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APACHE PERMIAN – Apache Corp

Apache Corp · Nov 14, 2012 · 35 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. APACHE PERMIAN – Apache Corp – slide 1
    APACHE PERMIAN John Christmann November 14, 2012
  2. APACHE PERMIAN – Apache Corp – slide 2
    APACHE: PROFITABLE LONG-TERM GROWTH MBOE/D, Net 850 800 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 0 2012E 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006…
  3. APACHE PERMIAN – Apache Corp – slide 3
    DELIVERING, BUILDING STRENGTH Production per Share (BOE/share) Reserves per Share (BOE/share) 0.75 9.00 0.60 7.50 6.00 0.45 4.50 0.30 3.00 0.15 1.50 0.00 0.00 Cash Flow per Share (/share) Adjusted Earnings per Share…
  4. APACHE PERMIAN – Apache Corp – slide 4
    APACHE NOW: REALIZING UPSIDE Grow through the drill bit Leverage expanded U.S. onshore position 67K locations, 9.2 BN BOE Multi-year outlook: 6-9% production growth per share, with upside Living within our means Global…
  5. APACHE PERMIAN – Apache Corp – slide 5
    3RD QUARTER 2012 RESULTS 771 MBOE/D net (51% liquids) Impacted by 25,000 BOE/d of deferrals 2.4 billion cash flow* 861 million adjusted earnings* Permian and Central regions delivering double-digit YoY production growth…
  6. APACHE PERMIAN – Apache Corp – slide 6
    DIVERSIFIED PRODUCTION Q3 2012 PRODUCTION: 771 MBOE/D Australia Argentina North Sea 8% 6% Central GOM Shelf 9% 9% 12% 41% U.S. Egypt 20% 14% 4% Permian 2% 16% Gulf Coast - Onshore GOM Canada Deepwater 7
  7. APACHE PERMIAN – Apache Corp – slide 7
    APACHE PERMIAN A MAJOR GROWTH BUSINESS UP 18% YOY New Mexico Texas 112 MBOE/D net (73% Liquids) +18% growth YOY 3.7 million acres (1.8 million net) +200% last 2 years Midland Increasingly Drilling More Hz 201 total Q3 wells 26…
  8. APACHE PERMIAN – Apache Corp – slide 8
    ACCELERATING ACTIVITY 5X INVESTMENT, 6X OPERATED RIG COUNT IN 2 YEARS Apache Permian Evolution: 2010 2011 2012E Employees 345 662 792 Investment 0.4B 1.2B 2.1B Cash Flow 1.1B 1.7B 1.8B Rigs 5 25 33 Horizontal 20 40 124…
  9. APACHE PERMIAN – Apache Corp – slide 9
    PERMIAN OIL: DELIVERING ASSET UPSIDE Net MBOE/D 120 40 Operated Rigs (Bar) (Line) Mariner 35 100 Closing BP Closing 30 80 APA Permian Region 25 Established 60 20 15 40 10 20 5 0 0 2010 2011 2012 10
  10. APACHE PERMIAN – Apache Corp – slide 10
    SOLID COMPETITIVE POSITION Apache the top operator in the Permian Basin 40 35 34 Total Active Rig Count 31 30 25 25 21 20 20 20 15 12 12 11 10 10 9 9 9 7 7 5 0 11 Source: Bentek September 2012
  11. APACHE PERMIAN – Apache Corp – slide 11
    CURRENT PLAY INVENTORY* 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 Locations 17,816 Net…
  12. APACHE PERMIAN – Apache Corp – slide 12
    MIDLAND BASIN MULTI-PLAY GROWTH ENGINE APA acreage Leonard Lime Midland Vertical Target Cline Shale Target Midland Basin Leonard Wolfcamp Shale Target Cline Shale Leonard Upper Spraberry Wolfcamp Shale Lower Spraberry…
  13. APACHE PERMIAN – Apache Corp – slide 13
