March 27, 2017 SCOTIA HOWARD WEIL 2017 ENERGY CONFERENCE JOHN CHRISTMANN, CEO & PRESIDENT
INVESTMENT HIGHLIGHTS 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…
APACHES APPROACH Spent within cash flow in 2016 Conservative Budgeting 50/bbl oil price assumption in 2017 and Disciplined Spending No equity issuance or dividend cut Maintained credit rating and cash position Protect Financial…
2017 CAPITAL PRIORITIES Permian Focused Investment 3.1 Bn Capital Program Highlights 5+ rig program in Midland Basin Permian Basin 4 to 6 rig program at Alpine High (63% of budget) Installation of pipeline and facilities…
APACHE PRODUCTION OUTLOOK (MBOE/D) 537 485 455 421 425 384 372 4Q16A 2Q17E 4Q17E 4Q18E Note: Adjusted production. 6
EGYPT AND NORTH SEA Invest to Sustain Long-Term Free Cash Flow Generation International Guidance (Mboe/d) Flat Production Profile Underpinned by track record of 164 exploration success 160 158 141 154 146 Two new concessions in…
NORTH AMERICA Permian Basin To Drive Production Increases North America Guidance (Mboe/d) 70% of 2017 total budget 379 Capital directed primarily to 339 Permian 291 261 243 271 Activity focused on higher 236 margin plays…
MIDLAND/DELAWARE BASINS Apaches Growth Engine Midland/Delaware Guidance (Mboe/d) 230 85% of North American budget in 2017 200 Alpine High first gas mid-2017 135 Leverage significantly improved 125 well results in Midland Basin…
REGIONAL PRODUCTION PROFILE Leverage to Permian is Expanding 4Q16 4Q18 Midland/ Delaware Basins International 21% International 38% Midland/ 36% CBP & 55% Delaware Basins Permian Other Permian Permian 15% Other North…
CURRENT FOCUS Commenced optimization phase Delineating all five stratigraphic zones within oil and wet gas windows Midstream facility installation (mid-year startup) Implementing product marketing strategy, contracting with end…
DELINEATION STATUS 16 WELLS SHUT-IN, AWAITING INFRASTRUCTURE All but two wells targeted the source rock interval (Penn, Barnett, Woodford) 6 WELLS IN FLOWBACK / TESTING Geologic mapping of 10 WELLS DRILLING, COMPLETING, OR…
SOURCE ROCK INTERVAL DIFFERENTIATES ALPINE HIGH 3rd Bone Springs / High frequency, Wolfcamp rapidly rising and falling sea level environment UNCONFORMITY PENNSYLVANIAN Tranquil marine Source Rock BARNETT…
ALPINE HIGH SOURCE ROCK INTERVAL Woodford, Barnett and Pennsylvanian Oil Apache is targeting a 1,600 thick 8,500 source rock interval at varying depths between 8,500-13,500 Majority of source rock is situated within the wet gas…
ALPINE HIGH DELINEATION Source Rock Present at Varying Depths Across Alpine High Redwood Mont Blanc Weissmies Hidalgo Unit Unit Unit Unit 8,000 Redwood Unit Barnett 10,000 48 API / 1,440 BTU Upper Woodford Mont Blanc Unit 54…
WHAT WE HAVE CONFIRMED AT ALPINE HIGH Alpine High is an over-pressured system 5,000 hydrocarbon column that transitions from oil to dry gas with increasing depth Five geologic formations with multiple landing zones Highly economic…
CONCLUDING THOUGHTS Investing for long-term returns with highly competitive production and cash flow growth per share Conservative budget assumes 50/bbl oil, protected by 2H17 put options on oil production Sustained international…
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 4Q16 67 Mboe/d 65 Mboe/d 17 Mboe/d Production Rig Count 4…
APACHE SURINAME 1.8 Million Net Acres on Two Blocks Proprietary 3-D seismic surveys over both blocks Currently drilling exploration well on Block 53 21
2016 PEER OUTSPEND in millions 102 (280) (280) (483) (575) (540) (753) (824) Average peer outspend of 1bn (1,806) (1,757) (1,944) (2,324) Peer A Peer B Peer C Peer D Peer E Peer F Peer G Peer H Peer I Peer J…
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