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2013 ANNUAL SHAREHOLDER MEETING – Apache Corp

Apache Corp · May 16, 2013 · 40 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. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 1
    2013 ANNUAL SHAREHOLDER MEETING MAY 16, 2013
  2. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 2
    TRACK RECORD OF LONG-TERM GROWTH MBOE/D, Net 850 800 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008…
  3. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 3
    2012: ANOTHER STRONG YEAR Record Production: 779 MBOE/D (+5.4%)* Adjusted earnings: 3.8 BN** Cash flow: 10.2 BN*** Production replacement: 131%**** Dividend growth: +13% * Adjusted for dispositions ** Adjusted earnings…
  4. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 4
    2012 HIGHLIGHTS Strategic steps: Doubled position in liquids-rich Anadarko Basin Expanded Kitimat LNG project Chevron new strategic partner Increased equity interest to 50% Contributed Liard 48Tcf of gas potential Substantial new…
  5. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 5
    PROFITABLE LONG TERM GROWTH 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 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012…
  6. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 6
    TOP TIER RETURNS THREE YEARS ENDED 12/31/2012 ROACE: 3 Year Average ROE: 3 Year Average 16% 16% 14% 14% 12% 12% 10% 10% 8% 8% 6% 6% 4% 4% 2% 2% 0% 0% OXY A APA APA NBL C DVN D APC E EOG F A OXY APA C DVN NBL…
  7. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 7
    THE EVOLUTION OF APACHES PORTFOLIO LIFE CYCLES N.A. Onshore Liquids Expansion MBOE/D, Net 850 800 750 700 Continued International 650 600 Expansion 550 500 450 400 First 350 300 International Entry 250 200 150 100…
  8. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 8
    THE EVOLUTION OF APACHES PORTFOLIO LIFE CYCLES Beginning End % Time Frame Life Cycle Description (MBOE/D) (MBOE/D) Increase 1993 to 1997 First International Entry 86 170 +98% - Egypt, Canada and Australia 1999 to 2003 Continued…
  9. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 9
    FIRST INTERNATIONAL EXPANSION CONTINUED INTERNATIONAL EXPANSION 1993 - 1997 NET BOE/DAY 1999 - 2003 Major Acquisitions: Mboe/d Mboe/d 1999 Shell - GOM Shelf 450 450 2000 OXY GOM Shelf Acquisitions: 417 2000 Phillips - Canada 1993…
  10. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 10
    EVOLUTION OF APACHES PORTFOLIO THE NEXT LIFE CYCLE We have done this before 3rd time in past 20 years Context Embarked on portfolio expansion over 3 years ago Significantly strengthened NA onshore resources Entered Deepwater GOM…
  11. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 11
    CONTINUED INTERNATIONAL EXPANSION NA ONSHORE RESOURCE EXPANSION 1999 19992003 2003 NET BOE/DAY 2009 2013 Mboe/d Mboe/d Major Acquisitions: 800 800 2010 Devon Energy 782 Major Acquisitions: 2010 Mariner 34% 43 Argentina 1999 Shell…
  12. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 12
    ACCELERATION OF N.A. LIQUIDS GROWTH LIQUIDS (NET BARRELS/DAY) NET BOE/DAY 140,000 250,000 Permian Central 129 Permian Central 120,000 206 200,000 100,000 80,000 150,000 60,000 89 100,000 39 40,000 50,000 20,000 0 0…
  13. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 13
    WHERE ARE WE NOW PORTFOLIO OF LEADING POSITIONS Growth through the drillbit 2 driller onshore U.S. (over 70 rigs) 1 in Permian Basin (42 rigs/17 Hz) 2 in Anadarko Basin (28 rigs/26 Hz) 1 independent operator in UK North Sea…
  14. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 14
