APA : 2023 Financial & Operational Highlights

FOR THE FUTURE

FOUNDATIONS

2023 Financial and Operational Highlights

I N T R O D U C T I O N

FOUNDATIONS FOR THE FUTURE

In 2023, adherence to our long-term exploration and production-focused strategy enabled APA to build on a durable foundation for an unpredictable future.

We remain committed to responsibly finding and producing oil and gas, maintaining financial discipline, delivering top operational performance,

and enhancing our high-quality, diversified portfolio.Our diversified

portfolio provides capital allocation flexibility, enabling us to quickly respond to or take advantage of volatile commodity price environments.

‒ APA increased total company oil production by 8% year-over-year

while further improving our excellent safety track record. Well

performance and execution, particularly in the Permian Basin,

were outstanding and helped APA deliver a 12% increase in U.S. oil

production from fourth-quarter 2022 to fourth-quarter 2023. We

seek to extend this track record of efficient Permian growth and

safe operations to the acquisition of Callon Petroleum Company.

‒ In Suriname, following a successful appraisal program offshore in

Block 58, we initiated a front-end engineering design (FEED) study

A L A S K A

P E R M I A N

APA Global Operations Map

APA Corporation's subsidiaries have operations in the United States, Egypt's Western Desert and the United Kingdom's North Sea with exploration opportunities offshore Suriname and elsewhere.

Developement

Exploration

I N T R O D U C T I O N

N O R T H S E A

E G Y P T

S U R I N A M E

U R U G U AY

for a large-scale oil project with production capacity of 200,000

barrels per day. We look forward to reaching a final investment

decision (FID) later this year.

‒ We returned to shareholders 66% of our free cash flow (FCF)

or $637 million, to shareholders, once again exceeding the

commitment laid out in our annual shareholder return framework.

‒ We achieved all of our environmental, social and governance (ESG)

goals, including the conversion of approximately 2,800 pneumatic

devices to instrument air or through valve retrofit in the U.S.

‒ APA's future is exciting. We have prudently and deliberately

constructed a foundation for success based on pragmatism,

flexibility, sustainability and moderate growth. New opportunities

and challenges will arise, but our strategy will remain unchanged as

we continue our mission to help meet the world's critical need for

energy resources as responsibly and efficiently as possible.

2023 Operational Data by Region

	Proved Reserves	Gross Acreage*	Oil and NGL Production	Natural Gas Production
		(MMboe)	(in thousands)	(Mbbls/d)	(MMcf/d)
United States	566	3,686	142	452
Egypt		171	5,295	89	326
United Kingdom	70	292	36	50
Other International	‒	6,177	‒	‒
*Developed and undeveloped
Key
Mcf/d:	thousand cubic feet a day	Mbbls/d:	thousand barrels a day
MMcf/d:	million cubic feet a day	Mboe:	thousand barrels of oil equivalent
Bbls/d:	barrels a day	MMboe:	million barrels of oil equivalent

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2 0 2 3 K E Y M E T R I C S

267	828
	Oil and NGL Production		Natural Gas Production
	(Mbbls/d)		(MMcf/d)
331	807
Adjusted Production¹	Proved Reserves
(Mboe/d)	(MMboe)

Production		Estimated Proved Reserves
(% of total)		(% of total)
	United States	54%		United States	70%
	Egypt	35%		Egypt	21%
	United Kingdom	11%		United Kingdom	9%

396Mboe/d

Total Production

Production by Product

(% of total)
Oil	50%
Natural Gas	34%
NGLs	16%

63%
37%
Conventional	Unconventional
89%
11%
Onshore		Offshore

54%	46%
United States	International
	(includes all dark blue locations)

$7,385Million

Oil & Gas Production Revenue

Revenue by Product

(% of total)
Oil	81%
Natural Gas	12%
NGLs	7%

2 0 2 3 K E Y M E T R I C S

$2,005Million

Upstream Capital Investment2

$5,275 Million

Adjusted EBITDAX²

$9.25

Net Income Per Diluted Share

$4.53

Adjusted Earnings Per Share2

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.

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E X E C U T I V E L E T T E R

DEAR FELLOW

SHAREHOLDERS,

Over the last year, we took several key actions in alignment with our long-term strategy to create and maintain a differentiated and diversified portfolio.

