HOUSTON, Feb. 13, 2014 /PRNewswire/ -- Apache
Corporation (NYSE, Nasdaq: APA) today announced full-year 2013
earnings of $2.2 billion or
$5.50 per diluted common share and
adjusted earnings,* which exclude certain items that impact the
comparability of results, of $3.2
billion or $7.92 per share. In
2012, Apache reported earnings of $1.9
billion or $4.92 per diluted
common share and adjusted earnings of $3.8
billion or $9.48 per share.
Net cash provided by operating activities totaled approximately
$9.8 billion in 2013, compared with
$8.5 billion in the prior year, with
cash from operations before changes in operating assets and
liabilities* totaling $9.8 billion,
compared with $10.3 billion in
2012.
(Logo:
http://photos.prnewswire.com/prnh/20140116/DA47435LOGO)
Apache also reported that onshore North American liquids
production increased 34 percent in 2013 and the company replaced
140 percent of 2013 production through drilling.
"Our strong performance is driven by predictable liquids
production growth from our North American onshore assets combined
with large free cash flow generation from our international
operations," said G. Steven Farris,
chairman and chief executive officer at Apache. "We increased
onshore North America liquids
production by 45,600 barrels per day through drilling in 2013, and
we replaced 140 percent of worldwide production through the drill
bit.
"We made significant strides in focusing our portfolio during
the year, exiting production on the Gulf of Mexico Shelf,
streamlining our Canada position
and establishing our partnership with Sinopec in Egypt," Farris said. "The proceeds of these
transactions – which together total approximately $7 billion – have provided the company with
additional financial flexibility. The sale of our Argentina operations announced yesterday
continues our decisive strategic steps in 2013."
Fourth-quarter 2013 financial results
Apache reported fourth-quarter 2013 earnings of $174 million or 43
cents per share and adjusted earnings* of $631 million or $1.57 per share. For the same period in the prior
year, Apache reported earnings of $649
million or $1.64 per diluted
common share and adjusted earnings of $907
million or $2.27 per share.
Net cash provided by operating activities totaled approximately
$2.5 billion, up from $2.1 billion a year earlier, with cash from
operations before changes in operating assets and liabilities*
totaling $2.1 billion, compared with
$2.8 billion in the year-ago
period.
Fourth-quarter production and operating highlights
Highlights from fourth quarter drilling include:
- Total worldwide net daily production of oil, natural gas, and
natural gas liquids (NGLs) averaged 688,000 barrels of oil
equivalent (boe) per day. Excluding the noncontrolling interest in
Egypt operations, production
totaled 661,000 boe per day. Liquids production comprised 55
percent of the total.
- The Permian and Central regions increased liquids production
32,500 barrels per day over the prior-year period. Total production
from the two regions – 227,000 boe per day – was 33 percent of
Apache's total production.
- The Permian Region achieved record production averaging 134,000
boe per day, up 13 percent from the prior-year period. The region
averaged 43 rigs in operation during the quarter, spud 242 gross
wells (83 horizontals) and completed 289 gross wells (235
net).
- Apache's Central Region's production of 93,000 boe per day was
18 percent above the prior-year period. Liquids production was up
57 percent from the prior-year period. The region averaged 25
drilling rigs and drilled 66 gross (51 net) wells.
Year-end 2013 reserves
Worldwide estimated proved reserves totaled 2.65 billion boe at
year-end 2013. Excluding acquisitions, divestments and
revisions, proved reserves increased 4 percent. Extensions and
discoveries of 389 million boe were 140 percent of 2013
production.
The Permian Region replaced 323 percent of production through
drilling and increased proved reserves by nearly 14 percent to 910
million barrels of oil equivalent (MMboe). The Central Region
replaced 195 percent of production and increased proved reserves
nearly 14 percent to 304 MMboe.
Impact of Gulf of Mexico Shelf divestiture
On Sept. 30, 2013, Apache
completed the sale of its Gulf of Mexico Shelf operations and
properties to Fieldwood Energy LLC, a portfolio company of
Riverstone Holdings, for $3.75
billion and assumption of liabilities for future abandonment
costs of the properties with an estimated discounted value of
$1.5 billion. In addition to reducing
production volumes, the divestiture affected the company's
fourth-quarter 2013 financial results in these areas:
- U.S. oil price realizations were impacted by the sale of Shelf
production that sold at a premium to the West Texas Intermediate
benchmark. Apache's realized oil price in the United States averaged $93.36 per barrel in the fourth quarter, down
from $105.82 in the third
quarter.
