Slide 1: Fourth-Quarter 2019 Financial & Operational Supplement
Fourth-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: 4Q and Full-Year 2019 Key Metrics
4Q and Full-Year 2019 Key Metrics 4Q 2019 FY 2019 Reported Production 487 Mboe/d 474 Mboe/d Adjusted Production(1) 430 Mboe/d 413 Mboe/d Cost Incurred in Oil and Gas Property $548 Million $2,529 Million Upstream Capital Investment(2) $590 Million $2,366 Million Net Cash Provided by Operating Activit
Slide 4: Highlights
Highlights Delivered a 23% YOY reduction in upstream capital 4Q’19 Adjusted production of investment in 2019; below budget of $2.4 billion 430 MBOE/D Exceeded guidance range of 418 – 425 MBOE/D 2020 upstream capital investment of 4Q’19 Permian oil production of 103 Mbo/d $1.6 - $1.9 billion Highest
Slide 5: Apache 2020 Priorities
Apache 2020 Priorities PAY DIVIDEND REDUCE DEBT GENERATE FREE CASH FLOW SUSTAIN OIL APPRAISE AND PRODUCTION EXPLORE SURINAME 5
Slide 6: 2020 Plan Commentary
2020 Plan Commentary 2020 Plan Commentary • Upstream capital budget of $1.6 - $1.9 billion • Base plan contemplates 5-6 rigs in Permian, centered around $50 WTI average oil price 9-11 in Egypt, 2-3 in North Sea, 1 in Suriname • Generate positive Free Cash Flow, after • Retain Free Cash Flow for debt
Slide 7: ESG – Investing in Our People, Community and Environment
ESG – Investing in Our People, Community and Environment Recent ESG Initiatives • Linked 2020 ESG performance directly to short-term incentive compensation • Initiated alignment of disclosures with Sustainability Accounting Standards Board (SASB) and Task Force on Climate-related Financial Disclosur
Slide 8: 4Q Results
4Q Results Apache
Slide 9: 4Q 2019 Global Portfolio
4Q 2019 Global Portfolio GLOBAL 487,202 BOE/D 49% / 34% / 17% 74 Gross, 70 Net 21 Reported Production Oil / Gas / NGL Drilled & Completed Wells(1) Avg Rigs UNITED STATES INTERNATIONAL 298,567 BOE/D 188,635 BOE/D Reported Production Reported Production 36% / 37% / 27% 69% / 30% / 1% Oil / Gas / NGL O
Slide 10: 4Q Permian Summary
4Q Permian Summary Midland Basin REGION STATS 288,043 BOE/D • Averaged 4 rigs, 1 frac crew and placed 19 wells on production Reported Production • 16-well pad (Lynch-Tippett) at Wildfire delivers strong oil production on 1.5 mile laterals 36% / 37% / 27% Oil / Gas / NGL Delaware Basin / Alpine High
Slide 11: 4Q Egypt Summary
4Q Egypt Summary REGION HIGHLIGHTS REGION STATS 125,875 BOE/D • Continued exploration success in 4Q Reported Production • Kadesh – Aqsa 1X IP ~7,000 Boe/d, 29% condensate in Matruh concession • Barakat Deep 2X confirms significant gas find, with over 300 feet of pay in the Shifa formation 63% / 36%
Slide 12: 4Q North Sea Summary
4Q North Sea Summary REGION HIGHLIGHTS REGION STATS 62,760 BOE/D • Gas condensate well at Storr online in November 2019 Reported Production • Cumulative production of more than 380,000 BO and 4.6 BCF (online more than 100 days) 80% / 17% / 3% • Deeper zone in the Cormorant to be tested in 2020 Oil /
Slide 13: 4Q 2019 Operating Cash Margins
4Q 2019 Operating Cash Margins Brent Oil Price Exposure and Product Mix Drive Strong International Margins Egypt North Sea Permian $60 $57 / Boe $50 $46 / Boe $40 $41 Per Boe $30 $35 $27 / Boe Per Boe $20 $16 / Boe $18 $11 / Boe Per Boe $9 / Boe $10 $0 Operating Cash Margin(1) Avg Realization Cash O
