Company ProfileProduced By: John Nowicki, Marissa Tebeau, Grace Dawson Beatty, Kenisha Webb, Melissa Estepp, and Sam Morgan

Introduction Pg. 3

AnadarkoExecutive Summary Pg. 4Overview Pg. 6Leadership Pg. 7-10Industry Overview Pg. 11-12Sponsorship Pg. 13Competition Pg. 14Competition and Sponsorship Pg. 15Marketing Pg. 16Community Involvement Pg. 17-18Awards Pg. 19Lawsuits Pg. 20Influence & Lobbying Pg. 21Future Plans Pg. 22

ApacheExecutive Summary Pg. 24Overview Pg. 25SWOT Analysis Pg. 26Leadership Pg. 27-29Marketing Leadership Pg. 30-31Marketing Pg. 32-33Event Sponsorship Pg. 34Involvement in Sports Pg. 35Community Involvement Pg. 36-38Awards Pg. 39Customers and Competitors Pg. 40Competition Pg. 41Regulations and Pricing Pg. 42Company Risk Factors Pg. 43-44Uncertainty in Egypt Pg. 45Lawsuits Pg. 46-48Lobbying Information Pg. 49Future Pg. 50

Table of Contents

This report was conducted in order to better understand two potential energy companies and their possible alignment with a sport sponsorship in the future. Based on that proposed task, an analysis of two pre-selected companies, Anadarko and Apache, was conducted. The reports provide information on both companies and compares them within their industries. Upon further exploration, the group decided to separate the findings into sections based on the backgrounds of the company, leadership roles, competitors, community involvement, marketing and sponsorship initiatives, lawsuits, awards, and future plans.

Anadarko and Apache are two are of the largest independent Oil and Gas companies in the World. Anadarko takes pride in their three main segments: Oil and Gas exploration and production, midstream, and marketing. Apache focuses on natural gas, crude oil and natural gas liquids. We identified key aspects from each of the above sections through research that included, but was not limited to, the annual reports and corporate websites. Links are provided within the document for additional information on the included topic.

We would like to thank-you for the opportunity to take part in this marketing research project. Please follow up with any additional information that you may need.

Introduction

Executive Summary

As an international, independent exploration and production company, Anadarko strives to develop, acquire, and explore for oil and natural- gas resources. 2013 was successful in many ways for the company of 5,700 employees. Led by CEO, R.A. Walker, Anadarko experienced record sales volumes, 285 million barrels of oil equivalent with $4.5 billion of asset sales. Mega-projects, like El Merk in Algeria were also achieved. Also, Anadarko ranked #3 in the nation for workplaces with over 1,000 employees. On April 3, 2014 the company settled the Tronox Case by agreeing to pay $5.15 billion to settle fraud claims from the 2006 acquisition, making it the largest environmental settlement won by the U.S. government. R.A. Walker continues to ensure that even through this lawsuit Anadarko will work aggressively to protect stakeholder’s interest.

In addition to the Tronox Case, the company is constantly combating anti-fracking campaigns. Therefore, in 2013 Anadarko joined forces with Noble Corporation to form the Coloradans for Responsible Energy Development, CRED, to provide scientifically sound information about fracking. CRED has spent $2.4 million between the months of October-March on this public relations campaign.

Through the website, social media, and press releases Anadarko places emphasis on its living values: caring for the natural environment, helping eradicate hunger, supporting development, fostering education, promoting conversation, and donation to emergency relief & financial support through volunteering, acting, and giving.

Currently, the company is looking to expand in Africa and Asia, especially in Mozambique and Japan. Also, since the Wattenberg Horizontal program in northeast Colorado generates the strongest return in Anadarko's portfolio, the company plans to employ 13 horizontal rigs to help improve efficiency.

Executive Summary

Anadarko Cover

COMPANY PROFILE

Overview

Anadarko is among the world’s largest independent exploration and production companies. There are approximately 5,700 employees and the company is headquartered in The Woodlands, SPD Montgomery County,Texas. As of December 2013, they had 2.8 billion barrels of oil equivalent (BOE) of proved reserves.

The company’s mission is to deliver a competitive and sustainable rate of return to shareholders by developing, acquiring, and exploring for oil and natural-gas resources vital to the world's health and welfare. Through all of their activities , Anadarko is committed to the following core values: integrity and trust, servant leadership, people and passion, commercial focus, and open communication in all business activities

Strategy• Explore in high-potential, proven basins• Identify and commercialize resources• Employ a global business development approach• Ensure financial discipline and flexibility

Reporting segments• Oil and gas exploration and production• Midstream• Marketing

OperationsUnited States

• Oil and natural-gas exploration and production onshore in the Lower 48 States, the deepwater Gulf of Mexico, and onshore Alaska

• Accounted for 89% of total sales volume in 2013 & 90% of proved reserves

International• Located in Mozambique, Algeria, Ghana, and China• Exploration acreage in Ghana, Mozambique, Brazil, Liberia, Sierra Leone, Kenya,

Côte d’Ivoire, China, New Zealand, Colombia, South Africa, and other countries.• 11% total sales volumes and 26% of sales revenues during 2013 & 10% of total

proved reserves.

Leadership

R.A. WalkerPresident and CEO

EducationBS, Business Administration, University of TulsaMBA, University of Tulsa

● Joined in 2005 as Sr. VP and CFO● Served as president and COO prior to becoming CEO● Director of CenterPoint, Inc. and BOK Financial Corporation● On Board of Trustees for Houston Museum of Natural Science

Mario M. Coll, III Senior Vice President and CIO

EducationBS, Petroleum Engineering, Texas A&M University

● Joined in 2004● Serves on Woodlands Board of Directors,

Member of Society of Petroleum Engineers Family Information

● Oldest son, Mario IV, is a Petroleum Engineering major at Texas A&M University Middle son, Joey, is a Biomedical Engineering major at Texas A&M University Youngest son, Jake, is a junior at Woodlands High SchoolArticle : “A Day in the Life of Mario M. Coll, III”

Robert G. GwinExecutive Vice President and CFO

EducationBS, University of Southern CaliforniaMBA, Duke University

• Chartered Financial Analyst (CFA), CFA Institute● joined Anadarko in 2006 as VP, Finance and Treasurer● Named Sr. VP in 2008 at Anadarko

Leadership

Robert K ReevesChief Administrative Officer, Executive VP and General Counsel

EducationJuris Doctorate & BA, Business Administration, Louisiana State University

• Member of Texas & Louisiana State Bar Association, • American Bar Association, American Corporate Counsel Association

Robert P. Daniels Executive Vice President of international and Deepwater Exploration

EducationBachelor Degree, Economics, The Colorado College

• MS, Petroleum Geology, Colorado School of Mines• Graduate of Advanced Management Program, Harvard University

Charles A Meloy Executive Vice President of US Onshore Exploration and Production

EducationBS, Chemical Engineering, Texas A&M University

• Member of Society of Petroleum Engineers and Texas Professional Engineers

John BretzVice President of Marketing Facebook

EducationBachelor of Chemical Engineering, Tulane University MBA, Tulane University

● From Baton Rouge, LA● Boy Scouts of America Charter Member● Eagle Scout Association Charter Member

○ Became Eagle Scout May 21, 2009, Troop 180● Society Fellow Honors Roll, Freeman School of Business at

Tulane University, 2013 ○ Donated between $5,000-9,999

Steve HoyleVice President LNG Marketing and Shipping LinkedIn

EducationBachelor of Accountancy, University of South Australia

• Certified Practicing Accountant ● Spoke at Mozambique Gas Summit in 2013● Primary focus on marketing and shipping of gas in Mozambique

Leadership

A. Scott Moore Vice President of Worldwide Marketing

EducationBS, Chemical Engineering, University of ColoradoMS, Mineral Economics, Colorado School of Mines

Other InvolvementAssistant chair of Coordinating Subcommittee for National Petroleum Council

• Currently studying Prudent Development of North American Gas and Oil resources• Past Chairman of the Board of Directors of Colorado Oil and gas Association• Member of Board of Directors of Western Energy Alliance and of Natural Gas

Supply Association

Family informationDad : Scott Moore Sr. (passed away in 2007)

• well-known real estate developer that helped build Denver, CO shopping pavillion• Article about father

Chris Skoog Sr. Marketing Operations Analyst- Natural Gas Liquids

EducationBS, Finance and Accounting, Drake University MBA with a focus on business strategy and

management consulting, University of Denver

Previous Work• Sr. National Gas Commercial Marketing Rep, Anadarko (2011-2012)• Marketing Operations Analyst, Anadarko (2007-2011)• Revenue Accountant, Anadarko (2006-2007)• Part-Time on air, KDSN FM 107.1 AM 1530 Radio Station (1999-2002)

InterestsSkiing, Hiking, Backpacking

Leadership

Industry Overview

Independent Oil & GasThe Oil & Gas Exploration & Production industry consists of companies that are engagedin the exploration and extraction of crude petroleum and natural gas. The industry alsoconsists of the recovery of butane, ethane and natural liquefied petroleum gases (LPG)recovered from oil and gas fields. The Oil & Gas Exploration and Production industryexcludes exploration services on a contract basis, classified in Oil Related Services &Equipment; and exploration and production with substantial refining operations,classifiedin Integrated Oil & Gas. (annual report, pg.2)

Midstream Within this segment, the company owns and operates gathering, processing, treating, andtransportation systems in the United States for natural gas, crude oil, and NGLs (annualreport, pg.2).In its simplest terms the midstream industry can be described as the part ofthe process which involves the shipping and storage of the oil.

