Using the data you have been provided, value the acquisition of ANSWER THE FOLLOWING QUESTIONS PART A Why is Occidental Petroleum and Chevron interested in purchasing Anadarko In other words, what are the specific Part B WHAT IS THE EQUITY VALUE OF ANADARKO USING THE EBITDA MULTIPLE METHOD OF VALUATION SHOW SOME OF YOUR WORK TO RECEIVE CREDIT (8 points) PART C WHAT IS THE EQUITY VALUE OF ANADARKO USING THE P E MULTIPLE METHOD SHOW SOME OF YOUR WORK TO RECEIVE CREDIT (6 POINTS) PART D OCCIDENTAL RECENTLY ANNOUNCED THEY ARE OFFERING $76 00 PER SHARE FOR ANADARKO BASED ON YOUR CALCULATIONS, IS THIS A GOOD DEAL FOR THE SHAREHOLDERS OF ANADARKO (2 POINTS) Anadarko Petroleum 31 Dec 18 12,906 3,740 9,166 Exhibit Income Statement and Balance Sheet values are in MILLIONS EOG A pache Concho Pioneer Resources Corporation Resources Nat Res PERIOD ENDING 31 Dec 18 31 Dec 18 31 Dec 18 31 Dec 18 Income Statement ($MILLIONS) Total Revenue 17,267 7,216 3,879 9,092 Cost of revenue 1,588 645 5,069 Gross Profit 5,628 3,234 4,023 Operating Expenses Selling, general, and administrative 427 431 311 381 Depreciation, depleletion, and amortization 3 435 2 405 1,478 1,534 Others 1,387 1,181 (724) 356 Operating income or loss 4,344 1,611 2,169 1,752 Income from Continuing Operations Total other income expenses (net) Earnings before interest and taxes 4,344 1 611 2,169 1,752 Interest expense 234 384 46 Income tax expense 822 672 603 276 Net income from continuing operations 3 288 1,520 1,379 Net income Total 3,419 2,286 975 1093 4254 1,569 2,250 97 2,250 864 733 653 615 555 831 235 217 3,795 801 Exhibit Income Statement and Balance Sheet values are in MILLIONS EOG Apache Concho Pioneer Anadarko Resources Corporation Resources Nat Res Petroleum PERIOD ENDING 31 Dec 18 31 Dec 18 31 Dec 18 31 Dec 18 31 Dec 18 Balance Sheet (SMILLIONS) Assets Current Assets Cash and cash equivalents 1,556 714 825 1 295 Short term investments 615 Net receivables 2,343 1,194 821 2,026 Inventory 859 401 242 Other current assets 299 378 543 77 Total current assets 5,057 2,687 1,409 2,580 Long term investments 49 38 Property, plant, and equipment 28,076 18,421 22,313 14 839 28,6151 Goodwill 2 224 264 4 789 Other assets 299 220 3 105 Total assets 33,934 21,582 26,294 17,903 40,376 Liabilities Current Liabilities Accounts payable 2 240 709 50 1,610 2 164 Short Current long term debt 913 150 159 947 Other current liabilities 575 1 342 1 147 208 1 547 Total current liabilities 3,728 2,201 1,356 1,818 4,658 Long term debt 5,170 8,054 4,194 2,284 16,626 Other liabilities 1258 2 124 5,712 Deferred long term liability charges 4 413 391 1 808 1 152 2 437 Total Liabilities 14,570 12 770 7,526 5,792 29,433 Stockholders' Equity Common stock 206 260 57 Retained earnings 13,543 (2048) 4,126 3 470 1 245 Treasury stock (42) (3 192) (131) (423) (4 864) Capital surplus 5,659 12 106 14 773 9,062 12 3931 Total stockholders' equity 19,364 8,812 18,768 12,111 10,943 Total liabilities and stockholders' equity 33,934 21,582 26 294 17,903 40,376 Other Financial Data Exploration expenses (millions) 154 289 106 280 Exploration expenses (millions) 124 152 Shares Outstanding (millions) 580 0 374 7 1989 169 5 489 4 Year end 2018 Closing Price 87 21 S 26 25 $ 102 79 S 131 52 $ 43 84 Market Capitalization (millions) $ 50 581 80 $ 9 835 88 $ 20,444 93 $ 22 292 64 $ 21,455 30 168 538 193 Using the data you have been provided, value the acquisition of ANSWER THE