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2012 INVESTOR DAY – Apache Corp

Apache Corp · Jun 14, 2012 · 114 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. 2012 INVESTOR DAY – Apache Corp – slide 1
  2. 2012 INVESTOR DAY – Apache Corp – slide 2
    2012 STRATEGIC UPDATE Steve Farris June 14, 2012
  3. 2012 INVESTOR DAY – Apache Corp – slide 3
    KEY ASSET DISCLOSURES TODAY 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…
  4. 2012 INVESTOR DAY – 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) Earnings per Share (/share) 28.00…
  5. 2012 INVESTOR DAY – Apache Corp – slide 5
    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…
  6. 2012 INVESTOR DAY – Apache Corp – slide 6
    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…
  7. 2012 INVESTOR DAY – Apache Corp – slide 7
    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,…
  8. 2012 INVESTOR DAY – Apache Corp – slide 8
    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…
  9. 2012 INVESTOR DAY – Apache Corp – slide 9
    CAPITAL, CASH FLOW OUTLOOK Significant free cash flow generation Flexibility to allocate: acceleration of drilling plays, exploration, new ventures BN 16 Cash Flow at Strip 14 Exploration/NV 12 Drilling Play Acceleration 10 8…
  10. 2012 INVESTOR DAY – Apache Corp – slide 10
    EGYPT MEETING THE ENERGY NEEDS OF A GROWING DEMOCRACY Cairo Heba 300 Apache Operated Apache Development Lease APA Egypt Gross MBOE/D 400 300 200 100 0 11
  11. 2012 INVESTOR DAY – Apache Corp – slide 11
    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%…
  12. 2012 INVESTOR DAY – Apache Corp – slide 12
    VISIBLE, COMPANY-MOVING UPSIDE BN BOE, Net Current Further Upside New Ventures Running room of 30.0 oil projects APAs 8 other global regions Net resources identified: Liard: 48 TCF discovery Other exploration: 25.0 GOM Deepwater,…
  13. 2012 INVESTOR DAY – Apache Corp – slide 13
    A STEP CHANGE IN APACHES EVOLUTION Expanded U.S. onshore position 67K locations, 9.2 BN BOE (97% unbooked) Global exploration 8.8 BN BOE discovered (unbooked) 6.2 BN BO potential in oil projects Financial strength to accelerate…
  14. 2012 INVESTOR DAY – Apache Corp – slide 14
    PERMIAN REGION John Christmann June 14, 2012
  15. 2012 INVESTOR DAY – Apache Corp – slide 15
    APACHE PERMIAN CURRENT PROFILE: A MAJOR GROWTH BUSINESS New Mexico Texas 101 MBOE/D net (70% Liquids) 3.5 million acres (1.6 million net) 2012E: 32 drilling rigs (average) Drill 760 wells Midland 20 mi APA acreage Region…
  16. 2012 INVESTOR DAY – Apache Corp – slide 16
    ACCELERATING ACTIVITY 5X INVESTMENT, 6X OPERATED RIG COUNT IN 2 YEARS Apache Permian Evolution: 2010 2011 2012E Employees 345 662 792 Investment 0.4B 1.2B 1.9B Cash Flow 1.1B 1.7B 1.9B Rigs 5 25 32 Horizontal 20 40 120…
  17. 2012 INVESTOR DAY – Apache Corp – slide 17
    ACCELERATING ACTIVITY 11% PRODUCTION CAGR Net MBOE/D 110 40 Operated Rigs (Bar) (Line) 100 Mariner Closing 35 90 80 BP Closing 30 APA Permian 70 Region 25 Established 60 20 50 40 15 30 10 20 5 10 0 0 2010 2011 2012E…
  18. 2012 INVESTOR DAY – Apache Corp – slide 18