Anadarko invests in midstream to complement its operations in regions where thecompany has oil and natural-gas production. (annual report, pg.21) The Midstream Sectorof the oil industry has a major economic impact on a varied array of people, companies,and even countries worldwide. It is a huge, vital sector which successfully handles one ofthe most difficult logistical challenges in the world.

MarketingThis segment sells most of Anadarko’s production, as well as third-party purchased volumes. The company actively markets oil, natural gas, and NGLs in the United States;oil from Algeria, China, Ghana; and anticipated LNG production from Mozambique. (Annualreport, pg.2) In Marketing its production, the company attempts to minimizemarket-related shut-ins, maximize realized prices, and manage credit-risk exposure. Thecompany sells its products under a variety of contract structures including indexed,fixed-price, and cost-escalation-based agreements. (annual report, pg. 23)

Customer Overview Anadarko’s portfolio encompasses premier positions in nearly a dozen major U.S. onshore resource plays. We're an asset-based company, and when it comes to the supply and marketing of natural gas, natural gas liquids (NGLs), crude oil, and liquified natural gas (LNG) we combined a skilled staff with upstream expertise. This important combination results in creative, asset-backed strategies that provide a wide array of services to meet customer needs. Anadarko has producing and midstream assets ranging from Africa and China to the deepwater Gulf of Mexico, U.S. shales and the Rockies. This breadth and diversity lets us provide a robust supply capability to our customers

● Objective: Bring energy commodities to market, while enhancing value at both

ends of the pipeline to maximize value for our customers and help manage their

energy needs.

● Focus: By focusing on core operations, Anadarko is one of the most creative and

competitive energy providers, offering a full range of tailored services.

● Perspective: Create better opportunities by networking throughout the industry

and base decisions on how to best build long-term value.

● People: Teamwork and internal integration promote seamless transactions,

resulting in quick response and creative deal structures.

SWOT Analysis--Based on Anadarko vs the Oil and Production Industry (Provided by marketline.com)

Industry Overview

Strengths Weaknesses

Significant hydrocarbon reservesGlobally diversified operationsExpertise in use of advanced technologiesExtensive customer base

Legal ProceedingsConcentration of operations in the US

Opportunities Threats

Expansion of midstream operationsIncreased oil and gas production from shale plays

Adoption of derivatives legislation by the US CongressGovernment RegulationsDrilling Risk

Sponsorships

Nugget for a Day with the Denver Nuggets Encourages kids, who may not be straight-A students or All-State athletes, to continue to strive for improvement

Winners receive an official game-day itinerary, a visit to a Nuggets practice, game tickets and dinner inside the Conoco suite at Pepsi Center and in-game recognition

Houston AstrosEmployee ticket discount

Northern Colorado Stage of the USA Pro ChallengeLocal partner (2nd highest level) for the 2103 race

HUNDOSupports youth biking & building trails

Endurance Rider (2nd highest level)

4th of July CelebrationPresented the fourth annual Independence Eve concert and fireworks show in Civic Center Park in Denver.

Anadarko and its Denver-area employees have supported the Civic Center Conservancy-event since its inception.

Competition

Direct Competitors• BP plc• ConocoPhillips• Exxon Mobil Corporation Energy companies

• BP plc• Exxon Mobil Corporation • Total SA • Chevron Corporation • ConocoPhillips • Petróleos de Venezuela S.A. • Petróleos Mexicanos • Eni SpA E • Repsol, S.A. Utility companies (US ONLY)

• Exelon Corporation • American Electric Power Co., Inc. • FirstEnergy Corp. • Edison International • Dominion Resources, Inc. • Southern Company • Public Service Enterprise Group Inc. • PG&E Corporation • Consolidated Edison, Inc. • CenterPoint Energy, Inc.

More information about a number of Apache’s competitors can be found at http://www.nasdaq.com/symbol/apa/competitors?page=9 andhttp://financials.morningstar.com/competitors/industry-peer.action?t=APA&region=usa&culture=en-US

Competition and Sponsorship

Sports sponsorships that a few competitors have done in the past and/or are currently doing:

ConocoPhillipsUSA Swimming-Supporter of “Make a Splash Campaign”

Allows thousands of children – who would otherwise not have the opportunity – the ability to take swimming lessons. Additionally, ConocoPhillips is also the title sponsor of the ConocoPhillips USA Swimming National Championships, the marquee domestic event of the year for swimming.

Presenting Sponsor of Fairbanks 2014 Arctic Winter Games Opening Ceremony

BPPresenting Sponsors for all teams listed below (more info here)

● MLB-Cleveland Indians, Chicago Cubs, Chicago White Sox● NFL-Chicago Bears● Olympics

- Donated $1 Million to US Olympic Training Center and Paralympic Programs

EOG Resources IncSan Angelo Claybird Association (SACA)--shooting event for the Texas Scottish Rite Hospital for Children

Devon Energy Corp● Access sports (youth sports organization)-sponsors 2 awards● Portage College-Sports & Education Dinner and Kid’s Carnival● Kevin Durant Family Foundation-The Devon Energy KD35 Ball

an inaugural fundraiser benefiting the newly formed Kevin Durant Family Foundation

Marketing

The Coloradans for Responsible Energy Development, CRED, was formed in September 2013 by Anadarko and Noble to provide scientifically sound information about fracking. It is a 501(c) 6 non-profit organization governed by a board of directors and counseled by an Advisory Committee with a strong commitment to the state of Colorado and its local communities. Both companies have spent significant advertising dollars to raise awareness about this organization.

"Since its inception in September 2013, the group has been plastering Colorado's airwaves, public buses and mailboxes with paid advertising," says a blog post on the center's website. "But until now, Coloradans have had no sense of just how much money the group is spending on this massive public relations campaign." CRED has spent $2.4 million between October-March, which does not include spending on online advertising and ads on buses.

CRED MultimediaTelevision- 6 commercials

Radio- 3 radio ads

• The official ad launch was on the Denver Bronco’s pregame show on KOA-850 AM, which was the first game of the NFL season

• CRED spokesperson, Jon Haubert said, “Anything with the Denver Broncos is a great vehicle to get the word out.”

Videos• CRED partnered with Volunteers of America and CBS4 for Wine, Women, &

Football, which raised $40,000 for a shelter that supports battered women and children. Denver Broncos players made an appearance to help teach women about football.

• Hydraulic Fracturing 101 explains the purpose, logistics, and benefits of fracking.

Newspaper- ads in 2 special sections of Colorado’s largest newspaper

Blog

Anadardo’s Social Media SnapshotYouTube: Anadarko TV

• Facebook: 486 subscribers• 113 videos: community, corporate, global operations, safety and environment,

awards and recognition

Facebook: 5,781 likes

LinkedIn: 53, 164 followers and 4,391 employees

Community Involvement

“We recognize our obligation to protect our environment, public health and our communities, while finding and producing the vital energy resources we all need.”

Living Values

Caring for Natural EnvironmentRestoration

• Partnered with the Northcentral Pennsylvania Conservancy, the Fish and Boat Commission to conduct a stream bank restoration.

• Worked with the North Front Range Chapter of the Mule Deer Foundation in Wyoming to provide funding that restores habitat in this wildlife area.

Reclamation• Powder River Basin in Wyoming topsoil restoration, implementation of

erosion-control features andWildlife Protection

• Donations enabled the National Wild Turkey Federation to conduct habitat improvement projects in three state forests in Pennsylvania.

