Apache Investor Day CANADA presentation

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CANADA

John Christmann

February 26, 2014



CANADA’S ASSET BASETRANSFORMATION UNDERWAY

107

Recently Divested Acreage

Alberta

Repositioning Canada1

Before After2

Gross Acres 6.2 MM 4.1 MM

Net Acres 4.9 MM 3.2 MM

Active Well Count 9,613 3,535

British

Columbia

Kitimat

Upstream

Note 1. Amounts exclude wells and acres attributable to Kitimat Upstream.

Note 2. Also excludes acreage and wells attributable 2013 and 2014 divestitures.

2014 Divestment Acreage

Current Apache Acreage

Divested nearly two-thirds of

Apache’s well count and one-

third of production in Canada.



APACHE CANADALIQUIDS-RICH OPPORTUNITIES

108

Apache AcreageKaybob

West 5

Provost

House

Mountain

Kitimat

Upstream

APA Hz rigs (8)

Note 1. Excludes 2013 divestitures as of their closing date and 2014 potential divestitures as of January 2013.

Note 2. Excludes capital associated with Kitimat project of $204 million.Note 3. Land retention wells excluded

Note 4: Excludes amounts attributable to 2013 divestitures, 2014 divestitures and Kitimat Upstream.

2013 RESULTS

Pro forma Average

Production (Includes legacy

Horn River Production)1

74,582 BOE/D

Pro forma % Liquids

(Includes Legacy Horn River

Production)1

30%

Prod. Replacement 189%

Pro Forma Proved Reserves1 410 MMBOE

Capital2 $705 MM

Average Rigs 7 (6 Hz)

Gross Wells3 143 (129 Hz)

4.1 million gross acres (3.2 million net)4

3,535 active wells4

8 rigs running

Current Rigs



TRANSFORMING THE REGIONRE-POSITIONING THE BASE FOR GROWTH

Note 1. Figures exclude Horn River / NEBC and Divest Properties.109

2014 PLAN1

Capital $600 MM

2014 Avg. Rigs 8 (7 Hz)

Gross Wells 121 (117 Hz)

Liquids Focused Drilling

Evaluated the resource base Divested non-core gas properties in 2013

Additional 2014 divestitures

Noel, Wapiti, Ojay

Core plays Bluesky - 32 wells

Swan Hills - 12 wells

Provost Viking - 24 wells

Set in motion plans for additional growth

in new liquids-rich areas Duvernay - 6 wells

Montney - 2 wells

Ellerslie - 4 wells



ELLERSLIE

MULTIPLE STACKED PLAYS

CARDIUM

VIKING

DUNVEGAN

DUVERNAY

BEAVERHILL

LAKE

MONTNEY

BLUESKY /

GLAUCONITE

Black Oil Plays

Repeatable low cost /

high ROR drilling

inventory

Liquids Rich Gas Plays Deep basin gas plays

provide high rates and

significant volumes

Secondary Recovery

High ROR development

projects

110



CURRENT RESOURCE INVENTORY

Dunvegan

Gross Acreage: 350,928

Net MMBOE: 174

Duvernay


Net MMBOE: 461

Bluesky / Glauconite


Net MMBOE: 808

Viking

Gross Acreage: 1,359,129

Net MMBOE: 337

Montney


Net MMBOE: 254

Cardium


Net MMBOE: 341

Net Resources Gross / Net Acreage1

2.8 BBOE 4.1 MM/ 3.2 MM

EllerslieGross Acreage: 260,720

Net MMBOE : 252

111 Note 1. Excludes acreage attributable to 2014 divestitures and Kitimat Upstream..



CANADA REGION – RECENT WELL HIGHLIGHTSBluesky

9-20-58-18W5

6,500 MCF/D; 400 BO/D

4,203’

Dunvegan

9-35-60-20W5

508 BO/D

4835’

Dina

11-26-34-9W4

198 BO/D

Vertical Drill

PROVOSTWEST 5

KAYBOB

WAPITI

Noel

Bluesky

13-30-58-19W5

4,500 MCF/D; 280 BO/D4,157’

Bluesky

4-28-58-19W5

4,600 MCF/D; 393 BO/D

4,147’

2013 drilled 143 wells in 12 different formations

Excellent well results throughout the Canadian Region

Glauconite

13-19-41-5W5

3,900 MCF/D; 135 BO/D

4,931’

Glauconite

16-18-40-6W5

4,500 MCF/D; 243 BO/D

7,047’

Swan Hills

8-26-70-11W5

214 BO/D

2,614’

Swan Hills6-24-69-10W5

266 BO/D

2,720’

Swan Hills

14-1-69-11W5

320 BO/D

3,186’

Viking

7-29-35-4W4

144 BO/D

3,280’

Montney

1-13-59-21W5

5,635 MCF/D; 40 BO/D

4,058’

112

Well Name

Play/Formation

30-Day IP Rate

Lateral Length

Sparky11-32-36-4W4

166 BO/D

3,526’



