Fourth-Quarter 2011 February 6, 2012

Anadarko Petroleum Corporation www.anadarko.com nyse:apc OPERATIONS REPORT Fourth-Quarter 2011 February 6, 2012 Cautionary Note... 2 Overview... 2 Drilling Efficiencies... 4 Rockies... 5 Southern & Appalachia... 8 Gulf of Mexico... 11 International / Frontier... 15 w INVESTOR RELATIONS CONTACTS: John Colglazier Clay Gaspar Wayne Rodrigs Vice President 832/636-2306 Manager 832/636-2541 Manager 832/636-2305

OVERVIEW This report 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 report, including the following: Anadarko 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 delays in the processing and approval of drilling permits, exploration plans and oil spill response plans, that may impact the company s Gulf of Mexico and International offshore operations resulting from the Deepwater Horizon event; the Company s ability to achieve its production and budget expectation on its mega projects; Anadarko s ability to achieve its production targets, successfully manage its capital expenditures, successfully plan, build and operate an LNG project, and to complete, test and produce the wells and prospects identified in this report. Other factors that could impact the 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. Cautionary Note to U.S. Investors: Effective Jan. 1, 2010, 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 report, such as recoverable natural gas resources, net resource potential," recoverable resource estimate, estimated ultimate recoveries, estimate of gross recoverable resources, net resource opportunity, estimated recoverable resource range, 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, 2010, 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. Anadarko delivered strong results for the 4 th quarter. The power of its capital-efficient portfolio is evident in the record sales volumes for the full-year 2011, attaining the high end of sales-volumes guidance with capital spending at the low end of guidance. During the quarter, the company achieved an 83% success rate in deepwater exploration and appraisal drilling, established a net resource potential of 500 million to 1.5 billion barrels of oil equivalent (BOE) in the Wattenberg horizontal (HZ) play, more than tripled the original recoverable resource estimate offshore Mozambique to 15 to 30+ trillion cubic feet (Tcf), sanctioned the development of the Lucius project in the Gulf of Mexico, and announced its first post-moratorium deepwater discovery in the Gulf of Mexico. All of this was accomplished while attaining the best safety performance in the company s history. Sales volumes of 63 million BOE for the quarter were 12% higher than the same period of 2010, driven by an 18% increase in higher-margin liquids volumes. The company continues to accelerate growth in its liquids-rich U.S. onshore resource plays as demonstrated by record sales volumes during the quarter in the Eagleford Shale, Wattenberg field, Greater Natural Buttes area and Bone Spring play. Relative to the 4 th quarter of 2010, liquids sales volumes for the 4 th quarter of 2011 increased by 75% in the Eagleford Shale, 48% in the Wattenberg field, 38% in the Greater Natural Buttes area and about 125% in the Bone Spring play. At year end, Anadarko s shale plays accounted for more than 10% of the company s total sales volumes, which compares to less than 1% at the beginning of 2010. During the quarter, Anadarko updated the resource potential of its horizontal Niobrara and Codell drilling program in the liquids-rich Wattenberg field. Results of the Wattenberg HZ drilling program indicate a net resource potential of 500 million to 1.5 billion BOE. The company has identified 1,200 to 2,700 future drilling locations with estimated ultimate recoveries of 300,000 to 600,000 BOE per well. Well costs are expected to average $4 to $5 million per well and the liquids ratio is expected to be about 70%. The economics of the play are enhanced further by Anadarko s extensive mineral ownership through the Land Grant, providing for royalty revenue from operated and non-operated activity. Anadarko s access to midstream assets in the region provide takeaway capacity, enabling rapid expansion of production in this multi-billion dollar opportunity. Offshore Mozambique, Anadarko drilled a discovery well at Camarão and a successful appraisal well at Barquentine-3 during the quarter. Based on the cumulative drilling success, the company increased its estimate of gross recoverable resources to 15 to 30+ Tcf of natural gas, making this one of the world s most significant natural gas discoveries in the last decade. The partnership is advancing plans for a liquefied natural gas (LNG) development initially designed for two, 5-million-tonne-per-annum trains. Anadarko recently announced its seventh successful well in the discovery area at the Lagosta-2 appraisal well, which encountered 777 net feet of natural gas pay. In the Gulf of Mexico, Anadarko and its partners sanctioned development of the Lucius project, which is expected to achieve first production during 2014. Also, in the Gulf of Mexico, the company recorded its first post-moratorium deepwater discovery at the Cheyenne East well. The well is being connected to the Independence Hub facility with first production expected by the end of the 1 st quarter of 2012. Anadarko replaced 159% of its proved reserves in 2011 and ended the year with estimated proved reserves of 2.54 billion BOE, of which 71% were proved developed reserves. The company added 377 million BOE of proved reserves from the drill bit and incurred exploration and development costs of about $5.6 billion. 2

