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INVESTOR DAY – Apache Corp

Apache Corp · Feb 26, 2014 · 162 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. INVESTOR DAY – Apache Corp – slide 1
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  2. INVESTOR DAY – Apache Corp – slide 2
    STRATEGIC REPOSITIONING FOR NEXT GROWTH PHASE N.A. Onshore MBOE/D, Net Liquids 800 Expansion GOM 750 International 700 North America 650 Repositioned for Onshore 600 International Next Growth Phase 550 Expansion 537 500…
  3. INVESTOR DAY – Apache Corp – slide 3
    REPOSITIONING OBJECTIVES Focused portfolio: growth assets, free cash flow assets Powered by North America onshore Play to our core strength in operational execution Production growth: visible, predictable, repeatable Rate of…
  4. INVESTOR DAY – Apache Corp – slide 4
    DECISIVE STEPS TAKEN IN 2013-14 Delivered portfolio repositioning GOM Shelf sale (retaining 50% of exploration portfolio) Egypt JV with Sinopec Argentina sale1 Canada transitioning Accelerated North America liquids growth:…
  5. INVESTOR DAY – Apache Corp – slide 5
    REPOSITIONED PORTFOLIO North America Onshore GOM International 20091 2013 Pro Forma2 8% 8% 34% North 11% 60% North 7% America 14% America 11% 10% Onshore 17% Onshore 13% 3% 20% GOM 2% 14% 13% GOM Shelf 23% 24%…
  6. INVESTOR DAY – Apache Corp – slide 6
    APACHE TODAY Proven leader in oil-levered North America growth: 1 growth generator in Permian + Anadarko basins Strongly positioned to drive the companys growth Major free cash flow assets: Egypt, North Sea, Australia: 1 positions…
  7. INVESTOR DAY – Apache Corp – slide 7
    1 GROWTH GENERATOR IN THE PERMIAN BASIN MBOE/D, Net Average MBOE/D Added in 2013 20 19 18 Central Basin Midland Platform Basin 16 Delaware Basin 14 12 10 8 3.3MM acres (1.7MM net) 127 MBOE/D in 2013 6 22% liquids…
  8. INVESTOR DAY – Apache Corp – slide 8
    MULTI-PLAY ANADARKO BASIN GROWTH ENGINE 58 YEAR TRACK RECORD Horizontal Well Liquids Drive APAs Growth % Liquids 20% 34% 50% MBOE/D, Net 100 91 90 15 mi 80 APA acreage 70 61 1.8MM acres (1MM net) 60 91 MBOE/D in 2013 50 45…
  9. INVESTOR DAY – Apache Corp – slide 9
    MULTI-YEAR TRACK RECORD: PROVEN DRIVERS Liquids Track Record (B/D) BOE/D Track Record 160,000 250,000 151 Permian Central Permian Central 227 140,000 200,000 120,000 100,000 150,000 80,000 100,000 89 60,000 39 40,000…
  10. INVESTOR DAY – Apache Corp – slide 10
    LEADER IN NORTH AMERICA LIQUIDS GROWTH 2013 % Growth 34% 34% 26% 21% 15% 5% APA A B C D E 13 Note: Peers include: Anadarko, Chesapeake, Devon, EOG, and Occidental. Latest 2013 company guidance used for companies who…
  11. INVESTOR DAY – Apache Corp – slide 11
    INTERNATIONAL: SUSTAINABLE FREE CASH FLOW WITH UPSIDE Egypt, North Sea Australia BERYL North Sea Apache Acreage Oil Field Gas Field FORTIES Sustainable free cash flow generation Visible growth project pipeline 1 BN in…
  12. INVESTOR DAY – Apache Corp – slide 12
    WHEATSTONE LNG Pre-Tax Cash Flow at 100 Brent1 Illustrative Free Cash Flow Profile MM 20-Year Contracts 1,100 900 700 500 300 100 First production in 2016 -100 -300 85% contracted (oil-based pricing) Pre-Tax Cash Flow -500…
  13. INVESTOR DAY – Apache Corp – slide 13
