First Quarter 2014 EARNINGS RELEASE OPERATIONS SUPPLEMENT & Pro Forma Production Reconciliation

Transcription

1 First Quarter 2014 EARNINGS RELEASE OPERATIONS SUPPLEMENT & Pro Forma Production Reconciliation

2 TABLE OF CONTENTS Overview... 2 NORTH AMERICA... 6 Permian... 6 Central... 9 Gulf Coast Gulf of Mexico Canada INTERNATIONAL Australia Egypt North Sea... 23

3 NOTICE TO INVESTORS This earnings release operations supplement contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended and, whenever possible, are identified by use of the words such as anticipates, intends, plans, seeks, believes, estimates, expects and similar references to future periods. Any matters that are not historical facts are forward-looking and, accordingly, involve estimates, assumptions, risks and uncertainties, including, without limitation, our assumptions and estimates about the market prices of oil, natural gas, NGLs and other products or services, our commodity hedging arrangements, the supply and demand for oil, natural gas, NGLs and other products or services, production and reserve levels, drilling risks, the number of wells drilled, economic and competitive conditions, the availability of capital resources, capital expenditure and other contractual obligations, and our ability to complete, test and produce the wells identified in this supplement. Because such statements involve risks and uncertainties, Apache s actual results and performance may differ materially from the results expressed or implied by the forwardlooking statements contained in this supplement. Other important factors that could cause actual results to differ materially from expected results are described in Risk Factors in our most recently filed Annual Report on Form 10-K, recent Quarterly Reports on Form 10-Q and amendments thereto, available on our Web site and in our other public filings and press releases. There is no assurance that Apache's expectations will be realized, and readers are cautioned not to place undue reliance on forward looking statements, which speak only as of the date hereof. Unless otherwise required by law, we assume no duty to update these statements as of any future date. 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 earnings release operations supplement, such as resources, potential resources, resource potential, reserves potential, 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, 2013, available from Apache at or by writing Apache at: 2000 Post Oak Blvd., Suite 100, Houston, Texas (Attn: Corporate Secretary). You can also obtain this report from the SEC by calling SEC-0330 or from the SEC's website at Certain information may be provided in this supplement that includes financial measurements that are not required by, or presented in accordance with, generally accepted accounting principles (GAAP), including these measures: adjusted earnings, pre-tax margin, and cash from operations. These non-gaap measures should not be considered as alternatives to GAAP measures, such as net income or cash from operating activities, and may be calculated differently from, and therefore may not be comparable to, similarly titled measures used at other companies. Reconciliation to the most directly comparable GAAP financial measure has been provided on our website at None of the information contained in this document has been audited by any independent auditor. This supplemental document is prepared as a convenience for securities analysts and investors and may be useful as a reference tool. Apache intends to continue to publish this supplement in conjunction with our quarterly earnings release, but may elect to modify the format or discontinue publication at any time, without notice to securities analysts or investors. 1

4 Overview North America onshore liquids grew 21 percent year-over-year and 6 percent over the previous quarter led by strong results in our Permian region. Total North America onshore liquids volumes reached a record 198,500 Bbls/d. Total worldwide reported production during the quarter was 640 thousand barrels of oil equivalent per day (Mboe/d), 672 Mboe/d including discontinued operations from Argentina. Liquids production from continuing operations comprised 58 percent of the total, up from 57 percent in the previous quarter. Taking into account divestments, on a pro forma basis excluding noncontrolling interest and tax barrels in Egypt, quarterly production averaged 548 Mboe/d compared to a 2013 average of 537 Mboe/d. Strong operational results were partially offset by weather-related downtime in our Central and North Sea regions coupled with scheduled downtime in Australia. Apache averaged 117 rigs worldwide during the first quarter, 71 percent of which were focused in North America. The company completed 346 gross wells during the quarter, 88 percent in onshore North America. APACHE WORLDWIDE OPERATIONS GLOBAL KEY STATS* Q1 Production: 639,804 Boe/d Q1 Wells: 346 wells, 263 net Q1 Rigs: Avg 117 rigs NORTH AMERICAN KEY STATS* Q1 Production: 368,100 Boe/d Q1 Wells: 305 wells, 230 net Q1 Rigs: Avg 83 rigs *The number of wells reported as drilled and/or completed could be subject to reclassification which may cause adjustments to reported amounts in future periods. The number of wells reported is subject to SEC standards and therefore, along with other SEC guidelines, includes completed wells only. Production data referenced is based on continuing operations unless otherwise stated. 2

