TODAYS DISCUSSION Apache Corporate Update Permian Region Overview Managing an Efficient Ramp Down Positioning for Success 2
KEY TAKEAWAYS Apache reacted quickly and decisively to oil price downturn Strengthened balance sheet with 5 billion strategic exit from LNG and upstream Australia Focusing on valuecreating initiatives Large and diverse position…
APACHE RELOADED AND DELIVERING IN 2015 Delivered on 2014 operational plan and guidance Reacted quickly to falling oil price environment Reduced 2015 capital budget year over year by 60% Reduced North American rig count from 90 in 3Q…
POSITIONING FOR SUCCESS IN A VOLATILE PRICE ENVIRONMENT Establishing medium and long-term field development plans under three price scenarios Continuing to attack the cost structure G&A, LOE and Capex Consolidating and high-grading…
PORTFOLIO TRANSFORMATION: PRODUCTION 2009 Production(1) Pro Forma 1Q 2015 Production(2) International & GOM International & GOM 34% N.A. Onshore 64% N.A. Onshore 537 MBOE/D 478 MBOE/D 50% Liquids 65% Liquids N.A. Onshore…
NORTH AMERICAN ONSHORE POSITION Extensive inventory in four liquids-rich basins TOTAL NORTH AMERICAN ONSHORE Acreage: 9.8 MM Gross / 4.9 MM Net Proved Reserves: 1.6 BBOE Undeveloped Resource: 13.1 BBOE CANADA CENTRAL PERMIAN…
2015 NORTH AMERICAN CAPITAL PLAN Permian Focus Capex(1): 2.1 2.3 Bn 9 Primary Plays 9 Primary Plays 2015 AVG RIGS (2) Delaware Basin Horizontals 4-5 Canada 9% Southern Midland Basin 2-4 Eagle CBP/NW Shelf Horizontals 2-3 Ford Eagle…
PERMIAN REGION OVERVIEW 9
PERMIAN REGION OVERVIEW Central Basin Platform / NW Shelf Industrys 3rd largest acreage Midland Basin position (3.2 MM gross) Achieved record production of 169 MBOE/D in 4Q 14 25% YoY production growthDelaware Basin Hz Averaged…
SOUTHERN MIDLAND BASIN WOLFCAMP Acres 200,000 net Azalea Planned 2015 Rigs 2-4 rigs Glasscock Wildfire Inventory 2,900 locations Midland Powell- Drilling first horizontal pad in Miller Midland County Upton Reagan Multiple…
CENTRAL BASIN PLATFORM / NORTHWEST SHELF Cedar Lake Acres 865,000 net Planned 2015 Rigs 2-3 rigs Inventory 1,000 Hz locations 4,500 Vt locations 100,000 Boe/d of gross production Seth Campbell Low base decline rate (10%) Running…
CEDAR LAKE 2014-2015 PRODUCTION Record rate 10,013 BOPD 14 14
DELAWARE BASIN Acres 230,000 net Lea Planned 2015 Rigs 4-5 rigs Pecos Bend Eddy Inventory 1,400 Hz locations Loving Winkler WAHA Focusing primarily on Bone Springs Ward Reeves Testing additional targets and well designs…
PERMIAN: COMPLETION COSTS REDUCTIONS Completion Costs Trend Barnhart Example Significant Cost Reductions -33% Decrease from Q4 Averages Hydraulic Horsepower Proppant Wireline Water Transfer Completion Costs per Well…
PERMIAN: ENHANCING OUR SEISMIC COVERAGE Permian region has access to over 12,500 sq. miles of 3D 2015 Seismic Program by Basin (3D) seismic data NW Shelf 300 Sq. Miles Central Basin Platform 1,300 Sq. Miles Extensive acquisition…
PERMIAN: PROTECTING THE BASE WITH TERTIARY RECOVERY Houston IR: Roberts Unit Slaughter CO2 Extensive CO2 and CO2 Adair CO2 water flood Roberts Unit GMK WBDU, opportunities EBDU, McKee CO2 Adair CO2 Assessing and…
MANAGING AN EFFICIENT RAMP DOWN GOING FROM 90 TO 12 IN 10,500,000 SECONDS 19
MANAGING AN EFFICIENT RAMP DOWN Managing our cash flow Slowed down spending by: Reduced rig count through contract payouts & not extending contracts Worked with our service providers to lower service costs across the board…
NORTH AMERICAN RIG COUNT 2015 Planned Ramp Down 100 Canada Gulf Coast Central Permian 90 80 70 60 of Rigs 2015 PLAN RIG COUNT 50 40 30 HISTORICAL RIG COUNT 20 10 0 Jan-14 Feb-14 Mar-14 Apr-14 May-14…
MANAGING AN EFFICIENT RAMP DOWN Commitments and Contracts Services Drilling Rigs Payout and renegotiate Pumping Services Apache seen as a preferred operator due to size; received favorable pricing Proppant No contractual…
MANAGING AN EFFICIENT RAMP UP Ramping back up People Right People on the right jobs Drilling Rigs High-grading rigs and crews to provide lower drilling costs Pumping Services High-grading crews and technology will deliver lower…
POSITIONED FOR SUCCESS 24
APACHE IS NOT STANDING STILL Focusing on value-adding initiatives during downturn Realigning incentive program to reward continuous improvement and cost discipline Developing detailed medium and longer-term field development plans…
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