrels Oil Equivalent in US Shales


Elements of a Successful Shale Play

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Below

Ground

Maturity

Organic Richness

Pore

Pressure

Thickness

Mineralogy

Poro

Perm

+

Access

Water

Equipment

Fiscal

Regime

Environment

Personnel

Politics

Above

Ground Importation

/Regulation


IRR at NYMEX Price Deck (1)

Eagle Ford Shale Economics

The decline in natural gas prices has made the differentiation among the plays more important

The liquid-rich Eagle Ford shale provides the highest returns across the shale plays

Drivers for Anadarko return:

Liquid-rich production

Moderate drilling depth

High BTU gas

Favorable differentials

(1) Based on Jefferies’ internal estimates and publicly available shale production information.

Liquids Content Drives Superior Returns

>100%

59%

43%

24%21%

11%

4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Eagle FordCore

BakkenCore

Marcellus Fayetteville Haynesville Barnett Woodford


Eagle Ford Shale

15,000 sq miles (39,000 km2)

High TOC / Low clay content

Significant liquid rich Eagle Ford resource potential extending over 400 miles (25+ BBOE)

Ultimate well count could be up to 120,000 locations

211 rigs in the play, up from 15 in 2009 Eagle Ford Play

Gross Production

0

50

100

150

200

250

Q1

'07

Q2

'07

Q3

'07

Q4

'07

Q1

'08

Q2

'08

Q3

'08

Q4

'08

Q1

'09

Q2

'09

Q3

'09

Q4

'09

Q1

'10

Q2

'10

Q3

'10

Q4

'10

Q1

'11

Q2

'11

Q3

'11

Q4

'11

Eagle Ford Rig Count

10% of all US Rigs

Source: Texas Railroad Commission Source: Tudor Pickering Holt & Co Weekly Rig Roundup

0

5

10

15

20

25

30

35

40

45

50

2008 2009 2010 2011 (Jan-aug)

Pro

du

ctio

n -M

illio

n B

arre

ls o

f O

il Eq

uiv

elen

t (6

:1)

Condensate

Oil

Gas (at 6:1)


http://www.eia.gov/todayinenergy/detail.cfm?id=3770

YE 2010

Eagle Ford Development

http://www.eia.gov/todayinenergy/detail.cfm?id=3770


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Anadarko Eagle Ford: Stellar Growth

450+ MBOE Average EUR

4,000+ Identified Drill Sites

Infrastructure Backbone in Place

2012 Planned Activity

11 Operated Rigs

Drill 250+ Wells

TX

Concentrated in

Condensate-Rich Window

Gross Acreage: ~400,000

Net Acreage: ~200,000

APC ACREAGE ACTIVE APC DEVELOPMENT

0 10

Miles 45%

30%

25%

Sales-Volumes Mix

Oil

Gas

NGLs


Shale Development Value Drivers

11

Value Creation

Commercial Technology

Operational

Efficiencies

• Pilot/Data Gathering

• Structural Analysis

• Modeling

• Sweet Spot Identification

• Target Line

• Sustained Economics

• Multi-year Investment

• Market Response

• Low-cost Drill & Complete

• Water Management

• Infrastructure

• Scale Synergies


Development Methodology

Kickoff

~6,300 feet

6,000’

12

1+ Mile Separates Aquifer

from Fractured Formation

Multiple layers of

protective steel &

cement


Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11

Eagle Ford Production

13

Anadarko 0 50 100 150 200

ANADARKO E & P COMPANY LIMITED…

EOG RESOURCES INCORPORATED

PETROHAWK OPERATING COMPANY

CHESAPEAKE OPERATING…

SM ENERGY COMPANY

PIONEER NATURAL RESOURCES USA INC

BURLINGTON RESOURCES O&G CO LP

LEWIS PETROLEUM PROPERTIES…

GEOSOUTHERN ENERGY CORPORATION

ROSETTA RESOURCES OPERATING LP

Well Count

Barr

els

of O

il E

quiv

ale

nt

Top 10 Eagle Ford Companies

Source: Texas Railroad Commission


Regional Infrastructure

14

Bakken

Eagle Ford

Bakken

Eagle Ford

Anadarko Gas Gathering Facility


Eagle Ford Impact

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Dimmit County - Based on 2008 Statistics:

Area: 1,331 sq miles

Population: 9,739

(7.7 people/sq mi)

Housing Units: 4,244

Per Capita income: $23,726

1 Hospital

3 Elementary Schools

2 Intermediate Schools

1 High School

Estimated that nearly 70,000

local jobs will be provided by

Eagle Ford activity.

Perspective: State of Rhode Island is 1,214 sq miles


Summary

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Shale development will be a major source of production and reserves for several decades.

Development environment must be competitive and predictable.

All shales are not created equal and each shale has variable surface and subsurface elements

Shale development must be carried out in a safe, prudent, and environmentally responsible manner

Full development requires significant resource intensity: People

Capital

Equipment

Infrastructure

Substantial potential local economic benefit exists through shale development

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ANADARKO PETROLEUM CORPORATION - Center for Strategic and