Jefferies 5 th Annual Global Energy Conference

Transcription

1 INVESTOR RELATIONS John Colglazier Senior Vice President 832/ Robin Fielder Director 832/ Jeremy Smith Director 832/ EAGLEFORD SHALE, TEXAS Jefferies 5 th Annual Global Energy Conference Ernie Leyendecker SVP, International Exploration November 11, 2015

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 presentation, including Anadarko s ability to realize its expectations regarding performance in this challenging economic environment, and meet financial and operating guidance, timely complete and commercially operate the projects and drilling prospects identified in this presentation, consummate the transaction described in this presentation, enter into a definitive agreement with an onshore contractor, successfully plan, secure necessary government approvals, finance, build, and operate the necessary infrastructure and LNG park and achieve production and budget expectations. See Risk Factors in the company s 2014 Annual Report on Form 10-K, Quarterly Reports on Form 10-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, the appendix slides or the most directly comparable GAAP financial measures. Also on our website at is a glossary of terms. 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 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, gross resource, recoverable resources, net risked resource, relative resource size, net resource potential, 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, 2014, File No , available from us at or by writing us at: Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The Woodlands, Texas Attn: Investor Relations. You can also obtain this form from the SEC by calling SEC

3 Differentiating Performance Proven Successful Track Record 15+ BBOE* Net Risked Resources Deep and Balanced Portfolio Best-in-Class Capital Allocation Distinct Competitive Advantages Active Portfolio Management *As of March 2015 Exploration Development Proved Reserves Alaska U.S. Onshore Gulf of Mexico North Africa West Africa East Africa Relative Resource Size 3

4 Differentiating 5-Year Track Record 8+% Divestiture-Adjusted Sales-Volume Growth $4.5+ Billion Adjusted Free Cash Flow 160+% Reserve Replacement ~$15/BOE F&D 160+% ~4 BBOE ~65% Reserve Deepwater Exploration/Appraisal Replacement Success Net Discovered Resources ~$12.5 Billion Asset Monetizations Note: See website at for non-gaap definitions/reconciliations 4

5 E&P Capital Allocation (Billions) 2015 Expectations Sales-Volumes (MMBOE) Capital (Billions) 2 $5.4 - $5.6 Reserve Replacement 100+% F&D ($/BOE) ~$20 1 Excludes all 2015 sales volumes associated with EOR, Bossier, and CBM 2 Does not include WES capital investments 2015 Guidance $8 $4 $0 Advantaged Maintenance Capital* Provides Portfolio Flexibility $2.0 $0.5 39% $1.6 $1.1 $1.9 $1.3 $2.0 $2.2 $2.5 $2.9 $2.9 ~$2.7 Liquids Mix 50+% * Maintenance capital is defined as capital investments necessary to keep current-year sales volumes flat to previous year $2.1 $1.8 $2.0 $2.9 ~$ E Maintenance Capital Short Cycle Growth Capital Mid & Long-Cycle Capital 2015 Capital Expectations: $5.4 - $5.6 Billion 2 Short Cash Cycle ~50% Mid Cash Cycle ~30% Long Cash Cycle 10+% <1 Year 1-3 Years 3+ Years Note: See website at for non-gaap definitions/reconciliations 5

6 U.S. Onshore: Preserving Value and Flexibility in 2015 Reduce Onshore Rig Count by ~50% from 2014 Defer ~200 Completions Leverage Midstream Advantage Build Foundation for Wolfcamp Growth Major Horizontal Fields Net Sales Volumes (MBOE/d) U.S. Onshore E Total Sales Volumes* Liquids (MBbl/d)* Wattenberg HZ Eagleford Wolfcamp E. Tx/N. La HZ Marcellus Since 2014 Wattenberg Doubled Rig Productivity Eagleford Reduced Downtime by 25+% 20+% LOE/BOE Reduction * Divestiture-adjusted Note: See website at for non-gaap definitions/reconciliations 6

