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ANALYST DAY – Apache Corp

Apache Corp · Oct 28, 2008 · 266 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. ANALYST DAY – Apache Corp – slide 1
    CORPORATION 2008 Analyst Review Welcome
  2. ANALYST DAY – Apache Corp – slide 2
    CORPORATION 2008 Analyst Review Steve Farris CEO
  3. ANALYST DAY – Apache Corp – slide 3
    Anomaly vs Reality CORPORATION CORPORATION HH Natural Gas WTI Oil 16 16 140 140 14 14 120 120 12 12 100 100 10 10 80 80 8 8 60 60 6 6 40 40 4 4 2 2 20 20 0 0 0 0 2002 2002 2004 2004 2006 2006 2008 2008…
  4. ANALYST DAY – Apache Corp – slide 4
    TimeTested Growth Strategy CORPORATION CORPORATION 2,500 22 Years of Consecutive Reserve Growth 200 2,000 28 out of the Last 29 Years 160 of Increasing Production 1,500 MMboe MMboe 120 1,000 80 500 40 0 0…
  5. ANALYST DAY – Apache Corp – slide 5
    The Squeeze is on the Debt Generation CORPORATION CORPORATION US Total Debt as % of GDP 350% 350% 300% 300% 250% 250% 200% 200% 150% 150% 100% 100% 50% 50% 0% 0% 1920 1920 1934 1934 1949 1949 1965 1965…
  6. ANALYST DAY – Apache Corp – slide 6
    The World Still Needs Energy CORPORATION CORPORATION 115 115 World World Oil Oil Production Production Needs Needs 110 110 Growth Growth for for China/India China/India 105 105 increases increases 100 100 challenge…
  7. ANALYST DAY – Apache Corp – slide 7
    Significant New Reserves Must be Found CORPORATION CORPORATION Current demand will consume over half of worlds proved oil reserves within 25 years Current demand: 85 MMbopd Oil required next 25 years: No growth: 775 Bn…
  8. ANALYST DAY – Apache Corp – slide 8
    Upstream Opportunity Highlights CORPORATION CORPORATION 97%+ of worlds oil+gas outside the U.S. Increasing basin maturity More real exploration needed International natural gas needs 2008 HIC FARRIS.ppt 09/24/2008 8 88
  9. ANALYST DAY – Apache Corp – slide 9
    Apache: Differentiated CORPORATION CORPORATION Balanced portfolio approach Strategic platforms: Mature basins, exploration, intl. gas Leadership positions Financial strength and flexibility Strong growth project pipeline…
  10. ANALYST DAY – Apache Corp – slide 10
    Portfolio Balance: Core Areas CORPORATION CORPORATION 97%+ of worlds proved oil+gas is outside the U.S. 60% 60% International International % % of of 2007 2007 55% 55% Company Company Production Production 50% 50% 45%…
  11. ANALYST DAY – Apache Corp – slide 11
    Uniquely Positioned for Balanced Growth CORPORATION CORPORATION CANADA CANADA NORTH NORTH SEA SEA 08(E) LLI 08(E) LLI Acres Acres 08(E) 08(E) LLI LLI Acres Acres 1,245 MM 1,245 MM 4.7 4.7 MM MM 1,300 1,300 MMMM 0.7…
  12. ANALYST DAY – Apache Corp – slide 12
    Portfolio Balance: Product and Price CORPORATION CORPORATION 0% 0% 10% 10% 20% 20% 30% 30% 40% 40% 50% 50% 60% 60% 70% 70% 80% 80% 90% 90% 100% 100% Production Liquids Natural Gas P1 Reserves Other Revenue…
  13. ANALYST DAY – Apache Corp – slide 13
    Strategic Platforms CORPORATION CORPORATION Aligned with Long Term Reality Mature Basin Basin-level Basin-level scale, scale, expertise, expertise, track track record record Value Delivery Increasing Increasing…
