APA (APA) investor relations material

Key themes and industry context

• Exploration is regaining importance as shale play opportunities diminish and global oil demand remains strong.

• Companies with diversified portfolios in super basins are better positioned for long-term value creation.

• Technological advances, such as improved seismic imaging, have increased wildcat exploration success rates.

• Major recent discoveries in Guyana, Suriname, Alaska, and Namibia highlight the global resurgence of exploration.

• Experience, mentorship, and a committed exploration culture are critical for sustained success.

Company strategies and project highlights

• Over $850 million has been invested in exploration since 2020, with a focus on the Permian, Egypt, Suriname, Alaska, and Uruguay.

• Suriname's Block 58, acquired in 2015, is set for first oil in 2028, with Total as operator and a 220,000 bbl/d FPSO.

• Alaska joint venture has yielded two significant discoveries, with further appraisal and drilling planned.

• Egypt's recent pivot to gas exploration is showing strong early results.

• Large, underexplored blocks in Uruguay and a promising new play in Aruba are positioned for future growth.

Exploration philosophy and talent development

• Exploration is described as a high-risk, high-reward endeavor requiring resilience and a willingness to fail.

• The art of exploration is at risk due to industry focus on development and a lack of training for younger professionals.

• Mentorship and cross-training between exploration and unconventional teams are emphasized to build future capability.

• Commitment to exploration, even during downturns like COVID-19, has helped attract and retain top talent.

• A diversified portfolio and early-mover advantage are seen as key to avoiding industry herd behavior.