HOUSTON, Aug. 6, 2015 /PRNewswire/ -- Apache Corporation
(NYSE, Nasdaq: APA) today announced a second-quarter 2015 net loss
of $5.6 billion, or $14.83 per diluted common share, which includes
an after-tax ceiling-test write down of $3.7
billion resulting from current low commodity-price levels
and $1.9 billion of other items,
mostly after-tax losses and tax expense associated with the
company's assets sold during the quarter. When adjusted for certain
items that impact the comparability of results, Apache's
second-quarter net income totaled $82
million, or $0.22 per share.
Adjusted EBITDA from continuing operations was $1.3 billion. Worldwide reported production for
the second quarter was 564,000 boe per day. Including 35,000 boe
per day of production associated with discontinued operations in
Australia, Apache's total
production was 599,000 boe per day.
"I am pleased to report that Apache made excellent progress
toward achieving the ambitious 2015 goals we laid out earlier this
year," said John J. Christmann, IV,
Apache's chief executive officer and president. "In February, we
established a plan to maintain relatively flat pro forma production
in 2015, despite an aggressive 60 percent reduction in budgeted
capital expenditures from 2014 levels. Year to date, our capital
spending remains on track, but we have exceeded our production plan
in the first half of 2015 and delivered correspondingly strong cash
flow from continuing operations. As a result, we are raising our
2015 production guidance."
During the quarter, Apache closed the sales of its LNG business
and its remaining oil and gas assets in Australia, which served to more strategically
align the company's portfolio with its core competencies. "Exiting
these businesses eliminated our exposure to projects with large
capital-spending commitments and uncertain project timing,"
Christmann said. "We deployed a portion of the proceeds from these
sales to pay down debt, leaving our balance sheet in excellent
shape and positioning us for success in this low-commodity-price
environment. Importantly, during the first half of 2015, we quickly
and cost effectively reduced our drilling and completion activity,
commensurate with the deteriorating oil-and-gas price environment.
We have also restructured our operational organization to better
align with and support our more focused asset base."
Apache has made significant progress on its cost structure
through widespread efforts across the organization. In North America, the company is now realizing a
25 percent reduction in average per-well drilling and completion
costs year over year. Lease-operating costs per barrel of oil
equivalent during the quarter were down approximately 13 percent
year over year, and we have taken steps to significantly reduce
G&A from the beginning of the year that will be fully realized
in 2016.
Asset-sale proceeds and liquidity
Apache received $5.7 billion in
proceeds during the second quarter from the sales of its LNG
interests and oil and gas properties in Australia and Canada, of which a portion was used to repay
$2.7 billion of outstanding
commercial paper and short-term credit facilities. At June 30, Apache's long-term debt was $9.7 billion, and cash was approximately
$3 billion. The company has excellent
liquidity with low-cost, short-term borrowing capacity of
$3.5 billion under its commercial
paper program, which is supported by a senior credit facility that
now extends through June 2020.
Overhead-cost reductions and organizational
restructuring
Management has taken a proactive and disciplined approach toward
improving Apache's organizational structure and efficiency. During
the quarter, the company announced and implemented key
organizational changes to better align its operational and
technical teams with its refocused asset base. These changes
include transitioning to an operating structure that will enable
the allocation of resources and personnel quickly and efficiently
in response to changing industry conditions. In addition, Apache
has consolidated its technical expertise into centers of
excellence, which will support the operating regions and strengthen
the ability to share best practices around the globe.
Christmann noted, "We are implementing multiple
overhead-reduction initiatives throughout the year and are on track
to achieve a 25 to 30 percent reduction in cash G&A costs by
year-end. We continue to work to identify further savings."
Following asset divestments and other initiatives to streamline the
organization, headcount has been reduced by approximately 20
percent since the end of 2014.
Second-quarter capital spending and activity
Total capital expenditures (before leasehold acquisitions,
capitalized interest, noncontrolling interest, LNG and Australia discontinued operations) in the
second quarter were $857 million,
down 28 percent from the first quarter. Apache operated an average
of 34 rigs, drilled 78 wells and completed 108 wells during the
second quarter, down from 61, 119 and 175, respectively, during the
first quarter.
Second-quarter 2015 regional activity
- Permian – Apache operated 10 rigs in the Permian and
completed 53 wells during the second quarter, down from 15 operated
rigs and 88 well completions in the first quarter. Production
averaged 172,000 boe per day, nearly 9 percent higher than the
first quarter.
- Delaware Basin – Apache
averaged five rigs, unchanged from the prior quarter, and targeted
the Bone Spring and Wolfcamp formations in the Pecos Bend and Waha
areas. Completions in the Pecos Bend area exhibited very high
deliverability and added approximately 4,000 boe per day, which
helped drive overall Permian growth in the quarter.
- Midland Basin – Apache
averaged three rigs during the quarter, all targeting its southern
Midland focus areas in
Glasscock, Reagan, Upton
and Midland counties. The company
completed 20 wells during the quarter with notable results coming
from the Upper Wolfcamp in the Wildfire area of Midland County and in the SRH area of northern
Reagan County. Apache also had
strong results from nine well completions in the Barnhart area.
- Central Basin Platform/NW Shelf – Apache averaged two
rigs during the quarter targeting the Yeso formation in its Cedar
Lake play in Eddy County. In addition, the company has several
high-rate-of-return, low-capital-cost initiatives underway in its
CO2 and waterflood project areas that are helping to
mitigate regional production declines.
