HOUSTON, July 31, 2014 /PRNewswire/ -- Apache
Corporation (NYSE, Nasdaq: APA) today announced second-quarter 2014
earnings of $505 million or
$1.31 per diluted common share and
adjusted earnings, which exclude certain items that impact the
comparability of results, of $644
million or $1.67 per share.
For the same period in the prior year, Apache's earnings were
$1 billion or $2.54 per diluted common share and adjusted
earnings were $813 million or
$2.04 per share. Net cash provided by
operating activities totaled approximately $2.3 billion in second-quarter 2014, compared
with $2.8 billion in the prior year,
with cash from operations before changes in operating assets and
liabilities totaling $2.2 billion,
compared with $2.6 billion in
second-quarter 2013. Prior-year results reflect contributions from
properties that have been divested, including producing assets in
the Gulf of Mexico, Canada, Argentina and a noncontrolling interest in
Egypt.
"Record-setting performance by our Permian Region continues to
drive strong results for the company," said G. Steven Farris, chairman, chief executive
officer and president of Apache. "Apache's onshore North American
liquids production increased 18 percent on a pro forma basis in the
second-quarter 2014 compared with the same period a year ago," he
said.
"We are excited about our initial results in emerging plays in
the East Texas Eagle Ford and Canyon Lime in the U.S., and the
Montney and Duvernay in Canada," Farris said. "We continue to broaden
and advance our compelling North American onshore portfolio.
"During the quarter, Apache took additional steps in focusing on
North American onshore liquids growth by completing the sale of the
non-producing Lucius and Heidelberg deepwater developments and
divesting selected, primarily gas-producing properties in western
Canada and South Texas. This brings our divestments over
the last year to $10 billion," he
said.
Apache also returned additional capital to shareholders,
purchasing 14.9 million shares of Apache common stock on the open
market during the first six months of 2014, including 8.9 million
shares during the second quarter at an average price of
$87.30.
Update on repositioning for North American onshore
growth
Consistent with the company's ongoing repositioning for
profitable and repeatable North American onshore growth, Apache
intends to completely exit the Wheatstone and Kitimat LNG
projects. In addition, Apache is evaluating its international
assets and exploring multiple opportunities, including the
potential separation of some or all of these assets through the
capital markets.
Second-quarter 2014 production and operating
highlights
Highlights from second-quarter include:
- Total reported worldwide net daily production of oil, natural
gas and natural gas liquids (NGLs) averaged 636,000 boe per day,
with pro forma production averaging 550,000 boe per day.
- North America onshore regions
increased pro forma liquids production 31,000 barrels per day over
the prior-year period. Total pro forma production averaged 201,000
barrels per day.
- The Permian Region achieved record production averaging 155,000
boe per day, up 26 percent from the prior-year period. The region
averaged 37 operated rigs during the quarter and drilled 164 gross
operated wells (74 horizontal).
Oil and gas prices
Apache's mix of hydrocarbon production during the second-quarter
2014 included approximately 49 percent crude oil and 10 percent
NGLs. Crude oil and NGLs contributed 84 percent of the company's
revenue during the period.
Worldwide, Apache received an average price of $103.53 per barrel of crude oil during the second
quarter compared with $98.47 per
barrel in the prior-year period. Apache received an average price
of $4.18 per thousand cubic feet
(Mcf) of natural gas, compared with $3.97 per Mcf in the prior-year period.
Conference call
Apache will conduct a conference call to discuss its results and
review its portfolio at 1 p.m. Central time
Thursday, July 31. The conference call will be webcast from
Apache's website, www.apachecorp.com. The webcast replay will be
archived on Apache's website. The conference call will be available
for delayed playback by telephone for one week beginning at
approximately 4 p.m. Central time
July 31. To access the telephone
playback, dial 855-859-2056 or 404-537-3406 for international
calls. The conference access code is 30666789.