OVERVIEW VOLUMES Sales volumes for the quarter were at the high end of guidance at 63 million BOE, representing a 12% increase over the 4 th quarter of 2010. This was driven by an 18% increase in sales volumes of highermargin liquids. For the full year, sales volumes were a record 248 million BOE, 6% above 2010 and matching the high end of guidance. Continued allocation of capital to the company s liquids-rich opportunities resulted in 2011 average liquids sales volumes of more than 290,000 barrels per day, an increase of 10% over 2010. Sales Volumes 4Q11 4Q10 MMBOE MMBOE Rockies 29 25 Southern & Appalachia 14 11 Lower 48 43 36 Alaska 2 2 Gulf of Mexico 10 11 Total U.S. 55 49 International 8 7 Total Company 63 56 800 600 400 200 0 Sales Volumes Thousands of BOE/d 680 643 603 563 2008 2009 2010 2011 Gas Liquids CAPITAL SPENDING Capital expenditures during the 4 th quarter were $1.9 billion, which was at the low end of guidance. Efficiencies attained throughout 2011 resulted in full-year capital expenditures of $6.1 billion (excluding WES capital spending), which was at the low end of guidance, while achieving sales volumes at the high end of guidance. Capital Spending 4Q11 $MM Rockies 572 Southern & Appalachia 513 Lower 48 1,085 Alaska 13 Gulf of Mexico 256 Total U.S. 1,354 International 313 Midstream 204 Capitalized Items / Other 71 Total Company* 1,942 *Includes WES capital spending of $56 million. Average Operated Rig Activity 4Q11 3Q11 Rockies 22 21 Southern & Appalachia 32 30 Lower 48 54 51 Alaska 0 0 Gulf of Mexico 2 1 Total U.S. 56 52 International 7 5 Total Company 63 57 3

DRILLING EFFICIENCIES Anadarko continued to realize operational efficiency gains through reduced drilling and completion cycle times that have helped offset inflationary pressures in the U.S. onshore resource development plays. During 2011, the company drilled a total of approximately 14 million feet in the U.S. onshore, which is more than the distance from New York to Los Angeles, and completed approximately 10,000 frac stages during 2011. In the Rockies region, 2011 saw record drilling cycle times and cost per-foot improvements in all of the Rockies asset areas. In Greater Natural Buttes, a record was set during the quarter for drilling cycle time of 3.5 days from spud to rig release, a full-day improvement over the previous record. Based on information compiled by Rigs & Driller s Annual Survey, Anadarko s Rockies region had the three top rated U.S. land rigs under contract during 2011 and 16 of the region s 25 rigs were rated in the top 4% of the U.S. land-based fleet. In the Southern & Appalachia region, the company, for the first time, drilled an Eagleford well in less than eight days during the quarter and drilled approximately 40 Eagleford wells in less than 10 days during 2011. The region set a record of 1,547 frac stages completed during the quarter and completed 5,165 frac stages for all of 2011, an increase of more than 175% from 2010. In addition, the hours per frac stage improved in the Eagleford, Bone Spring and Marcellus by 25%, 21% and 15%, respectively, from the beginning of 2011 to the end of the year. With these efficiency gains, the company was able to reduce the cost per stage by approximately 10% from the beginning of 2011 to the end of the year. Days Days Days 35 30 25 20 15 10 5 0 15 12 9 6 3 0 30 25 20 15 10 5 SPUD TO RIG RELEASE OPERATED WELLS Bone Spring 34.9 14.1 29.8 29.9 21.9 2010 2011 RECORD Eagleford 13.0 21.3 7.7 2010 2011 RECORD Marcellus 12.2 0 2010 2011 RECORD 4