- Midcontinent (formerly Central) – During the quarter,
Apache ramped down to two rigs in the Midcontinent, where it
targeted the Woodford/SCOOP, Canyon Lime and Marmaton plays.
Production declined 7 percent, or 4,700 boe per day, sequentially
as a result of declining completion activity.
- Gulf Coast (Eagle Ford) – Apache ramped down from an
average of four rigs in the first quarter to zero during the second
quarter. Production increased 20 percent, or 2,400 boe per day,
sequentially as four new high-volume wells were placed on
production. In the Ferguson Crossing area, the company placed on
production its two most prolific wells in the play to date. The
Walker 1H and 3H wells averaged 1,935 boe per day in their first 30
days of production, significantly exceeding Apache's "Area A" type
curve. The strong well results were the product of optimized frac
design, spacing, fluid composition and proppant type.
- Canada – Production was
down 3 percent, or 1,900 boe per day, sequentially, which was a
lower-than-expected decline, resulting primarily from decreased
operational downtime and better well performance.
- Egypt – Gross
production was up 2 percent sequentially on strong
delineation-drilling results at the Ptah and Berenice oil fields.
Apache also made several new field discoveries across multiple
concessions during the second quarter, which increases its
confidence in Egypt's
oil-production outlook for the remainder of 2015. In the second
quarter, Apache drilled nine exploration wells with a success rate
of 78 percent, significantly above its historical average
exploration-success rate.
- North Sea – Production decreased modestly from
first-quarter levels as the company performed two significant
seasonal platform-maintenance turnarounds during the quarter.
Absent the maintenance turnaround, which impacted production by
approximately 3,300 boe per day, production would have been up
sequentially in the second quarter. Apache drilled eight new wells
in the North Sea with a 90 percent success rate, including its
first-ever subsea-tieback exploration well in the Beryl area.
"Apache's second-quarter production performance was very strong
both domestically and internationally," Christmann remarked. "In
North America, all of our key operating areas exceeded our
expectations, and we delivered these results on a disciplined
capital budget. Internationally, our drilling-success rate in
Egypt and the North Sea was well
above our historical success rate. As a result, we are raising our
full-year 2015 North American production guidance to 305,000 to
308,000 boe per day and are updating our International and Offshore
production guidance to a range of 164,000 to 168,000 boe per day.
We are also tightening our 2015 capital-budget guidance range from
$3.4 to $3.9 billion to $3.6 to $3.9 billion."
2015 planned activity increase
Greater capital efficiencies and lower costs are enabling the
company to increase its onshore North American activity levels in
the second half of the year. In North
America, the company plans to average approximately 16 rigs
in the second half of the year, 13 of which will be in the Permian
Basin. Apache expects to reach total depth on an additional 40 to
50 wells and complete an additional 30 to 35 wells beyond its
original plan for 2015. The company continues to anticipate that it
will have a backlog of 80 to 100 drilled-but-uncompleted wells in
North America at the end of
2015.
"This increase in activity during the second half of 2015 is not
expected to have a material impact on our full-year 2015
production; however, it will establish a positive production
trajectory in the fourth quarter and heading in to 2016,"
Christmann concluded.
Conference call
Apache Corporation (NYSE, Nasdaq: APA) will host a conference
call Thursday, Aug. 6, 2015, to
discuss its second-quarter 2015 financial results. The call will
begin at 1 p.m. CT (2 p.m. ET). To access the live audio webcast,
please visit Apache's 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
31405369.
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, adjusted EBITDA and net debt (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 and the United Kingdom. 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, adjusted EBITDA and net debt 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,"
"guidance" 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.
Website: www.apachecorp.com
APACHE
CORPORATION
|
STATEMENT OF
CONSOLIDATED OPERATIONS
|
(Unaudited)
|
(In millions, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Quarter
|
|
For the Six
Months
|
|
|
|
Ended June
30,
|
|
Ended June
30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
REVENUES AND
OTHER:
|
|
|
|
|
|
|
|
|
Oil
revenues
|
$
1,599
|
|
$
2,797
|
|
$
2,879
|
|
$
5,442
|
|
Gas
revenues
|
295
|
|
505
|
|
595
|
|
1,065
|
|
NGL
revenues
|
58
|
|
169
|
|
116
|
|
355
|
|
Oil and gas
production revenues
|
1,952
|
|
3,471
|
|
3,590
|
|
6,862
|
|
Derivative instrument
