Slide 1: Third-Quarter 2021 Financial & Operational Supplement
Third-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: APA Corporation Strategy
APA Corporation Strategy Foundation For Leveraging Disciplined Long-Term Diversified Financial Approach Success Portfolio • Prioritize long-term returns through • Diversify risk through a balanced • Return a minimum of 60% of Free capital allocation to best opportunities commodity profile and geogra
Slide 4: ESG Leadership: Primary Areas of Focus
ESG Leadership: Primary Areas of Focus ESG Vision 2021 Goal Be at the forefront of industry’s efforts Eliminating U.S. onshore routine flaring and targeting to measure, disclose and < 1% flaring intensity in the U.S. AIR mitigate emissions Preserve freshwater resources Targeting freshwater consumpti
Slide 5: 3Q 2021 Key Metrics
3Q 2021 Key Metrics 3Q 2021 Reported Production 389 Mboe/d Adjusted Production(1) 336 Mboe/d Cost Incurred in Oil and Gas Property $273 Million Upstream Capital Investment(2) $228 Million Net Cash Provided by Operating Activities $771 Million Adjusted EBITDAX(2) $1,158 Million Free Cash Flow(2) $421
Slide 6: Highlights
Highlights Generated $421 Million of Free Cash Flow(1) in 3Q’21 3Q’21 Adjusted Production(2) of Guiding to >$600 million in 4Q’21 336 MBOE/D Exceeded Guidance 3Q’21 Upstream Capital Investment(1) of Adjusted Oil Production(2) of $228 Million 145 MBO/D Eliminated >20% of Outstanding Announced Elimina
Slide 7: Suriname Update
Suriname Update • Block 58 (APA 50% WI): 4 Discoveries since Jan. 2020, appraisal program underway • Flow test ongoing at Sapakara South-1 appraisal well • Bonboni exploration prospect drilling • Exploration program to continue with Krabdagoe prospect • Block 53 (APA 45% WI): Contracted the Noble Ge
Slide 8: 4Q21 Guidance
4Q21 Guidance New Production (Mboe/d) United States…………………………………………………………………………………. 224 International (Adjusted)………………………………………………………………… 104 Total Adjusted Production……………………………………………………… 328 United States Oil (Mbo/d)…………....................................................... 73 Upstream Capital In
Slide 9: 3Q Asset Update
3Q Asset Update 9
Slide 10: 3Q 2021 Global Portfolio
3Q 2021 Global Portfolio GLOBAL 388,981 BOE/D 46% / 19% / 35% 27 Gross, 24 Net 14 Reported Production Oil / NGL / Gas Drilled & Completed Wells(1) Avg Rigs UNITED STATES INTERNATIONAL 237,498 BOE/D 151,483 BOE/D Reported Production Reported Production 32% / 30% / 38% 68% / 1% / 31% Oil / NGL / Gas O
Slide 11: 3Q 2021 Operating Cash Margins
3Q 2021 Operating Cash Margins Egypt North Sea United States(2) $80 $75 / Boe $70 $60 $46 Per Boe $50 $52 / Boe + $7 vs. 2Q $40 $40 $40 / Boe $30 Per Boe $29 / Boe $29 + $3 vs. 2Q Per Boe $20 North Sea cash operating cost per Boe + $4 $12 / Boe elevated due to lower production resulting vs. 2Q $11 /
Slide 12: 3Q U.S. Update
3Q U.S. Update ASSET HIGHLIGHTS ASSET STATS • Exceeded U.S. production guidance provided in August with strong well 237,498 BOE/D Reported Production performance in all areas 32% / 30% / 38% Oil / NGL / Gas • Southern Midland Basin: Nine new wells placed on production, including 10 Gross, 7 Net Dril
Slide 13: 3Q Egypt Update
3Q Egypt Update ASSET HIGHLIGHTS ASSET STATS • Drilling success rate of 75% (12 of 16 wells) 110,875 BOE/D Reported Production • New seismic data continues unlocking opportunities in both new and existing 63% / 1% / 36% Oil / NGL / Gas fields: o Extended Tayim North field with 2nd discovery on high
Slide 14: 3Q North Sea Update
3Q North Sea Update ASSET HIGHLIGHTS ASSET STATS • Production remained below capacity due to planned & unplanned 40,608 BOE/D Reported Production maintenance downtime during the quarter 83% / 3% / 14% Oil / NGL / Gas 1 Gross, 1 Net • Production increase expected in 4Q’21; though still constrained in
Slide 15: Appendix
Appendix 15
Slide 16: Altus Midstream / EagleClaw Combination
Altus Midstream / EagleClaw Combination TRANSACTION HIGHLIGHTS BENEFITS TO APA • Combination forms largest integrated Delaware Basin midstream • Ownership in combined entity with larger scale, quality assets, company with implied enterprise value of ~$9 billion at signing more diversified customer b
Slide 17: Apache / Fieldwood Asset Retirement Obligation Summary
Apache / Fieldwood Asset Retirement Obligation Summary • Apache Corporation sold properties in the Gulf of Mexico to Fieldwood in 2013 for $3.5 billion • Following Fieldwood’s emergence from bankruptcy in August 2021, Apache evaluated remaining net abandonment obligations related to its legacy Gulf
Slide 18: Debt Maturity Profile
Debt Maturity Profile Current(1) Long Term Debt(2) $6,344MM $1,500 Avg. Coupon 5.075% Avg. Maturity 14.0 Years 1,333 $1,250 $1,000 $750 Near-term maturities expected to be called at par in 2022 $500 703 580 $250 500 428 443 377 399 387 214 212 235 221 123 150 39 $0 - - - - - - - - - - - - - - 2021 2
Slide 19: Open Commodity Derivative Positions (As of November 3, 2021)
Open Commodity Derivative Positions (As of November 3, 2021) Weighted Avg Price Production Period Trade Type Index Units Daily Volume $ / Unit WTI Hedges October – December 2021 Fixed Swap NYMEX WTI BBL 11,000 $58.59 Brent Hedges October – December 2021 Fixed Swap Dated Brent BBL 9,000 $61.44 Midlan
Slide 20: Upstream Capital Investment
Upstream Capital Investment ($ in Millions) 1Q21 2Q21 3Q21 $ $ $ United States…….………………………………………….......... 102 118 92 Egypt (Apache's interest only)……………………….......... 64 75 77 North Sea………………………………………………………………. 40 36 32 Suriname…………………………………………....................... 37 28 27 Upstream Capital Inve
Slide 21: Egypt: Production Detail
Egypt: Production Detail 2Q 2021 3Q 2021 Liquids Gas Liquids Gas (Bbls/d) (Mcf/d) Boe/d (Bbls/d) (Mcf/d) Boe/d Gross Production 136,360 578,380 232,757 134,904 564,354 228,963 Reported Production 71,735 256,262 114,445 70,326 243,294 110,875 % Gross 53% 44% 49% 52% 43% 48% Less: Tax Barrels 16,154 3
Slide 22: 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 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations 23
Slide 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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
Slide 30: 2000 Post Oak Blvd, Suite
2000 Post Oak Blvd, Suite 100 Houston, TX 77056-4400 Corporation apacorp.com