Building for the Future

Building for the Future

FORWARD-LOOKING STATEMENTS 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 expects, believes, anticipates, projects, guidance, outlook, and similar phrases. 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, 2017, available from Apache at www.apachecorp.com or 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 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 first quarter 2018 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

CREATING LONG-TERM VALUE Disciplined Financial Approach Strategically Balanced Portfolio Full-Cycle, Corporate- Level Returns Focus Preserve dividend and credit rating, reduce debt; no equity dilution Pursue scalable, low entry-cost opportunities to drive long-term value and returns growth Invest for returnsfocused growth in Permian Basin Continue to generate strong free cash flow in Egypt, North Sea and other Lower 48 Maintain rigorous capital allocation and planning process Base investment decisions on fullyburdened economics 3

APACHE TODAY UNITED STATES Permian driving growth & returns Optionality in SCOOP/STACK & Eagle Ford EGYPT Significant free cash flow preparing for next leg of growth NORTH SEA High margins, high returns, free cash flow SURINAME High impact SURSINEMA oil exploration Streamlined Portfolio 4

UNITED STATES Onshore Focus Permian-driven growth & returns ~70% of capital budget over next 3 years United States Onshore Optionality outside Permian SCOOP / STACK: ~45,000 net acres Eagle Ford: ~250,000 net acres 350-370 250-258 285 285-300 206 2017A 2018E 2019E 2020E 5

INTERNATIONAL BUSINESSES Investing to Sustain Cash Flow Generation with Future Potential Egypt UK North Sea Largest oil producer MEDITERRANEAN SEA Best-in-class operator Running 14 rigs Expanding opportunity set New concessions awarded 3 rigs operating (2 platform, 1 semi-submersible) Expiring high-cost rig contract New broadband seismic Egypt Production (Adjusted) Mboe/d 103 101 98 90 88 89 87 82 80 Forties: oil prone, stable profile North Sea Production Mboe/d Beryl: exploratory upside 70 71 62 70 58 55 60 58 54 Long-term presence and strong operational track record 6

STRATEGIC OBJECTIVES 2018 AND BEYOND INTERNATIONAL Sustain Free Cash Flow Capacity from Egypt & North Sea ALPINE HIGH Execute Joint Venture for Alpine High Midstream in 2018 Transition to Full-Field Development at Alpine High APACHE GLOBAL Develop & Accelerate Energy Technology Strategies Continually Assess & Actively Manage Portfolio Achieve Long-Term, Sustainable Double-Digit ROCE 7

APPENDIX 8

APACHE S STRATEGIC APPROACH: 2018-2020 Financial Discipline Maintain strong balance sheet; protect capital program Target living within cash flow Relentless cost focus Portfolio Expand and high-grade Permian inventory Sustain International free cash flow generation Strategic transaction for Alpine High midstream Returns Focus Long-term, corporate-level returns Growth as an outcome of returns-focused investment Technology and big data focus to improve capital efficiency 9

LEVERAGING TECHNOLOGY Apache s focus on innovation and harnessing the power of data are driving operational improvements and increased capital efficiencies SIMULTANEOUS SEISMIC SOURCES CHARACTERIZING THE SUBSURFACE EXTENSIVE WATER RECYCLING TECHNOLOGIES STIMULATION INSIGHTS REMOTE OPERATIONS CENTERS DATA ANALYTICS EXTENSIVE RESERVOIR MODELING DRILLING INTELLIGENCE 10

PERMIAN BASIN Returns-Focused Growth Midland & Delaware Basins Efficiencies driving shorter cycle times and lower costs Expanding inventory with strategic testing Alpine High Production ramping, well costs decreasing Investing in value-adding processing & transportation Mboe/d Production & Rig Count Avg Rig Count 160 165 159 149 148 146 161 177 183 30 25 20 130 100 13 17 17 16 16 4 5 7 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 15 10 5 0 1.6 MM Net Acres in the Permian Basin 11

MIDLAND AND DELAWARE BASIN OIL PRODUCTION Quarterly Progression Consolidating and accelerating 2015/2016 learnings Increased efficiencies and operating performance Multi-well pads / longer laterals Key Focus Areas Midland & Delaware Basin Oil Production Mbo/d 55 55 46 40 Pecos Bend Dixieland Wildfire Powell Azalea Alpine High 2Q17A 3Q17A 4Q17A 1Q18A 12