    KITIMAT LNG A Commercialize 50 TCF gross discoveries in Liard, Horn River Basins Most advanced LNG project in Canada 10 MMTPA LNG, APA currently 50% Apache operates upstream 2013: Chevron became operator of downstream 2014:…
  14. INVESTOR DAY – Apache Corp – slide 14
    2014 EXPECTATIONS 15-18% North America onshore liquids growth Driven by oil Double-digit global liquids growth 5-8% global BOE production growth Capex ex LNG = within cash flow 17 Note: All growth rates based on 2013 pro…
  15. INVESTOR DAY – Apache Corp – slide 15
    2014 CAPITAL PLAN North America Onshore GOM International E&P Capital = 8.5 Bn1 Australia North Sea 0.8 Bn 0.9 Bn 9% 11% Central 1.7 BN Egypt 0.9 Bn 20% 11% 64% North GOM America 0.5 Bn 6% Onshore 7% Canada 0.6 Bn…
  16. INVESTOR DAY – Apache Corp – slide 16
    WE ARE ALREADY DELIVERING IT 2013 Production Growth 2014 Plan2 Reported1 Retained Assets 8% 6.4% 5% -1.3% Note 1. All growth rates exclude Egypt tax barrels and noncontrolling interest. 2013 continuing operations. 19 Note…
  17. INVESTOR DAY – Apache Corp – slide 17
    RETURNING CAPITAL TO SHAREHOLDERS Dividend 13% per share growth in 2012 18% per share growth in 2013 25% per share growth in 2014 Strategy: consistently grow our dividend at attractive rates Buyback 1.2 BN 2013 + 2014 YTD Our…
  18. INVESTOR DAY – Apache Corp – slide 18
    HIGH-GRADED PORTFOLIO: ENHANCED PREDICTABILITY 2017: Wheatstone LNG1 At full ramp-up: MBOE/D, Net 1 BN annual free cash flow 700 30 MBOE/D, net No decline for decades 650 600 550 Enhanced predictability with 500 high-graded…
  19. INVESTOR DAY – Apache Corp – slide 19
    APACHE TODAY Proven leader in oil-levered North America growth: 1 growth generator in Permian + Anadarko basins 60% of company production in NA onshore (and rising) Major free cash flow assets: 1 BN/year FCF from Egypt, North Sea,…
  20. INVESTOR DAY – Apache Corp – slide 20
    NORTH AMERICA ONSHORE John Christmann February 26, 2014
  21. INVESTOR DAY – Apache Corp – slide 21
    N.A. ONSHORE 2013 HIGHLIGHTS North America onshore liquids growth 34% Most active N.A. onshore driller in 2013 Averaged 79 rigs and drilled 1,300 wells Outstanding organic production replacement and reserve growth Overall…
  22. INVESTOR DAY – Apache Corp – slide 22
    PROVEN NORTH AMERICA GROWTH DRIVERS Liquids Track Record (B/D) BOE/D Track Record 160,000 250,000 151 Permian Central Permian Central 227 140,000 200,000 120,000 100,000 150,000 80,000 100,000 89 60,000 39 40,000…
  23. INVESTOR DAY – Apache Corp – slide 23
    N.A. ONSHORE RESOURCE BASE: VISIBLE, PREDICTABLE UPSIDE Eagle Ford Resources Under Assessment Pro Forma Proved Reserves1 Total Resources2 1.7 BBOE 14.0 BBOE Canada 21% Canada 24% Central Central 18% GC 4% 38% Onshore…
  24. INVESTOR DAY – Apache Corp – slide 24
    HZ WELL MANUFACTURING - LEVERAGING EXPERIENCE DRIVING EFFICIENCY ACROSS ALL DISCIPLINES Hz Drilling Operations Excellence Increasing pad drilling Horizontal Rig Count Sharing hz drilling best practices Frac Stimulation…
  25. INVESTOR DAY – Apache Corp – slide 25
    N.A. ONSHORE 2014 PLAN 2014 E&D capital of 5.4Bn 47% Permian; 32% Central Avg. Rigs 85; gross wells 1,400 875 horizontal gross wells 2014: 15% to 18% North America onshore liquids growth Driven by oil Continue delineation of…
