Slide 1: Third-Quarter 2019 Financial & Operational Supplement
Third-Quarter 2019 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: 3Q 2019 Key Metrics
3Q 2019 Key Metrics 3Q 2019 Reported Production 451 Mboe/d Adjusted Production(1) 391 Mboe/d Cost Incurred in Oil and Gas Property $646 Million Upstream Capital Investment(2) $590 Million Net Cash Provided by Operating Activities $635 Million Adjusted EBITDAX(2) $905 Million Earnings Per Share ($0.4
Slide 4: Highlights
Highlights On track to meet 2019 upstream capital Adjusted production of investment budget of ~$2.4 billion 391 MBOE/D At current strip, anticipate 2020 budget Exceeded guidance of 373 - 383 Mboe/d 10 – 20% below 2019 upstream capital investment 2nd Garten well in North Sea encountered Drilling 1st
Slide 5: Permian Oil Production
Permian Oil Production 2019 Production Guidance Update (Mbo/d) • 4Q’19E approximately 100 Mbo/d (lower end of prior guidance range) • Combination of unplanned downtime, delay in completions and well maintenance timing 99 98 100 95 90 90 92 85 85 4Q’17 4Q'17 1Q’18 1Q'18 2Q’18 2Q'18 3Q’18 3Q'18 4Q’18
Slide 6: Alpine High Production
Alpine High Production 2019 Production Guidance Update (Mboe/d) • Reduced 4Q guidance by 5% due to reduced activity and lower than expected production from our recent Blackfoot pad 120 • 4Q guidance assumes no deferrals and 100% ethane recovery 100 94 - 96 80 76 70 58 60 49 40 20 Deferred Production
Slide 7: International Production
International Production 2019 Production Guidance Update (Mboe/d) Quarterly Annual • No change to prior guidance for 4Q’19 & FY 2019 145 132 - 135 134 133 - 134 132 125 North Sea Seasonal TAR Impact 1Q'19 2Q'19 3Q'19 4Q'19E 2018 2019E Note: Includes North Sea production and Egypt adjusted production
Slide 8: 3Q Results
3Q Results Apache
Slide 9: 3Q 2019 Global Portfolio
3Q 2019 Global Portfolio Balanced Portfolio Aligns Returns Focus & Strategic Objectives GLOBAL 450,644 BOE/D 51% / 33% / 16% 64 Gross, 63 Net 20 Reported Production Oil / Gas / NGL Drilled & Completed Wells(1) Avg Rigs UNITED STATES INTERNATIONAL 265,910 BOE/D 184,734 BOE/D Reported Production Repor
Slide 10: 3Q Permian Summary
3Q Permian Summary Midland Basin REGION STATS 254,432 BOE/D • Averaged 3 rigs, 2 frac crews and placed 20 wells on production Reported Production • Strong results from Lower Cline test well at Azalea (Driver Schrock pad) • Average 30-day IP: 1,269 Mboe/d (72% oil) 37% / 35% / 28% • Core inventory to
Slide 11: Well Highlights: Midland Basin
Well Highlights: Midland Basin MIDLAND BASIN Midland Glasscock 1 2 Upton Reagan LATERAL AVG 30-DAY AVG 30-DAY IP PAD FORMATION AREA COUNTY OIL (FT) IP/WELL BOEPD/1,000 FT Wolfcamp, 1 Driver Schrock (11 Wells) Azalea Midland 7,252 1,037 BOE/D 143 77% Spraberry, Cline 2 Aldwell (5 Wells) Wolfcamp Hart
Slide 12: Well Highlights: Other Delaware Basin
Well Highlights: Other Delaware Basin OTHER DELAWARE BASIN 4 1, 2, 3 LATERAL AVG 30-DAY AVG 30-DAY IP PAD / WELL FORMATION AREA COUNTY Oil % (FT) IP/WELL BOEPD/1,000 FT 1 Jackson (2 Wells) Wolfcamp Dixieland Reeves 4,615 1,685 BOE/D 367 44% 2 Lee (2 Wells) Wolfcamp Dixieland Reeves 4,568 1,540 BOE/D
Slide 13: 3Q Egypt Summary
3Q Egypt Summary REGION HIGHLIGHTS REGION STATS • Second well brought online in Cobra field (East Bahariya concession) 130,934 BOE/D • Cobra-2 well flowing at 3,000 BOPD from the lower Bahariya formation Reported Production • Follow-up to exploration success (Bolt-150X) 64% / 35% / 1% Oil / Gas / NG