FOLLOWING QUESTIONS PART A Why is Occidental Petroleum and Chevron interested in purchasing Anadarko In other words, what are the specific Part B WHAT IS THE EQUITY VALUE OF ANADARKO USING THE EBITDA MULTIPLE METHOD OF VALUATION SHOW SOME OF YOUR WORK TO RECEIVE CREDIT (8 points) PART C WHAT IS THE EQUITY VALUE OF ANADARKO USING THE P E MULTIPLE METHOD SHOW SOME OF YOUR WORK TO RECEIVE CREDIT (6 POINTS) PART D OCCIDENTAL RECENTLY ANNOUNCED THEY ARE OFFERING $76 00 PER SHARE FOR ANADARKO BASED ON YOUR CALCULATIONS, IS THIS A GOOD DEAL FOR THE SHAREHOLDERS OF ANADARKO (2 POINTS) Anadarko Petroleum 31 Dec 18 12,906 3,740 9,166 Exhibit Income Statement and Balance Sheet values are in MILLIONS EOG A pache Concho Pioneer Resources Corporation Resources Nat Res PERIOD ENDING 31 Dec 18 31 Dec 18 31 Dec 18 31 Dec 18 Income Statement ($MILLIONS) Total Revenue 17,267 7,216 3,879 9,092 Cost of revenue 1,588 645 5,069 Gross Profit 5,628 3,234 4,023 Operating Expenses Selling, general, and administrative 427 431 311 381 Depreciation, depleletion, and amortization 3 435 2 405 1,478 1,534 Others 1,387 1,181 (724) 356 Operating income or loss 4,344 1,611 2,169 1,752 Income from Continuing Operations Total other income expenses (net) Earnings before interest and taxes 4,344 1 611 2,169 1,752 Interest expense 234 384 46 Income tax expense 822 672 603 276 Net income from continuing operations 3 288 1,520 1,379 Net income Total 3,419 2,286 975 1093 4254 1,569 2,250 97 2,250 864 733 653 615 555 831 235 217 3,795 801 Exhibit Income Statement and Balance Sheet values are in MILLIONS EOG Apache Concho Pioneer Anadarko Resources Corporation Resources Nat Res Petroleum PERIOD ENDING 31 Dec 18 31 Dec 18 31 Dec 18 31 Dec 18 31 Dec 18 Balance Sheet (SMILLIONS) Assets Current Assets Cash and cash equivalents 1,556 714 825 1 295 Short term investments 615 Net receivables 2,343 1,194 821 2,026 Inventory 859 401 242 Other current assets 299 378 543 77 Total current assets 5,057 2,687 1,409 2,580 Long term investments 49 38 Property, plant, and equipment 28,076 18,421 22,313 14 839 28,6151 Goodwill 2 224 264 4 789 Other assets 299 220 3 105 Total assets 33,934 21,582 26,294 17,903 40,376 Liabilities Current Liabilities Accounts payable 2 240 709 50 1,610 2 164 Short Current long term debt 913 150 159 947 Other current liabilities 575 1 342 1 147 208 1 547 Total current liabilities 3,728 2,201 1,356 1,818 4,658 Long term debt 5,170 8,054 4,194 2,284 16,626 Other liabilities 1258 2 124 5,712 Deferred long term liability charges 4 413 391 1 808 1 152 2 437 Total Liabilities 14,570 12 770 7,526 5,792 29,433 Stockholders' Equity Common stock 206 260 57 Retained earnings 13,543 (2048) 4,126 3 470 1 245 Treasury stock (42) (3 192) (131) (423) (4 864) Capital surplus 5,659 12 106 14 773 9,062 12 3931 Total stockholders' equity 19,364 8,812 18,768 12,111 10,943 Total liabilities and stockholders' equity 33,934 21,582 26 294 17,903 40,376 Other Financial Data Exploration expenses (millions) 154 289 106 280 Exploration expenses (millions) 124 152 Shares Outstanding (millions) 580 0 374 7 1989 169 5 489 4 Year end 2018 Closing Price 87 21 S 26 25 $ 102 79 S 131 52 $ 43 84 Market Capitalization (millions) $ 50 581 80 $ 9 835 88 $ 20,444 93 $ 22 292 64 $ 21,455 30 168 538 193

Question