7 MBOE/d Wattenberg: World-Class Asset 1.5+ BBOE Current Net Resources 500+ MMBOE Upside with Downspacing ~4,000 Identified HZ Drilling Locations Resilient Returns 50+% BTAX Returns Minerals-Interest Uplift Infrastructure in Place for Expanded Growth Wattenberg Net Sales Volumes E Vertical 109 Horizontal 171 * Assuming partial ethane recovery 350+ MBOE EUR/Well 60+% Liquid Composition Consolidated Core Acreage 350+ MBOE EUR/Well 60+% Liquid Composition ~450 MBOE EUR/Well 65+% Liquid Composition * Light Oil Wet Gas Oil 350+ MBOE EUR/Well ~70% Liquid Composition Anadarko Economics Enhanced by Minerals-Interest Ownership BTAX NPV-10 (Millions) $3.5 APC Mineral $1.2 $ MBOE EUR Well Based on $3.3 million well cost and $60 WTI and $3 HH Ownership Advantage 5 Miles WATTENBERG Net Acres: ~350,000 COLORADO APC Acreage APC Mineral Interest HZ Wells 24 Wells Per Section Downspacing Tests 2015 Planned Activity Operate ~7 Rigs Drill 360+ Wells (420+ Type-Well Equivalents) Defer ~120 Well Completions 7

8 MBOE/d Well Costs (Millions) Drilling Time (Days) Eagleford: Maximizing Scale Advantages ~275 MBOE/d Gross Processed Sales Volumes ~2,000 Identified Drilling Locations Testing Stacked-Pay Potential Reduced Rig Count from 10 to 1 Currently 30+% BTAX ROR* Best Drilling Cycle Times in Play Longer Laterals at Lower Cost Maverick 1,500+ Wells Drilled to Date Dimmit EAGLEFORD Gross Acres: ~332,000 Net Acres: ~162,000 TEXAS Infrastructure in Place Webb 10 Miles APC Acreage Drilled Wells Increasing Sales Volumes Improving Well Costs & Efficiencies E $ $5 8 4 $ YTD Drilling Cost Per Well Completion Costs Per Well Spud to RR * $60 WTI and $3 HH and costs as of 9/30/ Planned Activity Operate ~4 Rigs Drill 200+ Wells Defer ~40 Well Completions 8

9 Well Costs, $Million Delaware Basin: Wolfcamp Keeps Getting Bigger & Better 1+ BBOE Net Resource Potential 100+ MMBbl Original Oil in Place per Section 5,000+ Identified Wolfcamp A Locations Preparing for Full-Scale Development Optimize Spacing and Completion Design Utilize Longer Laterals NEW MEXICO TEXAS Culberson Top Tier Acreage Position 800-1,000 MBOE EUR/Well MBOE EUR/Well Winkler DELAWARE BASIN Gross Acres: ~610,000 Net Acres: ~255,000 TEXAS Transition to Field-Wide Pad Activity 35+% BTAX ROR in Current Environment MBOE EUR/Well Ward APC Acreage Driving Down Wolfcamp Well Costs Reeves $12 10 MILES Pecos 2015 Planned Activity Operate 7+ Rigs $6 $ DC&E YTD Cost Savings 3Q15 DC&E Projected Pad Efficiencies Multi-well Development DC&E NGL 27% Gas 27% Oil 46% Gas 15% NGL 15% Oil 70% Drill 70+ Wells Defer 40+ Well Completions 9

10 Billions Estimated Sales Volumes (MBOE/d) Mega Projects Provide Significant Volumes & Cash Consistently Delivering High-Value Growth $3.5+ Billion Value Accelerated Lucius: $476 Million Carry for 6.2% Interest Heidelberg: $860 Million Carry for 12.75% Interest Mozambique: $2.1 Billion Net Divestiture for 10% Interest Transitioning Next-Generation Projects Visible Growth Mozambique First 2 Trains TEN Heidelberg Lucius El Merk Caesar/Tonga $5 $3 Mozambique Proceeds EBITDAX* Capital** Mega Projects Provide Significant Free Cash Flow Jubilee/MTA E 2021E $ E 2016E 2017E 2018E 2019E 2020E 2021E * Based on $60 WTI and $3 HH ** ~60% Mozambique project financing assumed Note: See website at for non-gaap definitions/reconciliations 10

11 Deepwater Gulf of Mexico: Mid-Cycle, High-Margin Oil Lucius Unit 24% WI Lucius KEATHLEY CANYON Shenandoah-4 Shenandoah Basin Shenandoah 30% WI WALKER RIDGE Shenandoah-3 Shenandoah-2 Shenandoah-4ST Salt Heidelberg Unit 31.5% WI Heidelberg Subsea Manifold Spar Location Hadrian South Gas Field Producing ~80,000 BOPD Development Capital Carried Gross Acres ~1.7 Million 297 Gross/169 Net Blocks 920 Boomvang APC WI Block APC WI Facilities APC Discovery Planned Drilling Nansen Gunnison Conger Power Play Shenandoah Lucius Phobos Yucatan 25% WI Caesar/Tonga Constitution Yucatan 95 Baldpate Tahiti Shenandoah Basin Continued Appraisal Success Transitioning to Development K2 Complex Heidelberg Yeti 97 Samurai Blind Faith Independence Hub GREEN CANYON Accelerating First Oil to 2Q16 $860 MM Carried-Interest Agreement ~60% Average Working Interest in ~297 Blocks Operate 7 Floating Facilities Industry-Leading Project-Management Skills Visible Development Project Pipeline 11