Conservation• The Houston Zoo’s Houston Toad Conservation Program is

focused on saving this endangered species

Helping Eradicate HungerCommunity Leadership & food security

• “Just Can It” campaign at headquarters raised an equivalent of 190,400 meals in 2013

Supporting DevelopmentHousing

• Employees in Denver helped build 20 of the first houses in a green housing complex for Habitat for Humanity

Community InvolvementFostering EducationGrants from the Anadarko Foundation have helped fund:

• The Anadarko Petroleum Corporation Energy Resource Recovery Program at the University of Wyoming

• The Robert H. Williams Classroom and Anadarko Industrial Technology Building at Utah State University

• The renovation of the Joe C. Richardson Petroleum Engineering Building at Texas A&M University

• The Luke R. Corbett Scholarship Fund and Luke R. Corbett Chair in Exploration and Development Geosciences at the University of Oklahoma College of Earth and Energy

• The construction of Marquez Hall, a petroleum engineering facility at the Colorado School of Mines

Junior Achievement Program• More than 100 volunteers in The Woodlands, and Denver teach children lessons in

business and free enterprise

Promoting Conservation• Leadership in Energy and Environmental Design (LEED) Silver Certification for its

Timberloch. • Encourages and provides a subsidy to employees who participate in the Van Pool

program in Texas or the Rail Pass in Denver.

Donation to Emergency Relief & Financial Support United Way

• Employee donations reached 2.75 million in 2013

Food Bank• Annual cake auction that raised $125,000 for Montgomery County

MS150• Employees have raised $244,000 in 2014

Anadarko community grants are generally not given to:

• Organizations that are not 501(c)(3) organizations• Organizations that are not geographically located in an area where Anadarko

operates• Individuals, sporting events or organizations• Film and video projects• Individual United Way agencies. Anadarko supports area United Way campaigns

throughout North America.

Awards

All-American Executive Team Awards- 2014• Recognition for the fourth consecutive year by oil and gas E&P sector analysts for

investor relations leadership

Top 50 Employers- 2014• Based on reader surveys for which they would most like to work or believe provide a

positive working environment for minority engineers

Environmental Initiative of the Year-2013• Technological development that helps enhance environmental performance in the

Marcellus Shale

Nation's Top Workplaces- 2013• #3 overall U.S. companies with more than 1,000 employees

E&P Company of the Year- Carthage/Haynesville- 2013• Recognized the operational performance of the company's Carthage and East Texas

assets for increasing production and reserves.

Most Innovative Companies- 2012• # 73 on Forbes Top 100

2013 Achievements

• Reported record sales volumes, including a 7% year-over-year increase in daily sales volumes over 2012

• Accelerated approximately $4.5 billion of value through asset monetizations• Achieved first oil at the El Merk mega project in Algeria• Advanced multiple large-scale developments with the installation of the Lucius spar in

the Gulf of Mexico, sanctioning of the Heidelberg project in the Gulf and the TEN development offshore Ghana.

• Increased shareholder yield by doubling the common dividend• Built upon our industry-leading exploration track record with a 67% deepwater

exploration/appraisal success rate

Complete award and achievement list

LawsuitsTronox Case

• Anadarko agreed to pay $5.15 billion on April 3, 2014 to settle fraud claims from a 2006

acquisition, making it the largest environmental settlement won by the U.S. government.

• The deal extracted a much heavier price than Anadarko had envisioned, but investors

rejoiced at the resolution of a liability that could have run as high as $14 billion.

• News of the agreement sent shares up by 14.5% the day after the announcement.

• The settlement spares Anadarko from further litigation involving Tronox Inc. a chemical

maker once owned by a subsidiary of the company, and the U.S. Department of Justice.

Tronox and federal prosecutors claimed that Kerr-McGee Corp. spun off its chemicals unit

into Tronox just before being acquired by Anadarko. They alleged this move unfairly

saddled Tronox with liabilities that ultimately bankrupted it in 2009 and allowed Anadarko

to skirt environmental obligations.

• In December, a bankruptcy judge sided with Tronox creditors and found Anadarko liable

for between $5.2 billion and $14.2 billion, a ruling that jolted settlement discussions into

high gear, according to analysts and people involved in the case.

• The settlement prompted some analysts to speculate that Anadarko Petroleum could be

swallowed up by integrated oil major or merge with another independent oil producer.

Deepwater Horizon

• The Justice Department made the push for the Woodlands-based Anadarko to be held responsible along with BP for the April 20, 2010, drilling disaster and rig explosion that killed 11 workers and led to the nation’s worst offshore oil leak.

• Anadarko had 25 percent working interest in the Macondo Prospect, which was operated

by BP and its finances were affected by the Deepwater Horizon oil spill.

• A federal judge found that Anadarko Petroleum Corp. was not culpable in the well-drilling

operations that led to the 2010 Deepwater Horizon tragedy in the Gulf of Mexico.

View all Lawsuits on annual report, pg. 48

View all Risks on annual report, pg. 33

Influence & Lobbying

2013Total Contributions: $123,372

- Candidates: $94, 372

- Leadership PACs: $15,750

- Parties: $55, 750

- 527 committees: $0

- Ranks 1,110 of 14,120

Top Recipient of Anadarko’s Contributions

Lobbying: $3,120,000- 7 out of 10 Anadarko lobbyists in 2013 have previously held government jobs- Ranks 169 out of 4,152

Outside spending: $0

See full report from opensecrets.org

Future Plans

Domestic Plans Anadarko plans to increase the number of horizontal wells drilled from 350 in 2013 to 400 in 2014 in Rocky Mountains

Anadarko expects to drill 14-18 wells in 2014 and 15-18 exploration/appraisal wells in 2014 (pg 14 of Annual Report)

In 2014, the Company plans to employ 13 horizontal rigs in the Wattenberg field and expects wells drilled to increase as a result of the increased number of rigs operating in the area and from improved drilling efficiencies and cycle times. (pg. 9 of Annual Report)

International Plans - Anadarko is looking to expand in Asia

- The company has Invested in Liquified gas in Mozambique

- Out of $8.5 billion used for production capital, 30% is being used for Permian Basin

- Anadarko has drilled more than 20 wells in Mozambique

- Most buyers are located in Asia, because of this Asian demand has risen eight-fold in a three decade period

Anadarko Seals a Deal with Mozambique (2014)Anadarko looking into expansion in Japan (2013)

Company Profile

ExecutiveSummary

Under the newly appointed leadership of G. Steven Farris, the independent energy company, Apache Corporation, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. A prominent global company, Apache operates in six countries including the United States, Canada, Egypt, Australia, the U.K. North Sea, and Argentina, providing over 5300 jobs worldwide. As of FY2012, Apache is the largest acreage holder with an ownership of 9.7 million gross acres in Egypt’s Western Desert.

Headquartered in Houston, Texas, Apache is the presenting sponsor of the Tour de Houston that took place in March of this past year. Funds raised were donated to the Houston Parks Board. Apache seeks to complete all business in and environmentally friendly way as not to disturb the surrounding communities. Apache often leads the way for industry through innovative thinking and technological advancements while they work to minimize their developmental footprint.

With an eye on their future and shareholders, Apache plans to grow their portfolio by increasing onshore North American liquids production that provides for more predictable attractive rates of return, generating excess cash flow from their international operations, and continuing longer-term growth initiatives, which includes their Wheatstone and Kitimat LNG projects.

Highlights from 2013 include:

● Closing more than $7 billion in asset sales and monetizations;● Repurchasing $1 billion of company shares in the open market;● Paying down $2.6 billion in debt to enhance our financial flexibility;● Generating $9.8 billion in operating cash flow; and● Returning capital to shareholders by increasing Apache’s dividend 18

percent in 2013.

In 2014 the board of directors increased the dividend an additional 25 percent, providing an annualized rate of $1 per share.

Overview

Apache Corporation, A Delaware corporation formed in 1954, is an independent energy company that explores for, develops, and produces natural gas, crude oil, and natural gas liquids.

As of December 31, 2013, Apache employs 5,342 people worldwide.

Apaches principal executive offices are located in Houston, Texas at One Post Oak Central, 2000 Post Oak Boulevard, Suite 100. Apaches chooses to lease all offices. Other office locations include Oklahoma, Texas, Alberta, Egypt, Western Australia, Scotland, and Argentina.

Mission

Apaches mission is to grow a profitable global exploration and production company in a safe and environmentally responsible manner for the long term benefit of our shareholders. Apache’s long term perspective includes the focus on a diverse portfolio of core assets, conservative capital structure, and focus on their rate of return.

Growth Strategy

Apache moving forward will be centered around increasing onshore North American liquids production that provides for more predictable and attractive rates of return, generating excess cash flow from their international operations, and continuing longer-term growth initiatives specifically Wheatstone and Kitimat LNG projects.

