HOUSTON, May 7, 2015 /PRNewswire/ -- Apache Corporation
(NYSE, Nasdaq: APA) today announced a first-quarter 2015 net loss
of $4.7 billion or $12.34 per diluted common share, which includes
an after-tax ceiling-test write down of $4.7
billion, as a result of substantially lower commodity
prices. When adjusted for certain items that impact the
comparability of results, Apache's first-quarter loss totaled
$139 million or $0.37 per share. Net cash provided by operating
activities was approximately $650
million in the first quarter of 2015 and cash from
operations, before changes in working capital, totaled $900 million.
"During the quarter, we significantly reduced our drilling
activity and cost structure in response to the rapid oil-price
downturn. Drilling and completion costs across all of our key plays
in North America onshore are down
between 20 and 40 percent from those we provided in our North
American Update last November. Operationally, I am pleased to
report that North American onshore production exceeded our first
quarter guidance despite a substantial reduction in well
completions and the adverse impacts of severe winter weather in the
Permian and Anadarko Basins. Internationally, production in both
Egypt and the North Sea is
tracking ahead of our initial expectations," said John J. Christmann, IV, Apache's chief executive
officer and president.
Portfolio rebalancing update
During 2014, Apache conducted a review of its international
portfolio with the goal of best positioning its asset base for the
long-term benefit of its shareholders. This review resulted in
several key divestitures during the past 12 months. In the first
half of April, the company closed the previously announced sale of
its Wheatstone and Kitimat LNG projects to Woodside Petroleum for
$3.7 billion of net proceeds. On
April 8, Apache also announced the
sale of its remaining oil and gas assets in Australia for $2.1
billion, subject to customary post-closing adjustments.
The company's acquisition and divestiture transactions over the
last several years have streamlined its portfolio and resulted in
greater leverage to onshore North
America. When adjusted for the recently announced sale in
Australia, pro forma onshore
North America now represents
nearly two-thirds of total company production.
"Apache's portfolio now consists of an onshore North American
position with a robust inventory of drilling opportunities,
complemented by free-cash-flow-generating assets in the North Sea
and Egypt. Our international
assets benefit from attractive Brent-linked oil prices and also
offer a significant inventory of exploration and development
opportunities. We are very excited to move forward with a
strengthened balance sheet and three key operating areas that offer
excellent potential for sustainable long-term growth and
capital-allocation flexibility," Christmann noted.
2015 capital spending and production update
During the quarter, Apache's capital expenditures before LNG,
capitalized interest and Egypt's
minority interest was $1.3 billion,
which was in-line with expectations. Spending on LNG facilities
during the quarter was $239 million,
all of which was reimbursed with the closing of the LNG asset
sales. As noted last quarter, management expected the 2015 capital
program to be front-end loaded as the drilling program continued to
ramp down through the first quarter.
Apache remains on track to meet its 2015 capital-spending
guidance for North America of
$2.1 billion to $2.3 billion and
continues to project relatively flat pro forma production volumes
in North America compared to
2014.
The company is lowering its 2015 international capital-spending
guidance to between $1.3 billion and $1.6
billion. This reflects a $150-million reduction from the midpoint of the
prior range driven by the pending Australian asset sale expected at
mid-year. Apache anticipates combined production from
Egypt and the North Sea will
increase slightly year over year, which is essentially unchanged
from its prior international production guidance.
First-quarter 2015 regional activity
- Permian – Underscoring the significant planned reduction in
activity, the Permian region averaged 15 rigs during the quarter,
down from 42 the previous quarter. The company continues to reduce
its rig count and is currently running 11 rigs. Total production in
the Permian was down slightly from the fourth quarter primarily due
to severe winter weather. Activity for the remainder of the year
will be focused on the Delaware
Basin as well as in the deeper, more productive areas of the
company's Southern Midland Basin acreage.
- Central – As a result of the Dec. 31,
2014 sale of certain Anadarko Basin producing assets,
Central region production was down 29 percent compared to the
fourth quarter. Excluding property sales, production declined 2
percent. During the quarter, the region averaged four rigs and is
currently running three. For the remainder of 2015, activity will
be primarily focused on the Canyon Lime and Woodford plays.
- Gulf Coast – Following the sale of producing properties in
Southern Louisiana on Dec. 31, 2014, the region now consists almost
entirely of Eagle Ford production. During the quarter, the region
averaged four rigs, down from 12 in the fourth quarter. No rigs are
currently running in the Eagle Ford as the region focuses on
completing wells in backlog. There are currently 38
drilled-but-uncompleted Eagle Ford wells in backlog.
- Canada – Apache completed four
Montney wells, including a successful test of the previously
untested lower Montney in the Wapiti area. During the first
quarter, the region averaged four rigs and reduced the count to
zero as the region moves into breakup season. Activity will be
focused on completing a seven-well Duvernay pad in the summer,
along with two Montney wells currently in backlog.