  14. ANALYST DAY – Apache Corp – slide 14
    Mature Basin Value Delivery CORPORATION CORPORATION Production Decline 2007 Peak Since MMboe/d U.S. 1972 -25% 15.7 Netherlands 1976 -21% 1.3 Indonesia 1997 -22% 2.0 U.K. 1999 -38% 2.8 Colombia 1999 -26% 0.7 Australia 2000 -8%…
  15. ANALYST DAY – Apache Corp – slide 15
    Mature Basin Value Delivery CORPORATION CORPORATION Example: GOM Shelf Apache 1 Independent Investment Investment MMboe MMboe Cost Cost // boe boe As As of of Acquisition Acquisition 3,199 3,199 378.9 378.9 8.44 8.44…
  16. ANALYST DAY – Apache Corp – slide 16
    Exploration Driven Growth ENERGY ENERGY 3,000 3,000 Apaches Top 10 Australia 700 Egypt discoveries since 2000 590 Canada 600 Reserves (Gross MMboe) 500 440 400 300 200 200 143 100 100 75 75 75 59 0 Ootla…
  17. ANALYST DAY – Apache Corp – slide 17
    DrillbitDriven Growth CORPORATION CORPORATION 3-Year 3-Year Total Total Proved Proved Reserve Reserve Additions Additions MM MM BOE BOE % from from Discoveries, Discoveries, Extensions Extensions % of of Total Total…
  18. ANALYST DAY – Apache Corp – slide 18
    International Gas CORPORATION CORPORATION Meeting Meeting Gas Gas Needs Needs of of Domestic Domestic Markets Markets Around Around the the World World 11,000 11,000 Example: Example: Egypt Egypt Gas Gas Supply…
  19. ANALYST DAY – Apache Corp – slide 19
    Core Area Positions CORPORATION CORPORATION Apache realizes value potential through basin leadership: 1 producer in Egypts Western Desert basins 1 independent in US GOM Shelf 2 producer in Western Australias Carnarvon Basin…
  20. ANALYST DAY – Apache Corp – slide 20
    Financial Strength CORPORATION CORPORATION 2008(E) 3.0 3.0 LLI LLI Total Total LLI: LLI: 10.3 10.3 Bn Bn 2.5 2.5 Capital Capital Total Total Capex: Capex: 6.5 6.5 Bn Bn 2.0 2.0 Bn Bn 1.5 1.5 1.0 1.0 0.5…
  21. ANALYST DAY – Apache Corp – slide 21
    Financial Strength CORPORATION CORPORATION Consistent free cash flow generation 2 billion cash plus 2008E 2 billion undrawn facilities 20% debt to cap A-rated and solid financial profile: 1 October 2008: 800MM bond offering…
  22. ANALYST DAY – Apache Corp – slide 22
    Strong Development Project Pipeline CORPORATION CORPORATION 120 120 Asala Asala waterflood waterflood Salam Salam 3&4 3&4 Van Van Gogh Gogh Pyrenees Pyrenees Reindeer Reindeer Salam Salam 55 100 Julimar Julimar 100…
  23. ANALYST DAY – Apache Corp – slide 23
    Unbooked Resource Potential (MMboe) CORPORATION CORPORATION Incremental Incremental Recovery Recovery Identified Identified Basin Basin Total Total Conventional Conventional EOR EOR Extensions Extensions Exploration…
  24. ANALYST DAY – Apache Corp – slide 24
    Riding Out the Storm: Short Term Philosophy Riding Out the Storm: Short Term Philosophy CORPORATION CORPORATION Continue to live within our means: Manage capital expenditures quarterly Execute timely completion of major…
  25. ANALYST DAY – Apache Corp – slide 25
