Slide 1: Fourth-Quarter 2020 Financial & Operational Supplement
Fourth-Quarter 2020 Financial & Operational Supplement
Slide 2: Notice to Investors
Notice to Investors Certain statements in this earnings supplement contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 including, without limitation, expectations, beliefs, plans, and objectives r
Slide 3: 4Q and Full-Year 2020 Key Metrics
4Q and Full-Year 2020 Key Metrics 4Q 2020 FY 2020 Reported Production 411 Mboe/d 440 Mboe/d Adjusted Production(1) 365 Mboe/d 394 Mboe/d Cost Incurred in Oil and Gas Property $257 Million $1,211 Million Upstream Capital Investment(2) $189 Million $988 Million Net Cash Provided by Operating Activitie
Slide 4: Apache's Strategy
Apache’s Strategy Foundation For Leveraging Disciplined Long-Term Diversified Financial Success Portfolio Approach • Prioritizing returns over production • Balanced commodity profile and • Aggressively managing cost structure growth geographic pricing points diversify risk • Moderating capital inves
Slide 5: ESG Leadership: Primary Areas of Focus
ESG Leadership: Primary Areas of Focus We focus our ESG efforts in areas that are: core to our business, important to stakeholders, and where we are capable of having a material impact ESG Vision 2021 Compensation Goal Be at forefront of industry’s efforts Targeting < 1% flaring intensity to measure
Slide 6: 2021 Plan Commentary
2021 Plan Commentary 2021 Plan Regional Activity • Established upstream capital budget of $1.1 billion • 2 rig appraisal & exploration program in Suriname • 35% U.S. / 45% International • 20% Exploration (Suriname) • 5 rig program in Egypt • 1 floating rig / 1 platform crew in the North Sea • Based
Slide 7: Block 58 Offshore Suriname Update
Block 58 Offshore Suriname Update • Announced fourth discovery at Keskesi East-1 in January o Currently drilling to deeper Neocomian-aged targets • 2021 Exploration Program moving towards northern portion of block, next prospect: Bonboni • Appraisal Program with TOTAL targeting FID by year-end and f
Slide 8: 1Q21 Guidance
1Q21 Guidance New Production Commentary Production (Mboe/d) U.S. production decline from 4Q20 United States………………………………………………………………………….. ~204 largely attributable to weather downtime & completion schedule cadence International (Adjusted)…………………………………………………………. 120 Total Adjusted Production………………………
Slide 9: 2021 Guidance
2021 Guidance New Production (Mboe/d) United States…………………………………………………………………………………………… 220 – 225 International…………………………………………………………………………………………… 170 – 175 Reported Production……………………………………………………………………… 390 – 400 Less: Egypt Tax Barrels…………………………………………………………… 17 Less: Egypt Noncontrolling Interest……
Slide 10: 4Q Asset Update
4Q Asset Update 10
Slide 11: 4Q 2020 Global Portfolio
4Q 2020 Global Portfolio GLOBAL 410,758 BOE/D 47% / 18% / 35% 10 Gross, 10 Net 8 Reported Production Oil / NGL / Gas Drilled & Completed Wells(1) Avg Rigs UNITED STATES INTERNATIONAL 232,975 BOE/D 177,783 BOE/D Reported Production Reported Production 32% / 30% / 38% 68% / 1% / 31% Oil / NGL / Gas Oi
Slide 12: 4Q 2020 Operating Cash Margins
4Q 2020 Operating Cash Margins Egypt North Sea United States(2) $50 $45 $44 / Boe $40 $35 $30 $33 / Boe $29 Per Boe $25 $22 + $9 Per Boe vs. 3Q $20 $21 / Boe $15 - $1 vs. 3Q $15 / Boe $12 $11 / Boe Per Boe $10 $9 / Boe Flat vs. 3Q $5 $0 Operating Cash Margin(1) Avg Realization Cash Operating Cost (1
Slide 13: 4Q Egypt Update
4Q Egypt Update ASSET HIGHLIGHTS ASSET STATS • Gross production decline reflects activity reductions in 2020 115,876 BOE/D Reported Production o Reduced rig count by ~50% from 1Q’20 60% / 1% / 39% o Decline rate expected to moderate in 2021 Oil / NGL / Gas 9 Gross, 9 Net Drilled & Completed Wells(1)
Slide 14: 4Q North Sea Update
4Q North Sea Update ASSET HIGHLIGHTS ASSET STATS • Production increased 4% in the quarter due to workover timing 61,907 BOE/D Reported Production 82% / 3% / 15% Oil / NGL / Gas • Maintaining 1 floating rig / 1 platform crew (↓ 1 crew in 1Q20) 0 Gross, 0 Net Drilled & Completed Wells(1) • Oil discove
Slide 15: 4Q U.S. Update
4Q U.S. Update ASSET HIGHLIGHTS ASSET STATS • Permian curtailments (including Alpine High) were ~11,500 Boe/d (30% oil) 232,975 BOE/D Reported Production 32% / 30% / 38% • Initiated DUC completion program in mid-November Oil / NGL / Gas o Meaningful flowback of first Permian oil wells to begin in Ma
Slide 16: Appendix
Appendix 16
Slide 17: Balance Sheet Progress in 2020