Using the data you have been provided, value the acquisition of ANSWER THE FOLLOWING QUESTIONS  PART A  Why is Occidental Petroleum and Chevron interested in purchasing Anadarko  In other words, what are the specific Part B  WHAT IS THE EQUITY VALUE OF ANADARKO USING THE EBITDA MULTIPLE METHOD OF VALUATION  SHOW SOME OF YOUR WORK TO RECEIVE CREDIT  (8 points) PART C  WHAT IS THE EQUITY VALUE OF ANADARKO USING THE P E MULTIPLE METHOD  SHOW SOME OF YOUR WORK TO RECEIVE CREDIT  (6 POINTS) PART D  OCCIDENTAL RECENTLY ANNOUNCED THEY ARE OFFERING $76 00 PER SHARE FOR ANADARKO  BASED ON YOUR CALCULATIONS, IS THIS A GOOD DEAL FOR THE SHAREHOLDERS OF ANADARKO  (2 POINTS) Anadarko Petroleum 31 Dec 18 12,906 3,740 9,166 Exhibit  Income Statement and Balance Sheet values are in MILLIONS EOG A pache Concho Pioneer Resources Corporation Resources Nat  Res  PERIOD ENDING 31 Dec 18 31 Dec 18 31 Dec 18 31 Dec 18 Income Statement ($MILLIONS) Total Revenue 17,267 7,216 3,879 9,092 Cost of revenue 1,588 645 5,069 Gross Profit 5,628 3,234 4,023 Operating Expenses Selling, general, and administrative 427 431 311 381 Depreciation, depleletion, and amortization 3 435 2 405 1,478 1,534 Others 1,387 1,181 (724) 356 Operating income or loss 4,344 1,611 2,169 1,752 Income from Continuing Operations Total other income expenses (net) Earnings before interest and taxes 4,344 1 611 2,169 1,752 Interest expense 234 384 46 Income tax expense 822 672 603 276 Net income from continuing operations 3 288 1,520 1,379 Net income Total 3,419 2,286 975 1093 4254 1,569 2,250 97 2,250 864 733 653 615 555 831 235 217 3,795 801 Exhibit  Income Statement and Balance Sheet values are in MILLIONS EOG Apache Concho Pioneer Anadarko Resources Corporation Resources Nat  Res  Petroleum PERIOD ENDING 31 Dec 18 31 Dec 18 31 Dec 18 31 Dec 18 31 Dec 18 Balance Sheet (SMILLIONS) Assets Current Assets Cash and cash equivalents 1,556 714 825 1 295 Short term investments 615 Net receivables 2,343 1,194 821 2,026 Inventory 859 401 242 Other current assets 299 378 543 77 Total current assets 5,057 2,687 1,409 2,580 Long term investments 49 38 Property, plant, and equipment 28,076 18,421 22,313 14 839 28,6151 Goodwill 2 224 264 4 789 Other assets 299 220 3 105 Total assets 33,934 21,582 26,294 17,903 40,376 Liabilities Current Liabilities Accounts payable 2 240 709 50 1,610 2 164 Short Current long term debt 913 150 159 947 Other current liabilities 575 1 342 1 147 208 1 547 Total current liabilities 3,728 2,201 1,356 1,818 4,658 Long term debt 5,170 8,054 4,194 2,284 16,626 Other liabilities 1258 2  124 5,712 Deferred long term liability charges 4 413 391 1 808 1 152 2 437 Total Liabilities 14,570 12 770 7,526 5,792 29,433 Stockholders' Equity Common stock 206 260 57 Retained earnings 13,543 (2048) 4,126 3 470 1 245 Treasury stock (42) (3 192) (131) (423) (4 864) Capital surplus 5,659 12 106 14 773 9,062 12 3931 Total stockholders' equity 19,364 8,812 18,768 12,111 10,943 Total liabilities and stockholders' equity 33,934 21,582 26 294 17,903 40,376 Other Financial Data Exploration expenses (millions) 154 289 106 280 Exploration expenses (millions) 124 152 Shares Outstanding (millions) 580 0 374 7 1989 169 5 489 4 Year end 2018 Closing Price 87 21 S 26 25 $ 102 79 S 131 52 $ 43 84 Market Capitalization (millions) $ 50 581 80 $ 9 835 88 $ 20,444 93 $ 22 292 64 $ 21,455 30 168 538 193 Using the data you have been provided, value the acquisition of ANSWER THE FOLLOWING QUESTIONS  PART A  Why is Occidental Petroleum and Chevron interested in purchasing Anadarko  In other words, what are the