- North Sea – During the quarter, North Sea production declined
from record fourth-quarter levels due to natural declines and an
approximate 2,600-boe-per-day production disruption from an
unplanned equipment outage on the Beryl Alpha platform. In March,
favorable tax changes were announced in the United Kingdom that are expected to have a
positive impact on cash flow in 2015 and beyond.
- Egypt – Gross production was
flat quarter-over-quarter as the region averaged 21 rigs and
reported seven new discoveries in the Khalda area.
Delineation-drilling results at the recent Ptah and Berenice oil
discoveries have exceeded expectations thus far with current
production of approximately 20,000 barrels of oil per day.
Subsequent to quarter-end, Apache made several new field
discoveries across multiple concessions that increase its
confidence in Egypt's production
outlook for the remainder of 2015.
"Our operational teams are doing an excellent job in this
challenging price environment, and I am pleased that first-quarter
production results exceeded our expectations both domestically and
internationally. We will monitor oil prices for the remainder of
the quarter, and at mid-year, revisit our planned activity levels
for the balance of 2015. Apache remains committed to maintaining
operational flexibility and will respond quickly to changes in our
cash flow. With more than $5
billion in net proceeds coming from recent asset sales, our
balance sheet is now in excellent shape. Accordingly, we will
look to be opportunistic but highly disciplined in evaluating new
opportunities to grow or enhance our existing portfolio and create
shareholder value," remarked Christmann.
Oil and gas prices
Apache's production during the first quarter 2015 consisted of
approximately 62 percent liquids and 38 percent natural gas.
Liquids contributed 79 percent of the company's revenue during the
period. In North America onshore,
Apache received an average oil price of $44.07 per barrel during the first quarter,
compared with $93.72 per barrel in
the prior-year period. North American onshore natural gas prices
averaged $2.60 per thousand cubic
feet (Mcf), compared with $4.82 per
Mcf in the prior-year period. Worldwide, Apache received an average
oil price of $47.56 per barrel during
the first quarter, compared with $101.03 per barrel in the prior-year period.
Worldwide natural gas prices averaged $3.14 per Mcf, compared with $4.46 per Mcf in the prior-year period.
Conference call
Apache Corporation (NYSE: APA) will host a conference call
Thursday, May 7, 2015, to discuss the
first-quarter 2015 financial results. The call will begin at
1 p.m. CT (2
p.m. ET). Earnings will be released Thursday, May 7, 2015, before the market opens.
To access the live audio webcast, please visit the Apache website
at www.apachecorp.com.
A replay of the conference call will be available for seven days
following the call. The number for the replay is 855-859-2056 or
404-537-3406 for international calls. The conference access code is
31402821.
Sign up for email alerts to be reminded of the webcast at
http://investor.apachecorp.com/alerts.cfm
Additional Information
Additional information follows, including reconciliations of
adjusted earnings and cash from operations before changes in
operating assets and liabilities (non-GAAP financial measures) to
GAAP measures and information regarding pro forma production.
Apache's quarterly supplement is available at
www.apachecorp.com/financialdata.
About Apache
Apache Corporation is an oil and gas exploration and production
company with operations in the United
States, Canada,
Egypt, the United Kingdom and Australia. Apache posts announcements,
operational updates, investor information and copies of all press
releases on its website, www.apachecorp.com, and on its Media and
Investor Center mobile application, which is available for free
download from the Apple App Store and the Google Play Store.
Non-GAAP financial measures
Apache's financial information includes information prepared in
conformity with generally accepted accounting standards (GAAP) as
well as non-GAAP information. It is management's intent to provide
non-GAAP financial information to enhance understanding of our
consolidated financial information as prepared in accordance with
GAAP. Adjusted earnings and cash from continuing operations before
changes in operating assets and liabilities are non-GAAP measures.
This non-GAAP information should be considered by the reader in
addition to, but not instead of, the financial statements prepared
in accordance with GAAP. Each non-GAAP financial measure is
presented along with the corresponding GAAP measure so as not to
imply that more emphasis should be placed on the non-GAAP
measure.
Forward-looking statements
This news release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Forward-looking
statements can be identified by words such as "anticipates,"
"intends," "plans," "seeks," "believes," "estimates," "expects" and
similar references to future periods. These statements include, but
are not limited to, statements about future plans, expectations and
objectives for Apache's operations, including statements about our
capital plans, drilling plans, production expectations, asset sales
and monetizations. While forward-looking statements are based
on assumptions and analyses made by us that we believe to be
reasonable under the circumstances, whether actual results and
developments will meet our expectations and predictions depend on a
number of risks and uncertainties which could cause our actual
results, performance, and financial condition to differ materially
from our expectations. See "Risk Factors" in our 2014 Form 10-K
filed with the Securities and Exchange Commission for a discussion
of risk factors that affect our business. Any forward-looking
statement made by us in this news release speaks only as of the
date on which it is made. Factors or events that could cause our
actual results to differ may emerge from time to time, and it is
not possible for us to predict all of them. We undertake no
obligation to publicly update any forward-looking statement,
whether as a result of new information, future development or
otherwise, except as may be required by law.
