Skip to main content Johnson Rice 2016 Energy Conference – Apache Corp Investor Presentation | Shale Experts
Loading...
Pm

Johnson Rice 2016 Energy Conference – Apache Corp

Apache Corp · Sep 21, 2016 · 49 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. Johnson Rice 2016 Energy Conference – Apache Corp – slide 1
    September 21, 2016 JOHNSON RICE ENERGY CONFERENCE GARY CLARK, VP INVESTOR RELATIONS
  2. Johnson Rice 2016 Energy Conference – Apache Corp – slide 2
    AGENDA I. Corporate Strategy Update II. Permian Basin Update III. The Next Resource Play: Alpine High IV. 2017 Preview Technical Appendix 3
  3. Johnson Rice 2016 Energy Conference – Apache Corp – slide 3
    CORPORATE STRATEGY UPDATE 4
  4. Johnson Rice 2016 Energy Conference – Apache Corp – slide 4
    APACHES STRATEGY FOR VALUE CREATION Strategic objective to live within cash flow Operational Diverse inventory of short, intermediate and long cycle projects Flexibility Dynamic planning and centralized capital allocation process…
  5. Johnson Rice 2016 Energy Conference – Apache Corp – slide 5
    APACHES STRATEGIC TRANSFORMATION Legacy: Acquire and Exploit Current: Organic Growth Focus Growth through acquisition, Growth driven by North America with a exploitation and step-out exploration Permian Basin focus Free cash flow…
  6. Johnson Rice 2016 Energy Conference – Apache Corp – slide 6
    BALANCED PORTFOLIO Focused on North American Growth North America Onshore International & Offshore Conventional Canada Anadarko Woodford UK North Sea Montney & SCOOP Duvernay Eagle Ford S. LA Minerals GoM Suriname…
  7. Johnson Rice 2016 Energy Conference – Apache Corp – slide 7
    PERMIAN BASIN UPDATE 8
  8. Johnson Rice 2016 Energy Conference – Apache Corp – slide 8
    PERMIAN BASIN OVERVIEW 1.7 Million Net Acres APA Permian Basin Acreage Position 3 acreage holder and producer Within the 95%+ HBP acreage position, excluding Basin new Alpine High acreage 2Q16 production of 165,000 boe/d (40%…
  9. Johnson Rice 2016 Energy Conference – Apache Corp – slide 9
    PERMIAN BASIN SPOTLIGHT Midland Basin: 193,000 Net Acres in the Core Base Case Inventory 50/bbl Apache Core County Acreage Spraberry APA acreage Wolfcamp Shale Recent peer transactions Glasscock Zones 3 1 Midland Spacing 6x 8x…
  10. Johnson Rice 2016 Energy Conference – Apache Corp – slide 10
    STRONG RECENT WELL PERFORMANCE Apache Core Midland Basin Wolfcamp Cumulative Production: APA vs. Peer Type Curves Mboe 200 APA Improved 150 APA Improved Targeting & Targeting New Completion 100 50 APA Improved…
  11. Johnson Rice 2016 Energy Conference – Apache Corp – slide 11
    PERMIAN BASIN SPOTLIGHT Delaware Basin: 420,000 Net Acres Pecos Bend Well Results Apache Delaware Basin Acreage Mboe 200 APA Improved Completion with Integrated 3D Seismic 150 Pecos Bend Dixieland APA Improved Waha…
  12. Johnson Rice 2016 Energy Conference – Apache Corp – slide 12
    POSITIONING APACHE FOR THE UPCYCLE Steps Taken Through the Downturn Completed strategic portfolio review, closed asset sales and significantly deleveraged Responded quickly and aggressively to the commodity downturn by reducing…