    SOLID COMPETITIVE POSITION rigs Running 34 Rigs 000 Net Acres 1.6 MM Net Acres 50 3,000 40 1,600 30 1,200 20 800 10 400 0 0 AREX EGN FST CVX KWK CHK LPI CHK EGN LPI COP COP RRC EP…
  19. 2012 INVESTOR DAY – Apache Corp – slide 19
    CURRENT PLAY 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…
  20. 2012 INVESTOR DAY – Apache Corp – slide 20
    MIDLAND BASIN MULTI-PLAY GROWTH ENGINE Leonard Lime APA acreage Midland Vertical Target Cline Shale Target Midland Basin Leonard Wolfcamp Shale Target Leonard Cline Shale Upper Spraberry Wolfcamp Shale Lower Spraberry…
  21. 2012 INVESTOR DAY – Apache Corp – slide 21
    MIDLAND BASIN VERTICAL MULTI-STACKED VERTICAL PAYS Hartley 38-9 (Wolfcamp/Strawn) Craig 16 5 (Devonian/U Wolfcamp) Acres (000) 966 (461 net) 30-day IP BOE/D 408 30-day IP BOE/D 196 EUR MBOE 641 EUR MBOE 230 Net MBOE/D (April) 36…
  22. 2012 INVESTOR DAY – Apache Corp – slide 22
    MIDLAND BASIN VERTICAL DEADWOOD: IMPACTIVE GROWTH Oil (Gross MBBL/D) Gas (Gross MMCF/D) 12 42 Apache Operated 10 35 8 28 6 21 4 3rd Party Operated 14 2 7 0 0 Aggressive growth: production up 5x to 16MBOE/D in 16…
  23. 2012 INVESTOR DAY – Apache Corp – slide 23
    MIDLAND BASIN VERTICAL DRILLING INVENTORY ECONOMICS 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% PUD) 0 0 6 12…
  24. 2012 INVESTOR DAY – Apache Corp – slide 24
    CLINE SHALE HORIZONTAL EXPLOITATION Apache Acreage in Play Fairway Acres (000) 451 (334 net) Net MBOE/D (April) 0.5 2012 New Wells 10 Drilling Inventory 2,321 Locations 642 MMBOE net Deadwood area 4 wells drilled by APA to date:…
  25. 2012 INVESTOR DAY – Apache Corp – slide 25
    CLINE SHALE STACKED SHALE HORIZONTAL TARGETS Midland Basin Apache Acreage Type Log Leonard Lime Gamma Ray Organic Indicator Reservoir Parameters (Lower Cline) Prolific, Pennsylvanian age organic shales Leonard Average thickness…
  26. 2012 INVESTOR DAY – Apache Corp – slide 26
    CLINE SHALE LEADING GLASSCOCK CO. CLINE PLAYER Squire 9-2H PhilMac 1HR Spud Peak IP 30d Avg EUR Lateral Frac 30-day IP BOE/D 306 30-day IP BOE/D 353 Well Date (BOE/D) (BOE/D) (MBOE) (ft.) Stages EUR MBOE 360 EUR MBOE 433 Mack 8-2H…
  27. 2012 INVESTOR DAY – Apache Corp – slide 27
    CLINE SHALE DRILLING INVENTORY ECONOMICS 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 12 18 24 30…
  28. 2012 INVESTOR DAY – Apache Corp – slide 28
    WOLFCAMP SHALE PROVEN HORIZONTAL OPPORTUNITY Apache Acreage in Play Fairway Acres (000) 377 (272 net) Net MBOE/D (April) 0.5 Wolfcamp June MTD average: 2.1 MBOE/D Shale 2012 New Wells 33 Drilling Inventory 971 Locations 347 MMBOE…
  29. 2012 INVESTOR DAY – Apache Corp – slide 29
    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…
  30. 2012 INVESTOR DAY – Apache Corp – slide 30
    WOLFCAMP SHALE ROBUST RESULTS Peak IP 30d Avg EUR Lateral Frac Well Status (BOE/D) (BOE/D) (MBOE) (ft.) Stages Scott Sugg 1H Prod 1255 726 682 7,322 23 Bennie 4342 2H 11-day IP BOE/D 799 Bennie 1H Prod 588 492 553 6,486 19 Bennie…
  31. 2012 INVESTOR DAY – Apache Corp – slide 31
    WOLFCAMP SHALE DRILLING INVENTORY ECONOMICS 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 24 30 36 42…
