THECORDILLERA ENERGYPARTNERSIII, LLCACQUISITION

ARESOURCE PLAYINTHE APACHEWAY

JANUARY23,2012

FORWARDLOOKINGSTATEMENTS
Thispresentationcontains"forwardlookingstatements"withinthemeaningofthe"safeharbor"provisionsofthe PrivateSecuritiesLitigationReformActof1995including,withoutlimitation,expectations,beliefs,plansandobjectives regardingproductionandexplorationactivities.Anymattersthatarenothistoricalorcurrentfactsareforwardlooking and,accordingly,involveestimates,assumptions,risksanduncertainties,including,withoutlimitation,risks, uncertaintiesandotherfactorsdiscussedinApacheCorporations(Apache)mostrecentlyfiledAnnualReportonForm 10K,recentQuarterlyReportsonForm10Q,recentCurrentReportsonForm8K,amendmentstheretoandinApaches otherpublicfilingsandpressreleases,whichareavailableonourwebsite,http://www.apachecorp.com. Theseforward lookingstatementsarebasedonApachescurrentexpectations,estimatesandprojectionsaboutthecompany,its industry,itsmanagementsbeliefsandcertainassumptionsmadebymanagement.Noassurancecanbegiventhatsuch expectations,estimatesorprojectionswillprovetohavebeencorrect,andmanyofthefactorsthatwilldetermine Apachesactualresultsarebeyonditscontrol.Wheneverpossible,theseforwardlookingstatementsareidentifiedby wordssuchasexpects,believes,anticipatesandsimilarphrases. Becausesuchstatementsinvolverisksanduncertainties,Apachesactualresultsandperformancemaydiffermaterially fromtheresultsexpressedorimpliedbysuchforwardlookingstatements.Giventheserisksanduncertainties,youare cautionednottoplaceunduerelianceonsuchforwardlookingstatements.Unlesslegallyrequired,weassumenoduty toupdatethesestatementsasofanyfuturedate.However,you shouldreviewcarefullyreportsanddocumentsthat ApachefilesperiodicallywiththeSecuritiesandExchangeCommission. CautionaryNotetoInvestors: TheUnitedStatesSecuritiesandExchangeCommission("SEC")permitsoilandgas companies,intheirfilingswiththeSEC,todiscloseonlyproved,probable,andpossiblereservesthatmeettheSEC's definitionsforsuchterms.Anyreserveestimatesprovidedinthispresentationthatarenotspecificallydesignatedas beingestimatesofprovedreservesmayincludeestimatedreservesnotnecessarilycalculatedinaccordancewith,or contemplatedby,theSEC'slatestreservereportingguidelines.Investorsareurgedtoconsidercarefullythedisclosurein ApachesAnnualReportonForm10K/AforthefiscalyearendedDecember31,2010,availablefromApacheat www.apachecorp.com orbywritingApacheat:2000PostOakBlvd.,Suite100,Houston,Texas77056(Attn:Corporate Secretary).YoucanalsoobtainthisreportfromtheSECbycalling1800SEC0330orfromtheSEC'swebsiteat www.sec.gov.
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SUMMARYOFTERMS

CordilleraEnergyPartnersIII,LLCmergesintoanApachesubsidiary

Fullstepupintaxbasis

Transactionvalue:$2.85billion Consideration:

$2.25billionincash 6.273millionsharesofcommonstock(fixed);~$0.6billion

Timing:

EffectiveSeptember1,2011 Estimatedclosingearlysecondquarter2012

SUBSTANTIALOPERATIONSWITH EXCEPTIONALACREAGEPOSITION

254,000netacresinaprolific fairway

Liquidsrichstackedpays >60productivehorizonsacross 5,000+ofsection >14,000potentiallocations ~50%heldbyproduction Opportunitytopurchaseupto $100MMinadditionalacreage

COMPOSITEFAIRWAY

18,000boe/dnetproduction* 71.5MMboe ProvedReserves

20mi

APACHE TOTAL

233,000netacres 487,000netacres

88MMboe withNGLs 390MMboe withNGLs

CORDILLERA 254,000netacres

306MMboe 3PResource

*Asof12/12/2011.ExcludesNGLs.

