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INVESTOR PRESENATION – Apache Corp

Apache Corp · Apr 23, 2013 · 95 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. INVESTOR PRESENATION – Apache Corp – slide 1
    INVESTOR RELATIONS PRESENTATION April 2013
  2. INVESTOR PRESENATION – Apache Corp – slide 2
    2012 IN REVIEW Strong growth +5.4% to 779 MBOE/D* Record cash flow 10.2 BN Financial discipline cash flow = capital Dividend growth +13% Strategic steps Doubled position in Anadarko Basin horizontal drilling plays. Decades of…
  3. INVESTOR PRESENATION – Apache Corp – slide 3
    2012 HIGHLIGHTS Repositioned portfolio with greater emphasis on North American oil and liquids growth Significantly expanded drilling inventory in the North Sea Sustained active operations while mitigating risks in Egypt Achieved…
  4. INVESTOR PRESENATION – Apache Corp – slide 4
    2013 ROADMAP TO VALUE GROWTH Accelerate North America liquids growth Build the future: Advance major projects 2 world class LNG hubs: Decades of oil-linked free cash flow visibility Grow our dividend Optimize our portfolio focus…
  5. INVESTOR PRESENATION – Apache Corp – slide 5
    2013 PLAN Strong growth 25% North America onshore liquids growth +3 to 5% BOE growth Build the future 2.2BN capex in long term projects Financial discipline cash flow = capital Dividend growth +18% 6
  6. INVESTOR PRESENATION – Apache Corp – slide 6
    BUILDING UPON APACHES STRONG TRACK RECORD 7
  7. INVESTOR PRESENATION – Apache Corp – slide 7
    APACHES STRONG TRACK RECORD 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 2007 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003…
  8. INVESTOR PRESENATION – Apache Corp – slide 8
    APACHES STRONG TRACK RECORD 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 2011 2002 2003 2004 2005 2006…
  9. INVESTOR PRESENATION – Apache Corp – slide 9
    APACHES STRONG TRACK RECORD UNIQUE, BALANCED COMMODITY MIX DRIVES PERFORMANCE 4Q 12 Production Breakout By Product 4Q 12 Revenue Breakout By Product 800 MBOE/D 4.4 B 26% 27% 46% 35% 17% 30% 7% 12% International…
  10. INVESTOR PRESENATION – Apache Corp – slide 10
    APACHES STRONG TRACK RECORD UNIQUE INTL GAS MIX: BENEFITTING FROM RISING 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…
  11. INVESTOR PRESENATION – Apache Corp – slide 11
    APACHES STRONG TRACK RECORD CONSISTENTLY DELIVERING TOP TIER RETURNS 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…
  12. INVESTOR PRESENATION – Apache Corp – slide 12
    BUILT PORTFOLIO OF LEADING POSITIONS 1 driller in the Permian Basin 1 in Liard, Horn basins (10 BN BOE gross LNG resource) 1 independent operator in UK North Sea (Brent oil) 1 dom gas supplier in W. Australia by year-end (now 8/MCF)…
  13. INVESTOR PRESENATION – Apache Corp – slide 13
    ACCELERATE NORTH AMERICAN ONSHORE LIQUIDS GROWTH 14
  14. INVESTOR PRESENATION – Apache Corp – slide 14
    ACCELERATE NA ONSHORE LIQUIDS GROWTH Capital focus: 55% of 2013 E&D capital dedicated to NA Onshore regions Drilling focus: 75% of all 2013 wells will be drilled in NA Onshore 40% of all wells drilled in NA Onshore will be…
  15. INVESTOR PRESENATION – Apache Corp – slide 15
