Third Quarter 2014 QUARTERLY SUPPLEMENT

Transcription

1 Third Quarter 2014

2 TABLE OF CONTENTS Operational Overview... 2 NORTH AMERICA... 6 Permian... 6 Central Gulf Coast Canada Gulf of Mexico INTERNATIONAL Australia Egypt North Sea Supplementary Financial Data Debt Bridge Oil and Gas Capital Investment... 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 Operational Summary North American onshore liquids production grew 15 percent year-overyear and 5 percent sequentially on a pro forma basis led by strong results in our Permian region. Total North American onshore liquids volumes reached a record 211,402 Bbls/d. Total worldwide reported production during the quarter averaged 637 thousand barrels of oil equivalent per day (Mboe/d). Liquids production comprised 60 percent of the total, up from 59 percent in the previous quarter. Pro forma third-quarter production averaged 562 Mboe/d compared to a third-quarter 2013 average of 529 Mboe/d, a 6 percent increase. Apache averaged 126 rigs worldwide during the third quarter, 91 of which were focused onshore in North America. The company completed 382 gross wells during the quarter, 309 of which were in North America onshore. NORTH AMERICAN ONSHORE KEY STATS 3Q Production: 354,862 Boe/d (60% Liquids) 3Q Wells: 309 gross, 224 net 3Q Rigs: Avg 91 rigs GLOBAL KEY STATS 3Q Production: 636,802 Boe/d (60% Liquids) 3Q Wells: 382 gross, 285 net 3Q Rigs: Avg 126 rigs APACHE WORLDWIDE OPERATIONS Note: Pro forma production rates and growth percentages in this report are adjusted to exclude volumes from divestitures, noncontrolling interest and tax barrels in Egypt. The number of wells reported as drilled and/or completed throughout this report could be subject to reclassification that 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. 2

5 PRO FORMA THIRD-QUARTER PRODUCTION BRIDGE 562 Mboe/d As Reported Egypt Tax Barrels Noncontrolling Interest 3Q 2014 Pro Forma PRO FORMA THIRD-QUARTER PRODUCTION BY REGION 562 Mboe/d 583 Mboe/d North Sea 12% Australia 9% Central PRO FORMA THIRD-QUARTER PRODUCTION BY PRODUCT 562 Mboe/d International Liquids North American Liquids Egypt 14% 16% 22% 39% Gulf of Mexico 2% N.A. Onshore 63% 13% 13% 29% International Gas 26% Canada 5% Permian Gulf Coast North American Gas North American Onshore International & Offshore Liquids Natural Gas 3

6 PRO FORMA NORTH AMERICAN ONSHORE PRODUCTION: 3Q 2013 VS 3Q 2014 Liquids Production (Mbbls/d) Total Production (Mboe/d) % % 18% Liquids NGLs % 145 Oil % Liquids 3Q Q % 60% 0 3Q Q 2014 PRO FORMA WORLDWIDE PRODUCTION (Mboe/d) PF 3Q 2013 PF 4Q 2013 PF 1Q 2014 PF 2Q 2014 PF 3Q

7 REPORTED THIRD-QUARTER PRODUCTION BY REGION 637 Mboe/d North Sea 10% Australia 9% 14% Central Egypt 24% N.A. Onshore 55% Gulf of Mexico 2% 11% Canada 5% Gulf Coast 25% Permian REPORTED THIRD-QUARTER PRODUCTION BY PRODUCT 637 Mboe/d THIRD-QUARTER REVENUE BY PRODUCT $3.5 Billion International Liquids 26% North American Liquids International Liquids $1.5 Bn North American Liquids $1.5 Bn 34% 44% 41% 17% International Gas 23% North American Gas 6% International Gas $0.2 Bn 9% North American Gas $0.3 Bn North American Onshore International & Offshore Liquids Natural Gas Note: Reported volumes are consistent with production included for purposes of GAAP financial reporting and therefore include noncontrolling interest and tax barrels in Egypt. 5

8 NORTH AMERICA Permian Third-quarter 2014 production averaged a record 161,808 barrels of oil equivalent per day (Boe/d) (78 percent liquids), up 4 percent over the previous quarter, and up 23 percent over the third quarter of Apache averaged 42 operated drilling rigs, with horizontal rigs increasing to 28 from 24 and vertical rigs increasing to 14 from 13. PERMIAN KEY STATS 3Q Production: 161,808 Boe/d (78% Liquids) 3Q Wells: 195 gross, 144 net 3Q Rigs: Avg 42 rigs The Wolfcamp programs at Barnhart (Irion County) and in the Southern Midland Basin (SMB), the Bone Springs developments at Pecos Bend (Reeves County), and the Yeso program at Cedar Lake (Eddy County), led Apache s production growth. Deadwood, Barnhart and the SMB remained the top three areas in terms of production contribution. APACHE PERMIAN REGION ACREAGE AND KEY PLAYS 6