APACHE
CORPORATION
|
STATEMENT OF
CONSOLIDATED OPERATIONS
|
(Unaudited)
|
(In millions, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Quarter
|
|
|
Ended March
31,
|
|
|
2015
|
|
2014
|
|
|
|
|
|
REVENUES AND
OTHER:
|
|
|
|
|
Oil
revenues
|
$
1,362
|
|
$
2,815
|
|
Gas
revenues
|
387
|
|
646
|
|
NGL
revenues
|
57
|
|
186
|
|
Oil and gas
production revenues
|
1,806
|
|
3,647
|
|
Derivative instrument
gains (losses), net
|
-
|
|
(20)
|
|
Other
|
12
|
|
48
|
|
|
1,818
|
|
3,675
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
|
|
Oil and
gas property and equipment
|
|
|
|
|
Recurring
|
1,089
|
|
1,109
|
|
Additional
|
7,220
|
|
-
|
|
Other
assets
|
98
|
|
97
|
|
Asset retirement
obligation accretion
|
44
|
|
44
|
|
Lease operating
expenses
|
538
|
|
597
|
|
Gathering and
transportation
|
56
|
|
70
|
|
Taxes other than
income
|
84
|
|
181
|
|
General and
administrative
|
79
|
|
103
|
|
Acquisition,
divestiture & separation costs
|
54
|
|
18
|
|
Financing costs,
net
|
46
|
|
27
|
|
|
9,308
|
|
2,246
|
|
|
|
|
|
INCOME (LOSS)
BEFORE INCOME TAXES
|
(7,490)
|
|
1,429
|
|
Current income tax
provision
|
44
|
|
416
|
|
Deferred income tax
provision (benefit)
|
(2,898)
|
|
162
|
|
|
|
|
|
INCOME (LOSS) FROM
CONTINUING OPS INCLUDING NONCONTROLLING INTEREST
|
(4,636)
|
|
851
|
|
Income (Loss) from
discontinued operations, net of tax
|
-
|
|
(517)
|
|
|
|
|
|
INCOME (LOSS)
INCLUDING NONCONTROLLING INTEREST
|
(4,636)
|
|
334
|
|
Net income
attributable to noncontrolling interest
|
15
|
|
98
|
|
Preferred stock
dividends
|
-
|
|
-
|
|
|
|
|
|
INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCK
|
$
(4,651)
|
|
$
236
|
|
|
|
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON SHAREHOLDERS
|
|
|
|
|
Net income (loss)
from continuing operations attributable to common
shareholders
|
$
(4,651)
|
|
$
753
|
|
Net income (loss)
from discontinued operations
|
-
|
|
(517)
|
|
Net income (loss)
attributable to common shareholders
|
$
(4,651)
|
|
$
236
|
|
|
|
|
|
BASIC NET INCOME
(LOSS) PER COMMON SHARE:
|
|
|
|
|
Basic net income
(loss) from continuing operations per share
|
$
(12.34)
|
|
$
1.92
|
|
Basic net income
(loss) from discontinued operations per share
|
-
|
|
(1.32)
|
|
Basic net income
(loss) per share
|
$
(12.34)
|
|
$
0.60
|
|
|
|
|
|
DILUTED NET INCOME
(LOSS) PER COMMON SHARE:
|
|
|
|
|
Diluted net income
(loss) from continuing operations per share
|
$
(12.34)
|
|
$
1.90
|
|
Diluted net income
(loss) from discontinued operations per share
|
-
|
|
(1.30)
|
|
Diluted net income
(loss) per share
|
$
(12.34)
|
|
$
0.60
|
|
|
|
|
|
WEIGHTED-AVERAGE
NUMBER OF COMMON
|
|
|
|
SHARES OUTSTANDING:
|
|
|
|
|
Basic
|
377
|
|
394
|
|
Diluted
|
377
|
|
396
|
|
|
|
|
|
DIVIDENDS DECLARED
PER COMMON SHARE
|
$
0.25
|
|
$
0.25
|
APACHE
CORPORATION
|
PRODUCTION
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
Change
|
|
1Q15
|
|
4Q14
|
|
1Q14
|
|
1Q15 to
4Q14
|
|
1Q15 to
1Q14
|
|
|
|
|
|
|
|
|
|
|
OIL VOLUME
- Barrels per day
|
|
|
|
|
|
|
|
|
|
|
Permian
|
94,461
|
|
98,017
|
|
88,327
|
|
-4%
|
|
7%
|
|
Central
|
18,509
|
|
23,832
|
|
21,686
|
|
-22%
|
|
-15%
|
|
Gulf Coast
|
7,784
|
|
14,380
|
|
10,975
|
|
-46%
|
|
-29%
|
|
Canada
|
16,875
|
|
17,133
|
|
17,589
|
|
-2%
|
|
-4%
|
|
|
N.A.