    ACCELERATE NA ONSHORE LIQUIDS GROWTH CONSTITUTES 55% OF 2013 E&D CAPITAL PLAN Total 2013 Capital: 10.5 B Region E&D Capital: 8.3 B* Central, 1.4B Projects, 2.2B 13% 21% New Ventures, 0.1B Argentina, 0.2B 1% 2% NA Onshore…
  16. INVESTOR PRESENATION – Apache Corp – slide 16
    ACCELERATE NA ONSHORE LIQUIDS GROWTH ACCELERATING VALUE FROM RECENT ACQUISITIONS Liquids Growth (Bbl/d) BOE Growth (Boe/d) 120,000 180,000 Permian Permian Central 160,000 Central 100,000 140,000 80,000 120,000 100,000 60,000…
  17. INVESTOR PRESENATION – Apache Corp – slide 17
    ACCELERATE NA ONSHORE LIQUIDS GROWTH 2013 OBJECTIVE: ENHANCING RETURNS BY CUTTING COSTS During 2012, day rates for vt rigs came down (5-7% drop) as did completion costs (as much as 30% drop) in Permian and Central APA focused on…
  18. INVESTOR PRESENATION – Apache Corp – slide 18
    PERMIAN REGION 19
  19. INVESTOR PRESENATION – Apache Corp – slide 19
    APACHE PERMIAN RAMPING UP HZ DEVELOPMENT New Mexico Texas 2012 Highlights Production Growth +18% YoY (108 Mboe/d) Liquids Growth 25% YoY Production Replacement 262%* Midland Proved Reserves 800 MMboe Wells Drilled 104 Hz ,…
  20. INVESTOR PRESENATION – Apache Corp – slide 20
    ACCELERATING ACTIVITY 5X INVESTMENT, 6X OPERATED RIG COUNT IN 2 YEARS Apache Permian Evolution: 2010 2011 2012 Employees 345 662 816 Investment 0.4B 1.2B 2.3B Cash Flow 1.1B 1.7B 1.7B Rigs 5 25 32 Horizontal 20 40 104…
  21. INVESTOR PRESENATION – Apache Corp – slide 21
    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 22
  22. INVESTOR PRESENATION – Apache Corp – slide 22
    CURRENT PLAY INVENTORY* Net MMBOE 3,785 % of MMBOE PUD 6.2% Known Locations to Drill 34,518 New Mexico Texas Central Basin Platform + N/NW Shelf CBP + N/NW Shelf Midland Basin Midland Vertical Locations 9,798 Locations 17,816 Net…
  23. INVESTOR PRESENATION – Apache Corp – slide 23
    MIDLAND BASIN MULTI-PLAY GROWTH ENGINE Leonard Lime APA acreage Midland Vertical Target Cline Shale Target Midland Basin Leonard Wolfcamp Shale Target Cline Shale Leonard Upper Spraberry Wolfcamp Shale Lower Spraberry…
  24. INVESTOR PRESENATION – Apache Corp – slide 24
    MIDLAND BASIN VERTICAL MULTI-STACKED VERTICAL PAYS ED Books 1B 11 Nichols 2206 (Wolfcamp/Strawn) 30-day IP BOE/D 280 (Fusselman) 30-day IP BOE/D 362 Keathley 46 12 Acres (000) 1,100 (625 net) (Fusselman) EUR MBOE 147 EUR MBOE…
  25. INVESTOR PRESENATION – Apache Corp – slide 25
    MIDLAND BASIN DEADWOOD: IMPACTIVE GROWTH Aggressive growth: production up 8.4x to 25.4MBOE/D in 28 months of APA as operator Wolf-Wood and targeted Fusselman play Developing 40 ac. vertical locations Initiating 20 ac. infill…
  26. INVESTOR PRESENATION – Apache Corp – slide 26
    MIDLAND BASIN VERTICAL DRILLING INVENTORY ECONOMICS (JUNE 2012) 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%…
  27. INVESTOR PRESENATION – Apache Corp – slide 27
    WOLFCAMP SHALE PROVEN HORIZONTAL OPPORTUNITY Apache Acreage in Play Fairway Acres (000) 450 (345 net) Net MBOE/D (Dec) 3.7 Wolfcamp 2012 New Wells 21 (17 producing wells) Shale Drilling Inventory 971 Locations 347 MMBOE net…
  28. INVESTOR PRESENATION – Apache Corp – slide 28
    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…
  29. INVESTOR PRESENATION – Apache Corp – slide 29