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
the most directly comparable GAAP financial measures and
information regarding Pro Forma Production. Our quarterly
Operations and Financial Supplements are available at
http://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
drilling plans and production expectations, asset sales and
monetizations and share repurchases. 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 2013
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 June 30,
|
|
For the Six
Months Ended June 30,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
REVENUES AND
OTHER:
|
|
|
|
|
|
|
|
|
Oil
revenues
|
$
2,950
|
|
$
3,130
|
|
$
5,765
|
|
$
6,322
|
|
Gas
revenues
|
589
|
|
721
|
|
1,235
|
|
1,402
|
|
NGL
revenues
|
169
|
|
150
|
|
355
|
|
298
|
|
Oil and gas
production revenues
|
3,708
|
|
4,001
|
|
7,355
|
|
8,022
|
|
Derivative instrument
gains (losses)
|
(174)
|
|
247
|
|
(194)
|
|
147
|
|
Other
|
|
(50)
|
|
20
|
|
(2)
|
|
45
|
|
|
|
3,484
|
|
4,268
|
|
7,159
|
|
8,214
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
|
|
|
|
|
|
Oil and gas property
and equipment
|
|
|
|
|
|
|
|
|
Recurring
|
1,155
|
|
1,258
|
|
2,264
|
|
2,468
|
|
Additional
|
203
|
|
-
|
|
203
|
|
-
|
|
Other
assets
|
99
|
|
92
|
|
196
|
|
194
|
|
Asset retirement
obligation accretion
|
45
|
|
64
|
|
89
|
|
127
|
|
Lease operating
expenses
|
613
|
|
781
|
|
1,210
|
|
1,503
|
|
Gathering and
transportation
|
66
|
|
77
|
|
136
|
|
150
|
|
Taxes other than
income
|
181
|
|
170
|
|
362
|
|
399
|
|
General and
administrative
|
94
|
|
126
|
|
199
|
|
238
|
|
Acquisition,
divestiture & separation costs
|
14
|
|
-
|
|
30
|
|
-
|
|
Financing costs,
net
|
35
|
|
52
|
|
62
|
|
107
|
|
|
|
2,505
|
|
2,620
|
|
4,751
|
|
5,186
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE
INCOME TAXES
|
979
|
|
1,648
|
|
2,408
|
|
3,028
|
|
Current income tax
provision
|
325
|
|
284
|
|
741
|
|
781
|
|
Deferred income tax
provision
|
41
|
|
327
|
|
203
|
|
432
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
CONTINUING OPERATIONS INCLUDING NONCONTROLLING
INTEREST
|
613
|
|
1,037
|
|
1,464
|
|
1,815
|
|
Loss from
discontinued operations, net of tax
|
-
|
|
(2)
|
|
(517)
|
|
(63)
|
|
|
|
|
|
|
|
|
|
|
INCOME INCLUDING
NONCONTROLLING INTEREST
|
613
|
|
1,035
|
|
947
|
|
1,752
|
|
Net income
attributable to noncontrolling interest
|
108
|
|
-
|
|
206
|
|
-
|
|
Preferred stock
dividends
|
-
|
|
19
|
|
-
|
|
38
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
ATTRIBUTABLE TO COMMON STOCK
|
$
505
|
|
$
1,016
|
|
$
741
|
|
$
1,714
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO COMMON SHAREHOLDERS
|
|
|
|
|
|
|
|
|
Net income from
continuing operations attributable to common
shareholders
|
$
505
|
|
$
1,018
|
|
$
1,258
|
|
$
1,777
|
|
Net income (loss)
from discontinued operations
|
-
|
|
(2)
|
|
(517)
|
|
(63)
|
|
Net income
attributable to common shareholders
|
$
505
|
|
$
1,016
|
|
$
741
|
|
$
1,714
|
|
|
|
|
|
|
|
|
|
|
BASIC NET INCOME
(LOSS) PER COMMON SHARE:
|
|
|
|
|
|
|
|
|
Basic net income from
continuing operations per share
|
$
1.31
|
|
$
2.60
|
|
$
3.23
|
|
$
4.53