- Apache's adjusted worldwide effective tax rate* increased to 44
percent as higher-rate international operations made up a larger
portion of total income before taxes absent income from Shelf
operations. In the third quarter, Apache's adjusted worldwide
effective tax rate* was 42 percent.
Oil and gas prices
Apache's mix of hydrocarbon production during the fourth quarter
2013 included approximately 46 percent crude oil and 9 percent
natural gas liquids (NGLs). Due to the premium prices received for
crude oil and NGLs, these products contributed 83 percent of the
company's revenue during the period.
Worldwide, Apache received an average price of $100.59 per barrel of crude oil during the fourth
quarter compared with $98.93 per
barrel in the prior-year period. Apache received an average price
of $3.71 per thousand cubic feet
(Mcf) of natural gas, compared with $4.14 per Mcf in the prior-year period.
About Apache
Apache Corporation is an oil and gas exploration and production
company with operations in the United
States, Canada,
Egypt, the United Kingdom, Australia and Argentina. Apache posts announcements,
operational updates, investor information and press releases on its
website, www.apachecorp.com.
* Adjusted earnings, cash from operations before changes in
operating assets and liabilities, and adjusted effective tax rate
are non-GAAP measures. Please see reconciliations below. For
supplemental financial and operational data and non-GAAP
information, please go to
http://www.apachecorp.com/financialdata.
Conference call
Apache will conduct a conference call to discuss its results and
review its portfolio at 1 p.m. Central
time on Thursday, Feb. 13. 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 on Feb. 13. To access the telephone playback, dial
855-859-2056 or 404-537-3406 for international calls. The
conference access code is 30664028.
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. The transaction with YPF is
subject to customary closing conditions and may not be completed
for the amount expected, in the anticipated time frame, or at all.
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 2012 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
|
|
(In millions, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Quarter
|
|
For the
Year
|
|
|
Ended December
31,
|
|
Ended December
31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
REVENUES AND
OTHER:
|
|
|
|
|
|
|
|
|
Oil
revenues
|
$
2,914
|
|
$
3,386
|
|
$
12,903
|
|
$
13,210
|
|
Gas
revenues
|
633
|
|
854
|
|
2,829
|
|
3,193
|
|
NGL
revenues
|
181
|
|
153
|
|
670
|
|
544
|
|
Oil and gas
production revenues
|
3,728
|
|
4,393
|
|
16,402
|
|
16,947
|
|
Derivative instrument
gains (losses), net
|
(124)
|
|
(79)
|
|
(399)
|
|
(79)
|
|
Other
|
(28)
|
|
77
|
|
51
|
|
210
|
|
|
3,576
|
|
4,391
|
|
16,054
|
|
17,078
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
|
|
|
|
|
|
Oil and gas property
and equipment
|
|
|
|
|
|
|
|
|
Recurring
|
1,208
|
|
1,277
|
|
5,114
|
|
4,812
|
|
Additional
|
368
|
|
28
|
|
1,176
|
|
1,926
|
|
Other
assets
|
113
|
|
103
|
|
410
|
|
371
|
|
Asset retirement
obligation accretion
|
47
|
|
60
|
|
243
|
|
232
|
|
Lease operating
expenses
|
637
|
|
790
|
|
3,056
|
|
2,968
|
|
