03.16.2016 J.P. MORGAN 13TH ANNUAL MIDDLE EAST OIL AND GAS TOUR THOMAS MAHER, REGION VICE PRESIDENT-EGYPT
KEY MESSAGES Apache is successfully navigating the difficult price environment Proactively sold non-core assets, reduced capital spending, attacked cost structure Completed 10+ billion of non-core asset sales in 2014 and 2015 Strong…
STREAMLINED PORTFOLIO Well balanced portfolio with diversified opportunity set Extensive resource base in North America, anchored by Permian, will drive future growth Free cash flow generating assets with years of exploration and…
ATTRACTIVE INTERNATIONAL PLAYS In a sub 50 oil environment, international regions generate higher cash margins than North America High quality, stacked pay reservoirs with relatively high cash margins Significant exploration…
FY 2015 REGIONAL CASH MARGINS North Sea Egypt Permian Other NA 50.00 49 / Boe 45.00 40.00 37 / Boe 35.00 33 30.00 Per Boe 31 / Boe 25.00 26 20.00 Per Boe 20 22 / Boe 15.00 16 / Boe Per Boe 10 11 / Boe 11 / Boe 12 / Boe Per…
CASH FLOW SENSITIVITY Apaches Egypt cash flow is less sensitive to falling oil price than North America Base Oil Price: 50 - 5 - 10 - 15 - 20 0% Percent Change in Regional Cash Flows (Cum) -10% -20% -30% -40% Change…
APACHE 2016 CAPITAL PROGRAM Other 7% 1.4 to 1.8 billion total Canada & Other 60% YOY reduction L48 11% Permian 29% 300 to 400 million allocated to Egypt (net to Apache) North Sea 30% 40% YOY reduction Egypt 23% Expect to…
EGYPT ASSET OVERVIEW 2015 Reported Production 59% Oil Production 2015 Oil and Gas Revenue Operator since 1995 4.8 million gross acres (4.3 million net) across 23 concessions Averaged 352 Mboe/d gross production in 4Q…
WESTERN DESERT STACKED PAY POTENTIAL Lots of ways to win 10
APACHE IS THE LEADING EXPLORER IN EGYPT Wells Drilled Success Rate New Field Wildcats by Operator 400 (2004-2015) 80% 350 340 70% 63% 58% 300 55% 60% 51% 50% 250 44% 50% 196 200 40% 150 30% 100 82 20% 42 49 54 50 27 24…
APACHE EGYPT RESERVE HISTORY Exploration drives future reserve growth Recent oil finds helped grow our reserve base in 2015, despite 35% capital cut MMboe 400 350 300 Year-End Proved Reserves 250 200 150 100…
APACHE EGYPT PRODUCTION HISTORY Largest current gross operated oil producer in Egypt Uninterrupted production throughout history Over 7 billion of free cash flow generated during the past 7 years Mboe/d 400 Stable gross 350…
OIL PRICES AND APACHE PRODUCTION PSC structure in Egypt generally results in rising cost recovery barrels in a falling price environment Mboe/d J J J J JFFFFMMMMAAAAMMMMMJ J J J J J J J JAAAASSSSOOOOONNNNDDDDJ J J J…
SIGNIFICANT OIL DISCOVERIES Berenice Ptah Ptah and Berenice fields exceeded 30,000 gross bo/d during the fourth quarter of 2015 13 wells drilled and producing with an average drilling and completion cost of 3.6 million per…
CONTINUOUS IMPROVEMENT IN OPERATIONS Ptah Field Hydra Field Drilling to TD Logging and Casing D&C Cost (MM) Drilling to TD Logging and Casing D&C Cost (MM) Ptah and Berenice drill and complete costs decreased from 5.8 MM to 1.9…
GULF OF SUEZ EXPLORATION Abu Thora Depth E Cret NWAZ-C B A Tr-Jur NWAZ-B-1X D (proposed) L Pz U Pz ERB-B-2X Coastline PC NWAZ B-1X Paleozoic Nubia NWAZ-B-1X Prop. Thebes Trap Type 3-way faulted high…
2015 DRILLING RECAP 2015 Program Success 2015 Development Rate On Production Wells Connected Peak 30-Day Avg IP 1Q 24 664 Boe/d 2Q 19 892 Boe/d 97% 3Q 16 1,241 Boe/d 4Q 15 963 Boe/d 2015 Program Success 2015 Exploration Rate…
APACHE EGYPT PRODUCTION DETAIL 4Q 2015 3Q 2015 Liquids Gas Liquids Gas (Bbls/d) (Mcf/d) Boe/d (Bbls/d) (Mcf/d) Boe/d Gross Production 213,135 831,421 351,705 216,503 873,418 362,073 Net Production 60,592 271,142 105,782 92,129…
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