andarko petroleum ubs 2013 global o&g conference presentation
TRANSCRIPT
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8/12/2019 Andarko Petroleum UBS 2013 Global O&G Conference Presentation
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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
www.anadarko.com | NYSE: APC ANADARKO PETROLEUM CORPORATION
INVESTOR RELATIONSCONTACTS:
John Colglazier
Vice President832/636-2306
Brian KuckManager
832/636-1397
Bill TedescoManager
832/636-3375
Frank PattersonVP, International Exploration
May 22, 2013
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A N A D A R K O
www.anadarko.com
NYSE: APC
2www.anadarko.com | NYSE: APC
Anadarkos Competitive Advantage
Values-Based Culture with Focus on Safety and Continuous Improvement
Predictable, Repeatable U.S. Onshore; Low-Cost Operator
High-Margin Oil Mega Projects
World-Class Exploration
Active Portfolio Management
ResourceConversionInvestmentReturns ValueAcceleration
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A N A D A R K O
www.anadarko.com
NYSE: APC
4www.anadarko.com | NYSE: APC
Anadarko Delivered Outstanding Results in 2012
268 MMBOE Sales Volumes: 8% YOY Growth434 MMBOE Reserve Adds for $14.65/BOE*
Predictable, Repeatable Growth
28% YOY U.S. Onshore Drilling-Efficiency Improvement9% YOY Reduction in LOE/BOE
Efficiency Improvements
67% Deepwater Exploration/Appraisal Success Rate2 of the Worlds Largest Discoveries
Industry-Leading Exploration
$1+ Billion of Monetized Assets$6.8+ Billion Market Value Established from IPO of WGP
High-Graded Portfolio
$2.5 Billion - Fully Repaid Revolving Credit Facility$0.9 Billion Adjusted Free Cash Flow
Financial Discipline
*Before the Effects of Price Revisions
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A N A D A R K O
www.anadarko.com
NYSE: APC
5www.anadarko.com | NYSE: APC
Anadarko is Positioned to Deliver in 2013
Sales Volumes (MMBOE)* 279 - 287
Capital (Billions)** $7.2 - $7.6
Reserve Replacement 150+%
F&D ~$15/BOE
*Includes Ethane Rejection Assumptions and Anticipated Weather/Facility Downtime
**Excludes WES Capital Investments and Assumes Carried-Interest Agreements for Heidelberg and Mozambique
U.S. ONSHORE
60%
MIDSTREA
M/OTHER
10%
EXPL
INTERNATIONAL
15%
GULF OF MEXICO
15%
2013 Capital Allocation by Area
206220
235248
268279 - 287
296 - 306
30%
40%
50%
60%
100
225
350
2008 2009 2010 2011 2012 2013E2014E
PcLqd
SalesV
olumes(MMBOE)
Demonstrated Liquids Growth10% Liquids CAGR
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www.anadarko.com
NYSE: APC
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Predictable Growth, Expanding Margins and Value Upside
Confident in 5 - 7% Production CAGR through 2020 at Current PricesAchieved through Identified and Producing Assets
Increased Growth Potential with Sustained $4.50+ Natural Gas Prices
Exploration Provides Additional Value Upside and Optionality
0
100
200
300
400
500
600
2012 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E
Growth from Higher-Margin Liquids
Oil/Liquids Gas Additional Gas at $4.50/Mcf
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NYSE: APC
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U.S. Onshore: Accelerating Value and Enhancing Margins
10% Sales-Volume Growth to~570,000 BOE/d
35% Growth in Oil Volumes
Allocating Capital to ProjectsGenerating 30 - 100+% ROR
GNB
Operated Wells 200+
89
2012 2013E
PERMIAN
Operated Wells 100+
172012 2013E
EAGLEFORD
Operated Wells 250+