  26. INVESTOR DAY – Apache Corp – slide 26
    2014 PLAN FOCUSED ON ONSHORE LIQUIDS GROWTH Total N.A. 2014 E&D Capital = 5.4 Bn 2014 Plan Canada 2014 Project Capital* 0.6 Bn Avg. Rigs Total Wells GC Onshore 775 MM 0.5 Bn 11% 10% Permian 39 (23 Hz) 768 (297 Hz) Central…
  27. INVESTOR DAY – Apache Corp – slide 27
    N.A. ONSHORE LONG-TERM GROWTH PREDICTABLE, REPEATABLE, PROFITABLE MBOE/D, Net 450 400 350 300 250 200 150 100 50 0 2013PF 2014E 2015E 2016E Midpoint of expectation range displayed 30 Note: Pro forma for divested…
  28. INVESTOR DAY – Apache Corp – slide 28
    NORTH AMERICAN POWERHOUSE Most active driller Track record of delivering consistent, repeatable growth Organic production replacement of 230% at 17 per BOE Substantial reduction of costs in resource plays Massive resource base…
  29. INVESTOR DAY – Apache Corp – slide 29
    NORTH AMERICA ONSHORE POSITION Canada 2013PF Avg. Production1: 74.6 MBOE/D Undeveloped Resources: 2.8 BBOE Emerging Montney / Duvernay Shale Plays Permian 2013 Avg. Production: 127.1 MBOE/D Central Undeveloped Resources: 4.8…
  30. INVESTOR DAY – Apache Corp – slide 30
    PERMIAN John Christmann February 26, 2014
  31. INVESTOR DAY – Apache Corp – slide 31
    APACHE PERMIAN A MAJOR GROWTH BUSINESS Currently running 38 rigs APA Hz rigs APA Vt rigs (22) (16) 3 Vt New Mexico Texas 1 Hz/2 Vt 3 Hz/3 Vt Midland 4 Hz 5 Hz 15 mi APA acreage 1 driller in the Permian Basin…
  32. INVESTOR DAY – Apache Corp – slide 32
    2013 HIGHLIGHTS AVERAGED 42 RIGS AND COMPLETED 785 WELLS Mboe/d Rigs (bars) (line) Production & Operated Rig Count Growth 160 50 45 2013 Results 140 APA Permian 40 127.1 MBOE/D 120 Region Average Production +17.3% YoY…
  33. INVESTOR DAY – Apache Corp – slide 33
    CHARGING AHEAD WITH HORIZONTAL RIGS UP TO 23 HORIZONTAL RIGS BY YEAR END 2013 Apache Operated Rig Count 45 Hz Vt 40 35 30 25 20 15 10 5 - 2010 2011 2012 2013 36
  34. INVESTOR DAY – Apache Corp – slide 34
    1 PERMIAN DRILLER IN 2013 Operated Rigs 45 40 35 30 25 20 15 10 5 0 APA A B C D E F Note: Peers include COP, CXO, DVN, OXY, PXD, and XEC; data sourced from company investor presentations and Wall Street research. 37
  35. INVESTOR DAY – Apache Corp – slide 35
    2ND LARGEST FOOTPRINT: 1.7 MM NET ACRES Net Acres (000s) 3,000 2,500 2,000 1,500 1,000 500 0 A APA B C D E F Note: Peers include COP, CXO, DVN, OXY, PXD, and XEC; data sourced from company investor presentations and Wall…
  36. INVESTOR DAY – Apache Corp – slide 36
    17% GROWTH ON 2ND LARGEST BASE 2013 Net MBOE/D 300 211 200 127 92 79 78 108 2012 100 55 53 92 2011 66 2010 0 A APA B C D E F APA Hist % Growth 2013 vs 2012 40% 30% 20% 18% 21% 20% 17% 13% 10% 8% 2% 0% A APA B C D E…
  37. INVESTOR DAY – Apache Corp – slide 37
    1 GROWTH BY VOLUME ACROSS PEERS MBOE/D Added in 2013 20 18 16 14 12 10 8 6 4 2 0 APA A B C D E F Note: Peers include COP, CXO, DVN, OXY, PXD, and XEC; data sourced from company investor presentations and Wall Street…
  38. INVESTOR DAY – Apache Corp – slide 38
    REGION GROWTH SECOND TO NONE 2014 2010 2011 2012 2013 Plan Employees 345 662 792 914 970 Investment 0.4B 1.2B 2.3B 2.6B 2.6B Production 12-15% 66.5 91.7 108.3 127.1 (MBOE/D)1 growth Rigs 6 25 32 42 39 New Hz 17 39 104 186 +60% 297…