LOWER CRETACEOUS BLUESKY / GLAUCONITE

113

HORIZONTAL REDEVELOMENT

Acres (000) 561 (378 Net)

2014P New Wells 44

Drilling Inventory 3,041

Resources 808 MMBOE net

Established Bluesky liquids-rich

horizontal play

Play fairway defined by vertical

producers

41 APA horizontal wells drilled to

date

4 rigs running

Kaybob

(Current focus

area)

BC

AB

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

B O E P D

Date

2012 / 2013 DRILLING PROGRAM

Production decrease

attributed to third-party

plant downtime



BLUESKY PLAY OVERVIEW - KAYBOB

Cretaceous sandstone play

Horizontal development program

Liquids rich gas (55 BBLS/ MMSCF)

Doubling activity level in 2014

Testing upside potential

Edges of Sand Lobes

Well Density / Spacing

Increased focus on pad drilling

APA 16-27 HZ

30-day IP BOE/D 620

EUR MBOE 573

APA 12-21 HZ

Test BOE/D 1,199

EUR MBOE 1,070

APA 4-21 HZ

30-day IP BOE/D 1,390

EUR MBOE 1,020

5 mi

APA 9-20 HZ

IP BOE/D 1,093

EUR MBOE 677

APA 9-7 HZ

30-day IP BOE/D 700

EUR MBOE 630

Apache acreage

Proposed Apache wells

Apache drilled wells

114



BLUESKY FORMATION

115

Drilling Economics

D+C Cost $MM 5.5

EUR MBOE 585

% Oil / Gas / Liquids 10% / 72% / 18%

30-Day IP Rate Boed 971

ROR 36%

WI/NRI 66% / 55%

Current Inventory 1,944

PUD + Probable Inventory 168

KAYBOB DEVELOPMENT AREA

0

200

400

600

800

1,000

1,200

0 6 12 18 24 30 36 42 48 54 60

BOE/D Production Type Curve

Month

Note: Well economics assume a $90.00/Bbl WTI, $4.50/MMBTU NYMEX gas and lateral length of 4,200’.

NYMEX

$/MMBTU ROR%

$4.00 30%$4.50 36%

$5.00 43%

$5.50 50%



BLUESKY FORMATION

116

KAYBOB DEVELOPMENT AREA

Note: Type curve assumes lateral length of 4,200’.



DUVERNAY FORMATION

117

DEVONIAN SHALE – ALBERTA DEEP BASIN

Acres(000)

239 Gross(176 net)

2014P New Wells 6

Drilling Inventory 1,656


Six wells planned in 2014 2-8 flowing back – no test rate yet

2-28 completing

4 wells remaining to be drilled

Competitor wells have de-risked

Apache acreage in the Kaybob LRGfairway

Condensate yield on Apache acreage

100-250 BBLS/MMSCF

APA acreage

Key industry wells

APA Proposed wells

APA drilled wells

Map focus area depicts only ~137,000 gross

acres of total 239,000 prospective for Duvernay



DUVERNAY LIQUIDS FAIRWAYKAYBOB AND SIMONETTE

Drilling Economics

D+C Cost $MM 13

EUR MBOE 684

% Oil / Gas / Liquids 40% / 45% / 15%


ROR 37%

WI/NRI 71% / 68%

Current Inventory 574


Production Type Curve

NYMEX

$/MMBTU ROR%

$4.00 35%

$4.50 37%

$5.00 39%

$5.50 41%

118Note: Well economics assume a $90.00/Bbl WTI, $4.50/MMBTU NYMEX gas and lateral length of 4,200’.



MONTNEY FORMATION

119

HIGH RATE / HIGH MMBOE RESERVOIR

Acres (000) 158 Gross(124 Net)

2014P New Wells 2

Drilling Inventory 837


Proven opportunity in stacked zones in

liquids rich fairway

Two locations planned for 2014

13-18 completing

Well-positioned acreage base withsignificant upside

M o n t n e y

NUVISTA 16-21-Hz

30-day IP BOE/D 1031

SINOPEC 14-36 Hz


SINOPEC 15-29 Hz


5 miAPACHE 13-18-Hz

APA acreage

Key industry wells

APA drilled wells

Map depicts only 9,600

acres of total 158,000

prospective for Montney

BC

AB



MONTNEY FORMATION

120

LIQUIDS RICH FAIRWAY

Drilling Economics

D+C Cost $MM 7.3

EUR MBOE 877

% Oil / Gas / Liquids 14% / 78% / 8%


ROR 25%

WI/NRI 73% / 66%


100

200

300

400

500

600

700

800

900

0 6 12 18 24 30 36 42 48 54 60

BOE/D Production Type Curve

Month

NYMEX

$/MMBTU ROR%

$4.00 20%

$4.50 25%

$5.00 29%

$5.50 33%

Note: Well economics assume a $90.00/Bbl WTI, $4.50/MMBTU NYMEX gas and lateral length of 4,000’.

Documents

Apache Investor Day CANADA presentation