Apache : January 2020 Marketing

January 2020 Marketing

Exploring What's Possible

Notice to Investors

Certain statements in this presentation 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 regarding anticipated financial and operating results, asset divestitures, estimated reserves, drilling locations, capital expenditures, price estimates, typical well results and well profiles, type curve, and production and operating expense guidance included in this presentation. Any matters that are not historical facts are forward looking and, accordingly, involve estimates, assumptions, risks, and uncertainties, including, without limitation, risks, uncertainties, and other factors discussed in our most recently filed Annual Report on Form 10-K, recently filed Quarterly Reports on Form 10-Q, recently filed Current Reports on Form 8-K available on our website, www.apachecorp.com, and in our other public filings and press releases. These forward-looking statements are based on Apache Corporation's (Apache) current expectations, estimates, and projections about the company, its industry, its management's beliefs, and certain assumptions made by management. No assurance can be given that such expectations, estimates, or projections will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results, or other expectations expressed in this presentation, including, Apache's ability to meet its production targets, successfully manage its capital expenditures and to complete, test, and produce the wells and prospects identified in this presentation, to successfully plan, secure necessary government approvals, finance, build, and operate the necessary infrastructure, and to achieve its production and budget expectations on its projects.

Whenever possible, these "forward-looking statements" are identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "continues," "could," "estimates," "expects," "guidance," "may," "might," "outlook," "possible," "potential," "projects," "should," "would," "will," and similar phrases, but the absence of these words does not mean that a statement is not forward-looking. Because such statements involve risks and uncertainties, Apache's actual results and performance may differ materially from the results expressed or implied by such forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Unless legally required, we assume no duty to update these statements as of any future date. However, you should review carefully reports and documents that Apache files periodically with the Securities and Exchange Commission.

Cautionary Note to Investors: The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable, and possible reserves that meet the SEC's definitions for such terms. Apache may use certain terms in this presentation, such as "resource," "resource potential," "net resource potential," "potential resource," "resource base," "identified resources," "potential net recoverable," "potential reserves," "unbooked resources," "economic resources," "net resources," "undeveloped resource," "net risked resources," "inventory," "upside," and other similar terms that the SEC guidelines strictly prohibit Apache from including in filings with the SEC. Such terms do not take into account the certainty of resource recovery, which is contingent on exploration success, technical improvements in drilling access, commerciality, and other factors, and are therefore not indicative of expected future resource recovery and should not be relied upon. Investors are urged to consider carefully the disclosure in Apache's Annual Report on Form 10-K for the fiscal year ended December 31, 2018 available from Apache at www.apachecorp.comor by writing Apache at: 2000 Post Oak Blvd., Suite 100, Houston, Texas 77056 (Attn: Corporate Secretary). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC's website at www.sec.gov.

Certain information may be provided in this presentation that includes financial measurements that are not required by, or presented in accordance with, generally accepted accounting principles (GAAP). These non-GAAP measures should not be considered as alternatives to GAAP measures, such as net income, total debt or net cash provided by operating activities, and may be calculated differently from, and therefore may not be comparable to, similarly titled measures used at other companies. For a reconciliation to the most directly comparable GAAP financial measures, please refer to Apache's third quarter 2019 earnings release at www.apachecorp.com.

None of the information contained in this document has been audited by any independent auditor. This presentation is prepared as a convenience for securities analysts and investors and may be useful as a reference tool. Apache may elect to modify the format or discontinue publication at any time, without notice to securities analysts or investors.

2

Recent Highlights

• Streamlined U.S. portfolio withMid-Con exit
• Signaled lower capital spending with modest oil production growth in 2020
• Announced organizationalre-design and cost savings initiatives
• Announced a 50/50 JV with Total S.A. on Block 58 in Suriname
• Significant oil discovery in Block 58 with the MakaCentral-1

3

Plan Commentary & Key Objectives

2020 Plan

• Budget 10 - 20% below 2019 upstream capital investment of $2.4 billion
• Positive Free Cash Flow, after dividend payment
• Investment in areas that generate strong returns in a volatile price environment
• Modestyear-over-year oil production growth

Key Objectives

• Deliver attractiverisk-adjusted returns at moderate pace of growth
• Improve Free Cash Flow yield to compete with other mature industrial sectors
• Invest inlow-cost, attractive risk-adjusted exploration worldwide
• Progress sustainability initiatives