  39. INVESTOR DAY – Apache Corp – slide 39
    REGION GROWTH 2014P TRACK RECORD OF ORGANIC GROWTH 12-15% 140 Growth Liquids % of Mix 2011 Actual 69% 127.1 2012 Actual 72% 120 2013 Actual 75% 108.3 31.6 100 91.7 30.1 23.4 80 MBOE/D 28.9 18.0 60 11.8 40 72.1…
  40. INVESTOR DAY – Apache Corp – slide 40
    GROWING TOTAL RESOURCE 1 BILLION BOE NET INCREASE IN TOTAL RESOURCE SINCE 2012 Understanding of new areas now sufficient for inclusion (i.e., Augusta Barrow, Fasken/Circle Bar, Southern Crane) Understanding of new landing zones…
  41. INVESTOR DAY – Apache Corp – slide 41
    TOTAL RESOURCE Net Resources Gross / Net Acreage 4.8 BBOE 3.3MM/ 1.7MM APA acreage CBP + N/NW Shelf Gross Acreage 1,800 Net Acreage 850 Net MMBOE 1,275 Central Basin Platform Midland Basin Delaware Basin Midland Basin…
  42. INVESTOR DAY – Apache Corp – slide 42
    INCREASING HORIZONTAL ACTIVITY APACHE HORIZONTAL TARGETS Delaware Basin CBP/NW Shelf Midland Basin Leonard Lime Mountain Group Bell Canyon Tansil Delaware Cherry Canyon Yates Permian Basin Seven Rivers Leonard Bushy…
  43. INVESTOR DAY – Apache Corp – slide 43
    RECENT HORIZONTAL RESULTS FIELD/AREA APA Well Name Landing Zone Peak IP rate MANY WAYS TO WIN 1st Flow Date Lateral Length YESO THREE BAR THREE BAR AUGUSTA BARROW VEALMOOR DEADWOOD YESO Crow Fed 10H Carmichael 1501H Augusta…
  44. INVESTOR DAY – Apache Corp – slide 44
    MIDLAND BASIN MULTI-PLAY GROWTH ENGINE Midland Basin Net Production 2011-2013 Boe/d Cline Shale 70,000 Midland Basin 60,000 50,000 40,000 30,000 Wolfcamp Shale 20,000 10,000 25 mi - APA acreage 2011 2012 2013 APA…
  45. INVESTOR DAY – Apache Corp – slide 45
    MIDLAND BASIN HORIZONTAL TREMENDOUS UNCONVENTIONAL POTENTIAL 48 Note: Logs above hung on Clearfork.
  46. INVESTOR DAY – Apache Corp – slide 46
    WOLFCAMP SHALE GROWING OUR RESOURCE Acres (000) 502 (401 net) Midland Basin Planned 2014 Wells 131 (All Hz) Wolfcamp Shale Resources 846 MMBOE net Midland Basin Wolfcamp Shale MMBOE 1,000 800 600 400 200 25 mi - APA…
  47. INVESTOR DAY – Apache Corp – slide 47
    WOLFCAMP SHALE PROVEN MODEL: APACHES BARNHART AREA (IRION CO.) Mcf/d Barnhart Wolfcamp Gross Production Bo/d Midland Basin 60,000 12,000 MCFD BOPD Wolfcamp Shale 50,000 10,000 40,000 8,000 30,000 6,000 Barnhart Field 20,000…
  48. INVESTOR DAY – Apache Corp – slide 48
    WOLFCAMP SHALE: BARNHART CONSISTENT FAST-PACED EXECUTION WITH STRONG RESULTS Well Highlights IP (24 hr Pk) IP (30-Day Avg) Lateral (ft) EUR (MBOE) Scott Sugg 5554 H31U 918 Pending 7,697 685 Scott Sugg 5554 H43M 1,111 882 7,628 631…
  49. INVESTOR DAY – Apache Corp – slide 49
    WOLFCAMP SHALE: BARNHART DRILLING FASTER AND LOWERING COSTS Depth (ft) 0 2,000 Drilling cost reduced 26% 2012-2013 YoY /ft 4,000 6,000 8,000 10,000 12,000 14,000 Avg 2013 Avg 2012 2013 Pace Setter (78 wells) (21…
  50. INVESTOR DAY – Apache Corp – slide 50
    WOLFCAMP SHALE: BARNHART DRILLING INVENTORY ECONOMICS Wolfcamp Shale: Barnhart1 BOE/D 600 D+C Cost MM 6.3 500 EUR MBOE 600 400 30-Day IP Rate Boed 515 300 % Oil / Gas / NGL 55% / 21% /24% WI / NRI 85% / 64% 200 ROR2 41%…
  51. INVESTOR DAY – Apache Corp – slide 51
