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January 2019 Corporate Presentation – Altus Midstream Co.

Altus Midstream Co. · Jan 12, 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. January 2019 Corporate Presentation – Altus Midstream Co. – slide 1
    Altus Midstream Company January 2019
  2. January 2019 Corporate Presentation – Altus Midstream Co. – slide 2
    Altus Midstream Overview 4
  3. January 2019 Corporate Presentation – Altus Midstream Co. – slide 3
    Altus Midstream Summary Overview Commentary Simplified Structure Kayne Anderson and Apache Corporation formed a new, publicly-traded midstream C-corp Altus Midstream Company Public Apache Corporation (Altus or Altus Midstream) Real…
  4. January 2019 Corporate Presentation – Altus Midstream Co. – slide 4
    New Way to Invest in Midstreamand its in the Permian Sponsor controls production & development Super-system with large contiguous acreage dedication Pure-play Permian Integrated Permian to Gulf Coast midstream value chain JV…
  5. January 2019 Corporate Presentation – Altus Midstream Co. – slide 5
    Investment Merits Independent E&P with 64-year operating history and global footprint Premier E&P Dedicated to long-term development plan for Alpine High Sponsor Transaction achieves Apaches desire to create a fully integrated…
  6. January 2019 Corporate Presentation – Altus Midstream Co. – slide 6
    Apaches Vision for Alpine High Alpine High is a multi-decade growth platform for Apache Resource in place (as of September 2016) of 3 billion barrels of oil and 75 Tcf of gas in Barnett and Woodford formations alone Apache has…
  7. January 2019 Corporate Presentation – Altus Midstream Co. – slide 7
    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: 125 miles in…
  8. January 2019 Corporate Presentation – Altus Midstream Co. – slide 8
    Joint Venture Pipelines Overview Pipeline Map Commentary Altus owns or has the option to participate in five joint venture pipelines 15%(1) of KMIs Gulf Coast Express Nat Gas 27% of KMIs Permian Highway (Option) 33% of EPDs…
  9. January 2019 Corporate Presentation – Altus Midstream Co. – slide 9
    Altus Financial Forecast Altus financial forecast is underpinned by identified sources of growth Majority of growth driven by JV pipelines placed in-service in 2019-2020 For G&P business, 2019-2020 volume is in-line with Apaches…
  10. January 2019 Corporate Presentation – Altus Midstream Co. – slide 10
    Additional Avenues for Growth Strategic Relationship with Apache Third Party Growth Altus has ROFO on water systems at Leverage asset footprint for additional third Alpine High party volumes outside of Apaches Alpine High footprint…
  11. January 2019 Corporate Presentation – Altus Midstream Co. – slide 11
    Alpine High Overview 13
  12. January 2019 Corporate Presentation – Altus Midstream Co. – slide 12
    Alpine High: A World-Class Resource Play Alpine High Acreage Map(1) Unprecedented hydrocarbon column 5,000 feet Vertically stacked oil, rich gas, and lean gas Ward fairways Scale 340,000 contiguous net acres(1) 5,000+ locations…
  13. January 2019 Corporate Presentation – Altus Midstream Co. – slide 13
    Stacked Pay From 13 Landing Zones Parasequences Parasequences 3rd BONE SPRINGS High frequency, rapidly rising and falling sea level 13 environment landing WOLFCAMP zones so far; UNCONFORMITY PENNSYLVANIAN 5,000 vertical…
  14. January 2019 Corporate Presentation – Altus Midstream Co. – slide 14
    Measured Approach to Optimization Apache has taken a very methodical approach so far Focus on delineation, not optimization Delineation phase completion design allows isolation of geologic Delineation / variations Science Short…
  15. January 2019 Corporate Presentation – Altus Midstream Co. – slide 15
    Alpine High: Transitioning to Full-field Development Apaches methodical approach to developing Alpine High 2014 - 2016 2016 - 2017 2018 and Beyond concept testing and confirmation + Formulation of concept, Areal and vertical…
  16. January 2019 Corporate Presentation – Altus Midstream Co. – slide 16
