February 14, 2017 JOHN CHRISTMANN, CEO & PRESIDENT
AGENDA Corporate Overview Permian Basin Review Alpine High Update Strategic Overview New Wells & Learnings Midstream 3
APACHE TODAY Strategically diversified portfolio Top-tier Permian Basin position Strong free cash flow generating assets in Egypt and North Sea Focused on long-term, corporate-level returns Rigorous capital allocation process and…
BALANCED PORTFOLIO Free Cash Flow Generators Fund Growth Engine North America Onshore International & Offshore Conventional Canada Anadarko Woodford UK North Sea Montney & SCOOP Duvernay Eagle Ford S. LA Minerals GoM…
2017 CAPITAL PREVIEW Permian Focused Investment Capital Priorities Highlights 4 to 6 rig program Alpine High Continue delineation program Mid-year pipeline connection 5+ rig program Midland/Delaware Increase activity with…
PERMIAN BASIN REVIEW 7
PERMIAN BASIN: APACHES GROWTH ENGINE Central Basin Platform / Midland Basin Delaware Basin NW Shelf Acreage(1) 443,000 net acres 739,000 net acres 392,000 net acres 3Q16 72 Mboe/d 69 Mboe/d 18 Mboe/d Production Rig Count 4…
BUILDING MOMENTUM IN THE MIDLAND BASIN Midland Basin Activity Five primary rig lines and two frac crews Plan to complete 25 wells in 1H17 Strong 30-day IPs from Wolfcamp, Lower and Middle Spraberry Lynch pad Connell pad Recent…
MIDLAND BASIN WELL PERFORMANCE Recent Wells Outperforming Peer Type Curves Wolfcamp(1) Lower Spraberry(1) Mboe Mboe 200 200 APA (3 Wells) Peer A Type Curve 990 Mboe EUR Peer B Type Curve 1,000 Mboe EUR 150 150 100 100 50…
ALPINE HIGH UPDATE 11
ALPINE HIGH World-Class Resource Requires Methodical Delineation 2017 Program Highly scientific and deliberate Designed to collect data for full-scale development (begins in 2018) Focused on long-term field optimization, not…
WHAT WE HAVE CONFIRMED An extensive play fairway Five geologic formations, each with multiple targets, across 5,000 vertical column Segregated hydrocarbon column from dry gas to oil Over-pressured regime across acreage position…
2017 STRATEGIC OBJECTIVES Geographic & stratigraphic delineation Satisfy leasehold retention requirements Install infrastructure on-schedule and on-budget First pipeline connection around mid-year Well optimization Formulate…
ALPINE HIGH DELINEATION STATUS Assessing 5,000 of Column Across 350k+ Gross Acres Geographic Stratigraphic Delineation Delineation Formation Status Status Parasequences Transgressive Bone Spring Delineating from the Bottom…
GEOGRAPHIC DELINEATION OF ALPINE HIGH Ten Woodford Tests Across 55 Mile Fairway Redwood 1H 0.67 PSI/ft Entire fairway is overpressured with higher pressure gradient in the North and South MONT BLANC BLACKHAWK FOX STATE…
STRATIGRAPHIC DELINEATION OF ALPINE HIGH Multi-Zone Completions on Three Separate Pads 9,000 Redwood Pad 5 miles Mont Blanc Pad 14 miles Weissmies Pad Oil window Parasequence Wet gas window Solid Source rock 14,000 Dry gas…
EARLY-STAGE OPTIMIZATION AT ALPINE HIGH Azimuth Test Different azimuths required Lateral Length Test across acreage position Spruce State 1H Spacing Test Excellent well result from first longer lateral test (6,000) Blackhawk State…
ALPINE HIGH WELL UPDATE & NEW LEARNINGS 18 Wells in Progress Since 3Q16 Conference Call Confirmed hydrocarbon column and Woodford productivity in southern portion of play Confirmed over-pressure gradient in southern portion of play…
ALPINE HIGH NEW TEST WELLS New Test Wells Previously Disclosed Spruce State 1H Redwood 2H REDWOOD MONT BLANC BLACKHAWK FOX STATE Weissmies 3H CHEYENNE Weissmies 5H WEISSMIES SPANISH TRAIL ORTLER King Hidalgo…
KING HIDALGO 9H Middle Woodford Target: 13,200 TVD / 3,388 Treated Lateral Maturity Window Wet Gas Strategic Geographic delineation IP Gas (MMcf/d) 3.4 Intent Optimization (azimuth test) IP Oil (Bo/d) 24 API Gravity 47 Flowing…
SPRUCE STATE 1H Barnett Target: 13,350 TVD / 6,000 Treated Lateral Strategic Optimization (lateral length test) Maturity Window Dry Gas Intent Geographic delineation Current Gas Rate (MMcf/d) 17.7 BTU 980 Flowing through casing…
WEISSMIES 3H Upper Woodford Target: 10,800 TVD / 3,975 Treated Lateral Maturity Window Wet Gas Strategic IP Gas (MMcf/d) 5.3 Stratigraphic testing Intent IP Oil (Bo/d) 180 API Gravity 54 Status On gas lift BTU 1,400 Daily…
WEISSMIES 5H Barnett Target: 10,230 TVD / 2,630 Treated Lateral Maturity Window Wet Gas Strategic IP Gas (MMcf/d) 2.4 Stratigraphic testing Intent IP Oil (Bo/d) 150 API Gravity 48 Status Short lateral on gas lift BTU 1,440…
REDWOOD 2H Penn Target: 12,950 TVD / 4,292 Treated Lateral Strategic Stratigraphic testing deep Penn Maturity Window Dry Gas Intent IP Gas (MMcf/d) 5.1 Flowing up casing (23% load BTU 1,000 Status recovery) Daily Production…
ALPINE HIGH MIDSTREAM & MARKETING Multiple Options with Attractive Access Anticipate 500 mm capex in each of 2017 and 2018 3+ Bcf/d available takeaway capacity at nearby connection points Three northern connection options One southern…
ALPINE HIGH IS AN ENORMOUS HYDROCARBON SYSTEM Like most major discoveries, Alpine High is getting larger with incremental data Highly economic wet gas play now confirmed across 55-mile fairway Location count increasing significantly,…
APPENDIX 28
ALPINE HIGH: ACTIVITY PROGRESSION Systematic Approach to Delineating Vast Resource Play 2015/2016 2016 Current 1H17 14 well tests 18 wells in progress 9 disclosed 9/7/16 5 new well tests Activity Concept testing 2 disclosed 11/3/16 7…
ALPINE HIGH: PREVIOUSLY DISCLOSED WELLS Disclosed on 9/7/16 and 11/3/16 24-Hour IP Rates Gross Treated Gas Oil Well Name Target Zone Depth Lateral Length (Mcf/d) (bbl/d) Blackhawk 1H Woodford 10,505 5,234 5,344 224 Cheyenne 1H…
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…
PALEOGEOGRAPHIC RECONSTRUCTION Woodford Time Same geologic age as Arkoma Woodford and SCOOP / STACK Similar depositional environment 32
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…
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…
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…
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…
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