  13. Johnson Rice 2016 Energy Conference – Apache Corp – slide 13
    THE NEXT RESOURCE PLAY Alpine High DELAWARE BASIN 14
  14. Johnson Rice 2016 Energy Conference – Apache Corp – slide 14
    ALPINE HIGH KEY HIGHLIGHTS World Class Resource Play Methodically accumulated over the last 18 months, 20% of Reeves Co. 307,000 Apache controls 352,000 gross acres, the vast majority of the play Contiguous Net Acres 1,300/net acre…
  15. Johnson Rice 2016 Energy Conference – Apache Corp – slide 15
    ALPINE HIGH: LEASED 182K NET ACRES IN 2H15 Building Scale 16
  16. Johnson Rice 2016 Energy Conference – Apache Corp – slide 16
    ALPINE HIGH: LEASED 70K NET ACRES IN 2016 Expanding the Margins 17
  17. Johnson Rice 2016 Energy Conference – Apache Corp – slide 17
    APACHES DIFFERENTIATED VIEW Southern Delaware Basin Historical Drilling Activity Key Alpine High Technical Parameters Perception Reality Structural Uplifted & Relatively Stable History Complex Paleo High Thermal Dry Gas Wet Gas…
  18. Johnson Rice 2016 Energy Conference – Apache Corp – slide 18
    PALEOGEOGRAPHIC RECONSTRUCTION Woodford Time Same geologic age as Arkoma Woodford and SCOOP / STACK Similar depositional environment 19
  19. Johnson Rice 2016 Energy Conference – Apache Corp – slide 19
    GEOLOGY OF THE SOUTHERN DELAWARE BASIN IMMATURE South West Alpine High North East Evaporites 5,000 OIL Bone Springs / Wolfcamp 10,000 Penn / Barnett / Woodford Bone Springs / Wolfcamp WET GAS 15,000 20,000 Alpine…
  20. Johnson Rice 2016 Energy Conference – Apache Corp – slide 20
    EXTENSIVE LATERAL CONTINUITY IDEAL FOR A RESOURCE PLAY Well Logs Across Alpine High Source Interval Transgressive Interval 65 Miles Regional reservoir consistency and continuity Barnett Formation Mississippian Lime…
  21. Johnson Rice 2016 Energy Conference – Apache Corp – slide 21
    4,000-5,000 OF STACKED POTENTIAL PAY MONT BLANC 1H SPANISH TRAIL 1H 20 Miles Delaware Basin Stratigraphy TRANSGRESSIVE PARASEQUENCES TRANSGRESSIVE PARASEQUENCES Oil Oil Brushy Canyon Penn Wet Gas…
  22. Johnson Rice 2016 Energy Conference – Apache Corp – slide 22
    FAVORABLE COMPARATIVE PARAMETERS Alpine High vs. Established Resource Plays Alpine High SCOOP Marcellus Eagle Ford Parameter (Woodford/Barnett) (Woodford) (Wet Gas) (Condensate) TOC (weight %) 4%-10% 4%-10% 1%-5% 1%-7% Primary…
  23. Johnson Rice 2016 Energy Conference – Apache Corp – slide 23
    STRONG WELL RESULTS Woodford and Barnett Producers Alpine High (Short Lateral) Well Results(1) Alpine High Acreage 24-Hour IP Rates NGL Estimates(2) Target Gross Yield Well Name Zone Mcf/d bo/d bbl/d bbl/Mcf 1 Spanish Trail 1H…
  24. Johnson Rice 2016 Energy Conference – Apache Corp – slide 24
    WOODFORD / BARNETT HIGH QUALITY OIL Oil Chromatogram Mole Fraction % 18% 92% refined gasoline / diesel 16% 58% gasoline 14% 20% jet fuel and kerosene 12% 14% diesel 8% vacuum gasoline oil 10% 8% 6% 4% 2% C7 C8 C9 C10 C11 C12…
  25. Johnson Rice 2016 Energy Conference – Apache Corp – slide 25