gains (losses), net
|
-
|
|
(174)
|
|
-
|
|
(194)
|
|
Other
|
|
25
|
|
(8)
|
|
17
|
|
9
|
|
|
|
1,977
|
|
3,289
|
|
3,607
|
|
6,677
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
|
|
|
|
|
|
Oil and gas property
and equipment
|
|
|
|
|
|
|
|
|
Recurring
|
923
|
|
1,074
|
|
1,922
|
|
2,096
|
|
Additional
|
5,816
|
|
203
|
|
13,036
|
|
203
|
|
Other
assets
|
83
|
|
81
|
|
166
|
|
159
|
|
Asset retirement
obligation accretion
|
36
|
|
38
|
|
72
|
|
76
|
|
Lease operating
expenses
|
467
|
|
560
|
|
948
|
|
1,108
|
|
Gathering and
transportation
|
49
|
|
66
|
|
105
|
|
136
|
|
Taxes other than
income
|
55
|
|
177
|
|
128
|
|
358
|
|
General and
administrative
|
111
|
|
113
|
|
193
|
|
221
|
|
Transaction,
reorganization & separation costs
|
66
|
|
14
|
|
120
|
|
32
|
|
Financing costs,
net
|
63
|
|
52
|
|
133
|
|
97
|
|
|
|
7,669
|
|
2,378
|
|
16,823
|
|
4,486
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS)
BEFORE INCOME TAXES
|
(5,692)
|
|
911
|
|
(13,216)
|
|
2,191
|
|
Current income tax
provision
|
665
|
|
373
|
|
580
|
|
740
|
|
Deferred income tax
provision (benefit)
|
(1,525)
|
|
(19)
|
|
(4,460)
|
|
144
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM
CONTINUING OPS INCLUDING NONCONTROLLING INTEREST
|
(4,832)
|
|
557
|
|
(9,336)
|
|
1,307
|
|
Income (Loss) from
discontinued operations, net of tax
|
(732)
|
|
56
|
|
(864)
|
|
(360)
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS)
INCLUDING NONCONTROLLING INTEREST
|
(5,564)
|
|
613
|
|
(10,200)
|
|
947
|
|
Net income
attributable to noncontrolling interest
|
36
|
|
108
|
|
51
|
|
206
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS)
ATTRIBUTABLE TO COMMON STOCK
|
$
(5,600)
|
|
$
505
|
|
$
(10,251)
|
|
$
741
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON SHAREHOLDERS
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations attributable to common
shareholders
|
$
(4,868)
|
|
$
449
|
|
$
(9,387)
|
|
$
1,101
|
|
Net income (loss)
from discontinued operations
|
(732)
|
|
56
|
|
(864)
|
|
(360)
|
|
Net income (loss)
attributable to common shareholders
|
$
(5,600)
|
|
$
505
|
|
$
(10,251)
|
|
$
741
|
|
|
|
|
|
|
|
|
|
|
BASIC NET INCOME
(LOSS) PER COMMON SHARE:
|
|
|
|
|
|
|
|
|
Basic net income
(loss) from continuing operations per share
|
$
(12.89)
|
|
$
1.17
|
|
$
(24.88)
|
|
$
2.83
|
|
Basic net income
(loss) from discontinued operations per share
|
(1.94)
|
|
0.14
|
|
(2.29)
|
|
(0.93)
|
|
Basic net income
(loss) per share
|
$
(14.83)
|
|
$
1.31
|
|
$
(27.17)
|
|
$
1.90
|
|
|
|
|
|
|
|
|
|
|
DILUTED NET INCOME
(LOSS) PER COMMON SHARE:
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) from continuing operations per share
|
$
(12.89)
|
|
$
1.17
|
|
$
(24.88)
|
|
$
2.82
|
|
Diluted net income
(loss) from discontinued operations per share
|
(1.94)
|
|
0.14
|
|
(2.29)
|
|
(0.93)
|
|
Diluted net income
(loss) per share
|
$
(14.83)
|
|
$
1.31
|
|
$
(27.17)
|
|
$
1.89
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE
NUMBER OF COMMON
|
|
|
|
|
|
|
|
SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
|
378
|
|
385
|
|
377
|
|
390
|
|
Diluted
|
|
378
|
|
387
|
|
377
|
|
392
|
|
|
|
|
|
|
|
|
|
|
DIVIDENDS DECLARED
PER COMMON SHARE
|
$
0.25
|
|
$
0.25
|
|
$
0.50
|
|
$
0.50
|
APACHE
CORPORATION
|
PRODUCTION
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
2Q15
|
|
1Q15
|
|
2Q14
|
|
2Q15 to
1Q15
|
|
2Q15 to
2Q14
|
|
YTD
2015
|
|
YTD
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OIL VOLUME -
Barrels per day
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permian
|
|
|
97,814
|
|
94,461
|
|
90,536
|
|
4%
|
|
8%
|
|
96,146
|
|
89,437
|
|
Midcontinent
(formerly Central)
|
|
16,491
|
|
18,509
|
|
21,987
|
|
-11%
|
|
-25%
|
|
17,495
|
|
21,837
|
|
Gulf Coast
|
|
7,940
|
|
7,784
|
|
10,977
|
|
2%
|
|
-28%
|
|
7,862
|
|
10,976
|
|
Canada
|
|
|
15,791
|
|
16,875
|
|
17,981
|
|
-6%
|
|
-12%
|
|
16,330
|
|
17,786
|
|
|
N.A.
Onshore
|
|
138,036
|
|
137,629
|
|
141,481
|
|
0%
|
|
-2%
|
|
137,833
|
|
140,036
|
|
Gulf of
Mexico
|
|
5,453
|
|
5,885
|
|
6,896
|
|
-7%
|
|
-21%
|
|
5,668
|
|
6,592
|
|
GOM Shelf
|
|
-
|
|
-
|
|
2
|
|
NM
|
|
NM
|
|
-
|
|
339
|
|
Egypt
(1)
|
|
|
99,975
|
|
91,971
|
|
88,643
|
|
9%
|
|
13%
|
|
95,995
|
|
88,370
|
|
North Sea
|
|
58,873
|
|
61,699
|
|
61,610
|
|
-5%
|
|
-4%
|
|
60,279
|
|
60,358
|
|
|
International and
Offshore (1)
|
|
164,301
|
|
159,555
|
|
157,151
|
|
3%
|
|
5%
|
|
161,942
|
|
155,659
|
|
|
|
Total
(1)
|
|
302,337
|
|
297,184
|
|
298,632
|
|
2%
|
|
1%
|
|
299,775
|
|
295,695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIQUIDS -
Barrels per day
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permian
|
|
|
133,043
|
|
122,445
|
|
119,712
|
|
9%
|
|
11%
|
|
127,773
|
|
116,666
|
|
Midcontinent
|
|
32,359
|
|
34,654
|
|
45,725
|
|
-7%
|
|
-29%
|
|
33,501
|
|
45,931
|
|
Gulf Coast
|
|
11,264
|
|
10,328
|
|
13,522
|
|
9%
|
|
-17%
|
|
10,798
|
|
13,460
|
|
Canada
|
|
|
21,616
|
|
22,728
|
|
23,902
|
|
-5%
|
|
-10%
|
|
22,169
|
|
24,626
|
|
|
N.A.
