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Barclays Bus Tour Presentation – Apache Corp

Apache Corp · Oct 4, 2013 · 63 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. Barclays Bus Tour Presentation – Apache Corp – slide 1
    BARCLAYS BUS TOUR PRESENTATION October 4, 2013
  2. Barclays Bus Tour Presentation – Apache Corp – slide 2
    TRACK RECORD OF LONG-TERM GROWTH THE EVOLUTION OF APACHES PORTFOLIO N.A. Onshore Liquids MBOE/D, Net Expansion 850 800 Continued International 750 Expansion 700 650 600 550 500 First 450 International Entry 400 350 300…
  3. Barclays Bus Tour Presentation – Apache Corp – slide 3
    THE EVOLUTION OF APACHES PORTFOLIO LIFE CYCLES Beginning End % Time Frame Life Cycle Description (MBOE/D) (MBOE/D) Increase 1993 to 1997 First International Entry 86 170 +98% - Egypt, Canada and Australia 1999 to 2003 Continued…
  4. Barclays Bus Tour Presentation – Apache Corp – slide 4
    OPTIMIZING THE CURRENT LIFE CYCLE PORTFOLIO REBALANCING: EXPAND NORTH AMERICA ONSHORE LIQUIDS 2009 Production by Region 2Q 13 Pro Forma Production by Region* 583 MBOE/D 630 MBOE/D Australia Argentina Australia Argentina Central…
  5. Barclays Bus Tour Presentation – Apache Corp – slide 5
    REMAIN FOCUSED ON TOP TIER RETURNS THREE YEARS ENDED 12/31/2012 ROACE: 3 Year Average ROE: 3 Year Average 16% 16% 14% 14% 12% 12% 10% 10% 8% 8% 6% 6% 4% 4% 2% 2% 0% 0% OXY A APA APA NBL C DVN D APC E EOG F A…
  6. Barclays Bus Tour Presentation – Apache Corp – slide 6
    2ND QUARTER 2013 RESULTS Net income: 1.0 BN Cash flow: 2.6 BN* N.A. Onshore liquids growth: 42% increase YoY Net daily production: 790 MBOE/D 54% Liquids 45% N.A. Onshore 27% Permian + Central * Cash from operations before…
  7. Barclays Bus Tour Presentation – Apache Corp – slide 7
    PORTFOLIO OF LEADING POSITIONS Growing through the drillbit: 1 driller onshore U.S. (nearly 80 rigs) 1 in Permian Basin (44 rigs/20 Hz) 2 in Anadarko Basin (30 rigs / 29 Hz) 1 Independent operator in UK North Sea (Brent oil) 1…
  8. Barclays Bus Tour Presentation – Apache Corp – slide 8
    2013 ROADMAP TO VALUE CREATION Accelerate North America onshore drilling 25%+ N.A. onshore liquids growth Advance major projects (including LNG) 2.2B capex for project development (1.2B for LNG) 700MM for projects with 2014 IP (25…
  9. Barclays Bus Tour Presentation – Apache Corp – slide 9
    2013 ROADMAP TO VALUE CREATION Rebalance portfolio for consistent, profitable growth 7 billion asset sales and monetizations announced to date Pay down debt (financial flexibility) Board authorization to repurchase up to 30 MM…
  10. Barclays Bus Tour Presentation – Apache Corp – slide 10
    ACCELERATION OF N.A. LIQUIDS GROWTH LIQUIDS (NET BARRELS/DAY) NET BOE/DAY 160,000 250,000 Permian Central Permian Central 136 214 140,000 200,000 120,000 100,000 150,000 80,000 100,000 89 60,000 39 40,000 50,000…