    Allocating Capital in a Constrained World CORPORATION CORPORATION Base capital allocated to major project developments Seven Seven major major developments developments Van Van Gogh, Gogh, Pyrenees, Pyrenees, Reindeer,…
  26. ANALYST DAY – Apache Corp – slide 26
    Apaches Culture will Drive Future Path Apaches Culture will Drive Future Path CORPORATION CORPORATION Growth company by identity: 12.7% production CAGR last 10 years Urgency, can-do, empowerment Strict financial discipline…
  27. ANALYST DAY – Apache Corp – slide 27
    CORPORATION 2008 Analyst Review Steve Farris CEO
  28. ANALYST DAY – Apache Corp – slide 28
    CORPORATION 2008 Analyst Review Roger Plank CFO
  29. ANALYST DAY – Apache Corp – slide 29
    Building to Last = Staying Power CORPORATION CORPORATION Live within our means Manageable Debt 20% of capitalization Committed bank lines: 2.3 Bn A-rating has enabled access to credit markets Cash is King approximately 2 Bn…
  30. ANALYST DAY – Apache Corp – slide 30
    Living Within Our Means CORPORATION CORPORATION 2.5 2.5 2.3 2.3 Capex* Capex* Surplus Surplus 2.0 2.0 1.9 1.9 1.8 1.8 0.8 0.8 1.5 1.6 1.6 0.7 1.5 0.7 0.5 0.5 1.5 1.5 1.3 1.3 Bn 1.2 0.3 0.4 Bn 1.2 0.3…
  31. ANALYST DAY – Apache Corp – slide 31
    Manageable Debt CORPORATION CORPORATION Made Hay While The Sun Shined Debt: Debt: Cap Cap 30 30 27 27 26 26 25 25 25 25 22 22 22 22 20 20 20 21 21 20 20 20 % % 15 15 27 27 25 25 25 25 22 22 21 21 10…
  32. ANALYST DAY – Apache Corp – slide 32
    Manageable Debt Maturities (MM) CORPORATION CORPORATION Oct. 1 Debt Offering 1,200 1,200 Total Debt: 4.9 Bn 400 MM 5 Yr 6.00% Avg Interest Rate: 6.36% 400 MM 10 Yr 6.90% 1,000 1,000 800 800 600 600 400 400 200…
  33. ANALYST DAY – Apache Corp – slide 33
    Cash is King CORPORATION CORPORATION 2,000 2,000 1,500 1,500 MM MM 1,000 1,000 500 500 1,008 1,008 00 141 141 189 189 126 126 42 42 6/'06 6/'06 12/'06 12/'06 6/'07 6/'07 12/'07 12/'07 6/'08 6/'08…
  34. ANALYST DAY – Apache Corp – slide 34
    Potential Firepower (B) CORPORATION CORPORATION 5.0 Cash Cash Unused Unused Credit Credit Lines Lines 4+/- 4.0 3.0 2.2 2.0 * .8 1.0 0.0 2006 2007 2008E ** 26 26 banks; banks; 160 160 MM MM == largest largest…
  35. ANALYST DAY – Apache Corp – slide 35
    Mitigating Factors To Falling Prices CORPORATION CORPORATION Approximately half our gas is sold under fixed, regulated or hedged prices 800 800 MMcfd MMcfd in in Australia, Australia, Argentina Argentina & & Egypt Egypt…
  36. ANALYST DAY – Apache Corp – slide 36
    2009 Cash Flow Sensitivities/Possible Capex CORPORATION CORPORATION Commodity Discretionary Prices Cash Flow 5.00/50 4.0 - 4.5 Bn 5.00/70 5.0 - 5.5 Bn 6.00/80 6.0 - 6.5 Bn 7.00/90 6.5 - 7.0 Bn 6.00/60 5.0 - 5.5 Bn Live…
  37. ANALYST DAY – Apache Corp – slide 37
    Major Developments 40% Funded CORPORATION CORPORATION % % Funding Funding MM MM Net Net Total Total 2009 2009 2010+ 2010+ Complete Complete Egypt Egypt 1. 1. Qasr/Salam Qasr/Salam Trains Trains 33 & & 44 1,200 1,200 70…
  38. ANALYST DAY – Apache Corp – slide 38
    BuiltIn Growth from Major Development Projects CORPORATION CORPORATION 150 Waterfloods Salam 3&4 Van Gogh Pyrenees Reindeer Salam 5 Julimar 100 Note: Note: Excludes Excludes Ootla Ootla Mboe/d 50 ++ 35 35 0 2008…
