Apa Corporation · NASDAQ:APA
Apa — Investor Presentation (January 2022)
14 slides from Apa's investor presentation, January 2022
Slide 1: Investor Update January 2022
Investor Update January 2022
Slide 2: Notice to Investors
Notice to Investors Certain statements in this presentation 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 regardin
Slide 3: APA Investment Case
APA Investment Case • Robust FCF generation capacity and strong visibility into years of sustained production within legacy portfolio • Returning a minimum of 60% of free cash flow to shareholders through share repurchases and ordinary dividends o 31.8 million shares repurchased during 4Q21 at an av
Slide 4: APA Overview
APA Overview US Egypt North Sea Suriname
Slide 5: United States
United States • Currently running 3 rigs onshore U.S. U.S. Acreage o 2 rigs operating in the Permian Basin with continuous frac crew NEW OKLAHOMA dedicated to Southern Midland Basin completions MEXICO o Drilling predominantly longer laterals (2-3 miles) Permian o 1 rig conducting a year-long delinea
Slide 6: Egypt: PSC Modernization Enables Return to Growth
Egypt: PSC Modernization Enables Return to Growth Apache Egypt Acreage: ~5 million acres • Country’s largest oil producer and onshore acreage holder; identified an extensive, high-quality inventory • 2.5 MM-acre high-density 3-D seismic survey driving strong drilling results o 10 Exploration/apprais
Slide 7: Egypt: Positive Near-Term Impacts of PSC Modernization
Egypt: Positive Near-Term Impacts of PSC Modernization 2022 plan to double average drilling rig count & increase well completions by ~3x compared with 2021 Gross oil production forecasted to increase 13 – 15% in 2022 APA / Sinopec Free Cash Flow(1) of $850 – $900 MM anticipated in 2022 (assuming $72
Slide 8: North Sea
North Sea Apache North Sea Acreage • Production now trending up following two quarters of Apache substantial maintenance and compressor downtime Beryl • Storr-2 development well commenced production in late Dec. 2021 (APA 59%); providing incremental exposure to strong U.K. natural gas prices • Beryl
Slide 9: Suriname
Suriname • Block 58 (APA 50% WI): 4 exploration discoveries since Jan. 2020, appraisal program underway • Sapakara South-1 appraisal flow test indicates Sapakara connected resource of 325-375 MM barrels of oil South-1 in place in a single reservoir o Confirmed high quality, black oil reservoir o Res
Slide 10: Appendix
Appendix
Slide 11: 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 12: Debt Maturity Profile
Debt Maturity Profile Current(1) Apache Notes & Debentures(2) $6,344MM • Reduced notes & debentures(2) by $1.7 BN in 2021 Avg. Coupon 5.075% $1,500 o Annual interest expense lowered by 20% (~$79 MM) Avg. Maturity 13.8 Years 1,333 • $542 MM drawn on the revolving credit facility at YE 2021 $1,250 o U
Slide 13: Pro Forma Impact of Egypt PSC Modernization on 2021 & 2022
Pro Forma Impact of Egypt PSC Modernization on 2021 & 2022 2022 @ ~$72 2021 @ ~$72 Brent Brent Previous Modernized APA / Sinopec JV Terms Terms Modernized Terms Gross Volume (Mboe/d) 232 - 234 250 - 255 Reported Volume(1) (Mboe/d) 114 141 158 2022 CFFO Sensitivity of $170 million to a $10/bbl move i
Slide 14: Egypt Oil Production Returning to a Growth Trajectory
Egypt Oil Production Returning to a Growth Trajectory Oil Oil Production (Mbo/d) Production (Mbo/d) • Anticipate significant increase in long- 200 term oil production from 15-rig program 150 • Gross gas production expected to remain relatively stable at 550 – 600 mmcf/d 100 • Net Contractor entitlem