Core Values

Since 1954, Apache has built a team unified by values, commitment to building shareholder value and Apache’s culture, which empowers every employee to make decisions and achieve the company’s goals. Apache’s global team is brought together by a sense of ownership and the knowledge that the best answers win. Core values include the drive to succeed with a sense of urgency; Foster a contrarian spirit; Invest in their greatest asset: their people; Expect top performance and innovation; Treat stakeholders with respect and dignity; Safety is not negotiable and will not be compromised; Understand that they derive benefit from the Earth and take their environmental responsibility seriously; and conduct their business with honesty and integrity.

Locations

Apache is located in six different countries including the United States, Canada, Egypt, Australia, the U.K. North Sea, and Argentina. Apache continues to explore other countries for product discovery. In 2013, international assets contributed 42 percent of their production and 50 percent of their oil and gas revenues.

Customers

Apache two major customers include Royal Dutch Shell and Vitol Group making up over 25 percent of total sales.

Recent Organizational Changes

Roger Plank, President and Chief Corporate Officer, has decided to retire after more than three decades with Apache. Chairman and CEO G. Steven Farris adds the title of President, and Alfonso Leon, now executive vice president and CFO, is taking over Plank's duties. (Houston Business Journal)

SWOT Analysis

Apache is an independent energy company that explores for, develops, and produces natural gas,crude oil, and NGL. Apache's oil and gas assets are strategically located in some of the world’s rich oil and gas basins including the Permian Basin and the Gulf of Mexico. The company also holds oil and gas assets across the world including Egypt, offshore Western Australia, offshore UK in the North Sea, and onshore Argentina. Such potential assets allow the company to increase its production volumes and develop its business further. However, uncertainty in oil and natural gas prices would restrict Apache’s ability to continue the level of exploration and production activity which could have a material adverse effect on its revenues, cash flows, and results of operations.

Strengths Weaknesses

High quality oil and gas assets

Application of technology

Significant international presence

Dependence on third party for pipeline in gathering system

Greater concentration of offshore operations

Opportunities Threats

Expansion in the acreage position

Increased focus on liquids production from North American onshore operations

Increasing production from shale plays

Volatile nature of crude oil and natural gas prices

Environmental compliance costs

Uncertain political climate in Egypt

Additional information regarding the SWOT Analysis for Apache Corporation can be found at: http://web.a.ebscohost.com.proxy.library.ohiou.edu/ehost/pdfviewer/pdfviewer?vid=3&sid=71191375-cb8e-46b3-88ab-0015d2f4c48a%40sessionmgr4004&hid=4212

Leadership

G. STEVEN FARRIS, 65Chairman, Chief Executive Officer and President · In February 2014, Mr. Farris also assumed the title of president.· Board of Directors 1994 - Present· CEO May 2002 - Present· President and COO from May 1994 to February 2009· Senior vice president from 1991 -1994· Vice president — Exploration and Production 1988 - 1991Previous Companies: · VP of Finance & Business Development, Terra Resources, Inc. 1983-1988· Executive vice president of Robert W. Berry, Inc.Involvement:· Member of the Board of Visitors of M.D. Anderson Cancer Center, Houston, TX· Founding member on the executive committee of America’s Natural Gas Alliance.· Trustee of the Ucross Foundation in Clearmont, WY. 1999 - Present· Co-chairman of the U.S.-Egypt Business Council· Board of directors of Fund for Teachers· Father Died of Lung CancerEducation: · Bachelors Degree – Oklahoma State University, Football Player - Linebacker

JOHN J. CHRISTMANN, IV, 47 VP & COO of North AmericaLinkedIn· EVP and COO – North America, effective Jan. 1, 2014· Region vice president – Permian Region, from 2010 through 2013.· Vice president – Business Development, January 2004]Production manager for the Gulf Coast Region since April 2003.· Business development 1997 - 2003Previous Companies: · Vastar Resources/ARCO Oil and Gas Company in business development, crude oil marketing and engineering assignments.Education:· Bachelor’s degree in petroleum engineering from the Colorado School of Mines· MBA from Southern Methodist University.

MARK J. BRIGHT, 52 LinkedInVP of North America Oil & Gas Marketing

· Vice president – North America Oil and Gas Marketing in March 2011. · Finance and Organizational Leadership Development 1999 - 2011Education:· Accounting and management degrees from Southeast Missouri State University· Certified public accountant with 27 years of industry experience,Previous Companies: Sonat Exploration Co. and Texas Oil and Gas. Other Information: Birthday: May 2nd

Leadership

THOMAS E. VOYTOVICH, 57 Vice President & COO – InternationalLinkedIn

· EVP & COO – International, effective Jan. 1, 2014, having been· EVP – International Operations, since February 2013· Regional vice president and general manager in Egypt since June 2009.· Regional vice president for the Central Region in Tulsa, Okla., since March 2006, regional exploration manager for the Central Region since May 2004, and in various technical positions with the company in Tulsa beginning in March 1993.Previous Companies: · Hillin-Simon Oil Company, Berexco Inc., Petro-Lewis Corporation, and Shell Oil Company from 1978 to 1993.Education:· Bachelor’s degree in geological engineering from Michigan Tech in 1978.· Stanford University Graduate School of Business – Executive Program 2012

ALFONSO LEON, 37 Executive VP & CFOLinkedIn· Executive vice president and chief financial officer in February 2014.· Senior vice president and chief of staff since August 2012· Vice president – Planning and Strategy since November 2011,· Vice president – Planning, Strategy, and Investor Relations since November 2010· Director of Strategic Planning since March 2009.Previous Companies: · Director and head of energy investment banking at Perella Weinberg Partners 2006-2009.· Corporate strategy, planning, and business development roles at Royal Dutch Shell.Education:· Bachelor's degree from Harvard University· MBA from Harvard Business School.

DAVE R. GILBRONSON, 55VP of International Oil & Gas · VP – International Oil and Gas Marketing in March 2011. · VP of commercial and governmental affairs in Argentina· Operations general manager for Apache Egypt Companies, managing director of Apache Poland· Director of international technical services based in Houston.

Leadership

ROBERT J. DYE, 59 SVP – Global Communications & Corporate AffairsLinkedIn· SVP – Global Communications and Corporate Affairs in November 2010.· VP – Corporate Services since March 2009· VP – Investor Relations since May 1997· Director of Investor Relations since 1995, and held positions of increasing responsibility in the company’s corporate planning area since 1992.Previous Companies:· Dye was planning manager for the offshore division of BP Exploration, Houston, Texas, from 1988 - 1992.Education:· Chemical engineering graduate from the University of Oklahoma· MBA from Stanford University.Other Involvement: He serves on the board of advisors for the School of Chemical, Biological and Materials Engineering at the University of Oklahoma. Robert Plank, 56 Retired President and COOLinkedInMr. Plank resigned as President and Chief Corporate Officer, effective February 13, 2014.· Appointed president and COO in February 2011· President since February 2009· Company's principal financial officer until November 2010.· EVP and COO since May 2000· VP and CFO since July 1997.· 1981 - 1997 Vice president - planning and corporate development, vice president - corporate planning, and vice president - corporate communications. Involvement:· Chairman of the board of the Alley Theatre, Houston, Texas, and is a past president of Texas Independent Producers and Royalty Owners Association (TIPRO), a large independent trade association.· Director of Parker Drilling Company, Houston, Texas, chairman of its compensation committee.

CHERI L. PEPER, 59Corporate Secretary Corporate secretary in May 1995, having previously served as assistant secretary since 1992.Previous Companies: · Assistant secretary for Panhandle Eastern Corporation (subsequently PanEnergy Corp.) since 1988.· Certified public accountant and a director of MemberSource Credit Union, formerly known as PT&T Federal Credit Union.Education: She graduated cum laude from the University of Houston.

Marketing Leadership

JANINE J. MCARDLE, 53 VP Worldwide Oil & Gas MarketingLinkedIn

Senior vice president – Gas Monetization in September 2010, having been vice president - Oil and Gas Marketing since November 2002. Previous Companies:· Managing director for Aquila Europe Ltd from November 2001 to October 2002· Executive and management positions with Aquila Energy Marketing from 1993 - 2001· VP - Trading and vice president - Mergers and Acquisitions.· Partner Hesse Gas from 1991 to 1993, a member of the board of directors of Intercontinental Exchange, 2000 to October 2002.Involvement:· Currently serves on the board of the Palmer Drug Abuse Program.Education:· Bachelor’s degree in chemical engineering from the University of Nebraska· Master of Business Administration from the University of Houston.

