Slide 1: Third-Quarter 2023 Financial & Operational Supplement
Third-Quarter 2023 Financial & Operational Supplement November 1, 2023
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: 3Q 2023 Key Metrics
3Q 2023 Key Metrics 3Q 2023 Reported Production 412 Mboe/d Adjusted Production(1) 340 Mboe/d Cost Incurred in Oil and Gas Property $572 Million Upstream Capital Investment(2) $474 Million Net Cash Provided by Operating Activities $764 Million Adjusted EBITDAX(2) $1,433 Million Free Cash Flow(2) $307
Slide 4: APA Corporate Strategy is Basis for Strong Partnership
APA Corporate Strategy is Basis for Strong Partnership Foundation For Disciplined Financial Leveraging Long-term Success Approach Diversified Portfolio ⎼ Prioritize long-term, full-cycle ⎼ Return a minimum of 60% of ⎼ Diversify risk through a balanced returns through capital allocation Free Cash Flo
Slide 5: 3Q Asset Update
3Q Asset Update APA CORPORATION 5
Slide 6: Recent Highlights
Recent Highlights Permian Execution and Well Performance Returned 65% ($440 Million) of Free Drive 3Q23 Oil Volumes Above Guidance Cash Flow to Shareholders in the First Three Quarters of 2023 Adjusted Production(1)(2) of 340 MBOE/D Repurchased $20 Million of Stock at Adjusted Oil Production(1)(2) o
Slide 7: 3Q 2023 Global Portfolio
3Q 2023 Global Portfolio Global 412,252 BOE/D 50% / 17% / 33% 48 Gross, 44 Net 23.5 Reported Production Oil / NGL / Gas Drilled & Completed Wells Avg Rigs United States International 225,639 BOE/D 186,613 BOE/D Reported Production Reported Production 37% / 29% / 34% 66% / 1% / 33% Oil / NGL / Gas Oi
Slide 8: U.S. Update
U.S. Update Asset Highlights 3Q 2023 Asset Stats ⎻ Strong performance continues to drive oil production volumes ahead of 225,639 BOE/D guidance Reported Production 37% / 29% / 34% Oil / NGL / Gas ⎻ Southern Midland Basin: Averaged 3 rigs; placed 6 wells on production in 3Q23 15 Gross, 12 Net Drilled
Slide 9: Egypt Update
Egypt Update Asset Highlights 3Q 2023 Asset Stats 138,575 BOE/D ⎻ Drilling program delivering; on-plan for average drilling days, well Reported Production connection timing, and average oil IP’s 64% / 0% / 36% Oil / NGL / Gas ⎻ Rig efficiency (wells per rig/year) has improved 13% in the first three
Slide 10: Suriname Update
Suriname Update Block 58 (TotalEnergies Operated) ⎻ Announced Oil Hub Project at Sapakara and Krabdagu ⎻ Completed successful appraisal drilling program at Krabdagu ⎻ Plan to proceed with FEED study for a 200 MBO/D FPSO ⎻ Underpinned by an estimated 700 million barrels of recoverable oil resource ⎻
Slide 11: North Sea Update
North Sea Update Asset Highlights 3Q 2023 Asset Stats 48,038 BOE/D ⎻ Achieved high-end of guidance, driven by strong initial production from the Reported Production Storr North well 74% / 3% / 23% Oil / NGL / Gas 0 Gross, 0 Net ⎻ Previously announced 4Q production decrease due to compressor repairs
Slide 12: Guidance
Guidance 4Q 2023 Commentary Production (MBOE/D) United States……………………………………………………………. 224 (37.5% oil) Excludes impact of potential gas curtailments Egypt (Reported)………………………………………………………. 138 (66% oil) North Sea……………………………………………………………….. 44 (78% oil) Sequential decline due to compressor repairs at Be
Slide 13: Appendix
APA Corporation Appendix APA CORPORATION | 13
Slide 14: Cash Return Summary
Cash Return Summary 2023 YTD 1Q 2023 2Q 2023 3Q 2023 2021 2022 Total 9/30/2023 Shares Repurchased (MM) 3.7 1.3 0.5 31.2 36.2 5.5 72.9 Average Stock Repurchased $38.93 $33.72 $41.90 $27.14 $39.34 $37.91 $34.00 Price Share Repurchases ($MM) $142 $46 $20 $847 $1,423 $208 $2,478 Dividends ($MM) $78 $77
Slide 15: Upstream Capital Investment
Upstream Capital Investment 1Q 2023 2Q 2023 3Q 2023 Total ($ in millions) United States $291 $308 $300 $899 Egypt (excluding noncontrolling interest) $123 $133 $149 $405 North Sea $54 $56 $15 $125 Suriname $27 $19 $10 $56 Upstream Capital Investment Total $495 $516 $474 $1,485 For a reconciliation o
Slide 16: Egypt Production Detail
Egypt Production Detail 2Q 2023 3Q 2023 Oil Gas Oil Gas (Bbls/d) (Mcf/d) Boe/d (Bbls/d) (Mcf/d) Boe/d Gross Production 140,652 517,291 226,867 144,528 472,744 223,319 Reported Production 87,790 337,413 144,026 88,521 300,326 138,575 % Gross 62% 65% 63% 61% 64% 62% Less: Tax Barrels 23,163 91,269 38,
Slide 17: Suriname PSC and APA / Total Energies Joint Venture
Suriname PSC and APA / Total Energies Joint Venture Summary Terms and Production Sharing Contract Mechanics Suriname Gov’t Profit Oil Split by 20% R-Factor Joint Apache 40% Total 40% Venture Staatsolie 20% Gross Contractors Apache 40% Total 40% Revenue 93.75% Staatsolie 20% 1. Opex Apache & Total in
Slide 18: Summary of Terms
Summary of Terms Suriname PSC Apache / Total JV • Cost oil recovery ceiling of 80% after royalty payment • Parties have the right to alternate proposals of exploration wells up to eight wells per year • Unrecovered cost oil balances carried forward until fully recovered on a project-by-project basis
Slide 19: Glossary of Referenced Terms
⎻ Upstream Capital Investment: Includes exploration, development, gathering, processing, and transmission capital, capitalized overhead, and settled asset retirement obligations. Excludes capital investment for property acquisitions, capitalized Glossary of interest, non-cash asset retirement additi
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations APA CORPORATION 20
Slide 21: Non-GAAP Reconciliation: Adjusted Earnings
Non – GAAP Reconciliation Adjusted Earnings 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 Attributable to Commo
Slide 22: 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 23: Non-GAAP Reconciliation: Free Cash Flow
Non – GAAP Reconciliation Cash Flow Before Changes in Operating Assets & Liabilities and Free Cash Flow Reconciliation of Net Cash Provided by Operating Activities to Cash Flows from Operations before Changes in Operating Assets and Liabilities and Free Cash Flow Cash flows from operations before ch
Slide 24: 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 operations before changes in operating assets and liabilities is a non-GAAP financial m
Slide 25: 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 26: 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 APA's expenditures related to our upstream capital activity. We define capital
Slide 27: apacorp.com
APA Corporation apacorp.com