  11. Barclays Bus Tour Presentation – Apache Corp – slide 11
    RESOURCE BASE: VISIBLE, PREDICTABLE UPSIDE* PREDOMINANTLY ONSHORE NORTH AMERICAN LIQUIDS Proved Reserves + Proved Reserves Permian / Central Resources 2.9 BBOE 11.7 BBOE Canada Argentina Australia Canada North Sea 5%…
  12. Barclays Bus Tour Presentation – Apache Corp – slide 12
    DRIVING DOWN COSTS IN RESOURCE PLAYS Drilling and Completion Costs Focus Reducing drilling days Reducing frac costs Pad drilling Self sourcing Optimizing bit selection Optimizing frac designs Mud programs Synergies from pad drilling…
  13. Barclays Bus Tour Presentation – Apache Corp – slide 13
    PERMIAN REGION 14
  14. Barclays Bus Tour Presentation – Apache Corp – slide 14
    PERMIAN BASIN RAMPING UP HORIZONTAL DEVELOPMENT New Mexico Texas Resource Summary* Acreage: Gross 3.5 MM Net 1.6 MM Net Resources 3.8 BBOE Midland Identified Locations 34,518 2012 Highlights 108 MBOE/D Net Production 20 mi…
  15. Barclays Bus Tour Presentation – Apache Corp – slide 15
    APACHES GROWING PRESENCE IN THE PERMIAN 6X INVESTMENT, 7X OPERATED RIG COUNT IN 3 YEARS Apache Permian Evolution: 2010 2011 2012 2013E Employees 345 662 816 896 Investment 0.4B 1.2B 2.3B 2.4B + Avg Rigs 5 25 32 34 + Hz Wells…
  16. Barclays Bus Tour Presentation – Apache Corp – slide 16
    RESOURCE PLAY INVENTORY AS OF MAY 2012 Known Locations to Drill 34,518 Net MMBOE 3,785 % of MMBOE PUD 6.2% New Mexico Texas Central Basin Platform + N/NW Shelf CBP + N/NW Shelf Midland Basin Midland Vertical Locations 9,798…
  17. Barclays Bus Tour Presentation – Apache Corp – slide 17
    PERMIAN OIL: DELIVERING PROFITABLE GROWTH Avg. Op. MBOE/D Rigs (Line) 2013 Plans (Bar) 45 E&D Capital 2.4B+ 120 40 Average Rigs 34+ 100 Mariner 35 Closing Gross Wells 700 Total / 180 Hz+ 80 BP Closing 30 Horizontal Oil…
  18. Barclays Bus Tour Presentation – Apache Corp – slide 18
    MIDLAND BASIN DEADWOOD VERTICAL PROGRAM IMPACTIVE GROWTH APA acreage Aggressive growth: production up 8.2x to 24.6MBOE/D in 31 months Targeting Wolf-Wood deeper Fusselman Deadwood Initiating 20 acre infill development 5.9K…
  19. Barclays Bus Tour Presentation – Apache Corp – slide 19
    APACHE HORIZONTAL PLAY ACTIVITY 2010-13 Midland Deadwood Shale Plays Drilled and Proved (11) Nine New Plays Planned for 2013 20
  20. Barclays Bus Tour Presentation – Apache Corp – slide 20
    WOLFCAMP SHALE: BUILDING ON 2012 SUCCESS Apache Wolfcamp Shale Summary Wolfcamp APA Gross Acres (000) 450 Shale APA Net Acres (000) 345 Horizontal Wells Drilled 2012 21 Horizontal Wells Planned 2013 90+ Drilling Locations 971…
  21. Barclays Bus Tour Presentation – Apache Corp – slide 21
    BARNHART WOLFCAMP SHALE PRODUCTION GROWTH: UP 5X TO 11.1 MBOE/D OVER THE PAST YEAR Scott Sugg Lease: 46 Wells 29 Producers 25,000 45 Daily Prod: 6,400 BO + 8.6 MMCFG 18,815 MCFD 40 20,000 35 Well Count 30 BOPD/MCFD…
