Slide 1: Fourth-Quarter & Full-Year 2022 Financial & Operational Supplement
Fourth-Quarter & Full-Year 2022 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 2022 Key Metrics
4Q and Full-Year 2022 Key Metrics 4Q 2022 FY 2022 Reported Production 414 Mboe/d 396 Mboe/d Adjusted Production(1) 334 Mboe/d 318 Mboe/d Cost Incurred in Oil and Gas Property $472 Million $2,569 Million Upstream Capital Investment(2) $486 Million $1,767 Million Net Cash Provided by Operating Activit
Slide 4: APA Corporation Strategy
APA Corporation Strategy Foundation For Disciplined Leveraging Long-Term Financial Approach Diversified Success Portfolio • Prioritize long-term, full-cycle returns • Return a minimum of 60% of Free • Diversify risk through a balanced through capital allocation Cash Flow to shareholders through a co
Slide 5: 2022 Highlights
2022 Highlights • Generated ~$2.5 billion of Free Cash Flow (FCF)(1); 2nd highest in APA’s 68-year history • Returned ~$1.6 billion (66% of FCF) to APA shareholders through share buybacks & dividends • Reduced outstanding shares by 10% and doubled annual dividend • Reduced Net Debt(1,2) by $1.5 bill
Slide 6: 2022 Debt & Share Repurchase Activity
2022 Debt & Share Repurchase Activity Bond Debt Activity ($ millions) Share Repurchase Activity (millions) Repurchased in 2022 (~$1.4BN) Shares Repurchased Average Price Shares (MM) Price ($) 15 $50 $44.40 3,400 $41.59 12 $36.07 $40 $33.85 9 $30 378 6 12.1 $20 449 9.8 270 7.2 7.0 3 $10 213 579 123 5
Slide 7: 2023 Plan Overview
2023 Plan Overview Planned Drilling Activity • Onshore U.S.: Average 5 rigs (2 SMB / 3 Delaware) 2023 Plan • Egypt: Average ~17 rigs • Upstream capital investment(1) of $2.0 - $2.1 billion • North Sea: Maintain 1 platform crew / Release Ocean Patriot semi in 2H23 o 57% U.S. / 36% Int’l / 7% Explorat
Slide 8: Guidance
Guidance 1Q 2023 FY 2023 Commentary Production (Mboe/d) United States………………………………………………………………………………….. 199 (35% oil) 217 (36% oil) Well completion timing & ethane rejection result in 1Q23 production decline Egypt (Reported)……………………………………………………………………………. 146 (60% oil) 143 (64% oil) North Sea………………………
Slide 9: 4Q Asset Update
4Q Asset Update 9
Slide 10: 4Q 2022 Global Portfolio
4Q 2022 Global Portfolio GLOBAL 414,435 BOE/D 48% / 16% / 36% 39 Gross, 38 Net 26 Reported Production Oil / NGL / Gas Drilled & Completed Wells(1) Avg Rigs UNITED STATES INTERNATIONAL 217,830 BOE/D 196,605 BOE/D Reported Production Reported Production 34% / 30% / 36% 64% / 1% / 35% Oil / NGL / Gas O
Slide 11: 4Q 2022 Operating Cash Margins (Pre-Tax)
4Q 2022 Operating Cash Margins (Pre-Tax) Egypt North Sea United States $100 $90 $91 / Boe $80 $70 $68 $60 Per Boe $59 / Boe $50 - $3 vs. 3Q $40 $48 $44 / Boe $31 $30 Per Boe Per Boe - $9 $23 / Boe - $10 $20 vs. 3Q $13 / Boe vs. 3Q $11 / Boe $10 $0 Operating Cash Margin(1) Avg Realization Cash Operat
Slide 12: U.S. Update
U.S. Update ASSET HIGHLIGHTS 4Q 2022 ASSET STATS • Exceeded U.S. production guidance with strong well performance across legacy 217,830 BOE/D Reported Production Midland/Delaware areas & recently acquired properties in Texas Delaware 34% / 30% / 36% Oil / NGL / Gas • Southern Midland Basin: Averaged
Slide 13: 2023 U.S. Production Growth Trajectory
2023 U.S. Production Growth Trajectory U.S. Production & Wells Online Cadence Production (Mboe/d) Wells 250 25 • Over 10% oil growth expected from 4Q22 to 4Q23 218 200 199 20 150 15 • During 1Q23, anticipate 9% decline in U.S. production due to: o Only 4 wells brought online in 4Q22 (3 Austin Chalk
Slide 14: Egypt Update
Egypt Update ASSET HIGHLIGHTS 4Q 2022 ASSET STATS 151,034 BOE/D • Rig efficiency (wells per rig/yr) improved 18% in 4Q22 vs 1H22 average Reported Production 59% / 0% / 41% Oil / NGL / Gas • Drilling success rate of 91% (31 of 34 wells) in 4Q22 34 Gross, 33 Net Drilled & Completed Wells(1) o Three ex
Slide 15: North Sea Update
North Sea Update ASSET HIGHLIGHTS 4Q 2022 ASSET STATS 45,571 BOE/D • Significant uptick in 4Q22 production post 3Q22 downtime & turnarounds Reported Production 82% / 3% / 15% Oil / NGL / Gas • Improved facilities uptime for the quarter at both Beryl and Forties, which 1 Gross, 1 Net Drilled & Comple
Slide 16: Suriname Update
Suriname Update Block 58 (APA 50% WI, TTE Operated) • Announced successful flow test at Sapakara South-2 (SPS-2) o Encountered 36 meters (118 ft) of net oil pay o Analysis indicates incremental resource to Sapakara South-1 (SPS-1) of > 200 MMBbls of oil in place o Total estimated resource at Sapakar
Slide 17: Appendix
Appendix 17
Slide 18: Cash Return Summary
Cash Return Summary 2021 2022 Total Shares Repurchased (MM) 31.2 36.2 67.4 Average Stock Repurchase Price $27.14 $39.34 $33.69 Share Repurchases ($MM) $847 $1,423 $2,270 Dividends ($MM) $52 $207 $259 Total Cash Return ($MM) $899 $1,630 $2,529 Free Cash Flow ($MM) $1,823 $2,458 $4,281 % Free Cash Flo
Slide 19: Upstream Capital Investment
Upstream Capital Investment ($ in Millions) 1Q22 2Q22 3Q22 4Q22 FY22 United States…….………………………………………….......... $ 175 $ 192 $ 235 $ 241 $ 843 Egypt (excluding noncontrolling interest)…………….... 98 109 118 145 470 North Sea………………………………………………………………. 36 41 66 65 208 Suriname………………………………………….............
Slide 20: Egypt: Production Detail
Egypt: Production Detail 3Q 2022 4Q 2022 Liquids Gas Liquids Gas (Bbls/d) (Mcf/d) Boe/d (Bbls/d) (Mcf/d) Boe/d Gross Production 133,607 510,260 218,650 139,587 559,401 232,821 Reported Production 81,095 318,945 134,253 88,716 373,911 151,034 % Gross 61% 63% 61% 64% 67% 65% Less: Tax Barrels 24,718 9
Slide 21: 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. Excludes capital investment for property acquisitions, capitalized interest, non-cash asset
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations 22
Slide 23: 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 24: 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 25: 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 26: 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 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 operations before changes in operating assets and liabilities is a non-GAAP financial m
Slide 28: 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 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 APA's expenditures related to our upstream capital activity. We define capital
Slide 30: 2000 Post Oak Blvd, Suite
2000 Post Oak Blvd, Suite 100 Houston, TX 77056-4400 Corporation apacorp.com