  39. ANALYST DAY – Apache Corp – slide 39
    2008 Production Estimate CORPORATION CORPORATION 700 700 600 600 500 500 MBOE/Day MBOE/Day 400 400 561 540 545 300 300 200 200 100 100 00 2007 2007 2008E* 2008E* ** Assumes Assumes 511 511 Mboe/d…
  40. ANALYST DAY – Apache Corp – slide 40
    2008 Production Estimate CORPORATION CORPORATION 700 700 600 600 574 - 579 GOM GOM Hurricanes Hurricanes Varanus Varanus Island Island 500 500 MBOE/Day MBOE/Day 400 400 561 540 - 545 300 300 200 200 100…
  41. ANALYST DAY – Apache Corp – slide 41
    2009 Growth Estimates CORPORATION CORPORATION 700 700 572 572 -- 620 620 600 600 540 540 -- 545 545 6%-14% Growth 500 500 MBOE/Day MBOE/Day 400 400 300 300 200 200 100 100 00 2008E* 2008E* 2009E 2009E…
  42. ANALYST DAY – Apache Corp – slide 42
    Summary CORPORATION CORPORATION Live within our means Strong financial position - 2 Bn cash + - 2.3 Bn committed bank lines - 20% debt:cap Robust exploration and development portfolio On the lookout for acquisition…
  43. ANALYST DAY – Apache Corp – slide 43
    CORPORATION CORPORATION 2008 Analyst Review Roger Plank CFO The following discussions contain certain forwardlooking statements as defined by the Private Securities Litigation Reform Act of 1995 including, without limitation,…
  44. ANALYST DAY – Apache Corp – slide 44
    CORPORATION 2008 Analyst Review Jon Jeppesen Senior VicePresident Gulf Coast Region The following discussions contain certain forwardlooking statements as defined by the Private Securities Litigation Reform Act of 1995…
  45. ANALYST DAY – Apache Corp – slide 45
    Gulf Coast Region Operating Philosophy CORPORATION CORPORATION Generate Generate excess excess cash cash flow flow to to fund fund other other activities activities Explore Explore // exploit exploit high -quality multi…
  46. ANALYST DAY – Apache Corp – slide 46
    Gulf Coast Region Properties 2008 CORPORATION CORPORATION Mboe/d Mboe/d Gulf Coast Operations 150 Dry Land / Marsh / Offshore 125 Onshore 100 783 Producing Wells 75 Offshore 50 459 Operated Platforms 25 803 Producing…
  47. ANALYST DAY – Apache Corp – slide 47
    Total Net Oil Production CORPORATION CORPORATION Actual Actual bopd bopd 70,000 70,000 Hurricane Ivan 60,000 60,000 50,000 50,000 Hurricanes Katrina / Rita 40,000 40,000 Current Prod Rate 37,200 bopd X 30,000…
  48. ANALYST DAY – Apache Corp – slide 48
    Total Net Gas Production CORPORATION CORPORATION Actual Actual Mcf/d Mcf/d 600,000 600,000 Hurricane Ivan 500,000 500,000 Hurricanes Katrina / Rita 400,000 400,000 300,000 300,000 Current Prod Rate 249 MMcf/d X…
  49. ANALYST DAY – Apache Corp – slide 49
    Hurricane Gustav / Ike Damage Summary CORPORATION CORPORATION Hurricane Hurricane Gustav Gustav No No major major damage damage to to facilities facilities Fair Fair amount amount of of minor minor damages damages in…
  50. ANALYST DAY – Apache Corp – slide 50
    Significant Excess Cash Generation CENTRAL CENTRAL REGIION REGIION Lease Level Income vs. Capex 3,500 LLI 3,063 3,000 Capital 2,500 2,214 2,000 MM 1,596 1,532 1,468 1,500 1,318 1,700 1,423 1,000 1,160 500 762…
