Slide 1: Second-Quarter 2023 Financial & Operational Supplement
Second- Quarter 2023 Financial & Operational Supplement AUGUST 2, 2023
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: 2Q 2023 Key Metrics
2Q 2023 Key Metrics 2Q 2023 Reported Production 399 Mboe/d Adjusted Production(1) 325 Mboe/d Cost Incurred in Oil and Gas Property $595 Million Upstream Capital Investment(2) $516 Million Net Cash Provided by Operating Activities $1,000 Million Adjusted EBITDAX(2) $1,217 Million Free Cash Flow(2) $9
Slide 4: APA Corporation Strategy
APA Corporation Strategy Foundation For Disciplined Financial Leveraging Long-Term Success Approach Diversified Portfolio ⎼ Prioritize long-term, full-cycle ⎼ Return a minimum of 60% of ⎼ Diversify risk through a balanced returns through capital Free Cash Flow to shareholders commodity profile and a
Slide 5: 2Q Asset Update
2Q Asset Update APA CORPORATION 5
Slide 6: Recent Highlights
Recent Highlights Returned 131% ($123 Million) 2Q23 Upstream Capital of Free Cash Flow to Investment(1) of $516 Million Shareholders in 2Q23 Reducing full-year Capital Repurchased $46 Million of Stock Investment to $1.9 Billion at average price of $33.72 per share Progressing towards Oil-Hub Executi
Slide 7: 2Q 2023 Global Portfolio
2Q 2023 Global Portfolio Global 398,930 BOE/D 50% / 16% / 34% 54 Gross, 53 Net 24 Reported Production Oil / NGL / Gas Drilled & Completed Wells(1) Avg Rigs United States International 212,786 BOE/D 186,144 BOE/D Reported Production Reported Production 36% / 29% / 35% 66% / 0% / 34% Oil / NGL / Gas O
Slide 8: U.S. Update
U.S. Update Asset Highlights 2Q 2023 Asset Stats 212,786 BOE/D ⎻ Connected 21 new wells, over two-thirds of which were placed on-line Reported Production during June. Timing expected to drive significant production increase again in 3Q23 36% / 29% / 35% Oil / NGL / Gas ⎻ Southern Midland Basin: Aver
Slide 9: Egypt Update
Egypt Update Asset Highlights 2Q 2023 Asset Stats ⎻ 2Q23 gross oil production and well completions in-line with 144,026 BOE/D expectations Reported Production 61% / 0% / 39% ⎻ Exploration drilling success rate of 50% year to date (14 of 28 wells), Oil / NGL / Gas in line with our historical performa
Slide 10: North Sea Update
North Sea Update Asset Highlights 2Q 2023 Asset Stats 42,118 BOE/D ⎻ Prolonged operational downtime impacted 2Q23 results by Reported Production approximately 2 Mboe/d 83% / 2% / 15% Oil / NGL / Gas ⎻ Production commencement from Storr North (59% WI) expected to 1 Gross, 1 Net drive increase in 3Q v
Slide 11: Suriname Update
Suriname Update Block 58 (APA 50% WI, TTE Operated) ⎻ Ongoing oil resource assessment at Krabdagu ⎻ Successfully tested three oil reservoirs, confirming high quality and deliverability ⎻ Krabdagu-3 confirms and extends the oil resource 14 kilometers from the discovery well ⎻ Technical analysis under
Slide 12: Guidance
Guidance 3Q 2023 FY 2023(1) FY 2023 Commentary Production (Mboe/d) United States……………………………………………………………. 223 (36% oil) 217 (36% oil) Excludes impact of future gas curtailments in event of Waha price weakness Egypt (Reported)………………………………………………………. 140 (64% oil) 143 (64% oil) North Sea…………………………………………
Slide 13: Appendix
APA Corporation Appendix APA CORPORATION | 13
Slide 14: Cash Return Summary
Cash Return Summary 2023 YTD 1Q 2023 2Q 2023 2021 2022 Total 6/30/2023 Shares Repurchased (MM) 3.7 1.3 31.2 36.2 5.0 72.4 Average Stock Repurchased Price $38.93 $33.72 $27.14 $39.34 $37.53 $33.96 Share Repurchases ($MM) $142 $46 $847 $1,423 $188 $2,458 Dividends ($MM) $78 $77 $52 $207 $155 $414 Tota
Slide 15: Upstream Capital Investment
Upstream Capital Investment 1Q23 2Q23 Total United States $291 $308 $599 Egypt (excluding noncontrolling interest) $123 $133 $256 North Sea $54 $56 $110 Suriname $27 $19 $46 Upstream Capital Investment Total $495 $516 $1,011 For a reconciliation of Cost Incurred to Upstream Capital Investment please
Slide 16: Egypt Production Detail
Egypt Production Detail 1Q 2023 2Q 2023 Oil Gas Oil Gas (Bbls/d) (Mcf/d) Boe/d (Bbls/d) (Mcf/d) Boe/d Gross Production 140,764 545,049 231,606 140,652 517,291 226,867 Reported Production 87,794 356,350 147,186 87,790 337,413 144,026 % Gross 62% 65% 64% 62% 65% 63% Less: Tax Barrels 23,965 98,422 40,
Slide 17: 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 Glossary of interest, non-cash asset retirement additi
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations APA CORPORATION 18
Slide 19: 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 20: 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 21: 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 22: 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 23: 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 24: 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 25: apacorp.com
APA Corporation apacorp.com