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3Q 2018 Earnings Presentation – Apache Corp

Apache Corp · Oct 31, 2018 · 40 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. 3Q 2018 Earnings Presentation – Apache Corp – slide 1
    THIRD-QUARTER 2018 FINANCIAL & OPERATIONAL SUPPLEMENT 1
  2. 3Q 2018 Earnings Presentation – Apache Corp – slide 2
    TABLE OF CONTENTS Third-Quarter 2018 Key Metrics. 4 Third-Quarter 2018 Financial and Operational Results..... 5 Third-Quarter 2018 Regional Summary...... 15 2018 Guidance Update.. 22 Appendix.. 29 Non-GAAP Reconciliations.....…
  3. 3Q 2018 Earnings Presentation – Apache Corp – slide 3
    THIRD-QUARTER 2018 KEY METRICS Reported Production 476 Mboe/d Adjusted Production(1) 401 Mboe/d Cost Incurred and GTP Capital Investment 1 Billion Upstream Oil and Gas Capital Investment(2) 844 Million Midstream Oil and Gas Capital…
  4. 3Q 2018 Earnings Presentation – Apache Corp – slide 4
    3Q18 FINANCIAL AND OPERATIONAL RESULTS 5
  5. 3Q 2018 Earnings Presentation – Apache Corp – slide 5
    WHAT TO EXPECT FROM APACHE IN 2019 Assuming commodity prices in-line with current strip: Upstream capital investment of 3.0 billion Adjusted production at high end of 410-440 Mboe/d guidance range 15% growth in the U.S. and 10%…
  6. 3Q 2018 Earnings Presentation – Apache Corp – slide 6
    3Q 2018 HIGHLIGHTS Net cash from operating activities up 82% year-over-year to 1 billion Strong oil price leverage: 79% of revenue from oil, nearly 70% of oil production received Brent- or Gulf Coast-linked pricing Adjusted production…
  7. 3Q 2018 Earnings Presentation – Apache Corp – slide 7
    UPSTREAM OPERATIONAL HIGHLIGHTS 3Q adjusted total production growth of 13% and Permian oil production growth of 16%, year over year Full-pattern development in the Midland/Delaware basin generating significant cost and productivity…
  8. 3Q 2018 Earnings Presentation – Apache Corp – slide 8
    QUARTERLY OIL & GAS CAPITAL INVESTMENT Operating at a Stable and Efficient Activity Level Quarterly Capital Investment (MM) Stabilized Rig Count (33 to 36) 1,000 1) Consistent upstream capital 122 investment level over prior 4…
  9. 3Q 2018 Earnings Presentation – Apache Corp – slide 9
    QUARTERLY PRODUCTION GROWTH Delivering Growth on Stabilized Activity Set Adjusted Production (Mboe/d) Permian Oil Production (Mboe/d) 421 401 390 362 367 354 133 128 134 140 135 Intl 146 95 90 90 85 85 273 288 78 256…
  10. 3Q 2018 Earnings Presentation – Apache Corp – slide 10
    ADJUSTED PRODUCTION RECONCILIATION 3Q 2018 Mboe/d 500 476 450 36 401 400 39 350 300 250 200 150 100 50 - (1) 3Q '18 Reported Egypt Tax Barrels Noncontrolling Interest 3Q '18 Adjusted Production Production US Volumes…
  11. 3Q 2018 Earnings Presentation – Apache Corp – slide 11
    PRODUCTION AND REVENUES BY PRODUCT Highly-Levered to Oil and Liquids Reported Production Oil and Gas Revenue 476 MBOE/D 1.98 Billion 51% 79% Oil Production Oil Revenue Brent Oil WTI Oil NGLs Natural Gas Note: Reported…
  12. 3Q 2018 Earnings Presentation – Apache Corp – slide 12
    OPERATING CASH MARGINS Brent Oil Price Exposure Drives High International Margins Egypt North Sea Permian Other US(2) 80.00 70.00 71 / Boe 60.00 50.00 54 / Boe 49 Per Boe 40.00 45 Per Boe 36 / Boe 30.00 32 / Boe 24 20.00 22 /…
  13. 3Q 2018 Earnings Presentation – Apache Corp – slide 13
    NET DEBT RECONCILIATION 3Q 2018 ( in millions) 9,000 111 101 139 894 8,000 7,610 7,365 1,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Net Debt E&P and GTP Dividends & Share Other (3) Distributions to NCI Cash Flow (2)…