  51. ANALYST DAY – Apache Corp – slide 51
    Gulf Coast Region Acquisitions CORPORATION CORPORATION Offshore Offshore -- Shell Shell -- 1999 1999 / 2003 -- Oxy Oxy -- 2000 2000 -- BP BP - 2003 // 2006 2006 -- Anadarko Anadarko -- 2004 2004 Onshore Onshore --…
  52. ANALYST DAY – Apache Corp – slide 52
    Major GOM Acquisitions Summary CORPORATION CORPORATION Investment Investment MMboe MMboe Cost Cost // boe boe As As of of Acquisition Acquisition 3,199 3,199 378.9 378.9 8.44 8.44 Production Production (9,111) (9,111)…
  53. ANALYST DAY – Apache Corp – slide 53
    Gulf Coast Region Lease Holdings CORPORATION CORPORATION Largest Largest HBP HBP leaseholder leaseholder in in GOM GOM water water depth…
  54. ANALYST DAY – Apache Corp – slide 54
    Gulf Coast Region Properties 2008 CORPORATION CORPORATION District Wells Offshore 67 Onshore 56 Total 123 Giddings(Eagleford) (Eagleford) MISS. ALA. Giddings TEXAS Golden GoldenMeadow Meadow LOUISIANA Lafayette New…
  55. ANALYST DAY – Apache Corp – slide 55
    Geauxpher Prospect GB 462 CORPORATION CORPORATION Apache Apache acquired acquired interest interest in in GB GB 462 462 from from 2004 2004 Anadarko Anadarko acquisition acquisition (ENI (ENI -- operator operator 45%,…
  56. ANALYST DAY – Apache Corp – slide 56
    Geauxpher Prospect GB 462 CORPORATION CORPORATION 40 mile 8 pipeline Garden GardenBanks Banks7272 Host HostPlatform Platform Garden GardenBanks Banks462 462
  57. ANALYST DAY – Apache Corp – slide 57
    Geauxpher Prospect CORPORATION CORPORATION GB 462 Apache GB 463 DEEP DEEPAMPS AMPS atic Schemection -S AMP11UPTHROWN AMP UPTHROWN Cross GB GB462 4623 3PBHL PBHL 18,000 18,000SDS 18,000 SDS GB462 GB 4622…
  58. ANALYST DAY – Apache Corp – slide 58
    Geauxpher Schematic CrossSection CORPORATION CORPORATION GB 462 GB 462 GB 462 W GB 462 4 2ST1 3 E 5 --16000' 16000' 1 Am p 1800 --18000' 18000' PBHL 0' Sd . --20000' 20000' PBHL Am p1 --22000' 22000' De ep…
  59. ANALYST DAY – Apache Corp – slide 59
    Geauxpher Prospect GB 462 CORPORATION CORPORATION 9 Currently Currently installing installing equipment equipment 9 Pipeline Pipeline installation: installation: 08/08 08/08 09/08 09/08 Umbilical Umbilical installation:…
  60. ANALYST DAY – Apache Corp – slide 60
    Ewing Bank 826 CORPORATION CORPORATION Field Field Profile Profile Discovery Discovery Date: Date: 1986 1986 Water Water Depth: Depth: 483 483 APA APA WI WI // NRI NRI 100.0% 100.0% // 83.3% 83.3% Operator Operator Apache…
  61. ANALYST DAY – Apache Corp – slide 61
    Ewing Bank 826 CORPORATION CORPORATION A-19 A-19 781 783 A-19 Sd. Prop Loc A-18 A-18 Prop Loc APA A-22 APA A-25 Prop Loc -12600 A-1 A Sd. APA A-24 A-19 -12400 A-1 A-2 823 A-18 827 B-1 A-21 826 B-1 I Sd. B-2…
  62. ANALYST DAY – Apache Corp – slide 62
    Ewing Bank 826 Arb Line 1 CORPORATION CORPORATION APA A-20 APA A- A-20 APA APA A- -18 AA-18 APA APA A- -19 AA-19 APA A-17 APA A- A-17
  63. ANALYST DAY – Apache Corp – slide 63
    Ewing Bank 826 Oil Production CORPORATION CORPORATION 7,000 Hurricane Downtime 6,000 A-22 5,000 A-20 A-21 4,000 A-19BP1 bopd 3,000 A-18 2,000 A-17 1,000 Base 0 Nov-08 Sep-08 Dec-08 Oct-08…