ROCKIES During the 4 th quarter, sales volumes in the Rockies of 315,000 BOE per day (BOE/d) were 15% higher than the 4 th quarter of 2010, driven by a 26% increase in liquids sales volumes. Anadarko drilled a total of 273 wells in the Rockies during the 4 th quarter. Sales Volumes 4Q11 4Q11 4Q11 4Q10 4Q10 4Q10 Gas NGLs Oil Gas NGLs Oil MMcf/d MBbl/d MBbl/d MMcf/d MBbl/d MBbl/d Greater Natural Buttes 380 13 2 308 9 2 Wattenberg 222 16 23 210 8 19 Pinedale / Jonah 167 3 1 100 3 1 Wamsutter 113 11 2 118 9 2 CBM 414 0 0 422 0 0 EOR 1 0 11 1 0 11 Other 79 2 2 73 3 1 Total 1,376 45 41 1,232 32 36 350 300 250 200 150 100 217 Rockies Sales Volumes Thousands of BOE/d 276 249 303 Greater Natural Buttes Wattenberg Pinedale / Jonah Wamsutter CBM EOR Other Total Capital Spending Average Rig Activity 4Q11 4Q11 3Q11 $ MM Oper Oper 144 8 7 192 7 8 45 0 0 29 1 1 23 3 1 58 0 1 81 3 3 572 22 21 50 0 2008 2009 2010 2011 Gas Liquids 5

ROCKIES estimated ultimate recoveries (EUR) of 300,000 to 600,000 BOE per well; initial well costs of $4 to $5 million; and a liquids ratio of about 70%. Initial production rates of the first 11 horizontal wells averaged 800 BOE/d. Anadarko s best horizontal well to date, the Dolph 27-1HZ, demonstrated an initial production rate of more than 1,100 barrels of oil per day (BOPD) with more than 2.4 million cubic feet per day (MMcf/d) of natural gas, resulting in an estimated EUR of better than 600,000 BOE, and paid out in less than four months. TIGHT GAS/OIL DEVELOPMENT Wattenberg/Greater DJ and Powder River Basin: The Wattenberg field set a record for quarterly sales volumes during the 4 th quarter averaging 76,400 BOE/d, an increase of 24% over the 4 th quarter of 2010, driven by a 48% increase in liquids sales volumes. The company drilled 69 vertical and directional wells in the Wattenberg field during the quarter, utilizing three operated drilling rigs. In addition, Anadarko drilled 16 horizontal wells with four horizontal rigs. The company is currently producing from 33 horizontal wells in the play. In November, Anadarko provided an update on its horizontal Niobrara and Codell opportunity in the Wattenberg field. The highlights included a net resource opportunity of 500 million to 1.5 billion BOE; 1,200 to 2,700 future drilling locations; The company holds more than 350,000 net acres in the Wattenberg field, and operates more than 5,300 wells with an average working interest of approximately 96% and an average net-revenue interest of approximately 88%. The company will be conducting extensive tests to define the optimum spacing and lateral lengths for the Niobrara and Codell formations and plans to increase the Wattenberg HZ drilling program to seven rigs by the end of 2012, and drill approximately 160 horizontal wells during 2012. The value of this resource is enhanced by the company s extensive mineral ownership of the Land Grant that provides royalty revenue on both operated and non-operated properties. Anadarko s strategic acquisitions of, and access to, midstream assets in the region that include operated infrastructure, takeaway capacity, natural gas liquids (NGL) processing and the White Cliffs Oil Pipeline, provide additional economic benefit. Anadarko expects the alignment of these assets, coupled with future investments in expansion opportunities, to continue to enhance field recoveries and provide access to premium markets and robust margins. 6

