Investor Presentaiton
PERMIAN GAS MARKETING
Apache Well Positioned in 2018-2019
100% of Permian gas production outside of Alpine High covered by sales contracts or firm
transport to the Gulf Coast.
Provides flow assurance and mitigates oil shut-in risk
25% to 30% of projected Alpine High gas production linked to Gulf Coast index pricing 1
70% to 75% of projected Alpine High gas production linked to Waha/Permian index pricing 1
Attractive hedges (~$.50/Mcf Waha basis), mitigate basis risk on significant portion of volumes
Every $.25/Mcf increase in Waha/Permian index basis results in an approximate $20 million and
$30 million decrease in 2018 and 2019 cash flow, respectively 2
1
Assumes GCX pipeline in-service on Oct. 1, 2019
2
2018 budget based on NYMEX gas price of $2.80 per Mcf and Waha basis differential of $0.75 per MMBtu
Apache
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