  64. ANALYST DAY – Apache Corp – slide 64
    Golden Meadow Field CORPORATION CORPORATION Field Field Profile Profile Discovery Discovery Date: Date: 1938 1938 Operator: Operator: Apache Apache WI WI // Avg Avg NRI: NRI: 100.0% 100.0% // 79.0% 79.0% All All Laterre…
  65. ANALYST DAY – Apache Corp – slide 65
    2700 Sd Structure Map CORPORATION CORPORATION Wells Drilled Laterre 306 Wells to be Drilled Laterre 303 Laterre 305 SL 378 2700 2700 Catfish Lake 144 ST1 2700 2700 Laterre Laterre303 303 Laterre313 313…
  66. ANALYST DAY – Apache Corp – slide 66
    Golden Meadow Oil Production CORPORATION CORPORATION bopd 3500 3500 Hurricane 2700 2700 Sand Sand Project Project Downtime 3000 Gross Gross Daily Daily Production Production (8 (8 wells): wells): 2,150 2,150 bopd…
  67. ANALYST DAY – Apache Corp – slide 67
    Golden Meadow 2700 Sd Structure CORPORATION CORPORATION Wells Drilled Wells to be Drilled Apache Leasehold LL&E 234 2700 Laterre Laterre306 306 Laterre313 Laterre 313 Laterre Laterre303 303 Laterre Laterre305…
  68. ANALYST DAY – Apache Corp – slide 68
    Eagleford Shale Play CORPORATION CORPORATION
  69. ANALYST DAY – Apache Corp – slide 69
    Eagleford Shale Play Type Log CORPORATION CORPORATION Shale Shale Characteristics Characteristics Hot Hot GR GR High High Resistivity Resistivity Mud Mud log log shows shows
  70. ANALYST DAY – Apache Corp – slide 70
    Eagleford Shale Continuity CORPORATION CORPORATION MADISON MILAM ROBERTSON BRAZOS GRIMES +52 m iles BURLESON s ile m 16 +1 LEE WASHINGTON BASTROP FAYETTE WALLER COLORADO Apache Properties…
  71. ANALYST DAY – Apache Corp – slide 71
    Eagleford Drilling Activity CORPORATION CORPORATION MADISON ROBERTSON Horizontal Well Drilled Horizontal Completed & Fracd Horizontal Currently Drilling BRAZOS MILAM Chachere 2H Reser-Sanders E-1 Childers 3H…
  72. ANALYST DAY – Apache Corp – slide 72
    Eagleford Production Profile CORPORATION CORPORATION Well Initial Rate Production Frac Type / Size Name bopd Giesenschlag Groce 2H 9 stage hybrid / 1,333,000 sand 305 Childers 3H 4 stage hybrid / 660,000 sand 170 Giesenschlag C…
  73. ANALYST DAY – Apache Corp – slide 73
    Eagleford Work Progress CORPORATION CORPORATION Improved acreage position Recovered multiple sets of whole cores Drilled grass roots horizontal wells with increasing lateral length Optimizing fracture stimulation Continuing…
  74. ANALYST DAY – Apache Corp – slide 74
    Future Cost Savings: Economy of Scale CORPORATION CORPORATION Multi-well pads Multi-well facilities Centrally located water pits for multiple pad usage Re-use of flowback water for fracs Reduction in KCL concentration for frac…
  75. ANALYST DAY – Apache Corp – slide 75
    Eagleford Oil Production Economics CORPORATION CORPORATION AFIT AFIT PV10 PV10 Breakeven Breakeven Price Price vs. vs. Reserves Reserves 160 160 140 Current 140 Current Cost Cost (8.1 (8.1 MM) MM) /bbl Price…
  76. ANALYST DAY – Apache Corp – slide 76