Onshore
|
|
198,282
|
|
190,155
|
|
202,861
|
|
4%
|
|
-2%
|
|
194,241
|
|
200,683
|
|
Gulf of
Mexico
|
|
5,976
|
|
6,433
|
|
8,062
|
|
-7%
|
|
-26%
|
|
6,203
|
|
7,591
|
|
GOM Shelf
|
|
-
|
|
-
|
|
2
|
|
NM
|
|
NM
|
|
-
|
|
384
|
|
Egypt
(1)
|
|
|
101,189
|
|
93,002
|
|
89,527
|
|
9%
|
|
13%
|
|
97,118
|
|
88,930
|
|
North Sea
|
|
59,699
|
|
62,585
|
|
62,977
|
|
-5%
|
|
-5%
|
|
61,135
|
|
61,588
|
|
|
International and
Offshore (1)
|
|
166,864
|
|
162,020
|
|
160,568
|
|
3%
|
|
4%
|
|
164,456
|
|
158,493
|
|
|
|
Total
(1)
|
|
365,146
|
|
352,175
|
|
363,429
|
|
4%
|
|
0%
|
|
358,697
|
|
359,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATURAL GAS VOLUME
- Mcf per day
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permian
|
|
|
234,379
|
|
216,968
|
|
213,192
|
|
8%
|
|
10%
|
|
225,722
|
|
214,519
|
|
Midcontinent
|
|
175,967
|
|
190,214
|
|
264,948
|
|
-7%
|
|
-34%
|
|
183,051
|
|
262,636
|
|
Gulf Coast
|
|
16,252
|
|
7,659
|
|
95,765
|
|
112%
|
|
-83%
|
|
11,979
|
|
97,494
|
|
Canada
|
|
|
282,971
|
|
287,556
|
|
316,740
|
|
-2%
|
|
-11%
|
|
285,251
|
|
347,057
|
|
|
N.A.
Onshore
|
|
709,569
|
|
702,397
|
|
890,645
|
|
1%
|
|
-20%
|
|
706,003
|
|
921,706
|
|
Gulf of
Mexico
|
|
20,190
|
|
20,977
|
|
22,804
|
|
-4%
|
|
-11%
|
|
20,581
|
|
19,517
|
|
GOM Shelf
|
|
-
|
|
-
|
|
261
|
|
NM
|
|
NM
|
|
-
|
|
674
|
|
Egypt
(1)
|
|
|
405,544
|
|
363,989
|
|
367,950
|
|
11%
|
|
10%
|
|
384,881
|
|
372,628
|
|
North Sea
|
|
56,367
|
|
50,445
|
|
54,848
|
|
12%
|
|
3%
|
|
53,423
|
|
49,986
|
|
|
International and
Offshore (1)
|
|
482,101
|
|
435,411
|
|
445,863
|
|
11%
|
|
8%
|
|
458,885
|
|
442,805
|
|
|
|
Total
(1)
|
|
1,191,670
|
|
1,137,808
|
|
1,336,508
|
|
5%
|
|
-11%
|
|
1,164,888
|
|
1,364,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOE per
day
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permian
|
|
|
172,106
|
|
158,606
|
|
155,244
|
|
9%
|
|
11%
|
|
165,394
|
|
152,420
|
|
Midcontinent
|
|
61,688
|
|
66,357
|
|
89,883
|
|
-7%
|
|
-31%
|
|
64,009
|
|
89,704
|
|
Gulf Coast
|
|
13,973
|
|
11,604
|
|
29,483
|
|
20%
|
|
-53%
|
|
12,795
|
|
29,710
|
|
Canada
|
|
|
68,778
|
|
70,653
|
|
76,692
|
|
-3%
|
|
-10%
|
|
69,711
|
|
82,469
|
|
|
N.A.