MORETHANDOUBLESOURPOSITION INALIQUIDSRICHPLAY

Uniqueboltonopportunity moreofwhatweknowandlike

50+yearsexperienceintheAnadarkoBasin Drilled>2,500wellsinthearea;including~500intheGraniteWash Existingstaffabletoexecutegrowthplansimmediately

Richinventorywithpremiumeconomics

Horizontaldrillingbringsstepchangetoplayreturns Multiple,stackedhorizontaltargets Attractiveeconomicsatcurrentprices:liquidsgenerate80%ofrevenue

Visiblegrowthinlowrisk,repeatableplay

Decadesofrunningroomwith>14,000potentiallocations Selffundingdevelopmentprogram

Immediatelyaccretivetoallmetrics

MANYWAYSTOWINACROSSVASTACREAGE
PRIMARYTARGETEDPLAYS
COMPOSITEFAIRWAY

APACHE GRANITEWASH CORDILLERA

TONKAWA CLEVELAND MARMATON

20mi
Plays Evaluated(000sofnetacres) Apache Cordillera Combined

APACHE CORDILLERA TOTAL

6

233,000netacres 254,000netacres 487,000netacres

GraniteWash Tonkawa Cleveland Marmaton

125 90 89 82

191 152 173 140

316 242 262 222

THEGRANITEWASHANDMORE
Estimated recoveryperwell* EUR (MBOE) Gas (BCF) Oil (MBO) NGLs (MB)

Plays Evaluated GraniteWash (liquidsrich) Tonkawa(oil) Cleveland(oil) Marmaton(oil)

7 *Basedonevaluationeconomics

Liquids

1,117 3.5 134 400 48% 268 0.5 130 181 0.3 100 228 0.4 105 60 71% 31 72% 64 74%

ESTIMATEDCENTRALREGION2012GROWTH
70,000 60,000 50,000 BOE/D 40,000 30,000 20,000 10,000 0 Dec.2011 Dec.2011 Cordillera Dec.2012* ApacheCentralRegion
8 *December2012forecastbasedonacquisitioneconomics

CORDILLERA:ALIQUIDSGROWTHPLAY
53%ofproductionisliquids 80%ofrevenuefromliquids

47% 23%

30%

20%
Oil NGL Gas Oil

51% 29%

NGL* Gas

6,200BO/D 4,800BNGL/D* 58MMCF/D*

Basedonproductionasof12/12/2011 Revenuebasedon2012forecast

*NGLvaluecapturedasgasrevenueundercurrentpercentageofproceedscontracts.Notegasvolumesareshrunk.

NGLs PROVIDEROBUSTGASREALIZATIONS
$8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 DryGasWell GWWetGasWell $3.00/MCF AddedNGLValue DryGasValue $6.95/MCF*

Wetgaspricerealizationis>2xdrygasatcurrentprices
10 *Typicalprocessinguplift; assumes$3/Mcf,$45/bbl NGLs

HITTINGTHEGROUNDRUNNING
Apache wells (2,500) Apache District office Apache field office Cordillera field office

CurrentStaffing: Tulsa Field Region

109 147 256

20mi

50+yearsofdrilling,operatingandbusinessknowledge Personnel,capitalandexpertisetoimplementdevelopment programimmediately

11

104operatedhorizontalwellsdrilledwithnodryholes

APACHESGROWTHTHROUGHHORIZONTALDRILLING
100% 90% PercentLiquids 80% 70% 60% 50% 40% 30% 20% 10% 0%

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1/09 4/09 7/09 10/09 1/10 4/10 7/10

2009 Operatedwells: Verticals: 96 Horizontals: 7

2010 Verticals: 13 Horizontals: 44

2011 Verticals: 11 Horizontals: 53

45,000 40,000 35,000 30,000 25,000 20,000

BOE/D*

Verticalproduction:1,571wells

15,000 10,000
Horizontalproduction:121wells
10/10 1/11 4/11 7/11 10/11

5,000 0

CentralRegionBOEproductionup26%in2011 Liquidsproductionincreased133%in2011 Productionfromplanned2012drilling:50%liquids

*Includesnonoperatedwells.2011productionnumbersarepreliminary.Productionnumbersexclude4th quarterdivestitures.

