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November 2018 Corporate Presentation – Apache Corp

Apache Corp · Nov 12, 2018 · 49 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. November 2018 Corporate Presentation – Apache Corp – slide 1
    Building for the Future NOVEMBER MARKETING 1
  2. November 2018 Corporate Presentation – Apache Corp – slide 2
    TABLE OF CONTENTS Apache Overview Portfolio Review Permian Basin Alpine High / Altus Midstream International 3Q18 Highlights & 2019 Preview Guidance Appendix 3
  3. November 2018 Corporate Presentation – Apache Corp – slide 3
    APACHE TRANSFORMATION Focusing the Portfolio, Growing the Permian, Improving Returns Current Portfolio 2014 3Q 2018 Total Production (Reported)(1) 647 Mboe/d 476 Mboe/d Permian Production 159 Mboe/d 222 Mboe/d US / Intl Production…
  4. November 2018 Corporate Presentation – Apache Corp – slide 4
    APACHE TODAY BALANCED, RETURNS-FOCUSED PORTFOLIO On Track to Achieve Long-Term, Sustainable Double-Digit ROCE Top-tier Permian Basin position delivering strong growth and returns Robust free-cash-flow generating assets in Egypt &…
  5. November 2018 Corporate Presentation – Apache Corp – slide 5
    A LEADER IN ESG ENGAGEMENT AND SUSTAINABILITY REPORTING DISCLOSING THE FACTS 1 tCO2e/Mboe = metric tons of carbon dioxide equivalent per thousands of barrels of oil equivalent 4 Workforce TRIR (Total Recordable Incident Rate)…
  6. November 2018 Corporate Presentation – Apache Corp – slide 6
    PORTFOLIO REVIEW 7
  7. November 2018 Corporate Presentation – Apache Corp – slide 7
    PERMIAN BASIN Returns-Focused Growth Strong production growth with flat rig count Efficiencies driving shorter cycle times and lower costs Expanding inventory with strategic testing Upward bias to 2019 guidance Production & Rig…
  8. November 2018 Corporate Presentation – Apache Corp – slide 8
    MIDLAND AND DELAWARE BASIN OIL PRODUCTION Growth to Continue into 2019 Strong well performance Key Focus Areas Increasing efficiencies, multi-well pads / longer laterals Midland & Delaware Basin Oil Production (Mbo/d) Wildfire…
  9. November 2018 Corporate Presentation – Apache Corp – slide 9
    ALPINE HIGH Developing a World-Class Rich Gas Play Alpine High Acreage Map Unprecedented hydrocarbon column 5,000 ft. Vertically stacked oil, rich gas and dry gas fairways Scale 5,000+ locations identified 3 billion bbls / 75 Tcf…
  10. November 2018 Corporate Presentation – Apache Corp – slide 10
    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:…
  11. November 2018 Corporate Presentation – Apache Corp – slide 11
    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…
  12. November 2018 Corporate Presentation – Apache Corp – slide 12
    ALPINE HIGH PLAY EVOLUTION September 2016 November 2018 2020 (Est.) Rig Count 3 8 10 - 11 Cum. Wells Drilled 14 180 425 450 at year-end Cum. Wells on 9 125 350 375 at year-end Production Net Production Nm 55 160 180…
  13. November 2018 Corporate Presentation – Apache Corp – slide 13
    ALTUS MIDSTREAM: TRANSACTION OVERVIEW Newly Formed Pure Play Permian Basin Midstream Company Transaction closed November 9, 2018 (Ticker Symbol: ALTM) Publicly traded C-Corp with 325MM shares outstanding (79% owned by Apache)…
  14. November 2018 Corporate Presentation – Apache Corp – slide 14
    ALTUS MIDSTREAM: GATHERING & PROCESSING OVERVIEW Pipeline Map Current Asset Highlights Rich Gas Processing: 380 MMcf/d of capacity in service Lean Gas Treating / Compression: 400 MMcf/d of capacity in service Gathering Pipelines:…
  15. November 2018 Corporate Presentation – Apache Corp – slide 15
    ALTUS MIDSTREAM: JOINT VENTURE PIPELINES OVERVIEW Pipeline Map Commentary Altus will own options to participate in five joint venture pipelines 15%(1) of KMIs Gulf Coast Express Nat Gas 33%(2) of KMIs Permian Highway 33% of…
  16. November 2018 Corporate Presentation – Apache Corp – slide 16
    ALTUS MIDSTREAM: CONSERVATIVE FINANCIAL PLAN Through the end of 2020, Altus Midstream capital investment estimated at 2.5 billion. Funding sources include: Approximately 625 MM cash at effective date, October 1 Estimated operating…
  17. November 2018 Corporate Presentation – Apache Corp – slide 17
    ALTUS MIDSTREAM: BENEFITS OF TRANSACTION TO APACHE At 9 - 10/share, APAs 79% ownership valued at 2.3 - 2.5 billion Demonstrates Value Equity position to benefit from long-term Alpine High growth plan Maintain control of future Alpine…
  18. November 2018 Corporate Presentation – Apache Corp – slide 18
    EGYPT Preparing for Future Growth Countrys largest oil producer; stable gross production Apache Egypt Acreage: 6.2 million acres Running 12 rigs High-density 3-D seismic program across 4 basins 2.6 million acres; 38% complete…
  19. November 2018 Corporate Presentation – Apache Corp – slide 19
    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…
  20. November 2018 Corporate Presentation – Apache Corp – slide 20