    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…
  30. INVESTOR PRESENATION – Apache Corp – slide 30
    WOLFCAMP SHALE ROBUST ACTIVITY & UPPER WOLFCAMP RESULTS Scott Sugg Lease: 4 Producers,4 Drilling Peak IP 30d Avg EUR Lateral Frac 1 Fracking Well Status (BOE/D) (BOE/D) (MBOE) (ft.) Stages Bennie Lease: Daily Prod: 869 BO + 6…
  31. INVESTOR PRESENATION – Apache Corp – slide 31
    WOLFCAMP SHALE DRILLING INVENTORY ECONOMICS (JUNE 2012) 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…
  32. INVESTOR PRESENATION – Apache Corp – slide 32
    CLINE SHALE HORIZONTAL EXPLOITATION Apache Acreage in Play Fairway Acres (000) 650 (520 net) Net MBOE/D (Dec) 0.8 Drilling Inventory 2,321 Locations Identified Resource 642MMBOE net 2013 Planned Hz Wells 20 Deadwood area…
  33. INVESTOR PRESENATION – Apache Corp – slide 33
    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…
  34. INVESTOR PRESENATION – Apache Corp – slide 34
    CLINE SHALE LEADING GLASSCOCK CO. CLINE PLAYER Marlin Lee Squire Spud Peak Well 30d Avg EUR Lateral Frac Stages Date IP (BOE/D) (MBOE) (ft.) (BOE/D) Mack 8-2H 11-Jun 384 329 394 4,400 10 Red Snapper Squire 9-2H 11-Aug 350 306…
  35. INVESTOR PRESENATION – Apache Corp – slide 35
    CLINE SHALE DRILLING INVENTORY ECONOMICS (JUNE 2012) 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…
  36. INVESTOR PRESENATION – Apache Corp – slide 36
    CENTRAL BASIN PLATFORM PRODUCTION HEART OF THE BASIN, WITH UPSIDE APA acreage Acres (000) 1,700 (780 net) North Shelf NET MBOE/D (Dec) 59.9 Northwest Shelf 2012 New Wells 149 Drilling Inventory 9,798 Locations Central Basin 691…
  37. INVESTOR PRESENATION – Apache Corp – slide 37
    CENTRAL BASIN PLATFORM HORIZONTAL REDEVELOPMENT RESULTS Slaughter (San Andres) 3Bar SU (Wichita Albany) Slaughter TBSU 101H 30-day IP BOE/D 1,042 EUR MBOE 602 3Bar TXL N. McElroy CS Dean A-264H TBSU 105H 30-day IP BOE/D 156…
  38. INVESTOR PRESENATION – Apache Corp – slide 38
    CENTRAL BASIN PLATFORM DRILLING INVENTORY ECONOMICS (JUNE 2012) 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…
  39. INVESTOR PRESENATION – Apache Corp – slide 39
    YESO RAMPING UP ACTIVITY A State 40 Eddy Co. 30-day IP BOE/D 100 NFE Fed 12 Acres (000) 105 (70 net) EUR MBOE 119 30-day IP BOE/D 103 EUR MBOE 219 Net MBOE/D (Dec) 4.4 Washington 33 St 43 30-day IP BOE/D 110 Horizontal EUR MBOE…
  40. INVESTOR PRESENATION – Apache Corp – slide 40
    YESO DRILLING INVENTORY ECONOMICS (JUNE 2012) 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…
  41. INVESTOR PRESENATION – Apache Corp – slide 41
    DELAWARE BASIN EMERGING OPPORTUNITIES Acres (000) 609 (287 net) Net MBOE/D (Dec) 3.2 2012 New Wells 19 Avalon/ Bone Spring Drilling Inventory 1,823 Locations 284 MMBOE net Stratigraphy Bell Canyon Mountain Delaware…
  42. INVESTOR PRESENATION – Apache Corp – slide 42
    BONE SPRING/WOLFCAMP 2,500 NET PAY SECTION WITH MULTIPLE TARGET Delaware Basin Apache Acreage Type Log Gamma Ray Organic Indicator Reservoir Parameters Bell Canyon Mountain Delaware (Avalon, 1st, +2nd, 3rd Bone Spring,…
  43. INVESTOR PRESENATION – Apache Corp – slide 43
    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…
  44. INVESTOR PRESENATION – Apache Corp – slide 44