    BALANCED PORTFOLIO = SUSTAINABLE RETURNS Production Distribution Revenue Distribution /Bbl Oil: 109.22 /Bbl NGL: 44.43 Oil: 93.20 NGL: 27.58 International Liquids North America International 25% Liquids Liquids North America…
  15. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 15
    PRODUCTION BREAKDOWN 782 MBOE/D Australia Argentina North Sea 7% 6% Central 10% 11% International Liquids 25% North America N.A. Egypt 19% LiquidsOnshore 15% Permian 35% 44% International Gas 18% 4% 2% GOM DW GC…
  16. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 16
    PROVED RESERVES AND RESOURCES* PREDOMINANTLY ONSHORE NORTH AMERICAN LIQUIDS Proved Reserves + Proved Reserves Permian / Central Resources 2.9 BBOE 11.7 BBOE Canada Argentina Canada Australia North Sea 5% International Egypt…
  17. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 17
    EVOLVING PRODUCTION MIX N.A. ONSHORE LIQUIDS DRIVING GROWTH: UP 45% MBOE/D Mboe/d 900 1Q 1Q Inc % Inc Operating Area 2012 2013 (Dec) (Dec) 1.6% 782 800 769 Other International Regions 116 99 -17 -14.2% 3.3% 737 713 700 North…
  18. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 18
    PERMIAN BASIN RESOURCES* Net Resources Acreage Identified Locations 3.8 BBOE 3.5 MM gross (1.6 MM net) 34,518 CBP + N/NW Shelf Midland Vertical Locations 9,798 Locations 17,816 Central Basin Platform Net MMBOE 691 North & North West…
  19. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 19
    PERMIAN BASIN RAMPING UP HORIZONTAL DEVELOPMENT New Mexico Texas 2012 Highlights 108 Mboe/d Net Production +18% YoY Liquids Growth +25% YoY Midland Production 262%* Replacement Proved Reserves 800 MMboe Wells Drilled 104 Hz…
  20. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 20
    PERMIAN OIL: DELIVERING GROWTH MBOE/D Avg. Op. (Bar) Rigs (Line) 120 40 2013 Plans Mariner 35 1Q13 Production 119.4 Mboe/d 100 Closing BP Closing 30 E&D Capital 2.4B 80 APA Permian Average Rigs 34 Region 25 Established…
  21. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 21
    MIDLAND BASIN VERTICAL DEADWOOD: IMPACTIVE GROWTH Production up 8.4x to 25.4MBOE/D Wolfwood and Fusselman vertical plays Developing 40 ac. vertical locations Initiating 20 ac. infill development locations 5.9K identified future…
  22. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 22
    WOLFCAMP SHALE: BUILDING ON 2012 SUCCESS Apache Wolfcamp Shale Summary Wolfcamp APA Gross Acres (000) 450 Shale APA Net Acres (000) 345 Horizontal Wells Drilled 2012 21 Horizontal Wells Planned 2013 90+ Drilling Locations 971…
  23. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 23
    CLINE SHALE: EXPANDING HZ PROGRAM Apache Cline Shale Summary APA Gross Acres (000) 650 APA Net Acres (000) 520 Horizontal Wells Drilled 2012 6 Horizontal Wells Planned 2013 20+ Deadwood area Drilling Locations 2,321 Inventory Net…
  24. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 24
    CENTRAL REGION RESOURCES* Net Resources Acreage Identified Locations 5.4 BBOE 1.9 MM gross (1.0 MM net) 32,546 Cleveland Locations 2,302 Marmaton Net MMBOE 195 Locations 1,593 Cleveland Net MMBOE 161 Marmaton Canyon Wash…
  25. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 25
    ANADARKO BASIN BENEFIT FROM OVER A MILE OF STACKED PAY FORMATIONS Texas Panhandle Central Oklahoma Generalized Cross-Section of Anadarko Basin 26
  26. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 26
    CENTRAL REGION HZ DRILLING FUELING SIGNIFICANT GROWTH Kansas 2012 Highlights 79 Mboe/d in Q4 Net Production +10% QoQ Texas Anadarko Basin 31 Mboe/d in Q4 Liquids Production +24% QoQ Canyon Wash Production 341% * Oklahoma…
  27. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 27