specific Part B  WHAT IS THE EQUITY VALUE OF ANADARKO USING THE EBITDA MULTIPLE METHOD OF VALUATION  SHOW SOME OF YOUR WORK TO RECEIVE CREDIT  (8 points) PART C  WHAT IS THE EQUITY VALUE OF ANADARKO USING THE P E MULTIPLE METHOD  SHOW SOME OF YOUR WORK TO RECEIVE CREDIT  (6 POINTS) PART D  OCCIDENTAL RECENTLY ANNOUNCED THEY ARE OFFERING $76 00 PER SHARE FOR ANADARKO  BASED ON YOUR CALCULATIONS, IS THIS A GOOD DEAL FOR THE SHAREHOLDERS OF ANADARKO  (2 POINTS) Anadarko Petroleum 31 Dec 18 12,906 3,740 9,166 Exhibit  Income Statement and Balance Sheet values are in MILLIONS EOG A pache Concho Pioneer Resources Corporation Resources Nat  Res  PERIOD ENDING 31 Dec 18 31 Dec 18 31 Dec 18 31 Dec 18 Income Statement ($MILLIONS) Total Revenue 17,267 7,216 3,879 9,092 Cost of revenue 1,588 645 5,069 Gross Profit 5,628 3,234 4,023 Operating Expenses Selling, general, and administrative 427 431 311 381 Depreciation, depleletion, and amortization 3 435 2 405 1,478 1,534 Others 1,387 1,181 (724) 356 Operating income or loss 4,344 1,611 2,169 1,752 Income from Continuing Operations Total other income expenses (net) Earnings before interest and taxes 4,344 1 611 2,169 1,752 Interest expense 234 384 46 Income tax expense 822 672 603 276 Net income from continuing operations 3 288 1,520 1,379 Net income Total 3,419 2,286 975 1093 4254 1,569 2,250 97 2,250 864 733 653 615 555 831 235 217 3,795 801 Exhibit  Income Statement and Balance Sheet values are in MILLIONS EOG Apache Concho Pioneer Anadarko Resources Corporation Resources Nat  Res  Petroleum PERIOD ENDING 31 Dec 18 31 Dec 18 31 Dec 18 31 Dec 18 31 Dec 18 Balance Sheet (SMILLIONS) Assets Current Assets Cash and cash equivalents 1,556 714 825 1 295 Short term investments 615 Net receivables 2,343 1,194 821 2,026 Inventory 859 401 242 Other current assets 299 378 543 77 Total current assets 5,057 2,687 1,409 2,580 Long term investments 49 38 Property, plant, and equipment 28,076 18,421 22,313 14 839 28,6151 Goodwill 2 224 264 4 789 Other assets 299 220 3 105 Total assets 33,934 21,582 26,294 17,903 40,376 Liabilities Current Liabilities Accounts payable 2 240 709 50 1,610 2 164 Short Current long term debt 913 150 159 947 Other current liabilities 575 1 342 1 147 208 1 547 Total current liabilities 3,728 2,201 1,356 1,818 4,658 Long term debt 5,170 8,054 4,194 2,284 16,626 Other liabilities 1258 2  124 5,712 Deferred long term liability charges 4 413 391 1 808 1 152 2 437 Total Liabilities 14,570 12 770 7,526 5,792 29,433 Stockholders' Equity Common stock 206 260 57 Retained earnings 13,543 (2048) 4,126 3 470 1 245 Treasury stock (42) (3 192) (131) (423) (4 864) Capital surplus 5,659 12 106 14 773 9,062 12 3931 Total stockholders' equity 19,364 8,812 18,768 12,111 10,943 Total liabilities and stockholders' equity 33,934 21,582 26 294 17,903 40,376 Other Financial Data Exploration expenses (millions) 154 289 106 280 Exploration expenses (millions) 124 152 Shares Outstanding (millions) 580 0 374 7 1989 169 5 489 4 Year end 2018 Closing Price 87 21 S 26 25 $ 102 79 S 131 52 $ 43 84 Market Capitalization (millions) $ 50 581 80 $ 9 835 88 $ 20,444 93 $ 22 292 64 $ 21,455 30 168 538 193

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Using the data you have been provided, value the acquisition of ANSWER THE FOLLOWING QUESTIONS: PART A: Why is Occidental Petroleum and Chevron interested in

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