9 Permian (Continued) PERMIAN WELL HIGHLIGHTS PLAY/TARGET WELL NAME COUNTY, ST TVD LATERAL IP (30-Day) Shackleton 31W 3H Glasscock, TX 8,495 5, Boe/d* Lumberjack 32 3H Glasscock, TX 7,652 4, Boe/d Wolfcamp Shale Clinch 4238 H83M Irion, TX 7,270 8, Boe/d SS 5657 H11U Irion, TX 6,795 7, Boe/d CC 3732 HM Upton, TX 9,673 5, Boe/d CC 3726 HM Upton, TX 9,653 6, Boe/d Bone Springs CBP (Strawn/Penn) Robin 8 #104H Reeves, TX 10,670 4, Boe/d Robin 8 #105H Reeves, TX 10,700 4, Boe/d Augusta Barrow #1414 Ector, TX 10,658 VERTICAL 413 Boe/d* Augusta Barrow #1415 Ector, TX 10,675 VERTICAL 543 Boe/d* CBP (Penn/Wolfcamp) Bakke Unit #180 Andrews, TX 9,507 VERTICAL 482 Boe/d* CBP (Atoka) King 59 #1 Crane, TX 8,041 VERTICAL 431 Boe/d* * Less than 30-day rate. 7

10 Permian (Continued) WOLFCAMP SHALE Reagan County (Southern Midland Basin): During the quarter, 11 wells were drilled at Scottish Rite Hospital (SRH) with three drilling rigs primarily targeting the Upper and Middle Wolfcamp sections. These wells will be completed in the fourth quarter of 2014 and first quarter of A 288 square mile 3D acquisition was completed during the third quarter that covers all of SRH, along with several other properties. This additional data will allow for optimization of landing zones targeting fractures and favorable amplitude extractions. Upton County: In the Powell-Miller area of Upton County, eight previously drilled wells were completed during the third quarter. The CC 3732 HM and CC 3726 HM, were drilled to depths just over 9,600 feet and laterally to over 5,000 feet and demonstrated strong 30-day IPs of 553 Boe/d and 547 Boe/d, respectively. Irion County: The Barnhart area of Irion County remained extremely active ending the third quarter with seven rigs. 21 wells were spud with most of the drilling centered on the Scott Sugg West Unit. During the quarter two wells were successfully drilled into the Upper and Middle Wolfcamp delineating the northwest corner of our Barnhart area, which will be further exploited in Glasscock County: The Shackleton 31W 3H, located in the western-most position of the Deadwood acreage, tested at a 30-day average rate of 886 Boe/d. CENTRAL BASIN PLATFORM (CBP) Horizontal activity in the CBP centered on drilling Grayburg wells in Crane County and the testing of multiple other formations. In the North Monahans area, we ramped to two rigs in Penn/Strawn play with plans to increase to four. 8

11 Permian (Continued) DELAWARE BASIN During the quarter three rigs drilled in Pecos Bend and the Waha area. In Pecos Bend, six wells were spud: five in the 3 rd Bone Springs and one in the Wolfcamp formation. The Robin 8 #104H (3 rd Bone Springs) came online and reached a 30-day average IP rate of 972 Boe/d. 9

12 Central Third-quarter 2014 production averaged 90,760 Boe/d. Production increased 1 percent quarter over quarter. Liquids now constitute 52 percent of production (oil is 25 percent), up from 51 percent in the second quarter of For the quarter, Apache averaged 31 drilling rigs and drilled 70 gross wells focusing primarily on the Granite Wash and Cleveland plays. CENTRAL KEY STATS 3Q Production: 90,760 Boe/d (52% Liquids) 3Q Wells: 70 gross, 46 net 3Q Rigs: Avg 31 rigs APACHE CENTRAL REGION ACREAGE AND KEY PLAYS 10