    DELAWARE BASIN DRILLING INVENTORY ECONOMICS (JUNE 2012) 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…
  45. INVESTOR PRESENATION – Apache Corp – slide 45
    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…
  46. INVESTOR PRESENATION – Apache Corp – slide 46
    CENTRAL REGION 47
  47. INVESTOR PRESENATION – Apache Corp – slide 47
    APACHE CENTRAL HZ DRILLING FUELING SIGNIFICANT GROWTH Kansas 2012 Highlights Production Growth +10% QoQ (79 Mboe/d in Q4) Liquids Growth +24% QoQ (31 Mboe/d in Q4) Texas Anadarko Basin Production 341% Replacement (644% including…
  48. INVESTOR PRESENATION – Apache Corp – slide 48
    ANADARKO BASIN BENEFIT FROM OVER A MILE OF STACKED PAY FORMATIONS Texas Panhandle Central Oklahoma Generalized Cross-Section of Anadarko Basin 49
  49. INVESTOR PRESENATION – Apache Corp – slide 49
    ANADARKO BASIN STACKED OPPORTUNITIES Apache Elk City 1-23 9,500 Tonkawa Cottage Grove 10,000 Hogshooter 10,500 Checkerboard 11,000 Cleveland 11,500 Marmaton Granite Wash Caldwell 12,000 Granite Wash A Granite Wash B…
  50. INVESTOR PRESENATION – Apache Corp – slide 50
    CURRENT PLAY INVENTORY Net MMBOE 5,395 % of MMBOE PUD 1.5% Known Locations to Drill 32,546 Granite Wash Oklahoma Tonkawa Locations 22,823 Locations 2,795 Net MMBOE 4,535 Net MMBOE 202 Texas Cleveland Marmaton Locations…
  51. INVESTOR PRESENATION – Apache Corp – slide 51
    MIDCONTINENT LIQUIDS: DELIVERING UPSIDE Net MBOE/D 80 25 Operated Rigs (Bar) (Line) 70 20 60 Cordillera Closing 50 15 40 30 10 20 5 10 0 0 2010 2011 2012 52
  52. INVESTOR PRESENATION – Apache Corp – slide 52
    GRANITE WASH CONSISTENCY, OUTSTANDING ECONOMICS, RUNNING ROOM Wright 151 2H Granite Wash B Young Trust 4 4H Granite Wash A Acres (000) 718 (349 net) 30-day IP BOE/D 2,489 30-day IP BOE/D 4,729 EUR MBOE 1,753 EUR MBOE 993 Net…
  53. INVESTOR PRESENATION – Apache Corp – slide 53
    GRANITE WASH DRILLING INVENTORY ECONOMICS (JUNE 2012) Drilling Inventory Economics Recent Well Highlights BOE/D 1,400 Smith 1-17H Simon 1-11H 1,200 Granite Wash C Granite Wash C 30-day IP BOE/D 2,683 30-day IP BOE/D 2,271 1,000…
  54. INVESTOR PRESENATION – Apache Corp – slide 54
    TONKAWA GENERATING OIL FROM A BYPASSED FORMATION Lockhart B 405HB 30-day IP BOE/D 317 Leddy 1-19HB 30-day IP BOE/D 531 Acres (000) 634 (310 net) EUR MBOE 218 EUR MBOE 435 Net MBOE/D (Dec) 7.7 2012 New Wells 54 Drilling…
  55. INVESTOR PRESENATION – Apache Corp – slide 55
    TONKAWA DRILLING INVENTORY ECONOMICS (JUNE 2012) Drilling Inventory Economics Recent Well Highlights BOE/D 400 Calvert 1-22HB ODWC 1-6HB Williams 1-13HC 30-day IP BOE/D 400 30-day IP BOE/D 750 30-day IP BOE/D 1,312 350 EUR MBOE 350…
  56. INVESTOR PRESENATION – Apache Corp – slide 56
    MARMATON CONTINUOUS SAND FROM SHALLOW SHELF TO DEEP BASIN Weinette 1078 2H Marmaton Upper Acres (000) 662 (512 net) 30-day IP BOE/D 1,036 EUR MBOE 325 Net MBOE/D (Dec) 9.1 2012 New Wells 27 Pletcher 934 1H Drilling Inventory…
  57. INVESTOR PRESENATION – Apache Corp – slide 57
    MARMATON DRILLING INVENTORY ECONOMICS (JUNE 2012) Drilling Inventory Economics Recent Well Highlights BOE/D 500 Skyy 2-33 HC 30-day IP BOE/D 2,439 400 EUR MBOE 1,553 300 Bombay 3-32 HB Galileo 2-4 HA 30-day IP BOE/D 2,165…