    Eagleford Potential CORPORATION CORPORATION Apache Apache will will earn earn deep deep right right under under EnerVests EnerVests 425,000 425,000 HBP HBP acres acres through through identified identified 2009 2009…
  77. ANALYST DAY – Apache Corp – slide 77
    Gulf Coast Growth Strategy CORPORATION CORPORATION Exploit Exploit & & Explore Explore 3D 3D Coverage Coverage Acreage Acreage Position Position Deep Deep Shelf Shelf Potential Potential Experienced Experienced…
  78. ANALYST DAY – Apache Corp – slide 78
    CORPORATION 2008 Analyst Review Jon Jeppesen Senior VicePresident Gulf Coast Region The following discussions contain certain forwardlooking statements as defined by the Private Securities Litigation Reform Act of 1995…
  79. ANALYST DAY – Apache Corp – slide 79
    CENTRAL REGION CENTRAL REGION 2008 Analyst Review Central Region Tom Voytovich, VP The following discussions contain certain forwardlooking statements as defined by the Private Securities Litigation Reform Act of 1995…
  80. ANALYST DAY – Apache Corp – slide 80
    Central Region Operating Philosophy CENTRAL CENTRAL REGIION REGIION Maintaining diverse production base Managing long life reserves Providing sustainable growth Delivering consistent predictable results Maintaining…
  81. ANALYST DAY – Apache Corp – slide 81
    Central Region Overview CENTRAL CENTRAL REGIION REGIION REGION PRODUCTION 3rd Largest Producer GROSS OPERATED: in Oklahoma 495 MMcfd + 51,300 bopd Tulsa TOTAL NET DAILY: Oklahoma City Apache Acreage 302 MMcfd + 40,000 bopd…
  82. ANALYST DAY – Apache Corp – slide 82
    Central Doing Our Part CENTRAL CENTRAL REGIION REGIION Region Rank Reserves: 1st Region Rank Production: 3rd 20 Year Reserve Life Reserve Replacement through Drilling Growth through Drilling and Acquisition
  83. ANALYST DAY – Apache Corp – slide 83
    Central Region Reserves & Production CENTRAL CENTRAL REGIION REGIION YE 2007 Reserves 2007 Production 42% 44% 56% 58% Total: 636.4 MMboe Total: 32.0 MMboe Oil Oil Gas Gas
  84. ANALYST DAY – Apache Corp – slide 84
    AAu ugg --00 20,000 30,000 40,000 50,000 60,000 20,000 30,000 40,000 50,000 60,000 44 DDe ecc --004 4 AAp prr --00 55 AAu ugg --00 55 XOM Hess DDe ecc --005 5 AAp prr --00 66 AAu ugg --00 66…
  85. ANALYST DAY – Apache Corp – slide 85
    Central Region Gross MCFD CENTRAL CENTRAL REGIION REGIION 550,000 550,000 Anadarko 500,000 500,000 Hess 450,000 450,000 XOM 400,000 400,000 350,000 350,000 300,000 300,000 250,000 250,000 55 66 77 88…
  86. ANALYST DAY – Apache Corp – slide 86
    Production Growth CENTRAL CENTRAL REGIION REGIION Maintaining Diverse Production Base 100 91 90 88 (APC) (APC) 80 MBOED 75 (HESS) (HESS) 70 64 60 55 55 53 (XOM) 50 2002 2003 2004 2005 2006 2007 2008 YTD
  87. ANALYST DAY – Apache Corp – slide 87
    Reserve Growth CENTRAL CENTRAL REGIION REGIION Managing Long Life Reserves 800 176.7 MMBOE PRODUCED Acquisitions 700 2002 2008YTD Drilling 636 Base Reserves 600 APC 551 502 HESS 500 452 MMBOE XOM 400 378 354…
  88. ANALYST DAY – Apache Corp – slide 88
    Reserve Replacement CENTRAL CENTRAL REGIION REGIION Providing Sustainable Growth 40 40 PRODUCTION 34.8 34.8 34.7 34.7 35 35 RESERVES ADDED 32 32 30 30 28.6 28.6 27.3 27.3 25 25 23.8 23.8 23.4 23.4 MMBOE…