13 Central (Continued) CANYON LIME/CANYON WASH Apache continued to advance the Canyon Lime play in the Texas Panhandle. During the third quarter, Apache averaged two rigs and exited the quarter with four rigs in the play. These wells will be completed in the fourth quarter of 2014 and the first quarter of CENTRAL WELL HIGHLIGHTS PLAY/TARGET WELL NAME COUNTY, ST TVD Lateral IP (30-Day) (% Liquids) Cleveland Humphreys Trust #1H Hemphill, TX 9,024 6,971 2,197 Boe/d (41%) Shaw H Roger Mills, OK 10,080 3,396 1,247 Boe/d (26%) Cottage Grove Jim H Roger Mills, OK 10,165 3,911 1,047 Boe/d (83%) McMordie 89 #6-89H PUD Roberts, TX 9,283 4,034 1,833 Boe/d (20%) Granite Wash Jill 54 #10-54H PUD Wheeler, TX 13,295 5,076 1,654 Boe/d (31%) Stiles 1 #20-1H Wheeler, TX 13,407 4, Boe/d (22%) Hostutler 9055HR Hemphill, TX 10,922 8, Boe/d (20%) Marmaton Shelf Bessie #2H PUD Roger Mills, OK 9,355 3,842 1,208 Boe/d (54%) Russell H PUD Roger Mills, OK 11,300 3,971 1,541 Boe/d (15%) 11

14 Gulf Coast Third-quarter 2014 production averaged 29,107 Boe/d, down 1 percent from the second quarter of 2014 due to an asset sale of approximately 3,000 Boe/d on average for the second quarter in South Texas. This was partially offset by new production in the East Texas Eagle Ford. GULF COAST KEY STATS 3Q Production: 29,107 Boe/d (53% Liquids) 3Q Wells: 19 gross, 14 net 3Q Rigs: Avg 10 rigs For the quarter, Apache operated an average of eight rigs in the East Texas Eagle Ford and two rigs in South Louisiana for a total of ten operated rigs. Additionally, there were two non-operated rigs operating in the Eagle Ford during the third quarter. By the end of the quarter, Apache had 10 operated rigs drilling horizontals in the East Texas Eagle Ford area, with plans to add an eleventh in November. APACHE GULF COAST REGION ACREAGE AND KEY PLAYS 12

15 Gulf Coast (Continued) EAST TEXAS EAGLE FORD Apache continued to delineate its East Texas Eagle Ford play, primarily in Brazos and Burleson Counties, with consistently strong results. Apache brought on six wells in the Reveille area with an average 30- day IP of 687 Boe/d. In the Brazos Riverside area, four wells were brought on line in the third quarter: the Joe Stetz 1H and 2H and the Batey-Porterfield 1H and 2H. During the third quarter, Apache spud 29 wells including wells on four pads in the Ferguson Crossing area, two pads in the Brazos Riverside area, one pad in the TAMU/Reveille area, one pad in the Remington area, and one delineation well spud in Lee County. GULF COAST WELL HIGHLIGHTS PLAY/TARGET WELL NAME TVD Lateral Length IP (30-Day) Reveille #14 9,741 8, Boe/d Reveille #8 9,236 6, Boe/d Reveille #10 9,224 5, Boe/d Eagle Ford Reveille #9 9,244 6, Boe/d Joe Stetz 1H 8,661 5, Boe/d Joe Stetz 2H 8,679 4, Boe/d Batey-Porterfield 2H 8,989 5, Boe/d 13

16 Canada Third-quarter 2014 production, which includes Kitimat upstream production, averaged 73,187 Boe/d. Total production was down 5 percent from the second-quarter 2014 due to the closing of the previously announced sale of the Ojay, Noel and Wapiti areas in Alberta and British Columbia on April 30, 2014, planned spring break-up season and third-party downtime. The production associated with the downtime is now online. CANADA KEY STATS* 3Q Production: 73,187 Boe/d (31% Liquids) 3Q Wells: 25 gross, 20 net 3Q Rigs: Avg 8 rigs These divestitures were primarily dry gas-producing properties comprising 622,600 gross acres (328,400 net acres). In the Wapiti area, Apache retained 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 divested averaged 101 MMcf/d of natural gas and 1,500 Bbls/d of liquid hydrocarbons. Apache exited the quarter with eight rigs running including: one in the Wapiti area targeting the Montney, two rigs in the Kaybob area targeting the Duvernay, three additional rigs in the Kaybob area targeting the Bluesky formation, and the remaining two in the Kitimat area. This is up from one in the previous quarter due to the planned spring break-up season. Apache spud initial wells at the Duvernay seven well pad and drilled the first well at the Montney two well pad. APACHE CANADA REGION ACREAGE AND KEY ASSETS *Includes Kitimat Upstream. 14

17 Gulf of Mexico Third-quarter 2014 production averaged 10,090 Boe/d, down 15 percent from second quarter due to expected natural field declines. During the third quarter, Bushwood reached a total rate of 26 MMcf/d and continues to produce at the same rate. GULF OF MEXICO 3Q Production: 10,090 Boe/d (68% Liquids) 3Q Wells: 0 gross, 0 net 3Q Rigs: Avg 1 rig APACHE GULF OF MEXICO REGION ACREAGE POSITION Bushwood 15

