ESG PERFORMANCE SNAPSHOT Apache considers how its operations affect the planet and seeks to reduce impacts at every stage of our business. METHANE EMISSIONS WATER WITHDRAWALS WORKFORCE SAFETY By 2025, Apache is committed to In 2017, 98…
APACHE TRANSFORMATION Focused Portfolio; Financial Discipline Current Portfolio 2014 2Q 2018 Total Production (Reported) 647 Mboe/d 464 Mboe/d Permian Production 159 Mboe/d 202 Mboe/d US / Intl Production Mix (Reported) 45% / 55%…
APACHE TODAY Balanced & Returns-Focused Portfolio Top-tier Permian Basin position delivering strong returns and growth Robust free-cash-flow generating assets in Egypt & North Sea Differential exploration capabilities and upside…
ALTUS MIDSTREAM TRANSACTION OVERVIEW Fully Integrated Permian Basin Midstream Company Premier upstream E&P and leading midstream investor Market capitalization of 3.5 billion at formation 900+ million of cash to pre-fund Alpine…
BENEFITS OF ALTUS MIDSTREAM TRANSACTION TO APACHE APAs 71% equity in Altus Midstream initially valued at 2.5 billion Demonstrates Value Equity ownership to benefit from long-term Alpine High growth Maintain control of future Alpine…
PORTFOLIO REVIEW 9
PERMIAN BASIN Returns-Focused Growth Efficiencies driving shorter cycle times and lower costs Expanding inventory with strategic testing Upward bias to 2019 guidance Strong production growth with flat rig count Production & Rig…
MIDLAND AND DELAWARE BASIN OIL PRODUCTION Oil Growth Leading the Way Strong well performance Key Focus Areas Increasing efficiencies, multi-well pads / longer laterals Midland & Delaware Basin Oil Production (Mbo/d) Wildfire Pecos…
ALPINE HIGH PLAY EVOLUTION September 2016 September 2018 2020 (Est.) Rig Count 3 7 10 - 11 Cum. Wells Drilled 14 162 425 450 at year-end Cum. Wells on 9 111 350 375 at year-end Production Net Production Nm 54 (July Exit Rate)…
ALPINE HIGH: TRANSITIONING TO FULL-FIELD DEVELOPMENT Apaches long-term methodical approach to developing Alpine High 2014 - 2016 2016 - 2017 2018 and Beyond Formulation of concept, concept testing and confirmation + Areal and…
ALPINE HIGH: SIGNIFICANT PRODUCTION RAMP UNDERWAY Key Statistics Production averaged 32 Mboe/d in 2Q, exited July at 54 Mboe/d Average 8 rigs and place 92 wells on production in 2018 2018 tracking to 45 Mboe/d guidance (midpoint of…
ALPINE HIGH: ATTRACTIVE RICH GAS ECONOMICS Representative fully burdened economics for rich gas wells in a development scenario (4,400 lateral) Typical Well Upper Range Well EUR (Bcfe) 9 - 15 EUR (Bcfe) 16 - 21 Well Cost (MM) 4 - 6…
ALPINE HIGH: PREMIUM CAPITAL EFFICIENCY Top-tier recycle ratios highlight ability to generate cash and re-invest Typical Well Upper Range Well /BOE 30 30 580% recycle 433% ratio 24.78 10.49 25 recycle 25 OIL ratio 62.75 21.16…
EGYPT Preparing for Future Growth Countrys largest oil producer; stable gross Apache Egypt Acreage: 6.2 million acres production Running 13 rigs High-density 3-D seismic program across 4 basins 2.6 million acres; 38% complete…
NORTH SEA High Margins, High Returns, Free Cash Flow Apache North Sea Acreage Strong leverage to premium Brent crude pricing Best-in-class operator 3 rigs operating (2 platform, 1 semi-submersible) Improving base oil production…