|
|
Basic net loss from
discontinued operations per share
|
-
|
|
(0.01)
|
|
(1.33)
|
|
(0.16)
|
|
Basic net income per
share
|
$
1.31
|
|
$
2.59
|
|
$
1.90
|
|
$
4.37
|
|
|
|
|
|
|
|
|
|
|
DILUTED NET INCOME
(LOSS) PER COMMON SHARE:
|
|
|
|
|
|
|
|
|
Diluted net income
from continuing operations per share
|
$
1.31
|
|
$
2.54
|
|
$
3.21
|
|
$
4.45
|
|
Diluted net loss from
discontinued operations per share
|
-
|
|
-
|
|
(1.32)
|
|
(0.15)
|
|
Diluted net income
per share
|
$
1.31
|
|
$
2.54
|
|
$
1.89
|
|
$
4.30
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE
NUMBER OF COMMON
|
|
|
|
|
|
|
|
SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
|
385
|
|
392
|
|
390
|
|
392
|
|
Diluted
|
|
387
|
|
408
|
|
392
|
|
408
|
|
|
|
|
|
|
|
|
|
|
DIVIDENDS DECLARED
PER COMMON SHARE
|
$
0.25
|
|
$
0.20
|
|
$
0.50
|
|
$
0.40
|
|
|
APACHE
CORPORATION
|
PRODUCTION
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended June
30,
|
|
For the Six Months Ended June
30,
|
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OIL VOLUME
- Barrels per day
|
|
|
|
|
|
|
|
|
|
Permian
|
|
|
90,536
|
|
68,811
|
|
89,437
|
|
68,358
|
|
Central
|
|
|
21,987
|
|
21,950
|
|
21,837
|
|
21,242
|
|
Gulf Coast
|
|
10,977
|
|
10,593
|
|
10,976
|
|
10,287
|
|
Canada
|
|
|
17,981
|
|
18,573
|
|
17,786
|
|
17,878
|
|
|
N.A.
Onshore
|
|
141,481
|
|
119,927
|
|
140,036
|
|
117,765
|
|
Gulf of
Mexico
|
|
6,896
|
|
8,223
|
|
6,592
|
|
7,732
|
|
GOM Shelf
|
|
2
|
|
47,721
|
|
339
|
|
45,684
|
|
|
North
America
|
|
148,379
|
|
175,871
|
|
146,967
|
|
171,181
|
|
Egypt(1)
|
|
|
88,643
|
|
88,002
|
|
88,370
|
|
89,649
|
|
Australia
|
|
|
14,555
|
|
21,810
|
|
15,683
|
|
20,911
|
|
North Sea
|
|
61,610
|
|
63,667
|
|
60,358
|
|
66,051
|
|
|
International(1)
|
|
164,808
|
|
173,479
|
|
164,411
|
|
176,611
|
|
|
|
Total(1)
|
|
313,187
|
|
349,350
|
|
311,378
|
|
347,792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATURAL GAS
VOLUME - Mcf per day
|
|
|
|
|
|
|
|
|
|
Permian
|
|
|
213,192
|
|
190,455
|
|
214,519
|
|
188,097
|
|
Central
|
|
|
264,948
|
|
275,507
|
|
262,636
|
|
276,262
|
|
Gulf Coast
|
|
95,765
|
|
107,424
|
|
97,494
|
|
106,423
|
|
Canada
|
|
|
316,740
|
|
520,797
|
|
347,057
|
|
519,991
|
|
|
N.A.
Onshore
|
|
890,645
|
|
1,094,183
|
|
921,706
|
|
1,090,773
|
|
Gulf of
Mexico
|
|
22,804
|
|
24,957
|
|
19,517
|
|
28,030
|
|
GOM Shelf
|
|
261
|
|
262,318
|
|
674
|
|
258,383
|
|
|
North
America
|
|
913,710
|
|
1,381,458
|
|
941,897
|
|
1,377,186
|
|
Egypt(1)
|
|
|
367,950
|
|
357,291
|
|
372,628
|
|
361,428
|
|
Australia
|
|
|
210,470
|
|
212,022
|
|
213,116
|
|
213,202
|
|
North Sea
|
|
54,848
|
|
48,411
|
|
49,986
|
|
51,704
|
|
|
International(1)
|
|
633,268
|
|
617,724
|
|
635,730
|
|
626,334
|
|
|
|
Total(1)
|
|
1,546,978
|
|
1,999,182
|
|
1,577,627
|
|
2,003,520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NGL VOLUME
- Barrels per day
|
|
|
|
|
|
|
|
|
|
Permian
|
|
|
29,176
|
|
22,692
|
|
27,229
|
|
21,644
|
|
Central
|
|
|
23,738
|
|
23,021
|
|
24,094
|
|
21,279
|
|
Gulf Coast
|
|
2,545
|
|
2,502
|
|
2,484
|
|
2,408
|
|
Canada
|
|
|
5,921
|
|
6,686
|
|
6,840
|
|
6,675
|
|
|
N.A.
