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BAML ENERGY CONFERENCE – Apache Corp

Apache Corp · Nov 22, 2013 · 44 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. BAML ENERGY CONFERENCE – Apache Corp – slide 1
    BAML ENERGY CONFERENCE November 22, 2013 Roger Plank
  2. BAML ENERGY CONFERENCE – Apache Corp – slide 2
    TRACK RECORD OF LONG-TERM GROWTH APACHES PORTFOLIO EVOLUTION N.A. Onshore MBOE/D, Net Liquids Expansion 800 750 700 First International Continued International 650 Entry Expansion 600 550 500 450 400 350 300 250 200 150…
  3. BAML ENERGY CONFERENCE – Apache Corp – slide 3
    PORTFOLIO REBALANCING EXPANDING NORTH AMERICA ONSHORE LIQUIDS 2009 Production by Region 3Q 13 Pro Forma Production by Region* 583 MBOE/D 625 MBOE/D Australia Argentina Australia Argentina North Sea 7% 8% Central 9% 7% 6% North…
  4. BAML ENERGY CONFERENCE – Apache Corp – slide 4
    PORTFOLIO OF LEADING POSITIONS Growing through the drillbit: 1 driller onshore U.S. (nearly 80 rigs) 1 in Permian Basin (45 rigs/ 20 Hz) 2 in Anadarko Basin (31 rigs / 29 Hz) 1 Independent operator in UK North Sea (Brent oil) 1…
  5. BAML ENERGY CONFERENCE – Apache Corp – slide 5
    2013 ROADMAP TO VALUE CREATION Accelerate North America onshore drilling 35%+ N.A. onshore liquids growth (up from 25% initial guidance) Advance major growth projects (including LNG) 2.2B capex for project development (1.2B for…
  6. BAML ENERGY CONFERENCE – Apache Corp – slide 6
    2013 ROADMAP TO VALUE CREATION Rebalance portfolio for consistent, profitable growth Closed 7 billion asset sales and monetizations Pay down debt (financial flexibility) Board authorization to repurchase up to 30 MM shares Refocused…
  7. BAML ENERGY CONFERENCE – Apache Corp – slide 7
    3RD QUARTER 2013 RESULTS Adjusted income: 932 BN* Cash flow: 2.7 BN* N.A. onshore liquids growth: 35% increase YoY Net daily production: 784 MBOE/D 54% Liquids 47% N.A. Onshore 29% Permian + Central * Cash from operations…
  8. BAML ENERGY CONFERENCE – Apache Corp – slide 8
    BEST IN CLASS N.A. ONSHORE LIQUIDS GROWTH 3Q 2013 VS. 3Q 2012 40% 35% 35% 33% 30% 25% 25% 20% 16% 15% 15% 10% 5% 4% 0% Apache A B C D E 9 Peers include: Anadarko, Chesapeake, Devon, EOG, and Occidental.
