Slide 1: First-Quarter 2020 Financial & Operational Supplement
First-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: COVID-19 | Apache Response
COVID-19 | A PAC H E R ES PO NS E GLOBAL – Prioritizing Health & Safety Of Employees And Communities In Which We Operate • Acted quickly to close offices throughout organization • Procured a pandemic / infectious disease response helicopter in the North Sea and Suriname to ensure safe • Implemented
Slide 4: 1Q 2020 Key Metrics
1Q 2020 Key Metrics 1Q 2020 Reported Production 468 Mboe/d Adjusted Production(1) 423 Mboe/d Cost Incurred in Oil and Gas Property $497 Million Upstream Capital Investment(2) $442 Million Net Cash Provided by Operating Activities $502 Million Adjusted EBITDAX(2) $764 Million Loss Per Share ($11.86)
Slide 5: Positioning To Withstand Volatility
Positioning To Withstand Volatility Disciplined Leveraging Strong Liquidity Financial Diversified Profile Approach Portfolio • Managing towards Cash Flow • International assets generating more • Manageable bond maturities over next Neutrality(1) resilient cash flows in a falling price 5 years (less
Slide 6: Decisive Actions Taken
Decisive Actions Taken Managing To Cash Flow Neutrality & Preserving Liquidity Reduced 2020 upstream capital investment to approximately $1.1 BN(1,2) (↓ ~55% from 2019) Decreased annual dividend payout by $340 MM (↓ 90%) Implemented deeper cost cutting measures, doubling original estimate to >$300 M
Slide 7: Apache's Diversified Portfolio
Apache’s Diversified Portfolio Managing Through Near-Term Volatility United States North Sea Egypt • Eliminating all drilling & completion • Reduced to essential personnel and • Field operations unaffected thus far by activity (final rig release in mid-May) strengthened continuity plans to COVID-19
Slide 8: Ample Liquidity Runway
Ample Liquidity Runway Apache Credit Facility $5,000 $4,000 800 $ millions $3,000 937 $2,000 4,000 $1,000 2,263 $- Committed April 2021 – 2023 Availability Facility(1) LC Postings(2) Bond Maturities(1) • ~$3.2 BN of availability when giving effect to April LC postings • Plan to repay or refinance 20
Slide 9: Success in Block 58 Offshore Suriname
Success in Block 58 Offshore Suriname • Announced significant oil discovery at Sapakara West-1 on April 2nd • Campanian / Santonian – at least 79 meters (259 feet) of net oil/gas condensate pay Maka Discovery • Encountered a distinct fan system separate from Maka Central-1 discovery Jan. 2020 Kwaskw
Slide 10: ESG – Investing in Our People, Community and Environment
ESG – Investing in Our People, Community and Environment Recent ESG Initiatives • Linked 2020 ESG performance directly to short-term incentive compensation • Initiated alignment of disclosures with Sustainability Accounting Standards Board (SASB) and Task Force on Climate- related Financial Disclosu
Slide 11: 1Q Results
1Q Results Apache
Slide 12: 1Q 2020 Global Portfolio
1Q 2020 Global Portfolio GLOBAL 467,771 BOE/D 49% / 18% / 33% 44 Gross, 43 Net 21 Reported Production Oil / NGL / Gas Drilled & Completed Wells(1) Avg Rigs UNITED STATES INTERNATIONAL 282,636 BOE/D 185,135 BOE/D Reported Production Reported Production 36% / 29% / 35% 69% / 2% / 29% Oil / NGL / Gas O
Slide 13: 1Q Permian Summary
1Q Permian Summary REGION HIGHLIGHTS REGION STATS 273,091 BOE/D • Averaged 4 rigs, 1 frac crew and placed 12 wells on production in the Reported Production Midland basin 36% / 29% / 35% • Substantially completed drilling first 3 mile lateral pad (Goodspeed) at Azalea Oil / NGL / Gas achieving signif
Slide 14: 1Q Egypt Summary
1Q Egypt Summary REGION HIGHLIGHTS REGION STATS 116,525 BOE/D • PSC effects positively impacted adjusted production volumes (gross ↓~2% vs. 4Q19) Reported Production 63% / 1% / 36% • Program success rate: 94% (15 out of 16 wells) Oil / NGL / Gas 16 Gross, 16 Net • Recent exploration discoveries leve
Slide 15: 1Q North Sea Summary
1Q North Sea Summary REGION HIGHLIGHTS REGION STATS 68,610 BOE/D • Production increase driven by high-volume Garten-2 well Reported Production • Peak 30-day rate on managed choke of 13,425 BOPD and 14,010 MMCFD 81% / 3% / 16% Oil / NGL / Gas • Currently managing production at Garten-1 to acquire val
Slide 16: 1Q 2020 Operating Cash Margins
1Q 2020 Operating Cash Margins International Assets Benefit From Premium Pricing & Product Mix Egypt North Sea United States $50 $47 / Boe $45 $40 $38 / Boe $35 $32 $30 Per Boe $25 $26 $20 Per Boe $21 / Boe $15 / Boe $15 $12 / Boe $12 $10 $9 / Boe Per Boe $5 $0 Operating Cash Margin(1) Avg Realizati
Slide 17: Appendix
Appendix Apache
Slide 18: Commodity Hedging Program
Commodity Hedging Program Open Commodity Derivative Positions • Substantial 2020 hedges centered around as of May 6, 2020 2Q/3Q to mitigate near-term risk of full crude oil storage • Significant Midland/Cushing basis hedges for remainder of 2020 • Protects against weak basis if storage fills in Cush
Slide 19: Credit Facility Profile
Credit Facility Profile Substantial Revolver Capacity and Long Runway $4 Billion Revolving Credit Facility • Apache’s $4 BN committed credit facility for general corporate Facility Type Senior Unsecured purposes, matures March 2024 Maturity March 2024 • Unsecured facility held by 18 banks, 17 of whi
Slide 20: Bond Maturity Profile
Bond Maturity Profile Manageable Near-Term Maturities $MM $1,600 Debt Summary Amount Outstanding ($MM)(1) $8,217 $1,400 Weighted Average Maturity (Years) 17 $1,200 Weighted Average Coupon (%) 4.877% $1,000 $800 $600 $400 $200 $0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2
Slide 21: Upstream Capital Investment
Upstream Capital Investment ($ in Millions) 1Q20 Permian…….………………………………….. $ 239 MidCon / Gulf Coast….………………….. 5 Gulf of Mexico………………………………. 17 United States…..…….…………… 261 Egypt (Apache's interest only)………. 99 North Sea……………………………………… 51 Other ………………………………………….... 31 Upstream Capital Investment To
Slide 22: Egypt: Production Detail
Egypt: Production Detail 4Q 2019 1Q 2020 Liquids Gas Liquids Gas (Bbls/d) (Mcf/d) Boe/d (Bbls/d) (Mcf/d) Boe/d Gross Production 187,166 677,819 300,136 185,408 655,410 294,643 Reported Production 79,907 275,811 125,875 74,095 254,579 116,525 % Gross 43% 41% 42% 40% 39% 40% Less: Tax Barrels 16,015 3
Slide 23: 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 24: Non – GAAP Reconciliations
Non – GAAP Reconciliations 24
Slide 25: 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 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: Regional Cash Flows
Non – GAAP Reconciliation Regional 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: 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