Balance Sheet Progress in 2020 Updated Debt Maturity Profile ($MM)(1) • Repurchased debt in 2020 at favorable pricing $1,600 ~$4,500 • Issued $1.25BN of 5- and 7-year notes at sub 5% $1,400 coupons in 3Q20 $1,200 • Use of debt financing proceeds(2): $1,000 o ~$638MM cash tender for notes in 3Q20 o ~
Slide 18: Commodity Hedging Program
Commodity Hedging Program Open Commodity Derivative Positions As of February 23, 2020 Weighted Avg Price Production Period Trade Type Index Units Daily Volume $ / Unit Natural Gas Basis Hedges April 2021 – December 2021 Basis Swap IF Waha / IF HSC MMBtu 136,655 ($0.36) January 2022 – December 2022 B
Slide 19: Credit Facility Profile
Credit Facility Profile $4 Billion Revolving Credit Facility • Apache’s $4 BN committed credit facility for general corporate purposes, matures March 2024 Facility Type Senior Unsecured o Unsecured facility held by 18 banks, 17 of which are ‘A’ rated or Maturity March 2024 higher o No ratings trigge
Slide 20: Upstream Capital Investment
Upstream Capital Investment ($ in Millions) 1Q20 2Q20 3Q20 4Q20 YE20 $ United States…….…………………………………………......... 261 $ 52 $ 6 $ 40 $ 359 Egypt (Apache's interest only)………………………......... 99 79 65 64 307 North Sea…………………………………………………………….. 51 52 40 46 189 Suriname…………………………………………..................... 3
Slide 21: Egypt: Production Detail
Egypt: Production Detail 3Q 2020 4Q 2020 Liquids Gas Liquids Gas (Bbls/d) (Mcf/d) Boe/d (Bbls/d) (Mcf/d) Boe/d Gross Production 161,116 649,566 269,377 142,366 617,465 245,277 Reported Production 79,804 286,744 127,595 69,932 275,662 115,876 % Gross 50% 44% 47% 49% 45% 47% Less: Tax Barrels 9,896 23
Slide 22: Glossary of Referenced Terms
Glossary of Referenced Terms • Upstream Capital Investment: Includes exploration, development, gathering, processing, and transmission capital, capitalized overhead, and settled asset retirement obligations, and excludes capitalized interest, non-cash asset retirement additions and revisions, and Eg
Slide 23: Non-GAAP Reconciliations
Non – GAAP Reconciliations 23
Slide 24: Non-GAAP Reconciliation: Adjusted Earnings (Quarter to Date)
Non – GAAP Reconciliation Adjusted Earnings (Quarter to Date) Reconciliation of Income Attributable to Common Stock to Adjusted Earnings Our presentation of adjusted earnings and adjusted earnings per share are non-GAAP measures because they exclude the effect of certain items included in Income Att
Slide 25: Non-GAAP Reconciliation: Adjusted Earnings (Year to Date)
Non – GAAP Reconciliation Adjusted Earnings (Year to Date) Reconciliation of Income Attributable to Common Stock to Adjusted Earnings Our presentation of adjusted earnings and adjusted earnings per share are non-GAAP measures because they exclude the effect of certain items included in Income Attrib
Slide 26: Non-GAAP Reconciliation: Adjusted EBITDAX
Non – GAAP Reconciliation Adjusted EBITDAX Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDAX Management believes EBITDAX, or earnings before income tax expense, interest expense, depreciation, amortization and exploration expense is a widely accepted financial indicator
Slide 27: Non-GAAP Reconciliation: Segment Cash Flows
Non – GAAP Reconciliation Segment Cash Flows Reconciliation of Net Cash Provided by Operating Activities to Cash Flows from Continuing Operations before Changes in Operating Assets and Liabilities Cash flows from continuing operations before changes in operating assets and liabilities is a non-GAAP
Slide 28: Non-GAAP Reconciliation: Cash Flow From Operations
Non – GAAP Reconciliation Cash Flow From Operations Before Changes in Operating Assets and Liabilities Reconciliation of Net Cash Provided by Operating Activities to Cash Flows from Operations before Changes in Operating Assets and Liabilities Cash flows from operations before changes in operating a
Slide 29: Non-GAAP Reconciliation: Net Debt
Non – GAAP Reconciliation Net Debt Reconciliation of Debt to Net Debt Net debt, or outstanding debt obligations less cash and cash equivalents, is a non-GAAP financial measure. Management uses net debt as a measure of the Company's outstanding debt obligations that would not be readily satisfied by
Slide 30: Non-GAAP Reconciliation: Upstream Capital Investment
Non – GAAP Reconciliation Upstream Capital Investment Reconciliation of Costs Incurred to Upstream Capital Investment Management believes the presentation of upstream capital investments is useful for investors to assess Apache's expenditures related to our upstream capital activity. We define capit