APA (APA) EnerCom Denver – The Energy Investment Conference summary

Portfolio Overview and Strategy

• Maintains a diversified global portfolio with oil and gas assets across conventional and unconventional plays.

• Focuses capital allocation on development in the Permian and Egypt, with 10–15% of budget for exploration, increasing next year.

• Recent acquisitions and partnerships have expanded positions in the Delaware Basin, Alaska, and Uruguay, with the Alaska acquisition expected to close by year-end 2026.

• Nearly 50% of Egypt gas now receives a higher price, enhancing revenue stability.

• Stable, cash-generating assets in Egypt and the Permian underpin financial strength and fund exploration.

Cost Efficiency and Financial Performance

• Achieved $500 million in structural cost reductions, surpassing initial targets ahead of schedule, with a $675 million YE26 run-rate cost and interest savings versus 2024 exit.

• Lowered annualized interest expense by $175 million, resulting in $700 million in reduced cash costs entering 2027.

• Maintains strong free cash flow, with $1.2 billion generated in the first half of the year and $750 million of debt repaid.

• Approaching a net debt target of $3 billion and maintaining a ≥60% annual free cash flow equity return framework since 2021.

• Production outlook in the Permian increased to 123,000 bbl/day for the year, with capital held flat.

Exploration and Growth Initiatives

• Five exploration and appraisal wells planned in Alaska, Suriname, and Uruguay, with additional appraisal in the Permian and Egypt.

• Suriname Block 58 GranMorgu development with TotalEnergies targets first oil in mid-2028, with a 220,000 bbl/day FPSO, $30/bbl breakeven, and estimated recoverable resources over 750 MMBO.

• Alaska program includes two wells in 2027, leveraging recent infrastructure acquisitions and seismic data integration.

• Uruguay exploration well operated with Eni, mostly funded by partner, scheduled for the second half of next year, with an additional well to spud in 2027.

• Ongoing appraisal and technical work in the Permian and United Kingdom expected to maintain over 10 years of drilling inventory.