  32. 2012 INVESTOR DAY – Apache Corp – slide 32
    CENTRAL BASIN PLATFORM PRODUCTION HEART OF THE BASIN, WITH UPSIDE APA acreage Acres (000) 1,750 (777 net) North Shelf NET MBOE/D (April) 57 Northwest Shelf 2012 New Wells 140 Drilling Inventory 9,798 Locations Central Basin 691…
  33. 2012 INVESTOR DAY – Apache Corp – slide 33
    CENTRAL BASIN PLATFORM LATEST HORIZONTAL REDEVELOPMENT RESULTS Slaughter (San Andres) Shafter Lake (San Andres) Slaughter Shafter Lake TXL N. McElroy CS Dean A-264H SLSAH 612H 30-day IP BOE/D 156 30-day IP BOE/D 295…
  34. 2012 INVESTOR DAY – Apache Corp – slide 34
    CENTRAL BASIN PLATFORM DRILLING INVENTORY ECONOMICS 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 36 42 48 54…
  35. 2012 INVESTOR DAY – Apache Corp – slide 35
    YESO RAMPING UP ACTIVITY Eddy Co. Birdie Federal 17 Tony Fed 35 Acres (000) 68 (64 net) 30-day IP BOE/D 121 30-day IP BOE/D 152 EUR MBOE 194 EUR MBOE 190 Net MBOE/D (April) 3 Horizontal 2012 New Wells 111 Program Drilling…
  36. 2012 INVESTOR DAY – Apache Corp – slide 36
    YESO DRILLING INVENTORY ECONOMICS 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 60 Month…
  37. 2012 INVESTOR DAY – Apache Corp – slide 37
    DELAWARE BASIN EMERGING OPPORTUNITIES Acres (000) 584 (262 net) Net MBOE/D (April) 3 2012 New Wells 18 Avalon/ Bone Spring Drilling Inventory 1,823 Locations 284 MMBOE net Stratigraphy Bell Canyon Mountain Delaware…
  38. 2012 INVESTOR DAY – Apache Corp – slide 38
    AVALON/BONE SPRING 3500 PAY SECTION WITH MULTIPLE TARGETS Delaware Basin Apache Acreage Type Log Gamma Ray Organic Indicator Reservoir Parameters Bell Canyon Mountain Delaware (Avalon, 1st+3rd Bone Spring) Group Cherry…
  39. 2012 INVESTOR DAY – Apache Corp – slide 39
    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…
  40. 2012 INVESTOR DAY – Apache Corp – slide 40
    DELAWARE BASIN DRILLING INVENTORY ECONOMICS 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 30 36 42 48…
  41. 2012 INVESTOR DAY – Apache Corp – slide 41
    13% PRODUCTION CAGR (WITH UPSIDE) LIVING WITHIN CASH FLOW Net MBOE/D 180 Cline Shale 160 Yeso Delaware Basin 140 Wolfcamp Shale 120 Midland Basin Vertical 100 80 Central Basin Platform 60 40 Production Base 20 0 2010…
  42. 2012 INVESTOR DAY – Apache Corp – slide 42
    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…
  43. 2012 INVESTOR DAY – Apache Corp – slide 43
    CENTRAL REGION Rob Johnston June 14, 2012
  44. 2012 INVESTOR DAY – Apache Corp – slide 44
    APACHE CENTRAL POSITIONED FOR HORIZONTAL LIQUIDS GROWTH 59 MBOE/D net (29% Liquids)* Kansas 1.9 million acres (1.1 million net) 2012E: 25 drilling rigs (Q3-Q4) Texas Anadarko Basin Drill 240 wells Apaches first region: Canyon…
  45. 2012 INVESTOR DAY – Apache Corp – slide 45
    ANADARKO BASIN BENEFIT FROM OVER A MILE OF STACKED PAY FORMATIONS Texas Panhandle Central Oklahoma Generalized Cross-Section of Anadarko Basin 46
  46. 2012 INVESTOR DAY – Apache Corp – slide 46
    TRANSITION TO HORIZONTAL DRILLING 10% OF WELLS NOW = 67% OF PRODUCTION APA Rigs per Month APA Net Operated MBOE/D 26 60 24 55 22 50 20 45 18 40 16 35 14 30 Horizontal 12 25 10 20 8 Vertical Vertical Horizontal 15 6 4…
