Apache : Third-Quarter 2019 Financial and Operational Supplement

Third-Quarter 2019

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.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 earnings supplement, 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 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," "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, 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 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 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, 2018 available from Apache at www.apachecorp.comor 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 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 Apache's third quarter 2019 earnings release at www.apachecorp.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. Apache may elect to modify the format or discontinue publication at any time, without notice to securities analysts or investors.

2

3Q 2019 Key Metrics

			3Q 2019
	Reported Production		451 Mboe/d
	Adjusted Production(1)		391 Mboe/d
	Cost Incurred in Oil and Gas Property		$646 Million
	Upstream Capital Investment(2)		$590 Million
	Net Cash Provided by Operating Activities		$635 Million
	Adjusted EBITDAX(2)		$905 Million
	Earnings Per Share		($0.45)
	Adjusted Earnings Per Share(2)		($0.29)
(1) Excludes production attributable 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.

3

Highlights

On trackto meet 2019 upstream capital

investment budget of ~$2.4 billion

At current strip, anticipate 2020 budget

10 - 20% below2019 upstream capital investment

2ndGarten well in North Sea encountered	Drilling 1stWell
~1,200 feet of net pay

Significantly exceeded	Offshore Suriname
pre-drill estimates	Block 58

Adjusted production of

391 MBOE/D

Exceeded guidance of 373 - 383 Mboe/d

Operational & organizational initiatives

targeting annual cost savings

of at least $150 million

4

Permian Oil Production

2019 Production Guidance Update (Mbo/d)

• 4Q'19E approximately 100 Mbo/d (lower end of prior guidance range)
• • Combination of unplanned downtime, delay in completions and well maintenance timing

				99	98		95	100
				92
		90	90
	85
85
4Q'17	1Q'18	2Q'18	3Q'18	4Q'18	1Q'19	2Q'19	3Q'19	4Q'19E
4Q'17	1Q'18	2Q'18	3Q'18	4Q'18	1Q'19	2Q'19	3Q'19	4Q'19E

5

Alpine High Production

2019 Production Guidance Update (Mboe/d)

• Reduced 4Q guidance by 5% due to reduced activity and lower than expected production from our recent Blackfoot pad

120	•4Q guidance assumes no deferrals and 100% ethane recovery
100					94 - 96
80		70		76
60	58		49
40
20			Deferred Production Volume Impact
0	4Q'18	1Q'19	2Q'19	3Q'19	4Q'19E
	'18	1Q'19	2Q'19E	3Q'19E	4Q'19E

6

International Production

2019 Production Guidance Update (Mboe/d)

Quarterly

• No change to prior guidance for 4Q'19 & FY 2019

145
	132		132 - 135
		125
	North Sea Seasonal
		TAR Impact
1Q'19	2Q'19	3Q'19	4Q'19E

Annual

134	133 - 134
2018	2019E

Note: Includes North Sea production and Egypt adjusted production. This excludes production attributable to Egypt tax barrels and noncontrolling interest.

7

3Q Results

8

3Q 2019 Global Portfolio

Balanced Portfolio Aligns Returns Focus & Strategic Objectives

UNITED STATES

265,910 BOE/D

Reported Production

38% / 35% / 27%

Oil / Gas / NGL

48 Gross, 47 Net

Drilled & Completed Wells(1)

10

Avg Rigs

GLOBAL

450,644 BOE/D	51% / 33% / 16%	64 Gross, 63 Net	20
Reported Production	Oil / Gas / NGL	Drilled & Completed Wells(1)	Avg Rigs

	UK North Sea
United States		Egypt
April 2015	JuneSuriname	September 2016

INTERNATIONAL

184,734 BOE/D

Reported Production

70% / 29% / 1%

Oil / Gas / NGL

16 Gross, 16 Net

Drilled & Completed Wells(1)

10

Avg Rigs

(1) Includes operated wells completed but not necessarily placed onto production.