    EGYPT: STATE OF THE ART 3-D Dramatic Improvement in Sub-Surface Imaging 2013 Vintage Seismic 2018 Vintage Seismic 21
  21. November 2018 Corporate Presentation – Apache Corp – slide 21
    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…
  22. November 2018 Corporate Presentation – Apache Corp – slide 22
    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…
  23. November 2018 Corporate Presentation – Apache Corp – slide 23
    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…
  24. November 2018 Corporate Presentation – Apache Corp – slide 24
    3Q HIGHLIGHTS & 2019 PREVIEW 25
  25. November 2018 Corporate Presentation – Apache Corp – slide 25
    3Q 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…
  26. November 2018 Corporate Presentation – Apache Corp – slide 26
    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…
  27. November 2018 Corporate Presentation – Apache Corp – slide 27
    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…
  28. November 2018 Corporate Presentation – Apache Corp – slide 28
    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…
  29. November 2018 Corporate Presentation – Apache Corp – slide 29
    QUARTERLY OIL & GAS CAPITAL INVESTMENT Operating at a Stable and Efficient Activity Level Quarterly Capital Investment (MM) Stabilized Rig Count (33 to 36) 1) Consistent upstream capital 1,000 investment level over prior 4 quarters…
  30. November 2018 Corporate Presentation – Apache Corp – slide 30
    WHAT TO EXPECT FROM APACHE IN 2019 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% growth overall Continue to return capital to shareholders…
  31. November 2018 Corporate Presentation – Apache Corp – slide 31
    CURRENT GUIDANCE 32
  32. November 2018 Corporate Presentation – Apache Corp – slide 32
    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…
  33. November 2018 Corporate Presentation – Apache Corp – slide 33
    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…
  34. November 2018 Corporate Presentation – Apache Corp – slide 34
    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…
  35. November 2018 Corporate Presentation – Apache Corp – slide 35
    APA ADJUSTED PRODUCTION AND RETURNS 2018-2020 Outlook (Mboe/d) 475 - 510 410 - 440 395 350 20% 22% 18% CROIC CROIC CROIC 2017A 2018E 2019E 2020E See Glossary of Referenced Terms in Appendix for a definition of Cash…
  36. November 2018 Corporate Presentation – Apache Corp – slide 36
    PERMIAN PRODUCTION 2018-2020 Outlook (Mboe/d) 315 - 335 245 - 260 212 158 2017A 2018E 2019E 2020E 37
  37. November 2018 Corporate Presentation – Apache Corp – slide 37
    ALPINE HIGH PRODUCTION 2018-2020 Outlook (Mboe/d) 160 - 180 85 85 - 100 44 9 2017A 2018E 2019E 2020E 38
  38. November 2018 Corporate Presentation – Apache Corp – slide 38
    INTL ADJUSTED PRODUCTION 2018-2020 Outlook (Mboe/d) Shallow Decline 144 133 125 140 125 140 2017A 2018E 2019E 2020E Note: Adjusted production excludes Egypt tax barrels and noncontrolling interest. Comprises North Sea and…
  39. November 2018 Corporate Presentation – Apache Corp – slide 39
    APPENDIX 40
  40. November 2018 Corporate Presentation – Apache Corp – slide 40
    ALPINE HIGH: 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…
  41. November 2018 Corporate Presentation – Apache Corp – slide 41
    ALPINE HIGH: STRUCTURAL CROSS SECTION 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…
  42. November 2018 Corporate Presentation – Apache Corp – slide 42
    ALPINE HIGH: 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…
  43. November 2018 Corporate Presentation – Apache Corp – slide 43
    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…
  44. November 2018 Corporate Presentation – Apache Corp – slide 44
    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…
  45. November 2018 Corporate Presentation – Apache Corp – slide 45
    ALPINE HIGH: DOGWOOD SPACING TEST (NOT TO SCALE) WELLBORES COLORED BY BATCH PAD 46
  46. November 2018 Corporate Presentation – Apache Corp – slide 46
    ALPINE HIGH: BLACKFOOT PATTERN & SPACING TEST (NOT TO SCALE) To Be Drilled WELLBORES COLORED BY BATCH PAD 47
  47. November 2018 Corporate Presentation – Apache Corp – slide 47
    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% Basin Firm Other Basin Firm 4% Uncommitted Transport 7%…
  48. November 2018 Corporate Presentation – Apache Corp – slide 48
    2018-2019 PERMIAN BASIN OIL POSITIONING Production Flow Risk Price Exposure 2018 2019 2018 2019 Basis Hedges 4% West West Basis Texas Texas Hedges Sour Sour 24% 26% GC/Cushing Term 29% Term Sales Based Midland Midland…
  49. November 2018 Corporate Presentation – Apache Corp – slide 49
    GLOSSARY OF REFERENCED TERMS Capital Investment Budget: Includes exploration and production capital, gathering, transmission, and processing capital, capitalized general and administrative expenses, capitalized interest and asset…

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