  47. 2012 INVESTOR DAY – Apache Corp – slide 47
    CURRENT PLAY INVENTORY Known Locations to Drill 32,546 Net MMBOE 5,395 % of MMBOE PUD 1.5% Granite Wash Oklahoma Tonkawa Locations 22,823 Locations 2,795 Net MMBOE 4,535 Net MMBOE 202 Texas Cleveland Marmaton Locations…
  48. 2012 INVESTOR DAY – Apache Corp – slide 48
    GRANITE WASH DEVELOPMENT MODEL BASED ON PROVEN EXPERIENCE Horizontal wells with 12-15 frac stages 1 frac stage: drain 10-15 acres, recover 70-130 MBOE Example of 1 section developed with 4 Granite Wash horizontals Map view sec. 55…
  49. 2012 INVESTOR DAY – Apache Corp – slide 49
    GRANITE WASH DRILLING RESULTS STRONG, STEADILY ENHANCED THROUGH EXPERIENCE Apache Granite Wash horizontal well results: 2010 2011 2012 YTD Wells Drilled 27 36 29 Cost/Well 8.5 10.3 9.2 (Average MM) EUR/Well 606 895 1146…
  50. 2012 INVESTOR DAY – Apache Corp – slide 50
    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…
  51. 2012 INVESTOR DAY – Apache Corp – slide 51
    GRANITE WASH ECONOMICS, RECENT WELLS 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 EUR MBOE 2,583 EUR…
  52. 2012 INVESTOR DAY – Apache Corp – slide 52
    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 (April*) 6.8 2012 New Wells 54 Drilling…
  53. 2012 INVESTOR DAY – Apache Corp – slide 53
    TONKAWA ECONOMICS, RECENT WELLS 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 EUR MBOE 535 EUR…
  54. 2012 INVESTOR DAY – Apache Corp – slide 54
    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 (April*) 1.8 2012 New Wells 27 Pletcher 934 1H Drilling Inventory…
  55. 2012 INVESTOR DAY – Apache Corp – slide 55
    MARMATON ECONOMICS, RECENT WELLS 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 30-day IP BOE/D 679…
  56. 2012 INVESTOR DAY – Apache Corp – slide 56
    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 (April*) 2.0 2012 New Wells 35 Drilling Inventory 2,302 Locations…
  57. 2012 INVESTOR DAY – Apache Corp – slide 57
    CLEVELAND ECONOMICS, RECENT WELLS 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 300 EUR MBOE 278…
  58. 2012 INVESTOR DAY – Apache Corp – slide 58
    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 (April) 0.6 2012 New Wells 15 Existing Drilling Inventory 1,016 Locations 61 sq mi 3D 101…
  59. 2012 INVESTOR DAY – Apache Corp – slide 59
    CANYON WASH ECONOMICS, RECENT WELLS 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 MBOE 736 100 50…
  60. 2012 INVESTOR DAY – Apache Corp – slide 60
    GROWTH ACCELERATION UNDERWAY WILL EXIT 2012 WITH 3X OUR 2011 HORIZONTAL RIGS Net MBOE/D 180 160 Other Canyon Wash 140 Cleveland Marmaton 120 Tonkawa 100 80 Granite Wash 60 40 20 Production Base 0 2011 2012E 2013E 2014E…
  61. 2012 INVESTOR DAY – Apache Corp – slide 61
    BREAK 62
  62. 2012 INVESTOR DAY – Apache Corp – slide 62
    ONGOING DEVELOPMENT PROJECTS Rod Eichler June 14, 2012
  63. 2012 INVESTOR DAY – Apache Corp – slide 63
    ONGOING DEVELOPMENT PROJECTS CURRENT PIPELINE: 200 MBOE/D First Project Region Net MBOE/D Production FID Forties Alpha Satellite Platform North Sea 11.8 2013 2010 Macedon Australia 8.2 2013 2010 Hydra Egypt 11.8 2013 2012 Greater…
