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August 2015 Investor Presentation – Apache Corp

Apache Corp · Aug 11, 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. August 2015 Investor Presentation – Apache Corp – slide 1
    RIGHT PEOPLE. RIGHT ACREAGE. RIGHT STRATEGY
  2. August 2015 Investor Presentation – Apache Corp – slide 2
    APACHE RELOADED AND DELIVERING Exceeding 2015 operational plan and guidance Reacted quickly to falling oil price environment Reduced 2015 planned capital budget year over year by 60% Reduced North American rig count from 90 in 3Q…
  3. August 2015 Investor Presentation – Apache Corp – slide 3
    2Q 2015 OPERATIONAL HIGHLIGHTS Strong onshore North American production, 3% increase sequentially Driven by a 13,500 boe/d increase in the Permian Basin Strong gross oil production from Egypt, 2% increase sequentially 564 MBOE/D(1)…
  4. August 2015 Investor Presentation – 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. August 2015 Investor Presentation – 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. August 2015 Investor Presentation – Apache Corp – slide 6
    PORTFOLIO TRANSFORMATION: PRODUCTION 2009 Production(1) Pro Forma 2Q 2015 Production(2) International & GOM International & GOM 34% N.A. Onshore 65% N.A. Onshore 537 MBOE/D 489 MBOE/D 50% Liquids 65% Liquids N.A. Onshore…
  7. August 2015 Investor Presentation – 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. August 2015 Investor Presentation – 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 MIDCONTINENT PERMIAN EAGLE FORD 8
  9. August 2015 Investor Presentation – Apache Corp – slide 9
    2015 CAPITAL PLAN Capex(1): 3.6 3.9 Bn Rigs by Play9 Primary Plays2H 2015 RIGS North American Onshore Delaware Basin Horizontals 5 International & Midland Basin Focus Area 4 GOM CBP/NW Shelf Horizontals 3 Woodford 2 Eagle Ford…
  10. August 2015 Investor Presentation – Apache Corp – slide 10
    PERMIAN REGION Central Basin Platform / NW Shelf Industrys 3rd largest acreage positon (3.2 MM gross) Midland Basin Production of 172 MBOE/D in 2Q 15 57% oil Delaware Basin 8% YoY oil production growth Averaged 10 rigs in 2Q…
  11. August 2015 Investor Presentation – Apache Corp – slide 11
    DELAWARE BASIN Acres 230,000 net Lea Planned 2H15 Rigs 4-5 rigs Eddy Inventory 1,400 Hz locations WAHA Focusing primarily on Bone Loving Winkler Spring and Wolfcamp Reeves Ward Positive results from new Third Pecos Bend…
  12. August 2015 Investor Presentation – Apache Corp – slide 12
    MIDLAND BASIN FOCUS AREA Acres 200,000 net Azalea Planned 2H15 Rigs 3-4 rigs Glasscock Wildfire Inventory 2,900 locations Midland Powell- Multiple landing zones Miller Realizing 25% well cost Upton Reagan reduction from…
  13. August 2015 Investor Presentation – Apache Corp – slide 13
    CENTRAL BASIN PLATFORM / NORTHWEST SHELF Cedar Lake Acres 865,000 net Planned 2H15 Rigs 3-4 rigs Inventory 1,000 Hz locations 4,500 Vt locations 100,000 Boe/d of gross production Seth Campbell Low base decline rate (14%)…
  14. August 2015 Investor Presentation – Apache Corp – slide 14
    EAGLE FORD Robertson Acres 288,000 net Brazos Planned 2015 Rigs 1 rig Inventory(1) 3,000 Hz locations Burleson Improving completion techniques Grimes Recently drilled the best performing wells to date the Lee Walker 1H and 3H…
  15. August 2015 Investor Presentation – Apache Corp – slide 15
    CANYON LIME Bivins East 99 1H 1,119 Boe/d 30-day Acres 130,000 net IP rate (86% oil) Inventory 800 Hz locations Continued step out testing in lower zone Planning upper zone test in second half of 2015 Drilled Well Monitor…
  16. August 2015 Investor Presentation – Apache Corp – slide 16