Marketing Staff

Blanca DaughertyManager, US Gas MarketingPrevious Companies: Segabi energy, Arclight Energy, Enron Energy servicesEducation: University of Texas at Austin

JoAnn Van Buren LinkedInNatural Gas Marketing - Mid Continent, Chicago, Gulf OnshoreEducation: University of Colorado at Boulder – Finance & International Business

Kelley PowellNatural Gas Marketing - Permian

Morgan Gottsponer LinkedInGas Sales OriginatorMarketing Area: GTNU.S. Gas Marketing – 2003-PresentPrevious Companies:Enron: Trader 1989-2001

Marketing Leadership

Schedulers

Keith AdmireMarketing SchedulerLinkedInFacebookMarketing – 2006- Present Previous Companies:Coast Energy, Financial Trader – 1999-2002Sonat, Trader – 1996-1999Tenneco, Scheduler – 1994-1996Eye Care of America, Marketing Manager – 1990-1993 Education: Texas State University-San Marcos, BA Marketing 1987

Brenda GaudetSupervisorLinkedInFacebook

New Orleans Saints Fan

Education: Louisiana Tech University 1985Boothville-Venice High School From: Venice, LouisianaLives in: Sugar Land, TexasBirthday: March 31st

Janelle WalterLead Gas SchedulerLinkedInFacebook Damian Walter - Son Education: Jesse H. Jones High School 1980Lives in: Houston, Texas

Ryan SnappMarketing Scheduler

Marketing

North American Marketing

United States: Apache primarily markets its U.S. crude oil to integrated major oil companies, marketing and transportation companies, and refiners based on a West Texas Intermediate (WTI) price, adjusted for quality, transportation and a market-reflective differential.

The objective is to maximize the value of crude oil sold by identifying the best markets and most economical transportation routes available to move the product.

To support its natural gas-powered fleet, the company operates 20 CNG fueling stations in Texas, Oklahoma, New Mexico and Louisiana. Six of these are public-access stations and the private facilities are available to other area fleets by agreements with the company.

“Four years ago, Steve Farris (chairman and chief executive officer) and Roger Plank (president and chief corporate officer) had a shared vision that Apache should become a leader in promoting natural gas as the alternative transportation fuel of choice,” said Frank Chapel, director of Natural Gas Transportation Fuels. “That vision is becoming a reality.”

Canada: Marketing Our Canadian natural gas marketing activities focus on sales to utilities, end-users, integrated major oil companies, supply aggregators, and marketers. We maintain a diverse client portfolio, which is intended to reduce the concentration of credit risk in our portfolio.

International Marketing

Overview: Apache’s international assets are located in Egypt, Australia, offshore the U.K. in the North Sea, and Argentina. In 2013, international assets contributed 42 percent of our production and 50 percent of our oil and gas revenues. At year-end 2013, 32 percent of our estimated proved reserves were located outside North America.

Egypt: Marketing our gas production is sold to EGPC primarily under an industry-pricing formula, a sliding scale based on Dated Brent crude oil with a minimum of $1.50 per MMBtu and a maximum of $2.65 per MMBtu, plus an upward adjustment for liquids content. The region averaged $2.99 per Mcf in 2013.

Australian: Marketing Western Australia has historically had a local market for natural gas with a limited number of buyers and sellers resulting in sales under mostly long-term, fixed-price contracts, many of which contain periodic price revision clauses based on either the Australian consumer price index or a commodity linkage. As of December 31, 2013, Apache had 21 active gas contracts in Australia with expiration dates ranging from August 2014 to December 2026.

Marketing International Marketing (continued)North Sea (U.K): Traditionally sold our North Sea crude oil under both term contracts and spot cargoes. The Forties term sales are composed of a market-based index price plus a premium, which reflects the higher market value for term arrangements. The prices received for Beryl spot cargoes are market driven and can trade at a premium to the market-based index.

Argentina: Apache had a continuous presence in Argentina since 2001 and have grown our holdings in the region through an active drilling program and targeted acquisitions. The region has active operations in the provinces of Neuquén, Río Negro, and Tierra del Fuego. As of year-end 2013, Apache held interests in 31 concessions, exploration permits, and other interests totaling 3.3 million gross acres in three of the main Argentine hydrocarbon basins: Neuquén, Austral, and Cuyo. These concessions have varying expiration dates ranging from one year to over 15 years remaining, subject to potential extensions.

Apache Corporation Digital Media

Facebook - Apache Corporation· 5,511 Likes

Twitter - Apache Twitter· 3,581 Followers· 418 Tweets

LinkedIn - Apache LinkedIn· 45,825 followers

YouTube – Apache YouTube· 18 Videos· 176 Subscribers· 21,273 Views

Apache Multimedia Center

Apache App

• Apache Corporation’s news, financial performance, global operations and 60-year history with its new Media and Investor Center (MIC) mobile app.

Event Sponsorship

Tour de Houston Presented by Apache Corporation

Tour de Houston Presented by Apache Corporation, the annual fundraising bike ride, will take place Sunday, March 16, 2014. Funds raised from this year’s ride will benefit Houston’s reforestation efforts through our nonprofit partner, Houston Parks Board.Tour de Houston Presented by Apache Corporation

Apache Sponsors U19 Women’s Egyptian National Basketball

The Apache-sponsored U19 Egyptian National Basketball Team for Girls battled its way to the 2011 FIBA U19 World Championship for Women held this summer in Puerto Montt, Chile

“Please accept the Egyptian Basketball Federation’s deepest gratitude and appreciation for (Apache’s) continuous support for our national teams,” said the federation’s Mohamed Abd El-Motaleb. Apache Sponsors U19 Women’s Egyptian National Basketball Team

Apache Rainbow Fishing Classic & The Apache Rainbow Challenge

Apache Alaska stepped up to the starting gate and helped the Tustumena 200 (T200) Sled Dog race continue its 30-year tradition. With 40 teams set to compete in the annual sled dog race, the purse was enhanced with help from the first Apache Rainbow Trout Fishing Classic. The Apache Rainbow Challenge raised more than $40,000 for the T200 event.

Apache Corporation Sponsors Wyoming Women’s Antelope Hunt · Apache Corporation, an oil and gas exploration and production company has signed on as a bronze sponsor for the Wyoming Women’s Antelope Hunt.· The Wyoming Women’s Antelope Hunt was developed by the Wyoming Women’s Foundation to promote women’s hunting and recreational activities on a national level and support the organization’s mission of economic self-sufficiency for women across Wyoming.

2013 Bright Light Foundation Golf Sponsorhttp://www.brightlightfoundation.org/sponsors.cfm

2013 Platinum Presenting Sponsor for AACC-Houston - Cost $40,000

2013 Platinum Sponsorship for AACC-Houston

Involvement in Sports

Although Apache themselves have not entered into the professional or collegiate sport world, their competitors as well as companies they work with have.

Chevron (Apache works with Chevron Canada)Chevron Havoline, the Official Motor Oil of the ACC and the ACC Network. Chevron Havoline - Motor Oil ACC

Chevron Houston Marathon Chevron Houston Marathon

ShellShell Motorsport is involved in F1 racing Shell Motorsport

Shell Advance, title sponsor of Malaysian Motorcycle Grand Prix Shell Advance

The Vitol GroupThe Vitol Group is involved with the Street Child World Cup.Vitol Group

Apache Beyond the Gas and Oil Industry

Apache works with Ayata, Prescriptive AnalyticsApache - Ayata Apache works with NetApp StorageApache - NetApp Storage Like to interact with investorsSeeking Alpha - Apache

ApacheApache went into a 50/50 joint venture partnership with Chevron Canada to build the Kitimat LNG project in December 2011.Apache - Chevron Canada

Community Involvement

To make the most effective use of Apache’s resources and expertise, Apache has developed a “give where we live” philosophy for corporate philanthropy. Our giving programs and volunteer activities are focused on the communities where our employees live, work and raise their families. Our programs are region based and employee driven, with decision-making authority residing in our various regions. Last year, Apache and its employees donated $13.4 million toward corporate outreach endeavors worldwide.

We continue our support for education and the arts as a benefactor of Fund for Teachers and the Ucross Foundation, as well as many other charities and organizations.

· Apache pledged $500,000 to build storm shelters and safe rooms for Oklahoma schools following the devastation caused by a deadly tornado in Moore, Okla.

· We also challenged corporations and individuals to donate by pledging to match the next $500,000 in donations.

· Apache has awarded 3.2 million trees to nonprofit organizations in 16 U.S. states to help enrich the communities where we operate. This past year, it awarded 484,780 trees.

· Throughout our operational regions, employees and other volunteers have reforested areas damaged by drought, tornadoes, fire and other natural disasters.

· Our senior executives have been actively involved in leadership positions on the boards of institutions such as the Ucross Foundation, the Alley Theatre, the Houston Museum of Natural Science, the Bayou City Arts Festival, the Museum of Fine Arts, Houston, and others.

Apache takes our environmental and social responsibilities seriously, often leading the way for industry through innovative thinking and technological advancements.

· We continually look for ways to decrease our use of surface water, reduce greenhouse gas emissions and minimize our developmental footprint.

