ARGENTINA Analyst Review. Abundant Opportunity. Higher Prices. Rob Johnston

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ARGENTINA 2008 Analyst Review Abundant Opportunity Higher Prices Rob Johnston The following discussions contain certain forward looking statements as defined by the Private Securities Litigation

1 ARGENTINA 2008 Analyst Review Abundant Opportunity Higher Prices Rob Johnston The following discussions contain certain forward looking statements as defined by the Private Securities Litigation Reform Act of 1995 including, without limitation, estimates, expectations, plans and goals regarding Apache s production, reserves, financings, acquisitions, exploration and exploitation prospects, energy prices, operating costs, and results of operations. Such forward looking statements involve estimates, assumptions and uncertainties. No assurance can be given that Apache s expectations or goals will be realized, and actual results may differ materially from those expressed in the forward looking statements. For reconciliations of non GAAP financial measures, see our web site

2 Argentina Apache Country Overview Basins 2* Noroeste Cuyo Buenos Aires Active Wells Net Prod ,000 13,000 3,000 MCFD BOPD NGLD Neuquén San Jorge Land 3D Seismic D 2008 Wells 3,400,000 9, Acres * km 2 km 2 wells Austral 2008 Capital (E) * Includes Chile but excludes 1.4 mm acres in Cuyo Basin expected d by yearend end $286 MM

3 Jump Starting a New Core Area LLI Capital Lease Level Income vs. Capex $MM (E) Note: Lease level income = revenue operating expense transportation expense severance taxes

4 Argentina 2009 Operating Philosophy Create selfsustaining profit center Operate within our cash flow Maintain economic discipline Emphasize gas production in Neuquén Emphasize oil production in Tierra del Fuego Take full advantage of Gas Plus and Oil Plus

5 Argentina Houston, we have a Problem Argentina Proven Reserves Gas (Trillion Cubic Feet) /2007 increased due to Secretary of Energy initiative to book secondary reserves Oil (Billion Barrels) Gas (TCF) Oil (BBO) Prices capped 2001 and investment dropped Average prices: $1.60/Mcf and $45/Bbl Reserves have fallen by nearly half since 2000 Production has fallen 2% per year

6 Argentina Importing Costly Alternatives Domestic Natural Gas Production v. Consumption 5,000 4,000 3,000 Argentina is now consuming nearly 300 MMCFED more than it produces Jun 2006 Jul 2006 Aug 2006 Sep 2006 Oct 2006 Nov 2006 Dec 2006 Jan 2007 Feb 2007 Mar 2007 Apr 2007 May 2007 Jun 2007 Jul 2007 Aug 2007 Sep 2007 Oct 2007 Nov 2007 Dec 2007 Jan 2008 Feb 2008 Mar 2008 Apr 2008 May 2008 Jun 2008 Volume MMCFD Consumption & Chilean Exports Production plus & Bolivian Imports

Argentina Alternative Cost / MMBTU Gas $9.03 Fuel Oil $ 16.

7 Argentina Alternative Cost / MMBTU Gas $9.03 Fuel Oil $ Bolivia daily contract quantity today 565 MMcfd increasing to 978 MMCFD in 2010 but unable to deliver more than 63 MMCFD due to lack of production LNG $ Argentina took delivery of six cargoes equivalent to nearly 17 Bcf Costly alternative which greatly reduced effective life of boilers Propane $ May be mixed with air to create similar synthetic natural gas Diesel $ Domestic refiners already importing for agricultural and transportation industry 2008 fuel subsidies are expected to top $6.5 B* 2009 budget provides for only $2.0 B in subsidies *G&G Energy Consultants

8 Argentina Government Price Incentives Gas Plus Program designed to provide incentives for gas exploration & exploitation by limiting redirections into the regulated market Apache has received conditional approval for Estación Fernández Oro and Anticlinal Campamento and expects approval for Al Sur de la Dorsal, Al Sur de la Norte Dorsal, Portozuelo, Ranquil Co, Loma Negra, Guanaco and La Calera Oil Plus Pending program designed to provide incentives for oil exploration & exploitation by reducing or eliminating the retention tax Apache application will include all of Centenario and most of Tierra del Fuego drilling

6 drilling rigs 6 completion rigs 80 new wells 135

9 Argentina 2008 Neuquén Basin Activity Neuquén Apache Operated 15 Miles 25 Km Apache NonOperated 1,100,000 acres 6 drilling rigs 6 completion rigs 80 new wells 135 recompletions 13 compressors 5 new batteries Production up 15% 10 months

Neuquén Estación Fernández Oro (EFO) Wells Drilled 8 Neuquén Neuquén Potential

Drill & Complete Cost $4.5 mm Reserves / Wells 3.5 Bcf Avg. Porosity / Perm. 9% /.