ROCKIES Wattenberg/Greater DJ and Powder River Basin continued: In the Greater DJ Basin outside the Wattenberg field, Anadarko holds an additional 550,000 net acres, where it is also exploring for liquids-rich opportunities. During the quarter, two horizontal wells were drilled in this area and were recently turned on to sales. In the Powder River Basin, the company had two operated rigs active during the quarter testing multiple horizontal liquidsfocused objectives over the company s 350,000 net-acre position. Anadarko spud four operated exploration wells during the quarter, two of which were being completed and two were still drilling at quarter end. In addition, the company participated in three non-operated exploration wells. Initial completions are anticipated during the 1 st quarter of 2012. Greater Natural Buttes: Quarterly sales volumes averaged 467 million cubic feet equivalent per day (MMcfe/d) which is a 26% increase over the 4 th quarter of 2010. Anadarko drilled 84 wells during the quarter running eight operated rigs. A new drilling cycle-time record of 3.5 days from spud to rig release was set during the quarter, a full-day improvement over the previous record. feet (Mcf), this program continues to be extremely capital efficient and a significant value enhancer. Expansion of the cryogenic facilities at the Chipeta plant remains on schedule to increase Anadarko s contracted cryogenic processing capacity to 500 MMcf/d by the 3 rd quarter of 2012. The expansion is expected to result in an incremental gross recovery of more than 15,000 barrels of NGLs per day. GREATER GREEN RIVER BASIN Wamsutter/Moxa: Anadarko drilled 13 operated wells with one rig and participated in five non-operated wells during the quarter in the Wamsutter field. The company drilled eight operated wells in the Moxa area during the quarter. Pinedale: The company participated in drilling 202 wells in the Pinedale field during 2011 and had eight non-operated rigs running at year end. Anadarko drilled and completed the lower Mesaverde Blackhawk interval in 11 new development wells during the quarter, bringing total Blackhawk completions to 56 during 2011. With estimated incremental development costs of $0.50 per thousand cubic 7

SOUTHERN & APPALACHIA Sales Volumes 4Q11 4Q11 4Q11 4Q10 4Q10 4Q10 Gas NGLs Oil Gas NGLs Oil MMcf/d MBbl/d MBbl/d MMcf/d MBbl/d MBbl/d Permian 48 1 6 60 1 3 Marcellus 193 0 0 54 0 0 East Texas/Haynesville 105 6 1 103 6 1 Eagleford 50 5 9 25 3 5 Bossier 95 0 0 107 0 0 Hugoton 44 2 0 49 2 0 Ozona 28 3 0 32 2 0 During the 4 th quarter, sales volumes in the Southern and Chalk 37 5 7 43 4 6 Appalachia region averaged 152,000 BOE/d, an increase of Other 24 1 2 24 0 2 almost 30% over the 4 th quarter of 2010. This increase was Total 624 23 25 497 18 17 driven by a 260% increase in Marcellus Shale production and a 46% increase in oil sales volumes, primarily due to growth in the Eagleford Shale and Permian areas. The 2011 production exit rate for the shale plays was 125% higher than the 2010 exit rate.spending Capital Average Rig Activity* 150 120 90 60 30 0 Southern & Appalachia Sales Volumes 118 116 Thousands of BOE/d 125 146 2008 2009 2010 2011 Gas Liquids Permian Marcellus East Texas/Haynesville Eagleford Bossier Hugoton Ozona Chalk Other Total *Data may not add to totals due to rounding. 4Q11 4Q11 3Q11 $ MM Oper Oper 73 5 5 33 7 7 78 6 3 76 10 10 7 0 0 1 0 0 1 0 0 27 3 4 217 1 0 513 32 30 8