    MIDLAND BASIN VERTICAL MULTI-STACKED VERTICAL PAYS Hartley 38-9 (Wolfcamp/Strawn) Squire 9 5 Craig 16 5 (Devonian/U Wolfcamp) Acres (000) 1,100 (625 net) (Fusselman) 30-day IP BOE/D 408 30-day IP BOE/D 451 30-day IP BOE/D 196…
  14. APACHE PERMIAN – Apache Corp – slide 14
    MIDLAND BASIN DEADWOOD: IMPACTIVE GROWTH Oil (Gross MBBL/D) Gas (Gross MMCF/D) 16 80 Apache Operated 14 70 12 60 10 50 8 40 6 30 3rd Party Operated 4 20 2 10 0 0 Aggressive growth: production up 7.5x to 23MBOE/D in 23…
  15. APACHE PERMIAN – Apache Corp – slide 15
    MIDLAND BASIN VERTICAL DRILLING INVENTORY ECONOMICS BOE/D Midland Stacked Vertical Well* 120 D+C Cost MM 2.0 100 EUR MBOE 144 80 % Liquids 82% 60 ROR 27% 40 WI / NRI 89% / 70% 20 Current Inventory 13,341 (5% PUD) 0 0 6 12…
  16. APACHE PERMIAN – Apache Corp – slide 16
    CLINE SHALE HORIZONTAL EXPLOITATION Apache Acreage in Play Fairway Acres (000) 650 (520 net) Net MBOE/D (Sept) 0.9 2012 New Wells 6 Drilling Inventory 2,321 Locations 642 MMBOE net Deadwood area Running 2 horizontal rigs in 2H…
  17. APACHE PERMIAN – Apache Corp – slide 17
    CLINE SHALE STACKED SHALE HORIZONTAL TARGETS Midland Basin Reservoir Parameters (Lower Cline) Apache Acreage Type Log Leonard Lime Gamma Ray Organic Indicator Prolific, Pennsylvanian age organic shales Average thickness 350 gross…
  18. APACHE PERMIAN – Apache Corp – slide 18
    CLINE SHALE LEADING GLASSCOCK CO. CLINE PLAYER Squire 9-2H PhilMac 1HR Spud Peak IP 30d Avg EUR Lateral Frac 30-day IP BOE/D 306 30-day IP BOE/D 353 Well Date (BOE/D) (BOE/D) (MBOE) (ft.) Stages EUR MBOE 397 EUR MBOE 440 E D Books…
  19. APACHE PERMIAN – Apache Corp – slide 19
    CLINE SHALE DRILLING INVENTORY ECONOMICS BOE/D Cline Shale Well* 450 D+C Cost MM 7.6 400 350 EUR MBOE 423 300 % Liquids 87% 250 200 ROR 28% 150 WI / NRI 85% / 65% 100 Current Inventory 2,321 (3% PUD) 50 0 0 6 12 18 24 30…
  20. APACHE PERMIAN – Apache Corp – slide 20
    WOLFCAMP SHALE PROVEN HORIZONTAL OPPORTUNITY Apache Acreage in Play Fairway Acres (000) 450 (345 net) Net MBOE/D (Sept) 2.2 Wolfcamp 2012 New Wells 25 Shale Drilling Inventory 971 Locations 347 MMBOE net Industry proven…
  21. APACHE PERMIAN – Apache Corp – slide 21
    WOLFCAMP SHALE 1400 FEET OF STACKED PAY SECTIONS Midland Basin Apache Acreage Type Log Leonard Lime Gamma Ray Organic Indicator Reservoir Parameters Dean (Upper & Middle Wolfcamp) Leonard Prolific, Permian age organic shales…
  22. APACHE PERMIAN – Apache Corp – slide 22
    BARNHART WOLFCAMP/CLINE ACTIVITY & RESOURCE POTENTIAL Basin(West) Apach Acreage (East)Shelf Clinch Bennie Scott-Sugg 1H Sugg 2829 2H Sugg-Scott 1208E 1 Acreage Acreage Dean Upper Wolfcamp Middle Wolfcamp Lower…
  23. APACHE PERMIAN – Apache Corp – slide 23
    WOLFCAMP SHALE ROBUST ACTIVITY & UPPER WOLFCAMP RESULTS Scott Sugg Lease: 30d EUR 2 Producers,2 Drilling Peak IP Avg (MBOE Lateral Frac 1 Fracking Well Status (BOE/D) (BOE/D) ) (ft.) Stages Bennie Lease: Daily Prod: 1,053 BO + 4…
  24. APACHE PERMIAN – Apache Corp – slide 24
    WOLFCAMP SHALE DRILLING INVENTORY ECONOMICS BOE/D Wolfcamp Shale Well* 600 D+C Cost MM 7.7 500 EUR MBOE 598 400 % Liquids 91% 300 ROR 44% 200 WI / NRI 79% / 60% 100 Current Inventory 971 (0% PUD) 0 0 6 12 18 24 30 36 42…