332012 2013E
EAST TEXAS
Operated Wells 75+
392012 2013E
MARCELLUS
Operated Wells 70+
54
2012 2013E
WATTENBERG
Operated Wells 300+
912012 2013E
2013 Planned Activity
~90~120
~80
~50~50
~20
~$12/BOE Reserve-Replacement Cost
Wedge Volumes Added at $35,000 per
Flowing BOE/d
Midstream Expansion to Enable Growth
Sales Volumes (MBOE/d)
Sales Volumes (MBOE/d)
Sales Volumes (MBOE/d)
Sales Volumes (MBOE/d)
Sales Volumes (MBOE/d)
Sales Volumes (MBOE/d)
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NYSE: APC
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5.3
2.4
350 MBOE EUR Well
1.0 to 1.5 BBOE Net Resources~4,000 Horizontal Drill Sites
350 MBOE EUR per Well
Optimizing Lateral Lengths, Spacing and Completions
$6.7 Million BTAX NPV per Well100+% ROR at Current Prices
Converting $2 Billion BTAX Value in 2013Doubling Well Activity to 300+ Planned Wells
Expanding Enabling Infrastructure
Mineral Interest Enhances Returns
Wattenberg: Accelerating $15+ Billion of Value
~350,000 Net Acres in Core Wattenberg
Arapahoe
Adams
Morgan
Jefferson
Douglas
Boulder
Elbert
Larimer
Denver
10 Miles
4855 61
73
91
~120
0
70
140
2008 2009 2010 2011 2012 2013E
M
Increasing Sales Volumes
Based on $4.3 Million Well Cost & Unescalated
NYMEX Prices of $90/Bbl and $3.50/Mcf
Anadarko Economics Enhancedby Land Grant Position
($ Millions)
7.7APC Mineral
OwnershipAdvantage
APC Land Grant and Leasehold
Core Wattenberg Area
Area of 2013 Activity
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www.anadarko.com
NYSE: APC
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Wattenberg: Expanding Infrastructure Advantage
Year-End2012 InfrastructureGas Gathering Pipelines ~3,000 Miles
Oil Gathering Pipelines 32 Miles
Processing Capacity 400 MMcf/d
Compression 110,000 HP
Gas Gathering System Capacity 450 MMcf/d
Oil Gathering Throughput 12 MBOPD
Expanding Compression, Gathering andProcessing
Oil Rail Terminal Expected in Service 3Q13
Front Range NGL Pipeline Expected inService 4Q13
300 MMcf/d Lancaster Cryo Plant Expectedin Service 1Q14
Evaluating Expansions
0
200
400
600
800
1,000
Jan-12 Jul-12 Jan-13 Jul-13E Jan-14E
PlantInlet(MMcf/d)
Gas Processing Capacity Aligned
with Production Growth(Illustrated through 1Q14)
0
20
40
60
80
100
120
Jan-12 Jul-12 Jan-13 Jul-13E Jan-14E
MBOPD
Oil Takeaway Capacity Aligned
with Production Growth(Illustrated through 1Q14)
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NYSE: APC
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18
2133
~50
0
10
20
30
40
50
2009 2010 2011 2012 2013E
MBOE/d
Increasing Sales Volumes
~600,000 BOE EUR per Well2,500+ Identified Drill Sites
65% Liquids Composition
Large-Scale Infrastructure Additions200 MMcf/d Brasada Plant Expected inService 2Q13
NGL and Gas Line to Premium Markets
Industry-Leading Drilling Cycle Times
Eagleford: Delivering Significant Growth
$1.0
$1.5
$2.0
0
5
10
15
20
2010 2011 1Q12 2Q12 3Q12 4Q12
AgCPWeMo
Days
Drilling Efficiencies and Cost Control
Spud to RR Cost per Well
Brasada Plant Construction
~400,000 Gross Acres~200,000 Net Acres
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Consistent, On-Time, On-Budget DeliveryStandardized Process, Technology andEquipment
Accelerate Value through Carried-Interest Agreements
Lucius - $556 Million
Heidelberg - $860 Million
Mozambique - TBD
Significant Future EBITDAX Generationfrom Identified Mega Projects
Mega Projects: Delivering High-Impact Growth and Cash Flow
*Assumes Carried-Interest Agreements for Heidelberg and First Two Trains in Mozambique