  9. BAML ENERGY CONFERENCE – Apache Corp – slide 9
    ACCELERATION OF N.A. LIQUIDS GROWTH LIQUIDS (NET BARRELS/DAY) NET BOE/DAY 160,000 250,000 Permian Central 149 Permian Central 226 140,000 200,000 120,000 100,000 150,000 80,000 100,000 89 60,000 39 40,000 50,000…
  10. BAML ENERGY CONFERENCE – Apache Corp – slide 10
    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%…
  11. BAML ENERGY CONFERENCE – Apache Corp – slide 11
    RAMPING UP ACTIVITY IN THE PERMIAN 6X INVESTMENT, 8X OPERATED RIG COUNT IN 3 YEARS 2010 2011 2012 2013E Employees 345 662 816 896 Investment 0.4B 1.2B 2.3B 2.4B + Avg Rigs 5 25 32 41 Hz Wells 20 40 104 200 + Drilled Total…
  12. BAML ENERGY CONFERENCE – Apache Corp – slide 12
    PERMIAN OIL: DELIVERING PROFITABLE GROWTH MBOE/D Avg. Op. (Bar) Rigs (Line) Resource Summary* 135 45 Acreage: Gross (Net) 3.5 MM (1.6 MM) Net Resources 3.8 BBOE 120 40 Identified Locations 34,518 105 Mariner 35 Closing 2013…
  13. BAML ENERGY CONFERENCE – Apache Corp – slide 13
    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…
  14. BAML ENERGY CONFERENCE – Apache Corp – slide 14
    ITS STILL EARLY INNINGS APACHE HORIZONTAL PLAY ACTIVITY 2010-13 Midland Deadwood Shale Plays Drilled and Proved (11) Nine New Plays In 2013 15
  15. BAML ENERGY CONFERENCE – Apache Corp – slide 15
    WOLFCAMP SHALE: BUILDING ON 2012 SUCCESS Apache Wolfcamp Shale Summary Wolfcamp APA Gross / Net Acres (000) 450 / 345 Shale Horizontal Wells Drilled 2012 21 Horizontal Wells Planned 2013 90+ Drilling Locations 971 Inventory Net…
  16. BAML ENERGY CONFERENCE – Apache Corp – slide 16
    WOLFCAMP SHALE IN IRION CO. WOLFCAMP SHALE IN FULL DEVELOPMENT MODE Scott Sugg Lease: 40,000 65 55 Wells 34 Producers 29 60 5,100 BO Daily Prod: 6,400 35,000 55 ++15.6 MMCFG 8.6 MMCFG 27,609 MCFD 30,000 50 45 25,000 40…
  17. BAML ENERGY CONFERENCE – Apache Corp – slide 17
    WOLFCAMP SHALE: EXPANDING ACTIVITY NORTH Company A: DL Hutt C 1H APA Miller 36 1HM 24 hr IP: 1,693 BOEPD 24 hr IP: 1,241 BOEPD Midland Co. 75% Oil 4878 lateral 7,380 lateral Company C Currie-Glass 10 151HU APA Miller 36 2 HU IP:…
  18. BAML ENERGY CONFERENCE – Apache Corp – slide 18
    CLINE SHALE (AKA WOLFCAMP D) EXPANDING HZ PROGRAM Apache Cline Shale Summary APA Gross /Net Acres (000) 650/520 Horizontal Wells Drilled 2012 6 Horizontal Wells Planned 2013 40 Drilling Locations 2,321 Deadwood area Inventory Net…
  19. BAML ENERGY CONFERENCE – Apache Corp – slide 19
    CLINE SHALE (AKA WOLFCAMP D) LEADING GLASSCOCK CO. CLINE PLAYER Average Daily Production 900 Marlin Barracuda 45 2H 800 Marlin 47 2H Lee Squire 700 Type Curve* 600 Red Snapper 500 BOEPD Hammerhead 400 Huitt 300…
  20. BAML ENERGY CONFERENCE – Apache Corp – slide 20
    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 2011 2012 2013E 2014E 2015E 2016E 21
  21. BAML ENERGY CONFERENCE – Apache Corp – slide 21
    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 90 178 365 + Total Wells 87 113 196 375 + Nearly doubling…
  22. BAML ENERGY CONFERENCE – Apache Corp – slide 22
    CENTRAL REGION: CONSISTENT, PROFITABLE GROWTH Resource Summary* MBOE/D Avg. Op (Bar) Rigs (Line) Acreage: Gross 2.0 MM 100 35 Net 1.0 MM 90 Net Resources 5.4 BBOE 30 80 Identified 32,546 Locations 70 25 Cordillera Closing…
  23. BAML ENERGY CONFERENCE – Apache Corp – slide 23
    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 24