Apache’s community outreach programs support numerous charitable and civic organizations around the world.

· From donating an ultrasound system in Argentina to funding cancer research in Canada to providing trees to drought-stricken areas of the United States, Apache is committed to making a positive impact in the communities where we live and work.

· In 2012, Apache and its employees donated more than $2.3 million in matching gift funds worldwide as part of the Apache Matching Gift Program. Apache matches employee contributions on a dollar-for-dollar basis up to $10,000 per employee per year.

Community Involvement

Teacher & Educational Programs

Apache has been a leader in promoting educational opportunities for teachers and students across the globe. Two of its most notable endeavors are Fund for Teachers and Springboard: Educating the Future.

· 5,000 teachers have been awarded $18 million in grants for fellowships as part of the Fund for Teachers program.

· Founded in 2001 by former Apache CEO and founder Raymond Plank, the program enriches the personal and professional growth of teachers by supporting them as they pursue opportunities around the globe that will have the greatest impact on their curriculum, their students and their schools.

· Fund for Teachers awards fellowships for self-designed professional growth. The fellowships have taken place in 124 countries and impacted 1.5 million students in 2,967 U.S. classrooms.

In Egypt, Apache has been on a mission to provide educational opportunities for children who might otherwise not have the prospect of going to school. The company’s partnership with Springboard: Educating the Future is making a positive impact.

· Support for the schools includes monitoring student performance, furnishing school supplies and providing building maintenance.

· Apache also has built 201 one-room schools attended by more than 6,000 girls and boys in remote rural areas of the country where educational opportunities are scarce.

· Apache and Springboard: Educating the Future have aligned with Egypt's National Council for Childhood and Motherhood and the Sawiris Foundation for Social Development to provide the educational prospects for children.

Employee Volunteer Efforts

Employees and their families regularly donate their time and effort to hundreds of charitable causes each year that are sponsored by the company.

· Charities supported by company employees include: Habitat for Humanity, Special Olympics, Houston Children’s Festival, Ronald McDonald House, End Hunger Network, Susan G. Komen Race for the Cure and many more.

· T.E.A.M. Apache, short for “Together Everyone Achieves More,” works to provide employees with meaningful volunteer opportunities that instill a sense of pride, ownership and accomplishment. These include company sponsorships of fun runs, walks and bike rides, health fairs and educational events, and numerous other charitable initiatives.

Corporate Grants

Apache has supported the arts since the inception of the company nearly 60 years ago. We provide high-impact grants for path-breaking initiatives and institutions, recognize excellence and join with our employees to provide grassroots support for community arts organizations.

· Apache has donated a total of $55 million to arts groups around the world including direct cash grants, employee matching gifts and in-kind contributions.

· In 2012, Apache donated more than $1 million – approximately 10 percent of the corporate outreach budget – to arts organizations.

The same selfless attributes that drive Apache’s charitable efforts are bringing new ideas to the company’s corporate and regional outreach and wellness programs worldwide.

· In the North Sea Region, an employee-driven program to place higher prices on tobacco products on offshore platforms to encourage employees to quit smoking is paying dividends for a planned cancer caring center in Aberdeen, Scotland.

· With the excess proceeds from offshore tobacco sales and Apache’s corporate contributions totaling about $500,000, Apache has emerged as the leading contributor to the campaign to build a Maggie’s Cancer Caring Centre in Aberdeen. A foundation established by Scottish golfer Colin Montgomerie is directing the $5 million campaign.

· In Australia, Apache has committed funding to the Liaising, Informing and Networking for Carers (LINC) Program. LINC provides advocacy and case coordination for families caring for children with life-limiting illnesses and/or complex medical needs.

· Apache’s Argentina Region donated a high-end ultrasound system to the Rio Grande hospital in the Tierra del Fuego province. The system is capable of doing many different types of ultrasound and Doppler examinations providing high-quality images that increase the accuracy of diagnoses.

· In Houston, Apache has made a five-year, $1 million pledge to support the University of Texas M.D. Anderson’s state-of-the-art advanced imaging center and provide funds for its data management efforts and preventative care.

· In Canada, Apache continues to support funding for cancer research through the Alberta Children’s Hospital Childhood Cancer collaborative – Blood and Marrow Transplant (BMT) and the Applied Experimental and Therapeutics programs.

Community Involvement

2013 Chairman’s Stewardship Award – Interstate Oil & Gas Compact Commission

• Apache received the 2013 Chairman’s Stewardship Award from the Interstate Oil & Gas Compact Commission for its use of wireless seismic technology in Alaska’s Cook Inlet.

2013 Vanguard Award – Keep Oklahoma Beautiful

• Presented to a person, institution, community or business for embracing cutting-edge technologies and concepts in support of a sustainable planet."

2013 Highly Commended Award – Australian Petroleum Production & Exploration Association

• The APPEA 2013 Health and Safety Awards recognizes achievement, innovation and commitment to improving health and safety performance and culture in the Australian oil and gas industry.

Corporate Sustainability Reporting Award 2012 – British American Business Council International

• Apache was selected for the Consul General’s Award for Corporate Social Responsibility for charitable, philanthropic and cultural exchange work in the United Kingdom and United States.

2012 Certificate of Recognition in Safety

• Apache Canada achieved the 2012 Certificate of Recognition in health and safety from Alberta Human Services.

Oklahoma declares The Apache Foundation Tree Planting Program Day

• Oklahoma Gov. Mary Fallin declared Aug. 30, 2012, as “The Apache Foundation Tree Planting Program Day” in gratitude for Apache’s support in reviving the weather-damaged Oklahoma landscape due to wildfires, tornadoes and ice storms.

Debolt Water Treatment Plant – 2011 Environmental Performance Award, Canadian Association of Petroleum Producers

Apache Foundation Tree Grant Program – 2011 Corporate Citizen of the Year Award

Offshore Leadership Award 2010 – The Mineral Management Service

• For commitment to safety and the environment as part of a committee that enhanced the Mineral Management Service’s ability to continue meeting its safety and environmental objectives.

2011 Golden Gecko Award Finalist – Western Australian Department of Mines and Petroleum

Awards

Customers and Competitors

Business-to-Business in the U.S. (Annual Report, page 18) U.S. Marketing In general, most of Apache’s U.S. gas is sold at either monthly or daily market prices. Also, from time to time, the Company will enter into fixed physical sales contracts for durations of up to one-year. These physical sales volumes are typically sold at fixed prices over the term of the contract. Their natural gas is sold primarily to local distribution companies (LDCs), utilities, end-users, marketers, and integrated major oil companies. Apache strives to maintain a diverse client portfolio, which is intended to reduce the concentration of credit risk. Apache primarily markets its U.S. crude oil to integrated major oil companies, marketing and transportation companies, and refiners based on a West Texas Intermediate (WTI) price, adjusted for quality, transportation and a market-reflective differential. Major Customers (Annual Report, page 11)In 2013, 2012, and 2011 purchases by Royal Dutch Shell plc and its subsidiaries accounted for 24 percent, 20 percent, and 11 percent, respectively, of the Company’s worldwide oil and gas production revenues. In 2011, purchases by the Vitol Group accounted for 13 percent of the Company’s worldwide oil and gas production revenues. Competitive Conditions (Annual Report, page 18)The oil and gas business is highly competitive in the:

• exploration for and acquisitions of reserves• the acquisition of oil and gas leases• equipment and personnel required to find and produce reserves, and• in the gathering and marketing of oil, gas, and natural gas liquids

Apache competitors include national oil companies major integrated oil and gas companies, other independent oil and gas companies, and participants in other industries supplying energy and fuel to industrial, commercial, and individual consumers. Certain of their competitors may possess financial or other resources substantially larger than they possess or have established strategic long-term positions and maintain strong governmental relationships in countries in which Apache may seek new entry. As a consequence, they may be at a competitive disadvantage in bidding for leases or drilling rights.18 However, they believe their diversified portfolio of core assets, which comprises large acreage positions and well-established production bases across six countries, and their balanced production mix between oil and gas, there management and incentive systems, and their experienced personnel give us a strong competitive position relative to many of their competitors who do not possess similar geographic and production diversity.

Crude oil and natural gas prices are volatile, and a substantial reduction in these prices could adversely affect their results and the price of their common stock. (Annual Report, page 20)The market prices for crude oil and natural gas depend on factors beyond Apache’s control. These factors include demand for crude oil and natural gas, which fluctuates with changes in market and economic conditions, and other factors.

• The NYMEX daily settlement price for the prompt month oil contract in 2013 ranged from a high of $110.53 per barrel to a low of $86.68 per barrel.

