Slide 1: First-Quarter 2021 Financial & Operational Supplement
First-Quarter 2021 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 2021 Key Metrics
1Q 2021 Key Metrics 1Q 2021 Reported Production 382 Mboe/d Adjusted Production(1) 326 Mboe/d Cost Incurred in Oil and Gas Property $287 Million Upstream Capital Investment(2) $243 Million Net Cash Provided by Operating Activities $671 Million Adjusted EBITDAX(2) $1,137 Million Free Cash Flow(2) $502
Slide 4: APA's Strategy
APA’s Strategy Foundation For Leveraging Disciplined Long-Term Diversified Financial Success Portfolio Approach • Prioritizing returns over production • Balanced commodity profile and • Retaining cash to reduce debt growth geographic pricing points diversify risk • Aggressively managing cost structu
Slide 5: Highlights
Highlights Generated $502 Million of Free Cash Flow(1) in 1Q’21 1Q’21 Adjusted Production(2) of 326 MBOE/D Exceeded Guidance Delivered 1Q’21 Upstream Capital Investment(1) of Adjusted Oil Production(2) of $243 Million 148 MBO/D Announced Keskesi Discovery in Hadid Oil Discovery Campanian / Santonian
Slide 6: Block 58 Offshore Suriname Update
Block 58 Offshore Suriname Update • Announced fourth discovery at Keskesi East-1 in January • TOTAL operating 2 rigs, each capable of flow testing and appraisal / exploration drilling o Currently drilling in the vicinity of Sapakara discovery • Bonboni next exploration prospect to be drilled 6
Slide 7: 2Q21 Guidance
2Q21 Guidance New Production (Mboe/d) United States…………………………………………………………………………………. 230 International (Adjusted)………………………………………………………………… 110 Total Adjusted Production……………………………………………………… 340 United States Oil (Mbo/d)…………....................................................... 78 Upstream Capital In
Slide 8: 2021 Guidance
2021 Guidance Updated Production (Mboe/d) United States…………………………………………………………………………………………… 220 – 225 International…………………………………………………………………………………………… 170 – 175 Reported Production……………………………………………………………………… 390 – 400 Less: Egypt Tax Barrels…………………………………………………………… 17 Less: Egypt Noncontrolling Intere
Slide 9: 1Q Asset Update
1Q Asset Update 9
Slide 10: 1Q 2021 Global Portfolio
1Q 2021 Global Portfolio GLOBAL 382,401 BOE/D 48% / 16% / 36% 29 Gross, 27 Net 9 Reported Production Oil / NGL / Gas Drilled & Completed Wells(1) Avg Rigs UNITED STATES INTERNATIONAL 210,091 BOE/D 172,310 BOE/D Reported Production Reported Production 32% / 28% / 40% 67% / 1% / 32% Oil / NGL / Gas Oi
Slide 11: 1Q 2021 Operating Cash Margins
1Q 2021 Operating Cash Margins Egypt North Sea United States(2) $60 $58 / Boe $50 $40 $44 / Boe $40 Per Boe $36 / Boe $30 $34 + $11 Per Boe vs. 4Q $26 + $12 Per Boe $20 vs. 4Q $18 / Boe + $14 vs. 4Q $10 / Boe $10 / Boe $10 $0 Operating Cash Margin(1) Avg Realization Cash Operating Cost (1) Operating
Slide 12: 1Q U.S. Update
1Q U.S. Update ASSET HIGHLIGHTS ASSET STATS • Exceeded February U.S. oil production guidance by ~6% 210,091 BOE/D Reported Production 32% / 28% / 40% • Weather-related downtime impacted production by ~14,000 BOE/D (35% oil) Oil / NGL / Gas 21 Gross, 19 Net • ~5,000 BOE/D (60% oil) of lower-margin pr
Slide 13: 1Q Egypt Update
1Q Egypt Update ASSET HIGHLIGHTS ASSET STATS • Completed turnaround at Tarek gas plant 119,111 BOE/D o Zero safety incidents and zero COVID infections across 38,000 manhours Reported Production 60% / 1% / 39% • ~2,500 MBOE/D price impact on 1Q’21 adjusted production relative to guidance (provided in
Slide 14: 1Q North Sea Update
1Q North Sea Update ASSET HIGHLIGHTS ASSET STATS • Production during 1Q’21 impacted by extended compressor 53,199 BOE/D Reported Production downtime at Forties Field 82% / 3% / 15% Oil / NGL / Gas 1 Gross, 1 Net • Extended platform turnarounds and 3rd party operated Forties Drilled & Completed Wells
Slide 15: Appendix
OLS Appendix
Slide 16: 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 Eliminating routine U.S. onshore flaring an
Slide 17: Open Commodity Derivative Positions (As of May 4, 2021)
Open Commodity Derivative Positions (As of May 4, 2021) Weighted Avg Price Production Period Trade Type Index Units Daily Volume $ / Unit WTI Hedges April – June 2021 Fixed Swap NYMEX WTI BBL 62,000 $61.20 July – September 2021 Fixed Swap NYMEX WTI BBL 22,000 $60.15 October – December 2021 Fixed Swa
Slide 18: Upstream Capital Investment
Upstream Capital Investment ($ in Millions) 1Q21 $ United States…….………………………………………….......... 102 Egypt (Apache's interest only)……………………….......... 64 North Sea………………………………………………………………. 40 Suriname…………………………………………....................... 37 Upstream Capital Investment Total…………… $ 243 For a reconcili
Slide 19: Egypt: Production Detail
Egypt: Production Detail 4Q 2020 1Q 2021 Liquids Gas Liquids Gas (Bbls/d) (Mcf/d) Boe/d (Bbls/d) (Mcf/d) Boe/d Gross Production 142,366 617,465 245,277 136,217 603,269 236,762 Reported Production 69,932 275,662 115,876 72,753 278,149 119,111 % Gross 49% 45% 47% 53% 46% 50% Less: Tax Barrels 7,508 18
Slide 20: 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 E
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations 21
Slide 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 the Company's expenditures related to our upstream capital activity. We define