  24. BAML ENERGY CONFERENCE – Apache Corp – slide 24
    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…
  25. BAML ENERGY CONFERENCE – Apache Corp – slide 25
    CENTRAL REGION 2013 DRILLING HIGHLIGHTS Cleveland Tonkawa Tonkawa 541 BOPD 967 MCFD 610 BOPD 1,575 MCFD 719 BOPD 1,800 MCFD Cleveland 1,079 BOPD 1,229 Tonkawa MCFD 1,059 BOPD 1,490 MCFD Canyon GW 1,983 BOPD 1,576 MCFD…
  26. BAML ENERGY CONFERENCE – Apache Corp – slide 26
    CANYON WASH ZERO TO TEN THOUSAND BOPD IN 24 MONTHS 147 gross (100 Type Log Boys Ranch 116 5 Paint Ridge Acres (000): GR Res NPhi DT Oldham, Tx 21 Producing Wells net) 30 Day IP Rate 2,246 BOE/D Current Rate 12,900 BOE/D 3Q Drilled…
  27. BAML ENERGY CONFERENCE – Apache Corp – slide 27
    CENTRAL REGION ITS STILL EARLY INNINGS EVOLVING PLAY OUTLINES AND PLANNED 2013 OPERATED TESTS Cherokee/Atoka Cleveland 10 Wells 35 + Wells Tonkawa 100+ Wells Marmaton Shelf 20+ Wells Canyon Wash 15+ Wells Douglas…
  28. BAML ENERGY CONFERENCE – Apache Corp – slide 28
    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 29
  29. BAML ENERGY CONFERENCE – Apache Corp – slide 29
    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…
  30. BAML ENERGY CONFERENCE – Apache Corp – slide 30
    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,…
  31. BAML ENERGY CONFERENCE – Apache Corp – slide 31
    APPENDIX 32
  32. BAML ENERGY CONFERENCE – Apache Corp – slide 32
    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…
  33. BAML ENERGY CONFERENCE – Apache Corp – slide 33
    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…
  34. BAML ENERGY CONFERENCE – Apache Corp – slide 34
    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…
  35. BAML ENERGY CONFERENCE – Apache Corp – slide 35
    RECENT EGYPT DISCOVERIES CONFIRM OPPORTUNITIES IN WESTERN DESERT 36
  36. BAML ENERGY CONFERENCE – Apache Corp – slide 36
    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 &…
  37. BAML ENERGY CONFERENCE – Apache Corp – slide 37
    AUSTRALIA: WORLD CLASS DEVELOPMENT PIPELINE 3Q 2013 Update Apache Acreage 40 Miles 3Q13 Production 54,144 BOE/D (35% oil) 3Q13 Avg. Rigs 2 70 MBOE/D expected to come online over next 4 years with major projects including:…
  38. BAML ENERGY CONFERENCE – Apache Corp – slide 38
    LNG DEVELOPMENT: MULTI-DECADE PRODUCTION 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…
  39. BAML ENERGY CONFERENCE – Apache Corp – slide 39
    ILLUSTRATIVE WHEATSTONE LNG CASH FLOWS PRELIMINARY PROJECTIONS OF 20 YEAR CONTRACTS THROUGH 2036 2017E 2018E 2019E 2020E 2021E Net Production (MBOE/D) 14 30+ MM Estimated Payback Period 4.5 Years 1,250 1,000 750 500…
  40. BAML ENERGY CONFERENCE – Apache Corp – slide 40
    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…
  41. BAML ENERGY CONFERENCE – Apache Corp – slide 41
    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 3Q Drilled and 31 gross wells Completed: Hogshooter…
  42. BAML ENERGY CONFERENCE – Apache Corp – slide 42
    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 3Q Drilled and 15 gross wells…
  43. BAML ENERGY CONFERENCE – Apache Corp – slide 43
    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 3Q Drilled and 11 gross wells Hogshooter Completed:…
  44. BAML ENERGY CONFERENCE – Apache Corp – slide 44
    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 Inventory: 520+ Hogshooter…

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