• The NYMEX daily settlement price for the prompt month natural gas contract in 2013 ranged from a high of $4.46 per MMBtu to a low of $3.11 per MMBtu.

Competition

Direct Competitors• BP plc• ConocoPhillips• Exxon Mobil Corporation Energy Companies

• BP plc• Exxon Mobil Corporation • Total SA • Chevron Corporation • ConocoPhillips • Petróleos de Venezuela S.A. • Petróleos Mexicanos • Eni SpA E • Repsol, S.A. Utility Companies (US ONLY)

• Exelon Corporation • American Electric Power Co., Inc. • FirstEnergy Corp. • Edison International • Dominion Resources, Inc. • Southern Company • Public Service Enterprise Group Inc. • PG&E Corporation • Consolidated Edison, Inc. • CenterPoint Energy, Inc.

More information about a number of Apache’s competitors can be found at http://www.nasdaq.com/symbol/apa/competitors?page=9 andhttp://financials.morningstar.com/competitors/industry-peer.action?t=APA&region=usa&culture=en-US

Regulations & Pricing

Environmental Compliance (Annual Report, page 19)As an owner or lessee and operator of oil and gas properties and facilities, Apache is subject to numerous federal, provincial, state, local, and foreign country laws and regulations relating to discharge of materials into, and protection of, the environment. These laws and regulations may, among other things, impose liability on the lessee under an oil and gas lease for the cost of pollution clean-up resulting from operations, subject the lessee to liability for pollution damages and require suspension or cessation of operations in affected areas. The additional deepwater drilling laws and regulations, delays in the processing and approval of permits and other related developments in the Gulf of Mexico as well as our other locations resulting from the Deepwater Horizon incident could adversely affect Apache’s business. (Annual Report, page 22)In response to the Deepwater Horizon incident in the U.S. Gulf of Mexico in April 2010, and as directed by the Secretary of the U.S. Department of the Interior, the Bureau of Ocean Energy Management (BOEM) and the Bureau of Safety and Environmental Enforcement (BSEE) issued new guidelines and regulations regarding safety,environmental matters, drilling equipment, and decommissioning applicable to drilling in the Gulf of Mexico. These new regulations have imposed additional requirements with respect to development and production activities in the Gulf of Mexico and have delayed the approval of applications to drill in both deepwater and shallow-water areas. Proposed federal, state, or local regulation regarding hydraulic fracturing could increase our operating and capital costs. (Annual Report, page 28)Several proposals are before the U.S. Congress that, if implemented, would either prohibit or restrict the practice of hydraulic fracturing or subject the process to regulation under the Safe Drinking Water Act. Several states are considering legislation to regulate hydraulic fracturing practices that could impose more stringent permitting, transparency, and well construction requirements on hydraulic-fracturing operations or otherwise seek to ban fracturing activities altogether. International operations have uncertain political, economic, and other risks. (Annual Report, page 28)Apache’s operations outside North America are based primarily in Egypt, Australia, the United Kingdom, andArgentina. On a barrel equivalent basis, approximately 42 percent of our 2013 production was outside North America, and approximately 32 percent of our estimated proved oil and gas reserves on December 31, 2013 were located outside North America. As a result, a significant portion of their production and resources are subject to the increased political and economic risks and other factors associated with international operations.

The impact that future terrorist attacks or regional hostilities may have on the oil and gas industry ingeneral, and on our operations in particular, is not known at this time. We may be required to incur significant costs in the future to safeguard their assets against terrorist activities.

Company Risk Factors

Apache purchases risk insurance from the OPIC and it provides roughly $865 million dollars of coverage for Apache loses. More information regarding the insurance can be found on page 21 in the Annual Report. Future economic conditions in the U.S. and certain international markets may materially adversely impact Apache’s operating results. Crude oil and natural gas prices are volatile, and a substantial reduction in these prices could adversely affect Apache’s results and the price of our common stock. Additional Information regarding risk factors can be found on page 20.

The market prices for crude oil and natural gas depend on factors beyond their control. These factors include demand for crude oil and natural gas, which fluctuates with changes in market and economic conditions, and other factors. Significant declines in crude oil and natural gas prices for an extended period may have effects on their business.

Their ability to sell natural gas or oil and/or receive market prices for their natural gas or oil may be adversely affected by pipeline and gathering system capacity constraints and various transportation interruptions. Weather and climate may have a significant adverse impact on Apache’s revenues and productivity. Their operations involve a high degree of operational risk, particularly risk of personal injury, damage, or loss of equipment, and environmental accidents. Cyber attacks targeting systems and infrastructure used by the oil and gas industry may adversely impact their operations. The additional deep water drilling laws and regulations, delays in the processing and approval of permits and other related developments in the Gulf of Mexico as well as their other locations resulting from the Deepwater Horizon incident could adversely affect Apache’s business. Apache’s commodity price risk management and trading activities may prevent us from benefiting fully from price increases and may expose us to other risks. The credit risk of financial institutions could adversely affect us as well as exposure to counterparty credit risk as a result of our receivables. Also, A downgrade in our credit rating could negatively impact our cost of and ability to access capital. Market conditions may restrict their ability to obtain funds for future development and working capital needs, which may limit their financial flexibility. Apache’s ability to declare and pay dividends is subject to limitations. Discoveries or acquisitions of additional reserves are needed to avoid a material decline in reserves and production. Material differences between the estimated and actual timing of critical events or costs may affect the completion and commencement of production from development projects. The BP Acquisition and/or Apache’s liabilities could be adversely affected in the event one or more of the BP entities become the subject of a bankruptcy case.

Company Risk Factors (cont.)

Crude oil and natural gas reserves are estimates, and actual recoveries may vary significantly. A number of Apache’s undeveloped leasehold acreage is subject to leases that will expire over the next several years unless production is established on units containing the acreage. Apache may incur significant costs related to environmental matters. Our North American operations are subject to governmental risks that may impact our operations. Pending regulations related to emissions and the impact of any changes in climate could adversely impact our business. The proposed U.S. federal budget for fiscal year 2014, when released, is expected to include certain provisions that, if passed, will have an adverse effect on our financial position, results of operations, and cash flows. Derivatives regulation included in current or proposed financial legislation and rulemaking could impede Apache’s ability to manage business and financial risks by restricting our use of derivative instruments as hedges against fluctuating commodity prices. Proposed federal, state, or local regulation regarding hydraulic fracturing could increase Apache’s operating and capital costs. A deterioration of conditions in Egypt or changes in the economic and political environment in Egypt could have an adverse impact on Apache’s business. International operations have uncertain political, economic, and other risks. Their operations are sensitive to currency rate fluctuations. Apache faces strong industry competition that may have a significant negative impact on their results ofoperations. Apache’s insurance policies do not cover all of the risks we face, which could result in significant financial exposure.

Uncertainty in Egypt

In February 2011, former Egyptian president Hosni Mubarak stepped down, and the Egyptian Supreme Council of the Armed Forces took power, announcing that it would remain in power until presidential and parliamentary elections could be held. In June 2012, President Mohamed Morsi of the Muslim Brotherhood’s Freedom and Justice Party was elected as Egypt’s new president. In July 2013, the Egyptian military removed President Morsi from power and installed Egypt’s Chief Justice, Adly Mansour, as acting president of a temporary government, which announced that it would seek to schedule parliamentary and presidential elections in early to mid-2014. In January 2014, Egyptians voted on and overwhelmingly approved a new constitution, and Mr. Mansour announced that the presidential election will be held prior to the parliamentary elections. While the date of the presidential election has not been announced, it is expected to be held by mid-April 2014. Apache’s operations, located in remote locations in the Western Desert, have not experienced production interruptions, and we have continued to receive development lease approvals for Apache’s drilling program. However, a further deterioration in the political, economic, and social conditions or other relevant policies of the Egyptian government, such as changes in laws or regulations, export restrictions, expropriation of their assets or resource nationalization, and/or forced renegotiation or modification of their existing contracts with EGPC could materially and adversely affect their business, financial condition, and results of operations.

More information regarding lawsuits can be found on page 65 in the Annual Report.