  14. 3Q 2018 Earnings Presentation – Apache Corp – slide 14
    THIRD-QUARTER 2018 REGIONAL SUMMARY 15
  15. 3Q 2018 Earnings Presentation – Apache Corp – slide 15
    THIRD-QUARTER 2018 GLOBAL OPERATIONS GLOBAL KEY STATS Reported Production: 476,255 Boe/d Drilled & Completed Wells*: 75 gross, 68 net Rigs: Avg 33 rigs UNITED STATES STATS Reported Production: 272,406 Boe/d Drilled &…
  16. 3Q 2018 Earnings Presentation – Apache Corp – slide 16
    3Q 2018 PERMIAN REGION SUMMARY Midland Basin PERMIAN KEY STATS THIRD-QUARTER 2018 Reported Production: 222,259 Boe/d Averaged 6 rigs and 2 frac crews in the quarter Drilled & Completed Wells*: 47 gross, 45 net Rigs: Avg 18 rigs…
  17. 3Q 2018 Earnings Presentation – Apache Corp – slide 17
    PERMIAN WELL HIGHLIGHTS Avg 30-Day Avg 30-Day IP Pad / Well Formation Area County Lateral % Oil IP/Well Boepd/1,000 Ft Midland Basin CC 4045 East (3 Wells) Wolfcamp Powell Upton 10,483 1,563 Boe/d 149 75% Latzel 3946 (3 Wells)…
  18. 3Q 2018 Earnings Presentation – Apache Corp – slide 18
    3Q 2018 INTERNATIONAL SUMMARY EGYPT KEY STATS NORTH SEA KEY STATS THIRD-QUARTER 2018 THIRD-QUARTER 2018 Reported Production: 153,163 Boe/d Reported Production: 50,686 Boe/d Drilled & Completed Wells*: 24 gross, 20 net Drilled &…
  19. 3Q 2018 Earnings Presentation – Apache Corp – slide 19
    3Q 2018 INTERNATIONAL WELL HIGHLIGHTS 3Q 2018 Egypt Well Highlights Program Success Rate 30-Day Well Name Basin % Oil Average IP Herunefer W-2 Matruh 3,897 Boe/d 21% Herunefer W-3 Matruh 2,438 Boe/d 12% 83% Ptah 15 Shushan…
  20. 3Q 2018 Earnings Presentation – Apache Corp – slide 20
    IMPACT OF RISING OIL PRICE ON EGYPT PSCS Cash Flow Increases, Adjusted Production Declines Production Stable Gross Production Brent Crude / Cash Flow (Mboe/d) (/Bbl) (/Boe) 400 80 Brent 350 70 Up 58% 334 339 334 342 338 330 300…
  21. 3Q 2018 Earnings Presentation – Apache Corp – slide 21
    2018 GUIDANCE UPDATE 22
  22. 3Q 2018 Earnings Presentation – Apache Corp – slide 22
    ADJUSTED PRODUCTION OUTLOOK 2018 Production Guidance Update (Mboe/d) Annual Quarterly FY 2018 guidance increased to 395 Mboe/d representing 421 13% growth from FY 2017, including 27% growth in the US 401 395 390 4Q18 guidance…
  23. 3Q 2018 Earnings Presentation – Apache Corp – slide 23
    ADJUSTED PRODUCTION OUTLOOK 2018 FY & Quarterly Production Guidance Update (Mboe/d) TOTAL COMPANY 421 401 Establishing 4Q18 guidance of 421 Mboe/d 395 390 Increasing 2018 guidance by 1 Mboe/d to 395 Mboe/d 367 FY18E 1Q18A 2Q18A…
  24. 3Q 2018 Earnings Presentation – Apache Corp – slide 24
    PERMIAN PRODUCTION OUTLOOK 2018 FY & Quarterly Production Guidance Update (Mboe/d) PERMIAN 241 222 Establishing 4Q18 guidance of 241 Mboe/d 212 202 Increasing 2018 guidance by 2 Mboe/d to 212 Mboe/d 183 FY18E 1Q18A 2Q18A 3Q18A…
  25. 3Q 2018 Earnings Presentation – Apache Corp – slide 25
    FY 2018 GUIDANCE Production & Capital (1) Includes exploration and production capital, gathering, transmission, and processing capital, capitalized general and administrative expenses, capitalized interest, and asset retirement…
  26. 3Q 2018 Earnings Presentation – Apache Corp – slide 26
    FY 2018 GUIDANCE Other Income Statement Items (1) Apache adopted a new accounting regulation in 2018 that changed the way certain gathering, transmission and processing (GTP) costs related to natural gas and natural gas liquids are…
  27. 3Q 2018 Earnings Presentation – Apache Corp – slide 27