5 FIRST-QUARTER GAAP PRODUCTION BY REGION 640 Mboe/d North Sea 10% Australia 8% 14% Central Egypt 24% N.A. Onshore 56% Gulf of Mexico 2% Canada 14% 5% Gulf Coast 23% Permian FIRST-QUARTER GAAP PRODUCTION BY PRODUCT 640 Mboe/d FIRST-QUARTER REVENUE BY PRODUCT $3.6 Billion International Liquids 26% North American Liquids International Liquids $1.6 Bn North American Liquids $1.4 Bn 32% 44% 38% 17% International Gas 25% 7% 11% North American Gas North America Onshore International & Offshore Liquids Natural Gas 3 International Gas $0.2 Bn North American Gas $0.4 Bn Note: Production excludes average Q1 production volumes from discontinued operations of 31,731 Boe/d. Production also includes noncontrolling interest in Egypt of 49,944 Boe/d.

6 (32) 640 PRO FORMA FIRST-QUARTER PRODUCTION BY REGION 548 Mboe/d 583 Mboe/d (16) (1) 623 (50) 573 (38) GAAP + Discontinued Operations Discontinued Operations (Argentina) As Reported Canada Sales GOM Shelf Pro Forma Excluding Divestitures Noncontrolling Pro Forma Adj. Interest for Noncontrolling Interest Egypt Tax Barrels Adj. for Noncontrolling Interest Tax Barrels Q Pro Forma PRO FORMA FIRST-QUARTER PRODUCTION BY REGION 548 Mboe/d 583 Mboe/d North Sea 12% Australia 10% Central PRO FORMA FIRST-QUARTER PRODUCTION BY PRODUCT 548 Mboe/d International Liquids North American Liquids Egypt Gulf of Mexico 14% 2% 16% N.A. Onshore 62% 22% 14% 37% Canada 13% 6% 27% Permian International Gas 27% Gulf Coast North American Gas North America Onshore International & Offshore Liquids Natural Gas Note: Pro forma represents first-quarter volumes less divested volumes from Argentina and Canada sales and noncontrolling interest in Egypt. This production bridge provides a reconciliation to the pro forma 537 Mboe/d shown on page 164 of 2014 Investor Day Presentation. 4

7 CENTRAL AND PERMIAN PRODUCTION: 1Q 2013 VS 1Q 2014 Total Production (Mboe/d) Liquids Production (Mbbls/d) % % 150 Permian % 24% Liquids NGLs % 90 Central % 110 Oil % Liquids Q Q % 67% 0 Q Q CENTRAL AND PERMIAN PRODUCTION: 4Q 2013 VS 1Q 2014 Total Production (Mboe/d) Liquids Production (Mbbls/d) % % 150 Permian % 160 Liquids % 50 NGLs % 90 Central % 110 Oil Q Q Q Q 2014 % Liquids 66% 67% 5

8 NORTH AMERICA Permian First-quarter 2014 production in the Permian averaged a record 149,564 barrels of oil equivalent per day (Boe/d) (76 percent liquids), up 12 percent over the previous quarter. The substantial growth during the quarter was driven by successful horizontal drilling programs across the basin and led by the Wolfcamp shale. PERMIAN KEY STATS Q1 Production: 149,564 Boe/d Q1 Wells: 196 wells, 154 net Q1 Rigs: Avg 38 rigs The Permian region averaged 38 operated drilling rigs, down three net rigs from the previous quarter with an additional rig drilling horizontal wells and four fewer rigs drilling vertical wells. Overall the region spud 202 gross operated wells during the quarter, 80 horizontal and 122 vertical. APACHE PERMIAN REGION ACREAGE AND KEY PLAYS 6

