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Goldman Sachs Energy Conference – Apache Corp

Apache Corp · Jan 9, 2019 · 30 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. Goldman Sachs Energy Conference – Apache Corp – slide 1
    GOLDMAN SACHS GLOBAL ENERGY CONFERENCE JANUARY 9, 2019 1
  2. Goldman Sachs Energy Conference – Apache Corp – slide 2
    TABLE OF CONTENTS Apache Review & 2019 Playbook Portfolio Overview Permian Basin Alpine High / Altus Midstream International Guidance Appendix 3
  3. Goldman Sachs Energy Conference – Apache Corp – slide 3
    APACHE REVIEW BALANCED, RETURNS-FOCUSED PORTFOLIO On track to achieve long-term, sustainable double-digit ROCE Top-tier Permian Basin position delivering strong returns & exceeding production targets Robust free-cash-flow generating…
  4. Goldman Sachs Energy Conference – Apache Corp – slide 4
    2019 PLAYBOOK Continue to execute Returns-focused capital allocation: growth is an outcome, not an objective Continuous improvement through technology Control costs Plan proactively and maintain capital flexibility Prepared to…
  5. Goldman Sachs Energy Conference – Apache Corp – slide 5
    PORTFOLIO OVERVIEW 6
  6. Goldman Sachs Energy Conference – Apache Corp – slide 6
    PERMIAN BASIN Stable to lower rig count in 2019 Efficiencies driving shorter cycle times and lower costs Expanding inventory with strategic testing Production & Rig Count 241 240 222 50 202 210 183 40 177 180 161 150 146 30…
  7. Goldman Sachs Energy Conference – Apache Corp – slide 7
    ALPINE HIGH: TRANSITIONING TO FULL-FIELD DEVELOPMENT Apaches methodical approach to developing Alpine High 2014 - 2016 2016 - 2017 2018 and Beyond Formulation of concept, concept testing and confirmation + Areal and vertical…
  8. Goldman Sachs Energy Conference – Apache Corp – slide 8
    ALPINE HIGH PLAY EVOLUTION September 2016 November 2018 2020(1) 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 (Mboe/d)…
  9. Goldman Sachs Energy Conference – Apache Corp – slide 9
    SIGNIFICANT INDUSTRY ACTIVITY INCREASE FOLLOWING ALPINE HIGH ANNOUNCEMENT September 2016 December 2018 WARD CULBERSON REEVES PECOS JEFF DAVIS Drilled/ DrillingCount: Drilled/ Drilling Count: 267267 Current…
  10. Goldman Sachs Energy Conference – Apache Corp – slide 10
    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)…
  11. Goldman Sachs Energy Conference – Apache Corp – slide 11
    ALTUS MIDSTREAM: BENEFITS OF TRANSACTION TO APACHE APAs 79% equity ownership valued at 2 billion Demonstrates Value Equity position to benefit from long-term Alpine High growth plan Maintain control of future Alpine High midstream…
  12. Goldman Sachs Energy Conference – Apache Corp – slide 12
    ALTUS MIDSTREAM: GATHERING & PROCESSING ASSETS 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: 125…
  13. Goldman Sachs Energy Conference – Apache Corp – slide 13
    ALTUS MIDSTREAM: PERMIAN PIPELINE ASSETS Pipelines Expected in Service by YE 2020 Altus owns equity in one Permian pipeline project and options on four other projects 15%(1) of KMIs Gulf Coast Express (GCX) Nat Gas 33%(2) of…
  14. Goldman Sachs Energy Conference – Apache Corp – slide 14
    EGYPT Preparing for Future Growth Countrys largest oil producer; stable gross Apache Egypt Acreage: 6.2 million acres production Averaged 12 rigs in 3Q18 High-density 3-D seismic program across 4 basins 2.6 million acres; 38%…
  15. Goldman Sachs Energy Conference – Apache Corp – slide 15
    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…
  16. Goldman Sachs Energy Conference – Apache Corp – slide 16
    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 Spudding exploration well on Block 1.44 MM acres…
  17. Goldman Sachs Energy Conference – Apache Corp – slide 17
    GUIDANCE (ISSUED 11/1/2018) 18
  18. Goldman Sachs Energy Conference – Apache Corp – slide 18
    ADJUSTED PRODUCTION OUTLOOK Issued: 11/1/2018 2018 FY & Quarterly Production Guidance (Mboe/d) TOTAL COMPANY PERMIAN 421 241 401 222 395 390 212 202 367 183 FY18E 1Q18A 2Q18A 3Q18A 4Q18E FY18E 1Q18A 2Q18A 3Q18A 4Q18E U.S. 288…
  19. Goldman Sachs Energy Conference – Apache Corp – slide 19
    ADJUSTED PRODUCTION OUTLOOK Multi-Year Outlook Issued in Feb18 (Updated on 11/1/2018) 2018 2020 Outlook (Mboe/d) TOTAL COMPANY 475 - 510 PERMIAN 315 - 335 410 - 440 395 350 245 - 260 212 158 2017A 2018E 2019E 2020E 2017A 2018E…
  20. Goldman Sachs Energy Conference – Apache Corp – slide 20
    APPENDIX 21
  21. Goldman Sachs Energy Conference – Apache Corp – slide 21
    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…
  22. Goldman Sachs Energy Conference – Apache Corp – slide 22
    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…
  23. Goldman Sachs Energy Conference – Apache Corp – slide 23
    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…
  24. Goldman Sachs Energy Conference – Apache Corp – slide 24
    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…
  25. Goldman Sachs Energy Conference – Apache Corp – slide 25
    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…
  26. Goldman Sachs Energy Conference – Apache Corp – slide 26
    ALPINE HIGH: BLACKFOOT PATTERN & SPACING TEST (NOT TO SCALE) Drilled & Completing WELLBORES COLORED BY BATCH PAD 27
  27. Goldman Sachs Energy Conference – Apache Corp – slide 27
    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%…
  28. Goldman Sachs Energy Conference – Apache Corp – slide 28
    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…
  29. Goldman Sachs Energy Conference – Apache Corp – slide 29
    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)…
  30. Goldman Sachs Energy Conference – Apache Corp – slide 30
    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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