    ALPINE HIGH: A TRUE RESOURCE PLAY WITH LOW WATER PRODUCTION Water Production Rates for Alpine High Barnett & Woodford Wells Water, bbls/d 5,000 4,000 Declining water rates result in lower opex and increased recoveries 3,000…
  26. Johnson Rice 2016 Energy Conference – Apache Corp – slide 26
    LARGE SCALE, HIGH RETURN POTENTIAL Woodford and Barnett Economics (4,100 laterals) Single Well (Short Lateral) Assumptions Low - High D,C&E Costs ( MM) To Date Expected in Development 5.5 4.0 - - 8.0 6.0 2,000-3,000+…
  27. Johnson Rice 2016 Energy Conference – Apache Corp – slide 27
    SUCCESSFUL OIL TESTS Wolfcamp and Bone Springs Redwood 1P Alpine High Acreage Wolfcamp Vertical DST 700 Bo/d; 4.5 MMcf/d 45 degree API; 1,300 BTU Mont Blanc 2H(1) 3rd Bone Spring 854 Bo/d; 1.5 MMcf/d 43 degree API; 1,350…
  28. Johnson Rice 2016 Energy Conference – Apache Corp – slide 28
    ALPINE HIGH OIL SAMPLES 29
  29. Johnson Rice 2016 Energy Conference – Apache Corp – slide 29
    ALPINE HIGH: NEXT STEPS Continue to test oil-bearing zones above Woodford / Barnett Delineation Define geographic and stratigraphic extent of the play 2H 2016: Install temporary processing capacity, evaluate midstream development…
  30. Johnson Rice 2016 Energy Conference – Apache Corp – slide 30
    2017 PREVIEW 31
  31. Johnson Rice 2016 Energy Conference – Apache Corp – slide 31
    2017 PREVIEW Actively manage the portfolio; further streamlining is possible Strategy Capital budgeting based on conservative price assumptions Maintain operational flexibility to respond to market changes Return onshore North…
  32. Johnson Rice 2016 Energy Conference – Apache Corp – slide 32
    APACHE IS IDEALLY POSITIONED FOR THE FUTURE Technical Successfully Positioned World class expertise & Strong navigating for strong people & organic financial the returns and assets growth position downturn growth potential…
  33. Johnson Rice 2016 Energy Conference – Apache Corp – slide 33
    TECHNICAL APPENDIX 34
  34. Johnson Rice 2016 Energy Conference – Apache Corp – slide 34
    ALPINE HIGH CONFIRMATION CHRONOLOGY 2014 2015 2016 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Acquired 55,000 Acquired 55K acres acres Acquired Acquired182,000 acres 182K acres Acquired Acquired99,000 70K acres acres Phase 1 3D Seismic…
  35. Johnson Rice 2016 Energy Conference – Apache Corp – slide 35
    TRANSGRESSIVE 3D SEM Delineation Well 2 Woodford FM Porosity / Calibrated 3D SEM Cube 3D SEM Electron Frequency Opacity Cube Organic Material Connected Organic Porosity 36
  36. Johnson Rice 2016 Energy Conference – Apache Corp – slide 36
    TRANSGRESSIVE 3D SEM Delineation Well 3 Barnett FM Porosity / Calibrated 2D SEM Cube 3D SEM Cube 3D SEM Electron Frequency Opacity Cube Disconnected Porosity Connected Organic Porosity 37
  37. Johnson Rice 2016 Energy Conference – Apache Corp – slide 37
    MATURATION HISTORY MODEL Operative Thermal Maturity Mechanism: Burial / Section Erosion 9,000 FT Hydrocarbon Generation Window Ro = 0.7 - 1.8 13,000 FT 1.0 38
  38. Johnson Rice 2016 Energy Conference – Apache Corp – slide 38
    ALPINE HIGH Middle Permian Paleostructure Map Critical Aspects Regional anomaly Stable Devonian shelf Subsiding eastern limb 10 Miles 39