    WOLFCAMP SHALE: BARNHART RECENT COMPLETION TRIALS 4Q 13/1Q 14 Results: Step change in completion productivity; Optimizing stage and frac designs; Current Barnhart Wolfcamp type curve used to calculate resource Conducting…
  52. INVESTOR DAY – Apache Corp – slide 52
    WOLFCAMP SHALE: SOUTHERN MIDLAND BASIN APPLYING LEARNINGS Select Apache fields in the Southern Midland Basin Acres1 (000) 292 (232 net) Planned 2014 Wells 53 (All Hz) Wildfire Spraberry Aldwell Unit Midland Resources 549 MMBOE…
  53. INVESTOR DAY – Apache Corp – slide 53
    WOLFCAMP SHALE: SOUTHERN MIDLAND BASIN DRILLING INVENTORY ECONOMICS Wolfcamp Shale: Southern Midland Basin1 BOE/D 700 D+C Cost MM 7.8 600 EUR MBOE 662 500 30-Day IP Rate Boed 590 400 % Oil / Gas / NGL 61% / 19% / 20% 300 WI / NRI…
  54. INVESTOR DAY – Apache Corp – slide 54
    WOLFCAMP SHALE: SOUTHERN MIDLAND BASIN RECENT COMPLETION TRIALS 10,000 Miller 3601HM M. Wolfcamp (Upton Co); 1 mi. lateral 24-hour Peak IP rate of 1,391 BOEPD (82% oil) CC 3626HM M. Wolfcamp (Upton Co); 1 mi. lateral 24-hour Peak…
  55. INVESTOR DAY – Apache Corp – slide 55
    CLINE SHALE EXPANDING HORIZONTAL PROGRAM Acres (000) 640 (510 net) Cline Shale Planned 2014 Wells 35 (All Hz) Resources 665 MMBOE net Deadwood Field Expanding resource play with focus on Glasscock County Drilled 51 wells to…
  56. INVESTOR DAY – Apache Corp – slide 56
    CLINE SHALE LEADING GLASSCOCK CLINE PLAYER Marlin 47 2H Deadwood Cline Avg Daily Production Curves1 900 30d IP 286 BOEPD 800 Barracuda 45 2H 700 Marlin 47 2H Lee 59 10H Lee 59 10H 600 Hammerhead 33 8H 500 BOEPD 30d IP 371…
  57. INVESTOR DAY – Apache Corp – slide 57
    CLINE SHALE STEP CHANGE IN COMPLETIONS EUR (MBOE) 600 2013 Optimized 1-mile lateral +40% 500 2013 Early development 1-mi. lateral 400 300 200 100 0 2013 2013 2014 Early development Optimized 1-mi. lateral 1.5-mi.…
  58. INVESTOR DAY – Apache Corp – slide 58
    CLINE SHALE DRILLING INVENTORY ECONOMICS Cline 1 BOE/D 450 D+C Cost MM 8.5 400 EUR MBOE 536 350 300 30-Day IP Rate Boed 420 250 % Oil / Gas / NGL 67% / 14 % / 19% 200 WI / NRI 78% / 60% 150 100 ROR 23% 50 Total Inventory…
  59. INVESTOR DAY – Apache Corp – slide 59
    MIDLAND BASIN VERTICAL MULTI-ZONE STACKED PAY Squire 9007 Frances Gunn A33 (Fusselman) (Clearfork - Wolfcamp) 30-day IP BOE/D 577 30-day IP BOE/D 130 Acres (000) 950 (635 net) EUR MBOE 813 EUR MBOE 134 Planned 2014 Wells 170…
  60. INVESTOR DAY – Apache Corp – slide 60
    MIDLAND BASIN VERTICAL DRILLING INVENTORY ECONOMICS BOE/D Spraberry Vertical 80 D+C Cost MM 2.0 70 EUR MBOE 148 60 30-Day IP Rate Boed 73 50 % Oil / Gas / NGL 49% / 26% / 25% 40 WI / NRI 89% / 72% 30 ROR 23% 20 Total Inventory…
  61. INVESTOR DAY – Apache Corp – slide 61
    MIDLAND BASIN TRACK RECORD DEADWOOD: EXECUTION & IMPACTIVE GROWTH Squire 9007 Deadwood Gross Production (Fusselman) Mcf/d Bo/d Program shift 30d IP 577 BOEPD 90,000 to horizontals 18,000 MCFD BOPD 80,000 16,000 70,000 14,000…
  62. INVESTOR DAY – Apache Corp – slide 62
    CENTRAL BASIN PLATFORM & N/NW SHELF PRODUCTION LEGACY OF THE BASIN, WITH UPSIDE North Shelf Acres (000) 1,800 (850 net) Planned 2014 Wells 328 (105 Hz) Northwest Shelf Resources 1,275 MMBOE net Central Basin Three Bar Platform…
  63. INVESTOR DAY – Apache Corp – slide 63