9 Permian (Continued) WOLFCAMP SHALE Apache has an estimated 502,000 gross acres (401,000 net) prospective for Wolfcamp Shale. The Barnhart area of Irion County remained extremely active ramping back up to six horizontal rigs. First-quarter activity focused on drilling 12 Upper and 8 Middle Wolfcamp wells, all with lateral lengths drilled to 1.5 miles. Additionally, Apache was also active in Reagan and Uptown counties of the southern Midland Basin. Seven rigs drilled across three main development fields Powell, Scottish Rights Hospital (SRH) and Weatherby. CLINE SHALE Apache has an estimated 640,000 gross acres (510,000 net) prospective for Cline Shale. The Lower Cline inventory continues to grow and various alterations to completion and fracture stimulation parameters are being tested to maximize the rate and reserves recovered. A total of 35 gross wells are planned for CENTRAL BASIN PLATFORM (CBP) Apache has an estimated 1.8 million gross acres (850,000 net) in the CBP. Apache continues to have success targeting the Wichita Albany play where three horizontal wells were spud and six were completed during the first quarter. NORTHWEST SHELF - YESO Apache has approximately 115,000 gross acres (95,000 net) in the Yeso play. Three drilling rigs remained active during the first quarter and 25 wells were spud, including four horizontal and 21 vertical wells. Completion operations on the Cedar Lake horizontal program commenced during the fourth quarter of last year. As most of these wells have cleaned up, they began reaching their peak rates by the end of the first quarter Apache plans to drill approximately 20 horizontal wells and 75 vertical by the end of the year. DELAWARE BASIN Apache has an estimated 550,000 gross acres (215,000 net) in the Delaware Basin. Apache entered the first quarter running three rigs in the Pecos Bend field, spudding a total of five wells and completing four targeting three landing zones: the 2 nd Bone Spring, 3 rd Bone Spring and Wolfcamp formations. 7

10 Permian (Continued) PERMIAN WELL HIGHLIGHTS PLAY/TARGET WELL NAME COUNTY, ST TVD LATERAL IP (Peak 24-Hour) IP (30-Day) SRH North 1332 HM Reagan, TX 7,725 5,100 1,140 Boe/d N/A SRH North 1331 HU Reagan, TX 7,400 5, Boe/d N/A Wolfcamp Shale Miller 36 #4 Upton, TX 9,016 4,420 1,572 Boe/d 732 Boe/d Miller 36 #3 Upton, TX 9,350 4,420 1,293 Boe/d 719 Boe/d Scott Sugg 5554 H23M Irion, TX 7,150 8, Boe/d 712 Boe/d Cline Shale Greatwhite 44 #1H Glasscock, TX 9,400 4, Boe/d 662 Boe/d Ballenger #3212H Glasscock, TX 9,420 7, Boe/d 518 Boe/d Penn (CBP) George D Hogg #7H Winkler, TX 8,692 4,416 1,539 Boe/d 1,406 Boe/d Clearfork (CBP) Seth Cambell #80 Winkler, TX 5,505 N/A 708 Boe/d 610 Boe/d Yeso Crow Fed #22H Eddy, NM 5,160 4, Boe/d N/A Yeso Crow Fed #23H Eddy, NM 5,770 4, Boe/d N/A 3 rd Bone Spring Robin 8 #101H Reeves, TX 10,700 5,013 1,036 Boe/d N/A Robin 8 #102H Reeves, TX 10,675 4, Boe/d N/A 8

11 Central First-quarter 2014 production in the Central Region was 89,524 Boe/d, down 4 percent over the fourth quarter of 2013 due to a combination of downtime and outages caused by severe winter weather that not only impacted production but also set back our drilling and completion schedules. Liquids now constitute 52 percent of production (oil is 24 percent), up from 46 percent in the first quarter of For the quarter, the Central Region averaged 26 drilling rigs and drilled 69 gross (44 net) wells. CENTRAL KEY STATS Q1 Production: 89,524 Boe/d Q1 Wells: 69 wells, 44 net Q1 Rigs: Avg 26 rigs APACHE CENTRAL REGION ACREAGE AND KEY PLAYS 9

