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June 2018 Marketing Presentation – Apache Corp

Apache Corp · Jun 5, 2018 · 45 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. June 2018 Marketing Presentation – Apache Corp – slide 1
    Building for the Future
  2. June 2018 Marketing Presentation – Apache Corp – slide 2
    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…
  3. June 2018 Marketing Presentation – Apache Corp – slide 3
    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…
  4. June 2018 Marketing Presentation – Apache Corp – slide 4
    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…
  5. June 2018 Marketing Presentation – Apache Corp – slide 5
    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…
  6. June 2018 Marketing Presentation – Apache Corp – slide 6
    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…
  7. June 2018 Marketing Presentation – Apache Corp – slide 7
    APPENDIX 8
  8. June 2018 Marketing Presentation – Apache Corp – slide 8
    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…
  9. June 2018 Marketing Presentation – Apache Corp – slide 9
    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…
  10. June 2018 Marketing Presentation – Apache Corp – slide 10
    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…
  11. June 2018 Marketing Presentation – Apache Corp – slide 11
    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…
  12. June 2018 Marketing Presentation – Apache Corp – slide 12
    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…
  13. June 2018 Marketing Presentation – Apache Corp – slide 13
    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…
  14. June 2018 Marketing Presentation – Apache Corp – slide 14
    ALPINE HIGH 15
  15. June 2018 Marketing Presentation – Apache Corp – slide 15
    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…
  16. June 2018 Marketing Presentation – Apache Corp – slide 16
    SIGNIFICANT INDUSTRY ACTIVITY INCREASE FOLLOWING ALPINE HIGH ANNOUNCEMENT September 2016 May 2018 WARD CULBERSON REEVES PECOS JEFF DAVIS Drilled/ Drilling Count: 157 Current Permit Count: 63 Total well count:…
  17. June 2018 Marketing Presentation – Apache Corp – slide 17
    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…
  18. June 2018 Marketing Presentation – Apache Corp – slide 18
    STRUCTURAL CROSS SECTION OF ALPINE HIGH NORTHERN FLANK CREST SOUTHERN FLANK Evaporites Transgressive Parasequences 7,500 8,500 OIL 8720 9,500 9210 9420 9130 9700 9760 9925 10820 10215 Transgressive Source…
  19. June 2018 Marketing Presentation – Apache Corp – slide 19
    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…
  20. June 2018 Marketing Presentation – Apache Corp – slide 20
    NORTHERN FLANK DEVELOPMENT EXAMPLE 21
  21. June 2018 Marketing Presentation – Apache Corp – slide 21
    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…
  22. June 2018 Marketing Presentation – Apache Corp – slide 22
    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…
  23. June 2018 Marketing Presentation – Apache Corp – slide 23
    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…
  24. June 2018 Marketing Presentation – Apache Corp – slide 24
    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…
  25. June 2018 Marketing Presentation – Apache Corp – slide 25
    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…
  26. June 2018 Marketing Presentation – Apache Corp – slide 26
    ALPINE HIGH Middle Permian Paleostructure Map Critical Aspects Regional anomaly Stable Devonian shelf Subsiding eastern limb Later thrust of Davis Mountains 10 Miles 27
  27. June 2018 Marketing Presentation – Apache Corp – slide 27
    PALEOGEOGRAPHIC RECONSTRUCTION Woodford Time Same geologic age as Arkoma Woodford and SCOOP / STACK Similar depositional environment 28
  28. June 2018 Marketing Presentation – Apache Corp – slide 28
    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…
  29. June 2018 Marketing Presentation – Apache Corp – slide 29
    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…
  30. June 2018 Marketing Presentation – Apache Corp – slide 30
    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…
  31. June 2018 Marketing Presentation – Apache Corp – slide 31
    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 32
  32. June 2018 Marketing Presentation – Apache Corp – slide 32
    INTERNATIONAL 33
  33. June 2018 Marketing Presentation – Apache Corp – slide 33
    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…
  34. June 2018 Marketing Presentation – Apache Corp – slide 34
    STATE OF THE ART 3-D Dramatic Improvement in Sub-Surface Imaging 2013 Vintage Seismic 2018 Vintage Seismic 35
  35. June 2018 Marketing Presentation – Apache Corp – slide 35
    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…
  36. June 2018 Marketing Presentation – Apache Corp – slide 36
    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…
  37. June 2018 Marketing Presentation – Apache Corp – slide 37
    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…
  38. June 2018 Marketing Presentation – Apache Corp – slide 38
    GUIDANCE 39
  39. June 2018 Marketing Presentation – Apache Corp – slide 39
    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…
  40. June 2018 Marketing Presentation – Apache Corp – slide 40
    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…
  41. June 2018 Marketing Presentation – Apache Corp – slide 41
    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…
  42. June 2018 Marketing Presentation – Apache Corp – slide 42
    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…
  43. June 2018 Marketing Presentation – Apache Corp – slide 43
    PERMIAN PRODUCTION 2018-2020 Outlook (Mboe/d) 315 - 335 245 - 260 195 - 205 158 2017A 2018E 2019E 2020E 44
  44. June 2018 Marketing Presentation – Apache Corp – slide 44
    ALPINE HIGH PRODUCTION 2018-2020 Outlook (Mboe/d) 160-180 85 85 - 100 40 - 50 9 2017A 2018E 2019E 2020E 45
  45. June 2018 Marketing Presentation – Apache Corp – slide 45
    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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