    CENTRAL BASIN PLATFORM HORIZONTALS CONVENTIONAL OIL PLAYS Wichita Albany TBSU 119H Carmichael 1501H 30-day IP BOE/D 769 30-day IP BOE/D 507 Apache remains a leader in the horizontal EUR MBOE 552 EUR MBOE 321 exploitation of…
  64. INVESTOR DAY – Apache Corp – slide 64
    CENTRAL BASIN PLATFORM HORIZONTALS DRILLING INVENTORY ECONOMICS Wichita Albany BOE/D 500 D+C Cost MM 5.6 450 EUR MBOE 367 400 350 30-Day IP Rate Boed 477 300 % Oil / Gas / NGL 60% / 21% / 19% 250 WI / NRI 78% / 62% 200 150 ROR…
  65. INVESTOR DAY – Apache Corp – slide 65
    CENTRAL BASIN PLATFORM VERTICALS CONVENTIONAL OIL PLAYS Lockhart B-12 13 30-day IP BOE/D 120 Andrews Unit 549 EUR MBOE 151 30-day IP BOE/D 188 Plays benefit from large-scale established EUR MBOE 273 infrastructure network Predictable…
  66. INVESTOR DAY – Apache Corp – slide 66
    CENTRAL BASIN PLATFORM VERTICALS DRILLING INVENTORY ECONOMICS BOE/D Clearfork/Tubb 100 D+C Cost MM 1.7 90 80 EUR MBOE 112 70 30-Day IP Rate Boed 90 60 % Oil / Gas / NGL 61% / 24% / 16% 50 WI / NRI 78% / 69% 40 30 ROR 35% 20…
  67. INVESTOR DAY – Apache Corp – slide 67
    DELAWARE BASIN OPENING UP MULTIPLE NEW AREAS Pecos Bend Acres (000) 550 (215 net) Dixieland - Under development - Planning stage Planned 2014 Wells 28 (21 Hz) - 2 rigs active, 3 landing zones Drilling Inventory 599 MMBOE net…
  68. INVESTOR DAY – Apache Corp – slide 68
    DELAWARE BASIN PECOS BEND: WOLFCAMP & BONE SPRING DEVELOPMENT Chaparral 89 101H 3rd Bone Spring Boe/d 30-day IP BOE/D 1,226 1,500 EUR MBOE 763 Chaparral 89 1H 1,200 Robin 8 1H Chaparral 89 101H Delaware 900 Type Curve Basin…
  69. INVESTOR DAY – Apache Corp – slide 69
    DELAWARE BASIN DRILLING INVENTORY ECONOMICS Delaware Horizontal BOE/D 800 D+C Cost MM 7.9 700 EUR MBOE 552 600 30-Day IP Rate Boed 786 500 % Oil / Gas / NGL 45% / 28% / 27% 400 300 WI / NRI 94% / 72% 200 ROR 22% 100 Total…
  70. INVESTOR DAY – Apache Corp – slide 70
    LONG TERM PERFORMANCE DELIVERING AND EXCEEDING EXPECTATIONS 140 125 127 120 108 105 100 92 80 MBOE/D 60 40 20 0 2011 2012 2013 2012 Projections Actual / Projections 73
  71. INVESTOR DAY – Apache Corp – slide 71
    CENTRAL John Christmann February 26, 2014
  72. INVESTOR DAY – Apache Corp – slide 72
    APACHE CENTRAL DELIVERING HORIZONTAL LIQUIDS GROWTH Currently running 29 rigs APA Hz rigs APA Vt rigs (28) (1) Oklahoma Texas 50 miles APA Acreage 1 driller in the deep portion of the Anadarko 1.8 million acres (1.0…
  73. INVESTOR DAY – Apache Corp – slide 73
    CENTRAL REGION: CONSISTENT, PROFITABLE GROWTH LIQUIDS GROWTH UP 122% YEAR OVER YEAR Mboe/d Rigs (bars) (line) Production & Operated Rig Count Growth 100 35 2013 Results 90 30 80 91.3 MBOE/D Average Production 25 +49.2% YoY…
  74. INVESTOR DAY – Apache Corp – slide 74
    REGION GROWTH SUBSTANTIALLY INCREASING ACTIVITY 2014 2010 2011 2012 2013 Plan Employees 236 227 384 474 530 Investment 0.5B 0.5B 1.1B 1.7B 1.7B Production 12%-15% (MBOE/D)1 39.1 44.6 61.2 91.3 growth Rigs 9 9 18 27 32 New Hz 59…
  75. INVESTOR DAY – Apache Corp – slide 75
    HISTORY OF GROWTH CONSISTENT LIQUIDS-DRIVEN GROWTH 2014P 12-15% 100 Growth Liquids % of Mix 91 2009 Actual 7% 90 2010 Actual 11% 2011 Actual 20% 80 2012 Actual 34% 2013 Actual 50% 70 45 61 60 MBOE/D 50 45 39 40 36…
  76. INVESTOR DAY – Apache Corp – slide 76