SOUTHERN & APPALACHIA During the quarter, a new oil export line connecting to Corpus Christi was commissioned that increased realized prices and reduced truck traffic. Currently, 50% of Anadarko s Eagleford oil production is transported by pipeline, which is expected to grow to 75% by the end of 2012. Marcellus: The Marcellus set a weekly production record during December of 850 MMcf/d (230 MMcf/d net) from 210 producing wells. Anadarko achieved an operated production record of 313 MMcf/d. Net sales volumes for the quarter increased more than 260% from the same period in 2010 and increased by almost 40% from the 3 rd quarter of 2011. The 2011 gross exit rate of approximately 860 MMcf/d was 160% above the 2010 gross exit rate of 330 MMcf/d. During the 4 th quarter, the company spud 32 operated wells with seven rigs and spud 30 non-operated wells with 11 rigs. SHALE DEVELOPMENT Eagleford: Anadarko exited the quarter with gross production of 77,000 BOE/d, representing an increase of 50,000 BOE/d, almost 200% growth over the exit rate at the end of 2010. This total also represented an increase of 17% over the exit rate at the end of the third quarter of 2011. During the 4 th quarter, liquids sales volumes increased by 33% over the 3 rd quarter of 2011. The company spud 69 wells during the quarter using 10 conventional rigs and one spudder rig, and achieved first production from 55 wells. The company s water conservation efforts have resulted in a 25% reduction in water costs relative to 2010 and 14% relative to the 1 st half of 2011. Additional cost benefits and reduced trucking activity are expected as new water pumping stations are activated during 2012. East Texas/Haynesville: In the 4 th quarter, Anadarko had six rigs drilling liquidsfocused horizontal wells. Utica: The company drilled two exploration wells during the quarter in the liquids-rich Ohio Utica Shale play, where the company holds approximately 370,000 gross acres. Both wells will be completed in the 1 st quarter of 2012. 9

SOUTHERN & APPALACHIA UNCONVENTIONAL PLAYS Permian: Average sales volumes of liquids during the quarter were about 130% higher than the same period of 2010, primarily due to strong results in the Bone Spring play. Notable new Bone Spring wells have achieved initial production rates ranging from 1,600 BOE/d to 2,000 BOE/d. Anadarko exited the quarter with four operated rigs and five non-operated rigs drilling in the Bone Spring horizontal play and one operated rig drilling in the Avalon Shale. A total of 20 wells were spud during the quarter, and 18 wells were completed. At the end of the quarter, there were 11 producing Avalon Shale wells. Anadarko recently signed a joint-venture agreement for construction of a 100 MMcf/d cryogenic gas processing plant in the Bone Spring area with startup planned for early 2013. Chalk: During the quarter, Anadarko had two operated rigs drilling development wells, and drilled and completed one exploration well in the Louisiana Chalk. 10

GULF OF MEXICO Sales Volumes 4Q11 4Q11 4Q11 4Q10 4Q10 4Q10 Gas NGLs Oil Gas NGLs Oil MMcf/d MBbl/d MBbl/d MMcf/d MBbl/d MBbl/d Total 328 7 48 408 7 52 During the 4 th quarter, the Gulf of Mexico region reported sales volumes of approximately 110,000 BOE/d, which included scheduled downtime for maintenance and well testing across all facilities. More than 50% of the sales volumes during the fourth quarter were liquids. BLIND FAITH NEPTUNE POMPANO CALLISTO The company made its first post-moratorium deepwater discovery at the Cheyenne East prospect during the quarter. In addition, Anadarko continued to make significant progress on the Caesar-Tonga development and sanctioned the development of the Lucius project. Subsequent to quarter end, the company received a drilling permit for the Spartacus exploration well, which is expected to be spud during the 1 st quarter of 2012. NANSEN BOOMVANG GUNNISON POWER PLAY CONGER RED HAWK LUCIUS DEVELOPMENT BALDPATE CONSTITUTION SHENANDOAH TAHITI SAMURAI HEIDELBERG CAESAR / TONGA DEVELOPMENT VITO K2 COMPLEX INDEPENDENCE HUB APC INTEREST DISCOVERIES CHEYENNE EAST 11

GULF OF MEXICO PRODUCING PROPERTIES Independence Hub: Independence Hub averaged 426 MMcfe/d of gross production (284 MMcfe/d net) during the 4 th quarter. In early 2012, Independence Hub reached the cumulative production milestone of one Tcf. Nansen: East Breaks 602/646 (APC WI 50%) During the quarter, a well was recompleted and is currently producing approximately 2,400 BOPD and 19 MMcf/d of natural gas. Late in the 4 th quarter, the company spud the EB 602-14 development well. The well recently reached total depth and encountered 170 net feet of natural gas pay. Currently, the well is being completed and first production is expected in March 2012. Upon completion, the rig will be moved to drill the Spartacus exploration well. DEVELOPMENT Caesar/Tonga: Green Canyon 683/726/727/770 (APC WI 33.75%) Construction of the Steel Lazy Wave Riser was completed and is currently being installed. The topside facilities at the Constitution spar are being commissioned to accommodate Caesar-Tonga production. The company expects first oil sales by mid-year 2012. 12