4

3Q 2019 Global Portfolio

UNITED STATES

265,910 BOE/D

Reported Production

38% / 35% / 27%

Oil / Gas / NGL

48 Gross, 47 Net

Drilled & Completed Wells(1)

10

Avg Rigs

GLOBAL

450,644 BOE/D	51% / 33% / 16%	64 Gross, 63 Net	20
Reported Production	Oil / Gas / NGL	Drilled & Completed Wells(1)	Avg Rigs

	UK North Sea
United States		Egypt
April 2015	JuneSuriname	September 2016

INTERNATIONAL

184,734 BOE/D

Reported Production

70% / 29% / 1%

Oil / Gas / NGL

16 Gross, 16 Net

Drilled & Completed Wells(1)

10

Avg Rigs

(1) Includes operated wells completed but not necessarily placed onto production.

5

Doing More with Less in the U.S.

U.S. Production & Rig Count

400								120
350								100
306
				292			286 - 290
300				283
				264	266
	251					80
250
		222
74		206
200					Mid-Con sale &	60
					Alpine High volume
150						curtailments
							40
100			21
			18
	15			16			20
50	8			12	10
0								0
4Q'14	4Q'15	4Q'16	4Q'17	4Q'18	1Q'19	2Q'19(1)	3Q'19	4Q'19E(2)
4Q'14	4Q'15	4Q'16	4Q'17	4Q'18	1Q'19	2Q'19	3Q'19	4Q'19E

Production (Mboe/d)

Avg. Rigs

1. Includes ~25 Mboe/d fromMid-Continent divested assets.
2. Does not include production fromMid-Continent divested assets.

6

Permian Basin

Apache is a Top-Tier Permian Player

•Over 2.9MM gross acres at year-end 2018	Key Focus Areas
•Focused on:	Central Basin
Platform

• Oil production in Midland / Delaware
• Waterflood activities in Central Basin Platform
• Rich gas production at Alpine High

		Central
PERMIAN TOTAL PRODUCTION MBOE/D		Delaware

Southern

Midland Basin

300											254
260							222	236	248	226
						202
220					183
	169
	159	161	158
180
140											Alpine High
100
60
	2014	2015	2016	2017	1Q18	2Q18	3Q18	4Q18	1Q19	2Q19	3Q19

7

Permian Oil Production

Permian Oil Production & Rig Count

										100
140										90
120										80
100	98	94			99	98	92	95	100	70
						60
			78	85
80									50
60	42									40
40										30
		11								20
20			8	9	9
			7	5		10
			3
0	4Q'14	4Q'15	4Q'16	4Q'17	4Q'18	1Q'19	2Q'19	3Q'19	4Q'19E	0
	4Q'14	4Q'15	4Q'16	4Q'17	4Q'18	1Q'19	2Q'19	3Q'19	4Q'19E

Production (Mbo/d)		Avg. Rigs(1)

(1) Avg. Rigs exclude Alpine High rigs.

8

Egypt: Laying Foundation for Oil-Focused Initiatives

• Country's largest oil producer and acreage holder
• Maintained relatively steady gross production for more than 6 years
• Delivers stable free cash flow through the cycle
• Recent exploration success adds to development inventory

Apache Egypt Acreage: ~6.2 million acres

GROSS PRODUCTION MBOE/D (Liquids %)

400
	348	352	349	334	336	332	322	301
300
200			59%	60%			61%	61%
100		57%	59%	62%	62%
0
	2014	2015	2016	2017	2018		1Q19		2Q19		3Q19

9

North Sea: High Margins, High Returns, Free Cash Flow

• Focused on sustaining production and cash flow generation capacity
• 100% drilling success rate in 2019 (10 of 10)
• Excellent exploratory success in Beryl area:
• • Strong initial production at Storr
  • Garten-2delayed due to weather - 4Q Int'l guidance unchanged
  • High impact tertiary exploration portfolio
• Mitigating declines in Forties field through water injection

