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2012ANNUAL SHAREHOLDER MEETING – Apache Corp

Apache Corp · May 24, 2012 · 47 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. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 1
    2012 ANNUAL SHAREHOLDER MEETING MAY 24, 2012
  2. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 2
    CHAIRMANS REMARKS 3
  3. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 3
    2011: A RECORD YEAR Production: 748 MBOE/D net Up 14 % YOY (50% liquids) Earnings: 4.5 BN Up 50 % YOY Cash Flow: 10.2 BN Up 39 % YOY Reserves: 3 BN BOE Alltime high (46% liquids) *Cash flow = cash from operations before…
  4. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 4
    APACHE HAS NEVER BEEN STRONGER 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) Earnings per Share (/share) *…
  5. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 5
    APACHES GLOBAL ENERGY PORTFOLIO Canada North Sea Central Permian GC Onshore GOM Shelf Deepwater Egypt Australia Argentina 6
  6. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 6
    GROWTH, ENHANCED PORTFOLIO BALANCE 1Q10 Production 1Q12 Production+Cordillera* Argentina 6% North Sea U.S. Onshore 10% 24% Argentina 6% U.S. Onshore Australia North Sea 18% 9% 10% Australia 10% U.S. Offshore U.S. Offshore…
  7. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 7
    EXPANDED NORTH AMERICA GROWTH PLATFORMS Permian Central Deepwater 3MM acres: 1.5MM acres in Anadarko Basin: Oil development pipeline: Doubled over last 24 months +50% in 2012 Lucius, Heidelberg 32 APA rigs drilling now 22 APA…
  8. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 8
    2012 EXPLORATION: OPENING NEW PLAYS Alaska Cook Inlet New Canada Oil/liquids Plays 2 wells Developing within our 6 MM acres Seismic campaign North Sea Tryfan, Seagull N. Canyon Wash Egypt Stratigraphic Egypt Paleozoic Pursuit…
  9. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 9
    APACHE EGYPT Cairo Heba300 11 MM gross acres, 162 MBOE/D (net) 20052010: doubled gross production 2011: 12% gross production growth 10
  10. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 10
    EGYPT: GROWTH CONTINUES Gross Production Rigs MBOE/D 380 30 360 25 340 320 20 300 15 280 260 10 240 5 220 200 0 1Q 2010 1Q 2011 1Q 2012 11
  11. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 11
    APACHE: PROFITABLE LONGTERM GROWTH MBOE/D, Net 850 800 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 0 12 CAGR = 19922011. Projected 2012 Production growth = 5095 MBOE/D based on continuing operations
  12. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 12
    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,…
  13. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 13
    THE WORLD HAS CHANGED 14
  14. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 14
    THE WORLD HAS CHANGED Prices turned upside down Natural Gas (/MMBTU) Crude Oil (/BBL) 14 150 12 130 Brent 10 110 WTI 8 90 6 Henry Hub 70 4 2 50 0 30 Spot prices. Source: EIA 15
  15. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 15
    The world HAS changed so what is your company doing about it 16
  16. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 16
    MAINTAINING OUR PORTFOLIO BALANCE 100% 75% 50% Production: Consistently 50% Liquids over last 10 years 25% 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Our competitors are focused on increasing liquids…
  17. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 17
    INCREASING DRILLING INVESTMENTS WHILE LIVING WITHIN CASH FLOW BN 12.0 Cash Flow 10.0 Operating 8.0 Capital 6.0 4.0 2.0 0.0 2007 2008 2009 2010 2011 2012* Cash from operations before changes in operating assets &…
  18. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 18
    USING FINANCIAL STRENGTH TO CAPTURE ACQUISITION OPPORTUNITIES BN Acquisition Capital 12.0 Mariner 10.0 BP Permian 8.0 BP Western Canada BP Egypt Western Desert 6.0 Devon GOM Shelf 4.0 Kitimat LNG Mobil Cordillera 2.0…
  19. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 19
    INCREASING EMPHASIS ON NORTH AMERICA MBOE/D 450 434 400 Canada 357 350 310 Argentina 300 276 GOM Deepwater Argentina North Sea 250 Canada GOM Shelf North Sea 200 GOM Deepwater Australia GC Onshore Australia 150 GOM Shelf…
  20. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 20
    BENEFITING FROM RISING INTERNATIONAL GAS PRICES Realized Gas Price International Gas Revenue /MCF MM 7.00 300 6.00 250 North America 5.00 200 4.00 150 International 3.00 100 2.00 1.00 50 0.00 0 21
  21. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 21
    DELIVERING RECORD RESULTS AND CONSISTENT PROFITABLE GROWTH Adjusted Earnings * Cash Flow BN BN 5.0 12.0 10.0 4.0 8.0 3.0 6.0 2.0 4.0 1.0 2.0 0.0 0.0 22 * Adjusted Earnings is a nonGAAP measure that excludes certain…
  22. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 22
    FINANCIAL STRENGTH, RESUMED DIVIDEND GROWTH Debt to Capitalization Per Share Dividend /share 25% 0.70 0.60 20% 0.50 15% 0.40 10% 0.30 0.20 5% 0.10 0% 0.00 Consistent record of debt paydown Increased quarterly dividend…
  23. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 23
    WHAT WE ARE DOING ABOUT IT: Maintaining our portfolio balance Increasing drilling investments while living within cash flow Using financial strength to capture acquisition opportunities Increasing emphasis on North America…
  24. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 24
    YET OUR STOCK PRICE IS LAGGING Index, 2001=100 800 700 OXY 600 EOG 500 400 APA DVN 300 CHK APC 200 100 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Cur. 25
  25. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 25