9

3Q Permian Summary

Midland Basin

• Averaged 3 rigs, 2 frac crews and placed 20 wells on production
• Strong results from Lower Cline test well at Azalea (Driver Schrock pad)
• • Average30-day IP: 1,269 Mboe/d (72% oil)
  • Core inventory to expand upon successfulfollow-on tests

Other Delaware Basin

• Averaged 2 rigs and placed 9 wells on production
• Strong results from 2 pads at Dixieland and Palmillo pad in New Mexico

Alpine High

• Averaged 5 rigs, 1 frac crew and placed 15 wells on production
• Average drilling & completions costs per foot down 28% and 41%through end of third quarter, compared to 2017
• 1. Operated wells completed but not necessarily placed onto production.

REGION STATS

254,432 BOE/D

Reported Production

37% / 35% / 28%

Oil / Gas / NGL

47 Gross, 46 Net

Drilled & Completed Wells(1)

10

Avg Rigs

NET PRODUCTION MBOE/D

260		248	254
	222	236	226
220

180

140

100

3Q18

4Q18

1Q19

2Q19

3Q19

10

Well Highlights: Midland Basin

MIDLAND BASIN

M i d l a n d

G l a s s c o c k

1

U p t o n

2

R e a g a n

PAD

FORMATION

AREA

COUNTY

LATERAL

AVG 30-DAY

AVG 30-DAY IP

OIL

(FT)

IP/WELL

BOEPD/1,000 FT

1

Driver Schrock (11 Wells)

Wolfcamp,

Azalea

Midland

7,252

1,037 BOE/D

143

77%

Spraberry, Cline

2

Aldwell (5 Wells)

Wolfcamp

Hartgrove

Reagan

9,939

1,154 BOE/D

116

79%

11

Well Highlights: Other Delaware Basin

OTHER DELAWARE BASIN

4

1, 2, 3

	PAD / WELL	FORMATION	AREA	COUNTY	LATERAL	AVG 30-DAY	AVG 30-DAY IP	Oil %
	(FT)	IP/WELL	BOEPD/1,000 FT
1	Jackson (2 Wells)	Wolfcamp	Dixieland	Reeves	4,615	1,685 BOE/D	367	44%
2	Lee (2 Wells)	Wolfcamp	Dixieland	Reeves	4,568	1,540 BOE/D	336	43%
3	Bragg 407AH	Wolfcamp	Dixieland	Reeves	4,426	1,403 BOE/D	317	48%
4	Palmillo 21 Pad (4 Wells)	Bone Spring	Palm	Eddy	4,568	1,167 BOE/D	255	72%

12

3Q Egypt Summary

REGION HIGHLIGHTS

• Second well brought online in Cobra field (East Bahariya concession)
• • Cobra-2well flowing at 3,000 BOPD from the lower Bahariya formation
  • Follow-upto exploration success (Bolt-150X)
• Matruh BasinBiruni-1X well tested at 5,000 BOPD
• • Currently drilling an offset and have future expansion potential
• Recent exploration successes adds to future production potential
• • Shushan BasinAnti-1X well tested at 47 MMCFD and 1,685 BCPD
  • High quality gas condensate discovery (Barakat Deep - 01X)
  • • Close proximity to new gas infrastructure
    • De-risksnumerous Paleozoic prospects in the area

Well Name	Basin	30-Day Average IP	Oil		Program Success Rate
Berenice 11	Faghur	6,220 Boe/d	99%
Ptah 19	Faghur	2,283 Boe/d	92%		71%
Ptah 31	Faghur	1,969 Boe/d	92%		(10 out of 14)
Herunefer W-13	Matruh	1,555 Boe/d	94%

1. Operated wells completed but not necessarily placed onto production.
2. Excludes tax barrels and noncontrolling interest.

REGION STATS

130,934 BOE/D

Reported Production

64% / 35% / 1%

Oil / Gas / NGL

14 Gross, 14 Net

Drilled & Completed Wells(1)

7

Avg Rigs

ADJUSTED PRODUCTION MBOE/D (2)

100
78	74	79
80	72	72

60

40

20

0

3Q18

4Q18

1Q19

2Q19

3Q19

13

3Q North Sea Summary

REGION HIGHLIGHTS

• Impressive results fromBK-7 well at Buckland
• • Gross rates of over11,500 BOPD(APA 59% WI)
  • Additionalup-hole potential
• 2ndGarten well expected online in late 4Q 2019
• • Contains approximately1,200 feet of net paycompared to 700 feet from initial Garten discovery
  • 1stGarten well currently ~6,400 BOE per day (on production for nearly one year)
• High quality gas condensate well at Storr expected online in November

Well Name	Basin	30-Day	Oil	Working		Program Success
Average IP	Interest		Rate
BK-7	Beryl	11,700 Boe/d	83%	59%		100%

(1) Operated wells completed but not necessarily placed onto production.