  22. Barclays Bus Tour Presentation – Apache Corp – slide 22
    WOLFCAMP SHALE: EXPANDING ACTIVITY NORTH Apache: Miller 36 HM 1 Peak IP: 1,241 BOED 85% Oil Midland Co. Company A: DL Hutt C 1H 5,032 Lateral 24 hr IP: 1,693 BOEPD 15 Frac stages 75% Oil 7,380 Lateral Upton Co. Reagan Co.…
  23. Barclays Bus Tour Presentation – Apache Corp – slide 23
    CLINE SHALE: EXPANDING HZ PROGRAM Apache Cline Shale Summary APA Gross Acres (000) 650 APA Net Acres (000) 520 Horizontal Wells Drilled 2012 6 Horizontal Wells Planned 2013 30+ Deadwood area Drilling Locations 2,321 Inventory Net…
  24. Barclays Bus Tour Presentation – Apache Corp – slide 24
    CLINE SHALE LEADING GLASSCOCK CO. CLINE PLAYER Deadwood Horizontal Cline Average Daily Production Marlin 900 Barracuda 45 2H Marlin 47 2H Lee 800 Squire Type Curve* 700 600 Red Snapper 500 BOEPD Hammerhead Huitt 400…
  25. Barclays Bus Tour Presentation – Apache Corp – slide 25
    PERMIAN REGION EXCEEDING EXPECTATIONS Net MBOE/D 180 160 - - - - Actual Production 140 120 Drilling 100 May 2012 80 Projections 60 40 Production 20 Base 0 2010 2011 2012 2013E 2014E 2015E 2016E 26
  26. Barclays Bus Tour Presentation – Apache Corp – slide 26
    CENTRAL REGION 27
  27. Barclays Bus Tour Presentation – Apache Corp – slide 27
    CENTRAL REGION ANADARKO AND WHITTENBURG BASINS FUELING EXPLOSIVE GROWTH Kansas Resource Summary* Acreage: Gross 2.0 MM Oklahoma Net 1.0 MM Texas Anadarko Basin Net Resources 5.4 BBOE Canyon Wash Identified Locations 32,546…
  28. Barclays Bus Tour Presentation – Apache Corp – slide 28
    CENTRAL REGION: CONSISTENT, PROFITABLE GROWTH MBOE/D Avg. Op (Bar) Rigs (Line) 2013 Plans 30 E&D Capital 1.4B+ 90 Avg. Rigs 29 (28 Hz) 80 Gross Wells 300 total / 285 Hz+ 25 Targets Liquids-rich GW, Oily 70 Tonkawa, Marmaton,…
  29. Barclays Bus Tour Presentation – Apache Corp – slide 29
    CENTRAL REGION 2012 / 2013 PRODUCTION GRAPH 110,000 June 105,000 Production: 100,000 94 MBOE/D 95,000 90,000 85,000 80,000 75,000 April 30, 2013 BOEPD 70,000 Cordillera closed 65,000 60,000 55,000 50,000…
  30. Barclays Bus Tour Presentation – Apache Corp – slide 30
    CENTRAL REGION SUBSTANTIALLY GROWING CAPITAL AND ACTIVITY 2010 2011 2012 2013E Staff 236 227 384 448 Capital 455MM 507MM 1.1B 1.4B + Avg Rigs 5 6 18 29 Hz - Wells 59 90 178 290 + Vt - Wells 28 23 18 10+ Total Wells 87 113 196 300…
  31. Barclays Bus Tour Presentation – Apache Corp – slide 31
    CENTRAL REGION FIVE MILES OF PROVEN PRODUCTION AND STACKED PAY Texas Panhandle Central Oklahoma Generalized Cross-Section of Anadarko Basin Multiple stacked objectives throughout the basin 32
  32. Barclays Bus Tour Presentation – Apache Corp – slide 32