GULF OF MEXICO LUCIUS UNIT (APC WI 35%) 874 875 876 877 918 919 39 920 Hadrian South 82 83 84 KEATHLEY CANYON Future Facility 40 41 SIGSBEE ESCARPMENT ANADARKO ACREAGE DISCOVERY OIL FIELD DISCOVERY GAS FIELD 793 794 MARCUS Prospect (APC WI 50%) WALKER RIDGE PHOBOS Prospect (APC WI 50%) SPARTACUS Prospect (APC WI 83.3%) AMERY TERRACE PROSPECT FUTURE TIEBACK Lucius: Keathley Canyon 874/875/918/919 (APC WI 35%) During the quarter, Anadarko along with its co-venturers sanctioned development of the Lucius project, which is expected to be one of the most economic projects in the company s portfolio. The company estimates that the Lucius unit holds more than 300 million BOE with relatively shallow and highly-productive reservoirs that can be developed in a capital-efficient manner. First production is expected in 2014. Lucius will be developed with a truss spar floating production facility with the expected capacity to produce in excess of 80,000 BOPD and 450 MMcf/d of natural gas. The spar, which will be the largest of Anadarko s operated spars, is currently under construction. In January 2012, the company entered into a crude oil transportation agreement that provides for construction of a new crude oil gathering pipeline serving the Lucius development area. The new pipeline will connect the Lucius spar to an existing junction platform that is part of the Poseidon pipeline system. APPRAISAL Heidelberg: Green Canyon 903 (APC WI 44.25%) Anadarko is currently drilling the first appraisal well 7,500 feet south of the initial Heidelberg subsalt Miocene discovery. The planned total depth is 32,500 feet, which should be reached during the 1 st quarter of 2012. 13

GULF OF MEXICO Vito: Mississippi Canyon 984 / 940 (APC WI 20%) The operator recently spud an appraisal well and results are expected in the 2 nd quarter of 2012. The well is targeting Mioceneage reservoirs approximately 1.5 miles north and east of the discovery well and is being drilled in 4,000 feet of water with a planned total depth of 32,000 feet. EXPLORATION Cheyenne East: Lloyd Ridge 400 (APC WI 100%) During the quarter, Anadarko recorded its first successful post-moratorium exploration well in the Gulf of Mexico with the Cheyenne East well, that was drilled to 17,715 feet and encountered 56 net feet of natural gas pay in Upper Miocene reservoirs. The well was completed and will be brought on line into the Independence Hub facility during the 1 st quarter of 2012. Coronado: Walker Ridge 143 (APC WI 15%) The Coronado well was spud early in the 4 th quarter in approximately 5,500 feet of water targeting Lower Tertiary-age sandstone reservoirs near Anadarko s Shenandoah discovery with planned total depth of approximately 32,000 feet. The operator abandoned the well due to geo-mechanical limitations in the shallow section. Drilling is expected to resume in 2012. 14

INTERNATIONAL / FRONTIER Sales Volumes Capital Spending 4Q11 4Q10 4Q11 Oil Oil MBbl/d MBbl/d $ MM Alaska 15 16 13 Algeria* 60 51 59 Brazil 0 0 43 China* 12 21 14 Ghana/W. Africa* 19 0 115 Other 0 0 82 Total 106 88 326 * Quarterly sales volumes are influenced by the size, timing and scheduling of tankers. Sales volumes of 106,000 BOPD for the 4 th quarter increased 20% over the same period of 2010 and represented 48% of Anadarko s total oil sales volumes. The company achieved an 80% success rate for its international deepwater exploration and appraisal programs during the 4 th quarter. As a result of continued drilling success in Mozambique, the company significantly expanded the estimated recoverable resource range to 15 to 30+ Tcf of natural gas. The partnership is advancing plans for a large-scale onshore LNG development that is being designed to consist of two initial trains. 15