    Alpine High: Significant Production Ramp Underway Key Statistics Averaged 8 rigs and 2 frac crews in 3Q 2018 More than 90 wells expected to be placed on production in 2018 Total during 2018 is nearly double the amount placed…
  17. January 2019 Corporate Presentation – Altus Midstream Co. – slide 17
    Alpine High: Attractive Rich Gas Economics Representative economics for rich gas wells are fully burdened (4,400 lateral); optimized development should enhance returns Typical Well Upper Range Well EUR (Bcfe) 9 - 15 EUR (Bcfe) 16 -…
  18. January 2019 Corporate Presentation – Altus Midstream Co. – slide 18
    Alpine High: Premium Capital Efficiency Typical Well Upper Range Well /BOE Top-tier recycle ratios highlight APAs ability to generate cash and re-invest 30 30 580% recycle 24.78 10.49 433% ratio 25 recycle 25 ratio 62.75 OIL…
  19. January 2019 Corporate Presentation – Altus Midstream Co. – slide 19
    Alpine High Evolution September 2016 November 2018(1) 2020(1) Rig Count 3 8 10 - 11 Total Wells 14 180 425 450 at year-end Drilled Total Wells on 9 125 350 375 at year-end Production Net Production Nm 55 160 180 (Mboe/d)…
  20. January 2019 Corporate Presentation – Altus Midstream Co. – slide 20
    Financial Overview 22
  21. January 2019 Corporate Presentation – Altus Midstream Co. – slide 21
    Financial Philosophy Altus Midstreams simple structure is a key point of differentiation vs. its midstream peers No debt and undrawn revolver provide strong liquidity No incentive distribution rights The Company has 625 million…
  22. January 2019 Corporate Presentation – Altus Midstream Co. – slide 22
    Financial Plan & Valuation Commentary Valuation & Projected Leverage Ratio Conservative Financial Plan Equity Value 2,785 Plus: Debt No debt at closing with run-rate leverage ratio Less: Cash (625) of less than 3x by year-end 2020…
  23. January 2019 Corporate Presentation – Altus Midstream Co. – slide 23
    Financial Flexibility Revolving Credit Facility At closing, Altus entered into a five year revolving credit facility with flexible terms and competitive pricing including two one-year extension options 450 MM available during Initial…
  24. January 2019 Corporate Presentation – Altus Midstream Co. – slide 24
    Financial Guidance Altus Midstream Gathered Volumes(1) Altus Midstream Growth Capex(2) (MMcf/d) ( in millions) % Attributable to JV Pipelines 1,470 - 1,800 35% - 40% 75% - 85% 40% - 50% 0% 1,450 - 1,750 1,030 - 1,260 600 -…
  25. January 2019 Corporate Presentation – Altus Midstream Co. – slide 25
    Appendix 27
  26. January 2019 Corporate Presentation – Altus Midstream Co. – slide 26
    Details on Joint Venture Pipelines Gulf Coast Permian Salt Creek Shin Oak EPIC Crude Express Highway NGL Line Product Natural Gas Natural Gas NGL NGL Crude Operator Kinder Morgan Kinder Morgan Enterprise Products ARM EPIC…
  27. January 2019 Corporate Presentation – Altus Midstream Co. – slide 27
    Altus Midstream Agreements with Apache The area of dedication encompasses a total of 540,000 gross acres (as denoted by the red outline) Reeves Includes existing Apache acreage and future acreage acquired by Apache(1)…
  28. January 2019 Corporate Presentation – Altus Midstream Co. – slide 28
    Forecast Key Assumptions Effective Date for transaction closing of September 30, 2018 Financing plan does not include future issuances of common equity No dividend expected to be paid through 2020 Altus gathering and processing…
  29. January 2019 Corporate Presentation – Altus Midstream Co. – slide 29
    Alpine High Takeaway Apache has contracted takeaway capacity (through a combination of volume commitments and acreage/plant dedications) from Altus Midstreams infrastructure Provides flow assurance to liquid markets at attractive…
  30. January 2019 Corporate Presentation – Altus Midstream Co. – slide 30
    Description of Earn-Out Consideration In addition to the 257 million shares issued to Apache at closing, Apache can potentially be issued 37.5 million additional shares in Altus if certain thresholds are met (the Earn-Out Shares)…

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