Slide 14: Block 58 Offshore Suriname: Significant Oil Discovery at Maka Central-1
Block 58 Offshore Suriname: Significant Oil Discovery at Maka Central - 1 Ranger • Block 58 comprises 1.4 MM acres with 50+ prospects mapped Stabroek Area Exxon Discoveries • Announced a 50/50 JV with Total S.A. on Block 58 in December 2019 Pacora Payara Liza Uaru Mako Snoek Yellowtail • Maka Centra
Slide 15: Guidance
Guidance Apache
Slide 16: United States Production
United States Production 2020 Production Guidance Update (Mboe/d) 280 270 - 285 261 251 224 206 2015 2016 2017 2018 2019 2019 2020E 2020 Note: Lower end of 2020 estimated range assumes full lean gas volume curtailments at Alpine High from March – October and $1.6 billion of upstream capital. Higher
Slide 17: Permian Oil Production
Permian Oil Production 2020 Production Guidance Update (Mbo/d) 97 - 101 95 97 92 91 84 40 78 12 10 9 7 4 5-6 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020E 2020 Production (Mbo/d) Avg. Permian Rigs (Ex Alpine High) 17
Slide 18: International Production
International Production 2020 Adjusted Production Guidance Update (Mboe/d) 167 166 144 134 133 133 - 137 2015 2016 2017 2018 2019 2019 2020E 2020 Note: Includes North Sea production and Egypt adjusted production. This excludes production attributable to Egypt tax barrels and noncontrolling interest.
Slide 19: 2020 Guidance
2020 Guidance (1) Refer to glossary of referenced terms for definition of Upstream Capital Investment. 19
Slide 20: 1Q 2020 Guidance
1Q 2020 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. 20
Slide 21: Appendix
Appendix Apache
Slide 22: 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 23: Organizational Re-Design
Organizational Re-Design Deliver more dynamic planning and $ improved capital allocation Improve collaboration and alignment EXPLORATION DEVELOPMENT OPERATIONS Simplify the organization • CFO • IT SUPPORT • Legal • Energy Tech • Commercial • HR Enable value-adding technology adoption • Accounting •
Slide 24: 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 25: Upstream Capital Investment
Upstream Capital Investment ($ in Millions) 1Q19 2Q19 3Q19 4Q19 Permian…….………………………………….. $ 415 $ 426 $ 388 $ 357 MidCon / Gulf Coast….………………….. 18 12 1 (5) Gulf of Mexico………………………………. 12 16 31 11 United States…..…….…………… 445 454 420 363 Egypt (Apache's interest only)………. 88 71 65 86 North Sea………………
Slide 26: Egypt: Production Detail
Egypt: Production Detail 3Q 2019 4Q 2019 Liquids Gas Liquids Gas (Bbls/d) (Mcf/d) Boe/d (Bbls/d) (Mcf/d) Boe/d Gross Production 189,118 673,065 301,296 187,166 677,819 300,136 Reported Production 85,005 275,569 130,934 79,907 275,811 125,875 % Gross 45% 41% 43% 43% 41% 42% Less: Tax Barrels 17,536 3
Slide 27: Non-GAAP Reconciliations
Non – GAAP Reconciliations 27
Slide 28: Non-GAAP Reconciliation: Adjusted Earnings (Quarter to Date)
Non – GAAP Reconciliation Adjusted Earnings (Quarter to Date) 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 Att
Slide 29: Non-GAAP Reconciliation: Adjusted Earnings (Year to Date)
Non – GAAP Reconciliation Adjusted Earnings (Year to Date) 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 Attrib
Slide 30: 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 31: 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 32: 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 33: 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