APA Corporation Strategy Foundation For Disciplined Leveraging Long-Term Financial Approach Diversified Success Portfolio Prioritize long-term, full-cycle returns Return a minimum of 60% of Free Diversify risk through a…
APA: A Differentiated E&P Opportunity Robust Free Cash Flow(1) (FCF) generation and multi-year production sustainability, excluding the potential impact of Suriname o Project 2.9 billion of FCF in 2022 at strip(2) Industry-leading…
2021 Performance Highlights 1.8 billion of Free Cash Flow(1), among the highest in company history Initiated shareholder return framework: minimum of 60% of Free Cash Flow to shareholders o Returned 870 million to APA shareholders…
APA Committed to Return 60% of Free Cash Flow to Shareholders in 2022 4Q 2021 1Q 2022 Shares Repurchased (MM) 31.2 7.2 Average Stock Price 27.13 36.07 Share Repurchases (MM) 847 261 Dividends (MM) 24 43 Total Cash Return (MM)…
APA Debt Profile Improvement As of March 31, 2022 YE 2021 March 2022 Significant Balance Sheet De-Leveraging Actions Notes & 213 million (April 22 notes) called at par in January 6,344MM 5,032MM Debentures(1) De-consolidated 1.4…
APA Assets & Operations
APA at a Glance: Diversified & Focused 1Q22 Reported Production 1Q22 Commodity Mix North Sea 11% Global Portfolio Gas Oil U.S. 37% 47% Egypt 52% 37% NGL 16% UK North Sea 1Q22 Cash Flow(1) 1Q22 Upstream Capital United…
United States Currently running 4 rigs onshore U.S. U.S. Acreage NEW o 2 rigs operating in the Southern Midland Basin drilling MEXICO OKLAHOMA predominantly longer laterals (2-3 miles) Permian o 1 rig operating in the Delaware…
Egypt Countrys largest oil producer and onshore acreage holder Apache Egypt Acreage: 5 million acres Conventional drilling province with 25 year+ track record of value creation o Long-term drilling success rate: development 85%+ /…
Egypt: Positive Impacts of PSC Modernization Doubling average drilling rig count & increasing well completions by 3x compared with 2021 Significant uplift in Free Cash Flow & gross oil production (projected 8-10% CAGR through…
North Sea Focused on sustaining production & cash flow generation capacity o Forties: mature waterflood, focused on mitigating declines & managing costs o Beryl: exploration focused, high-volume subsea tiebacks Planned activity…
Exceptional Uplift in 1Q22 Operating Cash Margins Egypt North Sea United States(2) 120 114 / Boe 100 80 86 Per Boe 60 66 / Boe + 32 vs. 4Q 56 52 / Boe 38 40 Per Boe 28 / Boe Per Boe + 14 vs. 4Q + 4 20 Leverage to Brent…
Suriname 16
Offshore Suriname Block 58 (APA 50% WI) o Five exploration discoveries since Jan. 2020 Recent discovery at Krabdagu-1 exploration well o Flow testing complete; in pressure build-up stage of Sapakara South-1 both tested zones…
Suriname PSC and APA / Total Energies Joint Venture Summary Terms and Production Sharing Contract Mechanics Suriname Govt Profit Oil Split by 20% R-Factor Joint APA 40% Total 40% Venture Staatsolie 20% Gross APA 40%…
Summary of Terms Suriname PSC APA / Total JV Cost oil recovery ceiling of 80% after royalty payment Parties have the right to alternate proposals of exploration wells up to 8 wells per year Unrecovered cost oil balances carried…
ESG Discussion 20
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…
Environmental, Social & Governance 2021 Highlights Environmental Stewardship Diversity & Inclusion Governance Key Highlights: Key Highlights: Key Highlights: APA Sustainability Report features greenhouse gas Implemented strategy to…
Compensation-linked ESG Goals Short-term Goals Long-term Goal Egypt: 40% reduction of upstream flaring in Established long-term incentive Egypt by year-end compensation-linked emissions People: Develop and implement a future of…
Positive Safety Performance Trends Across Operations Total Recordable Injury Rate (TRIR) Severe Injury & Fatality Rate (SIF) 1.4 76% Reduction in Recordable Injury 500 450 0.09 0.08 82% Reduction in SIF Injury count 40…
Appendix
Guidance (Published May 4, 2022) 2Q 2022 FY 2022 Commentary Production (Mboe/d) United States. 206 210 FY unchanged FY reduced for higher oil price PSC effects, slightly lower gross oil Egypt (Reported) 154 154 outlook from timing…
North Sea Production Efficiency Performance North Sea Industry Efficiency(1) Industry-wide performance in 2021 has underperformed vs. prior years and 80% industry target level o Deferred maintenance work scopes from 2020 due to COVID…
Glossary of Referenced Terms Upstream Capital Investment: Includes exploration, development, gathering, processing, and transmission capital, capitalized overhead, and settled asset retirement obligations. Excludes capitalized…
Non-GAAP Reconciliations 29
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 Segment Cash Flows Reconciliation of Net Cash Provided by Operating Activities to Cash Flows from Continuing Operations before Changes in Operating Assets and Liabilities Cash flows from operations before…
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 APA's…
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