33RD ANNUAL RAYMOND JAMES INSTITUTIONAL INVESTORS CONFERENCE ROGER PLANK MARCH 5, 2012
WHY APACHE NOW Consistent delivery of strong financial results Unrelenting focus on rates of return Benefitting from highmargin product mix (Oil) Planned ramp up of drilling activity and capital Future production visibility via…
2011: A RECORD YEAR 748 MBOE/D net Up 14 % YOY (50% liquids) 4.5 BN earnings Up 50 % YOY 10.2 BN* cash flow Up 39 % YOY 3 BN boe in reserves Alltime high (46% liquids) *Cash from operations before changes in operating assets…
DISCIPLINED RATE OF RETURN FOCUS 2011 AFTERTAX DRILLING ROR* Region 2011 RoR North America 24% International 48% Total Company 33% 6 * Based on strip prices as of Dec 2011. Drilling RoR includes required facilities and equipment…
APACHES PORTFOLIO EVOLUTION PRODUCTION Jan 2010 Jan 2012 Pro forma* 36% increase Permian 10% in production 1% 12% Central 8% 13% 17% GC Onshore 9% Canada 16% GOM Shelf 12% 29% Deepwater 20% 2% 4% North Sea 6% 8% Australia…
BENEFITING FROM HIGH MARGIN PRODUCT MIX TODAY LIQUIDS REPRESENT 50% OF PRODUCTION BUT 80% OF REVENUES Revenue by Product Revenue by Index 100% Intl Gas 6% Other 8% 90% NA Gas 14% NYMEX Gas 14% 80% 70% 16% WTI NA Liquids…
NORTH AMERICAN GROWTH ENGINES: PERMIAN BASIN Premier position 2010 2011 2012E* 2nd largest operator CAPEX 0.4B 1.2B 1.7B Significant increase in activity Rigs 5 25 28 Extensive inventory in multiple Hz Wells 20 40 90 plays Total…
NORTH AMERICAN GROWTH ENGINES: CENTRAL REGION (ANADARKO BASIN) Premier position in Anadarko Basin 2010 2011 2012E* Recent bolton Cordillera CAPEX 0.5B 0.5B 0.8B acquisition** Rigs 10 10 16 Increases exposure to liquidsrich…
WORLDWIDE GROWTH ENGINE: DRILLING BACKLOG RUNNING ROOM FOR LONG TERM GROWTH Region 2011 Capital 2012 Capital % GROSS ACRES BY COUNTRY (MM)* Plan (MM)* Change Total Gross Acreage = 41 million Australia 1,000 1,800 80% North Sea…
MEGA PROJECT PIPELINE +190 MBOE/D FROM CURRENT MEGA PROJECTS UNDER DEVELOPMENT 200 180 Wheatstone 160 140 Kitimat 120 MBOE/D 100 Heidelberg Qasr Compression 80 Lucius Balnaves 60 Varanus Island Compression 40…
EXPANDING EXPLORATION FOCUS: 2012 PLANNED ACTIVITY Alaska Cook Inlet North Sea Oil Exploration North American Oil/liquids Plays Canyon Wash Egypt Paleozoic and Stratigraphic Gulf Coast Deep Plays Plays Wolfcamp GOM…
PROFITABLE LONGTERM GROWTH 900 MBOE/D, Net Expected Growth of 713% (5095 MBOE/D)* 800 700 600 500 400 300 200 100 0 15 *2012 production estimates based on continuing operations
WHY APACHE NOW Consistent delivery of strong financial results Unrelenting focus on rates of return Benefitting from unique product mix (Oil) Planned ramp up of drilling activity and capital Future production visibility via Apache…
QUESTIONS
APPENDIX
CORDILLERA ACQUISITION HIGHLIGHTS 2.85 Billion transaction (expected close 2Q 2012) COMPOSITE FAIRWAY 254,000 net acres in a prolific fairway Liquidsrich stacked pays 60 productive horizons across 5,000+ of section 14,000 potential…
GULF OF MEXICO DEEPWATER REGION 2011 Highlights 2012 Plans 2011 production: 15,436 Focus exploration on proven BOE/d; 100% YOY growth plays Three projects with mid2012 Drill up to 9 wells IP Heidelberg appraisal drilling…
GULF COAST ONSHORE REGION M IS S TE X A S Oil L O U IS IA N A Gulfport Oil & Rich Gas New Orleans HOUSTON (Giddings, Magnet Withers, Barbers Hill) Oil & Rich Gas (Golden Meadow) Dry Gas (Atchafalaya Bay) Rich Gas…
CANADA REGION 2011 Highlights 2012 Plans 2011 production 125,636 BOE/d Drill 170 wells EOY rig rate at 8 Focus on oil and liquids rich Glazier, Divestiture of noncore properties Viking, EOR and Bluesky 23 Production growth…
SECURING MARKETS: KITIMAT LNG Nominally 5 million metric tons of per annum (700 MMcf/d of natural gas) export capacity for the first train Apache: 40% interest + operator (EOG and Encana have a 30% interest) 287mile pipeline…
AUSTRALIA REGION 2011 Highlights 2012 Plans 2011 production 69,074 BOE/d Develop Coniston and Belnaves Wheatstone LNG / Julimar project oil fields commenced development Macedon gas field development First gas from Halyard…
JULIMAR & WHEATSTONE DEVELOPMENT Julimar and Brunello Field Development Provides natural gas feedstock for Wheatstone LNG plant Carnarvon Basin discoveries in 2007 Apache 65% (operator), KUFPEC 35% Estimated reserves exceed 2.1…
NORTH SEA REGION 2011 Highlights 2011 production 54,295 BOE/d EOY rig rate at 4 Drilled 16 wells at Forties Charlie 43 initial rate of 12.6 Mb/d Charlie 22 initial rate of 11.9 Mb/d New 4D seismic interpretation Acquired Mobil…
EGYPT REGION 2011 Highlights 2012 Plans 2011 production 164,864 BOE/d 250 wells planned including 68 exploration EOY rig rate at 26 wells Quick Hits on BP acreage 3 Continued exploration and development on field discoveries BP…
ARGENTINA REGION 2011 Highlights 2011 production 48,000 BOE/d EOY rig rate at 4 Completed the 1st horizontal, multifrac, shale gas well in Latin America Achieved record production Mboe/d 2012 Plans Made entry into…
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