    ANADARKO BASIN GAS GIANT RAPIDLY TRANSITIONING TO LIQUIDS 500 70000 Oil (MMBO) 450 Gas (MMBOE) 60000 GOR 400 350 50000 300 Oil MMBO/Y Gas MMBOE/Y 40000 250 30000 200 150 20000 100 10000 50 0 0 1930 1935…
  33. Barclays Bus Tour Presentation – Apache Corp – slide 33
    RESOURCE PLAY INVENTORY AS OF MAY 2012 Net MMBOE 5,395 % of MMBOE PUD 1.5% Known Locations to Drill 32,546 Granite Wash Oklahoma Tonkawa Locations 22,823 Locations 2,795 Net MMBOE 4,535 Net MMBOE 202 Texas Cleveland…
  34. Barclays Bus Tour Presentation – Apache Corp – slide 34
    CENTRAL REGION EVOLVING PLAY OUTLINES AND PLANNED OPERATED TESTS Cherokee/Atoka Cleveland 10 Wells 35 + Wells Tonkawa 100+ Wells Marmaton Shelf 20+ Wells Canyon Wash 15+ Wells Douglas Thirteen Finger Woodford…
  35. Barclays Bus Tour Presentation – Apache Corp – slide 35
    CENTRAL REGION DRILLING HIGHLIGHTS Flathers 232 1H Chenette 2-9H Churchill 1-18H Cleveland Tonkawa Tonkawa 541 BOPD 967 MCFD 430 BOPD 1,350 MCFD 210 BOPD 150 MCFD Knox Pipkin 28 4 Cleveland 1,079 BOPD 1,229 MCFD Ramp 26 7H…
  36. Barclays Bus Tour Presentation – Apache Corp – slide 36
    CENTRAL REGION STRATIGRAPHIC MAPPING PROCESS GW type log 105 Granite Wash Caldwell Gross Sand thickness Broadest interval has best well control 37
  37. Barclays Bus Tour Presentation – Apache Corp – slide 37
    CENTRAL REGION BUILDING ON A SOLID FOUNDATION GW type log 92 Granite Wash Caldwell Net Clean Sand thickness Thickest intervals contain the cleanest sandstone 38
  38. Barclays Bus Tour Presentation – Apache Corp – slide 38
    CENTRAL REGION EACH MAPPING STAGE BUILT ON THE PREVIOUS STAGE GW type log 72 Granite Wash Caldwell Net Clean Porosity Cleanest sand contains the best reservoir 39
  39. Barclays Bus Tour Presentation – Apache Corp – slide 39
    GRANITE WASH CONSISTENCY, GREAT ECONOMICS & RUNNING ROOM Type Log Ramp 26 7H Stiles 3 20-3H Acres (000): 828 gross (418 net) Granite Wash Tonkawa Caldwell 30-day IP BOE/D 1,416 30-day IP BOE/D 1,723 Cottage Grove EUR MBOE 1,131…
  40. Barclays Bus Tour Presentation – Apache Corp – slide 40
    TONKAWA GENERATING OIL FROM A BYPASSED FORMATION Denney 2-19H Type Log Tonkawa Acres (000): 810 gross (310 net) Tonkawa 30-day IP BOE/D 547 EUR MBOE 419 Cottage Grove 2Q13 Net 8.8 MBOE/D: Hogshooter Checkerboard Current Rigs:…
  41. Barclays Bus Tour Presentation – Apache Corp – slide 41
    MARMATON EMERGING HORIZONTAL PLAY FROM SHELF TO DEEP Type Log Burns Family Trust 1-3H Lower Marmaton Acres (000): 662 gross (512 net) Tonkawa 30-day IP BOE/D 1,657 Cottage Grove EUR MBOE 723 2Q13 Net 12.5 Hogshooter MBOE/D:…
  42. Barclays Bus Tour Presentation – Apache Corp – slide 42
    CLEVELAND AN UNCONVENTIONAL CONVENTIONAL SAND Type Log Leland Mekeel 226-5H Acres (000): 768 gross (438 net) Tonkawa Cleveland 30-day IP BOE/D 480 Cottage Grove EUR MBOE 245 2Q13 Net 4.3 Hogshooter MBOE/D: Checkerboard…