REGION STATS

53,800 BOE/D

Reported Production

82% / 15% / 3%

Oil / Gas / NGL

2 Gross, 2 Net

Drilled & Completed Wells(1)

3

Avg Rigs

NET PRODUCTION MBOE/D

100

80

63 6660

60	51	54

40

20

0

3Q18

4Q18

1Q19

2Q19

3Q19

14

Offshore Suriname: High-Impact Oil Exploration

• Block 58 comprises 1.4 MM acres in an active hydrocarbon system
• • Acquired in June 2015, 100% Apache owned
  • 3-Dseismic surveys & processing completed
  • Multiple plays with more than50 significant prospectsmapped to date
• On trend with Exxon's Stabroek block
• • To date > 6 billion barrels of recoverable resource announced
• Apache began drilling first Block 58 well on September 24th(Maka Central #1)
• Exercised option to drill two additional wells with theNoble Sam Croft
• • Expanded exploration phase timeline

Ranger

Stabroek Area

Exxon Discoveries

Pacora
		Payara
	Liza	Yellowtail
Snoek
	Tripletail
Hammerhead	Longtail
		Block 53
		Tilapia	Turbot
			Haimara	0.87 MM Acres*
		Pluma	APA WI: 45%
			Block 58
Guyana			1.44 MM Acres
		APA WI: 100%

Offshore

Suriname

Offshore

*Gross acres

15

3Q 2019 Operating Cash Margins

Brent Oil Price Exposure and Premium NGL / Gas Prices Drives Strong International Margins

$60		Egypt		North Sea		Permian
$50
			$50 / Boe
		$45 / Boe
$40
$35		$33
$30
	Per Boe
		Per Boe			$26 / Boe
$20				$16
			$17 / Boe

Per Boe

$10	$10 / Boe	$10 / Boe

$0

Operating Cash Margin(1)

Avg Realization

Cash Operating Cost

(1) Operating cash margins calculated as price realizations less lease operating expenses, gathering, processing, & transmission costs, and taxes other than income.

16

4Q 2019 Guidance

(1) Excludes dry hole expense and unproved leasehold impairments.

17

2019 Guidance

1. Refer to glossary of referenced terms for definition of Upstream Capital Investment.
2. Represents combination of 100% Altus Midstream Company operating expense and Apache upstream GPT costs.
3. Excludes dry hole expense and unproved leasehold impairments.

(4) Excludes loss on debt extinguishment of $75 million that occurred in 2Q 2019.	18

Appendix

19

Framework for Long-Term Value Creation

BALANCED PORTFOLIO APPROACH

Exploration / Development

Conventional / Unconventional

Oil / Liquids Rich Gas / Lean Gas

OPERATIONAL FLEXIBILITY

Actively Manage Capital Allocation to Reflect Commodity Price Environment

FREE CASH FLOW GENERATION

Capital Discipline, Long-TermReturns-Focused Investment

RETURN OF CAPITAL

Plan for Increasing Returns to Investors - Debt Reduction, Dividends and Share Repurchases