Onshore
|
|
316,545
|
|
307,220
|
|
351,302
|
|
3%
|
|
-10%
|
|
311,909
|
|
354,303
|
|
Gulf of
Mexico
|
|
9,340
|
|
9,930
|
|
11,862
|
|
-6%
|
|
-21%
|
|
9,633
|
|
10,843
|
|
GOM Shelf
|
|
-
|
|
-
|
|
46
|
|
NM
|
|
NM
|
|
-
|
|
496
|
|
Egypt (1,
2)
|
|
|
168,779
|
|
153,667
|
|
150,853
|
|
10%
|
|
12%
|
|
161,264
|
|
151,035
|
|
North Sea
|
|
69,094
|
|
70,993
|
|
72,118
|
|
-3%
|
|
-4%
|
|
70,038
|
|
69,918
|
|
|
International and
Offshore (1)
|
|
247,213
|
|
234,590
|
|
234,879
|
|
5%
|
|
5%
|
|
240,935
|
|
232,292
|
|
|
|
Total
(1)
|
|
563,758
|
|
541,810
|
|
586,181
|
|
4%
|
|
-4%
|
|
552,844
|
|
586,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total excluding
noncontrolling interests
|
|
507,699
|
|
490,561
|
|
535,934
|
|
3%
|
|
-5%
|
|
499,177
|
|
536,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Includes net production volumes
attributed to our noncontrolling partner in Egypt below:
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (b/d)
|
|
33,247
|
|
30,671
|
|
29,508
|
|
|
|
|
|
31,966
|
|
29,288
|
|
|
|
|
Gas
(Mcf/d)
|
|
134,445
|
|
121,408
|
|
122,665
|
|
|
|
|
|
127,963
|
|
123,726
|
|
|
|
|
NGL (b/d)
|
|
404
|
|
343
|
|
295
|
|
|
|
|
|
374
|
|
187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)Egypt
Gross Production - BOE per day
|
|
349,398
|
|
343,762
|
|
351,059
|
|
2%
|
|
0%
|
|
346,597
|
|
351,944
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil (b/d)
|
|
9,849
|
|
20,905
|
|
14,555
|
|
|
|
|
|
15,346
|
|
19,107
|
|
|
|
Gas
(Mcf/d)
|
|
149,336
|
|
230,691
|
|
210,470
|
|
|
|
|
|
189,789
|
|
283,402
|
|
|
|
NGL (b/d)
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
-
|
|
640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOE/d
|
|
34,738
|
|
59,353
|
|
49,633
|
|
|
|
|
|
46,978
|
|
66,981
|
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 production attributable to 1) divested
assets, 2) noncontrolling interest in Egypt, and 3) 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
|
|
|
|
|
|
|
|
|
|
|
2Q15
|
|
1Q15
|
|
2Q14
|
|
2Q15 to
1Q15
|
|
2Q15 to
2Q14
|
|
YTD
2015
|
|
YTD
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OIL VOLUME
- Barrels per day
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permian
|
|
|
97,814
|
|
94,461
|
|
90,536
|
|
4%
|
|
8%
|
|
96,146
|
|
89,437
|
|
Midcontinent
(formerly Central)
|
|
16,515
|
|
18,514
|
|
17,222
|
|
-11%
|
|
-4%
|
|
17,509
|
|
16,553
|
|
Gulf Coast
|
|
7,937
|
|
7,752
|
|
2,893
|
|
2%
|
|
174%
|
|
7,845
|
|
2,873
|
|
Canada
|
|
|
15,776
|
|
16,817
|
|
17,817
|
|
-6%
|
|
-11%
|
|
16,294
|
|
17,614
|
|
|
N.A.
Onshore
|
|
138,042
|
|
137,544
|
|
128,468
|
|
0%
|
|
7%
|
|
137,794
|
|
126,477
|
|
Gulf of
Mexico
|
|
5,453
|
|
5,885
|
|
6,896
|
|
-7%
|
|
-21%
|
|
5,668
|
|
6,592
|
|
Egypt
|
|
|
|
54,977
|
|
54,558
|
|
43,117
|
|
1%
|
|
28%
|
|
54,769
|
|
43,514
|
|
North Sea
|
|
58,164
|
|
59,818
|
|
58,971
|
|
-3%
|
|
-1%
|
|
58,986
|
|
57,039
|
|
|
International and
Offshore
|
|
118,594
|
|
120,261
|
|
108,984
|
|
-1%
|
|
9%
|
|
119,423
|
|
107,145
|
|
|
|
Total
|
|
256,636
|
|
257,805
|
|
237,452
|
|
0%
|
|
8%
|
|
257,217
|
|
233,622
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIQUIDS - Barrels per day
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permian
|
|
|
133,043
|
|
122,445
|
|
119,712
|
|
9%
|
|
11%
|
|
127,773
|
|
116,665
|
|
Midcontinent
|
|
32,265
|
|
34,773
|
|
32,990
|
|
-7%
|
|
-2%
|
|
33,512
|
|
32,116
|
|
Gulf Coast
|
|
11,266
|
|
10,204
|
|
3,712
|
|
10%
|
|
204%
|
|
10,738
|
|
3,571
|
|
Canada
|
|
|
21,575
|
|
22,670
|
|
23,257
|
|
-5%
|
|
-7%
|
|
22,120
|
|
23,511
|
|
|
N.A.
Onshore
|
|
198,149
|
|
190,092
|
|
179,671
|
|
4%
|
|
10%
|
|
194,143
|
|
175,863
|
|
Gulf of
Mexico
|
|
5,976
|
|
6,433
|
|
8,062
|
|
-7%
|
|
-26%
|
|
6,203
|
|
7,591
|
|
Egypt
|
|
|
|
55,648
|
|
55,170
|
|
43,572
|
|
1%
|
|
28%
|
|
55,411
|
|
43,805
|
|
North Sea
|
|
58,966
|
|
60,657
|
|
60,169
|
|
-3%
|
|
-2%
|
|
59,807
|
|
58,057
|
|
|
International and
Offshore
|
|
120,590
|
|
122,260
|
|
111,803
|
|
-1%
|
|
8%
|
|
121,421
|
|
109,453
|
|
|
|
Total
|
|
318,739
|
|
312,352
|
|
291,474
|
|
2%
|
|
9%
|
|
315,564
|
|
285,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATURAL GAS
VOLUME - Mcf per day
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permian
|
|
|
234,380
|
|
216,968
|
|
213,192
|
|
8%
|
|
10%
|
|
225,721
|
|
214,519
|
|
Midcontinent
|
|
176,345
|
|
189,967
|
|
175,416
|
|
-7%
|
|
1%
|
|
183,119
|
|
170,782
|
|
Gulf Coast
|
|
16,333
|
|
9,190
|
|
8,892
|
|
78%
|
|
84%
|
|
12,781
|
|
9,107
|
|
Canada
|
|
|
282,651
|
|
285,520
|
|
287,603
|
|
-1%
|
|
-2%
|
|
284,078
|
|
289,169
|
|
|
N.A.