  25. APACHE PERMIAN – Apache Corp – slide 25
    CENTRAL BASIN PLATFORM PRODUCTION HEART OF THE BASIN, WITH UPSIDE APA acreage North Shelf Acres (000) 1,700 (780 net) NET MBOE/D (Sept) 58.4 Northwest Shelf 2012 New Wells 146 Drilling Inventory 9,798 Locations Central Basin 691…
  26. APACHE PERMIAN – Apache Corp – slide 26
    CENTRAL BASIN PLATFORM HORIZONTAL REDEVELOPMENT RESULTS Slaughter (San Andres) 3Bar SU (Wichita Albany) Slaughter TBSU 101H 30-day IP BOE/D 919 EUR MBOE 602 3Bar TXL N. McElroy CS Dean A-264H TBSU 105H 30-day IP BOE/D 156…
  27. APACHE PERMIAN – Apache Corp – slide 27
    CENTRAL BASIN PLATFORM DRILLING INVENTORY ECONOMICS BOE/D Vertical Well 60 D+C Cost MM 1.5 50 EUR MBOE 83 40 % Liquids 80% 30 ROR 36% 20 WI / NRI 79% / 66% 10 Current Inventory 8,086 (9% PUD) 0 0 6 12 18 24 30 36 42 48 54…
  28. APACHE PERMIAN – Apache Corp – slide 28
    YESO RAMPING UP ACTIVITY Eddy Co. Birdie Federal 17 Tony Fed 39 Acres (000) 105 (70 net) 30-day IP BOE/D 121 30-day IP BOE/D 150 EUR MBOE 194 EUR MBOE 218 Net MBOE/D (Sept) 4.1 Horizontal 2012 New Wells 110 Program Drilling…
  29. APACHE PERMIAN – Apache Corp – slide 29
    YESO DRILLING INVENTORY ECONOMICS BOE/D Vertical Well 120 D+C Cost MM 1.7 100 EUR MBOE 128 80 % Liquids 82% 60 ROR 59% 40 WI / NRI 50% / 43% 20 Current Inventory 1,677 (31% PUD) 0 0 6 12 18 24 30 36 42 48 54 60 Month…
  30. APACHE PERMIAN – Apache Corp – slide 30
    DELAWARE BASIN EMERGING OPPORTUNITIES Acres (000) 609 (287 net) Net MBOE/D (Sept) 3.3 2012 New Wells 18 Avalon/ Bone Spring Drilling Inventory 1,823 Locations 284 MMBOE net Stratigraphy Bell Canyon Mountain Delaware…
  31. APACHE PERMIAN – Apache Corp – slide 31
    AVALON/BONE SPRING 3500 PAY SECTION WITH MULTIPLE TARGETS Delaware Basin Apache Acreage Type Log Gamma Ray Organic Indicator Reservoir Parameters Bell Canyon Mountain Delaware (Avalon, 1st+3rd Bone Spring) Group Cherry…
  32. APACHE PERMIAN – Apache Corp – slide 32
    WOLFBONE 2400 VERTICAL SHALE PLAY WITH HORIZONTAL UPSIDE Delaware Basin Apache Acreage Type Log Gamma Ray Organic Indicator Reservoir Parameters Bell Canyon Mountain Delaware Prolific, organic-rich Bone Spring Wolfcamp…
  33. APACHE PERMIAN – Apache Corp – slide 33
    DELAWARE BASIN DRILLING INVENTORY ECONOMICS BOE/D Vertical Well (Wolfbone) 250 D+C Cost MM 3.6 200 EUR MBOE 280 150 % Liquids 61% ROR 37% 100 WI / NRI 64% / 49% 50 Current Inventory 1,419 (2% PUD) 0 0 6 12 18 24 30 36 42 48…
  34. APACHE PERMIAN – Apache Corp – slide 34
    13% PRODUCTION CAGR (WITH UPSIDE) LIVING WITHIN CASH FLOW Net MBOE/D 180 Cline Shale 160 Yeso Delaware Basin 140 Wolfcamp Shale 120 Midland Basin Vertical 100 80 Central Basin Platform 60 40 Production Base 20 0 2010…
  35. APACHE PERMIAN – Apache Corp – slide 35
    EXPANDING OPPORTUNITY DRIVERS: SCALE+BREADTH, TECHNICAL WORK, HORIZONTALS All APA locations are specifically identified and technically supported May 2011: 5000 Locations Opportunity expansion expected: June 2012: 34,518 Locations…

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