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ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp

Apache Corp · Aug 15, 2012 · 32 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. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 1
    ENERCOM 2012 OIL AND GAS CONFERENCE Roger Plank August 15, 2012
  2. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 2
    PROFITABLE LONG-TERM GROWTH MBOE/D, Net 850 2012: 800 6-9% Growth 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 0 2012E 1992 2006 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002…
  3. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 3
    SECOND QUARTER 2012 RESULTS Record production of 774 MBOE/D net (50% liquids) 821 MM adjusted earnings* 2.4 BN cash flow* 3 BN boe in 2011 YE reserves (46% liquids) *Cash from operations before changes in operating assets…
  4. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 4
    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…
  5. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 5
    DRIVEN BY OUR UNCHANGED PRINCIPLES Long Term Profitable Growth Portfolio Balance product, geography Rate of Return Focus fully loaded, cash Financial Prudence live within our means Independent Thinking seek opportunities away…
  6. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 6
    DIVERSITY MITIGATES VOLATILITY THE PORTFOLIO APPROACH 2Q Production Breakout By Product 2Q Revenue Breakout By Product 27% 23% 35% 49% 19% 31% 8% 8% International Liquids International Natural Gas North American Liquids…
  7. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 7
    BENEFITING FROM RISING INTERNATIONAL GAS PRICES Realized Gas Price International Gas Revenue /MCF MM 7.00 350 6.00 300 North America 5.00 250 4.00 200 3.00 150 International 2.00 100 1.00 50 0.00 0 1Q10 2Q10 3Q10…
  8. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 8
    ACTIVE DRILLING ACROSS PORTFOLIO Region Current Rigs Recent Highlights Gas 187 wells added in Q2:Plus 167 program: vertical and720 wells reached horizontal, TD and 9 completed 2Q production surpassed 100,000 Permian 36 BOPD…
  9. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 9
    WHATS CHANGED AT APACHE Expanded U.S. onshore position 67K locations, 9.2 BN BOE (97% unbooked) Drill, drill, drill Global exploration 8.8 BN BOE discovered (unbooked) 6.2 BN BO potential in oil projects Goal: Over 1 MM BOE/D by…
  10. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 10
    APACHE PERMIAN A MAJOR GROWTH BUSINESS New Mexico Texas 3.5 million acres (1.6 million net) 2012E: avg 32 drilling rigs; Drill 760 wells Midland Continuing to ramp up activity 2010 - 5 rigs; Today - 36 rigs 20 mi 2010 - CAPEX…
  11. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 11
    PERMIAN REGION 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. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 12
    EXECUTING OUR GROWTH STRATEGY PERMIAN REGION Avg rig count in Q3 projected to increase to 35, up 3 from Q2 2012 Production 108 MBOE/D, Net + 13% 106 104 102 100 98 96 94 92 90 88 Jan Feb Mar Apr May Jun 13
  13. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 13
    ANADARKO BASIN GROWTH AREAS REJUVENATED BY HORIZONTAL LIQUIDS GROWTH Kansas Q2 Production: 55 MBOE/D net (29% Liquids) 1.9 million acres (1.1 million net) Anadarko Basin Texas 2012E: Drill 240 wells Ramping up activity…
  14. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 14
    CANYON WASH APACHE-LED EXPLORATION WASH PLAY Bivins-LIT 4-3 Bivins-LIT 28-2 Acres 141 , 000 (93,000 net) 30-day IP BOE/D 117 30-day IP BOE/D 309 Current Production 3300 BOED (90% Boys Ranch 115-1 (mid-August) liquids) 30-day IP…
  15. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 15
    EXECUTING OUR GROWTH STRATEGY CENTRAL REGION 24 rigs currently running, up 5 from Q2 2012 Production 80 MBOE/D, Net + 67% 70 60 50 40 30 20 10 0 Jan Feb Mar Apr May Jun 16
  16. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 16
    ACTIVE 2H12 EXPLORATION CALENDAR First Well Target/Location Details Spud Date Vaca Muerta .8 BN barrel potential across oil Aug 7 Neuquen Basin, Argentina window Targeting a 289 MMBO prospect Aug 10 Kenya Deepwater with billion…
  17. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 17