12 Central (Continued) GRANITE WASH Apache holds approximately 855,000 gross (435,000 net) acres prospective for the Granite Wash. In the Stiles Ranch area in Wheeler County, two horizontal Caldwell wells were completed: The Bartz 19 #29-19H achieved 30-day initial production rates of 327 Bo/d and 6,200 Mcf/d; and the Bartz 19 #28-19H realizing 30-day initial production rates of 160 Bo/d and 5,300 Mcf/d. TONKAWA Apache holds an estimated 822,000 gross (407,000 net) acres prospective for the Tonkawa. Apache drilled or participated in 22 Tonkawa wells during the first quarter. Apache continues to reduce costs in the formation with the most recent drilling and completion costs coming in just over $4 million. MARMATON Apache holds an estimated 609,000 gross (295,000 net) acres in the Marmaton. Apache continues to see positive results in its Lower Marmaton drilling program and plans to increase the number of expected wells drilled this year to 30. COTTAGE GROVE Apache holds an estimated 222,000 gross (93,000 net) acres in the oil-rich Cottage Grove. Apache extended its Oklahoma Cottage Grove play with the Taylor #1H located in Beckham County which produced at a 30-day average rate of 1,100 Bo/d and 956 Mcf/d. The well has since been offset by two additional tests. The Taylor #1H and the Taylor #1H are each producing in excess of 1,500 Bo/d with just over a quarter of the frac load recovered. CANYON WASH/CANYON LIME Apache holds an estimated 150,000 gross (100,000 net) acres prospective for the Canyon Wash in the Bivins Ranch area (Whittenburg Basin). To date, Apache has drilled just over two dozen vertical wells into the Paint Ridge field. Apache also drilled its first horizontal Canyon Lime well. The Bivins East 41H was drilled to a vertical depth of roughly 9,500 feet with a one mile lateral and is currently flowing back. Two additional Canyon Lime wells are currently being drilled. In addition to horizontal Canyon Lime wells, Apache plans to drill its first horizontal Canyon Sand wells early in the second quarter. 10

13 Central (Continued) CENTRAL WELL HIGHLIGHTS PLAY/TARGET WELL NAME COUNTY, ST TMD IP (30-Day) Gracie Vail 77 #2H Hemphill, TX 15,361 1,109 Boe/d Granite Wash Bartz 19 #29-19H Wheeler, TX 17,465 1,360 Boe/d Bartz 19 #28-19H Wheeler, TX 17,255 1,043 Boe/d Tonkawa Stucker Unit 1-5H Ellis, OK 14, Boe/d* Marmaton Shelf Ron H Roger Mills, OK 15,900 1,700 Boe/d Marmaton Wash Farrell H Roger Mills, OK 15,600 1,341 Boe/d Cottage Grove Taylor #1H Beckham, TX 14,724 1,259 Boe/d Stiles 4D #20-4H Wheeler, TX 15, Boe/d * Less than 30-day rate 11

14 Gulf Coast First-quarter 2014 production averaged 29,939 Boe/d, flat with the fourth quarter, due to freezing issues at Atchafalaya Bay and Belle Isle. Oil production for the quarter was 10,975 Bbls/d, which is 6 percent above fourth quarter 2013 oil production of 10,397 Bbls/d. This increase is primarily from new Eagle Ford completions. GULF COAST KEY STATS Q1 Production: 29,939 Boe/d Q1 Wells: 3 wells, 2 net Q1 Rigs: Avg 5 rigs Apache averaged three rigs in the Eagle Ford and two rigs in South Louisiana for a total of five operated drilling rigs while completing a total of three gross (two net) wells. Early tests in Apache s Eagle Ford acreage showed promising results. Activity in the Golden Meadow Field kicked off early with great success. Recompletions accounted for a 692 Boe/d increase by the end of the first quarter. APACHE GULF COAST REGION ACREAGE AND KEY PROJECTS 12