Onshore
|
|
61,380
|
|
54,901
|
|
60,647
|
|
52,006
|
|
Gulf of
Mexico
|
|
1,166
|
|
1,162
|
|
999
|
|
1,025
|
|
GOM Shelf
|
|
-
|
|
7,641
|
|
45
|
|
6,824
|
|
|
North
America
|
|
62,546
|
|
63,704
|
|
61,691
|
|
59,855
|
|
Egypt(1)
|
|
|
884
|
|
-
|
|
560
|
|
-
|
|
North Sea
|
|
1,367
|
|
1,201
|
|
1,230
|
|
1,346
|
|
|
International(1)
|
|
2,251
|
|
1,201
|
|
1,790
|
|
1,346
|
|
|
|
Total(1)
|
|
64,797
|
|
64,905
|
|
63,481
|
|
61,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOE per
day
|
|
|
|
|
|
|
|
|
|
Permian
|
|
|
155,244
|
|
123,246
|
|
152,420
|
|
121,351
|
|
Central
|
|
|
89,883
|
|
90,888
|
|
89,704
|
|
88,565
|
|
Gulf Coast
|
|
29,483
|
|
30,998
|
|
29,710
|
|
30,432
|
|
Canada
|
|
|
76,692
|
|
112,059
|
|
82,469
|
|
111,218
|
|
|
N.A.
Onshore
|
|
351,302
|
|
357,191
|
|
354,303
|
|
351,566
|
|
Gulf of
Mexico
|
|
11,862
|
|
13,545
|
|
10,843
|
|
13,428
|
|
GOM Shelf
|
|
46
|
|
99,082
|
|
496
|
|
95,573
|
|
|
North
America
|
|
363,210
|
|
469,818
|
|
365,642
|
|
460,567
|
|
Egypt(1)
|
|
|
150,853
|
|
147,551
|
|
151,035
|
|
149,887
|
|
Australia
|
|
|
49,633
|
|
57,147
|
|
51,203
|
|
56,444
|
|
North Sea
|
|
72,118
|
|
72,936
|
|
69,918
|
|
76,015
|
|
|
International(1)
|
|
272,604
|
|
277,634
|
|
272,156
|
|
282,346
|
|
|
|
Total(1)
|
|
635,814
|
|
747,452
|
|
637,798
|
|
742,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total excluding
noncontrolling interest
|
585,567
|
|
747,452
|
|
587,702
|
|
742,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Includes production volume per day
attributable to noncontrolling interest in Egypt
|
|
|
|
|
Oil (b/d)
|
|
29,508
|
|
-
|
|
29,288
|
|
-
|
|
|
Gas
(mcf/d)
|
|
122,665
|
|
-
|
|
123,726
|
|
-
|
|
|
NGL (b/d)
|
|
295
|
|
-
|
|
187
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations - Argentina
|
|
|
|
|
|
|
|
|
Oil (b/d)
|
|
|
-
|
|
9,365
|
|
3,424
|
|
9,331
|
|
Gas
(mcf/d)
|
|
-
|
|
184,528
|
|
70,286
|
|
186,383
|
|
NGL (b/d)
|
|
-
|
|
2,239
|
|
640
|
|
2,529
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOE/d
|
|
|
-
|
|
42,359
|
|
15,778
|
|
42,924
|
|
|
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 assets that
have been divested (in the Gulf of Mexico shelf, Argentina, Canada,
and South Texas), 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended June
30,
|
|
For the Six Months Ended June
30,
|
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OIL VOLUME
- Barrels per day
|
|
|
|
|
|
|
|
|
|
Permian
|
|
|
90,536
|
|
68,811
|
|
89,437
|
|
68,358
|
|
Central
|
|
|
21,987
|
|
21,950
|
|
21,837
|
|
21,242
|
|
Gulf Coast
|
|
10,677
|
|
10,009
|
|
10,661
|
|
9,814
|
|
Canada
|
|
|
17,817
|
|
17,357
|
|
17,615
|
|
16,659
|
|
|
N.A.