    EXPANDING OUR GULF OF MEXICO FOOTPRINT GOM SHELF REGION RESULTS LOUISIANA Lafayette Gulfport Most active bidder in June 2012 Central GOM Lease Sale Gulf of 61 blocks on the Shelf, Mexico 26 awarded to date APA Leases Sale…
  18. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 18
    EGYPT: CLOUDS OF UNCERTAINTY BEGINNING TO LIFT President Morsi elected after June 17 run-off 51.7% Morsi; 48.3% Shafiq Morsi earned PhD in Engineering from USC (1982) Prime Minister and Cabinet appointed Aug 2 General Sissi…
  19. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 19
    INDUSTRY CONTINUES TO INVEST IN EGYPT Foreign Investment in Petroleum E&D (B) 9.0 8.6 8.2 8.0 7.0 6.0 5.0 2011/12 2012/13E Source: Arab Republic of Egypt Ministry of Petroleum. Foreign companies include British Gas, BP,…
  20. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 20
    OPPORTUNITY FOR UPSIDE Price-to-cashflow multiple 6.7x 7.0x 6.1x 6.0x 5.6x 5.3x 4.9x 5.0x 4.9x 5.0x 4.7x 4.2x 4.0x 3.5x 3.0x 2.0x 1.0x 0.0x Apache A B C D E F G H I Source: ThomsoneOne. Cash flow multiple based…
  21. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 21
    PROFITABLE LONG-TERM GROWTH MBOE/D, Net 850 2012: 800 6-9% Growth 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 0 2012E 1992 2006 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002…
  22. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 22
    APPENDIX
  23. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 23
    EVOLUTION FOR LONG-TERM GROWTH North America Permian, Anadarko: expanded liquids 67,000 location inventory growth portfolio 9.2 BN BOE Global Exploration First mover in 7 global plays: company-moving 8.8 BN BOE discovered…
  24. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 24
    MAINTAINING FINANCIAL DISCIPLINE 2011 Net Debt / EBITDA 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 APA Source: Goldman Sachs. Peer companies in group displayed: Anadarko, Berry, Bill Barrett, Cabot, Chesapeake, Devon,…
  25. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 25
    ASSET DISCLOSURES RESOURCE DEPTH, EXPLORATION SUCCESS, UPSIDE Liard Basin 48 net TCF discovery Williston Basin (Apache = 100%) New 300K net acre position 1 BN net BO potential Mississippian Lime Cook Inlet New 580K net acre…
  26. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 26
    U.S. LIQUIDS LEAD GROWTH Exploration and investment upside to offshore, international 2011 Production 2016E Production 41% U.S. Onshore 21% 12% U.S. Offshore 17% 12% Canada 16% 6% Argentina 7% 8% North Sea 8% 9% 6%…
  27. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 27
    APACHE: OVER 1MM BOE/D BY 2016 Base: 6-9% production/share CAGR: Upside: 12%+ production/share CAGR: Living within cash flow (strip) NA gas projects, exploration/NV upside No investment in NA gas LNG (2017): + 90-140 MBOE/D 11-16…
  28. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 28
    EXECUTING OUR GROWTH STRATEGY PERMIAN REGION Rig count in Q3 expected to increase to 35, up 3 from Q2 Quarterly Production Since 2010 120 MBOE/D, Net + 93% 100 80 60 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 29 2010…
  29. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 29
    EXECUTING OUR GROWTH STRATEGY CENTRAL REGION 24 rigs currently running, up 5 from Q2 average Quarterly Production Since 2010 60 MBOE/D, Net + 59% 50 40 30 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 30 2010 2011 2012
  30. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 30
    EGYPTS GROWTH REQUIRES FOREIGN INVESTMENT Previously, Egypts growing demand was Since 2008 Egypt has been a net met with significant investments importer of oil allowing supply to triple Egypts NG Supply vs. Consumption Egypts Oil…
  31. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 31
    TOURISM RAMPING UP EGYPTS PRIMARY INDUSTRY Number of Tourists Visiting Egypt Pre and Post Revolution (000s) 1,600 1,400 1,200 Average number of tourists before Jan 2011 1,000 800 600 400 200 0 Jun-08 Aug-08 Jun-09…
  32. ENERCOM 2012 OIL AND GAS CONFERENCE – Apache Corp – slide 32
    EGYPTIAN STOCK MARKET BEGINNING TO RECOVER EGX30 Performance 0% -5% -10% -15% -20% -25% Egyptian stock markets closed due to revolution -30% -35% -40% EGX30 -45% -50% Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11…

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