UNLOCKINGGRANITEWASHVALUETHROUGH HORIZONTALDRILLING

VERTICAL Well Cost: InitialRate: $4.3MM 1.3MMCF/D 150BNGL/D 50BC/D 417BOE/D 320MBOE $0.453MM 14%

HORIZONTAL $8.5MM 6MMCF/D 710BNGL/D 225BC/D 1,935BOE/D 853MBOE(48%liquids) $5.1MM 42%

GROSS EUR: BFITPV10($90/$3): BFITROR($90/$3):

13

TypicalStilesRanchhorizontalGraniteWashwellwith5,000 lateraland20stagefraccancost2Xaverticalbutmayrecover 3Xthereservesat5Xtheinitialrate

UNLOCKINGVALUETHROUGHHORIZONTALDRILLING
GRANITEWASH* Well Cost: InitialRate: $8.5MM 6MMCF/D 710BNGL/D 225BC/D 1,935BOE/D 853MBOE $5.1MM 42% TONKAWA* Well Cost: InitialRate: $5.0MM 260BO/D 610MCF/D 78BNGL/D 440BOE/D 268MBOE $2.4MM 32%

GROSS EUR: BFITPV10($90/$3): ROR($90/$3):

GROSS EUR: BFITPV10($90/$3): ROR($90/$3):

CLEVELAND* Well Cost: InitialRate: $4.1MM 250BO/D 375 MCF/D 50BNGL/D 362BOE/D 181MBOE $1.2MM 26%

MARMATON* Well Cost: InitialRate: $4.4MM 240BO/D 350MCF/D 61BNGL/D 359BOE/D 228MBOE $1.1MM 25%

GROSS EUR: BFITPV10($90/$3): ROR($90/$3):

GROSS EUR: BFITPV10($90/$3): ROR($90/$3):

Horizontalwellswithmultistagecompletionsareideallysuited forthelowpermeability,clastic reservoirsoftheAnadarkoBasin

14 *Basedonevaluationeconomics.GraniteWashvaluesbasedontypicalStilesRanchwell.

APACHES2011HZWASHHIGHLIGHTS
Jines 100#2H 449BOPD,403MCFD Wheat6783H 248BOPD,574MCFD

Adams138#2H 398BOPD,486MCFD

APACHE CORDILLERA
McGarraugh 138#7H 674BOPD,825MCFD

APAGW APACLV APAMAR

Stiles1116H 7.6MMCFD,185BOPD

Smith116H 9.1MMCFD,966BOPD

Brown859H 11.3MMCFD,675BOPD Weatherly41H 7.1MMCFD,720BOPD

20mi
15

Tyler455H 9.0MMCFD,430BOPD

Thetford423H 4.2MMCFD,1,564BOPD

Smith117H 10.6MMCFD,1,064BOPD

MORETHANONEMILEOFSTACKEDPAYS
Apache Elk City #1-23
9,500

Shawnee Tonkawa CottageGrove Hogshooter Checkerboard Cleveland Marmaton GraniteWashCaldwell GraniteWashA

10,000

10,500

11,000

11,500

12,000

12,500

GraniteWashB GraniteWashC

13,000

13,500

SkinnerWash
14,000

14,500

AtokaWash

16

Industryhasdrilled~3,000HZwellstotheseformations, ofwhich,ApacheandCordillerahavedrilled~200

Oil Condensate Gas

SELFFUNDINGDEVELOPMENTPROGRAM*
$1,000,000
Selffundingfrom2013forward

$750,000

$500,000

$250,000

2012

2013 2014 2015 LeaseLevelIncome,M$

2016 Capex,M$

2017

17

*ProgramforCordilleraassetsonly.ProjectionsasofJanuary2012.

VISIBLEGROWTHPROFILEONACQUIREDACREAGE
60 NETPRODUCTION(MBOE/D) 50 40 30 20 10 PDP 0 2012 2013 2014 2015 2016 2017 2018 2019 DrillingProgram Acquisitioneconomicsonlyinclude~2,000ofthe potential14,000+identifiedlocations

Est.WellsDrilled:159194243234220325 263176 18

*Basedoncurrentproductionof18,000BOE/D

SUMMARY

Uniqueboltonopportunity moreofwhatweknowandlike Richinventorywithpremiumeconomics Visiblegrowthinlowrisk,repeatableplay Immediatelyaccretivetoallmetrics

AclassicApachetransaction:
Negotiated.Conservativelyfinanced. Returnsfocused.Accretive.
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QUESTIONS