15 Gulf Coast (Continued) EAGLE FORD Apache has drilled 10 wells to date in its emerging Eagle Ford play in Brazos and Burleson counties and has five wells currently on production. Thus far, we have seen positive results from each section of Apache s core development area. The average lateral length of the wells drilled by Apache is approximately 6,300 feet. One of the most recent wells, the McCullough-Wineman #2H, was completed with an 8,300 foot lateral. Future plans in the McCullough- Wineman area include wells with up to 10,000 foot laterals. GULF COAST WELL HIGHLIGHTS PLAY/TARGET WELL NAME TMD Lateral Length IP (30-Day) Stasny-Porterfield #1H 14,789 5, Boe/d Eagle Ford Stasny-Porterfield #2H 14,653 5, Boe/d McCullough-Wineman #2H 19,629 8,300 1,455 Boe/d South Pass Field 24 BLD U13 #3 8,113 N/A 296 Boe/d Golden Meadow Field Laterre #286 8,100 N/A 307 Boe/d Homeseeker E Robertson #1 14,220 N/A 608 Boe/d 13

16 Gulf of Mexico Apache s production from in the Gulf of Mexico averaged 10,763 Boe/d during the first-quarter A total of five rigs were running in the region including four nonoperated rigs on the Shelf and one operated rig in the Deepwater. As part of the Deepwater developments, the Bushwood well came online during the quarter and is currently producing 25 MMcf/d and 300 Bo/d. GULF OF MEXICO Q1 Production: 10,763 Boe/d Q1 Wells: 2 wells, 1 net Q1 Rigs: Avg 1 rig The Fieldwood operated EI 136 JA-4 (50 percent working interest) well reached total depth and found gas and condensate pay. The well was then completed and placed into production at initial gross rates of 6.5 MMcf/d and 400 Bo/d. APACHE GULF OF MEXICO REGION ACREAGE AND KEY ASSETS 14

17 Canada First-quarter 2014 production in Canada, which includes Kitimat upstream production, was 88,310 Boe/d. Total liquids production averaged 25,358 Bbls/d for the first quarter, up 10 percent from the fourth-quarter volumes of 22,965 Bbls/d, due to successful horizontal drilling in House Mountain and new liquids-rich production from West 5 and Kaybob Bluesky areas. Apache had record production in Kaybob during the first quarter of Eight wells were spud in Bluesky and five have been completed with an average test rate of 4.7 MMcf/d and average liquids yields of 67 Bbls/MMcf. CANADA KEY STATS* Q1 Production: 88,310 Boe/d Q1 Wells: 35 wells, 28 net Q1 Rigs: Avg 13 rigs Apache brought online its first horizontal Montney liquids-rich well in the Wapiti area and drilled its second liquidsrich Duvernay well in the Kaybob area, both with encouraging results. On April 30, 2014, Apache completed the sale of its Ojay, Noel and Wapiti areas in Alberta and British Columbia. These are primarily dry gas-producing properties comprising 622,600 gross acres (328,400 net acres). In the Wapiti area, Apache will retain 100 percent of its working interest in horizons below the Cretaceous including rights to the liquids-rich Montney and other deeper horizons. During 2013, production from the fields to be divested averaged 101 MMcf/d of natural gas and 1,500 Bbls/d of liquid hydrocarbons (18,400 Boe/d). APACHE CANADA REGION ACREAGE AND KEY ASSETS *Includes Kitimat Upstream. 15

18 Canada (Continued) * Less than 30-day rate CANADA WELL HIGHLIGHTS PLAY/TARGET WELL NAME TVD Lateral Length IP (% Gas) Beaverhill Lake Bluesky Glauconite 00/ W5/00 7,303 4, Boe/d* (6%) 00/ W5/00 7,425 2, Boe/d* (6%) 00/ W5/00 7,400 4, Boe/d* (6%) 00/ W5/00 7,106 4,073 1,854 Boe/d* (77%) 00/ W5/00 6,976 3,566 1,429 Boe/d* (79%) 00/ W5/00 7,566 3,586 1,350 Boe/d* (74%) 00/ W5/00 7,654 3, Boe/d* (70%) 03/ W5/00 7,654 4, Boe/d* (70%) 16

