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UBS 2015 Global Oil & Gas Conference – Apache Corp

Apache Corp · May 19, 2015 · 34 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 1
    05.19.2015 RIGHT PEOPLE. RIGHT ACREAGE. RIGHT STRATEGY
  2. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 2
    APACHE RELOADED AND DELIVERING 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 2014 to…
  3. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 3
    1Q OPERATIONAL HIGHLIGHTS Exceeded first-quarter North American onshore production guidance Reduced drilling and completion costs 15% from 2014 in 1Q 2015 Egypt oil discoveries, Ptah and Berenice, ramped up to 20,000 BOE/D Grew North…
  4. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 4
    POSITIONING FOR SUCCESS IN VOLATILE PRICE ENVIRONMENT Establishing medium and long-term field development plans under three oil and gas price scenarios Continuing to attack the cost structure G&A, LOE and Capex Consolidating and…
  5. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 5
    STRATEGY Focused on Organization, Technology and Capital Allocation STRATEGY New integrated team approach with aligned Organization incentives Vertically-integrated supply chain Thorough understanding of entire hydrocarbon…
  6. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 6
    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…
  7. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 7
    PORTFOLIO TRANSFORMATION: RESERVES 2009 Proved Reserves 2014 Proved Reserves(1) International & GOM International & GOM 52% N.A. Onshore 78% N.A. Onshore 2.4 BBOE 2.0 BBOE 45% liquids 64% Liquids (1) Proved reserves as…
  8. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 8
    ACREAGE 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 Eagle Ford 8
  9. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 9
    2015 NORTH AMERICAN CAPITAL PLAN Capex(1): 2.1 2.3 Bn 9 Primary Plays 2015 AVG RIGS 9 Primary Plays Delaware Basin Horizontals 4-5 (2) Canada Southern Midland Basin 2-4 9% CBP/NW Shelf Horizontals 2-3 Eagle Eagle Ford (Area B) 1…
  10. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 10
    PERMIAN REGION Central Basin Platform / NW Shelf Industrys 3rd largest acreage positon (3.2 MM gross) Midland Basin Production of 159 MBOE/D in 1Q 15 60% oil Delaware Basin Hz 7% YoY oil production growth Averaged 15 rigs in…
  11. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 11
    DELAWARE BASIN Acres 230,000 net Lea Planned 2015 Rigs 4-5 rigs Eddy Inventory 1,400 Hz locations Loving Winkler WAHA Focusing primarily on Bone Springs Ward Reeves Pecos Bend Testing additional targets and well designs…
  12. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 12
    SOUTHERN MIDLAND BASIN WOLFCAMP Acres 200,000 net Azalea Planned 2015 Rigs 2-4 rigs Glasscock Wildfire Inventory 2,900 locations Midland Powell- Multiple landing zones Miller Realizing 20% well cost Upton Reagan reduction…
  13. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 13
    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…
  14. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 14
    EAGLE FORD Robertson Acres 288,000 net Brazos Planned 2015 Rigs 1 rig Inventory(1) 3,000 Hz locations Burleson Area B well costs reduced over 20% Grimes to 6.5 MM since 2014 Lee Targeting similar reductions in Area Washington…
  15. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 15
    CANYON LIME Acres 130,000 net Bivins East 99 1H Planned 2015 Rigs 1 rig Currently flowing back Inventory 800 Hz locations Bivins East 41H Pad 3 wells currently flowing back Continued step out testing in lower zone Planning upper…
  16. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 16
    2015 CAPITAL PLAN: INTERNATIONAL & GOM Reduced mid-point by 150 2015 Capex: 1.3 - 1.6 Bn million Reflects mid-year sale of Australian oil and gas assets Australia & GOM 21% Excludes 239 million of 1Q LNG capex reimbursed in…
  17. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 17
    EGYPT: LEADING ONSHORE DRILLER CURRENT LEASEHOLD: 6.7 MM gross acres Drilled 220 wells during 2014 Shushan-Khalda Matruh 24 Concessions Ridge Alamein 344 MBOE/D gross production In 1Q 2015 Gindi / Beni Suef Multiple-stacked…
  18. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 18
    EGYPT: WESTERN DESERT E&D PROGRAM 2014 Program (82% success rate) 2015 Exploration Program 28 wells Drilled 171 development and 49 Matruh Basin exploration wells 5 wells Added 61 MMBOE of net proved reserves at F&D cost of…
