08.04.2016 SECOND-QUARTER 2016 FINANCIAL AND OPERATIONAL SUPPLEMENT
TABLE OF CONTENTS Second-Quarter 2016 Financial and Operational Results.. 4 Second-Quarter 2016 Regional Summary. 14 2016 Production Guidance and Capital Program. 22 2016 Successful Efforts Accounting Overview 25 Non-GAAP…
SECOND-QUARTER 2016 FINANCIAL AND OPERATIONAL RESULTS 4
SECOND-QUARTER 2016 KEY METRICS Earnings Per Share (0.65) NM Adjusted Earnings Per Share(1) (0.26) NM Net Cash From Operating Activities 744 Million 211% From 1Q16 Adjusted EBITDA(X)(1) 787 Million 43% Pro Forma Production(2)…
KEY 2Q RESULTS Under full cost and successful efforts 2Q16 Successful Full Cost Efforts Description of Differences Primarily lower under full cost as a result of full cost ceiling Earnings Per Share (1.58) (0.65) test write downs…
SECOND-QUARTER 2016 HIGHLIGHTS Substantial increase in net cash from operating activities and EBITDAX from the first quarter Excellent progress reducing LOE Production trending in line with guidance Limited activity in the quarter,…
PRODUCTION AND REVENUES BY PRODUCT 2Q 2016 Reported Production Oil and Gas Revenue 535 MBOE/D 1.4 Billion 53% Oil Production 81% Oil Revenue Oil Natural Gas NGLs Note: Reported volumes include noncontrolling interest…
PRO FORMA PRODUCTION RECONCILIATION 2Q 2016 Mboe/d 600 535 24 50 500 461 400 300 200 100 0 2Q 2016 Egypt Tax Barrels Noncontrolling interest (1) 2Q 2016 Reported Production Pro Forma Production North American…
QUARTERLY COSTS TRENDING DOWN Gross Overhead - Cash Cost Lease Operating Expense Per Boe (Millions) 16% 2Q16 vs 2Q15 ( / Boe) 17% 2Q16 vs 2Q15 200 10.50 10.00 180 9.50 160 9.00 8.50 140 8.00 120 7.50 100 7.00…
2Q 2016 OPERATING CASH MARGINS Egypt North Sea Permian Other NA 40.00 38 / Boe 35.00 34 / Boe 30.00 21 26 / Boe 25.00 Per Boe 20.00 27 17 / Boe 17 Per Boe 17 / Boe 15.00 Per Boe 8 Per Boe 10.00 9 / Boe 9 / Boe 7 /…
2Q 2016 NET DEBT RECONCILIATION ( in millions) 10,000 9,000 379 99 94 24 542 8,000 7,715 202 48 7,519 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Net Debt E&P and GTP Leasehold & Dividends Other Cash Flow…
OIL AND GAS CAPITAL INVESTMENT For the Quarter Ended, For the Six Months Ended, ( in millions) June 30, 2016 June 30, 2016 ( in millions) E&P and GTP Investment…
PERMIAN: 2Q 2016 REGION SUMMARY Midland Basin PERMIAN KEY STATS Placed four gross wells on production targeting the Wolfcamp and Lower SECOND-QUARTER 2016 Reported Production: 165,455 Boe/d Spraberry formations. Drilled & Completed…
2Q 2016 NORTH AMERICAN ONSHORE WELL RECAP Average Avg 30-Day IP / Well Name Play Area County Lateral % Oil 30-Day IP 1,000 Lateral Ft MIDLAND BASIN Connell 38C 2HM Wolfcamp B Powell-Miller Upton 5,024 1,308 Boe/d 260 82% Connell 38B…
EGYPT: 2Q 2016 SUMMARY Operational Activity EGYPT KEY STATS SECOND-QUARTER 2016 Gross production of 350 Mboe/d was down modestly from 1Q due Reported Production: 175,175 Boe/d Drilled & Completed Wells*: 15 gross, 14 net primarily…
NORTH SEA: 2Q 2016 SUMMARY Forties Field NORTH SEA KEY STATS SECOND-QUARTER 2016 One platform rig remained active during the quarter, performing Reported Production: 70,740 Boe/d workover and maintenance activities. Drilled &…
INTERNATIONAL 2Q 2016 DRILLING RECAP North Sea Well Highlights Program Success Rate 30-Day Well Name Field Average IP LP7 Nevis 42 MMcfe/d BCR Beryl 37 MMcfe/d 100% FNT Beryl 6,234 Boe/d Egypt Well Highlights Program…
EGYPT: PRODUCTION DETAIL 1Q 2016 2Q 2016 Liquids Gas Liquids Gas (Bbls/d) (Mcf/d) Boe/d (Bbls/d) (Mcf/d) Boe/d Gross Production 211,992 846,047 353,000 213,975 814,283 349,689 Net Production 99,547 397,598 165,813 107,173 408,013…