  58. INVESTOR PRESENATION – Apache Corp – slide 58
    CLEVELAND APACHE RECOVERIES ARE THE HIGHEST AVERAGE IN THE AREA Allison 20 3H Cleveland Gas Acres (000) 527 (268 net) 30-day IP BOE/D 689 EUR MBOE 378 Net MBOE/D (Dec) 3.8 2012 New Wells 35 Drilling Inventory 2,302 Locations 195…
  59. INVESTOR PRESENATION – Apache Corp – slide 59
    CLEVELAND DRILLING INVENTORY ECONOMICS (JUNE 2012) Drilling Inventory Economics Recent Well Highlights BOE/D 350 300 250 Adams 138 3H Wamble E 1H Cleveland Oil Cleveland Oil 30-day IP BOE/D 399 200 30-day IP BOE/D 783 EUR MBOE…
  60. INVESTOR PRESENATION – Apache Corp – slide 60
    CANYON WASH APACHE-LED EXPLORATION WASH PLAY Cheyenne Creek 30-day IP BOE/D 1,875 Acres (000) 141 (93 net) EUR MBOE 1,452 Net MBOE/D (Dec) 1.8 2012 New Wells 15 Existing Drilling Inventory 1,016 Locations 61 sq mi 3D 101…
  61. INVESTOR PRESENATION – Apache Corp – slide 61
    CANYON WASH DRILLING INVENTORY ECONOMICS (JUNE 2012) Drilling Inventory Economics Recent Well Highlights BOE/D 400 Bivins-LIT 28-2 30-day IP BOE/D 315 350 EUR MBOE 200 300 250 200 Bivins-LIT 3-2 150 30-day IP BOE/D 1,001 EUR…
  62. INVESTOR PRESENATION – Apache Corp – slide 62
    CENTRAL REGION 2012 DRILLING HIGHLIGHTS Baker 5-15H Cherokee 427 BOPD, 500 MCFD Adams 137 4H Cleveland 295 BOPD, 274 MCFD Ramsey 58-15H Baumann 394 3H Karen 1-15HD GWB Cleveland Tonkawa 208 BOPD, 5746 MCFD 182 BOPD, 1726…
  63. INVESTOR PRESENATION – Apache Corp – slide 63
    CENTRAL REGION SELECTED 2012 OIL COMPLETIONS Well Name WI (%) County Formation TVD IP(30 Day Avg) Bivins-Lit 115 5 73.5 Oldham Canyon Wash 9,174 1,210 Bo/d + 1,110 Mcf/d Boys Ranch 116 1 73.5 Oldham Canyon Wash 8,980 707 Bo/d + 600…
  64. INVESTOR PRESENATION – Apache Corp – slide 64
    CENTRAL REGION SELECTED 2012 LIQUID RICH GAS COMPLETIONS Well Name WI (%) County Formation TVD IP(30 Day Avg) Baumann 394 3H 97.9 Ochiltree Cleveland 7,296 3,726 Mcf/d + 182 Bo/d Stiles 3 SL 21-3H 90 Wheeler GW 12,712* 5,420 Mcf/d + 429…
  65. INVESTOR PRESENATION – Apache Corp – slide 65
    CANADA REGION TREMENDOUS ACREAGE WITH DIVERSE LIQUIDS OPPORTUNITIES LEASEHOLD: 6.9 MM gross acres 2012 Highlights 2013 Plans Liquids Production +9% (22 MBbls/d) Invest 0.5 Bn Total Production 122 MBoe/d Average Rigs 7 Average…
  66. INVESTOR PRESENATION – Apache Corp – slide 66
    BUILDING FOR THE FUTURE 67
  67. INVESTOR PRESENATION – Apache Corp – slide 67
    BUILDING FOR THE FUTURE 21% OF 2013 CAPITAL FOR MID TO LONG-TERM PROJECTS 13 Capex Total CAPEX: 10.5B Project (MM) Online in 2014 Project CAPEX: 2.2B Balnaves 230 Coniston 170 Other E&D Varanus Comp 110 3.7B Other 130 Australia…
  68. INVESTOR PRESENATION – Apache Corp – slide 68
    BUILDING FOR THE FUTURE AUSTRALIAS EXTENSIVE DEVELOPMENT PIPELINE 2012 Highlights Production 64.6 Mboe/d Wells Drilled 15 (10 exploration) Full year of production at Devils Creek Gas Plant; Operational Macedon Project over 90%…
  69. INVESTOR PRESENATION – Apache Corp – slide 69
    BUILDING FOR THE FUTURE MACEDON GAS FIELD AND PLANT Apache WI 28.57% Operator BHPB First Production 2013 WESTERN AUSTRALIA Net Production 35 MMCF/D MACEDON FIELD Ashburton North Strategic Industrial Area Includes construction…
  70. INVESTOR PRESENATION – Apache Corp – slide 70