Gathering and
transportation
|
60
|
|
68
|
|
297
|
|
303
|
|
Taxes other than
income
|
222
|
|
235
|
|
832
|
|
862
|
|
General and
administrative
|
127
|
|
147
|
|
503
|
|
531
|
|
Merger, acquisitions
& transition
|
33
|
|
2
|
|
33
|
|
31
|
|
Financing costs,
net
|
19
|
|
40
|
|
174
|
|
165
|
|
|
2,834
|
|
2,750
|
|
11,838
|
|
12,201
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE
INCOME TAXES
|
742
|
|
1,641
|
|
4,216
|
|
4,877
|
|
Current income tax
provision
|
474
|
|
470
|
|
1,665
|
|
2,199
|
|
Deferred income tax
provision
|
38
|
|
503
|
|
263
|
|
677
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
INCLUDING NONCONROLLING INTEREST
|
230
|
|
668
|
|
2,288
|
|
2,001
|
|
Preferred stock
dividends
|
-
|
|
19
|
|
44
|
|
76
|
|
Net income
attributable to noncontrolling interest
|
56
|
|
-
|
|
56
|
|
-
|
|
|
|
|
|
|
|
|
|
|
INCOME
ATTRIBUTABLE TO COMMON STOCK
|
$
174
|
|
$
649
|
|
$
2,188
|
|
$
1,925
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER
COMMON SHARE:
|
|
|
|
|
|
|
|
|
Basic
|
$
0.44
|
|
$
1.66
|
|
$
5.53
|
|
$
4.95
|
|
Diluted
|
$
0.43
|
|
$
1.64
|
|
$
5.50
|
|
$
4.92
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE
NUMBER OF COMMON
|
|
|
|
|
|
|
|
|
SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
399
|
|
391
|
|
395
|
|
389
|
|
Diluted
|
401
|
|
407
|
|
406
|
|
391
|
|
|
|
|
|
|
|
|
|
|
DIVIDENDS DECLARED
PER COMMON SHARE
|
$
0.20
|
|
$
0.17
|
|
$
0.80
|
|
$
0.68
|
|
APACHE
CORPORATION
|
|
SUMMARY OF CAPITAL
COSTS INCURRED
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Quarter
|
|
For the
Year
|
|
|
|
|
|
Ended December
31,
|
|
Ended December
31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
CAPITAL
EXPENDITURES:
|
|
|
|
|
|
|
|
|
|
Exploration &
Development Costs
|
|
|
|
|
|
|
|
|
|
|
United
States
|
|
$
1,302
|
|
$
1,543
|
|
$
5,473
|
|
$
5,151
|
|
|
Canada
|
|
218
|
|
131
|
|
720
|
|
590
|
|
|
|
North
America
|
|
1,520
|
|
1,674
|
|
6,193
|
|
5,741
|
|
|
Egypt
(1)
|
|
353
|
|
265
|
|
1,166
|
|
1,074
|
|
|
Australia
|
|
268
|
|
355
|
|
1,179
|
|
873
|
|
|
North Sea
|
|
227
|
|
183
|
|
874
|
|
886
|
|
|
Argentina
|
|
37
|
|
67
|
|
182
|
|
289
|
|
|
New Ventures -
International
|
|
(6)
|
|
14
|
|
22
|
|
98
|
|
|
|
International
(1)
|
|
879
|
|
884
|
|
3,423
|
|
3,220
|
|
|
|
Worldwide Exploration
& Development Costs (1)
|
$
2,399
|
|
$
2,558
|
|
$
9,616
|
|
$
8,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gathering,
Transmission and Processing Facilities
|
|
|
|
|
|
|
|
|
|
|
United
States
|
|
$
49
|
|
$
18
|
|
$
169
|
|
$
75
|
|
|
Canada
|
|
24
|
|
34
|
|
135
|
|
172
|
|
|
Egypt
(1)
|
|
25
|
|
18
|
|
82
|
|
33
|
|
|
Australia
|
|
211
|
|
103
|
|
745
|
|
441
|
|
|
Argentina
|
|
4
|
|
4
|
|
11
|
|
16
|
|
|
North Sea
|
|
1
|
|
1
|
|
1
|
|
1
|
|
|
|
Total Gathering,
Transmission and Processing (1)
|
$
314
|
|
$
178
|
|
$
1,143
|
|
$
738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Retirement
Costs
|
|
$
90
|
|
$
392
|
|
$
484
|
|
$
948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized
Interest
|
|
$
98
|
|
$
93
|
|
$
374
|
|
$
334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures,
excluding Acquisitions (1)
|
|
$
2,901
|
|
$
3,221
|
|
$ 11,617
|
|
$ 10,981
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Retirement