    4Q 2018 GUIDANCE (1) Includes exploration and production capital, gathering, transmission, and processing capital, capitalized general and administrative expenses, capitalized interest, and asset retirement obligations settled.…
  28. 3Q 2018 Earnings Presentation – Apache Corp – slide 28
    APPENDIX 29
  29. 3Q 2018 Earnings Presentation – Apache Corp – slide 29
    OIL AND GAS CAPITAL INVESTMENT (in millions) 1Q18 (1) 2Q18 (1) 3Q18 (1) E&P and GTP Investment: Permian. 477 490 636 MidCon / Gulf Coast ... 65 24 23 Gulf of Mexico.. 8 19 18 United States.... 550 533 677 Egypt (Apache's…
  30. 3Q 2018 Earnings Presentation – Apache Corp – slide 30
    2018-2019 PERMIAN BASIN GAS POSITIONING Production Flow Risk Price Exposure 2018 2019 2018 2019 Uncommitted Firm Transport Firm Transport Production 9% 8% Other 12% Other Basin Firm 4% Uncommitted Basin Firm Transport Production…
  31. 3Q 2018 Earnings Presentation – Apache Corp – slide 31
    2018-2019 PERMIAN BASIN OIL POSITIONING Production Flow Risk Price Exposure 2018 2019 2018 2019 Basis Hedges 4% West Basis West Texas Hedges Texas Sour Sour 24% Term 29% Term Sales 26% GC/Cushing Midland Sales Based Midland…
  32. 3Q 2018 Earnings Presentation – Apache Corp – slide 32
    OPEN COMMODITY DERIVATIVE POSITIONS As of October 31, 2018 33
  33. 3Q 2018 Earnings Presentation – Apache Corp – slide 33
    EGYPT: PRODUCTION DETAIL 2Q 2018 3Q 2018 Liquids Gas Liquids Gas (Bbls/d) (Mcf/d) Boe/d (Bbls/d) (Mcf/d) Boe/d Gross Production 208,015 801,727 341,636 210,050 766,128 337,738 Reported Production 97,312 340,991 154,144 97,882 331,681…
  34. 3Q 2018 Earnings Presentation – Apache Corp – slide 34
    NON-GAAP RECONCILIATIONS 36
  35. 3Q 2018 Earnings Presentation – Apache Corp – slide 35
    NON-GAAP RECONCILIATION Adjusted Earnings Reconciliation of Income Attributable to Common Stock to Adjusted Earnings Our presentation of adjusted earnings and adjusted earnings per share are non-GAAP measures because they exclude the…
  36. 3Q 2018 Earnings Presentation – Apache Corp – slide 36
    NON-GAAP RECONCILIATION Adjusted EBITDAX Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDAX Management believes EBITDAX, or earnings before income tax expense, interest expense, depreciation, amortization and…
  37. 3Q 2018 Earnings Presentation – Apache Corp – slide 37
    NON-GAAP RECONCILIATION Regional Cash Flows Reconciliation of Net Cash Provided by Operating Activities to Cash Flows from Continuing Operations before Changes in Operating Assets and Liabilities Cash flows from continuing operations…
  38. 3Q 2018 Earnings Presentation – Apache Corp – slide 38
    NON-GAAP RECONCILIATION Cash Flow From Operations Before Changes in Operating Assets and Liabilities Reconciliation of Net Cash Provided by Operating Activities to Cash Flows from Operations before Changes in Operating Assets and…
  39. 3Q 2018 Earnings Presentation – Apache Corp – slide 39
    NON-GAAP RECONCILIATION Net Debt Reconciliation of Debt to Net Debt Net debt, or outstanding debt obligations less cash and cash equivalents, is a non-GAAP financial measure. Management uses net debt as a measure of the Company's…
  40. 3Q 2018 Earnings Presentation – Apache Corp – slide 40
    NON-GAAP RECONCILIATION Oil and Gas Capital Investment Reconciliation of Costs Incurred and GTP Capital Investments to Oil and Gas Capital Investment Management believes the presentation of oil and gas capital investments is useful for…

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