SUSTAINABLE, MODERATE PRODUCTION GROWTH

Prioritize Returns / Growth is an Outcome

EXPLORATION TO PROVIDE LONG-TERM OPPORTUNITY

Suriname / Egypt / North Sea / U.S. Onshore

20

Glossary of Referenced Terms

• Upstream Capital Investment: Includes exploration, development, gathering, processing, and transmission capital, capitalized overhead, and settled asset retirement obligations, and excludes capitalized interest, non-cash asset retirement additions and revisions, and Egypt noncontrolling interest, in each case associated with Apache's upstream business.
• CROIC (Cash Return On Invested Capital): Calculated with the numerator as cash flow from operations before changes in working capital, excluding Egypt noncontrolling interest, with financing costs added back; and the denominator as average debt plus average
  Apache shareholders' equity.
• Net Debt: Total debt (long-term and short-term) less cash and cash equivalents.
• Free Cash Flow: Excess cash flow from operations before working capital changes after upstream capital investment, distributions to noncontrolling interest and dividend payments. The impacts of ALTM are excluded from this definition, as future development of the ALTM midstream assets is expected to be separately funded by ALTM.
• Cash Flow Neutrality: Free Cash Flow equal to zero.

In addition to the terms above, a list of commonly used definitions and abbreviations can be found in Apache's Form 10-K for the year ended December 31, 2018.

21

Upstream Capital Investment

		($ in Millions)		1Q19			2Q19		3Q19
	Permian…….…………………………………..	$	415		$	426		$	388
	MidCon / Gulf Coast….…………………..			18			12			1
	Gulf of Mexico……………………………….			12			16			31
		United States…..…….……………			445			454			420
	Egypt (Apache's interest only)……….			88			71			65
	North Sea………………………………………			62			62			83
	Other …………………………………………....			2			2			22
Upstream Capital Investment Total……………		$	597		$	589		$	590

For a reconciliation of Cost Incurred to Upstream Capital Investment please refer to the Non-GAAP Reconciliations.

22

Open Commodity Derivative Positions

As of October 30, 2019

Oil Basis Hedges

						Weighted
				BBL		Average Price
Production Period		Index		(per day)		Differential
October- December 2019		Midland/WTI	15,000	(3.72)
		Natural Gas Basis Hedges
						Weighted
				MMBtu		Average Price
Production Period		Index		(per day)		Differential
October-December 2019		Waha/NYMEX	40,000	(0.45)

23

Egypt: Production Detail

				2Q 2019						3Q 2019
		Liquids		Gas				Liquids		Gas
		(Bbls/d)		(Mcf/d)		Boe/d		(Bbls/d)		(Mcf/d)			Boe/d
Gross Production		200,374		729,378		321,937		189,118		673,065			301,296
Reported Production		84,659		277,552		130,917		85,005		275,569			130,934
% Gross		42%		38%		41%		45%		41%			43%
Less: Tax Barrels		17,470		37,093		23,652		17,536		35,175			23,399
Net Production Excluding Tax Barrels		67,189		240,459		107,265		67,469		240,394			107,535
% Gross		34%		33%		33%		36%		36%			36%
Less: Noncontrolling Interest		22,397		80,153		35,755		22,490		80,131			35,845
Adjusted Production		44,792		160,306		71,510		44,979		160,263			71,690
% Gross		22%		22%		22%		24%		24%			24%
		2017					2018			2019
MBOE/D	1Q	2Q	3Q	4Q	1Q	2Q		3Q	4Q	1Q		2Q	3Q
Gross Production	328	334	339	334	330	342	338	335	332	322	301
Reported Production	171	162	158	160	154	154	153	136	145	131	131
Adjusted Production	88	89	87	82	80	80	78	74	79	72	72
Brent Oil Benchmark Pricing	$53	$48	$51	$61	$67	$75	$76	$69	$64	$68	$62

24

Non - GAAP Reconciliations

25

Non - GAAP Reconciliation

Adjusted Earnings

Reconciliation of Income Attributable to Common Stock to Adjusted Earnings

Our presentation of adjusted earnings and adjusted earnings per share are non-GAAP measures because they exclude the effect of certain items included in Income Attributable to Common Stock. Management believes that adjusted earnings and adjusted earnings per share provides relevant and useful information, which is widely used by analysts, investors and competitors in our industry as well as by our management in assessing the Company's operational trends and comparability of results to our peers.