    CENTRAL REGION: DELIVERING GROWTH MBOE/D Avg. Op (Bar) Rigs (Line) 90 30 2013 Plans 80 1Q13 86.2 Mboe/d 25 Production (46% Liquids) 70 E&D Capital 1.4B Cordillera Avg. Rigs 29 (28 Hz) 60 Closing 20 Gross Wells 300 total / 285…
  28. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 28
    CENTRAL REGION 2013 DRILLING HIGHLIGHTS Cleveland Tonkawa Tonkawa 496 MCFD 458 BOPD 610 BOPD 1,575 MCFD 719 BOPD 1,800 MCFD Canyon GW Cottage Grove 395 BOPD 332 MCFD 1,915 BOPD 1,747 MCFD Cottage Grove 1,222 BOPD…
  29. 2013 ANNUAL SHAREHOLDER MEETING – 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. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 30
    NORTH SEA: DELIVERING OIL GROWTH 79.1 MBOE/D 1Q 2013 88% liquids (Brent pricing) Nevis & Ness Beryl Complexes 10/MCF gas realizations Buckland Doubled portfolio 2012 (Beryl) Maclure Skene 2012 Cash Flow: 1.5 Bn* SAGE…
  31. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 31
    EGYPT REGION OPERATIONS CONTINUE UNABATED 2012 Highlights Faghur NTRK-G Gross Production Over 363 Mboe/d Shushan Alamein Cash Flow 2.7 Bn* Faghur NRQ 3151 Capex 1.1 Bn Siwa L-1X Average Rigs 25 Ghindi Abu Gharadig Beni…
  32. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 32
    EGYPT GROSS PRODUCTION OVER TIME MBOE/D 375 17 years of uninterrupted production growth 350 325 300 144 150 275 250 133 225 117 200 175 93 81 88 150 60 125 47 38 217 213 100 35 189 8 29 32 162 75 1 0 129 109 115…
  33. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 33
    RECENT DISCOVERIES CONFIRM OPPORTUNITIES LEASEHOLD: Apache Conc. 9.7 MM gross acres Amoun NE-1X NRQ 3151-1X IP: 3,186 bo/d; 11 MMcf/d IP: 1,625 bo/d; 18.7 MMcf/d Karama-15 IP: 2,136 bo/d Siwa L-1X IP: 2,041 bo/d…
  34. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 34
    ADVANCING MAJOR PROJECTS 21% OF 2013 CAPITAL FOR PROJECT DEVELOPMENT Total CAPEX: 10.5B Project CAPEX: 2.2B 2013E Capex Project (MM) Other E&D Australian Oil Developments 530 3.7B GOM Deepwater 200 LNG: Julimar / Wheatstone 900…
  35. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 35
    AUSTRALIA: WORLD CLASS DEVELOPMENT PIPELINE 61 MBOE/D 4Q 2012 Apache Acreage 40 44% oil (111.34 / Bbl) Miles Gas now contracting at near 8/MCF 70 MBOE/D expected to come online over next 4 years with major projects including:…
  36. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 36
    LNG DEVELOPMENT: MULTI-DECADE PROJECTS 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…
  37. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 37
    LIARD BASIN 48 TCF, BEST UNCONVENTIONAL GAS RESERVOIR IN NORTH AMERICA Apache has unlocked and secured Horn River Liard the highest quality shale reservoir in North America 15 Miles 424,000 gross acres (50% CVX) Huge…
  38. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 38
    KITIMAT LNG: SUBSTANTIAL OPTION VALUE Kitimat LNG At 54 north, Kitimat Apache W.I. 50% is one of North Liard Americas closest ports to Asian markets. Partner Chevron Kitimat-Tokyo 3,988 nm, 10 days Qatar-Tokyo Upstream Acreage…
  39. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 39
    2013 PLAN: 3% TO 5% PRODUCTION GROWTH Accelerate North America onshore liquids growth 4.6 Bn capex (1,000+ wells) 25%+ production growth Advance projects 700MM for projects with 2014 IP (25 Mboe/d) 1.2Bn on LNG projects (900MM on…
  40. 2013 ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 40
    WHERE ARE WE GOING THE NEXT LIFE CYCLE PORTFOLIO OPTIMIZATION OUTCOME Focused portfolio poised for profitable growth Maintain a balanced approach High return, free cash flow generators Higher growth North America onshore liquids…

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