    BUILDING FOR THE FUTURE CONISTON OIL FIELD DEVELOPMENT Coniston Novara Development (New) Van Gogh Development (Existing) Ningaloo Vision FPSO Tie-back field development utilizing Apaches Apache WI 52.50% (Operator) FPSO…
  71. INVESTOR PRESENATION – Apache Corp – slide 71
    BUILDING FOR THE FUTURE BALNAVES OIL FIELD DEVELOPMENT Apache WI 65% (Operator) Partner Kufpec First Production 2014 Net Production 18.7 MBO/D Subsea development through the FPSO Armada Claire Major equipment packages and…
  72. INVESTOR PRESENATION – Apache Corp – slide 72
    BUILDING FOR THE FUTURE NORTH SEA: ACCELERATING DRILLING ON EXPANDED FOOTPRINT 2012 Highlights Production Growth +36% YoY (75 Mboe/d) Wells Drilled 21 Awarded 11 operated & 1 non-op new licenses; Installed jacket for Forties…
  73. INVESTOR PRESENATION – Apache Corp – slide 73
    BUILDING FOR THE FUTURE FORTIES ALPHA SATELLITE PLATFORM New 4-pile jacket & deck (17,000 tons) 18 new well slots allowing access to additional targets Increased processing capacity & power First oil expected 2H 2013 74
  74. INVESTOR PRESENATION – Apache Corp – slide 74
    DEEPWATER REGION LONG TERM GROWTH AND EXPLORATION POTENTIAL LEASEHOLD: 900,000 gross acres 2012 Highlights 2013 Plans Production 16 Mboe/d Invest 0.4 Bn Average…
  75. INVESTOR PRESENATION – Apache Corp – slide 75
    BUILDING FOR THE FUTURE LUCIUS OIL FIELD DEVELOPMENT Apache WI 11.7% Operator Anadarko First Production 2014 Net Production 9.4 MBOE/D Net EUR 35.1+ MMBOE resource Proven Pliocene & Miocene subsalt oil development in 7,000 WD…
  76. INVESTOR PRESENATION – Apache Corp – slide 76
    BUILDING FOR THE FUTURE HEIDELBERG OIL FIELD DEVELOPMENT Tahiti Discovered Apache WI 12.5% Chevron, 2002 Resource 450+ MMBOE Operator Anadarko Caesar/Tonga Discovered First Production Mid-2016 (Pending FID) Anadarko, March 2012…
  77. INVESTOR PRESENATION – Apache Corp – slide 77
    BUILDING FOR THE FUTURE LNG DEVELOPMENTS WITH A STRATEGIC PARTNER Wheatstone LNG NW Australia Kitimat LNG NW Canada Construction underway 1st mover for Canadian exports 1st cargo projected YE16 Monetizes 50 TCF Monetizes 11…
  78. INVESTOR PRESENATION – Apache Corp – slide 78
    WHEATSTONE LNG Apache WI 13% Operator Chevron First LNG Delivery 2016 Initial Gross Up to 1.25 BCF/D Capacity Site work has begun and major long lead items have been ordered with partial delivery of gas turbines Platform…
  79. INVESTOR PRESENATION – Apache Corp – slide 79
    KITIMAT LNG Apache WI 50% Partners CVX (50%) At 54 north, Kitimat First Delivery Pending FID is one of North Americas closest ports Initial Gross Up to 1.5 BCF/Day to Asian markets. Capacity Kitimat-Tokyo 3,988 nm, 10 days…
  80. INVESTOR PRESENATION – Apache Corp – slide 80
    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 430,000 gross acres (50% CVX) 210 TCF net gas in…
  81. INVESTOR PRESENATION – Apache Corp – slide 81
    LIARD BASIN BEST UNCONVENTIONAL GAS RESERVOIR IN NORTH AMERICA ard NE-PA Marcellus Haynesville Reservoir ReservoirUnitsLiard LiardNE-PA Marcellus NE-PA Marcellus HaynesvilleHaynesville Units Uni 15000 7000 - 11000 10000Depth -…
  82. INVESTOR PRESENATION – Apache Corp – slide 82