E X E C U T I V E L E T T E R

In Egypt, we increased the size and significantly improved the efficiency of our drilling program, which in turn created a greater demand for workover rigs to service the higher pace of well additions. Over the last year, this meant the workover rigs were doing fewer recompletions and had less available time to process workover backlog. As we work through some of these workover rig challenges and moderate our drilling pace in response, we are expecting relatively flat year-over-year production in Egypt during 2024. Egypt continues to be an important component of our portfolio, generating strong free

Despite substantial market volatility, we successfully navigated softening oil and gas prices and challenging public policy decisions. This adherence to our foundational principles ensures APA is well positioned for the future as a durable and sustainable oil and gas exploration and production enterprise. Permian Basin operational excellence and strong well performance were important drivers of our results in 2023, and we anticipate leveraging this success with our acquisition of Callon Petroleum Company. Additionally, we expanded our portfolio to include both short-cycle and frontier exploration plays through the addition of Alaska and Uruguay. On the environment, social and governance (ESG) front, we achieved or made significant progress toward all our short-andlong-term goals.

APA's strategy is underpinned by our focus on investing capital only in activities related to the exploration for and production of oil and gas. We seek to drive long-term shareholder returns by growing and maintaining a high-quality portfolio, being financially disciplined and delivering top-tier

operational performance.

Last year, we ramped up drilling activity in our U.S. operations, continuing our trend of post-pandemic growth. Adjusted global oil production increased 4% from fourth quarter 2022 to fourth quarter 2023, led by the unconventional Permian Basin, which was up by 16% over the same period. We continue to improve well productivity and capital efficiency in the Permian and have consistently surpassed our U.S. total production guidance for six straight quarters.

APA's acquisition of Callon Petroleum Company complements and enhances an already high-performing asset base, adding to our high-quality,short-cycle development inventory and strengthening the company's position as a leading, diversified and independent exploration and production company. The combination of Callon's Delaware-focused footprint with APA's Midland-focused footprint provides scale and balance in the Permian Basin, with APA's oil-prone acreage in the Midland and Delaware Basins increasing by more than 50% following the transaction.

cash flow, with an opportunity for resumption of oil and gas production growth as commodity prices warrant in 2025 and beyond.

Our successful appraisal program offshore Suriname identified an estimated 700 million barrels of recoverable oil resource in the Sapakara and Krabdagu oilfields, resulting in the launch of development studies for a large oil project in Block 58. Detailed engineering studies were initiated in late 2023 with the final investment decision (FID) slated for year-end 2024 and a

first production target set for 2028.

In the U.K., we took carefully considered steps toward rightsizing our business, making the decision to suspend drilling and significantly reduce capital investment due to the Energy Profits Levy (EPL), a windfall profit tax on U.K. oil and gas production. Although North Sea production will decline, this will be offset by our strong Permian growth in 2024.

We achieved several ESG objectives last year in the areas of air, water and communities+people, and delivered exceptional safety results, achieving the lowest recordable incident rate since 2005. Our environment, health and safety (EHS) teams

100 full-time workers during a one-year period. We have also introduced a goal to deliver projects to reduce diesel usage for power generation by 10% and a long-term goal to reduce methane intensity 50% by 2026.

As we embark on the year ahead, we will continue to focus on the undeniable importance of oil and natural gas while delivering top operational performance as safely, sustainability and cost-efficiently as possible. We expect to decrease our investment slightly year over year with a capital budget of $1.9 to $2 billion. The outcome will be relatively flat year-over-year production growth accompanied by a continued commitment to returning a minimum of 60% of free cash flow to shareholders.

Achieving our operational and environmental accomplishments in 2023 would not have been possible without our dedicated teams across the globe who ensure we are on track to execute our corporate strategy. We cannot predict the future, but we can commit to excellence across our portfolio. We have

Throughout 2023, APA's performance yielded several notable financial and operational highlights:

launched a Life-Saving Rules (LSR) safety campaign, reaching our goal of increasing our safety observation rate and actions by 10%. We also expanded our water conservation efforts, utilizing

positioned our portfolio and organization to be both durable through challenging commodity price cycles and to capture as much upside as possible during improving commodity price

• Delivered full-year net cash from operating activities of $3.1 billion, adjusted EBITDAX of $5.3 billion and $965 million of free cash flow (FCF)
• Returned $637 million to shareholders or 66% of FCF
• Improved our balance sheet by reducing outstanding total debt by $265 million
• Increased total company oil production by 8% year-over-year
• U.S. oil production increased 12% from fourth-quarter 2022 to fourth-quarter

2023, driven by strong Permian Basin execution and well performance

• Achieved primary emissions goal of converting approximately 2,800 pneumatic devices to instrument air or through-valve retrofit in the U.S.
• Identified an estimated 700 million barrels of recoverable oil resource at Sapakara and Krabdagu on Block 58 offshore Suriname; initiated FEED study and progressing toward 2024 FID

more than 50% recycled, produced water for completions in U.S. onshore operations. Lastly, we reduced methane emissions across U.S. onshore operations by converting 2,800 pneumatic devices to instrument air or through valve retrofit. We also made progress on our long-term emissions reduction goals and conducted a proactive campaign of wellsite retirement and reclamation both onshore and in the Gulf of Mexico.