Onshore
|
|
141,017
|
|
118,127
|
|
139,550
|
|
116,073
|
|
Gulf of
Mexico
|
|
6,896
|
|
8,223
|
|
6,592
|
|
7,732
|
|
GOM Shelf
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
North
America
|
|
147,913
|
|
126,350
|
|
146,142
|
|
123,805
|
|
Egypt
|
|
|
|
43,117
|
|
43,072
|
|
43,514
|
|
42,844
|
|
Australia
|
|
|
14,555
|
|
21,810
|
|
15,683
|
|
20,911
|
|
North Sea
|
|
61,610
|
|
63,667
|
|
60,358
|
|
66,051
|
|
|
International
|
|
119,282
|
|
128,549
|
|
119,555
|
|
129,806
|
|
|
|
Total
|
|
267,195
|
|
254,899
|
|
265,697
|
|
253,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATURAL GAS
VOLUME - Mcf per day
|
|
|
|
|
|
|
|
|
|
Permian
|
|
|
213,192
|
|
190,455
|
|
214,519
|
|
188,097
|
|
Central
|
|
|
264,948
|
|
275,507
|
|
262,636
|
|
276,262
|
|
Gulf Coast
|
|
80,976
|
|
83,156
|
|
81,762
|
|
82,786
|
|
Canada
|
|
|
289,744
|
|
307,139
|
|
291,270
|
|
308,950
|
|
|
N.A.
Onshore
|
|
848,860
|
|
856,257
|
|
850,187
|
|
856,095
|
|
Gulf of
Mexico
|
|
22,804
|
|
24,957
|
|
19,517
|
|
28,030
|
|
GOM Shelf
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
North
America
|
|
871,664
|
|
881,214
|
|
869,704
|
|
884,125
|
|
Egypt
|
|
|
|
181,792
|
|
177,242
|
|
187,310
|
|
176,018
|
|
Australia
|
|
|
210,470
|
|
212,022
|
|
213,116
|
|
213,202
|
|
North Sea
|
|
54,848
|
|
48,411
|
|
49,986
|
|
51,704
|
|
|
International
|
|
447,110
|
|
437,675
|
|
450,412
|
|
440,924
|
|
|
|
Total
|
|
1,318,774
|
|
1,318,889
|
|
1,320,116
|
|
1,325,049
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NGL VOLUME
- Barrels per day
|
|
|
|
|
|
|
|
|
|
Permian
|
|
|
29,176
|
|
22,692
|
|
27,229
|
|
21,644
|
|
Central
|
|
|
23,738
|
|
23,021
|
|
24,094
|
|
21,279
|
|
Gulf Coast
|
|
2,024
|
|
1,465
|
|
1,969
|
|
1,482
|
|
Canada
|
|
|
5,440
|
|
5,168
|
|
5,897
|
|
5,111
|
|
|
N.A.
Onshore
|
|
60,378
|
|
52,346
|
|
59,189
|
|
49,516
|
|
Gulf of
Mexico
|
|
1,166
|
|
1,162
|
|
999
|
|
1,025
|
|
GOM Shelf
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
North
America
|
|
61,544
|
|
53,508
|
|
60,188
|
|
50,541
|
|
Egypt
|
|
|
|
455
|
|
-
|
|
290
|
|
-
|
|
North Sea
|
|
1,367
|
|
1,201
|
|
1,230
|
|
1,346
|
|
|
International
|
|
1,822
|
|
1,201
|
|
1,520
|
|
1,346
|
|
|
|
Total
|
|
63,366
|
|
54,709
|
|
61,708
|
|
51,887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOE per
day
|
|
|
|
|
|
|
|
|
|
Permian
|
|
|
155,244
|
|
123,246
|
|
152,420
|
|
121,351
|
|
Central
|
|
|
89,883
|
|
90,888
|
|
89,704
|
|
88,565
|
|
Gulf Coast
|
|
26,197
|
|
25,333
|
|
26,257
|
|
25,094
|
|
Canada
|
|
|
71,548
|
|
73,715
|
|
72,057
|
|
73,262
|
|
|
N.A.