    COMPETITIVE PER SHARE RESULTS Earnings per Share Cash Flow per Share % CAGR, 2006 2011 % CAGR, 2006 2011 12% 15% 8% 10% 4% 5% 0% NM 0% 4% 5% 8% 10% 12% 15% A APA B C D E A APA B C D E P/CF: 4.7 2.8 4.5 4.3 3.7 3.3 26…
  26. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 26
    WHAT IS APACHE REALLY DOING GROWING A STRONGER, MORE PROFITABLE COMPANY 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…
  27. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 27
    THE WORLD HAS CHANGED: WHAT APACHES ARE DOING ABOUT IT
  28. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 28
    PERMIAN REGION Ramp up to run 30 rigs and drill 637 wells, up from 508 in 2011 Deadwood Developed inventory of 10,000 vertical and horizontal locations Increase HZ well count to 90 Commission Crosstex Plant with capacity…
  29. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 29
    CENTRAL REGION Cherokee Focus on oil and liquid plays oil production nearly doubled; liquids production up 244% in 2011 Cordillera acquisition increases acreage on oil and liquidsrich plays 20 mi Planning to drill 230…
  30. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 30
    GULF OF MEXICO SHELF REGION TEXAS M I S S. Lafayette HOUSTON New Orleans LOUISIANA Corpus Christi Leading Shelf producer: 108K Mboe/d, 48% liquids in 2011 Planning to drill 3035 wells in 2012, exploiting lowrisk, liquidsrich…
  31. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 31
    GULF OF MEXICO DEEPWATER REGION Three projects with mid2012 IP 2012 exploration focus on proven plays Drill up to 9 wells Lucius sanctioned for development; 2014 IP Heidelberg appraisal drilling success
  32. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 32
    GULF COAST ONSHORE REGION MISS Oil TEXAS LOUISIANA Gulfport Oil & Rich Gas New Orleans (Giddings, Magnet Withers, Barbers Hill) HOUSTON Oil & Rich Gas (Golden Meadow) Dry Gas Atchafalaya Bay Rich Gas (Chapman)…
  33. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 33
    CANADA REGION KITIMAT CALGARY APACHEOPERATED PERMITS Drilling 198 wells (110 hz wellbores all oil) Focusing on oil and liquidrich prospects Expanding land positions via land sales, acquisitions and trades Advancing…
  34. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 34
    AUSTRALIA REGION Drilling up to 22 wells (8 exploration) Developing Coniston, Balnaves oil fields Macedon gas field development under way with IP expected in 2013 Wheatstone LNG/Julimar project Balnaves commenced development…
  35. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 35
    NORTH SEA REGION Acquired Mobil North Sea Limited (Beryl) Q1 2012 production up 67% from Q1 2011, 41% from Q4 SAGE 2011, continued rampup Bacchus: First well online April 2012 6,000 Bbls/d gross Forties Production Beryl…
  36. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 36
    EGYPT REGION 262 wells planned in 2012 including 68 exploration wells; up from 221 in 2011 Continued exploration and development on BP acreage Finalize gas sales agreement, sanction and begin facilities construction for…
  37. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 37
    ARGENTINA REGION 1.7 MM acres in Vaca Muerta; 650,000 acres in oil fairway In 201011, Apache led new gas development in the basin: Gas Plus: 89 MMCF/D at 4.94/MCF Q3Q4 2012: oil window drilling 5+ recompletions, 3+ new wells…
  38. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 38
    GLOBAL LNG: DECADES OF PORTFOLIO VISIBILITY Asian LNG Importers Kitimat LNG 5 MTPA / train (700 MMCF/D) Apache operator (40% WI) Export license awarded Train 1 FID expected 2012 First cargo target 2016 Multitrain expansion…
  39. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 39
    MAJOR INFRASTRUCTURE PROJECTS: STEPS IN 2012 Net Capital MM First Net Project Region 2012 Total 2012 Key Steps Prod. MBOE/D Forties Alpha Complete topside fabrication Satellite Platform N. Sea 108 439 Install+commission Q3 12…
  40. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 40
    PREFID PROJECTS: POTENTIAL SANCTION IN 2012 Net Capital MM First Net Project Region 2012 Total 2012 Key Steps Prod. MBOE/D Greater East Spar Propose for sanction Phase II Austr. 21 85 Complete manufacture 2013 5.0 Finalize GSA,…
  41. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 41
    APACHE: AN EFFECTIVE EXPLORER New Field Exploration IRR 20012010 80% Apache 70% 60% 50% 40% 30% 20% 10% 0% Peers displayed (listed alphabetically): Anadarko, BG, BP, BHP Billiton, Chevron, ConocoPhillips, Eni,…
  42. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 42
    2012 EXPLORATION: OPENING NEW PLAYS Alaska Cook Inlet New Canada Oil/liquids Plays North Sea 2 wells Developing within our 6 MM acres Tryfan, Seagull Seismic campaign North Canyon Wash Egypt Stratigraphic Egypt Paleozoic…
  43. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 43
    SUMMARY Focus unchanged: Rate of return Portfolio balance Balance sheet strength Profitable long term growth Robust multiyear growth inventory Global exploration portfolio People make the difference the best players play Six…
  44. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 44
    CLOSING REMARKS 45
  45. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 45
    APACHE TODAY Our people have never been smarter Our assets have never been better Financially we have never been stronger 46
  46. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 46
    APACHE: PROFITABLE LONGTERM GROWTH What is the key to continued success 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…
  47. 2012ANNUAL SHAREHOLDER MEETING – Apache Corp – slide 47
    APACHES UNIQUE CULTURE Relentless Pursuit of Opportunity Sense of urgency Responsible and accountable Best answers win Respect for the dignity of others Integrity 48

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