  64. 2012 INVESTOR DAY – Apache Corp – slide 64
    AUSTRALIA PROJECTS Apache Indian Ocean Wheatstone CPP Balnaves Varanus Is Hub Julimar Devil Creek Gas Plant Australia Wheatstone LNG Coniston & Dom Gas Plant Macedon Macedon Gas Plant 20 mi 65
  65. 2012 INVESTOR DAY – Apache Corp – slide 65
    MACEDON Apache WI 28.57% Operator BHPB First Production Q2 2013 WESTERN AUSTRALIA Net Production 49 MMCF/D Net EUR 156 BCF MACEDON FIELD Ashburton North Strategic Industrial Area Includes construction of (LNG Site) ONSLOW…
  66. 2012 INVESTOR DAY – Apache Corp – slide 66
    CONISTON Coniston Novara Development (New) Van Gogh Development (Existing) Ningaloo Vision FPSO Tie-back field development utilizing Apaches Apache WI 52.50% (Operator) FPSO Ningaloo Vision Partner Inpex 7 multi-lateral…
  67. 2012 INVESTOR DAY – Apache Corp – slide 67
    BALNAVES Apache WI 65% (Operator) Partner Kufpec First Production Q1 2014 Net Production 19.5 MBO/D Net EUR 14.3 MMBOE Subsea development through the FPSO Armada Claire Major equipment packages and installation contract in…
  68. 2012 INVESTOR DAY – Apache Corp – slide 68
    LNG PROJECTS Kitimat LNG 5.0+ MTPA/Train (770+ MMCF/D) Apache operator (40% WI) Export license & environmental approvals granted Expansion potential Wheatstone LNG 8.9 MTPA (1,250 MMCF/D) Apache 13% WI FID achieved Q3…
  69. 2012 INVESTOR DAY – Apache Corp – slide 69
    WHEATSTONE LNG Apache WI 13% Operator Chevron First LNG Delivery Dec-2016 Net Production 39.4 MBOE/D Julimar Field Net 1.3 TCF EUR 26.5 MMBO Site work has begun and major long lead items have been ordered with partial delivery…
  70. 2012 INVESTOR DAY – Apache Corp – slide 70
    KITIMAT LNG Apache WI 40% (Operator) Partners EOG, Encana At 54 north, Kitimat First Delivery Pending FID is one of North Americas closest ports Net Production 51.1 MBOE/D to Asian markets. per train Kitimat-Tokyo 3,988 nm, 10…
  71. 2012 INVESTOR DAY – Apache Corp – slide 71
    KITIMAT LNG - HORN RIVER DEVELOPMENT Excellent acreage position: 289,000 gross acres 196,000 Apache net acres Net recoverable resource: 9.2 TCF Current net production: 90 MMCF/D 79 producing wells from 7 drill pads 912 potential…
  72. 2012 INVESTOR DAY – Apache Corp – slide 72
    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 Q3 2013 73
  73. 2012 INVESTOR DAY – Apache Corp – slide 73
    GOM DEEPWATER PROJECTS Mandy IP: June 7, 2012 Ramping up to 4 MBOE/D net WI 40% Staurolite Backslice Eagle Nest Refugio Bushwood IP: 3Q 2012 Wide Berth Parmer IP: April 2012 (Drilling) 4.2 MBOE/D net WI 56.25%…
  74. 2012 INVESTOR DAY – Apache Corp – slide 74
    LUCIUS KEATHLEY CANYON 874/875/918/919 Apache WI 11.7% Operator Anadarko First Production Q3 2014 Net Production 10.0 MBOE/D Net EUR 31.1 MMBOE resource Proven Pliocene & Miocene subsalt oil development in 7,000 WD Development…
  75. 2012 INVESTOR DAY – Apache Corp – slide 75
    HEIDELBERG GREEN CANYON 859/860/903/904/948 Tahiti Discovered Apache WI 12.5% Chevron, 2002 Resource 450+ MMBOE Operator Anadarko Caesar/Tonga Discovered First Production 2016 Pending FID Anadarko, March 2012 Resource 200 400…