0
90
180
Es
timatedSalesVolumes(MBOE/d)
Advancing Identified Mega Projects
Jubilee / MTA
Caesar / Tonga
El Merk
Lucius
Heidelberg
TEN Complex
Mozambique
First 2 Trains
2010 2020E
0
2,500
5,000
2010 2011 2012 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E
$Millions
Capex
EBITDAX
Identified Mega Projects Deliver Significant Value*(Based on Unescalated NYMEX Prices of $90/Bbl and $3.50/Mcf)
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www.anadarko.com
NYSE: APC
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Sub-Salt Pliocene
Norphlet
Gulf of Mexico: Enhancing High-Margin Oil Projects
Anadarko WI Block
Planned Activity
APC Discovery
Lower Tertiary
Lucius Unit28% WI
Heidelberg31.5% WI
Caesar/Tonga34% WI
Miocene
Caesar/Tonga200 - 400 MMBOE Resource
$1 Billion Capital Avoided byLeveraging Existing Infrastructure
Oil Production Began 1Q12
4th Well On Line Mid-2013
Shenandoah Basin
Emerging Development Area
140
144
9998
Shenandoah
Basin
96
95
5251
Yucatan
15% WI 143
Lucius300+ MMBOE Resource
Expected Capital Carried through FirstProduction
World-Class Reservoir Quality andDeliverability
On Time, On Budget for First Oil 2014
Heidelberg200 - 400 MMBOE Resource
Expected Capital Carried throughFirst Production
Replicating Lucius Spar Design
Ordered Long-Lead Items
First Oil Anticipated Mid-2016
Shenandoah30% WI
Coronado
15% WI
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A N A D A R K O
www.anadarko.com
NYSE: APC
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Ghana and Algeria: High-Margin Oil Producers
Algeria
~1.7 Billion Barrels of Gross Oil Producedto Date
Enhanced Value from TPE Resolution
El Merk Achieved First Oil
Expected Ramp to ~30,000 Bbl/d by YE13
Drives 10+% YOY Algeria Growth
Ghana
Jubilee: Producing ~110,000 BOPD
TEN: Second Major Oil Development
Miles
100
West Cape Three Points
31% WI
Deepwater Tano
18% WI
Ntomme
Tweneboa
Enyenra
Teak
Mahogany
Akasa
Jubilee
Wawa
Planned
FPSO
Block 404a
PK0
Block 208
0 10
Miles
HBNS CPF
Ourhoud CPF
El Merk CPF
Anadarko WI BlockOil FieldGas Condensate FieldProspect
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A N A D A R K O
www.anadarko.com
NYSE: APC
14www.anadarko.com | NYSE: APC
35 to 65+ Tcf of Recoverable Natural GasDISCOVEREDMASSIVERESOURCE
Wells Capable of Producing 100 - 200 MMcf/dCONFIRMEDRESERVOIRQUALITYAND
DELIVERABILITY
Supports Initial LNG Trains for ProsperidadeRECEIVEDRESERVESCERTIFICATION
Maintained Schedule for First Cargo in 2018SIGNEDHOA WITHAREA-4 OPERATOR
Offshore Gathering and Onshore ConstructionAWARDEDCOMPETITIVEFEED CONTRACTS
Mozambique: Advancing Toward 50 MMTPA
0
800
1,600
2018E 2020E 2022E 2024E 2026E 2028E 2030E 2032E 2034E 2036E 2038E 2040E 2042E 2044E
MBOE/
d
Mozambique Offshore Area 1: Notional 50 MMTPA Gross Production
0
20
4060
80
100
MMTP
A
Projected Liquefaction Capacity
Assumes Future 10-Train Mozambique Development
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A N A D A R K O
www.anadarko.com
NYSE: APC
15www.anadarko.com | NYSE: APC
Exploration: Focusing on Play-Opening Opportunities
Leveraging Exploration Success
Testing New Plays
Expanding the Portfolio
Planned 2013 Activity
Planned Divestiture
6 - 8 Exploration / Appraisal Wells
~3 MM AcresGulf of Mexico
Seismic Acquisition and Processing
~13 MM AcresSouth America
2 Exploration Wells
~15 MM AcresNorth Africa
7 - 9 Exploration / Appraisal Wells
~5 MM AcresWest Africa
Seismic Acquisition and Processing
