APACHE OVERVIEW 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…
APACHE DIFFERENTIATORS AND CATALYSTS Growth Robust production growth projected in 2018 with minimal capital increase Midland Basin oil growth beginning in 3Q; transitioning to optimization at Momentum Alpine High Assurance…
APACHE PRODUCTION OUTLOOK Poised to Deliver Strong, Returns-Focused Growth 537 485 455 424 429 398 386 404 376 1Q17A 2Q17E 3Q17E 4Q17E 4Q18E Note: Production measured in Mboe/d, adjusted for Egypt noncontrolling…
PERMIAN BASIN 6
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 FY16 77 Mboe/d 65 Mboe/d 19 Mboe/d Production (% Oil/NGL/Gas)…
REGIONAL REGIONAL PRODUCTION PRODUCTION PROFILE PROFILE Leverage Leverageto toPermian PermianisisExpanding Expanding 4Q16 4Q18E Midland/ Delaware Basins International 21% International 38% Midland/ 36% CBP & 55%…
NORTH AMERICA PRODUCTION OUTLOOK Permian Driven Growth 379 339 291 268 251 275 245 258 240 1Q17A 2Q17E 3Q17E 4Q17E 4Q18E Note: Production measured in Mboe/d, adjusted for divestitures. Includes Permian Basin,…
ALPINE HIGH 10
WHAT WE HAVE CONFIRMED AT ALPINE HIGH Alpine High is an over-pressured system Up to 5,000 hydrocarbon column that transitions from oil to dry gas with increasing depth Five geologic formations with multiple landing zones Highly…
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 OIL SAMPLES Confirms Thermal Maturity Model 3rd Bone Springs Wolfcamp Pennsylvanian Barnett Woodford 13
ALPINE HIGH: THREE RECENT TEST WELLS Disclosed with 1Q17 Earnings on 5/4/17 New Test Wells Previously Disclosed Chinook 101AH (Woodford target) REDWOOD MONT BLANC BLACKHAWK FOX STATE Blackhawk 5H (Barnett target)…
NEW TEST WELL: CHINOOK 101AH Highest Oil Yield To Date in Woodford Woodford Well Comparison (Non-Optimized, Short Laterals) 24-Hour IP Rates Treated Disclosure Lateral Unshrunk Gas Oil Oil:Gas Ratio Well Name Date Length Target Zone…
NEW TEST WELL: BLACKHAWK 5H Highest Oil Yield To Date in Barnett Barnett Well Comparison (Non-Optimized, Short Laterals) 24-Hour IP Rates Treated Disclosure Lateral Unshrunk Gas Oil Oil:Gas Ratio Well Name Date Length Target Zone…
NEW TEST WELL: KING HIDALGO 3H Successful Azimuth Test King Hidalgo 9H King Hidalgo 3H (abbreviated lateral) (standard lateral length for test well) Disclosure Date Feb 2016 Disclosure Date May 2017 Lateral Length 3,388 Lateral Length…
CURRENT FOCUS Transitioning to optimization phase Delineating all five stratigraphic zones within oil and wet gas windows Installing Midstream facilities (initial gas sales occurred May 3) Implementing product marketing strategy,…
INTERNATIONAL 19
INTERNATIONAL SUMMARY Strategic Position Within Apaches Portfolio Egypt and North Sea are an important part of Apaches diversified portfolio Cash-flow generators fueled by sustained, steady performance Deep inventory in producing…
APACHE EGYPT 4.1 Million Gross Acres Across Multiple Basins Matruh basin Alamein basin Faghur basin Shushan basin Gulf of Suez Abu Gharadig basin Gindi/Beni Suef Note: as of March 15, 2017 21
2016 BID ROUND SUCCESS Expands Apaches Acreage Base by Nearly 40% Awarded two concessions comprising nearly 1.6 million acres Anticipate mid-2017 signature Favorable PSC terms underpin ability to pursue at current or lower prices…
APACHE NORTH SEA Multi-year Drilling Inventory to Sustain Production Operating two platform rigs at Forties and Beryl, respectively Recently signed two-year contract on Ocean Patriot semi-submersible rig with large dayrate…
INTERNATIONAL PRODUCTION OUTLOOK Strong Free Cash Flow Generating Assets Flat Production Profile 164 156 158 147 141 154 146 146 136 1Q17A 2Q17E 3Q17E 4Q17E 4Q18E Note: Production measured in Mboe/d, adjusted for Egypt…
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…
APPENDIX 26
BALANCED PORTFOLIO Free Cash Flow Generators Fund Growth Engine North America International Conventional Canada Anadarko Woodford UK North Sea Montney & SCOOP Duvernay Eagle Ford S. LA Minerals Suriname GoM Egypt…
BUILDING MOMENTUM IN THE MIDLAND BASIN Midland Basin Activity Operations focused on pad drilling of the Wolfcamp and Spraberry shale formations Six primary rig lines and two frac crews 9-well pad in Azalea and 6-well pad in Powell…
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 30
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…
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…
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…
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…
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…
APACHE SURINAME 1.8 Million Net Acres on Two Blocks Proprietary 3-D seismic surveys over both blocks 37
1Q 2017 OPERATING CASH MARGINS Egypt Egypt North NorthSea Sea Permian Permian Other OtherNA NA 60.00 50.00 51 / Boe 40.00 39 / Boe 37 33 / Boe 30.00 Per Boe 33 20 24 / Boe 20.00 Per Boe Per Boe 13 14 / Boe 13 /…
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