Apache North Sea Acreage

NET PRODUCTION MBOE/D

80	71	71	68			66
		58	56	60
					54
60
40
20
0
	2014	2015	2016	2017	2018	1Q19	2Q19	3Q19

10

Offshore Suriname: Significant Multi-Zone Oil Discovery

• Announced a 50/50 JV with Total S.A. on Block 58
• MakaCentral-1 (MKC) well confirms geologic model with significant oil discovery in upper cretaceous sands
• • Campanian - 50 meters (164 feet) of oil/gas condensate pay
  • Santonian - 73 meters (240 feet) of oil pay
  • Turonian - Geologic analogue to West African oil fields to be tested in future wells
• Next well: SapakaraWest-1
• • ~20 kilometers (12 miles) southeast of MakaCentral-1
  • Independent exploration test of multiple Camponian and Santonian targets
• Block 58 comprises 1.4 MM acres with 50+ prospects mapped
• Extended exploration rights to Block 58 through 2026

Ranger

Stabroek Area

Exxon Discoveries

Pacora
		Payara
	Liza	MakoYellowtail
Snoek
Hammerhead		Tripletail
	Longtail
		Tilapia Turbot
		Haimara		Block 53
		Pluma	MKC-1
			Sapakara
			West-1
Guyana		Block 58
Offshore

Suriname

Offshore

11

Offshore Suriname: Long-Term Joint Venture With World Class Operator

Key Terms of Total / Apache JV

Block 58 Ownership	50% Total / 50% Apache
Exploration Well Cost Participation	50% Total / 50% Apache (Including Maka Central-1)
- Apache to operate first 3 wells, Total operates thereafter
Total / Apache Appraisal & Development Cost Participation	•	First $10B of Gross Spend:	87.5% Total / 12.5% Apache
- Carried portion recoverable through hydrocarbon	•	Next $5B of Gross Spend:	75.0% Total / 25.0% Apache
production	•	All Gross Spend above $15B:	62.5% Total / 37.5% Apache
Cash Payments to Apache	•	$100MM upon close
	•50% reimbursement of all past Block 58 costs
	•$75MM on first oil production
Royalty Payments to Apache
- On first 1.5B bbls of gross production	•	$0.25 / bbl if Brent is ≤ $65
- Paid quarterly	•$0.375 / bbl if Brent is > $65 ≤ $80
- Using average Brent price in that quarter	•	$0.50 / bbl if Brent is > $80

12

Guyana Basin Stratigraphic

13

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, Long-TermReturns-Focused Investment

RETURN OF CAPITAL

Plan for Increasing Returns to Investors - Debt Reduction, Dividends and Share Repurchases

SUSTAINABLE, MODERATE PRODUCTION GROWTH

Prioritize Returns / Growth is an Outcome

EXPLORATION TO PROVIDE LONG-TERM OPPORTUNITY

Suriname / Egypt / North Sea / U.S. Onshore

14

Appendix

15

Organizational Re-Design

$	Deliver moreproactive planning and
improved capital allocation

Minimizeduplication and redundancy

EXPLORATION DEVELOPMENT OPERATIONS

Improvecollaboration and alignment

SUPPORT

•	CFO	•	Energy Tech
•	Legal	•	HR
•	Commercial	•	Administration

Enablevalue-adding technology adoption

Targeting at Least $150 Million of Annual Savings

16

4Q 2019 Guidance

(1) Excludes dry hole expense and unproved leasehold impairments.

17

2019 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.

(4) Excludes loss on debt extinguishment of $75 million that occurred in 2Q 2019.	18

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 Egypt noncontrolling interest, in each case associated with Apache's upstream business.
• CROIC (Cash Return On Invested Capital): Calculated with the numerator as cash flow from operations before changes in working capital, excluding Egypt noncontrolling interest, with financing costs added back; and the denominator as average debt plus average
  Apache shareholders' equity.
• Net Debt: Total debt (long-term and short-term) less cash and cash equivalents.
• Free Cash Flow: Excess cash flow from operations before working capital changes after upstream capital investment, distributions to noncontrolling interest and dividend payments. The impacts of ALTM are excluded from this definition, as future development of the ALTM midstream assets is expected to be separately funded by ALTM.
• Cash Flow Neutrality: Free Cash Flow equal to zero.

In addition to the terms above, a list of commonly used definitions and abbreviations can be found in Apache's Form 10-K for the year ended December 31, 2018.

19