~23 MM AcresSouth Africa
7 - 9 Exploration / Appraisal Wells
~6 MM AcresMozambique
2 Exploration Wells
~6 MM AcresKenya
1 - 2 Exploration Wells
~2 MM AcresSouth China Sea
~1 Exploration Well
~10 MM AcresNew Zealand
2013 Net Discovered Resources Target: 800+ MMBOE
~25 Deepwater Exploration/Appraisal Wells
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A N A D A R K O
www.anadarko.com
NYSE: APC
16www.anadarko.com | NYSE: APC
Mozambique: Focusing on Upside Potential
~6 MM Gross Acres
MOZAMBIQUE
0 15
Miles
Tubaro
Linguado
Offshore Area 1
APC Operated
36.5% WI
Moreia
Espadarte
Anadarko WI Block
Planned Drilling
Natural Gas Field
Prospects
A
A
ESPADARTE 1
ORCA
DISCOVERY
GOLFINHO
DISCOVERY
LINGUADO 1MOREIA 1
A A
Exploring Full Stratigraphic
ColumnLow-Dip Stratigraphic andStructural Traps
2013 Planned Activity4 - 5 Exploration Wells
2 - 3 Appraisal Wells
Orca
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A N A D A R K O
www.anadarko.com
NYSE: APC
17www.anadarko.com | NYSE: APC
Kenya: Testing a New Deepwater Basin
Potential for Oil
Very Large Traps
Significant Follow-On Prospects
Farm-Out Recovered Historical Costs
Partial Drilling Carry
KIBOKO-1A A
Jurassic
Carbonate
Upper
Cretaceous
Lower
Cretaceous
0 25
Miles
Anadarko WI Block
Planned Drilling
Prospects
Seismic
~6 MM Gross Acres
KENYA
APC Operated
45% WI
L-11A
L-11B
Kiboko
A A
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A N A D A R K O
www.anadarko.com
NYSE: APC
18www.anadarko.com | NYSE: APC
Sub-Salt Pliocene
Norphlet
Gulf of Mexico: Expanding Success
GULFOFMEXICO
~ 3MM Gross Acres
Anadarko WI Block
Planned Drilling
APC Discovery
Miocene
Deep Nansen
35% WI
Yucatan
15% WI
K2 Deep
42% WI
Haleakala
67% WI
Stromboli
50% WI
Raptor
50% WI
Outstanding Success in Shenandoah Basin
Phobos Discovery Drilling First Norphlet Test at Raptor
Lower Tertiary
Shenandoah30% WI
Coronado15% WI
Phobos30% WI
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A N A D A R K O
www.anadarko.com
NYSE: APC
19www.anadarko.com | NYSE: APC
Exploration: Creating Unmatched Value and Optionality
2004-20
12
NETDISCOVEREDRESOURCES 5+ BBOE
CAPITALINVESTED ~$8 Billion
MONETIZED ~$8 Billion
VALUERETAINED~200 MBOE/d Net Production
~4 BBOE Resources
LuciusHeidelberg
Mozambique
Vito
Shenandoah
PaonFuture Discoveries
Indonesia
Brazil
DISCOVERY
OPTIMIZE
APPRAISE
DIVEST0
50
100
150
200
250
300
350
ProductionRate
(MBOE/d)
Significant Value Retained
Mozambique
TEN
Heidelberg
Lucius
Caesar Tonga
Avalon
Jubilee
Eagleford
Marcellus
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A N A D A R K O
www.anadarko.com
NYSE: APC
20www.anadarko.com | NYSE: APC
Exercising Financial Discipline
$3.7 Billion of Cash on Hand as of 1Q13
2013 Capital Investments within Cash Flow
Cash Flow Protected with Tactical Hedges
Planned and Opportunistic Monetizations$1.2+ Billion of Monetizations in 1Q13
Anticipate Periodic WES and WGP Transactions
$500 Million Asset Sale Completed from APC to WES
Strengthening the Balance SheetNet Debt to
Adjusted Capital
Year-End 2011 41%
Year-End 2012 34%As of 1Q13 32%
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A N A D A R K O
www.anadarko.com
NYSE: APC
21www anadarko com | NYSE: APC
Providing Transparent Growth with Unmatched Optionality
ResourceConversionInvestmentReturns
ValueAcceleration
Values-Based Culture of Safety and Continuous Improvement
Predictable, Repeatable U.S. Onshore; Low-Cost Operator
High-Margin Oil Mega Projects
World-Class Exploration
Active Portfolio Management