APA Investment Case Robust Free Cash Flow generation capacity and strong visibility into years of sustained production within legacy portfolio o Expect to generate 6.5 billion of free cash flow in 2022-2024 based on a WTI average…
2021 Highlights Generated 1.8 billion of Free Cash Flow(1); highest in over a decade & one of the highest in 67-year history Initiated shareholder return framework: minimum of 60% of Free Cash Flow to shareholders beginning in 4Q21 o…
2022 Plan Overview Planned Drilling Activity Egypt: 11 rigs increasing to 15 rigs by mid-year 2022 Plan North Sea: 1 floating rig / 1 platform crew Onshore U.S.: 3 rigs increasing to 4 rigs by mid-year Upstream capital…
ESG Vision Be at the forefront of industrys efforts to measure, disclose AIR and mitigate emissions E WATER Preserve freshwater resources and leverage technology to maximize water reuse S COMMUNITIES +PEOPLE Provide…
Compensation-linked ESG Goals Short-term Goals Long-term Goal Egypt: 40% reduction of upstream flaring in Egypt by year-end Established inaugural, long-term People: Develop and implement a future of work strategy inclusive of…
APA Overview US Egypt North Sea Suriname
4Q 2021 Operating Cash Margins Egypt North Sea United States(2) 90 80 84 / Boe 70 54 60 Per Boe 55 / Boe + 8 50 vs. 3Q 40 42 46 / Boe Per Boe 30 / Boe 34 30 + 2 Per Boe vs. 3Q + 5 20 North Sea cash operating cost per…
United States Currently running 3 rigs onshore U.S. U.S. Acreage o 2 rigs operating in the Southern Midland Basin drilling NEW OKLAHOMA predominantly longer laterals (2-3 miles) MEXICO Permian o 1 rig conducting a year-long…
Egypt: PSC Modernization Enables Return to Growth Apache Egypt Acreage: 5 million acres Countrys largest oil producer and onshore acreage holder; identified an extensive, high-quality inventory 2.5 MM-acre high-density 3-D seismic…
Egypt: Positive Near-Term Impacts of PSC Modernization 2022 plan to double average drilling rig count & increase well completions by 3x compared with 2021 Gross oil production forecasted to increase 13 15% in 2022 APA / Sinopec…
North Sea Apache North Sea Acreage Focused on sustaining cash flow generation capacity Apache o Forties: mitigating declines & managing costs Beryl o Beryl: high-volume subsea tiebacks Planned activity set: 1 floating rig & 1…
Suriname Update Block 58 (APA 50% WI): Five exploration discoveries since Jan. 2020, appraisal program underway Announced discovery at Krabdagu-1 exploration well o Encountered 90 meters (295 feet) of net oil pay in good quality…
Appendix
Glossary of Referenced Terms Upstream Capital Investment: Includes exploration, development, gathering, processing, and transmission capital, capitalized overhead, and settled asset retirement obligations. Excludes capitalized…
Debt Maturity Profile Current(1) Apache Notes & Debentures(2) 6,131MM Reduced notes(2) by 1.7 BN in 2021 Avg. Coupon 5.138% 1,500 o Annual bond interest expense lowered by 20% (79 MM) Avg. Maturity 14.1 Years 1,333 542 MM drawn on…
Continuing Down the Path to Investment Grade Renegotiate revolver Paydown 2022 notes Retire 2023 notes in 4Q 2022 Deconsolidate Altus Continue incremental debt reduction & manage maturity profile 19
Pro Forma Impact of Egypt PSC Modernization on 2021 & 2022 2022 72 2021 72 Brent Brent Previous Modernized APA / Sinopec JV Terms Terms Modernized Terms Gross Volume (Mboe/d) 232 - 234 250 - 255 Reported Volume(1) (Mboe/d) 114…
Egypt Oil Production Returning to a Growth Trajectory Oil Oil Production (Mbo/d) Production (Mbo/d) Anticipate significant increase in long- 200 term oil production from 15-rig program 150 Gross gas production expected to…
Guidance 1Q 2022 FY 2022(2) Commentary Production (Mboe/d) United States. 212 210 Mineral rights sales package impact of 7 Mboe/d FY22 Egypt (Reported) 156 160 North Sea. 44 45 Total Reported Production. 412 415 Less: Egypt Tax Barrels…
Non-GAAP Reconciliations 23
Non GAAP Reconciliation Cash Flow Before Changes in Operating Assets & Liabilities and Free Cash Flow Reconciliation of Net Cash Provided by Operating Activities to Cash Flows from Operations before Changes in Operating Assets and…
Non GAAP Reconciliation Net Debt Reconciliation of Debt to Net Debt Net debt, or outstanding debt obligations less cash and cash equivalents, is a non-GAAP financial measure. Management uses net debt as a measure of the Company's…
Non GAAP Reconciliation Upstream Capital Investment Reconciliation of Costs Incurred to Upstream Capital Investment Management believes the presentation of upstream capital investments is useful for investors to assess the Company's…
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