  76. 2012 INVESTOR DAY – Apache Corp – slide 76
    ONGOING DEVELOPMENT PROJECTS Current pipeline: 200 net MBOE/D Material, incremental, visible and multi-year Provides growth visibility beyond 2016: LNG: 90-140 MBOE/D starting 2017 APA infrastructure enables future growth:…
  77. 2012 INVESTOR DAY – Apache Corp – slide 77
    EXPLORATION & NEW VENTURES John Bedingfield June 14, 2012
  78. 2012 INVESTOR DAY – Apache Corp – slide 78
    APACHE CORPORATE EXPLORATION/NEW VENTURES Capture large resources for long term benefit of Apaches shareholders The Apache way: Away from the herd Focus on cost efficiency, economics Balanced: global, frontier to underexplored…
  79. 2012 INVESTOR DAY – Apache Corp – slide 79
    EXPLORATION: APACHES ADVANTAGES Global reach, focused approach Broad experience From unconventionals to deepwater, EOR and infrastructure projects Technical expertise Top-of-industry geophysics capabilities Development Solid…
  80. 2012 INVESTOR DAY – Apache Corp – slide 80
    CURRENT EXPLORATION PLAYS Liard Basin Shale Cook Inlet Williston Basin Oil Oil Mississippian Lime Oil Kenya Deepwater Oil Vaca Muerta Shale Oil New Zealand Apache Acreage Unconventional Oil 81
  81. 2012 INVESTOR DAY – Apache Corp – slide 81
    EXPLORATION: NEW PLAY SUMMARY Discovered Prospective Net Acres (net unbooked (net unbooked Combined (000) resource) potential) (net unbooked) Liard Basin 430 48 TCF 8.0 BN BOE Vaca Muerta Oil 450 0.8 BN BO 0.8 BN BO Mississippian…
  82. 2012 INVESTOR DAY – Apache Corp – slide 82
    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 APA controls the heart of the basin: 430,000 acres of…
  83. 2012 INVESTOR DAY – Apache Corp – slide 83
    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 -…
  84. 2012 INVESTOR DAY – Apache Corp – slide 84
    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%…
  85. 2012 INVESTOR DAY – Apache Corp – slide 85
    LIARD BASIN APACHE D-34-K WELL RESULTS Gas Filled Porosity Horizontal well: Vertical depth = 12,600 ft Lateral Length= 2,900 ft 6 fracs stages DRAFT PIC 30-day IP: 21.3 MMCF/D 3.6 MMCF/D per frac 12 month cum = 3.1 BCF EUR =…
  86. 2012 INVESTOR DAY – Apache Corp – slide 86
    LIARD BASIN DEVELOPMENT MODEL 18-frac horizontal wells: Horizontal Well (18 fracs) Raw MMcf/d 7,050-8,040 ft laterals 120 400 ft frac spacing 100 EUR/Well (18 fracs): 74 BCF raw 80 66 BCF sales 60 Pad drilling: 40 20 12…
  87. 2012 INVESTOR DAY – Apache Corp – slide 87
    LIARD BASIN COMMERCIAL PERSPECTIVE Liard Horn Infrastructure already exists: River all Apache wells connected to sales gas pipeline British Columbia Alberta Access to major incremental infrastructure: TransCanada, Spectra…
  88. 2012 INVESTOR DAY – Apache Corp – slide 88
    VACA MUERTA SHALE 1 INTERNATIONAL PLAYER 900,000 net acres in Vaca Muerta; Neuquen 450,000 net acres in liquids window Basin 0.8 BN barrels potential net recoverable Vaca Muerta Recent YPF Technical evaluation of liquids: Shale…
  89. 2012 INVESTOR DAY – Apache Corp – slide 89
