MAY 2017 MARKETING SOCIETE GENERALE SAN FRANCISCO LOS ANGELES KANSAS CITY
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 public equity issuance or dividend cut Maintained credit rating and cash position Protect…
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…
2017 CAPITAL PRIORITIES Permian Focused Investment 3.1 Bn Capital Program Highlights Permian Basin 5+ rig program in Midland Basin (63% of budget) 4 to 6 rig program at Alpine High Egypt: 10 rig program, 90-100 wells…
NORTH AMERICA PRODUCTION OUTLOOK 2017 Quarterly Guidance Update (Mboe/d) First gas at Alpine High midstream two months Unchanged ahead of schedule 2Q17: raised lower-end by 4 Mboe/d and upper-end by 2 Mboe/d 379 Added 3Q17 guidance…
INTERNATIONAL PRODUCTION OUTLOOK 2017 Quarterly Guidance Update (Mboe/d) Added 3Q17 guidance Unchanged 2017 guidance unchanged 164 156 158 147 141 154 146 146 136 1Q17A 2Q17E 3Q17E 4Q17E 4Q18E Note: Production adjusted…
APACHE PRODUCTION OUTLOOK 2017 Quarterly Guidance Update (Mboe/d) 2Q17 and 4Q17 guidance raised as a result of North Unchanged America increase Added 3Q17 guidance 537 485 455 424 429 398 386 404 376 1Q17A 2Q17E…
REGIONAL REGIONAL PRODUCTION PRODUCTION PROFILE PROFILE Leverage Leverageto toPermian PermianisisExpanding Expanding 4Q16 4Q18E Midland/ Delaware Basins International 21% International 38% Midland/ 36% CBP & 55%…
PERMIAN BASIN 11
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)…
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…
ALPINE HIGH 14
ALPINE HIGH OVERVIEW Commenced optimization phase Delineating all five stratigraphic zones within oil and wet gas windows First phase of midstream facilities online 5/3/17, under budget and ahead of schedule Implementing product…
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…
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…
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…
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 25
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 27
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…
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…
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 EGYPT PRODUCTION HISTORY Apache Egypts Gross Production History (Mboe/d) 400 Stable Gross Production 350 300 250 200 150 100 50 -- 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011…
APACHE SURINAME 1.8 Million Net Acres on Two Blocks Proprietary 3-D seismic surveys over both blocks 35
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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