Onshore
|
|
709,709
|
|
701,645
|
|
685,103
|
|
1%
|
|
4%
|
|
705,699
|
|
683,577
|
|
Gulf of
Mexico
|
|
20,190
|
|
20,977
|
|
22,817
|
|
-4%
|
|
-12%
|
|
20,581
|
|
19,523
|
|
Egypt
|
|
|
|
233,797
|
|
223,548
|
|
181,791
|
|
5%
|
|
29%
|
|
228,701
|
|
187,310
|
|
North Sea
|
|
55,489
|
|
49,325
|
|
50,541
|
|
12%
|
|
10%
|
|
52,424
|
|
44,130
|
|
|
International and
Offshore
|
|
309,476
|
|
293,850
|
|
255,149
|
|
5%
|
|
21%
|
|
301,706
|
|
250,963
|
|
|
|
Total
|
|
1,019,185
|
|
995,495
|
|
940,252
|
|
2%
|
|
8%
|
|
1,007,405
|
|
934,540
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOE per
day
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Permian
|
|
|
172,106
|
|
158,606
|
|
155,244
|
|
9%
|
|
11%
|
|
165,393
|
|
152,419
|
|
Midcontinent
|
|
61,655
|
|
66,435
|
|
62,225
|
|
-7%
|
|
-1%
|
|
64,032
|
|
60,580
|
|
Gulf Coast
|
|
13,988
|
|
11,736
|
|
5,194
|
|
19%
|
|
169%
|
|
12,868
|
|
5,089
|
|
Canada
|
|
|
68,684
|
|
70,257
|
|
71,191
|
|
-2%
|
|
-4%
|
|
69,466
|
|
71,706
|
|
|
N.A.
Onshore
|
|
316,433
|
|
307,034
|
|
293,854
|
|
3%
|
|
8%
|
|
311,759
|
|
289,794
|
|
Gulf of
Mexico
|
|
9,340
|
|
9,930
|
|
11,865
|
|
-6%
|
|
-21%
|
|
9,633
|
|
10,845
|
|
Egypt
|
|
|
|
94,615
|
|
92,428
|
|
73,871
|
|
2%
|
|
28%
|
|
93,527
|
|
75,023
|
|
North Sea
|
|
68,214
|
|
68,878
|
|
68,592
|
|
-1%
|
|
-1%
|
|
68,544
|
|
65,412
|
|
|
International and
Offshore
|
|
172,169
|
|
171,236
|
|
154,328
|
|
1%
|
|
12%
|
|
171,704
|
|
151,280
|
|
|
|
Total
|
|
488,602
|
|
478,270
|
|
448,182
|
|
2%
|
|
9%
|
|
483,463
|
|
441,074
|
APACHE
CORPORATION
|
PRICE
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q15
|
|
1Q15
|
|
2Q14
|
|
YTD
2015
|
|
YTD
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE OIL PRICE
PER BARREL
|
|
|
|
|
|
|
|
|
|
|
|
Permian
|
|
|
$ 53.77
|
|
$ 44.44
|
|
$ 94.33
|
|
$ 49.21
|
|
$ 94.05
|
|
Midcontinent
(formerly Central)
|
|
52.46
|
|
44.50
|
|
100.39
|
|
48.27
|
|
97.10
|
|
Gulf Coast
|
|
56.79
|
|
47.92
|
|
103.81
|
|
52.42
|
|
102.84
|
|
Canada
|
|
|
52.22
|
|
39.76
|
|
94.66
|
|
45.81
|
|
91.47
|
|
|
N.A.
Onshore
|
|
53.56
|
|
44.07
|
|
96.06
|
|
48.85
|
|
94.91
|
|
Gulf of
Mexico
|
|
57.69
|
|
45.87
|
|
102.63
|
|
51.59
|
|
102.06
|
|
Egypt
|
|
|
|
60.83
|
|
52.29
|
|
109.74
|
|
56.76
|
|
108.24
|
|
North Sea
|
|
64.03
|
|
49.95
|
|
109.33
|
|
56.86
|
|
108.00
|
|
|
|
Total
|
|
58.09
|
|
47.87
|
|
102.95
|
|
53.05
|
|
101.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE NATURAL
GAS PRICE PER MCF
|
|
|
|
|
|
|
|
|
|
|
Permian
|
|
|
$
2.24
|
|
$
2.44
|
|
$
4.48
|
|
$
2.33
|
|
$
4.63
|
|
Midcontinent
|
|
2.41
|
|
2.93
|
|
4.49
|
|
2.68
|
|
4.84
|
|
Gulf Coast
|
|
1.93
|
|
1.42
|
|
4.72
|
|
1.77
|
|
4.83
|
|
Canada
|
|
|
2.34
|
|
2.58
|
|
4.21
|
|
2.46
|
|
4.30
|
|
|
N.A.