INTERNATIONAL / FRONTIER DEVELOPMENT Alaska: Gross production from the Colville River Unit increased slightly compared to the 3 rd quarter, averaging 80,500 BOPD during the 4 th quarter. The Colville River Unit partnership was granted a permit to begin development activities at the Alpine West discovery in NPRA. Project sanction is expected in late 2012. Algeria: Gross production of approximately 345,000 BOPD was slightly lower than the previous quarter due to planned maintenance. Construction at the El Merk central processing facilities and associated infrastructure in Block 208 is progressing with the overall project reaching 88% completion at the end of 2011. The project remains on target for first production during 2012 with significant oil volumes expected by the end of 2012. China: Following the completion of a maintenance shutdown in early November, gross production returned to more than 50,000 BOPD. Five new wells were placed on line during the 4 th quarter. Expansion of a major production platform was completed with installation of topsides and new process equipment designed to extend production plateau. 16

INTERNATIONAL / FRONTIER Ghana: In the Jubilee field, all 17 wells in Phase 1 have been completed and production from eight of the nine production wells was approximately 70,000 BOPD at the end of the 4 th quarter. One of the original nine Phase 1 production wells was side-tracked during the quarter with a new completion design to address issues with the original completion design and is being ramped up gradually with the current rate at approximately 7,000 BOPD. Two to three additional producing wells have been identified as candidates for sidetrack operations, which would be completed by the end of 2012 as production ramps toward facility capacity. Phase 1A drilling, which includes eight new wells (five production wells and three injection wells), is expected to begin during the 2 nd quarter of 2012 with two producer-injector pairs expected to be completed by the end of 2012. Re-determination of interests in the Jubilee field was completed during the quarter and resulted in Anadarko s production interest increasing from 23.5% to 24.1%. EXPLORATION Mozambique: During the quarter, Anadarko announced the results of the Camarão well in Offshore Area 1 (APC WI 36.5%) of the Rovuma Basin. The appraisal section of the well encountered approximately 240 net feet of natural gas pay in an excellent-quality reservoir and confirmed static pressure connectivity with previously announced discoveries at Windjammer and Lagosta. The well also discovered approximately 140 net feet of natural gas pay in shallower Miocene and Oligocene sand packages. The Camarão well was drilled to a total depth of 12,630 feet in water depths of approximately 4,730 feet. The well has been saved and will be used in the upcoming drillstem testing (DST) program. Also during the quarter, in Offshore Area 1, Anadarko announced the successful Barquentine-3 well encountered more than 662 net feet of natural gas pay in two high-quality Oligocene-aged systems. The well was drilled to a total depth of approximately 13,400 feet in a water depth of approximately 5,170 feet and has been preserved for use as a monitor well during its upcoming testing program. This well was the sixth successful penetration in the complex that includes the Windjammer, Lagosta, Barquentine and Camarão discoveries. With high-quality recoverable resources in the range of 15 to 30 Tcf, the company is advancing plans for a 17