Costs - Acquired
|
|
$
-
|
|
$
51
|
|
$
53
|
|
$
84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions
|
|
$
59
|
|
$
122
|
|
$
377
|
|
$
3,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Includes capital costs attributable to noncontrolling
interest in Egypt
|
|
|
|
|
APACHE
CORPORATION
|
|
SUMMARY BALANCE
SHEET INFORMATION
|
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
Cash and Cash
Equivalents
|
|
$
1,906
|
|
$
160
|
|
Other Current
Assets
|
|
4,460
|
|
4,802
|
|
Property and
Equipment, net
|
|
52,421
|
|
53,280
|
|
Goodwill
|
|
1,369
|
|
1,289
|
|
Other
Assets
|
|
1,481
|
|
1,206
|
|
Total
Assets
|
|
$
61,637
|
|
$
60,737
|
|
|
|
|
|
|
|
|
Short-Term
Debt
|
|
$
53
|
|
$
990
|
|
Other Current
Liabilities
|
|
4,647
|
|
4,546
|
|
Long-Term
Debt
|
|
9,672
|
|
11,355
|
|
Deferred Credits and
Other Noncurrent Liabilities
|
|
11,872
|
|
12,515
|
|
Apache Shareholders'
Equity
|
|
33,396
|
|
31,331
|
|
Noncontrolling
interest
|
|
1,997
|
|
-
|
|
Total Liabilities and
Shareholders' Equity
|
|
$
61,637
|
|
$
60,737
|
|
|
|
|
|
|
|
|
Common shares
outstanding at end of period
|
|
396
|
|
392
|
|
APACHE
CORPORATION
|
|
PRODUCTION
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Quarter
|
|
For the
Year
|
|
|
|
|
|
Ended December
31,
|
|
Ended December
31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OIL VOLUME
- Barrels per day
|
|
|
|
|
|
|
|
|
|
Central
|
|
22,939
|
|
21,026
|
|
22,783
|
|
14,151
|
|
Permian
|
|
77,703
|
|
65,104
|
|
72,113
|
|
60,215
|
|
GOM
Deepwater
|
|
6,530
|
|
8,355
|
|
7,386
|
|
6,848
|
|
GOM Shelf
|
|
(27)
|
|
44,752
|
|
34,099
|
|
42,873
|
|
GC Onshore
|
|
10,397
|
|
10,489
|
|
10,526
|
|
10,036
|
|
|
United
States
|
|
117,542
|
|
149,726
|
|
146,907
|
|
134,123
|
|
Canada
|
|
16,570
|
|
17,377
|
|
17,724
|
|
15,830
|
|
|
North
America
|
|
134,112
|
|
167,103
|
|
164,631
|
|
149,953
|
|
Egypt
(1)
|
|
89,654
|
|
103,056
|
|
89,561
|
|
99,756
|
|
Australia
|
|
16,760
|
|
26,483
|
|
19,329
|
|
28,884
|
|
North Sea
|
|
64,996
|
|
65,583
|
|
63,721
|
|
63,692
|
|
Argentina
|
|
9,276
|
|
9,859
|
|
9,375
|
|
9,741
|
|
|
International
(1)
|
|
180,686
|
|
204,981
|
|
181,986
|
|
202,073
|
|
|
|
Total
(1)
|
|
314,798
|
|
372,084
|
|
346,617
|
|
352,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATURAL GAS
VOLUME - Mcf per day
|
|
|
|
|
|
|
|
|
|
Central
|
|
264,786
|
|
287,956
|
|
272,814
|
|
242,998
|
|
Permian
|
|
191,371
|
|
184,781
|
|
189,450
|
|
180,938
|
|
GOM
Deepwater
|
|
11,378
|
|
48,177
|
|
19,743
|
|
46,048
|
|
GOM Shelf
|
|
11,167
|
|
265,918
|
|
192,314
|
|
291,356
|
|
GC Onshore
|
|
104,300
|
|
103,722
|
|
107,014
|
|
92,759
|
|
|
United
States
|
|
583,002
|
|
890,554
|
|
781,335
|
|
854,099
|
|
Canada
|
|
421,409
|
|
550,495
|
|
497,515
|
|
600,680
|
|
|
North
America
|
|
1,004,411
|
|
1,441,049
|
|
1,278,850
|
|
1,454,779
|
|
Egypt
(1)
|
|
352,616
|
|
350,406
|
|
356,454
|
|
353,738
|
|
Australia
|
|
254,853
|
|
204,961
|
|
223,433
|
|
214,013
|
|
North Sea
|
|
53,491
|
|
43,745
|
|
50,961
|
|
57,457
|
|
Argentina
|
|
190,799
|
|
204,724
|
|
187,390
|
|
213,464
|
|
|
International
(1)
|
|
851,759
|
|
803,836
|
|
818,238
|
|
838,672
|
|
|
|
Total
(1)
|
|
1,856,170
|
|
2,244,885
|
|
2,097,088
|
|
2,293,451
