Slide 1: Third-Quarter 2022 Financial & Operational Supplement
Third-Quarter 2022 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 2022 Key Metrics
3Q 2022 Key Metrics 3Q 2022 Reported Production 382 Mboe/d Adjusted Production(1) 310 Mboe/d Cost Incurred in Oil and Gas Property $1,160 Million Upstream Capital Investment(2) $492 Million Net Cash Provided by Operating Activities $1,104 Million Adjusted EBITDAX(2) $1,690 Million Free Cash Flow(2)
Slide 4: Recent Highlights
Recent Highlights Generated $609 Million Returned 61% ($373 Million) of of Free Cash Flow(1) in 3Q22 Free Cash Flow to Shareholders in 3Q22 3Q22 Upstream Capital Investment(1) Returned 63% ($1.9 Billion)(2) of Free Cash Flow & of $492 Million Eliminated $3.1 Billion(3) in Bond Debt Since 6/30/2021 D
Slide 5: APA Corporation Strategy
APA Corporation Strategy Foundation For Disciplined Leveraging Long-Term Financial Approach Diversified Success Portfolio • Prioritize long-term, full-cycle returns • Return a minimum of 60% of Free • Diversify risk through a balanced through capital allocation Cash Flow to shareholders through a co
Slide 6: 3Q Asset Update
3Q Asset Update 6
Slide 7: 3Q 2022 Global Portfolio
3Q 2022 Global Portfolio GLOBAL 381,934 BOE/D 47% / 17% / 36% 49 Gross, 46 Net 24 Reported Production Oil / NGL / Gas Drilled & Completed Wells(1) Avg Rigs UNITED STATES INTERNATIONAL 218,826 BOE/D 163,108 BOE/D Reported Production Reported Production 33% / 30% / 37% 65% / 0% / 35% Oil / NGL / Gas O
Slide 8: 3Q 2022 Operating Cash Margins
3Q 2022 Operating Cash Margins Egypt North Sea United States $120 $100 $105 / Boe $80 $71 Per Boe $67 / Boe - $3 $60 vs. 2Q $57 $56 / Boe $41 $40 Per Boe $34 / Boe Per Boe - $9 - $7 vs. 2Q $20 $15 / Boe vs. 2Q $10 / Boe $0 Operating Cash Margin(1) Avg Realization Cash Operating Cost (1) Operating ca
Slide 9: U.S. Update
U.S. Update ASSET HIGHLIGHTS 3Q 2022 ASSET STATS • Exceeded U.S. production guidance with strong well performance across legacy 218,826 BOE/D Midland/Delaware areas & recently acquired properties in Texas Delaware Reported Production 33% / 30% / 37% Oil / NGL / Gas • Southern Midland Basin: Averaged
Slide 10: Egypt Update
Egypt Update ASSET HIGHLIGHTS 3Q 2022 ASSET STATS 134,253 BOE/D • Brought online 22 wells in 3Q22 versus expectation of 20 wells for the quarter Reported Production 60% / 0% / 40% • Expect ~30 well connections for 4Q22 as spud-to-online cycle times have Oil / NGL / Gas improved 32 Gross, 30 Net Dril
Slide 11: North Sea Update
North Sea Update ASSET HIGHLIGHTS 3Q 2022 ASSET STATS 28,855 BOE/D • 3Q22 production impacted by unplanned downtime at Beryl & Reported Production Forties (~7 Mboe/d impact vs original guidance) 87% / 2% / 11% Oil / NGL / Gas 1 Gross, 1 Net Drilled & Completed Wells(1) • Garten-3 (100% WI) commenced
Slide 12: Suriname Update
Suriname Update Block 58 (APA 50% WI) • Five exploration discoveries since Jan. 2020 • Maersk Valiant drilling second appraisal well at the Sapakara South field (TTE operated) • Noble Gerry De Souza drilling the Awari exploration prospect (TTE operated) Block 53 (APA 45% WI) • Announced first explor
Slide 13: Guidance
Guidance 4Q 2022 Commentary Production (Mboe/d) United States……………………………………………………………………………………………………. 217 Only 4 planned well connections in 4Q22; volumes relatively flat with 3Q22 Egypt (Reported)……………………………………………………………………………………………… 144 North Sea…………………………………………………………………………………………………………. 44 - 48 Upda
Slide 14: Appendix
Appendix 14
Slide 15: APA Corporation's 2022 Sustainability Report
APA Corporation’s 2022 Sustainability Report “ We are charting a steady course and positioning ourselves as a partner to the world by providing affordable, reliable and abundant sources of energy. ” John Christmann, CEO and President To view the report online, please visit the APA Corporation websit
Slide 16: Compensation-linked ESG Goals
Compensation-linked ESG Goals Short-term Goals Long-term Goal • Egypt: 40% reduction of upstream flaring in Established long-term incentive Egypt by year-end compensation-linked emissions • People: Develop and implement a future of reduction goal: work strategy inclusive of working model, workplace
Slide 17: Cash Return Summary
Cash Return Summary 3Q 4Q 1Q 2Q 3Q YTD Total Program 2021 2021 2022 2022 2022 9/30/2022 Shares Repurchased (MM) -- 31.2 7.2 7.0 9.8 24.0 55.2 In October 2022, APA Average Stock Price -- $27.13 $36.07 $41.59 $33.85 $36.77 $31.33 repurchased an additional 2 million shares at an Share Repurchases ($MM)
Slide 18: Debt Profile Improvement
Debt Profile Improvement As of September 30, 2022 YE 2021 Sep 2022 Significant Balance Sheet De-Leveraging Actions Notes & • $213 million (April 2022 notes) called at par in January $6,344MM $5,032MM Debentures(1) • De-consolidated ~$1.4 billion of ALTM debt and preferred in February Avg. Coupon 5.0
Slide 19: Upstream Capital Investment
Upstream Capital Investment ($ in Millions) 1Q22 2Q22 3Q22 $ $ $ United States…….…………………………………………............. 175 192 235 Egypt (excluding noncontrolling interest)………………….. 98 109 118 North Sea…………………………………………………………………. 36 41 66 Suriname………………………………………….......................... 52 86 73 Upstream C
Slide 20: Egypt: Production Detail
Egypt: Production Detail 2Q 2022 3Q 2022 Liquids Gas Liquids Gas (Bbls/d) (Mcf/d) Boe/d (Bbls/d) (Mcf/d) Boe/d Gross Production 141,896 555,694 234,512 133,607 510,260 218,650 Reported Production 85,799 346,424 143,536 81,095 318,945 134,253 % Gross 60% 62% 61% 61% 63% 61% Less: Tax Barrels 28,699 1
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. Excludes capital investment for property acquisitions, capitalized interest, non-cash asset
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations 22
Slide 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: 2000 Post Oak Blvd, Suite
2000 Post Oak Blvd, Suite 100 Houston, TX 77056-4400 Corporation apacorp.com