    TOTAL RESOURCE Net Resources1 Gross / Net Acreage1 5.2 BBOE 1.8MM/ 1.0MM Granite Wash Tonkawa Gross Acreage 855 Gross Acreage 822 Net Acreage 435 Net Acreage 407 Net MMBOE 3,849 Net MMBOE 242 Cleveland Marmaton Gross Acreage…
  77. INVESTOR DAY – Apache Corp – slide 77
    CENTRAL REGION 2013 DRILLING HIGHLIGHTS EXCELLENT RESULTS IN EVERY PLAY CLEVELAND CLEVELAND Knox Pipkin 28 4 Flathers 232 1H 1,284 BOE/D 888 BOE/D Sep 8, 2013 May 17, 2013 LOWER MARMATON TONKAWA 3,676 4,295 Burns Family Trust 1-3H…
  78. INVESTOR DAY – Apache Corp – slide 78
    CENTRAL REGION FIVE MILES OF PROVEN PRODUCTION Texas Panhandle Deep Basin Northern Oklahoma Generalized Cross-Section of Anadarko Basin Multiple stacked objectives is why we like the basin 81
  79. INVESTOR DAY – Apache Corp – slide 79
    GRANITE WASH CONSISTENCY, ATTRACTIVE ECONOMICS, RUNNING ROOM Acres (000) 855 (435 net) 2014 New Wells 62 Resources 3,849 MMBOE net Hugoton Lower Permian Wolfcampian Brown Dolomite Target Formation 15 mi Chase / Council…
  80. INVESTOR DAY – Apache Corp – slide 80
    GRANITE WASH ECONOMICS, RECENT WELLS Drilling Inventory Economics Recent Well Highlights BOE/D 1,600 Stiles 18 25-18H Bartz 19 20-19H Caldwell Granite Wash A 1,400 30-day IP BOE/D 1,585 30-day IP BOE/D 1,466 1,200 EUR MBOE 1,324…
  81. INVESTOR DAY – Apache Corp – slide 81
    GRANITE WASH RESULTS VS. TYPE CURVE 10,000 1,000 BOEPD 100 Type Curve Bartz 19 15-19H 10 Bartz 19 SL 25-19H Weatherly SL 6-1H Tyler 4-55H Stiles 10-16H 1 0 30 60 90 120 150 180 210 240 270 300 330 360 Days…
  82. INVESTOR DAY – Apache Corp – slide 82
    CLEVELAND ACCELERATED ACTIVITY IN 2014 Acres (000) 758 (429 net) 2014 New Wells 100 Resources 397 MMBOE net Hugoton Lower Permian Wolfcampian Brown Dolomite Target Formation 15 mi Chase / Council Grove APA acreage Admire…
  83. INVESTOR DAY – Apache Corp – slide 83
    CLEVELAND TRACK RECORD OF STRONG PRODUCTION GROWTH 7,000 Liquids BOE 6,000 5,000 4,000 3,000 2,000 15 mi 1,000 APA acreage - Strong history of liquids driven growth, with 60 horizontals drilled by Apache in…
  84. INVESTOR DAY – Apache Corp – slide 84
    CLEVELAND ECONOMICS, RECENT WELLS Drilling Inventory Economics Recent Well Highlights BOE/D Knox Pipkin 28-4H Mekeel 303 3H 450 30-day IP BOE/D 1,051 30-day IP BOE/D 592 400 EUR MBOE 360 EUR MBOE 330 350 Flathers 232-1H 300…
  85. INVESTOR DAY – Apache Corp – slide 85
    CLEVELAND RESULTS VS. TYPE CURVE 10,000 Type Curve Hoover 216-4H Knox Pipkin 28-4H Flathers 232-1H 1,000 Leland Meekel 226-4H Meekel 303-3H BOEPD 100 10 1 0 30 60 90 120 150 180 210 240 270 300 330 360 Days…
  86. INVESTOR DAY – Apache Corp – slide 86
    TONKAWA PROLIFIC OIL PLAY MOVING TO PAD DEVELOPMENT Acres (000) 822 (407 net) 2014 New Wells 93 Resources 242 MMBOE net Hugoton Lower Permian Wolfcampian Brown Dolomite Target Formation 15 mi Chase / Council Grove APA…
  87. INVESTOR DAY – Apache Corp – slide 87
    OPERATIONAL EXCELLENCE INCREASING EFFICIENCIES IN TONKAWA 50 41 Drilling Days 34 30 23 22 24 25 0 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 5.0 39% Cost Completion Costs 3.10 Reduction 2.75 2.50 2.35 2.5 2.05…
  88. INVESTOR DAY – Apache Corp – slide 88