For 2024, we have established new short- and long-term goals ESG for the organization. We aim to conduct at least 4,000 LSR inspections with greater than 30% leadership participation, achieve a severe incident rate (SIR) of 0.01 The SIR is the number of severe or life-altering injuries or fatalities (SIF) per

environments. Our foundations for the future have enabled us to be consistently profitable while acting as a responsible steward of our environment. As we move forward in the future, we believe oil and gas will only grow in importance, placing APA in a position of long-term strength and scale in

an energy-starved world.

Lamar McKay	John J. Christmann IV
Non-executive Chair	Chief Executive
of the Board	Officer

1 All data reflects the 2023 Sustainability Report.

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O U R E S G F O C U S

O U R E S G F O C U S

AIR

OUR ESG FOCUS

APA is committed to meeting the growing demand for energy and doing so in a cleaner, more sustainable way.

We approach environmental, social and governance (ESG) efforts through a pragmatic lens driven by near- and medium-term goals that are actionable today and provide measurable impact.

We have organized our efforts across the areas most pertinent to and controllable by our company: air, water and communities+people. These priorities demonstrate our clear commitment to reducing emissions, responsibly stewarding natural resources and supporting the well-being of our workforce and local communities.

In our efforts to continuously reduce emissions, we focus on implementing best practices across our operations. We use a range of methods and technologies to detect leaks and reduce emissions, including preventive maintenance programs, production shut-in protocols in response to third-party midstream upsets and the careful design and engineering of new facilities. In 2023, we joined the United Nations' Oil and Gas Methane Partnership (OGMP), the only comprehensive, measurement-based international reporting framework for the sector. OGMP 2.0 engages with oil and gas companies on methane emissions reduction and helps improve the accuracy and transparency of methane emissions reporting.

WATER

Data Highlight

25%

reduction in (Scope 1) emissions totaling 1,847,000 tonnes CO2e since 2019

~2,800

pneumatic devices converted to instrument air or through valve retrofit in the U.S., achieving a 2023

ESG goal

>30%

reduction in global flaring emissions since 2019

Fresh water is a precious and limited resource, and we seek to minimize its use by finding innovative ways to source alternatives, reusing water from producing formations, and reducing the overall amount of water required for operations. We continue to leverage technology to preserve freshwater resources across our operations.

Data Highlight

50%

of our completions in U.S. onshore operations utilized recycled, produced water, achieving a

key corporate ESG goal in 2023

Our work in this area was recognized in March 2023 when	97%
we received the Industrial Reuse Champion Award at the
38th Annual WateReuse Symposium in Atlanta, Georgia.	of the total water used for global production
WateReuse represents a coalition of utilities that recycle
operations utilized recycled or nonfresh water
water, businesses that support the development of recycled
since 2018
water projects and consumers of recycled water.

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O U R E S G F O C U S

OUR ESG FOCUS

COMMUNITIES + PEOPLE

Our communities + people ESG focus area includes the employees who are employed with Apache across the world and the communities where we work, including contractors, neighboring residents, non-government organizations and numerous other stakeholders.

Data Highlight

35%

of U.S. employees self-identified as ethnic minorities, up from 25% in 2017

We strive to be a good neighbor in the areas where we operate by understanding community interests and concerns, developing local economies through our investment decisions and employment opportunities and supporting local partners doing critical work in the community. Additionally, we have a defined process for stakeholder engagement and issue identification, which we implement and replicate as we expand our exploration portfolio to new areas.

To help focus our efforts and ensure we are creating shared value for our business and the communities where we operate, we have identified three pillars of social investment: Community Well-being, Environmental Stewardship and Access to Energy. The Apache Tree Grant Program, founded in 2005, is the cornerstone of our environmental stewardship pillar, and last year we granted more than 206,000 trees to 61 nonprofit partner organizations. In Suriname, we donated two generators to villages in the interior of the country to help provide more reliable electricity, support the preservation of indigenous traditions, expand educational opportunities and access to quality health care, and increase local trade.

Within the company, we aim to provide fulfilling and rewarding careers for our employees while fostering an inclusive culture where all can thrive. We have established Employee Resource Groups (ERGs) to build communities. These groups help expand our diversity and inclusion efforts, build connections, support our outreach programs and encourage career development. ERGs at the company include the Black Professionals Network, Pride Network, TEAM Apache, Unidos, Women's Network, APAsian Network and the Young Professionals Network.