2018 PERMIAN BASIN OIL POSITIONING Production Flow Risk Price Exposure Term Sales 38% Diversified Evergreen Sales 32% West Texas Sour 30% GC/Cushing Based 38% Midland Based 62% Term sales backed by customers firm transport West Texas Sour less subject to oversupply and takeaway capacity constraints than WTI Contracts provide various options for higher of Gulf Coast/Cushing/Midland pricing Midland basis hedging initiated in 2Q 2018 Diversified evergreen sales represent agreements with multiple buyers across multiple systems (1) (1) Consists of approximately 22 contracts with 10 counterparties of varying term lengths; subject to cancellation, but only with a minimum of 30 days notice 13

2018 PERMIAN BASIN GAS POSITIONING Production Flow Risk Price Exposure Uncommitted Production 9% Contracts / Dedicated Sales 82% Firm Transport 9% EP Perm / Waha Index 64% Firm Transport 9% Other Basin 7% Basis Hedges 20% Firm transport and other basin-based contracts generally access Gulf Coast pricing Waha basis hedges average approximately $0.50 per MMBtu for 2018 14

ALPINE HIGH 15

ALPINE HIGH: UPSTREAM Developing a World-Class Wet Gas Play Unprecedented hydrocarbon column up to 6,000 ft. Vertically stacked oil, wet gas and dry gas fairways Scale ~340,000 contiguous leasehold acres 5,000+ locations identified to date Large operated position / economies of scale Execution Strategically positioned to deliver NGLs and gas in scale to the Gulf Coast Achieved key production milestones and targets Economics Highly economic wet gas play; proven oil upside Liquids uplift combined with low F&D and operating costs strong recycle ratios 16

SIGNIFICANT INDUSTRY ACTIVITY INCREASE FOLLOWING ALPINE HIGH ANNOUNCEMENT September 2016 May 2018 WARD CULBERSON REEVES PECOS 20 Miles JEFF DAVIS Drilled/ Drilling Count: 157 Current Permit Count: 63 Total well count: 220 20 Miles Miles 0 5 10 20 BREWSTER APA Operated Rig PRESIDIO Competitor Permit Wells Competitor Wells Drilled/Drilling Apache Acreage Outline Source: Drilling Info. 17

Source Rock Parasequences DISTINCT SOURCE ROCK AND PARASEQUENCE INTERVALS High frequency, rapidly rising and falling sea level environment 3 rd BONE SPRINGS WOLFCAMP UNCONFORMITY PENNSYLVANIAN Tranquil marine environment, gradually rising worldwide sea level conditions BARNETT WOODFORD DEVONIAN ORGANIC SHALE PARASEQUENCE CARBONATE DEBRIS FLOW ORGANIC SHALE Woodford + Barnett + Penn Thick, laterally continuous deposition Oil, wet gas and dry gas windows Minimal in-situ water Indigenous, organic shale 3 rd Bone Springs + Wolfcamp Higher variability with sweet spots Oil and wet gas windows Water wet rock Indigenous shale and migrated hydrocarbons 18

STRUCTURAL CROSS SECTION OF ALPINE HIGH NORTHERN FLANK CREST SOUTHERN FLANK Evaporites 7,500 Transgressive Parasequences 8,500 OIL 9,500 10,500??? 8720 9210 9700 9420 9130 10100 9760 10460 9925 10820 10215 10050 Transgressive Source Interval 11,500 WET GAS 1160 12,500 Devonian High Stand 13,500 13270 13370 13970 DRY GAS ~60 miles Note Vertical and horizontal scales are not equivalent. 19

Transgressive Source Interval Transgressive Parasequences CURRENT LOCATION COUNT OF 5,000+ Location Distribution Formation Wet Gas Dry Gas Oil Bone Spring Wolfcamp Pennsylvanian Additional Location Potential Additional Location Potential 500+ Barnett Woodford 3,500+ 1,000+ Additional Location Potential 20

NORTHERN FLANK DEVELOPMENT EXAMPLE 21

ALPINE HIGH: MIDSTREAM Foundational Delaware Basin Midstream Enterprise Cherokee CPF Greenfield, fit-for-purpose system enables optimal wet gas development ~$815 mm invested through first quarter 2018 Actively working design and procurement for three 200 MMCF/D cryogenic plants Evaluating midstream funding options 5 CENTRAL PROCESSING FACILITIES 780 MMCF/D PROCESSING CAPACITY INSTALLED 45 MILES OF 30 TRUNKLINE IN SERVICE 121 MILES OF GATHERING SYSTEMS INSTALLED 34 CENTRAL TANK BATTERIES 22