  43. Barclays Bus Tour Presentation – Apache Corp – slide 43
    COTTAGE GROVE APACHE COMPLETES FIRST WELL IN OKLAHOMA Type Log Simmons 3-30H Acres (000): 238 gross (100 net) Cottage Grove Tonkawa 30-day IP BOE/D 2,128 Cottage CottageGrove Grove EUR MBOE 466 2Q13 Net 4.3 MBOE/D:…
  44. Barclays Bus Tour Presentation – Apache Corp – slide 44
    CANYON WASH ZERO TO TEN THOUSAND BOPD IN 24 MONTHS Paint Ridge Acres (000): 147 gross (100 net) GR Res NPhi DT Type Log 21 Producing Wells Current Rate 12,900 MBOE/D 9,100 2Q13 Net 3.5 MBOE/D: Canyon Lime Current Rigs: 2…
  45. Barclays Bus Tour Presentation – Apache Corp – slide 45
    CENTRAL REGION HOW MANY 4 SQ MILE FIELDS FIT IN 200 SQ MILES 406 Paint Ridge Hartley Co Moore Co Moore Co 28-6 Canyon Wash 403 23 wells 405 28-2 115-4 Apache Bivins West 219-2 116-8 116-6 302 116-10 115A 115-5 116-3…
  46. Barclays Bus Tour Presentation – Apache Corp – slide 46
    CENTRAL REGION UPCOMING EXPLORATION PROGRAMS Woodford Shale 16,500 net acres Panhandle Shale Test No tests 2013 13,000 net acres 3 Wells 2014 1 test 2013 Canyon Lime 4 tests 2014 113,000 net acres 2 Tests 2013 3 Tests…
  47. Barclays Bus Tour Presentation – Apache Corp – slide 47
    CENTRAL REGION ACTIVITY UP & INCIDENT RATE DOWN 2011 2012 2013 (YTD) Average Operated Rig Count 9 Rigs 17 Rigs 28 Rigs Total Operated Wells Drilled 104 188 238 Region Apache Headcount 227 384 448 Apache Total Reportable…
  48. Barclays Bus Tour Presentation – Apache Corp – slide 48
    CENTRAL REGION DRILLING WITH ALTERNATIVE FUEL LNG: CNG: Four drilling rigs / 11 wells One drilling rig / 3 wells CAT diesel with dual fuel kits CAT spark ignited 50% substitution rate 85% substitution rate DGE: 2,000 /day DGE:…
  49. Barclays Bus Tour Presentation – Apache Corp – slide 49
    CENTRAL REGION FRACING WITH ALTERNATIVE FUEL LNG: CNG: Schlumberger Crew / 50 wells Halliburton Crew / 30 wells CAT diesel with dual fuel kits CAT dual fuel engines 63% substitution rate 60% substitution rate DGE: 32,000/well…
  50. Barclays Bus Tour Presentation – Apache Corp – slide 50
    CENTRAL REGION WHEELER GATHERING SYSTEM 3 batteries, gathering system & and compression Approximately half of 139MM total spent to date On schedule for November completion 51
  51. Barclays Bus Tour Presentation – Apache Corp – slide 51
    CENTRAL REGION BIVINS CONSTRUCTION PROJECT STATUS Primary Transformer & substation 2.5 MM Bivins East Satellite 4.3 MM Bivins East Gathering System 1.8 MM Primary lines/poles - substation to Terminal 1.5 MM Three 6,000MCFD…
  52. Barclays Bus Tour Presentation – Apache Corp – slide 52
    CENTRAL REGION WATER RECYCLING FACILITIES Two 60,000 barrel facilities constructed 2012 Two additional 60,000 barrel facilities constructed 2013 Two more 60,000 barrel facilities under construction Each facility costs 1.5MM &…