Onshore
|
137,629
|
|
153,362
|
|
138,577
|
|
-10%
|
|
-1%
|
|
Gulf of
Mexico
|
5,885
|
|
6,319
|
|
6,284
|
|
-7%
|
|
-6%
|
|
GOM Shelf
|
-
|
|
-
|
|
679
|
|
NM
|
|
NM
|
|
|
North
America
|
143,514
|
|
159,681
|
|
145,540
|
|
-10%
|
|
-1%
|
|
Egypt
(1)
|
91,971
|
|
87,445
|
|
88,093
|
|
5%
|
|
4%
|
|
Australia
|
20,905
|
|
28,577
|
|
16,825
|
|
-27%
|
|
24%
|
|
North Sea
|
61,699
|
|
66,822
|
|
59,092
|
|
-8%
|
|
4%
|
|
|
International
(1)
|
174,575
|
|
182,844
|
|
164,010
|
|
-5%
|
|
6%
|
|
|
|
Total
(1)
|
318,089
|
|
342,525
|
|
309,550
|
|
-7%
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIQUIDS - Barrels per day
|
|
|
|
|
|
|
|
|
|
|
Permian
|
122,445
|
|
131,429
|
|
113,587
|
|
-7%
|
|
8%
|
|
Central
|
34,654
|
|
49,246
|
|
46,141
|
|
-30%
|
|
-25%
|
|
Gulf Coast
|
10,328
|
|
18,555
|
|
13,398
|
|
-44%
|
|
-23%
|
|
Canada
|
22,728
|
|
22,812
|
|
25,358
|
|
0%
|
|
-10%
|
|
|
N.A.
Onshore
|
190,155
|
|
222,042
|
|
198,484
|
|
-14%
|
|
-4%
|
|
Gulf of
Mexico
|
6,433
|
|
7,004
|
|
7,114
|
|
-8%
|
|
-10%
|
|
GOM Shelf
|
-
|
|
-
|
|
769
|
|
NM
|
|
NM
|
|
|
North
America
|
196,588
|
|
229,046
|
|
206,367
|
|
-14%
|
|
-5%
|
|
Egypt
(1)
|
93,002
|
|
88,278
|
|
88,326
|
|
5%
|
|
5%
|
|
Australia
|
20,905
|
|
28,577
|
|
16,825
|
|
-27%
|
|
24%
|
|
North Sea
|
62,585
|
|
68,632
|
|
60,183
|
|
-9%
|
|
4%
|
|
|
International
(1)
|
176,492
|
|
185,487
|
|
165,334
|
|
-5%
|
|
7%
|
|
|
|
Total
|
373,080
|
|
414,533
|
|
371,701
|
|
-10%
|
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATURAL GAS
VOLUME - Mcf per day
|
|
|
|
|
|
|
|
|
|
|
Permian
|
216,968
|
|
223,787
|
|
215,860
|
|
-3%
|
|
1%
|
|
Central
|
190,214
|
|
268,130
|
|
260,298
|
|
-29%
|
|
-27%
|
|
Gulf Coast
|
7,659
|
|
85,625
|
|
99,242
|
|
-91%
|
|
-92%
|
|
Canada
|
287,556
|
|
297,004
|
|
377,712
|
|
-3%
|
|
-24%
|
|
|
N.A.
Onshore
|
702,397
|
|
874,546
|
|
953,112
|
|
-20%
|
|
-26%
|
|
Gulf of
Mexico
|
20,977
|
|
18,955
|
|
16,193
|
|
11%
|
|
30%
|
|
GOM Shelf
|
-
|
|
-
|
|
1,092
|
|
NM
|
|
NM
|
|
|
North
America
|
723,374
|
|
893,501
|
|
970,397
|
|
-19%
|
|
-25%
|
|
Egypt
(1)
|
363,989
|
|
358,031
|
|
377,357
|
|
2%
|
|
-4%
|
|
Australia
|
230,691
|
|
228,284
|
|
215,792
|
|
1%
|
|
7%
|
|
North Sea
|
50,445
|
|
73,042
|
|
45,071
|
|
-31%
|
|
12%
|
|
|
International
(1)
|
645,125
|
|
659,357
|
|
638,220
|
|
-2%
|
|
1%
|
|
|
|
Total
(1)
|
1,368,499
|
|
1,552,858
|
|
1,608,617
|
|
-12%
|
|
-15%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOE per
day
|
|
|
|
|
|
|
|
|
|
|
Permian
|
158,606
|
|
168,728
|
|
149,564
|
|
-6%
|
|
6%
|
|
Central
|
66,357
|
|
93,933
|
|
89,524
|
|
-29%
|
|
-26%
|
|
Gulf Coast
|
11,604
|
|
32,826
|
|
29,939
|
|
-65%
|
|
-61%
|
|
Canada
|
70,653
|
|
72,312
|
|
88,310
|
|
-2%
|
|
-20%
|
|
|
N.A.