    VACA MUERTA SHALE WORLD CLASS SHALE PLAY Reservoir Units Vaca Muerta (Oil) Eagle Ford (Oil) Middle Bakken Depth (ft) 4600 - 6500 6000 - 8000 7000 - 11000 Thickness (ft) 150 - 300 75 - 300 < 100 Porosity (%) 8 - 13 4 - 15 8 - 12…
  90. 2012 INVESTOR DAY – Apache Corp – slide 90
    VACA MUERTA SHALE CONTINUOUS OIL FILLED POROSITY Oil Filled Porosity: Cross-Section of APA Acreage Area Profiled Recent YPF Wells Apache Acreage Oil Filled Porosity Data from 360 Vaca Muerta well penetrations in…
  91. 2012 INVESTOR DAY – Apache Corp – slide 91
    VACA MUERTA SHALE 2012 OIL WORK PROGRAM 2012 Vaca Muerta Oil Activity Program Area Profiled Recent YPF Wells BBG-39 Apache Acreage Recompletions 10 miles New wells 10 recompletions, 2 vertical wells, 3 horizontal…
  92. 2012 INVESTOR DAY – Apache Corp – slide 92
    VACA MUERTA SHALE HORIZONTAL WELL SIMULATION 3,000 lateral well with 10 fracs Simulation based on vertical test data OOIP 73.8 MMBO/section Drainage area: 120 acres Vaca Muerta Oil Horizontal Well BOE / D 2,100 D+C Cost MM 11.4…
  93. 2012 INVESTOR DAY – Apache Corp – slide 93
    MISSISSIPPIAN LIME FIRST MOVER, 580K NET ACRES OF STACKED PLAYS 580,000 net acres secured in Kansas, Nebraska First mover in extension of horizontal oil plays Low entry cost Nebraska Now majors, large cap E&Ps pursuing Kansas…
  94. 2012 INVESTOR DAY – Apache Corp – slide 94
    MISSISSIPPIAN LIME MULTIPLE STACKED PLAYS Type Log Development Schematic Oil GR Filled Porosity Shawnee Group Douglas Group P e n n s y l v a n i a n U p p e r Lansing Group Upper Penn Kansas City Group…
  95. 2012 INVESTOR DAY – Apache Corp – slide 95
    MISSISSIPPIAN LIME PLAY PROFILE 415,000 acres (100% WI) 2,500 play locations Play activity in APA focus area: 152 wells drilling, 224 permitted YTD Miss Lime Oil Filled Porosity: Cross-Section of APA Acreage Play Outline S N…
  96. 2012 INVESTOR DAY – Apache Corp – slide 96
    MISSISSIPPIAN LIME CHEROKEE PLAY PROFILE 230,000 acres (100% WI) 1,400 play locations Cherokee Play Outline Oil Filled Porosity: Cross-Section of APA Acreage S N Apache Acreage 97
  97. 2012 INVESTOR DAY – Apache Corp – slide 97
    MISSISSIPPIAN LIME UPPER PENN PLAY PROFILE 500,000 acres (100% WI) 3,300 play locations Upper Penn Play Outline Oil Filled Porosity: Cross-Section of APA Acreage S N Apache Acreage 98
  98. 2012 INVESTOR DAY – Apache Corp – slide 98
    MISSISSIPPIAN LIME EVALUATION ECONOMICS Mississippian Lime BOE / D 180 D+C Cost MM 3.5 160 140 EUR MBO 320 120 ROR 65% 100 80 WI / NRI 100% / 81% 60 40 Play Locations 2,500 (0% PUD) 20 Play Net EUR 800 MMBO 0 0 6 12 18 24…
  99. 2012 INVESTOR DAY – Apache Corp – slide 99
    WILLISTON BASIN OIL LEAD POSITION IN DANIELS COUNTY, MONTANA 300,000 net acres secured First mover in extension of Bakken oil resource Low entry cost Now followed by majors, large E&Ps 1,900 play locations, 1 BN BO play net…
  100. 2012 INVESTOR DAY – Apache Corp – slide 100
    WILLISTON BASIN STACKED OIL PLAYS Type Log Type Log Location Heath Big Snowy Otter Kibbey Oil GR Filled Porosity Charles Mississippian Apache Acreage Oil GR Filled Porosity Middle Bakken Madison 50 Avg Phi =…

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