Lajas Wells Lowest Known Gas Drilled Gas wells Drilling wells Location BP Multiple

10 Neuquén Estación Fernández Oro (EFO) Wells Drilled 8 Neuquén Neuquén Potential Locations Avg. Drill Depth 46 wells in 3 years period 3,900 meters BP BP Avg. Drill & Complete Cost $4.5 mm Reserves / Wells 3.5 Bcf Avg. Porosity / Perm. 9% /.05 md BP Well Spacing 30 Acres, 400 meters BP BP Limited drainage Thick section Lajas Wells Lowest Known Gas Drilled Gas wells Drilling wells Location BP Multiple intervals Plan 50 MMcfd Gas Plus Price 3rig program Unknown limits 0 1 2Km SW GR SP RES COND PHI E BV W

11 Neuquén EFO Gas Price Sensitivity NPV ATAX M$ $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 EFO Gas Well Drill Depth Zone Risk Drill Cost Initial Rate Reserves 3,900 Meters Lajas 80% $4,100 M 3.5 MMcfd 3.4 Bcfg $0 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 $5.0 $5.5 Gas Price ($/MCF) NPV (10%) ROR $874 M 28% Economic evaluation assumes $2.45 / Mcf no escalation for life of well

Neuquén Basin Ranquil Co Wells Drilled 12 Well RCo1019 Neuquén Neuquén Potential Locations Depth / Formation Drill & Complete Cost Reserves / Well ROR / NPV 8 2,700 meters / Pre Cuyo 2.7 MMU$S 6.

12 Neuquén Basin Ranquil Co Wells Drilled 12 Well RCo1019 Neuquén Neuquén Potential Locations Depth / Formation Drill & Complete Cost Reserves / Well ROR / NPV 8 2,700 meters / Pre Cuyo 2.7 MMU$S 6.0 Bcf 100% / $1,700M Well Spacing 2530 acres Top Precuyo Production has doubled in 2 years Now targeting Guanaco and Al Norte de la Dorsal Increased gas is requiring pipeline expansion Should qualify for Gas Plus Wells drilled Drilling / completing Potential locations 1 Mile 1,5 km

Neuquén La Calera Exploratory Test Neuquén Neuquén Potential closure Potential Locations Depth / Formation Drill & Complete Cost Reserves / Wells Porosity Well Spacing 10,000 acres 25 (based on 200

4450 4610 4670 4730 LCa15 443 0 LCa.a5 4710 4530 4830 4870 CMo.x1 CMo.

Anticipate early 2009 spud 4 55 0 4 550 4510 4490 4430 4450 4470 4450 4430 4410 4 3 70 4390 4470 4410 4 370 4510 4 6 90 4490 4 7 50 4630 4650 4550 4450 4730 4430 4670 4710 4610 4530 4 510 9 0 4 4 4 7

13 Neuquén La Calera Exploratory Test Neuquén Neuquén Potential closure Potential Locations Depth / Formation Drill & Complete Cost Reserves / Wells Porosity Well Spacing 10,000 acres 25 (based on 200 acres) 5,000 meters / Pre Cuyo 15 MMU$S 20 Bcf 4% 200 acres X/Y: Meters Large / deep structure 500 Bcf potential Mile 1,5 km LCa LCa.a CMo.x1 CMo.a MultiTcf fields on 3 sides Gas Plus approval pending Anticipate early 2009 spud Potential locations 300ft closure Seismic MicroTechnology, Inc. RCO at same scale Project: La Calera Project Location: Scale = 1: m Top_Precuyo_Depth_tvdss (ValeriaS) LCa.a7 LCa.e2 LCa9 LCa.e3 LCa.x1 LCa.a14 LCa.a4 LCa.a AdR.e5 LCa.a13 LCa.a8 BdCh.x1 LCa10 PC1 TP.x3 TP.x1 TP.x2 TP.xp4_loc PC2 LCa11 ERe.x1 LCaS.x1_loc

Neuquén Centenario Formation Neuquén PetroAndina has increased production 14,000 Bopd in 4 years Apache Operated Apache NonOperated Fields Centenario Fm.