Onshore
|
307,220
|
|
367,799
|
|
357,337
|
|
-16%
|
|
-14%
|
|
Gulf of
Mexico
|
9,930
|
|
10,163
|
|
9,813
|
|
-2%
|
|
1%
|
|
GOM Shelf
|
-
|
|
-
|
|
950
|
|
NM
|
|
NM
|
|
|
North
America
|
317,150
|
|
377,962
|
|
368,100
|
|
-16%
|
|
-14%
|
|
Egypt (1,
2)
|
153,667
|
|
147,950
|
|
151,219
|
|
4%
|
|
2%
|
|
Australia
|
59,353
|
|
66,625
|
|
52,790
|
|
-11%
|
|
12%
|
|
North Sea
|
70,993
|
|
80,806
|
|
67,695
|
|
-12%
|
|
5%
|
|
|
International
(1)
|
284,013
|
|
295,381
|
|
271,704
|
|
-4%
|
|
5%
|
|
|
|
Total
(1)
|
601,163
|
|
673,343
|
|
639,804
|
|
-11%
|
|
-6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total excluding
noncontrolling interests
|
549,914
|
|
623,743
|
|
589,860
|
|
-12%
|
|
-7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes net production volumes attributed to our noncontrolling
partner in Egypt below:
|
|
|
|
|
Oil (b/d)
|
30,671
|
|
29,391
|
|
29,066
|
|
|
|
|
|
|
|
|
Gas
(Mcf/d)
|
121,408
|
|
119,578
|
|
124,799
|
|
|
|
|
|
|
|
|
NGL (b/d)
|
343
|
|
279
|
|
78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Egypt
Gross Production - BOE per day
|
343,762
|
|
344,122
|
|
352,841
|
|
0%
|
|
-3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
Operations - Argentina:
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (b/d)
|
-
|
|
-
|
|
6,885
|
|
|
|
|
|
|
|
Gas
(Mcf/d)
|
-
|
|
-
|
|
141,352
|
|
|
|
|
|
|
|
NGL (b/d)
|
-
|
|
-
|
|
1,287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOE/d
|
-
|
|
-
|
|
31,731
|
|
|
|
|
APACHE
CORPORATION
|
PRO FORMA
PRODUCTION INFORMATION
|
|
Pro forma production
excludes certain items that management believes affect the
comparability of operating results for the periods presented. Pro
forma production excludes divested assets, divestitures announced
but not yet closed, production attributable to a noncontrolling
interest in our Egypt oil and gas business, and Egypt tax barrels.
Management uses pro forma production to evaluate the company's
operational trends and performance and believes it is useful to
investors and other third parties.
|
|
|
|
|
|
|
|
|
%
Change
|
|
1Q15
|
|
4Q14
|
|
1Q14
|
|
1Q15 to
4Q14
|
|
1Q15 to
1Q14
|
|
|
|
|
|
|
|
|
|
|
OIL VOLUME
- Barrels per day
|
|
|
|
|
|
|
|
|
|
|
Permian
|
94,461
|
|
98,017
|
|
88,327
|
|
-4%
|
|
7%
|
|
Central
|
18,514
|
|
19,828
|
|
15,877
|
|
-7%
|
|
17%
|
|
Gulf Coast
|
7,753
|
|
6,459
|
|
2,853
|
|
20%
|
|
172%
|
|
Canada
|
16,817
|
|
17,117
|
|
17,409
|
|
-2%
|
|
-3%
|
|
|
N.A.
Onshore
|
137,545
|
|
141,421
|
|
124,466
|
|
-3%
|
|
11%
|
|
Gulf of
Mexico
|
5,885
|
|
6,319
|
|
6,284
|
|
-7%
|
|
-6%
|
|
|
North
America
|
143,430
|
|
147,740
|
|
130,750
|
|
-3%
|
|
10%
|
|
Egypt
|
54,558
|
|
49,361
|
|
43,915
|
|
11%
|
|
24%
|
|
North Sea
|
59,818
|
|
64,344
|
|
55,085
|
|
-7%
|
|
9%
|
|
|
International
|
114,376
|
|
113,705
|
|
99,000
|
|
1%
|
|
16%
|
|
|
|
Total
|
257,806
|
|
261,445
|
|
229,750
|
|
-1%
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIQUIDS - Barrels per day
|
|
|
|
|
|
|
|
|
|
|
Permian
|
122,445
|
|
131,429
|
|
113,587
|
|
-7%
|
|
8%
|
|
Central
|
34,773
|
|
37,442
|
|
31,234
|
|
-7%
|
|
11%
|
|
Gulf Coast
|
10,205
|
|
9,042
|
|
3,428
|
|
13%
|
|
198%
|
|
Canada
|
22,670
|
|
22,794
|
|
23,768
|
|
-1%
|
|
-5%
|
|
|
N.A.
