Slide 1: Fourth-Quarter 2024 Financial and Operational Supplement
Fourth-Quarter 2024 Financial and Operational Supplement February 26, 2025
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: Permian and Egypt Durability with Visible Growth
Permian and Egypt Durability with Visible Growth Building a Sustainable Base, Anchored by Permian and Egypt ⎻ Permian Basin now 75% of total Adjusted Production ⎻ Transformed Permian into large-scale, focused unconventional position ⎻ Egypt oil (2021) & gas (2024) terms renegotiated, improving econo
Slide 4: Differentiated Free Cash Flow Growth Story
Differentiated Free Cash Flow Growth Story Anchored by 8 Rigs in the Permian and 12 Rigs in Egypt with Growth from GranMorgu Phase 1 in 2028+ (1)(2)(3) Free Cash Flow / Share – Includes cost reduction goal of $350MM by YE27, sustained thereafter – Permian volumes flat, Egypt volumes on slight declin
Slide 5: Path to Becoming a Cost Leader
Path to Becoming a Cost Leader Reducing Controllable Spend (LOE, Overhead and Development Capital Ex-Suriname) Controllable Spend Profile(1) Portfolio Changes Cost Initiatives ~$4.4 Bn ~$380 MM ~$4.0 Bn ~$60 MM ~$3.7 Bn Realized Savings 2024 2025E 2026E 2027E Actual $350 Million Target Run-Rate Savi
Slide 6: Operations Anchored by the Permian and Egypt
Operations Anchored by the Permian and Egypt (5) Competitive Permian Cornerstone Egypt: Free Cash Flow Durability with Gas Upside Permian Net Acres (‘000)(1)(2) Permian Production (Mboe/d) (1)(3) ⎻ Strong and stable free cash flow generation 478 ⎻ Recent changes to the PSC improve economic durabilit
Slide 7: Callon Update: Improving Delaware Basin Economics
Callon Update: Improving Delaware Basin Economics Well Costs per Lateral Foot (DC&F)(1) Improved Capital Efficiencies and Development Planning Driving Competitive Returns ⎻ Lateral lengths increased ~15% in 2024 compared to 2023 ⎻ Total well costs down >5% YoY despite larger completions and longer l
Slide 8: Exploration Portfolio Led by Suriname Block
Exploration Portfolio Led by Suriname Block 58 Suriname Suriname Expected Free Cash Flow Profile(1) ⎻ Reached FID on 220,000 B/d oil project with partner TotalEnergies $60 Brent Scenario $MM ⎻ APA’s carry agreement significantly reduces capital exposure $1,000 $80 Brent Scenario ⎻ First oil expected
Slide 9: Suriname GranMorgu: World Class Opportunity
Suriname GranMorgu: World Class Opportunity APA’s Interest in GranMorgu Equates to Top Tier Cash Field Margin(2)(3)(4) 400 Midland Basin Locations at ~30% of the Cost ($ / BOE) GranMorgu Midland Basin GranMorgu (APA Net) (Average Well)(1) $60 EUR (Oil) 180 MMBO + 180 MMBO $45 Shale Pure-Play Peers T
Slide 10: Committed to Strong Balance Sheet & Shareholder Returns
Committed to Strong Balance Sheet & Shareholder Returns (1) (3) Right Size Balance Sheet Return Free Cash Flow to Shareholders Dividends (2) $8.5BN Net Debt/Adjusted EBITDAX Capital Returns Framework 24% 3.9x ⎻ Return > 60% of FCF to shareholders $5.3BN through dividend and share repurchases $3.8BN
Slide 11: Fourth Quarter in Review
Fourth Quarter in Review Fourth Quarter Highlights 4Q 2024 Global Portfolio Financial Global ⎻ Generated $420 million of free cash flow, highest quarter of the year 54% / 17% / 29% 488,308 BOE/D ⎻ S&P upgrade to BBB-, investment grade at all three agencies Reported Production Oil / NGL / Gas Permian
Slide 12: 2025 Plan and Guidance
2025 Plan and Guidance AP A CO RPO R AT IO N 12
Slide 13: 2025 Plan Overview
2025 Plan Overview Focused on Cost Management and Capital Efficiency in 2025+ Plan Highlights Planned Activity & Cash Flow Sensitivity ⎻ Total development capital expected to be 17% lower YoY, total adjusted production to grow mid-single-digits, oil production slightly declining ⎻ Permian: 8 rigs sp
Slide 14: 1Q 2025 & FY 2025 Guidance
1Q 2025 & FY 2025 Guidance Average Daily Production (‘000) 1Q 2025 FY 2025 (1) Total Company Reported (Oil / BOE) 234 / 465 232 / 462 (1) Total Company Adjusted (Oil / BOE) 193 / 399 191 / 396 FY25 Includes North Sea production of 22 Mbo/d & 27 Mboe/d U.S. (Oil / BOE) 125-127 / ~300 125-127 / ~300 1
Slide 15: Appendix
APA Corporation Appendix APA CORPORATION | 15
Slide 16: Reducing Controllable Spend: Focus Areas
Reducing Controllable Spend: Focus Areas Cost Reduction Efforts Focus Areas 2025 Opportunities 2026+ Opportunities – Headcount rationalization and span of – Further streamline organization through Overhead control consolidation rationalizing systems and simplifying work – Scrutinize all discretionar
Slide 17: Upstream Capital Investment
Upstream Capital Investment 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Total ($ in millions) United States* $419 $665 $547 $459 $2,090 Egypt (excluding noncontrolling interest) $137 $133 $118 $118 $506 North Sea $6 $16 $13 $8 $43 Suriname $6 $25 $20 $7 $58 Upstream Capital Investment Total $568 $839 $698 $592
Slide 18: Egypt Production Detail
Egypt Production Detail 3Q 2024 4Q 2024 Oil Gas Oil Gas (Bbls/d) (Mcf/d) Boe/d (Bbls/d) (Mcf/d) Boe/d Gross Production 136,670 447,173 211,199 134,504 438,052 207,513 Reported Production 91,673 300,418 141,742 89,927 300,118 139,947 % Gross 67% 67% 67% 67% 69% 67% Less: Tax Barrels 24,732 82,633 38,
Slide 19: Cash Return Summary
Cash Return Summary 1Q 2024 2Q 2024 3Q 2024 4Q 2024 2021 2022 2023 2024 Total Shares Repurchased (MM) 3.0 1.5 0.1 4.6 31.2 36.2 8.7 9.2 85.3 Average Stock Repurchased $33.27 $28.72 $29.32 $21.90 $27.14 $39.34 $37.81 $26.72 $33.36 Price Share Repurchases ($MM) $101 $43 $2 $100 $847 $1,423 $329 $246 $
Slide 20: 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 interest, non-cash Glossary of asset retirement additi
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations AP A CO RPO R AT IO N 21
Slide 22: Adjusted EBITDAX Reconciliation
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 23: Free Cash Flow Reconciliation
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 24: 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 25: Net Debt Reconciliation
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 26: Upstream Capital Investment Reconciliation
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 27: apacorp.com
APA Corporation apacorp.com