14 Neuquén Centenario Formation Neuquén PetroAndina has increased production 14,000 Bopd in 4 years Apache Operated Apache NonOperated Fields Centenario Fm. Prospects Apache recompleted 2 wells for an average rate of 1,250 Bopd each Apache recently recompleted 10 wells with an average rate of 1,100 Mcfd, 60 Bopd Emerging play from 1,000 sand so shallow rarely logged 10 new fields discovered in last 4 years Reviewing all Neuquén properties for exploration potential

15 Argentina Tierra del Fuego Activity 100% APA 50% APA Apache Operated 710,000 acres all covered with 3D seismic Completed 2,500 sq km 3D Added 3 rd drilling rig Drilled 32 wells in 2 yrs Adding 2 turbo expanders which will add 7 MMbo and NPV of $60MM for $50MM capex Increased gas production from 175 MMcfd to 195 MMcfd Increased Gross Oil Production from 3,600 BOPD to 6,500 BOPD in 10 months

2 MMbo 375 sq km 3D Oil Rim Oil Rim Water Bald High Water Shoreline Apache Operated Bald High Oil Rim Bald 15 new oil wells 2

16 TdF Targeting the Oil Rim w/ 3D ARGENTINA Oil Rim Bald High Oil Rim Structure Top of Springhill Sand Cabo Nombre Cañadon Piedra Block 14 wells 3,000 Bopd 4.2 MMbo 375 sq km 3D Oil Rim Oil Rim Water Bald High Water Shoreline Apache Operated Bald High Oil Rim Bald 15 new oil wells 2 new gas wells Water Water Bald High High 2 wells 10.5 MMcfd 60 more locations 5 km Shoreline Recent Oil Well Recent Gas Well Future Location Decades after discovery, Apache achieved the best initial rate ever reported in TdF

17 TDF Oil Price Sensitivity NPV BFIT M $ Seccion Bano Oil Well $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 $30 $40 $50 $60 $70 $80 $90 $100 Oil Price ($/BO) Drill Depth Zone Risk Drill Cost Initial Rate Reserves NPV ROR 2,200 Meters Springhill 50% $2,300 M 250 Bopd 235 Mbo $995 M 65% Economic evaluation assumes $50.00 / Bbl no escalation for life of well

18 TDF 3D Tightening the Net A San Goyo New Field Carmen Silva New Field La Sara A New Field Apache Operated Structure Top Springhill A Top Springhill A 12.5 Miles 20 Km Apache s new new mega mega 3D 3D can can see see smaller smaller fields fields Apache s which were were overlooked overlooked using using the the old old 2D 2D seismic seismic which

acres Currently acquiring 1,270 km sq 3D New

19 Chile 1.2 Million Acres Added 100% APA 50% APA Apache Operated 2 Blocks awarded Rusfin Block 100% 866,000 net acres Lenga Block 50% 376,000 net acres Currently acquiring 1,270 km sq 3D New Apache 3D Seismic 3D acquisition began in September & first well planned in first quarter 2009

20 Argentina Contrarian or Common Sense Drilling Rigs v. Production CUYO CHILE BOED TIERRA DEL FUEGO Drilling Rigs NEUQUEN BASIN DRILLING RIG COUNT Price controls reduced Apache s s acquisition cost Grown production profitability even with current prices Drilling inventory gets better with every well we complete Argentina s s oil and gas shortage gets worse every day Prices have nowhere to go but up

21 ARGENTINA 2008 Analyst Review Abundant Opportunity Higher Prices Gracias The following discussions contain certain forward looking statements as defined by the Private Securities Litigation Reform Act of 1995 including, without limitation, estimates, expectations, plans and goals regarding Apache s production, reserves, financings, acquisitions, exploration and exploitation prospects, energy prices, operating costs, and results of operations. Such forward looking statements involve estimates, assumptions and uncertainties. No assurance can be given that Apache s expectations or goals will be realized, and actual results may differ materially from those expressed in the forward looking statements. For reconciliations of non GAAP financial measures, see our web site

January 2018 Air Traffic Activity Summary

January 2018 Air Traffic Activity Summary Jan-2018 Jan-2017 CY-2018 CY-2017 Passengers 528,947 505,421 4.7% 528,947 505,421 4.7% Passengers 537,332 515,787 4.2% 537,332 515,787 4.2% Passengers 1,066,279