Onshore
|
|
342,872
|
|
313,182
|
|
340,438
|
|
308,272
|
|
Gulf of
Mexico
|
|
11,862
|
|
13,545
|
|
10,843
|
|
13,428
|
|
GOM Shelf
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
North
America
|
|
354,734
|
|
326,727
|
|
351,281
|
|
321,700
|
|
Egypt
|
|
|
|
73,871
|
|
72,612
|
|
75,022
|
|
72,180
|
|
Australia
|
|
|
49,633
|
|
57,147
|
|
51,203
|
|
56,444
|
|
North Sea
|
|
72,118
|
|
72,936
|
|
69,918
|
|
76,015
|
|
|
International
|
|
195,622
|
|
202,695
|
|
196,143
|
|
204,639
|
|
|
|
Total
|
|
550,356
|
|
529,422
|
|
547,424
|
|
526,339
|
|
|
APACHE
CORPORATION
|
PRICE
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended June
30,
|
|
For the Six Months Ended June
30,
|
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE OIL
PRICE PER BARREL
|
|
|
|
|
|
|
|
|
|
Permian
|
|
|
$ 94.33
|
|
$ 92.08
|
|
$ 94.05
|
|
$ 87.49
|
|
Central
|
|
|
100.39
|
|
89.18
|
|
97.10
|
|
88.69
|
|
Gulf Coast
|
|
103.81
|
|
106.22
|
|
102.84
|
|
108.54
|
|
Canada
|
|
|
94.66
|
|
87.38
|
|
91.47
|
|
84.97
|
|
|
N.A.
Onshore
|
|
96.06
|
|
92.03
|
|
94.91
|
|
89.16
|
|
Gulf of
Mexico
|
|
102.63
|
|
105.54
|
|
102.06
|
|
107.83
|
|
GOM Shelf
|
|
NM
|
|
106.95
|
|
NM
|
|
109.19
|
|
|
North America
(1)
|
|
96.24
|
|
96.11
|
|
95.15
|
|
94.70
|
|
Egypt
|
|
|
|
109.74
|
|
99.36
|
|
108.24
|
|
105.25
|
|
Australia
|
|
|
115.34
|
|
100.79
|
|
113.70
|
|
106.29
|
|
North Sea
|
|
109.33
|
|
102.95
|
|
108.00
|
|
106.85
|
|
|
International
|
|
110.08
|
|
100.86
|
|
108.67
|
|
105.97
|
|
|
|
Total(1)
|
|
103.53
|
|
98.47
|
|
102.29
|
|
100.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE
NATURAL GAS PRICE PER MCF
|
|
|
|
|
|
|
|
|
|
Permian
|
|
|
$ 4.48
|
|
$ 3.86
|
|
$ 4.63
|
|
$ 3.81
|
|
Central
|
|
|
4.49
|
|
3.91
|
|
4.84
|
|
3.82
|
|
Gulf Coast
|
|
4.72
|
|
4.27
|
|
4.83
|
|
3.91
|
|
Canada
|
|
|
4.21
|
|
3.52
|
|
4.30
|
|
3.37
|
|
|
N.A.
Onshore
|
|
4.41
|
|
3.76
|
|
4.62
|
|
3.61
|
|
Gulf of
Mexico
|
|
4.35
|
|
3.14
|
|
4.71
|
|
3.28
|
|
GOM Shelf
|
|
NM
|
|
4.18
|
|
NM
|
|
3.87
|
|
|
North America
(1)
|
|
4.41
|
|
3.86
|
|
4.58
|
|
3.71
|
|
Egypt
|
|
|
|
2.96
|
|
3.00
|
|
2.99
|
|
2.97
|
|
Australia
|
|
|
4.40
|
|
4.70
|
|
4.41
|
|
4.82
|
|
North Sea
|
|
7.75
|
|
10.86
|
|
9.07
|
|
10.41
|
|
|
International
|
|
3.85
|
|
4.20
|
|
3.94
|
|
4.21
|
|
|
|
Total
(1)
|
|
4.18
|
|
3.97
|
|
4.33
|
|
3.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE NGL
PRICE PER BARREL
|
|
|
|
|
|
|
|
|
|
Permian
|
|
|
$ 28.46
|
|
$ 25.53
|
|
$ 29.85
|
|
$ 25.61
|
|
Central
|
|
|
25.03
|
|
21.69
|
|
27.74
|
|
23.90
|
|
Gulf Coast
|
|
27.86
|
|
28.80
|
|
31.76
|
|
31.14
|
|
Canada
|
|
|
31.67
|
|
24.60
|
|
37.56
|
|
28.35
|
|
|
N.A.
