CREDIT SUISSE ENERGY SUMMIT JOHN CHRISTMANN, CEO & PRESIDENT FEBRUARY 11, 2019 1
TABLE OF CONTENTS Apache Overview 2019 Capital Budget & Production Update Portfolio Overview Permian Basin Alpine High International Apache Investment Proposition Appendix 3
APACHE OVERVIEW BALANCED, RETURNS-FOCUSED PORTFOLIO Top-tier Permian Basin position delivering strong returns & production growth Robust free-cash-flow generating assets in Egypt, North Sea & Permian Central Basin Platform…
2019 CAPITAL BUDGET PRIORITIES 3.4 Billion Plan for cash flow neutrality 350 After dividend and NCI payments 2.4 Billion 2,390 Maintain flexibility to reduce further 1,790 Commit to return 50%+ of free cash flow to…
ADJUSTED PRODUCTION OUTLOOK: 2019 & BEYOND 2019 2020+ Projected to be near midpoint of Sustained growth in a 50 - 55 WTI previously disclosed full-year price environment guidance range of 410 440 Mboe/d Driven primarily by Permian…
PORTFOLIO OVERVIEW 7
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…
MIDLAND AND DELAWARE BASIN Driving Performance for Permian Basin Growth Southern Midland Basin production efficiency increased Key Focus Areas 12% on a per lateral foot basis from 2016 to 2018 New completion designs in Midland led to…
ALPINE HIGH Rich Gas Development Underway Formulation and Areal and Optimization and Focused Near-Term confirmation vertical transition to full Development and Setting Up of concept delineation field development the Long-Term 2014…
EGYPT Setting the Stage for Growth Apache Egypt Acreage: 6.2 million acres Large-scale seismic acquisition 50% complete across legacy and new concessions Identified more than 40 new leads thus far and spud first well on West…
NORTH SEA High Margins, High Returns, Free Cash Flow Apache North Sea Acreage 3 rig program, stable capital investment level 2019 production increase expected YoY Water flood management at Forties successfully mitigating decline…
NORTH SEA Garten Update Garten-1 Well Announced discovery in March 2018 (APA 100% WI) Garten-1 Brought online in December, now producing from 3 commingled zones Cumulative production of nearly 1 million barrels of oil & 1 Bcf of…
SURINAME: HIGH-IMPACT OIL EXPLORATION Block 58 is a 1.4 MM acre block on Ranger trend with a proven oil system Stabroek Area Exxon Discoveries Suriname 100% Apache owned Offshore Pacora 3-D seismic surveys & processing Payara…
APACHES INVESTMENT PROPOSITION Financial discipline, diverse portfolio & exploration upside Sustainable production & cash flow growth Cash flow neutral to FCF positive at current strip Commitment to return 50%+ of FCF to…
APPENDIX 17
2019 CAPITAL BUDGET PRICE ASSUMPTIONS 2019E WTI 53.00 Benchmarks Brent 61.00 NYMEX Henry Hub 2.80 NBP Gas 7.00 NGLs 50% of WTI before T&F fees WTI Midland (2.50) Diffs Waha (1.30) Permian (1.30) 18
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…
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…
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…
ALPINE HIGH: BLACKFOOT PATTERN & SPACING TEST (NOT TO SCALE) Drilled & Completing WELLBORES COLORED BY BATCH PAD 23
ALTUS MIDSTREAM: OVERVIEW Pure Play Permian Basin Company With Diversified G&P and Pipeline Assets Publicly traded C-Corp with 325MM shares outstanding (79% owned by Apache) 2.7 Billion market cap / 625MM in cash and zero debt, as…
ALTUS MIDSTREAM: PERMIAN PIPELINE ASSETS Pipelines Expected in Service by YE 2020 Altus owns equity in two Permian pipeline projects and options on three other projects 15%(1) of KMIs Gulf Coast Express (GCX) Nat Gas 27% of…
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)…
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