  19. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 19
    EGYPT: STRONG FREE CASH FLOW In Millions 3,000 2,500 2,000 1,500 1,000 500 0 2009 2010 2011 2012 2013 2014 CAPEX Cash Flow 7+ Billion Free Cash Flow in Last 6 Years Notes: Free cash flow equals cash flow from operations…
  20. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 20
    NORTH SEA: PREMIUM ASSETS Industry-leading production CURRENT LEASEHOLD: 1.0 MM gross acres efficiency greater than 90% 0.5 MM net acres Operating cost 50% lower than U.K. BERYL North sea average North Sea 1Q 2015 average…
  21. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 21
    NORTH SEA: EXCEPTIONAL FIELD REVIVAL AT FORTIES Apache acquires MBD Gross Forties from BP 1000 At Acquisition Current Forties Field - BP (2003) (2014 YE) Forties Field - Apache Satellite Fields Gross Production 41 50 (MBOE/D)…
  22. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 22
    NORTH SEA: BERYL AREA OPPORTUNITY Apache acquires Beryl from ExxonMobil Base Platform At Acquisition Current production (2012) (2014) Base Satellite production Gross Production 58 37 Added platform (MBOE/D) and satellite…
  23. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 23
    NORTH SEA: STRONG FREE CASH FLOW In Millions 1,600 1,400 1,200 1,000 800 600 400 200 0 2010 2011 2012 2013 2014 CAPEX Cash Flow 2 Billion Free Cash Flow in Last 5 Years Notes: Free cash flow equals cash flow from operations…
  24. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 24
    NORTH SEA: 2014 PRO FORMA CASH FLOW SENSITIVITY Brent Oil Price in Millions 38% oil price decrease = 120 1,500 17% AT cash flow decrease 96 / Bbl 100 1,200 1,250 80 1,100 / Bbl 1,000 80 1,000 60 / Bbl 60 750 40 500…
  25. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 25
    SUMMARY Streamlined portfolio 66% North America, 20% Egypt and 14% North Sea(1) Exceeded 1Q onshore North America production guidance, on track for 2015 outlook Free cash flow generative in 2Q 4Q 2015 at current strip prices…
  26. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 26
    KEY INVESTMENT ATTRIBUTES Attractive EBITDA multiple relative to peer group Pro forma 1Q net debt to 2015 EBITDA less than 2x More than half of oil production linked to Brent pricing Under-appreciated assets in Egypt and North Sea…
  27. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 27
    APPENDIX
  28. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 28
    2015 NORTH AMERICA ONSHORE GUIDANCE Production Region Guidance 40% Gulf Coast Oil 400 Permian 41% 358 56 43% Oil Oil 45% Central Oil Canada 302 Total NA Relatively Flat Onshore MBOE/D - 2014 2014 2014Sales*…
  29. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 29
    2015 INTERNATIONAL + GOM GUIDANCE Production Region Guidance 61% Egypt Gross Oil Egypt Net North Sea 300 289 133 GOM GOM 41% Total Intl Slight Growth Australia Oil N. Sea Egypt Tax 70% 69% MBOE/D Barrels & Oil…
  30. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 30
    FIRST-QUARTER 2015 NET DEBT RECONCILIATION 14,000 239 94 92 900 703 12,044 3,100 12,000 1,340 10,476 10,000 2,100 8,000 6,844 6,000 4,000 2,000 0 Net Debt E&P and GTP Working Capital LNG Capex Dividends…
  31. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 31
    EGYPT: TRACK RECORD OF LONG-TERM PRODUCTION GROWTH Gross Prod. Mboe/d 375 348 350 325 300 275 43% 250 225 200 175 150 125 100 57% 75 50 25 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010…
  32. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 32
    EGYPT: WESTERN DESERT OFFERS MULTIPLE STACKED PAYS Depth 12 potential pay zones 3,000 Balanced portfolio of lower and higher risk targets Productive Reservoirs Shallow bailout zones reduce dry hole risk on deeper exploratory…
  33. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 33
    EGYPT: LEADING EXPLORER ONSHORE Wells Drilled Success Rate 350 332 80% New Field Wildcats by Operator (2004-2015) 70% 300 63% 54% 55% 60% 250 51% 50% 44% 50% 200 178 40% 150 30% 100 81 20% 49 54 50 41 27 24 30 27 17 10%…
  34. UBS 2015 Global Oil & Gas Conference – Apache Corp – slide 34
    NORTH SEA: TRACK RECORD OF LONG-TERM PRODUCTION GROWTH Gross Prod. Mboe/d 80 71 70 12% 60 50 40 88% 30 20 10 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1Q'15 Liquids (MMBL/D) Gas (MMCF/D) 34

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