    TONKAWA ECONOMICS, RECENT WELLS BOE/D Drilling Inventory Economics Recent Well Highlights 350 Denney 2-19H 300 30-day IP BOE/D 571 EUR MBOE 511 250 200 Beavin 24-17-25 2H 150 30-day IP BOE/D 682 100 EUR MBOE 319 50 0 0…
  89. INVESTOR DAY – Apache Corp – slide 89
    TONKAWA RESULTS VS. TYPE CURVE 10,000 Type Curve Beavin 24-17-25 2H Denney 2-19H Chenette 2-9H Oak 2-16H Allen 2-15H 1,000 McCracken 2-16H Teague 1-23H BOEPD 100 10 1 0 30 60 90 120 150 180 210 240 270 300 330…
  90. INVESTOR DAY – Apache Corp – slide 90
    MARMATON ACTIVITY IN PLAY EXPANDING TO DEEP BASIN Acres (000) 609 (295 net) SHELF 2014 New Wells 64 Marmaton Shelf 36 Lower Marmaton 28 DEEP Resources 271 MMBOE net BASIN 15 mi Hugoton Lower Permian APA acreage Wolfcampian…
  91. INVESTOR DAY – Apache Corp – slide 91
    MARMATON SHELF ECONOMICS, RECENT WELLS Drilling Inventory Economics Recent Well Highlights BOE/D 300 Carolea 594 1H 30-day IP BOE/D 239 250 EUR MBOE 240 200 150 100 Beavin 1-24H Wheat 678 4H (2012) 30-day IP BOE/D 336 30-day…
  92. INVESTOR DAY – Apache Corp – slide 92
    MARMATON SHELF RESULTS VS. TYPE CURVE 10,000 Type Curve Randall 640-1H Wheat 678-4H 1,000 Wheat 678-3H BOEPD 100 10 1 0 30 60 90 120 150 180 210 240 270 300 330 360 Days On 95
  93. INVESTOR DAY – Apache Corp – slide 93
    LOWER MARMATON: AN EMERGING DEEP PLAY ECONOMICS, RECENT WELLS BOE/D Drilling Inventory Economics Recent Well Highlights 1,800 Merritt 1-29H Merritt 1-28H 1,600 30-day IP BOE/D 1,054 30-day IP BOE/D 2,522 1,400 EUR MBOE 985 EUR…
  94. INVESTOR DAY – Apache Corp – slide 94
    LOWER MARMATON RESULTS VS. TYPE CURVE 10,000 Type Curve Mamie 5-4HC Bombay 2-32H Merritt 1-28H Skyy 2-32H Frank 1-34H BOEPD 1,000 100 0 30 60 90 120 150 180 210 240 270 300 330 360 Days On 97
  95. INVESTOR DAY – Apache Corp – slide 95
    COTTAGE GROVE HIGH ROR HORIZONTAL OIL PLAY Acres (000) 222 (93 net) 2014 New Wells 28 Resources 9 MMBOE net Hugoton Lower Permian Wolfcampian Brown Dolomite Target Formation 15 mi Chase / Council Grove APA acreage Admire…
  96. INVESTOR DAY – Apache Corp – slide 96
    COTTAGE GROVE ECONOMICS, RECENT WELLS BOE/D Drilling Inventory Economics Recent Well Highlights 800 Stiles 16 15-16H 30-day IP BOE/D 455 Stiles 18 18-18H 700 EUR MBOE 435 30-day IP BOE/D 662 EUR MBOE 438 600 500 Stiles 1 18-1H…
  97. INVESTOR DAY – Apache Corp – slide 97
    COTTAGE GROVE RESULTS VS. TYPE CURVE 10,000 Type Curve Stiles 68 27-68H Stiles 4 18-4H Stiles 3 24-3H 1,000 Bartz 19 21-19H BOEPD 100 10 1 0 30 60 90 120 150 180 210 240 270 300 330 360 Days On 100
  98. INVESTOR DAY – Apache Corp – slide 98
    CANYON WASH BIVINS RANCH ACHIEVED 10,000 BOPD IN 23 MONTHS Boys Ranch 116 5 Acres (000) 150 (100 net) Canyon Wash 30 Day IP 2,246 BOE/D 2014 New Wells 10 Resources 107 MMBOE net Bivins LIT 1101 Canyon Lime Vertical test…
  99. INVESTOR DAY – Apache Corp – slide 99
    CENTRAL REGION BIVINS RANCH HORIZONTAL CANYON LIMESTONE EXPLORATION Continental Resources LS Ranch 642-1H Apache Celeron APA 10% WI Bivins LIT 1101 Bivins 1-39P Canyon LM successful vertical test Accumulated 9 MBO from…
  100. INVESTOR DAY – Apache Corp – slide 100
    CENTRAL REGION EXCEEDING EXPECTATIONS 100 91 90 82 80 70 61 60 56 MBOE/D 50 45 40 30 20 10 0 20112011 2012 2013 103 2012 Base Projections Actual

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