ACCESS TO SALES LINES WITH ~4 BCF PER DAY OF CAPACITY Constructing ~70 Miles of 30 Trunkline Through the Play Northern Sales Connection 1 2 Trunkline segments 1, 2 and 5 in operation today Segments 3 and 4 in service around mid 2018 3 4 5 Southern Sales Connection Source: Map not built to scale, general depiction of trunkline pathway. 23

WET GAS PLAY: FULLY BURDENED ECONOMICS Development Scenario (4,400 Lateral) Typical Well Upper Range Well Single Well Economic Assumptions: Note: end points shown for EUR, NPV, Product Prices: $50 WTI / $3.00HH / NGL = 60% WTI Mix and Well Costs are ranges and may not Waha basis = $0.35/MMbtu; midstream fee = $0.93/Mcf correlate directly when read in a column NGL yields and midstream fees assume cryogenic processing. Economics include overhead, workover, abandonment and E&P facility burdens. 24

RAMPING A LARGE-SCALE GREENFIELD PLAY 4Q 18 Outlook Today Versus a Year Ago Reservoir and well performance continues to be very strong Proven oil potential Some volume ramp deferred due to less capital and fewer wells in 2017/2018 Deliberate, strategic changes to the program Shift to multi-well pads / patterns, midstream integration, shifting some dry gas wells to wet gas Increased investment in science, testing and delineation, which deferred some development Other factors reflected in current outlook Cost inflation higher today Surface use and right-of-way agreement delays; equipment delivery and construction delays 25

RAMPING A LARGE-SCALE GREENFIELD PLAY Comparison of Feb. 17 and Feb. 18 Alpine High Outlook Previous 4Q 18 production target shifted to 2H 2019 ~37% fewer wells online at year-end 2017 than previously expected, 42 versus 70 ~23% fewer new wells planned in 2018, resulting in 50 fewer wells producing at year-end 2018, approximately 140 versus 190 Reduced 2018 D&C and facilities budget by ~$140 million and average rig count by 1.5 Increased average well cost assumption from $5.7 million to $6.2 million for cost inflation Replaced higher Boe/d dry gas wells with higher margin, lower Boe/d wet gas wells. Trading gas Boe s for oil and NGL barrels 26

ALPINE HIGH Middle Permian Paleostructure Map Critical Aspects Regional anomaly Stable Devonian shelf Subsiding eastern limb Later thrust of Davis Mountains 1 0 M i l e s 27

PALEOGEOGRAPHIC RECONSTRUCTION Woodford Time Same geologic age as Arkoma Woodford and SCOOP / STACK Similar depositional environment 28

GEOLOGY OF THE SOUTHERN DELAWARE BASIN IMMATURE South West Alpine High North East 5,000 Evaporites 10,000 OIL Bone Springs / Wolfcamp Penn / Barnett / Woodford Bone Springs / Wolfcamp WET GAS 15,000 20,000 25,000 DRY GAS Alpine High: Stable shelf (Paleo high) Prospective section in the wet gas and oil window Thermal maturation controlled by depth of burial Low clay content and low ductility 30,000 15% CLAY CONTENT 40% 29

Wet Gas TRANSGRESSIVE SOURCE INTERVAL TRANSGRESSIVE SOURCE INTERVAL Oil TRANSGRESSIVE PARASEQUENCES TRANSGRESSIVE PARASEQUENCES 4,000-5,000 OF STACKED POTENTIAL PAY MONT BLANC 1H SPANISH TRAIL 1H 20 Miles Delaware Basin Stratigraphy Brushy Canyon Penn Barnett/Miss Lime Woodford Devonian Oil Wet Gas 30

DIVIDING ALPINE HIGH INTO THREE SETTINGS ~56% of Alpine High acreage ALPINE HIGH FAIRWAY Northern Flank Activity driven primarily by lease expiration Over-pressured Initiated parasequence testing Crest ~16% of Alpine High acreage Moderately over-pressured Currently mapping parasequences ~28% of Alpine High acreage Southern Flank Over-pressured Cooler temperature regime Currently mapping parasequences Concept Test Parasequence Oil TSI Wet Gas TSI Dry Gas 31