18 INTERNATIONAL Australia Third-quarter 2014 production averaged 55,578 Boe/d, up 12 percent from second quarter 2014 as a result of the successful commencement of production at Balnaves oil development. During the quarter, Apache operated two semi-submersible drilling rigs and drilled the second tri-lateral development well at Coniston and the oil discovery on Phoenix South 1 exploration well. AUSTRALIA KEY STATS 3Q Production: 55,578 Boe/d (40% Liquids) 3Q Wells: 5 wells, 2 net 3Q Rigs: Avg 2 rigs APACHE AUSTRALIA REGION ACREAGE AND KEY PROJECTS 16

19 AUSTRALIA (CONTINUED) BALNAVES (65 PERCENT APA) The Armada Claire FPSO completed the final hook-up and commissioning activities and commenced oil production from the Balnaves field in August Current net production at Balnaves is 18,300 Boe/d (as of October 2014). NINGALOO VISION UPGRADE PROJECT AND CONISTON DEVELOPMENT (52.5 PERCENT APA) Development drilling on the Coniston oil development continued during third quarter with the completion of its second tri-lateral development well. Apache has now successfully drilled ten of the 17 well laterals. Scheduled maintenance and upgrade work for Coniston continued during the quarter on the Ningaloo Vision FPSO in the shipyard dry-dock. Offshore installation work required for the Coniston development was completed during the third quarter. Resumption of oil production from the Van Gogh field and first oil from Coniston is expected in the second quarter

20 Egypt Third-quarter gross production averaged 345,708 Boe/d, 2 percent lower than the previous quarter. Lower productionquarter over-quarter resulted from minor technical challenges. Natural gas production declined during the third quarter due to three partial shutdowns at the Shell-operated Obaiyed Gas Plant. Apache averaged 27 rigs during the third quarter and drilled a total of 63 gross (54 net) wells. Khalda Area: EGYPT KEY STATS* 3Q Gross Production: 345,708 Boe/d Liquids: 197,143 Bo/d Gas: 891,392 Mcf/d 3Q Wells: 63 gross, 54 net 3Q Rigs: Avg 27 rigs Apache continued its active exploration program and appraisal drilling campaign in Egypt. Khalda remains on pace to drill 37 exploration wells for the year with 10 reaching total depth and eight classified as discoveries with logged pay in the quarter. Two of these tested favorably and the remaining eight are awaiting tests. At the close of the third quarter, five wildcats were drilling across Khalda-operated properties in the Shushan, Matruh and Alamein Basins. One of these wells is an offset to the GEB-1X well which previously tested 509 Bo/d and 9.9 MMcf/d from the Paleozoic Shifah formation. Notable tests in the third quarter included Azurite-1X located in the Ras Kanayes B Concession. The well penetrated the Safa and AEB reservoirs on an inversion structure in the vicinity of the Ras Kanayes and Emerald fields. It reached a total depth at 15,242 feet and encountered pay in the AEB-5B, AEB-3G, and AEB- 3E. Minor pay was also found in the Safa formation. Initial tests recorded 1,387 Bo/d and 2.2 MMcf/d on 64/64 choke with wellhead pressure 330. The AG-121X, located in the Abu Gharadig Basin in WD30, reached a total depth of 12,123 feet and recorded a total net pay of 38.5 feet with 8.5 feet, 22 feet and 8 feet respectively in the ARE, ARG and Bahariya formations. The Alamein Basin and Khalda Ridge/Sushan Basin saw the highest level of development drilling activity with seven wells drilled in each area. The North Razzak field delivered significant results. The NRZK-15 logged 41 feet of oil pay in the Alamein reservoir. This well follows the NRZK-9 and NRZK-12 wells which initially tested at a rate of 3,481 and 2,208 Bo/d, respectively. Located on the flank of the field, the NRZK-15 well confirms that the crestal producers have incompletely drained the four-way structure and potential remains. The Qasr Compression Project continues to make progress with approximately 90 percent of the estimated schedule completed. Site construction works for the compressor area and associated equipment are ongoing with a planned completion date during the first half of Qarun Area: Apache continued its active development program in Qarun as it ran seven rigs during the quarter and drilled 26 wells, including 3 water injector wells. Year-to-date 2014, 78 wells have been drilled by the Qarun team resulting in a 96 percent success rate. Also, three additional WON exploration prospects were identified in the Ancestral Nile trend area during the third quarter and permitting activities have commenced to move forward the leads. *Includes noncontrolling interest. 18