3,600 Trees

donated in Scotland as part of expanded, award-winning Apache Tree Grant Program

102

University scholars supported with coaching, mentoring and networking resources through our partnership with the Posse Foundation.

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Financial Summary

(Dollars in millions, except per share data)

2 0 2 3 P E R F O R M A N C E S U M M A R Y

Year ending December 31		2 0 2 3		2022		2021
Oil and Gas Production Revenues	$	7,385	$	9,220	$	6,498
Net Income (Loss) Attributable to Common Shareholders	$	2,855	$	3,674	$	973
Diluted Net Income (Loss) per Common Share	$	9.25	$	11.02	$	2.59
Net Cash Provided by Operating Activities	$	3,129	$	4,943	$	3,496
Changes in Operating Assets and Liabilities	$	417	$	(121)	$	(37)
Cash from Operations before Changes in Operating Assets and Liabilities*	$	3,546	$	4,822	$	$3,459
Total Assets	$	15,244	$	13,147	$	13,303
Total Debt	$	5,186	$	5,451	$	7,295
Total Equity (Deficit)	$	3,691	$	1,345	$	(717)
Cash Dividends Declared per Common Share	$	1.00	$	0.75	$	0.2375
Operational Summary
Costs Incurred in Oil & Gas Property	$	2,719	$	2,569	$	1,259
Upstream Capital Investment*	$	2,005	$	1,767	$	1,062
Natural Gas Production (MMcf/d)		828		865		830
Oil and NGL Production (Mbbls/d)		267		252		250
Proved Reserves (MMboe)		807		890		913

*Non-GAAP Financial Measure

Non-GAAP Financial Measures:

APA's financial information includes information prepared in conformity with generally accepted accounting principles (GAAP) as well as non-GAAP financial information. It is management's intent to provide non-GAAP financial information to enhance understanding of our consolidated financial information as prepared in accordance with GAAP. Adjusted earnings, adjusted EBITDAX, upstream capital investment, net debt, cash flows from operations before changes in operating assets and liabilities and free cash flow are non-GAAP measures. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure.

Our Website: apacorp.com

Our website provides additional company and financial data, including:

• Profiles and maps of the company's worldwide operations: apacorp.com/portfolio
• Background on our values, governance, management and history: apacorp.com/about
• Stock information, market data, investor presentations and news: investor.apacorp.com
• Career opportunities:apacorp.com/careers

SINCE 1954,

our team has been unified by our values, our commitment to building shareholder value and our culture, which empowers every employee to make decisions and achieve the company's goals. Our global team is brought together by a sense of ownership and the knowledge that the best answers win.

OUR VISION

To contribute to human progress by responsibly helping meet the world's oil and gas needs.

OUR CORE VALUES

Safety	We never compromise on safety.
Integrity	We conduct our business with
	respect, honesty and dignity.
People	We recognize people are the
	foundation that drive our success.
Stewardship	We have an unwavering commitment
	to responsible operations.
Ingenuity	We set aggressive goals, question
	the status quo, and seek top
	performance through continuous
	improvement.

Forward-Looking Statements:

This report contains 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. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "continues," "could," "estimates," "expects," "goals," "guidance," "may," "might," "outlook," "possibly," "potential," "projects," "prospects," "should," "will," "would," and similar references to future periods, but the absence of these words does not mean that a statement is not forward-looking. These statements include, but are not limited to, statements about future plans, expectations, and objectives for operations, including statements about our capital plans, drilling plans, production expectations, asset sales, and monetization. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See "Risk Factors" in APA's Form 10-K for the year ended December 31, 2023, and in our quarterly reports on Form 10-Q, filed with the Securities and Exchange Commission for a discussion of risk factors that affect our business. Any forward-looking statement made in this report speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. APA and its subsidiaries undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.

Our Social Media Sites

• Instagram: instagram.com/apachecorporation
• Facebook: facebook.com/apachecorporation
• Twitter: twitter.com/apa_corp

2023 Sustainability Report

Our 2023 Sustainability Report features our performance in governance, economics, environmental stewardship, health and safety in the workplace, and community outreach. The report is available online: apacorp.com/sustainability

Media and Other Stakeholder Inquiries

Members of the media and other external stakeholders are welcome to contact our Communications & Public Affairs office. Information requests may be directed to:

Castlen Kennedy

Senior Vice President, Corporate Affairs and Marketing [phone]

[e-mail]

Investor Inquiries

Shareholders, brokers, securities analysts or portfolio managers seeking information about the company are welcome to contact our Investor Relations department: Gary Clark

Vice President, Investor Relations [phone]

[e-mail]

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