APA : Fourth Quarter & Full Year 2021 Financial and Operational Supplement

Fourth-Quarter & Full-Year 2021

Financial & Operational Supplement

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 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 earnings supplement. 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.apacorp.com, and in our other public filings and press releases. These forward-looking statements are based on APA Corporation's (APA) 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 earnings supplement, including the company'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 earnings supplement, 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," "prospects," "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, the company'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 the company 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. We may use certain terms in this earnings supplement, 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 us 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 Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (and APA's Annual Report on Form 10-K for the fiscal year ended December 31, 2021 when filed) available at www.apacorp.comor by writing 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 earnings supplement 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 APA's fourth quarter 2021 earnings release at www.apacorp.comand "Non-GAAP Reconciliations" of this earnings supplement.

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

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4Q and Full-Year 2021 Key Metrics

	4Q 2021	FY 2021
Reported Production	386 Mboe/d	388 Mboe/d
Adjusted Production(1)	331 Mboe/d	334 Mboe/d
Cost Incurred in Oil and Gas Property	$392 Million	$1,259 Million
Upstream Capital Investment(2)	$334 Million	$1,062 Million
Net Cash Provided by Operating Activities	$1,085 Million	$3,496 Million
Adjusted EBITDAX(2)	$1,267 Million	$4,573 Million
Free Cash Flow(2)	$485 Million	$1,823 Million
Diluted Earnings Per Share	$1.05	$2.59
Adjusted Earnings Per Share(2)	$1.29	$3.90

1. Excludes productionattributable to Egypt tax barrels and noncontrolling interest.
2. For a reconciliation to the most directly comparable GAAP financial measure please refer to the Non-GAAP Reconciliations.

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APA Corporation Strategy

Foundation For	Disciplined
Long-Term	Financial Approach
Success

• Prioritize long-termfull-cycle returns	• Return a minimum of 60% of Free
through capital allocation	Cash Flow to shareholders through a
• Invest to sustain/slightly grow global	competitive ordinary dividend and
share repurchases
production from pre-pandemic levels
• Focused on immediate and actionable	• Aggressively manage cost structure
ESG opportunities most relevant to our	• Continue to strengthen the balance
industry and APA	sheet

Leveraging

Diversified

Portfolio

• Diversify risk through a balanced commodity profile and geographic pricing points
• Maintain flexibility to re-allocate capital within portfolio in response to commodity price opportunity
• Retain capability to build inventory through exploration or acquire & exploit

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2021 Highlights

Financial

• Generated ~$1.8 billion of Free Cash Flow(1); highest in over a decade & one of the highest in 67-year history
• Initiated shareholder return framework: minimum of 60% of Free Cash Flow to shareholders beginning in 4Q'21 o Returned ~$870 million to APA shareholders through share buybacks & dividends in 4Q'21
  o Raised dividend twice in 2021
• Reduced APA Net Debt(1,2) by $1.2 billion; eliminated >20% of outstanding bonds

Portfolio

• Egypt PSC Modernization signed in late December

• 1. Incentivizes higher investment, returns to oil production growth; free cash flow accretive
• Successful flow test at Sapakara South supports progression toward development project in Block 58 Suriname
• Continued to streamline portfolio with $256 million of noncore asset sales in the Permian Basin
• Announced Altus Midstream / EagleClaw combination creating a vehicle to monetize APA stake & deconsolidate $1.4 billion of debt and redeemable preferred units

ESG

• Achieved 2021 ESG goals

1. Eliminated routine flaring onshore U.S. three months ahead of schedule

• 1. Significantly outperformed goals for U.S. onshore flaring intensity & freshwater consumption
• Delivered strong safety performance
• 1. Improved DART, TRIR, SIF(3) metrics by 43%, 45%, and 60%, respectively, over 2020

1. For a reconciliation to the most directly comparable GAAP financial measure please refer to the Non-GAAP Reconciliations. Please refer to the glossary of referenced terms for the definition of Free Cash Flow.
2. Excludes Altus Midstream (ALTM).

(3) Days Away, Restricted or Transferred (DART); Total Recordable Incident Rate (TRIR); Severe Injury and Fatality Rate (SIF).

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