19 Canada (Continued) KITIMAT UPSTREAM (50 PERCENT APA) During the first quarter, Kitimat Upstream production in the Horn River and Liard Basins averaged 58 MMcf/d net to Apache s interest, down 8 percent from fourth quarter 2013 due mainly to a planned shut-in for pad drilling (D- 28-B horizontal) and well testing in both basins, plus natural declines. Six rigs were drilling at the end of the first quarter including: three on vertical tenure wells; one on the 28-B horizontal tenure / production well, which is scheduled to be on production in the fourth quarter; one on the three-well horizontal 13-K South Pad expected to rig release in early 2015; and one on the seven-well horizontal 3-K North Pad, which has an expected rig release date of fourth quarter No wells were drilled for production during the quarter. Operations started on the 2013/2014 winter 3D seismic programs in the first quarter, with a 515-square-mile acquisition expected to be completed by early second quarter At 54 north, Kitimat is one of North America s closest ports to Asian markets. Liard Kitimat-Tokyo 3,988 nm, 10 days Qatar-Tokyo 6,500 nm, 16 days KM 17

20 INTERNATIONAL Australia First-quarter 2014 production was 52,790 Boe/d, down 11 percent from fourth-quarter Gas volumes were down as a result of contract timing, while oil volumes were down due to the scheduled Van Gogh downtime for FPSO upgrades. It is anticipated the FPSO will return in the third quarter to begin production from the Coniston oil field. Oil downtime was partially offset by first oil from the BHP-operated Upper Pyrenees well. AUSTRALIA KEY STATS Q1 Production: 52,790 Boe/d Q1 Wells: 4 wells, 2 net Q1 Rigs: Avg 2 rigs During the first quarter, the region operated two semi-submersible drilling rigs and drilled four gross (two net) wells. APACHE AUSTRALIA REGION ACREAGE AND KEY PROJECTS 18

21 Australia (Continued) BALNAVES (65 PERCENT APA) The installation of the subsea infrastructure was completed during the first quarter. The FPSO shipyard work scope was completed and is preparing to sail from Singapore to the field for hook-up and commissioning activities. The FPSO and facilities remain on track for start-up in the third quarter of NINGALOO VISION UPGRADE PROJECT AND CONISTON DEVELOPMENT (52.5 PERCENT APA) Development drilling re-commenced in December 2013 and three of the 17 laterals were drilled and completed in the first quarter. The Ningaloo Vision FPSO entered the Keppel Shipyard in Singapore where the hull steel inspections were completed and steel renewal commenced. The project remains on track for start-up in the third quarter of JULIMAR (65 PERCENT APA) / WHEATSTONE LNG (13 PERCENT APA) Wheatstone progress is 33-percent complete. Platform fabrication continued with all topside deck blocks and steel gravity substructure blocks erected. Operations for laying the trunkline to shore started in the first quarter. At the LNG plant site, the first pour of the LNG tank foundations took place and plant piling work and construction of the marine offloading facility continued. At Julimar, drilling of the five development wells resumed on the intermediate hole sections and the first subsea trees were installed. During the quarter, the four-inch MEG pipeline was laid and the first of the pipeline structures was installed subsea. The project is 56-percent complete. UPPER PYRENEES /MOONDYNE (28.57 PERCENT APA) All six wells in this add-on development to Pyrenees were drilled and completed in the first quarter. Upper Pyrenees commenced production at an average gross rate of 21,000 Bo/d. Moondyne installation remains on track for first production in the second quarter. 19