  89. ANALYST DAY – Apache Corp – slide 89
    Lease Level Income CENTRAL CENTRAL REGIION REGIION Generating Significant Excess Cash Flow 2000 LLI 1774 Capital 1500 1184 MM 1000 943 850 841 648 551 542 500 446 369 288 221 118 73 0 2002 2003 2004 2005…
  90. ANALYST DAY – Apache Corp – slide 90
    Central Region Growth Drivers CENTRAL CENTRAL REGIION REGIION Adding value to mature areas Successfully expanding acreage positions in core areas HBP acreage allowing paced, repeatable business Expanding application of…
  91. ANALYST DAY – Apache Corp – slide 91
    Anadarko Acquisition CENTRAL CENTRAL REGIION REGIION Imparting the Apache Culture A A high high level level of of activity activity -- 1,139 1,139 total total AFEs AFEs written written through through September,…
  92. ANALYST DAY – Apache Corp – slide 92
    Anadarko Acquisition Year 1 Lookback CENTRAL CENTRAL REGIION REGIION 24% of Investment Returned in Year 1 Production Volume: 5.6 MMBOE Reserve Adds: 12.9 MMBOE Remaining Reserves : 111%
  93. ANALYST DAY – Apache Corp – slide 93
    Red Fork Still Delivering CENTRAL CENTRAL REGIION REGIION 0 0 20 10 30 0 10 30 0 2008 2008 YTD YTD RESULTS RESULTS 10 20 20 10 40 50 20 3 30 10 0 40 0 10 0 0 2…
  94. ANALYST DAY – Apache Corp – slide 94
    Greater Stiles Expanding in Core Areas CENTRAL CENTRAL REGIION REGIION B&B BLK 4 3 55 2 1 1 56 4 THOMAS JAMES 28 HENRY PARRIS BLK E EJ CAMPBELL BLK E 06/08 2007 41 18 42 47 46 45 44 48 43 49 44 43 50 45 42…
  95. ANALYST DAY – Apache Corp – slide 95
    Greater Stiles Rate Profile CENTRAL CENTRAL REGIION REGIION 150 September 2008 86.8 MMCFD 100 MMcfpd May 2004 50 Expanding in 1.2 MMCFD Core Area Adding Value in Mature Area 0 2004 2005 2006 2007 2008 2009 2010
  96. ANALYST DAY – Apache Corp – slide 96
    Sand Hills Repeatable Repeatability CENTRAL CENTRAL REGIION REGIION 30 A-1271 A-1255 21 RESERVES (MMBOE) A-1272 4 22 A-1273 5 23 A-1257 6 A-590 A-1258 1 ACQUIRED 9.9 A-1145 NEW DRILL WELL…
  97. ANALYST DAY – Apache Corp – slide 97
    Bossier Horizontals A Learning Curve R CENTRAL CENTRAL REGIION REGIION D N IFE EA MA PH 6 KH TE A. 0 AN 1 BA 3 A-5 .B M. A-8 A-7 200 FOLK FOLK GU GU 6H W IFE R W .N .S NE ED A-7 12 190 180 6H J.E E PH…
  98. ANALYST DAY – Apache Corp – slide 98
    Permian Basin CO22 Target Projects CENTRAL CENTRAL REGIION REGIION Yellowhouse Ranked CO2 Projects Levelland Ellwood Existing Co2 XIT (Symer) 1- Floods Dean Slaughter Brahaney/Plains 2- Recommended NM TX Roberts CO2…
  99. ANALYST DAY – Apache Corp – slide 99
    Permian Units An Exceptional Resource CENTRAL CENTRAL REGIION REGIION Number 50%OOIP Remaining Current Cum Order of Development of Target BO to 50% Recovery WI% NRI% BO Fields EUR Recovery %OOIP 1. EXISTING FLOODS 6 297 239 57…
  100. ANALYST DAY – Apache Corp – slide 100
    CO2 Floods Projected Performance CENTRAL CENTRAL REGIION REGIION 12,000 PEAK RATE 10,500 BOPD 2Q 2016 10,000 8,000 PENDING FLOODS: INCREMENTAL BOPD ROBERTS, GMK (LONG TERM CONTRACTS 6,000 PENDING) 4,000…

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