21 Egypt (Continued) EGYPT WELL HIGHLIGHTS PLAY/TARGET WELL NAME IP (30-Day) Abu Roash E Meghar-08 3,192 Boe/d Paleozoic Apries-01X Siwa 2 L3 2,982 Bod/d 1,730 Boe/d AEB 5 Azurite-01X 2,084 Boe/d A. Dolomite MRZK-131 1,680 Boe/d APACHE EGYPT REGION ACREAGE AND KEY BASINS 19

22 Egypt (Continued) Liquids (Bbls/d) EGYPT PRODUCTION DETAIL 3Q Q 2014 Gas (Mcf/d) Boe/d Liquids (Bbls/d) Gas (Mcf/d) Boe/d Gross Production 197, , , , , ,059 Net Production With Tax: Apache Share 58, , ,585 59, , ,606 Noncontrolling Interest 29, ,020 50,613 29, ,665 50,247 Total Net Production With Tax 88, , ,198 89, , ,853 % of Gross 44.8% 42.4% 43.7% 44.8% 40.5% 43.0% Total Tax Barrels 21,107 87,747 35,731 24,183 95,115 40,036 Net Production Without Tax: Apache Share 44, ,320 76,764 43, ,791 73,871 Noncontrolling Interest 22,407 97,771 38,703 21,771 91,044 36,946 Total Net Production Without Tax 67, , ,467 65, , ,817 % of Gross 34.0% 32.5% 33.4% 32.7% 30.1% 31.6% 20

23 North Sea Third-quarter 2014 production averaged 64,982 Boe/d, down 10 percent from the second quarter due to annual maintenance turnaround activities across all operated assets. During the third quarter, Apache operated an average of five drilling rigs and drilled four gross (four net) wells with a 100 percent success rate. NORTH SEA KEY STATS 3Q Production: 64,982 Boe/d (87% Liquids) 3Q Wells: 4 gross, 4 net 3Q Rigs: Avg 5 rigs In Forties, the T5 well encountered 138 feet of stacked net oil pay and achieved an initial 30-day production rate of 2,246 Bo/d and the T248 achieved an initial 30-day production rate of 3,135 Bo/d. The Forties Alpha Satellite Platform (FASP) was commissioned and the first drill at the T240 well encountered 75 feet of net oil pay and achieved an initial production rate of 2,728 Bo/d over the first 23 days of production. During the quarter, we completed full field Forties TAR and SSIV installation successfully and ahead of schedule. * Less than 30-day rate. NORTH SEA WELL HIGHLIGHTS PLAY/TARGET WELL NAME IP (30-Day) Forties T248 FD1-2 3,135 Bo/d Forties T240 FASP11 2,728 Bo/d* Forties T5 FA1-4 2,246 Bo/d Beryl BLN B77 1,596 Boe/d APACHE NORTH SEA REGION ACREAGE AND KEY PROJECTS 21

24 Supplementary Financial Data Debt Bridge $14,000 2Q 2014 to 3Q 2014 $12,000 $10,000 $2,221 $567 $525 $476 $199 $177 $9 $2,073 $9,867 $8,000 $7,784 $6,000 $4,000 $2,000 $0 Net Debt 6/30/14 (1) (1) E&P + GTP Investment Share Buyback Leasehold & Property Acquisitions Wheatstone & Kitimat Dividends & Other Working Capital Asset Sales Cash Flow From Ops Net Debt 9/30/14 (1) Net Debt equals total debt less restricted and unrestricted cash. 22

25 Oil and Gas Capital Investment 3Q14 (1) YTD 2014 (1) E&P and GTP Investment: Permian... $ 813 $ 2,356 Central ,175 Gulf Coast Canada N.A. Onshore... 1,603 4,487 Gulf of Mexico Other... (22) (6) North America... 1,623 4,728 Egypt (Apache's interest only) (2) Australia North Sea Other... 1 (7) $ 2,179 $ 6,601 Leasehold and Property Acquisitions: North America... $ 522 $ 628 International (2) $ 524 $ 651 Wheatstone & Kitimat Investment: Wheatstone... $ 325 $ 880 Kitimat (3) $ 476 $ 1,369 (1) (2) (3) Third quarter and YTD 2014 adjustments to total Costs Incurred and GTP Capital Investments: Includes capitalized G&A expense of $100 million and $291 million, respectively. Excludes capitalized interest of $85 million and $270, respectively. Excludes Argentina Capital Costs of $15 million incurred in the first quarter. Third quarter and YTD 2014 excludes noncontrolling interest share in Egypt of $116 million and $339 million, respectively. Third quarter and YTD 2014 includes Pacific Trail Pipelines equity method investment of $15 million and $44 million, respectively, for Kitimat. 23