Onshore
|
190,093
|
|
200,707
|
|
172,017
|
|
-5%
|
|
11%
|
|
Gulf of
Mexico
|
6,433
|
|
7,004
|
|
7,114
|
|
-8%
|
|
-10%
|
|
|
North
America
|
196,526
|
|
207,711
|
|
179,131
|
|
-5%
|
|
10%
|
|
Egypt
|
55,170
|
|
49,834
|
|
44,039
|
|
11%
|
|
25%
|
|
North Sea
|
60,657
|
|
66,020
|
|
55,921
|
|
-8%
|
|
8%
|
|
|
International
|
115,827
|
|
115,854
|
|
99,960
|
|
0%
|
|
16%
|
|
|
|
Total
|
312,353
|
|
323,565
|
|
279,091
|
|
-3%
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATURAL GAS
VOLUME - Mcf per day
|
|
|
|
|
|
|
|
|
|
|
Permian
|
216,968
|
|
223,787
|
|
215,860
|
|
-3%
|
|
1%
|
|
Central
|
189,967
|
|
184,074
|
|
166,096
|
|
3%
|
|
14%
|
|
Gulf Coast
|
9,190
|
|
15,771
|
|
9,326
|
|
-42%
|
|
-1%
|
|
Canada
|
285,520
|
|
294,664
|
|
290,752
|
|
-3%
|
|
-2%
|
|
|
N.A.
Onshore
|
701,645
|
|
718,296
|
|
682,034
|
|
-2%
|
|
3%
|
|
Gulf of
Mexico
|
20,977
|
|
18,955
|
|
16,193
|
|
11%
|
|
30%
|
|
|
North
America
|
722,622
|
|
737,251
|
|
698,227
|
|
-2%
|
|
3%
|
|
Egypt
|
223,548
|
|
201,475
|
|
192,889
|
|
11%
|
|
16%
|
|
North Sea
|
49,325
|
|
70,116
|
|
37,648
|
|
-30%
|
|
31%
|
|
|
International
|
272,873
|
|
271,591
|
|
230,537
|
|
0%
|
|
18%
|
|
|
|
Total
|
995,495
|
|
1,008,842
|
|
928,764
|
|
-1%
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOE per
day
|
|
|
|
|
|
|
|
|
|
|
Permian
|
158,607
|
|
168,727
|
|
149,564
|
|
-6%
|
|
6%
|
|
Central
|
66,434
|
|
68,121
|
|
58,917
|
|
-2%
|
|
13%
|
|
Gulf Coast
|
11,737
|
|
11,671
|
|
4,982
|
|
1%
|
|
136%
|
|
Canada
|
70,257
|
|
71,905
|
|
72,227
|
|
-2%
|
|
-3%
|
|
|
N.A.
Onshore
|
307,035
|
|
320,424
|
|
285,690
|
|
-4%
|
|
7%
|
|
Gulf of
Mexico
|
9,929
|
|
10,163
|
|
9,813
|
|
-2%
|
|
1%
|
|
|
North
America
|
316,964
|
|
330,587
|
|
295,503
|
|
-4%
|
|
7%
|
|
Egypt
|
92,428
|
|
83,413
|
|
76,187
|
|
11%
|
|
21%
|
|
North Sea
|
68,878
|
|
77,706
|
|
62,196
|
|
-11%
|
|
11%
|
|
|
International
|
161,306
|
|
161,119
|
|
138,383
|
|
0%
|
|
17%
|
|
|
|
Total
|
478,270
|
|
491,706
|
|
433,886
|
|
-3%
|
|
10%
|
APACHE
CORPORATION
|
PRICE
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q15
|
|
4Q14
|
|
1Q14
|
|
|
|
|
|
|
|
|
|
AVERAGE OIL
PRICE PER BARREL
|
|
|
|
|
|
|
Permian
|
$ 44.44
|
|
$ 67.59
|
|
$ 93.76
|
|
Central
|
44.50
|
|
69.83
|
|
93.72
|
|
Gulf Coast
|
47.92
|
|
73.13
|
|
101.87
|
|
Canada
|
39.76
|
|
65.52
|
|
88.19
|
|
|
N.A.
Onshore
|
44.07
|
|
68.21
|
|
93.72
|
|
Gulf of
Mexico
|
45.87
|
|
73.94
|
|
101.42
|
|
|
North
America
|
44.14
|
|
68.44
|
|
94.03
|
|
Egypt
|
52.29
|
|
73.34
|
|
106.70
|
|
Australia
|
43.17
|
|
71.83
|
|
112.26
|
|
North Sea
|
49.95
|
|
73.16
|
|
106.60
|
|
|
International
|
50.37
|
|
73.04
|
|
107.24
|
|
|
|
Total
|
47.56
|
|
70.89
|
|
101.03
|
|
|
|
|
|
|
|
AVERAGE
NATURAL GAS PRICE PER MCF
|
|
|
|
|
|
|
Permian
|
$ 2.44
|
|
$
3.71
|
|
$
4.78
|
|
Central
|
2.93
|
|
4.03
|
|
5.20
|
|
Gulf Coast
|
1.42
|
|
4.06
|
|
4.93
|
|
Canada
|
2.58
|
|
3.56
|
|
4.38
|
|
|
N.A.