WATER RATE COMPARISON Alpine High Source Rock Versus Pecos Bend Area Water Rate, BWPD 10,000 1,000 100 10 1 10 100 1,000 Producing Time, Days Alpine High Water Production Pecos Bend Wolfcamp/Bone Springs 32

INTERNATIONAL 33

EGYPT Preparing for Future Growth New concessions expand acreage position by 40 percent (1.6 million acres) Drilling program expected to commence in the second half of 2018 Apache Egypt Acreage MEDITERRANEAN SEA High-density seismic program (2.6 million acres) 3-D survey covers 4 basins; ~ 30% complete State-of-the-art technology provides improved fault definition and enhanced deep imaging 34

STATE OF THE ART 3-D Dramatic Improvement in Sub-Surface Imaging 2013 Vintage Seismic 2018 Vintage Seismic 35

NORTH SEA High Margins, High Returns, Free Cash Flow Strong leverage to premium Brent crude pricing Multi-year inventory of near-field exploration targets Forties: Oil prone, stable production Beryl: Exploratory upside Garten discovery 10+ million barrels of light oil Quick tieback initial production 1Q 2019 36

NORTH SEA: GARTEN Large Commercial Discovery in Beryl Area North Sea Beryl Area Garten discovery well encountered more than 700 of net oil pay in Block 9/18a Area-W Recoverable resource is expected to exceed 10 million barrels of light oil Apache holds a 100% working interest Drilling, completion, and tieback costs are estimated at $60 million Future producer tied back to the Beryl Alpha platform, 6 kilometres north Initial production anticipated during the first quarter of 2019 Apache s fourth commercial exploration discovery in the Beryl area in the past three years 37

SURINAME: HIGH IMPACT OIL EXPLORATION Massive acreage blocks near proven oil province Block 58 seismic processing complete, identifying and ranking prospects Exploration well to spud on Block 58 by year-end 2019 Block 58 Block 53 1.44 MM acres 0.87 MM acres 38

GUIDANCE 39

UNITED STATES PRODUCTION OUTLOOK 2018 Production Guidance Update (Mboe/d) Raised lower end by 5 Mboe/d Raised upper end by 3 Mboe/d 1Q18 exceeded guidance by 9 Mboe/d (+4%) Established 2Q18 guidance of 248 Mboe/d 258 250 248 232 FY18E 1Q18A 2Q18E Note: Includes Permian Basin, Mid-Continent/Gulf Coast, and Gulf of Mexico regions. 40

INTERNATIONAL PRODUCTION OUTLOOK 2018 Production Guidance Update (Mboe/d) Unchanged 1Q18 in line with guidance Established 2Q18 guidance of 135 Mboe/d 140 135 135 130 FY18E 1Q18A 2Q18E Note: Includes adjusted production for North Sea & Egypt. This excludes production attributable to Egypt tax barrels and noncontrolling interest. 41

APA ADJUSTED PRODUCTION OUTLOOK 2018 Production Guidance Update (Mboe/d) Raised lower end by 5 Mboe/d Raised upper end by 3 Mboe/d 1Q18 exceeded guidance by 9 Mboe/d (+3%) Established 2Q18 guidance of 383 Mboe/d 398 383 380 367 FY18E 1Q18A 2Q18E Note: Excludes production attributable to Egypt tax barrels and noncontrolling interest. 42

APA ADJUSTED PRODUCTION AND RETURNS 2018-2020 Outlook (Mboe/d) 475-510 350 380-398 410-440 18% CROIC 20% CROIC 22% CROIC 2017A 2018E 2019E 2020E See Glossary of Referenced Terms in Appendix for a definition of Cash Return on Capital Invested (CROIC) 43

PERMIAN PRODUCTION 2018-2020 Outlook (Mboe/d) 315-335 245-260 195-205 158 2017A 2018E 2019E 2020E 44

ALPINE HIGH PRODUCTION 2018-2020 Outlook (Mboe/d) 160-180 85 85-100 40-50 9 2017A 2018E 2019E 2020E 45

INT L ADJUSTED PRODUCTION 2018-2020 Outlook (Mboe/d) Shallow Decline 144 130-140 125-140 125 140 2017A 2018E 2019E 2020E Note: Adjusted production excludes Egypt tax barrels and noncontrolling interest. Comprises North Sea and Egypt production. 46