Onshore
|
|
27.42
|
|
23.96
|
|
29.96
|
|
25.52
|
|
Gulf of
Mexico
|
|
31.73
|
|
31.26
|
|
31.84
|
|
32.73
|
|
GOM Shelf
|
|
NM
|
|
27.21
|
|
NM
|
|
27.93
|
|
|
North
America
|
|
27.50
|
|
24.48
|
|
29.83
|
|
25.92
|
|
Egypt
|
|
|
|
57.67
|
|
-
|
|
59.05
|
|
-
|
|
North Sea
|
|
61.81
|
|
70.39
|
|
69.77
|
|
70.81
|
|
|
International
|
|
60.19
|
|
70.39
|
|
66.41
|
|
70.81
|
|
|
|
Total
|
|
28.64
|
|
25.33
|
|
30.86
|
|
26.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued Operations - Argentina
|
|
|
|
|
|
|
|
|
|
Oil price
($/Bbl)
|
|
$ -
|
|
$ 77.74
|
|
$ 72.70
|
|
$ 76.56
|
|
Gas price
($/Mcf)
|
|
-
|
|
2.79
|
|
3.04
|
|
2.99
|
|
NGL price
($/Bbl)
|
|
-
|
|
20.94
|
|
24.57
|
|
26.12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Prices reflect the impact of financial derivative hedging
activities.
|
|
|
|
APACHE
CORPORATION
|
SUMMARY BALANCE
SHEET INFORMATION
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
524
|
|
$
1,906
|
|
Short-Term Restricted
Cash
|
|
1,138
|
|
-
|
|
Other Current
Assets
|
|
3,824
|
|
4,460
|
|
Property and
Equipment, net
|
|
52,470
|
|
52,421
|
|
Long-Term Restricted
Cash
|
|
229
|
|
-
|
|
Goodwill
|
|
1,369
|
|
1,369
|
|
Other
Assets
|
|
1,617
|
|
1,481
|
|
Total
Assets
|
|
$
61,171
|
|
$
61,637
|
|
|
|
|
|
|
|
|
|
Short-Term
Debt
|
|
$
1
|
|
$
53
|
|
Other Current
Liabilities
|
|
4,569
|
|
4,647
|
|
Long-Term
Debt
|
|
9,674
|
|
9,672
|
|
Deferred Credits and
Other Noncurrent Liabilities
|
|
12,035
|
|
11,872
|
|
Apache Shareholders'
Equity
|
|
32,755
|
|
33,396
|
|
Noncontrolling
interest
|
|
2,137
|
|
1,997
|
|
Total Liabilities and
Shareholders' Equity
|
|
$
61,171
|
|
$
61,637
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding at end of period
|
|
382
|
|
396
|
APACHE
CORPORATION
|
SUMMARY OF COSTS
INCURRED AND GTP CAPITAL INVESTMENTS
|
(Unaudited)
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter
Ended June 30,
|
|
For the Six
Months Ended June 30,
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs Incurred in Oil
and Gas Property:
|
|
|
|
|
|
|
|
|
|
|
Acquisitions
|
|
$
3
|
|
$
-
|
|
$
5
|
|
$
280
|
|
|
Exploration and
Development
|
|
2,554
|
|
2,727
|
|
5,107
|
|
5,176
|
|
|
|
|
|
2,557
|
|
2,727
|
|
5,112
|
|
5,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GTP Capital
Investments:
|
|
|
|
|
|
|
|
|
|
|
Acquisitions
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
83
|
|
|
GTP
Facilities
|
|
378
|
|
236
|
|
723
|
|
492
|
|
|
|
|
|
378
|
|
236
|
|
723
|
|
575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Costs Incurred
and GTP Capital Investments
|
|
$
2,935
|
|
$
2,963
|
|
$
5,835
|
|
$
6,031
|
APACHE
CORPORATION
|
NON-GAAP FINANCIAL
MEASURES
|
(Unaudited)
|
(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 June
30,
|
|
For the Six
Months Ended
June 30,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Income Attributable
to Common Stock (GAAP)
|
$ 505
|
|
$ 1,016
|
|
$ 741
|
|
$ 1,714
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Argentina