Management uses adjusted earnings and adjusted earnings per share to evaluate our operating and financial performance because it eliminates the impact of certain items that management does not consider to be representative of the Company's on-going business operations. As a performance measure, adjusted earnings may be useful to investors in facilitating comparisons to others in the Company's industry because certain items can vary substantially in the oil and gas industry from company to company depending upon accounting methods, book value of assets, capital structure and asset sales and other divestitures, among other factors. Management believes excluding these items facilitates investors and analysts in evaluating and comparing the underlying operating and financial performance of our business from period to period by eliminating differences caused by the existence and timing of certain expense and income items that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted earnings and adjusted earnings per share may not be comparable to similar measures of other companies in our industry.

*The income tax effect of the reconciling items are calculated based on the statutory rate of the jurisdiction in which the discrete item resides.

26

Non - GAAP Reconciliation

Adjusted EBITDAX

Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDAX

Management believes EBITDAX, or earnings before income tax expense, interest expense, depreciation, amortization and exploration expense is a widely accepted financial indicator, and useful for investors, to assess a company's ability to incur and service debt, fund capital expenditures, and make distributions to shareholders. We define adjusted EBITDAX, a non-GAAP financial measure, as EBITDAX adjusted for certain items presented in the accompanying reconciliation. Management uses adjusted EBITDAX to evaluate our ability to fund our capital expenditures, debt services and other operational requirements and to compare our results from period to period by eliminating the impact of certain items that management does not consider to be representative of the Company's on-going operations. Management also believes adjusted EBITDAX facilitates investors and analysts in evaluating and comparing EBITDAX from period to period by eliminating differences caused by the existence and timing of certain operating expenses that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted EBITDAX may not be comparable to similar measures of other companies in our industry.

($ in millions)

27

Non - GAAP Reconciliation

Regional Cash Flows

Reconciliation of Net Cash Provided by Operating Activities to Cash Flows from Continuing Operations before Changes in Operating Assets and Liabilities

Cash flows from continuing operations before changes in operating assets and liabilities is a non-GAAP financial measure. Apache uses it internally and provides the information because management believes it is useful for investors and widely accepted by those following the oil and gas industry as a financial indicator of a company's ability to generate cash to internally fund exploration and development activities, fund dividend programs, and service debt. It is also used by research analysts to value and compare oil and gas exploration and production companies and is frequently included in published research when providing investment recommendations. Cash flows from operations before changes in operating assets and liabilities, therefore, is an additional measure of liquidity but is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing, or financing activities.

(1) Includes non-controlling interest in Egypt.

28

Non - GAAP Reconciliation

Cash Flow From Operations Before Changes in Operating Assets and Liabilities

Reconciliation of Net Cash Provided by Operating Activities to Cash Flows from Operations before Changes in Operating Assets and Liabilities

Cash flows from operations before changes in operating assets and liabilities is a non-GAAP financial measure. Apache uses it internally and provides the information because management believes it is useful for investors and widely accepted by those following the oil and gas industry as a financial indicator of a company's ability to generate cash to internally fund exploration and development activities, fund dividend programs, and service debt. It is also used by research analysts to value and compare oil and gas exploration and production companies and is frequently included in published research when providing investment recommendations. Cash flows from operations before changes in operating assets and liabilities, therefore, is an additional measure of liquidity but is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing, or financing activities.

($ in millions)

(1) Includes non-controlling interest in Egypt.

29

Non - GAAP Reconciliation

Net Debt

Reconciliation of Debt to Net Debt

Net debt, or outstanding debt obligations less cash and cash equivalents, is a non-GAAP financial measure. Management uses net debt as a measure of the Company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand.

($ in millions)

30

Non - GAAP Reconciliation

Upstream Capital Investment

Reconciliation of Costs Incurred to Upstream Capital Investment

Management believes the presentation of upstream capital investments is useful for investors to assess Apache's expenditures related to our upstream capital activity. We define capital investments as costs incurred for oil and gas activities, adjusted to exclude asset retirement obligation revisions and liabilities incurred, capitalized interest, and certain exploration expenses, while including amounts paid during the period for abandonment and decommissioning expenditures. Upstream capital expenditures attributable to a one-third noncontrolling interest in Egypt are also excluded. Management believes this provides a more accurate reflection of Apache's cash expenditures related to upstream capital activity and is consistent with how we plan our capital budget.

($ in millions)

31