Onshore
|
2.60
|
|
3.79
|
|
4.82
|
|
Gulf of
Mexico
|
2.92
|
|
3.88
|
|
5.23
|
|
|
North
America
|
2.61
|
|
3.79
|
|
4.75
|
|
Egypt
|
2.92
|
|
2.94
|
|
3.02
|
|
Australia
|
4.19
|
|
4.24
|
|
4.42
|
|
North Sea
|
7.40
|
|
8.77
|
|
10.69
|
|
|
International
|
3.73
|
|
4.03
|
|
4.03
|
|
|
|
Total
|
3.14
|
|
3.89
|
|
4.46
|
|
|
|
|
|
|
|
AVERAGE NGL
PRICE PER BARREL
|
|
|
|
|
|
|
Permian
|
$ 11.62
|
|
$ 20.53
|
|
$ 31.46
|
|
Central
|
9.65
|
|
17.17
|
|
30.39
|
|
Gulf Coast
|
12.17
|
|
20.34
|
|
35.90
|
|
Canada
|
11.09
|
|
24.38
|
|
42.09
|
|
|
N.A.
Onshore
|
10.98
|
|
19.59
|
|
32.58
|
|
Gulf of
Mexico
|
13.77
|
|
21.46
|
|
32.00
|
|
|
North
America
|
11.01
|
|
19.61
|
|
32.25
|
|
Egypt
|
36.29
|
|
41.35
|
|
64.34
|
|
North Sea
|
24.74
|
|
45.55
|
|
79.84
|
|
|
International
|
30.95
|
|
44.22
|
|
77.11
|
|
|
|
Total
|
11.71
|
|
20.52
|
|
33.20
|
|
|
|
|
|
|
|
Discontinued
Operations - Argentina:
|
|
|
|
|
|
|
Oil price
($/Bbl)
|
$ -
|
|
$
-
|
|
$ 72.70
|
|
Gas price
($/Mcf)
|
-
|
|
-
|
|
3.04
|
|
NGL price
($/Bbl)
|
-
|
|
-
|
|
24.57
|
APACHE
CORPORATION
|
SUMMARY BALANCE
SHEET INFORMATION
|
(Unaudited)
|
(In
millions)
|
|
|
March
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
|
|
|
Cash and Cash
Equivalents
|
$ 229
|
|
$
769
|
Assets Held for
Sale
|
1,804
|
|
1,628
|
Other Current
Assets
|
3,873
|
|
4,018
|
Property and
Equipment, net
|
41,230
|
|
48,076
|
Goodwill
|
87
|
|
87
|
Other
Assets
|
1,427
|
|
1,374
|
|
Total
Assets
|
$ 48,650
|
|
$
55,952
|
|
|
|
|
Short-Term
Debt
|
$ 2,598
|
|
$
-
|
Other Current
Liabilities
|
2,895
|
|
3,664
|
Long-Term
Debt
|
9,675
|
|
11,245
|
Deferred Credits and
Other Noncurrent Liabilities
|
10,077
|
|
12,906
|
Apache Shareholders'
Equity
|
21,211
|
|
25,937
|
Noncontrolling
interest
|
2,194
|
|
2,200
|
|
Total Liabilities and
Shareholders' Equity
|
$ 48,650
|
|
$
55,952
|
|
|
|
|
Common shares
outstanding at end of period
|
377
|
|
377
|
|
|
|
|
% of total
debt-to-capitalization
|
34%
|
|
29%
|
|
|
|
|
|
|
|
|
|
|
|
|
APACHE
CORPORATION
|
SUMMARY OF COSTS
INCURRED AND GTP CAPITAL INVESTMENTS
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
For the
Quarter
|
|
Ended March 31,
|
|
2015
|
|
2014
|
|
|
|
|
Costs Incurred in Oil
and Gas Property:
|
|
|
|
|
Acquisitions
|
|
|
|
|
|
Proved
|
$
-
|
|
$
2
|
|
|
Unproved
|
92
|
|
44
|
|
Exploration and
Development
|
1,418
|
|
2,509
|
|
|
1,510
|
|
2,555
|
|
|
|
|
|
GTP Capital
Investments:
|
|
|
|
|
GTP
Facilities
|
224
|
|
344
|
|
|
|
|
|
Total Costs Incurred
and GTP Capital Investments
|
$ 1,734
|
|
$
2,899
|
APACHE
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES
|
(In millions, except
per share data)
|
|
|
Reconciliation of
income attributable to common stock to adjusted
earnings
|
Adjusted earnings and
adjusted earnings per share are non-GAAP financial measures.