    EGYPT: LEADING ONSHORE DRILLER CURRENT LEASEHOLD: 6.7 MM gross acres 349 MBOE/D gross production In Shushan-Khalda Ridge Matruh 24 Concessions 2Q 2015 Alamein Multiple-stacked pays Gindi / Similar to Permian basin Beni Suef…
  17. August 2015 Investor Presentation – Apache Corp – slide 17
    EGYPT: WESTERN DESERT E&D PROGRAM 2014 Program (82% success rate) 2015 Exploration Program 33 wells Drilled 171 development and 49 Matruh Basin exploration wells 5 wells Added 61 MMBOE of net proved reserves at F&D cost of…
  18. August 2015 Investor Presentation – Apache Corp – slide 18
    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 Note: Free cash flow equals cash flow from operations…
  19. August 2015 Investor Presentation – Apache Corp – slide 19
    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 200 drilling prospects…
  20. August 2015 Investor Presentation – Apache Corp – slide 20
    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)…
  21. August 2015 Investor Presentation – Apache Corp – slide 21
    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…
  22. August 2015 Investor Presentation – Apache Corp – slide 22
    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 Note: Free cash flow equals cash flow from operations…
  23. August 2015 Investor Presentation – Apache Corp – slide 23
    SUMMARY Refocused the asset base and realigned the organization Greatly enhanced our balance sheet and Delivering strong production and raising our guidance Rigorously reducing all facets of the cost structure Anticipate strong…
  24. August 2015 Investor Presentation – Apache Corp – slide 24
    KEY INVESTMENT ATTRIBUTES Attractive EBITDA multiple relative to peer group 2Q net debt to consensus 2015 EBITDA less than 2.0x(1) Industry leading strategy to reduce costs Under-appreciated assets in Egypt and North Sea Organic…
  25. August 2015 Investor Presentation – Apache Corp – slide 25
    APPENDIX
  26. August 2015 Investor Presentation – Apache Corp – slide 26
    2015 NORTH AMERICA ONSHORE GUIDANCE Production Region Guidance Gulf Coast 400 41% Permian Oil Central 44% Canada 43% 45% Oil Total NA MBOE/D Oil Oil +1% - 2% Relatively Onshore 302 Flat 305 - 308 200 2014…
  27. August 2015 Investor Presentation – Apache Corp – slide 27
    2015 INTERNATIONAL + GOM GUIDANCE Production Region Guidance 200 Egypt Gross = 69% Egypt Net 41% Oil Oil North Sea = 69% 61% GOM Oil Oil 164 - 168 Total Intl +5% - 8% MBOE/D 156 Egypt Tax Barrels & Noncontrolling…
  28. August 2015 Investor Presentation – Apache Corp – slide 28
    2Q 2015 NET DEBT RECONCILIATION 16,000 95 54 36 58 69 14,000 1,391 1,090 5,677 12,044 12,000 10,000 8,000 6,726 6,000 4,000 2,000 0 Net Debt E&P and GTP Dividends Other Leasehold & Cash Flow From Changes…
  29. August 2015 Investor Presentation – Apache Corp – slide 29
    STRATEGIC TRANSACTIONS OVER LAST 5 YEARS WTI Oil Price Henry Hub Gas Price 145 7 17 Bn Divested 5 125 5 6 1 3 105 7 8 2 4 9 10 3 85 4 5 1 2 3 17 Bn Acquired WTI Oil Natural Gas 65 1 1/4/2010 1/4/2011 1/4/2012 1/4/2013…
  30. August 2015 Investor Presentation – Apache Corp – slide 30
    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…
  31. August 2015 Investor Presentation – Apache Corp – slide 31
    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…
  32. August 2015 Investor Presentation – Apache Corp – slide 32
    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%…
  33. August 2015 Investor Presentation – Apache Corp – slide 33
    NORTH SEA: TRACK RECORD OF LONG-TERM PRODUCTION GROWTH Gross Prod. Mboe/d 80 70 70 13% 60 50 40 87% 30 20 10 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 1H'15 Liquids (MMBL/D) Gas (MMCF/D) 33
  34. August 2015 Investor Presentation – Apache Corp – slide 34
    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…

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