    LIARD BASIN CONTINUOUS GAS FILLED POROSITY APA C-86-F APA D-28-B APA D-34-K Top Besa River C-86-F D-28-B D-34-K 15 miles Gas Filled Porosity Net pay thickness 1,024 feet 708 feet 425 feet Porosity 6.4% 7.0% 7.6%…
  83. INVESTOR PRESENATION – Apache Corp – slide 83
    ADDITIONAL OPERATING REGIONS 84
  84. INVESTOR PRESENATION – Apache Corp – slide 84
    GULF COAST ONSHORE REGION APPLYING MODERN TECHNOLOGIES TO A MATURE AREA LEASEHOLD: 1.4 MM gross acres 2012 Highlights 2013 Plans Net Production 27.6 Mboe/d Invest 0.3 Bn Average Rigs 2 Rigs 3 operated and 1 non-operated…
  85. INVESTOR PRESENATION – Apache Corp – slide 85
    GOM SHELF REGION HIGH RETURNS & CASH FLOW LEASEHOLD: 3 MM gross acres 2012 Highlights 2013 Plans Net Production 97.2 Mboe/d Invest 1.0 Bn Average Rigs 5 Wells 30 Wells 36 Exploit Low-risk, liquids-rich projects Success…
  86. INVESTOR PRESENATION – Apache Corp – slide 86
    EGYPT REGION OPERATIONS CONTINUE UNABATED LEASEHOLD: 9.7 MM gross acres 23 Concessions 2012 Highlights 2013 Plans Gross Production Over 363 Mboe/d Invest 1.1 Bn Average Rigs 25 Wells 270 Wells 198 Drilling Targets Bahariya,…
  87. INVESTOR PRESENATION – Apache Corp – slide 87
    ARGENTINA REGION VACA MUERTA A WORLD CLASS SHALE PLAY 2012 Highlights Record Production Over 48 Mboe/d Average Gas Plus Volumes 73.2 MMcf/d Average Gas Plus Price 4.89/Mcf Wells Drilled 30 Success Rate 100% 2013 Plans…
  88. INVESTOR PRESENATION – Apache Corp – slide 88
    VACA MUERTA SHALE 1 INTERNATIONAL PLAYER 1.3 million net acres in Vaca Muerta; Neuquen 586,000 net acres in liquids window Basin 0.8 BN barrels potential net recoverable Vaca Muerta Recent YPF Technical evaluation of liquids:…
  89. INVESTOR PRESENATION – Apache Corp – slide 89
    CLOSING 90
  90. INVESTOR PRESENATION – Apache Corp – slide 90
    APACHE CONTINUES TO DELIVER STRONG RESULTS 2012 production up 5.4% to 779 Mboe/d* 51% oil and liquids Production growth in 32 out of last 34 years Strong production replacement 2012 cash margins at over 40 per Boe 2012 Adjusted…
  91. INVESTOR PRESENATION – Apache Corp – slide 91
    AND YET APACHE TRADES AT A SIGNIFICANT DISCOUNT TO COMPETITORS Price / Book Value Price / 2013E Earnings 3.0x 24.0x 2.6x 2.5x 21.6x 21.1x 2.5x 20.0x 17.7x 2.1x 15.6x 2.0x 16.0x 1.6x 1.5x 10.8x 1.1x 12.0x 1.0x 8.4x 1.0x 8.0x…
  92. INVESTOR PRESENATION – Apache Corp – slide 92
    2013 ROADMAP TO VALUE GROWTH Accelerate North America liquids growth Build the future: Advance major projects 2 world class LNG hubs: Decades of oil-linked free cash flow visibility Grow our dividend Optimize our portfolio focus…
  93. INVESTOR PRESENATION – Apache Corp – slide 93
    APPENDIX 94
  94. INVESTOR PRESENATION – Apache Corp – slide 94
    RECENT EGYPTIAN DISCOVERIES CONFIRMING ADDITIONAL EXPLORATION OPPORTUNITIES Amoun NE-1X Discovery on the north flank of Apache Conc. WD 33-5 Amoun NE-1X Khalda Ridge Karama-15 Tested at 3,186 Bo/d of condensate and 11 mmcf/d from…
  95. INVESTOR PRESENATION – Apache Corp – slide 95
    ECONOMICS ASSUMPTIONS Production profiles: Gross sales volumes per well unless noted otherwise D+C Cost: Gross drill and complete cost per well Prices: Forward curve as of 25 May 2012 2013 2014 2015 2016 WTI 91.60 89.20 87.38 86.54…

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