Adjusted earnings generally exclude certain items that management
believes affect the comparability of operating results or are not
related to Apache's ongoing operations. Management uses adjusted
earnings to evaluate the company's operational trends and
performance relative to other oil and gas companies. Management
believes this presentation may be useful to investors who follow
the practice of some industry analysts who adjust reported company
earnings for items that may obscure underlying fundamentals and
trends
|
|
|
|
|
|
For the
Quarter
|
|
Ended March
31,
|
|
2015
|
|
2014
|
|
|
|
|
Income (Loss)
Attributable to Common Stock (GAAP)
|
$
(4,651)
|
|
$
236
|
|
|
|
|
Adjustments:
|
|
|
|
|
Oil & gas
property write-downs, net of tax
|
4,704
|
|
-
|
|
Acquisition,
divestiture & separation costs, net of tax
|
36
|
|
12
|
|
Rig stacking costs,
net of tax
|
28
|
|
-
|
|
Unrealized foreign
currency fluctuation impact on deferred tax expense
|
10
|
|
7
|
|
Impairments
|
-
|
|
-
|
|
Argentina
discontinued operations, net of tax
|
-
|
|
517
|
|
Loss on divested
assets, net of tax
|
-
|
|
-
|
|
Unrealized commodity
derivative mark-to-market, net of tax
|
-
|
|
(49)
|
|
Deferred tax
adjustments (1)
|
(266)
|
|
(5)
|
Adjusted
Earnings (Non-GAAP)
|
$
(139)
|
|
$
718
|
|
|
|
|
|
|
|
|
Net Income (Loss)
per Common Share - Diluted (GAAP)
|
$
(12.34)
|
|
$
0.60
|
|
|
|
|
Adjustments:
|
|
|
|
|
Oil & gas
property write-downs, net of tax
|
12.48
|
|
-
|
|
Acquisition,
divestiture & separation costs, net of tax
|
0.09
|
|
0.02
|
|
Rig stacking costs,
net of tax
|
0.07
|
|
-
|
|
Unrealized foreign
currency fluctuation impact on deferred tax expense
|
0.03
|
|
0.02
|
|
Impairments
|
-
|
|
-
|
|
Argentina
discontinued operations, net of tax
|
-
|
|
1.30
|
|
Loss on divested
assets, net of tax
|
-
|
|
-
|
|
Unrealized commodity
derivative mark-to-market, net of tax
|
-
|
|
(0.12)
|
|
Deferred tax
adjustments (1)
|
(0.70)
|
|
(0.01)
|
Adjusted Earnings
Per Share - Diluted (Non-GAAP)
|
$
(0.37)
|
|
$
1.81
|
|
|
|
|
|
|
|
|
Total income tax
provision (GAAP)
|
$
(2,854)
|
|
$
578
|
|
|
|
|
Adjustments:
|
|
|
|
|
Tax impact on oil
& gas property write-downs
|
2,516
|
|
-
|
|
Deferred tax
adjustments (1)
|
266
|
|
5
|
|
Tax impact on
acquisition, divestiture & separation costs
|
18
|
|
6
|
|
Tax impact on rig
stacking costs
|
15
|
|
-
|
|
Tax impact on
impairments
|
-
|
|
-
|
|
Tax impact on loss on
divested assets
|
-
|
|
-
|
|
Tax impact on
unrealized commodity derivative mark-to-market
|
-
|
|
(27)
|
|
Unrealized foreign
currency fluctuation impact on deferred tax expense
|
(10)
|
|
(7)
|
Adjusted total
income tax provision
|
$
(49)
|
|
$
555
|
|
|
|
|
Adjusted Effective
Tax Rate (Non-GAAP)
|
28.3%
|
|
40.5%
|
|
|
|
|
|
|
|
|
(1)
|
Deferred tax for the
first quarter 2015 includes $619 million in benefits for the North
Sea tax rate adjustment partially offset by Canada valuation
allowance. Fourth quarter 2014 includes $840 million related to
undistributed foreign earnings and other
adjustments.
|
APACHE
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES
|
(Unaudited)
|
(In millions, except
per share data)
|
|
Reconciliation of
net cash provided by operating activities to cash from continuing
operations before changes in operating assets and
liabilities
|
|
Cash from operations
before changes in operating assets and liabilities is a non-GAAP
financial measure. Apache uses it internally and provides the
information because management believes it is useful for investors
and widely accepted by those following the oil and gas industry as
a financial indicator of a company's ability to generate cash to
internally fund exploration and development activities, fund
dividend programs, and service debt. It is also used by research
analysts to value and compare oil and gas exploration and
production companies and is frequently included in published
research when providing investment recommendations. Cash from
operations before changes in operating assets and liabilities,
therefore, is an additional measure of liquidity but is not a
measure of financial performance under GAAP and should not be
considered as an alternative to cash flows from operating,
investing, or financing activities.
|
|
The following table
reconciles net cash provided by operating activities to cash from
operations before changes in operating assets and
liabilities.
|
|
|
For the
Quarter
|
|
Ended March
31,
|
|
2015
|
|
2014
|
Net cash provided
by operating activities (GAAP)
|
$
650
|
|
$
2,293
|
|
|
|
|
|
Less: Discontinued
operations
|
-
|
|
(82)
|
Net cash provided by
operating activities excluding discontinued operations
|
$
650
|
|
$
2,211
|
Changes in operating
assets and liabilities
|
250
|
|
11
|
|
|
|
|
Cash from
continuing operations before changes in operating assets and liabilities
|
|
|
|
$
900
|
|
$
2,222
|
|
|
|
|
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SOURCE Apache Corporation