Slide 14: 3Q North Sea Summary
3Q North Sea Summary REGION HIGHLIGHTS REGION STATS 53,800 BOE/D • Impressive results from BK-7 well at Buckland Reported Production • Gross rates of over 11,500 BOPD (APA 59% WI) 82% / 15% / 3% • Additional up-hole potential Oil / Gas / NGL 2 Gross, 2 Net Drilled & Completed Wells(1) • 2nd Garten w
Slide 15: Offshore Suriname: High-Impact Oil Exploration
Offshore Suriname: High-Impact Oil Exploration Ranger • Block 58 comprises 1.4 MM acres in an active Stabroek Area hydrocarbon system Exxon Discoveries • Acquired in June 2015, 100% Apache owned Pacora • 3-D seismic surveys & processing completed Payara Liza • Multiple plays with more than 50 signif
Slide 16: 3Q 2019 Operating Cash Margins
3Q 2019 Operating Cash Margins Brent Oil Price Exposure and Premium NGL / Gas Prices Drives Strong International Margins Egypt North Sea Permian $60 $50 $50 / Boe $45 / Boe $40 $33 $30 $35 Per Boe $26 / Boe Per Boe $20 $17 / Boe $16 $10 / Boe Per Boe $10 / Boe $10 $0 Operating Cash Margin(1) Avg Rea
Slide 17: 4Q 2019 Guidance
4Q 2019 Guidance (1) Excludes dry hole expense and unproved leasehold impairments. 17
Slide 18: 2019 Guidance
2019 Guidance (1) Refer to glossary of referenced terms for definition of Upstream Capital Investment. (2) Represents combination of 100% Altus Midstream Company operating expense and Apache upstream GPT costs. (3) Excludes dry hole expense and unproved leasehold impairments. 18 (4) Excludes loss on
Slide 19: Appendix
Appendix Apache
Slide 20: Framework for Long-Term Value Creation
Framework for Long-Term Value Creation BALANCED PORTFOLIO APPROACH Exploration / Development Conventional / Unconventional Oil / Liquids Rich Gas / Lean Gas OPERATIONAL FLEXIBILITY Actively Manage Capital Allocation to Reflect Commodity Price Environment FREE CASH FLOW GENERATION Capital Discipline,
Slide 21: Glossary of Referenced Terms
Glossary of Referenced Terms • Upstream Capital Investment: Includes exploration, development, gathering, processing, and transmission capital, capitalized overhead, and settled asset retirement obligations, and excludes capitalized interest, non-cash asset retirement additions and revisions, and Eg
Slide 22: Upstream Capital Investment
Upstream Capital Investment ($ in Millions) 1Q19 2Q19 3Q19 Permian…….………………………………….. $ 415 $ 426 $ 388 MidCon / Gulf Coast….………………….. 18 12 1 Gulf of Mexico………………………………. 12 16 31 United States…..…….…………… 445 454 420 Egypt (Apache's interest only)………. 88 71 65 North Sea……………………………………… 62 62 83 Other
Slide 23: Open Commodity Derivative Positions
Open Commodity Derivative Positions As of October 30, 2019 Oil Basis Hedges Weighted BBL Average Price Production Period Index (per day) Differential October- December 2019 Midland/WTI 15,000 (3.72) Natural Gas Basis Hedges Weighted MMBtu Average Price Production Period Index (per day) Differential
Slide 24: Egypt: Production Detail
Egypt: Production Detail 2Q 2019 3Q 2019 Liquids Gas Liquids Gas (Bbls/d) (Mcf/d) Boe/d (Bbls/d) (Mcf/d) Boe/d Gross Production 200,374 729,378 321,937 189,118 673,065 301,296 Reported Production 84,659 277,552 130,917 85,005 275,569 130,934 % Gross 42% 38% 41% 45% 41% 43% Less: Tax Barrels 17,470 3
Slide 25: Non-GAAP Reconciliations
Non – GAAP Reconciliations 25
Slide 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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