2018 Guide to Effective Proxies

2.17.3 Business strategy | 281 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES Proxy Summary Our Mission and Strategy Our objective is to deliver competitive returns on, and of, capital to stakeholders by exploring for and commercially developing oil and natural gas resources vital to the world’s health and welfare by: • exploring for and commercially developing resources globally; • ensuring health, safety, and commercial excellence ; and • focusing on financial discipline, flexibility, and value creation ; while demonstrating the Company’s core values of integrity and trust, servant leadership, people and passion, commercial focus, and open communication in all that we do. Executing on Our Strategy Using capital efficiency as a foundational principle to deliver on our strategy, capital will be allocated at the asset level based on expected return, and measured on a per debt- adjusted share (DAS) basis for Company performance. We plan to create attractive returns on, and of, capital in 2018 by: • investing within cash flow, which has been a foundational principle for over a decade, based on an expected $50 oil and $3 natural gas environment, and if realized prices are higher than expected, returning capital to stakeholders versus materially increasing our investment plans; • producing value and growth from investments that generate peer-leading per DAS corporate performance; • continuing to repurchase stock under our $3 billion share repurchase program , with an expected mid-year 2018 completion; • raising our dividend to a competitive yield; and • retiring debt at par for over $1 billion of fixed income securities over the balance of 2018 and 2019. Operational and Financial Results Active portfolio management and delivering capital-efficient growth were central to our efforts in 2017: • Continued to High-Grade the Portfolio — We closed more than $4 billion of asset sales in 2017, and have completed over $8 billion since 2015, while refocusing the portfolio on higher-margin liquid assets. • Delivered Sales Volume Growth — Our full-year sales volumes for 2017 increased 14% on a divestiture- adjusted basis as compared to the prior year. • Progressed Mozambique LNG Project — In addition to many foundational developments in 2017, since year end we received approval from the Government of Mozambique for the plan of development for the Golfino/ Atum field, and now have agreements to key terms for more than 5 million tonnes per annum of LNG sales to long-term, high-quality buyers. • Announced Share Repurchase Program — We announced a $2.5 billion share repurchase program in September 2017, completing the repurchase of approximately $1.6 billion of shares by early 2018, while increasing the share repurchase program to $3 billion during 2018. • Increased Dividend 400% — Subsequent to year end, the Board increased the quarterly dividend paid to our common stockholders from 5 cents per share to 25 cents per share. Pay for Performance Philosophy Our compensation programs are designed to be aligned with total stockholder return (TSR) and the capital efficiency objectives of our stockholders. As the following pages demonstrate , realized pay for Anadarko’s CEO was approximately one-half of the grant value over the last three years due to the underperformance of our stock, demonstrating the efficacy of our plan’s pay for performance construction. See pages 32-52 for more details. ANADARKOPETROLEUMCORPORATION 2018PROXYSTATEMENT 3 Total of 02 pages in section ANADARKO PETROLEUM CORPORATION