INTERNATIONAL / FRONTIER Mozambique continued: large-scale LNG development, initially being designed to consist of two, 5-million-tonne-per-annum trains. Pre-FEED (front-end engineering and design) activity has been completed and the company expects to begin FEED work around the middle of 2012. Subsequent to year end, the company announced the seventh successful well in the discovery area offshore Mozambique with the Lagosta-2 well. The well, which was appraising previous discoveries at Lagosta (about 4.4 miles to the north) and Camarão (about 5.3 miles to the south), encountered 777 total net feet of natural gas pay in multiple zones. The well was drilled to a total depth of approximately 14,223 feet in water depths of approximately 4,813 feet and has been preserved for future utilization during its planned DST program in the Windjammer, Barquentine and Lagosta complex. In January 2012, a second deepwater drillship was mobilized to Mozambique to conduct a multi-well extended testing program. At the same time, the company s other rig will continue appraisal and exploration drilling on a growing number of identified high-potential prospects in the Offshore Area 1 block. The appraisal drilling and testing program are designed to provide data that will be incorporated in the reserves certification process, which is now under way. The partnership remains on track to reach final investment decision for this project in late 2013. Ghana: In the West Cape Three Points Block (WCTP) (APC 31%), the Teak-3 well, located approximately 2.5 miles north of the Teak discovery well, encountered approximately 108 net feet of hydrocarbon pay in highquality sands. The pay included 36 net feet of oil pay with 36- to 39-degree API gravity and 72 net feet of gas-condensate pay. The well extended the field to the north and confirmed both the structural and stratigraphic components of the accumulation. During 2012, the company plans to conduct additional appraisal drilling and perform DSTs. In the Deepwater Tano Block (APC WI 18%), appraisal work on the Tweneboa/Enyenra discoveries continues with drilling and coring operations currently under way on the redrill of the Owo-1 discovery well. The Owo-1RA is designed to obtain whole core and flow data through a planned multi-zone DST with both the Enyenra-2A (located approximately 4.5 miles to the south) and Enyenra-3A (located approximately 4 miles to the north) used as pressure-monitoring wells. This operation is being conducted to assist in determining the level of reservoir connectivity and the appropriate development design. Following completion of the Owo-1RA DST operations, the partnership plans to drill the Enyenra-4A appraisal well to test the southern limit of the Enyenra light oil field. The Enyenra-4A is located more than 4 miles south of the Enyenra-2A well. Subsequent to year end, the company announced the successful Ntomme- 2A appraisal well, which encountered approximately 128 net feet of light oil pay in excellent-quality sandstone reservoirs. Fluid samples indicate oil of approximately 35 degree API gravity. Anadarko s 3D seismic modeling, along with the pressure data collected from the Ntomme- 2A and Tweneboa-3 sidetrack wells, indicates the potential for an oil column of more than 400 feet below the gas-condensate accumulation encountered in the Tweneboa-3 sidetrack well. This significant light oil accumulation enhances the value of the Greater Tweneboa, Enyenra and Ntomme (TEN) complex as it is now estimated that oil makes 18

INTERNATIONAL / FRONTIER Ghana continued: up the majority of the resource in place. The well was drilled approximately 2.8 miles south of the Tweneboa-3A sidetrack to a depth of approximately 12,810 feet. The partnership plans to install gauges in the Tweneboa-3 sidetrack prior to conducting a DST at the Ntomme-2A. Brazil: During the quarter, the successful Itaipu-2 pre-salt appraisal well in BM-C-32 (APC WI 33%) was drilled to a total depth of approximately 16,000 feet and encountered a gross petroleum column of approximately 58 net feet in a pre-salt carbonate reservoir. The well, which was drilled 4.3 miles east of the discovery well, established a fluid contact and appears to have successfully extended the accumulation 120 meters downdip from the discovery, extending the areal extent of the Itaipu field. An additional appraisal well and possible DST is being planned for 2012 to better define the field potential. The well was plugged and abandoned. The data from the well is being incorporated into the geologic model to evaluate the future potential of the area. Sierra Leone: The Jupiter prospect in the SL-07B-11 block (APC WI 55%) is currently being drilled to test an Enyenra-type Cretaceous channel system located 16 miles to the west of Anadarkoʼs Mercury discovery. The well is anticipated to reach total depth during the 1 st quarter. Upon completion of drilling operations at the Jupiter well, the company plans to drill an appraisal well to the Mercury discovery, which will be located approximately eight miles to the northwest of the Mercury discovery well. A core and potential DST is also planned as part of the program. Subsequent to year end, the company completed drilling operations at the Itauna appraisal well in Block BM-C-29 (APC WI 50%) and filed a hydrocarbon show report with the government regulatory agency in Brazil. The company is currently evaluating the results of the well, which was plugged and abandoned, to determine the next steps in the evaluation of the Itauna post-salt discovery. Liberia: Offshore Liberia in block LB-15 (APC WI 47.5%), the Montserrado exploration well was drilled to a total depth of approximately 17,720 feet and encountered good-quality, water-bearing sands in the primary objective and 27 net feet of pay in a secondary objective. 19