MAY 30, 2018 JOHN CHRISTMANN, CHIEF EXECUTIVE OFFICER AND PRESIDENT
CREATING LONG-TERM VALUE Disciplined Strategically Balanced Full-Cycle, Corporate- Financial Approach Portfolio Level Returns Focus Preserve dividend and Invest for returns- Maintain rigorous credit rating, reduce focused growth…
APACHE TODAY UNITED STATES Permian driving growth & returns Optionality in SCOOP/STACK & Eagle Ford EGYPT Significant free cash flow preparing for next leg of growth NORTH SEA High margins, high returns, free cash flow…
UNITED STATES Onshore Focus Permian-driven growth & returns United States Onshore 70% of capital budget over next 3 years Optionality outside Permian SCOOP / STACK: 45,000 net acres Eagle Ford: 250,000 net acres 350 - 370…
PERMIAN TRANSPORT Securing Operational Flexibility and Market Optionality Anchor shipper on new oil, Enterprise Shin Oak Cushing NGL, and gas pipelines: Pipeline (33% Equity Option) EPIC oil line: maximum daily quantity of 75,000…
INTERNATIONAL BUSINESSES Investing to Sustain Cash Flow Generation with Future Potential Egypt UK North Sea MEDITERRANEAN SEA Largest oil producer Best-in-class operator Running 14 rigs 3 rigs operating (2 platform, 1…
STRATEGIC OBJECTIVES 2018 AND BEYOND INTERNATIONAL Sustain Free Cash Flow Capacity from Egypt & North Sea ALPINE HIGH Execute Joint Venture for Alpine High Midstream in 2018 Transition to Full-Field Development at Alpine High…
APPENDIX 9
APACHES STRATEGIC APPROACH: 2018-2020 Maintain strong balance sheet; protect capital program Financial Target living within cash flow Discipline Relentless cost focus Expand and high-grade Permian inventory Portfolio Sustain…
LEVERAGING TECHNOLOGY Apaches focus on innovation and harnessing the power of data are driving operational improvements and increased capital efficiencies SIMULTANEOUS EXTENSIVE REMOTE SEISMIC WATER OPERATIONS SOURCES RECYCLING…
PERMIAN BASIN Returns-Focused Growth Midland & Delaware Basins Efficiencies driving shorter cycle times and lower costs Expanding inventory with strategic testing Alpine High Production ramping, well costs decreasing Investing in…
MIDLAND AND DELAWARE BASIN OIL PRODUCTION Quarterly Progression Key Focus Areas Consolidating and accelerating 2015/2016 learnings Increased efficiencies and operating performance Multi-well pads / longer laterals Wildfire Midland…
2018 PERMIAN BASIN GAS POSITIONING Production Flow Risk Price Exposure Firm Firm Uncommitted Transport Transport Production 9% 9% 9% Other Basin 7% Basis EP Perm / Waha Hedges Index Contracts / Dedicated 20% 64% Sales…
2018 PERMIAN BASIN OIL POSITIONING Production Flow Risk Price Exposure West Texas Sour GC/Cushing Term Sales 30% Based 38% 38% Midland Based Diversified 62% Evergreen Sales 32% Term sales backed by customers firm…
ALPINE HIGH 16
ALPINE HIGH: UPSTREAM Developing a World-Class Wet Gas Play Unprecedented hydrocarbon column up to 6,000 ft. Vertically stacked oil, wet gas and dry gas fairways Scale 340,000 contiguous leasehold acres 5,000+ locations identified…
SIGNIFICANT INDUSTRY ACTIVITY INCREASE FOLLOWING ALPINE HIGH ANNOUNCEMENT September 2016 April 2018 WARD CULBERSON REEVES PECOS JEFF DAVIS Drilled/ Drilling Count: 145 Current Permit Count: 56 Total well count:…
DISTINCT SOURCE ROCK AND PARASEQUENCE INTERVALS 3rd BONE SPRINGS Parasequences High frequency, rapidly rising and falling sea level environment WOLFCAMP UNCONFORMITY PENNSYLVANIAN Tranquil marine Source Rock BARNETT…
CURRENT LOCATION COUNT OF 5,000+ Location Distribution Formation Wet Gas Dry Gas Oil Parasequences Transgressive Bone Spring 500+ Wolfcamp Additional Location Potential Additional Location Pennsylvanian Potential Source…
NORTHERN FLANK DEVELOPMENT EXAMPLE 22
ALPINE HIGH: MIDSTREAM Foundational Delaware Basin Midstream Enterprise Cherokee CPF Greenfield, fit-for-purpose system enables optimal wet gas development 815 mm invested through first quarter 2018 Actively working design and…
ACCESS TO SALES LINES WITH 4 BCF PER DAY OF CAPACITY Constructing 70 Miles of 30 Trunkline Through the Play Northern Sales Trunkline segments Connection 1, 2 and 5 in operation today 1 Segments 3 and 4 in service around mid 2018…
