June 2, 2016 BERNSTEINS 32ND ANNUAL STRATEGIC DECISIONS CONFERENCE JOHN CHRISTMANN, CEO AND PRESIDENT
STREAMLINED PORTFOLIO Well balanced portfolio with diversified opportunity set Extensive resource base in North America, anchored by Permian Free cash flow generating assets with years of exploration and development in Egypt and the…
APACHES APPROACH IN THE DOWNTURN Completed significant asset disposals in 2014/2015 and paid down debt Reduced costs early and aggressively Maintained dividend and did not issue equity Implemented more centralized and dynamic…
PERFORMING WELL THROUGH THE DOWNTURN 20% WTI Oil Price APA Stock Price EPX Stock Index 10% 58 / Bbl 49 / Bbl 0% -4% -10% -15% -20% -30% -33% -40% -50% -60% -70% 5/26 6/26 7/26 8/26 9/26 10/26 11/26 12/26 1/26 2/26 3/26…
RELENTLESS FOCUS ON COST REDUCTION Cumulative Well Gross Overhead - Cash Cost LOE Per Boe Cost Declines(1) 45% (Millions) 19% 1Q16 vs 1Q15 ( / Boe) 21% 1Q16 vs 1Q15 0% 200 10.00 9.50 -10% 180 9.00 -20% 160 8.50 -30%…
NAVIGATING A VOLATILE MARKET IN 2016 Targeting unchanged or lower net debt from year-end 2015 to year-end 2016 Cash flow is the governor on 2016 CAPEX investment will increase with confidence in price sustainability Focused on…
FIRST-QUARTER 2016 HIGHLIGHTS North American Onshore production of 298 Mboe/d exceeded guidance of 290 295 Mboe/d 466 million capital expenditures, below company guidance of 500 to 550 million 45% average well cost reduction in key…
NORTH AMERICA WELL COST REDUCTIONS Design Savings Efficiency 100% 10% Savings Service Cost 14% 80% Savings 21% 60% Structural cost savings account for over half of the 45% well cost reductions to 40% date. 20% 0% 2014…
STRONG FINANCIAL POSITION (in billions) 14 12 Investing within cash flows 10 Only 700 million of debt 8 maturing through 2020 36% 6 4.5 billion of liquidity 4 1.0 billion of cash 2 3.5 billion credit facility 0…
APACHE CONVENTIONAL PERMIAN PLAYS Central Basin Platform 180 60% Annual Decline Rates 45% Permian Production 150 50% 120 14% (Boe/d) 40% of total Permian production 90 30% base decline 20% 60 CBP / 10% NW Shelf 30 0%…
CONVENTIONAL INTERNATIONAL PLAYS High quality, stacked pay reservoirs with high cash margins Significant exploration opportunity demonstrated with Ptah and Egypt Berenice oil fields PSC arrangement provides a buffer to declining oil…
UNCONVENTIONAL NORTH AMERICAN CORE Well costs were down nearly 50% in 1Q 2016 from 4Q 2014 Midland Continuing to drive down D&C costs: 1-mile horizontal Wolfcamp expected to be less than 4.0 million 1.5-mile horizontal Lower…
1Q 2016 OPERATING CASH MARGINS North Sea Egypt Permian Other NA 35.00 32 / Boe 30.00 25.00 21 26 / Boe Per Boe 20.00 17 20 / Boe 15.00 Per Boe 11 Per Boe 15 / Boe 10.00 11 / Boe(1) 9 / Boe 9 / Boe 10 / Boe 5…
APACHE 2016 CAPITAL PROGRAM Other 7% 1.4 to 1.8 billion Canada & Other L48 11% Permian More than 60% YOY 29% reduction North Sea 30% Egypt Only 35% allocated 23% to development drilling 17
OIL AND GAS CAPITAL INVESTMENT (in millions) 1Q16 1Q15(2) E&P and GTP Investment: Permian ........................................................................................ 147 435 MidCon / Gulf Coast…
2016 PRODUCTION GUIDANCE North American Onshore International and Offshore 400 400 43% 41% Oil Oil 42% 350 350 Oil 309 300 300 268 278 69% 67% Oil Oil 250 250 -13% to -10% 170 - 180 MBOE/D 200 2% 200 176 150 150…
PERMIAN: 1Q 2016 REGION SUMMARY Midland Basin PERMIAN KEY STATS Completions focused in the Powell-Miller, Wildfire and Barnhart areas. FIRST-QUARTER 2016 Reported Production: 171,041 Boe/d Compression projects, recompletions and…
NORTH SEA: 1Q 2016 SUMMARY Forties Field NORTH SEA KEY STATS FIRST-QUARTER 2016 Drilled and completed 3 successful operated wells during the first Reported Production: 70,170 Boe/d quarter of 2016. Drilled & Completed Wells*: 6…
EGYPT: 1Q 2016 SUMMARY Operational Activity EGYPT KEY STATS FIRST-QUARTER 2016 11 new oil producers with a range of 1,000 bo/d to 3,000 bo/d came Reported Production: 156,058 Boe/d Drilled & Completed Wells*: 26 gross, 22 net online…
INTERNATIONAL 1Q 2016 DRILLING RECAP North Sea Well Highlights Program Success Rate Peak 30-Day Well Name Field Average IP FASP-7 Forties 3,523 Boe/d FASP-12 Forties 2,846 Boe/d* 67% FC32 Forties 3,979 Boe/d* A76 Beryl 1,108…
EGYPT: PRODUCTION DETAIL 4Q 2015 1Q 2016 Liquids Gas Liquids Gas (Bbl/d) (Mcf/d) Boe/d (Bbl/d) (Mcf/d) Boe/d Gross Production 213,135 831,421 351,705 211,992 846,047 353,000 Net Production 60,592 271,142 105,782 91,294 388,583…
APACHE: OFFSHORE SURINAME POSITION 867,000 acres 1.4 million acres 26
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