2016 PRODUCTION GUIDANCE AND CAPITAL PROGRAM 22
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…
APACHE 2016 CAPITAL PROGRAM Regional Allocation(1) Other 6% Canada & Midcon/GulfCoast 10% Permian 39% North Sea 26% Egypt 19% (1) Revised on August 4th in conjunction with second-quarter 2016 results. 24
2016 SUCCESSFUL EFFORTS ACCOUNTING OVERVIEW 25
MANAGEMENT RATIONALE FOR CHANGE TO SUCCESSFUL EFFORTS METHOD OF ACCOUNTING Greater transparency in Vast majority of large results of our assets cap E&P peers utilize Enhances operating successful efforts decision making and…
OVERVIEW OF SIGNIFICANT DIFFERENCES FULL COST VS. SUCCESSFUL EFFORTS CATEGORY FULL COST SUCCESSFUL EFFORTS Calculated at an aggregation of Depletion Expense Calculated at the country level properties with common geological structure…
EFFECT ON RETAINED EARNINGS Transition from full cost to successful efforts Retained Earnings as of 3/31/16 under FC (7,642) Cumulative Effect of Differences under SE as of 3/31/16 5,290 Retained Earnings as of 3/31/16 under SE (2,352)…
EFFECT ON RETAINED EARNINGS Explanation of differences 1. Exploration Expense (7,975) 2. DD&A and Impairment Adjustments 3. Change in Capitalized Interest 4. Gain (Loss) on Divestitures 5. Valuation Allowance and Other Taxes 6. Other…
EFFECT ON RETAINED EARNINGS Explanation of differences 1. Exploration Expense (7,975) 2. DD&A and Impairment Adjustments 14,920 3. Change in Capitalized Interest 4. Gain (Loss) on Divestitures 5. Valuation Allowance and Other Taxes 6.…
EFFECT ON RETAINED EARNINGS Explanation of differences 1. Exploration Expense (7,975) 2. DD&A and Impairment Adjustments 14,920 3. Change in Capitalized Interest (1,306) 4. Gain (Loss) on Divestitures (989) 5. Valuation Allowance and…
EFFECT ON RETAINED EARNINGS Explanation of differences 1. Exploration Expense (7,975) 2. DD&A and Impairment Adjustments 14,920 3. Change in Capitalized Interest (1,306) 4. Gain (Loss) on Divestitures (989) 5. Valuation Allowance and…
2Q 2016 INCOME STATEMENT Under full cost and successful efforts APACHE CORPORATION AND SUBSIDIARIES STATEMENT OF CONSOLIDATED OPERATIONS (Unaudited) For the Quarter Ended June 30, 2016 Under Full Under Successful Cost Changes…
NON-GAAP RECONCILATIONS 34
NON-GAAP RECONCILIATION Adjusted earnings under successful efforts Reconciliation of income attributable to common stock to adjusted earnings Adjusted earnings and adjusted earnings per share are non-GAAP financial measures. Adjusted…
NON-GAAP RECONCILIATION Adjusted earnings under full cost Reconciliation of income attributable to common stock to adjusted earnings under Full Cost Adjusted earnings and adjusted earnings per share are non-GAAP financial measures.…
NON-GAAP RECONCILIATION Adjusted EBITDA(X) Reconciliation of income (loss) before taxes to adjusted EBITDAX Adjusted EBITDAX is a non-GAAP financial measure. EBITDAX is a widely accepted financial indicator of a company's ability to incur…
NON-GAAP RECONCILIATION Cash flow from operations Reconciliation of net cash provided by operating activities to cash flows from continuing operations before changes in operating assets and liabilities Cash flows from continuing…
NON-GAAP RECONCILIATION Net debt Reconciliation of debt to net debt Net debt is a non-GAAP financial measure. Management uses net debt as a measure of the Company's outstanding debt obligations that would not be readily satisfied by its…
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