WHY APACHE NOW Growing Returns & Production Across Portfolio APACHE GLOBAL On Track to Achieve Long-Term, Sustainable Double-Digit ROCE Positioned for Significant Production Growth Within Cash Flow Strong Balance Sheet and Cash…
APPENDIX 20
2018-2019 PERMIAN BASIN GAS POSITIONING Production Flow Risk Price Exposure 2018 2019 2018 2019 Uncommitted Firm Transport Firm Transport Production 9% 8% Other 11% Basin Firm Other Transport Basin Firm 5% Uncommitted 7%…
2018-2019 PERMIAN BASIN OIL POSITIONING Production Flow Risk Price Exposure 2018 2019 2018 2019 Basis Hedges 4% Basis Hedges West West 16% Texas Texas Sour Sour Term GC/Cushing GC/Cushing 30% Term Sales 30% Sales Based…
SIGNIFICANT INDUSTRY ACTIVITY INCREASE FOLLOWING ALPINE HIGH ANNOUNCEMENT September 2016 August 2018 WARD CULBERSON REEVES PECOS JEFF DAVIS Drilled/ Drilling Count: 203 Current Permit Count: 85 Total well count:…
NORTHERN FLANK: DOGWOOD STATE (NOT TO SCALE) WELLBORES COLORED BY BATCH PAD 25
NORTHERN FLANK: BLACKFOOT STATE UNIT (NOT TO SCALE) To Be Drilled WELLBORES COLORED BY BATCH PAD 26
EGYPT: STATE OF THE ART 3-D Dramatic Improvement in Sub-Surface Imaging 2013 Vintage Seismic 2018 Vintage Seismic 27
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…
CURRENT GUIDANCE 30
APA ADJUSTED PRODUCTION OUTLOOK 2018 Production Guidance Update (Mboe/d) Annual Quarterly Updated 2018 guidance to 394 2Q18 exceeded guidance by 7 Mboe/d (+2%) Mboe/d Established 3Q18 guidance of 398 Mboe/d 398 394 390…
UNITED STATES PRODUCTION OUTLOOK 2018 Production Guidance Update (Mboe/d) Annual Quarterly Increased 2018 guidance to 260 2Q18 exceeded guidance by 7 Mboe/d (+3%) Mboe/d Established 3Q18 guidance of 270 Mboe/d 270 260 255…
PERMIAN PRODUCTION OUTLOOK 2018 Production Guidance Update (Mboe/d) Annual Quarterly Increased 2018 guidance to 210 Established 3Q18 guidance of 220 Mboe/d Mboe/d 220 210 202 183 FY18E 1Q18A 2Q18A 3Q18E 33
ALPINE HIGH PRODUCTION OUTLOOK 2018 Production Guidance Update (Mboe/d) Annual Quarterly Updated 2018 guidance to 45 Established 3Q18 guidance of 50 Mboe/d Mboe/d (midpoint of prior range) 50 45 32 26 FY18E 1Q18A 2Q18A…
INTERNATIONAL PRODUCTION OUTLOOK 2018 Production Guidance Update (Mboe/d) Annual Quarterly Updated 2018 guidance to 134 Established 3Q18 guidance of 128 Mboe/d Mboe/d Decrease primarily due to annual maintenance turnaround in…
APA ADJUSTED PRODUCTION AND RETURNS 2018-2020 Outlook (Mboe/d) 475 - 510 410 - 440 394 350 20% 22% 18% CROIC CROIC CROIC 2017A 2018E 2019E 2020E See Glossary of Referenced Terms in Appendix for a definition of Cash…
PERMIAN PRODUCTION 2018-2020 Outlook (Mboe/d) 315 - 335 245 - 260 210 158 2017A 2018E 2019E 2020E 37
ALPINE HIGH PRODUCTION 2018-2020 Outlook (Mboe/d) 160 - 180 85 85 - 100 45 9 2017A 2018E 2019E 2020E 38
INTL ADJUSTED PRODUCTION 2018-2020 Outlook (Mboe/d) Shallow Decline 144 134 125 140 125 140 2017A 2018E 2019E 2020E Note: Adjusted production excludes Egypt tax barrels and noncontrolling interest. Comprises North Sea and…
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