  53. Barclays Bus Tour Presentation – Apache Corp – slide 53
    CENTRAL REGION EXCEEDING EXPECTATIONS Net MBOE/D 180 160 - - - - Actual Production 140 120 100 80 May 2012 Drilling Projections 60 40 20 Production Base 0 2011 2012 2013E 2014E 2015E 2016E 54
  54. Barclays Bus Tour Presentation – Apache Corp – slide 54
    2013 ROADMAP FOR VALUE GROWTH Accelerate North America onshore liquids growth Advance major projects (including 2 world class LNG hubs) Rigorously drive down costs Continue to grow our dividend Rebalance portfolio for consistent,…
  55. Barclays Bus Tour Presentation – Apache Corp – slide 55
    ADDITIONAL SLIDES 56
  56. Barclays Bus Tour Presentation – Apache Corp – slide 56
    NORTH SEA: DELIVERING OIL GROWTH Doubled portfolio 2012 (Beryl) 2012 Cash Flow: 1.5B* Nevis & Ness Beryl Complexes 2013 Plans: Buckland 900 MM (drill 27 wells) Maclure Skene New Forties platform SAGE Pipeline Scott &…
  57. Barclays Bus Tour Presentation – Apache Corp – slide 57
    EGYPT REGION OPERATIONS CONTINUE UNINTERRUPTED 2012 Highlights Matruh Shushan Gross Production 363 Mboe/d Faghur Alamein Cash Flow 2.7 Bn** Capex 1.1 Bn Ghindi Average Rigs 25 Ghazalat Abu Gharadig Beni Suef Gross Wells…
  58. Barclays Bus Tour Presentation – Apache Corp – slide 58
    EGYPT GROSS PRODUCTION OVER TIME MBOE/D 17 years of uninterrupted production growth 375 362 363 350 325 321 300 279 145 150 41% 275 250 132 222 225 117 200 175 93 81 88 150 60 125 47 38 217 213 59% 100 35 189 8 29…
  59. Barclays Bus Tour Presentation – Apache Corp – slide 59
    EGYPT NET REVENUE OVER TIME PREDOMINATELY OIL in MM 4,500 Apache 1 Oil Producer in Egypt 4,791 4,554 621 11% 504 4,000 3,500 3,372 495 3,000 2,739 2,553 2,500 507 490 2,012 2,000 4,170 4,050 89% 1,664 404 1,500…
  60. Barclays Bus Tour Presentation – Apache Corp – slide 60
    RECENT EGYPT DISCOVERIES CONFIRM OPPORTUNITIES IN WESTERN DESERT 61
  61. Barclays Bus Tour Presentation – Apache Corp – slide 61
    AUSTRALIA: WORLD CLASS DEVELOPMENT PIPELINE 2Q 2013 Update Apache Acreage 40 Miles 2Q13 Production 57,147 BOE/D (38% oil) 2Q13 Avg. Rigs 3 70 MBOE/D expected to come online over next 4 years with major projects including:…
  62. Barclays Bus Tour Presentation – Apache Corp – slide 62
    LNG DEVELOPMENT: MULTI-DECADE PROJECTS WHEATSTONE LNG (Australia) KITIMAT LNG (Canada) Construction underway First mover in Canada 8.9 MMTPA LNG 10 MMTPA LNG 1.25 BCF/D Phase 1 1.5 BCF/D Phase 1 First cargo 2016 Chevron…
  63. Barclays Bus Tour Presentation – Apache Corp – slide 63
    ILLUSTRATIVE WHEATSTONE LNG CASH FLOWS PRELIMINARY PROJECTIONS THROUGH 2021 2017E 2018E 2019E 2020E 2021E Net Production (MBOE/D) 14 30+ MM Estimated Payback Period 4.5 Years 1,250 1,000 750 500 Cumulative 250 Capex…

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