ANADARKO PETROLEUM CORPORATION 

# Reviewing Operators Strategies

for Sourcing Large Volumes of Freshwater for Hydraulic Fracturing Operations in the Context of Competition from other Industries

By Erik Anglund Water Resource Engineer October 29, 2014

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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. 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 consummate the transaction described in this presentation, to meet financial and operating guidance, to achieve its production targets, successfully manage its capital expenditures, including entering into carried-interest agreements, timely complete and commercially operate the projects and drilling prospects identified in this presentation, to successfully plan, secure necessary government approvals, finance, build and operate the necessary infrastructure and LNG park, consummate previously announced transactions, and to achieve its production and budget expectations on its mega projects. See “Risk Factors” in the company’s 2012 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 www.anadarko.com under “Investor Relations” for reconciliations of the differences between any non-GAAP measure used in this presentation and the most directly comparable GAAP financial measures.
Cautionary Note to U.S. Investors: The United States 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. Anadarko uses certain terms in this news release, such as “resources,” “net resources,” “net discovered resources,” “net risked resources,” “resource opportunity,” “estimated ultimate recovery,” “resource potential,” “resource estimate,” “incremental recoverable resources,” “recoverable natural gas,” “net resource estimate,” “recoverable resource,” “net resource estimate,” “discovered resources,” and similar terms that the SEC’s guidelines strictly prohibit Anadarko from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in Anadarko’s Form 10-K for the year ended Dec. 31, 2012, File No. 001-08968, available from Anadarko at www.anadarko.com or by writing Anadarko at: Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The Woodlands, Texas 77380, Attn: Investor Relations. This form may also be obtained by contacting the SEC at 1-800-SEC-0330.

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Production Exploration Among the World’s Largest Independent Oil and Natural Gas E&P Companies Included in the S&P 100 Index with 6,000+ Employees Worldwide
Headquartered in The Woodlands, TX with Operations in 15+ Countries

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OIL AND NATURAL GAS NATURAL GAS SHALE PLAY GREEN RIVER

GNB

PERMIAN POWDER RIVER

WATTENBERG HZ Net Acreage: ~15 Million

EAST TEXAS/HAYNESVILLE

EAGLEFORD MARCELLUS 

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### Anadarko’s U.S. Onshore Properties: Produce enough energy to heat/cool ~25 million average homes daily



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### Anadarko’s Operations in Colorado: Invested $1.5+ billion in the Wattenberg HZ program in 2013 Directly employ 1,500+

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1st Job: July of 1947 - Stanolind Oil and Gas Klepper No. 1, Hugoton Gas Field Grant Co., KS

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Hydraulic Fracturing In Colorado Education Safety

Water Land Public Health

Chemical Exposure Worker Safety Emergency Response Regulatory Oversight

Significant Water Demand

Limited Water Supply

Groundwater Contamination Water Disposal &

Recycle

Contamination Earthquakes

Property

Values Wildlife Habitat

Noise & Disruption Traffic & Infrastructure

NIMBY Exploration

Company

Fracking Process

Fracking Chemicals Reliable Information

Sources

Fracking Impacts

Fracking Benefits



### STAKEHOLDER CONCERNS

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Biocide

Acid Friction Reducer Surfactants

Breaker

Crosslinker

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Source: Colorado Oil & Gas Conservation Commission 2010. In 2015, the COGCC projects that water usage related to hydraulic fracturing is expected to be slightly more than one-tenth of one percent of the total water used.

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# Hydraulic Fracturing Water Usage 0.1%

8(90#*47*



## At an estimated maximum build out for Colorado wells, oil and natural gas development would only account for 0.1% of all of Colorado’s total water use.ANADARKO PETROLEUM CORPORATION 

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Lawrence Jones Custer Grasmick LLP

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Permit all or a portion of a senior water right to be used for M&I uses pursuant to voluntary contractual arrangements Maintain the economic benefit of the senior water right in its region of origin

Retain sufficient water supply in the region of origin to sustain agricultural activities.ANADARKO PETROLEUM CORPORATION 

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Drilling Rig: 10-20 Days Hydraulic Fracturing: ~1-4 Days

Producing Well: 20+ YearsANADARKO PETROLEUM CORPORATION



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