12 MBOE/d MBbl/d Ghana & Algeria: High-Margin Oil Ghana Jubilee: Producing 100,000+ BOPD Jubilee: Gas Off-Take to Enable Increased Oil Production TEN: 80,000 BOPD FPSO On Track for Mid-2016 Startup MTA: Advancing Development Plan Algeria 2 Billion Barrels Cumulative Oil Production Achieved 3 Giant Assets On Line El Merk Surpassed 30,000+ Bbls/d Net Production BLOCK 404A HBNS CPF 20 miles 32 kms TEN Complex Enyenra Wawa Proposed FPSO Location Tweneboa Jubilee Unit 24% WI Teak BLOCK miles PK0 16 kms Ourhoud CPF APC WI Block Oil Field Gas Condensate Field Appraisal Area Export Pipeline Ntomme Mahogany Akasa El Merk CPF DEEPWATER TANO (19% WI) WEST CAPE THREE POINTS (31% WI) 60 Ghana Net Sales Volumes 80 Algeria Net Operated Sales Volumes 30 TEN 40 Jubilee/MTA E E 12

13 Mozambique LNG: Competitive Global LNG Supply Source Enormous Recoverable Resources 75+ Tcf on Offshore Area 1 Scalable Onshore Development to 50+ MMTPA Attractive Cost Advantages Close Proximity to Shore Natural Harbor Direct Subsea to Shore Development High Well Deliverability Access to Premium Asian Markets Advantaged Economics 12 MMTPA for Cost of 10 MMTPA 20-Year Off-Take Non-Binding HOAs Pricing Mechanism Protects Economics Financially Derisked $2.1 Billion Net Monetization Proceeds Material Project Financing Available MOZAMBIQUE 17,000 Acre LNG Facility Site 10 Miles 16 km Golfinho/Atum Tubarão Area 1 Prosperidade Orca Tubarão Tigre MOZAMBIQUE OFFSHORE AREA 1 Gross Acres: 1+ Million AFRICA APC WI Block Natural Gas Field Progressing to FID Selected Onshore Contractor 8+ MMTPA Non-Binding HOAs 60+% Funding Indications Received 13

14 2015 Deepwater & International Exploration Activity 2015 CAPITAL BUDGET ~$600 MILLION Gulf of Mexico ~2 MM Gross Acres 4-5 Exploration & Appraisal Wells North Africa ~1 MM Gross Acres Expl Drilling 52% G&G 20% Appr Drilling 28% Colombia ~16 MM Gross Acres 2 Exploration Wells 3D Acquisition West Africa ~3 MM Gross Acres 1 Appraisal Well East Africa ~11 MM Gross Acres 2 Exploration & Appraisal Wells 2015 Planned Activity Drill 10+ Wells New Zealand ~42 MM Gross Acres 3D Acquisition Target 700+ MMBOE Net Discovered Resources 14

15 Creating Unmatched Value with Optionality Exploration Value Creation Program ~6.5 BBOE Net Discovered Resources ~$10 Billion Capital Invested ~$13 Billion Monetized Leveraging Our Exploration Success ~5 BBOE ~250 MBOE/d Resources Retained Net Production $200+ Million Farm-Out Funding in

16 Strong Financial Position $2+ Billion Cash-on-Hand* Material Borrowing Capacity $3 Billion 5-Year Revolving Credit Facility $2 Billion 364-Day Facility $3 Billion Commercial Paper Ability to Align Capital Expenditures with Cash Inflows Continue to be an Active Portfolio Manager $1.3+ Billion Divestitures YTD* Anticipate Periodic WES and WGP Transactions ~$575 Million WGP Monetizations YTD* S&P BBB Stable Moody s Baa2 Stable Fitch BBB Stable Strong Investment-Grade Ratings * As of 10/30/

17 Preserving Value & Positioning for the Future Balanced Portfolio with Unmatched Depth and Quality Demonstrated Commitment to Financial Discipline Efficient Capital-Allocation Approach Active Portfolio Management Sustained Focus on Long-Term Value Creation WATTENBERG FIELD, COLORADO 17