Onshore
|
|
2.31
|
|
2.60
|
|
4.41
|
|
2.45
|
|
4.62
|
|
Gulf of
Mexico
|
|
2.61
|
|
2.92
|
|
4.35
|
|
2.77
|
|
4.71
|
|
Egypt
|
|
|
|
2.91
|
|
2.92
|
|
2.96
|
|
2.92
|
|
2.99
|
|
North Sea
|
|
7.35
|
|
7.40
|
|
7.75
|
|
7.37
|
|
9.07
|
|
|
|
Total
|
|
2.73
|
|
2.93
|
|
4.15
|
|
2.82
|
|
4.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE NGL PRICE
PER BARREL
|
|
|
|
|
|
|
|
|
|
|
|
Permian
|
|
|
$ 10.28
|
|
$ 11.62
|
|
$ 28.46
|
|
$ 10.87
|
|
$ 29.85
|
|
Midcontinent
|
|
8.82
|
|
9.65
|
|
25.03
|
|
9.23
|
|
27.74
|
|
Gulf Coast
|
|
13.75
|
|
12.17
|
|
27.86
|
|
13.07
|
|
31.76
|
|
Canada
|
|
|
4.41
|
|
11.09
|
|
31.67
|
|
7.74
|
|
37.56
|
|
|
N.A.
Onshore
|
|
9.52
|
|
10.98
|
|
27.42
|
|
10.20
|
|
29.96
|
|
Gulf of
Mexico
|
|
14.72
|
|
13.77
|
|
31.73
|
|
14.24
|
|
31.84
|
|
Egypt
|
|
|
|
28.82
|
|
36.29
|
|
57.67
|
|
32.23
|
|
59.05
|
|
North Sea
|
|
30.94
|
|
24.74
|
|
61.81
|
|
27.75
|
|
69.77
|
|
|
|
Total
|
|
10.21
|
|
11.71
|
|
28.64
|
|
10.91
|
|
30.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
Oil
price ($/Bbl)
|
|
$ 63.60
|
|
$ 43.17
|
|
$ 115.34
|
|
$ 49.76
|
|
$ 106.35
|
|
Gas price
($/Mcf)
|
|
3.88
|
|
4.19
|
|
4.40
|
|
4.07
|
|
4.07
|
|
NGL price
($/Bbl)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
24.57
|
APACHE
CORPORATION
|
SUMMARY BALANCE
SHEET INFORMATION
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
2,950
|
|
$
769
|
|
|
|
|
|
Assets Held for
Sale
|
|
-
|
|
1,628
|
|
|
|
|
|
Other Current
Assets
|
|
2,543
|
|
4,018
|
|
|
|
|
|
Property and
Equipment, net
|
|
28,315
|
|
48,076
|
|
|
|
|
|
Goodwill
|
|
87
|
|
87
|
|
|
|
|
|
Other
Assets
|
|
1,417
|
|
1,374
|
|
|
|
|
|
Total
Assets
|
|
$
35,312
|
|
$
55,952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Current
Liabilities
|
|
$
2,383
|
|
$
3,664
|
|
|
|
|
|
Long-Term
Debt
|
|
9,676
|
|
11,245
|
|
|
|
|
|
Deferred Credits and
Other Noncurrent Liabilities
|
|
5,498
|
|
12,906
|
|
|
|
|
|
Apache Shareholders'
Equity
|
|
15,544
|
|
25,937
|
|
|
|
|
|
Noncontrolling
interest
|
|
2,211
|
|
2,200
|
|
|
|
|
|
Total Liabilities and
Shareholders' Equity
|
|
$
35,312
|
|
$
55,952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding at end of period
|
|
377
|
|
377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of total
debt-to-capitalization
|
|
35%
|
|
29%
|
|
|
|
|
APACHE
CORPORATION
|
SUMMARY OF COSTS
INCURRED AND GTP CAPITAL INVESTMENTS
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Quarter
|
|
For the Six
Months
|
|
|
|
|
|
Ended June
30,
|
|
Ended June
30,
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs Incurred in Oil
and Gas Property:
|
|
|
|
|
|
|
|
|
|
|
Acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
Proved
|
|
$
-
|
|
$
3
|
|
$
-
|
|
$
5
|
|
|
|
Unproved
|
|
36
|
|
79
|
|
128
|
|
123
|
|
|
Exploration and
Development
|
|
1,023
|
|
2,475
|
|
2,441
|
|
4,984
|
|
|
|
|
|
1,059
|
|
2,557
|
|
2,569
|
|
5,112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GTP Capital
Investments:
|
|
|
|
|
|
|
|
|
|
|
GTP
Facilities
|
|
36
|
|
378
|
|
260
|
|
723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Costs Incurred
and GTP Capital Investments
|
|
$
1,095
|
|
$
2,935
|
|
$
2,829
|
|
$
5,835
|
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
|
|
For
the Six Months
|
|
|
|
Ended June
30,
|
|
Ended June
30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Income (Loss)
Attributable to Common Stock (GAAP)
|
$ (5,600)
|
|
$ 505
|
|
$ (10,251)
|
|
$ 741
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Oil & gas
property write-downs, net of tax
|
3,734
|
|
77
|
|
8,438
|
|
77
|
|
Discontinued
operations, net of tax
|
732
|
|
(56)
|
|
864
|
|
360
|
|
Tax adjustments
(1)
|
1,173
|
|
-
|
|
758
|
|
(5)
|
|
Transaction,
reorganization & separation costs, net of tax
|
43
|
|
9
|
|
78
|
|
21
|
|
Rig stacking costs,
net of tax
|
-
|
|
10
|
|
28
|
|
10
|
|
Unrealized commodity
derivative mark-to-market, net of tax
|
-
|
|
31
|
|
-
|
|
(18)
|
Adjusted
Earnings (Non-GAAP)
|
$ 543
|
|
$ 576
|
|
$ (85)
|
|
$ 1,186
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) per
Common Share - Diluted (GAAP)
|
$ (14.83)
|
|
$ 1.31
|
|
$ (27.17)
|
|
$ 1.89
