Slide 1: First-Quarter 2022 Financial & Operational Supplement
First-Quarter 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: 1Q 2022 Key Metrics
1Q 2022 Key Metrics 1Q 2022 Reported Production 404 Mboe/d Adjusted Production(1) 322 Mboe/d Cost Incurred in Oil and Gas Property $439 Million Upstream Capital Investment(2) $361 Million Net Cash Provided by Operating Activities $891 Million Adjusted EBITDAX(2) $1,707 Million Free Cash Flow(2) $675
Slide 4: Recent Highlights
Recent Highlights Generated $675 Million Returned $304 Million to Shareholders Through of Free Cash Flow(1) in 1Q’22 Dividends & Share Repurchases in 1Q’22 Returned 101% ($1.2 Billion) of Free Cash Flow 1Q’22 Upstream Capital Investment(1) Since Shareholder Return of $361 Million Framework Announcem
Slide 5: 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 6: ESG Vision
ESG Vision Be at the forefront of industry’s efforts to measure, disclose AIR and mitigate emissions E WATER Preserve freshwater resources and leverage technology to maximize water reuse S COMMUNITIES +PEOPLE Provide fulfilling and rewarding careers for our employees and create shared value in the c
Slide 7: Compensation-linked ESG Goals
Compensation-linked ESG Goals Short-term Goals Long-term Goal • Egypt: 40% reduction of upstream flaring in Established long-term incentive Egypt by year-end compensation-linked emissions • People: Develop and implement a future of reduction goal: work strategy inclusive of working model, workplace
Slide 8: 1Q Asset Update
1Q Asset Update 8
Slide 9: 1Q 2022 Global Portfolio
1Q 2022 Global Portfolio GLOBAL 404,042 BOE/D 47% / 16% / 37% 26 Gross, 26 Net 16 Reported Production Oil / NGL / Gas Drilled & Completed Wells(1) Avg Rigs UNITED STATES INTERNATIONAL 210,953 BOE/D 193,089 BOE/D Reported Production Reported Production 33% / 29% / 38% 62% / 1% / 37% Oil / NGL / Gas O
Slide 10: 1Q 2022 Operating Cash Margins
1Q 2022 Operating Cash Margins Egypt North Sea United States(2) $120 $114 / Boe $100 $80 $86 Per Boe $60 $66 / Boe + $32 vs. 4Q $56 $52 / Boe $38 $40 Per Boe $28 / Boe Per Boe + $14 vs. 4Q + $4 $20 Leverage to Brent / NBP pricing & $14 / Boe vs. 4Q $10 / Boe relatively fixed cost operations drive ~6
Slide 11: U.S. Update
U.S. Update ASSET HIGHLIGHTS 1Q 2022 ASSET STATS • Southern Midland Basin: Averaged 2 rigs & placed 4 gross wells on 210,953 BOE/D Reported Production production in 1Q’22 33% / 29% / 38% o Anticipate placing 6 wells on production in late 2Q’22 Oil / NGL / Gas 7 Gross, 7 Net Drilled & Completed Wells
Slide 12: Egypt Update
Egypt Update ASSET HIGHLIGHTS 1Q 2022 ASSET STATS 149,938 BOE/D • Adjusted production uplift of 13% following PSC modernization Reported Production • Gross production flat with 4Q’21 57% / 0% / 43% Oil / NGL / Gas o Deferred a number of high-rate, up-hole recompletions into 2Q’22 as current zones co
Slide 13: North Sea Update
North Sea Update ASSET HIGHLIGHTS 1Q 2022 ASSET STATS 43,151 BOE/D Reported Production • Benefited from a ~$84 million uplift in revenue as a result of exposure to 82% / 3% / 15% NBP pricing in 1Q’22 versus 2018-2020 historical realized pricing average Oil / NGL / Gas 0 Gross, 0 Net Drilled & Comple
Slide 14: Suriname Update
Suriname Update Block 58 (APA 50% WI) o Five exploration discoveries since Jan. 2020 • Recent discovery at Krabdagu-1 exploration well o Flow testing complete; in pressure build-up stage of Sapakara South-1 both tested zones • Maersk Valiant to spud Dikkop exploration Flowtest & prospect following o
Slide 15: Guidance
Guidance 2Q 2022 FY 2022 Commentary Production (Mboe/d) United States……………………………………………………………………………………………………. 206 210 FY unchanged FY reduced for higher oil price PSC effects, slightly lower gross oil Egypt (Reported)……………………………………………………………………………………………… 154 154 outlook from timing delays North Sea………
Slide 16: Appendix
Appendix 16
Slide 17: Cash Return Summary
Cash Return Summary Since Inception 4Q 2021 1Q 2022 (Oct’21) Shares Repurchased (MM) 31.2 7.2 38.4 Average Stock Price $27.13 $36.07 $28.83 Share Repurchases ($MM) $847 $261 $1,108 Dividends ($MM) $24 $43 $67 Total Cash Return to Shareholders $871 $304 $1,175 Free Cash Flow ($MM) $485 $675 $1,160 Sh
Slide 18: APA Debt Maturity Profile
APA Debt Maturity Profile As of March 31, 2022 Significant Balance Sheet De-Leveraging Actions YE 2021 March 2022 • $213 million (April ‘22 notes) called at par in January Notes & Debentures(1) $6,344MM $5,032MM • Completed $1.1 billion tender for near-term maturities in March Avg. Coupon 5.075% 5.2
Slide 19: New APA Credit Facilities
New APA Credit Facilities US$1.8 Billion £1.5 Billion • Established a US$1.8 billion committed credit facility for general Revolving Credit Letter of Credit corporate purposes maturing in April 2027 o Unsecured facility held by 17 banks, 16 of which are ‘A’ rated or higher Facility Facility Facility
Slide 20: Open Commodity Derivative Positions
Open Commodity Derivative Positions (As of May 3, 2022) Weighted Avg Price Production Period Trade Type Index Units Daily Volume $ / Unit Natural Gas Basis Hedges May 2022 – December 2022 Basis Swap IF Waha / IF HSC MMBtu 206,367 ($0.55) January 2023 – December 2023 Basis Swap IF Waha / IF HSC MMBtu
Slide 21: Upstream Capital Investment
Upstream Capital Investment ($ in Millions) 1Q22 United States…….…………………………………………...................... $ 175 Egypt (Apache's interest only)…………………………………………… 98 North Sea………………………………………………………………………….. 36 Suriname………………………………………….................................. 52 Upstream Capital Investment Total…
Slide 22: Egypt: Production Detail
Egypt: Production Detail 4Q 2021 1Q 2022 Liquids Gas Liquids Gas (Bbls/d) (Mcf/d) Boe/d (Bbls/d) (Mcf/d) Boe/d Gross Production 134,801 600,919 234,954 135,132 597,812 234,767 Reported Production 68,753 277,142 114,943 85,509 386,577 149,938 % Gross 51% 46% 49% 63% 65% 64% Less: Tax Barrels 15,833 5
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. Excludes capitalized interest, non-cash asset retirement additions and revisions, Egypt nonc
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: 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 28: 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 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 APA's expenditures related to our upstream capital activity. We define capital
Slide 31: 2000 Post Oak Blvd, Houston
2000 Post Oak Blvd, Suite 100 Houston, TX 77056-4400 Corporation apacorp.com