WET GAS PLAY: FULLY BURDENED ECONOMICS Development Scenario (4,400 Lateral) Typical Well Upper Range Well Single Well Economic Assumptions: Note: end points shown for EUR, NPV, Product Prices: 50 WTI / 3.00HH / NGL = 60% WTI Mix…
RAMPING A LARGE-SCALE GREENFIELD PLAY 4Q 18 Outlook Today Versus a Year Ago Reservoir and well performance continues to be very strong Proven oil potential Some volume ramp deferred due to less capital and fewer wells in 2017/2018…
RAMPING A LARGE-SCALE GREENFIELD PLAY Comparison of Feb. 17 and Feb. 18 Alpine High Outlook Previous 4Q18 production target shifted to 2H 2019 37% fewer wells online at year-end 2017 than previously expected, 42 versus 70 23% fewer…
ALPINE HIGH Middle Permian Paleostructure Map Critical Aspects Regional anomaly Stable Devonian shelf Subsiding eastern limb Later thrust of Davis Mountains 10 Miles 28
PALEOGEOGRAPHIC RECONSTRUCTION Woodford Time Same geologic age as Arkoma Woodford and SCOOP / STACK Similar depositional environment 29
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…
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…
DIVIDING ALPINE HIGH INTO THREE SETTINGS ALPINE HIGH FAIRWAY 56% of Alpine High acreage Northern Activity driven primarily by lease expiration Flank Over-pressured Initiated parasequence testing 16% of Alpine High acreage…
WATER RATE COMPARISON Alpine High Source Rock Versus Pecos Bend Area 10,000 1,000 Water Rate, BWPD 100 10 1 10 100 1,000 Producing Time, Days Alpine High Water Production Pecos Bend Wolfcamp/Bone Springs 33
INTERNATIONAL 34
EGYPT Preparing for Future Growth New concessions expand acreage Apache Egypt Acreage position by 40 percent (1.6 million acres) MEDITERRANEAN SEA Drilling program expected to commence in the second half of 2018 High-density seismic…
STATE OF THE ART 3-D Dramatic Improvement in Sub-Surface Imaging 2013 Vintage Seismic 2018 Vintage Seismic 36
NORTH SEA High Margins, High Returns, Free Cash Flow Strong leverage to premium Brent crude pricing Multi-year inventory of near-field exploration targets Forties: Oil prone, stable production Beryl: Exploratory upside Garten…
NORTH SEA: GARTEN Large Commercial Discovery in Beryl Area North Sea Beryl Area Garten discovery well encountered more than 700 of net oil pay in Block 9/18a Area-W Recoverable resource is expected to exceed 10 million barrels of…
SURINAME: HIGH IMPACT OIL EXPLORATION Massive acreage blocks near proven oil province Block 58 seismic processing complete, identifying and ranking prospects Block 58 Block 53 Exploration well to spud on Block 1.44 MM acres 0.87…
GUIDANCE 40
UNITED STATES PRODUCTION OUTLOOK 2018 Production Guidance Update (Mboe/d) Raised lower end by 5 Mboe/d 1Q18 exceeded guidance by 9 Mboe/d (+4%) Raised upper end by 3 Mboe/d Established 2Q18 guidance of 248 Mboe/d 258 248 250…
INTERNATIONAL PRODUCTION OUTLOOK 2018 Production Guidance Update (Mboe/d) 1Q18 in line with guidance Unchanged Established 2Q18 guidance of 135 Mboe/d 140 135 135 130 FY18E 1Q18A 2Q18E Note: Includes adjusted production…
APA ADJUSTED PRODUCTION OUTLOOK 2018 Production Guidance Update (Mboe/d) Raised lower end by 5 Mboe/d 1Q18 exceeded guidance by 9 Mboe/d (+3%) Raised upper end by 3 Mboe/d Established 2Q18 guidance of 383 Mboe/d 398 383 380…
APA ADJUSTED PRODUCTION AND RETURNS 2018-2020 Outlook (Mboe/d) 475 - 510 410 - 440 380 - 398 350 20% 22% 18% CROIC CROIC CROIC 2017A 2018E 2019E 2020E See Glossary of Referenced Terms in Appendix for a definition of…
PERMIAN PRODUCTION 2018-2020 Outlook (Mboe/d) 315 - 335 245 - 260 195 - 205 158 2017A 2018E 2019E 2020E 45
ALPINE HIGH PRODUCTION 2018-2020 Outlook (Mboe/d) 160-180 85 85 - 100 40 - 50 9 2017A 2018E 2019E 2020E 46
INTL ADJUSTED PRODUCTION 2018-2020 Outlook (Mboe/d) Shallow Decline 144 130 - 140 125 - 140 125 140 2017A 2018E 2019E 2020E Note: Adjusted production excludes Egypt tax barrels and noncontrolling interest. Comprises North Sea…
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