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Oil & gas
property write-downs, net of tax
|
9.87
|
|
0.20
|
|
22.37
|
|
0.20
|
|
Discontinued
operations, net of tax
|
1.94
|
|
(0.14)
|
|
2.29
|
|
0.92
|
|
Tax adjustments
(1)
|
3.12
|
|
-
|
|
2.00
|
|
(0.01)
|
|
Transaction,
reorganization & separation costs, net of tax
|
0.12
|
|
0.02
|
|
0.21
|
|
0.05
|
|
Rig stacking costs,
net of tax
|
-
|
|
0.02
|
|
0.07
|
|
0.02
|
|
Unrealized commodity
derivative mark-to-market, net of tax
|
-
|
|
0.08
|
|
-
|
|
(0.04)
|
Adjusted Earnings Per
Share - Diluted (Non-GAAP)
|
$ 0.22
|
|
$ 1.49
|
|
$ (0.23)
|
|
$ 3.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income tax
provision (GAAP)
|
$ (860)
|
|
$ 354
|
|
$ (3,880)
|
|
$ 884
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Tax impact on oil
& gas property write-downs
|
2,081
|
|
126
|
|
4,597
|
|
126
|
|
Tax impact on
transaction, reorganization & separation costs
|
23
|
|
5
|
|
41
|
|
11
|
|
Tax impact on rig
stacking costs
|
-
|
|
5
|
|
15
|
|
5
|
|
Tax impact on
unrealized commodity derivative mark-to-market
|
-
|
|
18
|
|
-
|
|
(9)
|
|
Tax adjustments
(1)
|
(1,173)
|
|
-
|
|
(758)
|
|
5
|
Adjusted total income
tax provision
|
$ 71
|
|
$ 508
|
|
$
15
|
|
$ 1,022
|
|
|
|
|
|
|
|
|
|
|
Adjusted Effective
Tax Rate (Non-GAAP)
|
37.6%
|
|
42.7%
|
|
NM
|
|
42.3%
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Tax adjustments are
primarily related to a Canada valuation allowance and valuation
allowances associated with projected utilization of the Company's
foreign tax credit carryforward. The valuation allowances were
partially offset by $619 million in benefits for the North Sea tax
rate change in the first quarter of 2015.
|
|
|
APACHE
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES
|
(In millions, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
income (loss) before taxes to adjusted EBITDA
|
Adjusted EBITDA is a
non-GAAP financial measure. EBITDA is a widely accepted financial
indicator of a company's ability to incur and service debt, fund
capital expenditures, and make distributions to shareholders.
Adjusted EBITDA generally excludes certain items that management
believes affect the comparability of operating results or are not
related to Apache's ongoing operations. Management uses
adjusted EBITDA to evaluate the company's operational trends and
performance relative to other oil and gas
companies.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Quarter
|
|
For the Six Months
|
|
|
|
Ended June 30,
|
|
Ended June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
$
(5,692)
|
|
$
911
|
|
$ (13,216)
|
|
$
2,191
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
|
|
|
|
|
|
Oil and gas property
and equipment
|
|
|
|
|
|
|
|
|
Recurring
|
923
|
|
1,074
|
|
1,922
|
|
2,096
|
|
Additional
|
5,816
|
|
203
|
|
13,036
|
|
203
|
|
Other
assets
|
83
|
|
81
|
|
166
|
|
159
|
|
Asset retirement
obligation accretion
|
36
|
|
38
|
|
72
|
|
76
|
|
Transaction,
reorganization & separation costs
|
66
|
|
14
|
|
120
|
|
32
|
|
Financing costs,
net
|
63
|
|
52
|
|
133
|
|
97
|
|
Rig stacking
costs
|
-
|
|
15
|
|
43
|
|
15
|
|
Unrealized commodity
derivative mark-to-market
|
-
|
|
48
|
|
-
|
|
(27)
|
|
Less: net income
attributable to noncontrolling interests
|
(36)
|
|
(108)
|
|
(51)
|
|
(206)
|
Adjusted EBITDA
(Non-GAAP)
|
$
1,259
|
|
$
2,328
|
|
$
2,225
|
|
$
4,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
debt to net debt
|
Net debt is a
non-GAAP financial measure. Management uses net debt as a
measure of the Company's outstanding debt obligations that would
not be readily satisfied by its cash and cash equivelents on
hand.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
|
|
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
debt
|
$
-
|
|
$
2,598
|
|
$
-
|
|
|
Long-term
debt
|
9,676
|
|
9,675
|
|
11,245
|
|
|
|
Total debt
|
9,676
|
|
12,273
|
|
11,245
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
2,950
|
|
229
|
|
769
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt
|
|
$
6,726
|
|
$ 12,044
|
|
$ 10,476
|
|
|
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SOURCE Apache Corporation