22 Egypt In Egypt, Apache s operations continue uninterrupted. First quarter gross liquids production was 199,268 Bo/d and gross gas production was 921 MMcf/d, for a total of 352,841 Boe/d. Apache averaged 27 rigs in the first quarter and drilled a total of 32 gross (28 net) wells. EGYPT KEY STATS* Q1 Gross Production: 352,841 Boe/d Liquids: 199,268 Bo/d Gas: 921,440 Mcf/d Q1 Wells: 32 well, 28 net Q1 Rigs: Avg 27 rigs Apache maintains an active exploration program. In Khalda seven exploration and appraisal wells were drilled to total depth with three discoveries. Two significant new field discoveries were made at Herunefer-1X in the Khalda Offset (East) Concession and Bat-1X, a stratigraphic play in the South Umbarka Concession s Khepri-Sethos Development Lease. Stratigraphic traps and Paleozoic plays continue to develop within the Khalda Prospect portfolio, offering upside potential for exploration drilling in future years. During the quarter, Apache was granted two new Development Leases, the Apries Development Lease and the North Tarek H Development Lease. New well discoveries there included: The Apries-1X, located in the Khalda Offset Concession within the Shushan Basin, tested 4,389 Bo/d and 14.2 MMcf/d from Paleozoic Basur sand. The well encountered 87 feet of net pay in the Basur. The NTRK-H-1X, located in the North Tarek Concession within the Matruh Basin, tested 20 MMcf/d and 250 Bo/d from 60 feet of fracture-stimulated Jurassic Lower Safa pay. The well was a follow-up to the previously announced NTRK-G-1X Upper Safa discovery. Four horizontal wells were drilled during the quarter - the UMB 227H, NRQ 255-6H, MRZK 102H and Neama-14H. The UMB 227H was drilled in the Upper Bahariya reservoir. A seven stage multi-frac completion is planned for Q2. The NRQ 255-6H targeted the Abu Roash G dolomite and drilled 1,842 feet of lateral section. A total of 1,344 feet of net pay was encountered, with an average porosity of 23 percent and water saturation of 37 percent. The well is waiting on completion and will be acid stimulated. The MRZK 102H was completed with an initial rate of 1,030 Bo/d on February 13, and at the end of the first quarter, it was producing 880 Bo/d. Apache will start a multi-stage fracture at the Neama-14H well in early May. Well results continue to highlight the potential of horizontal technology in the Western Desert. *Includes noncontrolling interest. 20

23 Egypt (Continued) EGYPT WELL HIGHLIGHTS PLAY/TARGET WELL NAME IP (30-Day) Safa Tayim W3 1,410 Boe/d Lower Safa Hydra 7 5,830 Boe/d Upper Safa Abu Roash G Duke 1X Hydra 8 SWAG 8 SWAG 6 MRZK 97 MRZK 102H 4,070 Boe/d 3,900 Boe/d 2,013 Boe/d 1,450 Boe/d 1,080 Boe/d 1,030 Boe/d Alam El Buieb 3A SAL 67 1,930 Boe/d APACHE EGYPT REGION ACREAGE AND KEY BASINS 21

24 Egypt (Continued) Liquids (MBbls/d) EGYPT PRODUCTION DETAIL 1Q Q 2013 Gas (Mcf/d) Boe/d Liquids (MBbls/d) Gas (Mcf/d) Boe/d Gross Production 199, , , , , ,098 Net Production With Tax: Apache Share 59, , ,275 74, , ,996 Noncontrolling Interest 29, ,799 49,944 15,521 65,437 26,427 Total Net Production With Tax 88, , ,219 89, , ,423 % of Gross 44.3% 41.0% 42.9% 43.9% 38.4% 41.6% Total Tax Barrels 22,630 89,805 37,598 23,846 82,124 37,533 Net Production Without Tax: Apache Share 43, ,701 75,747 54, ,295 73,927 Noncontrolling Interest 21,899 95,851 37,874 11,393 50,197 36,963 Total Net Production Without Tax 65, , ,621 65, , ,890 % of Gross 33.0% 31.2% 32.2% 32.2% 29.5% 31.1% 22

25 North Sea First-quarter production in the North Sea was 67,695 Boe/d, down 10 percent from the fourth quarter of 2013 due to a combination of extended adverse weather offshore and unplanned downtime on several platforms. During the first quarter the region operated an average of five drilling rigs and drilled four gross (three net) wells and conducted two key workovers. NORTH SEA KEY STATS Q1 Production: 67,695 Boe/d Q1 Wells: 4 wells, 3 net Q1 Rigs: Avg 5 rigs From the Forties Delta Platform, the T185 development well targeted by-passed oil identified on 4D time lapse data which intersected 12 feet of true vertical depth net oil pay in the Upper Main Sand. The current rate after two months of production is 1,000 Bo/d. The Rowan Gorilla 7 heavy-duty jack up rig returned to the Forties field in February after extensive leg repairs and started drilling operations on a three well program over Forties Echo. NORTH SEA WELL HIGHLIGHTS PLAY/TARGET WELL NAME IP (30-Day) Forties Delta UMS FD 2-4 1,020 Bo/d APACHE NORTH SEA REGION ACREAGE AND KEY PROJECTS 23