  39. Johnson Rice 2016 Energy Conference – Apache Corp – slide 39
    WOODFORD PALEOSTRUCTURE / MINERALOGY Tobosa Basin Paleostructure / Clay Volume Storage & Deliverability Parameters Fluid Viscosity Reservoir Temperature Reservoir Pressure System Permeability Clay Content 0 Incipient…
  40. Johnson Rice 2016 Energy Conference – Apache Corp – slide 40
    RESERVOIR CALIBRATION Conventional Log Scale to Pore Space Dimensions Organic and Grain Matrix Distinguish and Quantify Porosity within Organic and Grain Matrix Nano Scale / 3D Micro Scale Micro Scale / 2D Nano Scale / 3D Scanning…
  41. Johnson Rice 2016 Energy Conference – Apache Corp – slide 41
    ALPINE HIGH RESOURCE INTERVAL Quality and Continuity 20 Miles Barnett Barnett Woodford Woodford 42
  42. Johnson Rice 2016 Energy Conference – Apache Corp – slide 42
    Total Well Cost 2,000,000 4,000,000 6,000,000 8,000,000 0 10,000,000 12,000,000 Fasken State 58 - 1H Pilot hole, Logs, Cores Ladybird State 2H Ladybird State 1H Note: Total well cost includes drilling,…
  43. Johnson Rice 2016 Energy Conference – Apache Corp – slide 43
    . Total Well Cost - 500 1,000 1,500 2,000 2,500 3,000 3,500 Fasken State 58- 1H Pilot hole, Logs, Cores Ladybird State 2H Ladybird State 1H Ladybird State 4H Logs Spanish Trail 55 1H Pilot hole, Logs,…
  44. Johnson Rice 2016 Energy Conference – Apache Corp – slide 44
    APACHES TRACK RECORD OF LOW-COST DRILLING Pecos Bend vs. Offset Competitors in Delaware Basin 14,000,000 12,000,000 Apaches total well cost 10,000,000 continues to be lower than our competitors at 29% less 8,000,000 than their…
  45. Johnson Rice 2016 Energy Conference – Apache Corp – slide 45
    ALPINE HIGH AND SCOOP PLAYS Average Production Curves 100000 10000 Gas Rate, MCF/D 1000 100 10 1 10 100 1000 10000 Time, days Mont Blanc-1H Mont Blanc -3H Weissmies Cheyenne Spanish Trail Ortler Fox State 1H…
  46. Johnson Rice 2016 Energy Conference – Apache Corp – slide 46
    ALPINE HIGH PLAY AND SCOOP / NW CANA Well Economics 1000% Alpine High Barnett Overpressure Alpine High Woodford Overpressure Alpine High BTAX ROR Woodford 100% Normal Pressure 10% 1.00 1.20 1.40 1.60 1.80 2.00…
  47. Johnson Rice 2016 Energy Conference – Apache Corp – slide 47
    ALPINE HIGH AND MARCELLUS PLAYS Average Production Curves 100000 10000 Gas Rate, MCF/D 1000 100 10 1 10 100 1000 10000 Time, days Mont Blanc-1H Mont Blanc -3H Weissmies Cheyenne Spanish Trail Ortler Fox State…
  48. Johnson Rice 2016 Energy Conference – Apache Corp – slide 48
    ALPINE HIGH AND UTICA PLAYS Average Production Curves 100000 10000 Gas Rate, MCF/D 1000 100 10 1 10 100 1000 10000 Time, days Mont Blanc -1H Mont Blanc -3H Weissmies Cheyenne Spanish Trail Ortler Fox State 1H…
  49. Johnson Rice 2016 Energy Conference – Apache Corp – slide 49
    ALPINE HIGH AND NORTH AMERICAN PLAYS P-50 Production Curves 100000 P-50 Curves for the following plays: 2,782 Marcellus wells (2014-2016) 1,367 Utica wells (2014-2016) 10000 871 Scoop wells (2014-2016) Gas Rate, MCF/D 1000…

From the store

Browse maps, data & reports in the Shale Experts store