2.1 – Agreement and Plan of Merger, dated April 14, 2010, by and among Registrant, ZMZAcquisitions LLC, and Mariner Energy, Inc. 2.2 – Amendment No. 1, dated August 2, 2010, to Agreement and Plan of Merger, dated April 14,2010, by and among Registrant, ZMZ Acquisitions LLC, and Mariner Energy, Inc. 2.3 – Purchase and Sale Agreement by and between BP America Production Company and ZPZDelaware I LLC dated July 20, 2010 2.4 – Partnership Interest and Share Purchase and Sale Agreement by and between BP Canada Energyand Apache Canada Ltd. dated July 20, 2010

2.5 – Purchase and Sale Agreement by and among BP Egypt Company, BP Exploration (Delta)Limited and ZPZ Egypt Corporation LDC dated July 20, 2010 3.1 – Restated Certificate of Incorporation of Registrant, dated September 19, 2013, as filed with theSecretary of State of Delaware on September 19, 2013 3.2 – Certificate of Designations of the 6.00% Mandatory Convertible Preferred Stock, Series D

3.3 – Certificate of Elimination of Series D Preferred Stock of Registrant, dated September 18, 2013,as filed with the Secretary of State of Delaware on September 19, 2013 3.4 – Bylaws of Registrant, as amended May 16, 2013 4.1 – Form of Certificate for Registrant’s Common Stock 4.2 – Form of Certificate for the 6.00% Mandatory Convertible Preferred Stock, Series D 4.3 – Form of 3.625% Notes due 2021 4.4 – Form of 5.250% Notes due 2042 4.5 – Form of 5.100% Notes due 2040 4.6 – Form of 1.75% Notes due 2017 4.7 – Form of 3.25% Note due 2022 4.8 – Form of 4.75% Notes due 2043 4.9 – Form of 2.625% Notes due 2023

Lawsuits

4.10 – Form of 4.250% Notes due 2044 66 4.11 – Rights Agreement, dated January 31, 1996, between Registrant and Wells Fargo Bank, N.A. (assuccessor-in-interest to Norwest Bank Minnesota, N.A.), rights agent, relating to the declarationof a rights dividend to Registrant’s common shareholders of record on January 31, 1996 4.12 – Amendment No. 1, dated as of January 31, 2006, to the Rights Agreement dated as of December31, 1996, between Apache Corporation, a Delaware corporation, and Wells Fargo Bank, N.A.(as successor-in-interest to Norwest Bank Minnesota, N.A.) 4.13 – Senior Indenture, dated February 15, 1996, between Registrant and The Bank of New YorkMellon Trust Company, N.A. (formerly known as the Bank of New York Trust Company, N.A.,as successor-in-interest to JPMorgan Chase Bank), formerly known as The Chase ManhattanBank, as trustee, governing the senior debt securities and guarantees 4.14 – First Supplemental Indenture to the Senior Indenture, dated as of November 5, 1996, betweenRegistrant and The Bank of New York Mellon Trust Company, N.A. (formerly known as theBank of New York Trust Company, N.A., as successor-in-interest to JPMorgan Chase Bank,formerly known as The Chase Manhattan Bank), as trustee, governing the senior debt securitiesand guarantees

4.15 – Form of Indenture among Apache Finance Pty Ltd, Registrant and The Bank of New YorkMellon Trust Company, N.A. (formerly known as the Bank of New York Trust Company, N.A.,as successor-in-interest to The Chase Manhattan Bank), as trustee, governing the debt securitiesand guarantees 4.16 – Form of Indenture among Registrant, Apache Finance Canada Corporation and The Bank ofNew York Mellon Trust Company, N.A. (formerly known as the Bank of New York TrustCompany, N.A., as successor-in-interest to The Chase Manhattan Bank), as trustee, governingthe debt securities and guarantees 4.17 – Deposit Agreement, dated as of July 28, 2010, between Registrants and Wells Fargo Bank, N.A.,as depositary, on behalf of all holders from time to time of the receipts issued there under 4.18 – Form of Depositary Receipt for the Depositary Shares 4.19 – Senior Indenture, dated May 19, 2011, between Registrant and Wells Fargo Bank, NationalAssociation, as trustee, governing the senior debt securities of Apache Corporation 4.20 – Senior Indenture, dated May 19, 2011, among Apache Finance Pty Ltd, Apache Corporation, asguarantor, and Wells Fargo Bank, National Association, as trustee, governing the senior debtsecurities of Apache Finance Pty Ltd and the related guarantees 4.21 – Senior Indenture, dated May 19, 2011, among Apache Finance Canada Corporation, ApacheCorporation, as guarantor, and Wells Fargo Bank, National Association, as trustee, governingthe senior debt securities of Apache Finance Corporation and the related guarantees

Lawsuits (cont.)

Lawsuits (cont.)

4.22 – Form of Apache Corporation November 10, 2010 First Non-Qualified Stock Option Agreement for Certain Employees of Apache Corporation 4.23 – Form of Apache Corporation November 10, 2010 Second Non-Qualified Stock OptionAgreement for Certain Employees of Apache Corporation 4.24 – Form of Apache Corporation November 10, 2010 Non-Statutory Stock Option Agreement for Certain Employees of Apache Corporation

10.1 – Credit Agreement, dated August 12, 2011, among Registrant, the lenders party thereto,JPMorgan Chase Bank, N.A., as Administrative Agent, and Citibank, N.A., Bank of America,N.A., and Wells Fargo Bank, National Association, as Syndication Agents 10.2 – First Amendment to Credit Agreement, dated as of July 17, 2013, among Apache Corporation, the lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other agents party thereto, amending Credit Agreement, dated as of August 12, 2011, among the same parties 10.3 – Credit Agreement, dated as of June 4, 2012, among Apache Corporation, the lenders party thereto, JPMorgan Chase Bank, N.A., as Global Administrative Agent, Bank of America, N.A. and Citibank, N.A., as Global Syndication Agents, and The Royal Bank of Scotland plc andRoyal Bank of Canada, as Global Documentation Agents 10.4 – Credit Agreement, dated as of June 4, 2012, among Apache Canada Ltd., the lenders party thereto, JPMorgan Chase Bank, N.A., as Global Administrative Agent, Royal Bank of Canada, as Canadian Administrative Agent, Bank of America, N.A. and Citibank, N.A., as GlobalSyndication Agents, and The Royal Bank of Scotland plc and Royal Bank of Canada, as GlobalDocumentation Agents 10.5 – Syndicated Facility Agreement, dated as of June 4, 2012, among Apache Energy Limited (ACN 009 301 964), the lenders party thereto, JPMorgan Chase Bank, N.A., as Global Administrative Agent, Citi Securities Limited (ABN 51 008 489 610), as Australian Administrative Agent, Bank of America, N.A. and Citibank, N.A., as Global Syndication Agents, and The Royal Bank of Scotland plc and Royal Bank of Canada, as Global Documentation Agents

Lobbyist Info

Future

Apache has increased reserves 23 out of the last 28 years and production 32 out of the past 35 years, a testament to their consistency over the long-term. Apache pursues growth opportunities through exploration and development drilling, supplemented by occasional strategic acquisitions and portfolio high grading through asset divestitures. At the end of 2012 and the beginning of 2013, Apache undertook a strategic review of their portfolio with the ultimate goal of keeping the right mix of assets that generate strong returns and excess cash flow and drive more predictable production growth to create shareholder value. In May 2013, Apache announced that it would divest approximately $4 billion in assets and use the proceeds to pay down debt and repurchase Apache common shares. Apache surpassed these goals, divesting approximately $7 billion of assets, paying down $2.6 billion in debt, and repurchasing $1 billion in Apache common shares during 2013. (Annual Report, page 2)

Significant transactions since announcing our strategic repositioning initiatives include: • Argentina Divestiture On February 12, 2014, Apache subsidiaries announced an agreement to sell all of its operations in Argentina to YPF Sociedad Anónima (YPF) for cash consideration of $800 million plus the assumption of $52 million of bank debt. The transaction is expected to close in the first quarter of 2014. • Egypt Sinopec Partnership On November 14, 2013, Apache announced the completion of the sale of a one-third minority participation in its Egypt oil and gas business to a subsidiary of Sinopec International Petroleum Exploration and Production Corporation (Sinopec). Apache received cash consideration of $2.95 billion. This non-controlling interest is recorded separately in the Company’s financial statements. • Gulf of Mexico Shelf Divestiture On September 30, 2013, Apache completed the sale of its Gulf of Mexico Shelf operations and properties to Fieldwood Energy LLC (Fieldwood), an affiliate of Riverstone Holdings. Under the terms of the agreement, Apache received cash consideration of $3.7 billion, and Fieldwood assumed $1.5 billion of discounted asset abandonment liabilities. Additionally, Apache retained 50 percent of its ownership interest in both exploration blocks and in horizons below production in developed blocks, and access to existing infrastructure. • Canadian Divestitures In the third and fourth quarters of 2013, Apache completed three separate divestitures of oil and gas producing properties in Canada for total cash consideration of $326 million before customary post-closing adjustments. Their growth portfolio going forward will be centered on:

(i) increasing onshore North American liquids production that provides for more predictable and attractive rates of return,(ii) generating excess cash flow from our international operations, and (iii) continuing longer-term growth initiatives, which include our Wheatstone and Kitimat LNG projects.