discontinued operations, net of tax
|
$
-
|
|
$
2
|
|
$ 517
|
|
$
63
|
|
Oil & gas
property write-downs, net of tax
|
77
|
|
-
|
|
77
|
|
-
|
|
Unrealized foreign
currency fluctuation impact on deferred tax
expense
|
13
|
|
(66)
|
|
20
|
|
(70)
|
|
Acquisition,
divestiture & separation costs, net of tax
|
9
|
|
-
|
|
20
|
|
-
|
|
Rig stacking costs,
net of tax
|
9
|
|
-
|
|
9
|
|
-
|
|
Deferred tax
adjustments
|
-
|
|
17
|
|
(5)
|
|
28
|
|
Commodity derivative
mark-to-market, net of tax
|
31
|
|
(156)
|
|
(18)
|
|
(125)
|
Adjusted
Earnings (Non-GAAP)
|
$ 644
|
|
$ 813
|
|
$ 1,361
|
|
$ 1,610
|
|
|
|
|
|
|
|
|
|
|
Net Income per Common
Share - Diluted (GAAP)
|
$ 1.31
|
|
$ 2.54
|
|
$ 1.89
|
|
$ 4.30
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Argentina
discontinued operations, net of tax
|
$
-
|
|
$
-
|
|
1.32
|
|
0.15
|
|
Oil & gas
property write-downs, net of tax
|
0.20
|
|
-
|
|
0.20
|
|
-
|
|
Unrealized foreign
currency fluctuation impact on deferred tax
expense
|
0.03
|
|
(0.16)
|
|
0.05
|
|
(0.17)
|
|
Acquisition,
divestiture & separation costs, net of tax
|
0.03
|
|
-
|
|
0.05
|
|
-
|
|
Rig stacking costs,
net of tax
|
0.02
|
|
-
|
|
0.02
|
|
-
|
|
Deferred tax
adjustments
|
-
|
|
0.04
|
|
(0.01)
|
|
0.07
|
|
Commodity derivative
mark-to-market, net of tax
|
0.08
|
|
(0.38)
|
|
(0.05)
|
|
(0.31)
|
Adjusted Earnings Per
Share - Diluted (Non-GAAP)
|
$ 1.67
|
|
$ 2.04
|
|
$ 3.47
|
|
$ 4.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income tax
provision (GAAP)
|
$ 366
|
|
$ 611
|
|
$ 944
|
|
$ 1,213
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Tax impact on oil
& gas property write-downs
|
$ 126
|
|
$
-
|
|
$ 126
|
|
$
-
|
|
Tax impact on
acquisition, divestiture & separation costs
|
5
|
|
-
|
|
10
|
|
-
|
|
Tax impact on rig
stacking costs
|
5
|
|
-
|
|
5
|
|
-
|
|
Deferred tax
adjustments
|
-
|
|
(17)
|
|
5
|
|
(28)
|
|
Tax impact on
commodity derivative mark-to-market
|
18
|
|
(86)
|
|
(9)
|
|
(69)
|
|
Foreign currency
fluctuation impact on deferred tax expense
|
(13)
|
|
66
|
|
(20)
|
|
70
|
Adjusted total income
tax provision
|
$ 507
|
|
$ 574
|
|
$ 1,061
|
|
$ 1,186
|
|
|
|
|
|
|
|
|
|
|
Adjusted Effective
Tax Rate (Non-GAAP)
|
40.3%
|
|
40.8%
|
|
40.4%
|
|
41.8%
|
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 June
30,
|
|
For the Six Months Ended June
30,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Net cash provided by
operating activities (GAAP)
|
$
2,339
|
|
$
2,759
|
|
$
4,632
|
|
$
5,380
|
|
Less: Discontinued
operations
|
-
|
|
(40)
|
|
(82)
|
|
(104)
|
Net cash provided by
operating activities excluding discontinued operations
|
$
2,339
|
|
$
2,719
|
|
$
4,550
|
|
$
5,276
|
Changes in operating
assets and liabilities
|
(111)
|
|
(164)
|
|
(100)
|
|
(426)
|
Cash from continuing
operations before changes in
|
|
|
|
|
|
|
|
|
operating assets and
liabilities
|
$
2,228
|
|
$
2,555
|
|
$
4,450
|
|
$
4,850
|
Logo -
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APA-F
SOURCE Apache Corporation