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NGL VOLUME
- Barrels per day
|
|
|
|
|
|
|
|
|
|
Central
|
|
26,083
|
|
10,231
|
|
23,034
|
|
6,518
|
|
Permian
|
|
24,115
|
|
21,997
|
|
23,379
|
|
17,966
|
|
GOM
Deepwater
|
|
740
|
|
1,519
|
|
838
|
|
1,185
|
|
GOM Shelf
|
|
824
|
|
6,908
|
|
4,911
|
|
5,738
|
|
GC Onshore
|
|
2,640
|
|
2,229
|
|
2,418
|
|
2,120
|
|
|
United
States
|
|
54,402
|
|
42,884
|
|
54,580
|
|
33,527
|
|
Canada
|
|
6,395
|
|
6,837
|
|
6,689
|
|
6,258
|
|
|
North
America
|
|
60,797
|
|
49,721
|
|
61,269
|
|
39,785
|
|
North Sea
|
|
1,301
|
|
1,085
|
|
1,272
|
|
1,618
|
|
Argentina
|
|
1,653
|
|
2,967
|
|
2,102
|
|
3,008
|
|
|
International
|
|
2,954
|
|
4,052
|
|
3,374
|
|
4,626
|
|
|
|
Total
|
|
63,751
|
|
53,773
|
|
64,643
|
|
44,411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOE per
day
|
|
|
|
|
|
|
|
|
|
Central
|
|
93,153
|
|
79,250
|
|
91,286
|
|
61,169
|
|
Permian
|
|
133,713
|
|
117,898
|
|
127,066
|
|
108,338
|
|
GOM
Deepwater
|
|
9,167
|
|
17,903
|
|
11,515
|
|
15,708
|
|
GOM Shelf
|
|
2,658
|
|
95,980
|
|
71,062
|
|
97,170
|
|
GC Onshore
|
|
30,421
|
|
30,005
|
|
30,780
|
|
27,615
|
|
|
United
States
|
|
269,112
|
|
341,036
|
|
331,709
|
|
310,000
|
|
Canada
|
|
93,199
|
|
115,963
|
|
107,332
|
|
122,201
|
|
|
North
America
|
|
362,311
|
|
456,999
|
|
439,041
|
|
432,201
|
|
Egypt
(1)
|
|
148,423
|
|
161,458
|
|
148,970
|
|
158,713
|
|
Australia
|
|
59,236
|
|
60,643
|
|
56,568
|
|
64,552
|
|
North Sea
|
|
75,212
|
|
73,959
|
|
73,487
|
|
74,887
|
|
Argentina
|
|
42,729
|
|
46,946
|
|
42,709
|
|
48,326
|
|
|
International
(1)
|
|
325,600
|
|
343,006
|
|
321,734
|
|
346,478
|
|
|
|
Total
(1)
|
|
687,911
|
|
800,005
|
|
760,775
|
|
778,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total excluding
noncontrolling interests
|
|
661,484
|
|
800,005
|
|
754,114
|
|
778,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Includes production volume per day
attributable to noncontrolling interest in Egypt
|
|
|
|
Oil (b/d)
|
|
15,521
|
|
-
|
|
3,912
|
|
-
|
|
|
Gas
(Mcf/d)
|
|
65,437
|
|
-
|
|
16,494
|
|
-
|
|
APACHE
CORPORATION
|
|
PRICE
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Quarter
|
|
For the
Year
|
|
|
|
|
|
Ended December
31,
|
|
Ended December
31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE OIL
PRICE PER BARREL
|
|
|
|
|
|
|
|
|
|
Central
|
|
$
92.67
|
|
$
82.55
|
|
$
93.45
|
|
$
86.48
|
|
Permian
|
|
93.44
|
|
81.40
|
|
93.50
|
|
88.18
|
|
GOM
Deepwater
|
|
95.04
|
|
103.06
|
|
105.04
|
|
105.17
|
|
GOM Shelf
|
|
NM
|
|
105.27
|
|
109.57
|
|
108.52
|
|
GC Onshore
|
|
97.06
|
|
105.21
|
|
106.09
|
|
107.83
|
|
|
United States
(1)
|
|
93.36
|
|
91.01
|
|
98.14
|
|
94.98
|
|
Canada
|
|
79.44
|
|
82.08
|
|
87.00
|
|
84.89
|
|
|
North America
(1)
|
|
91.64
|
|
90.08
|
|
96.94
|
|
93.91
|
|
Egypt
|
|
|
108.56
|
|
107.80
|
|
107.94
|
|
110.92
|
|
Australia(1)
|
|
114.06
|
|
111.34
|
|
110.42
|
|
115.22
|
|
North
Sea(1)
|
|
107.08
|
|
106.17
|
|
107.48
|
|
107.97
|
|
Argentina
|
|
83.22
|
|
74.53
|
|
79.05
|
|
75.89
|
|
|
International
(1)
|
|
107.24
|
|
106.14
|
|
106.55
|
|
108.92
|
|
|
|
Total(1)
|
|
100.59
|
|
98.93
|
|
101.99
|
|
102.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE
NATURAL GAS PRICE PER MCF
|
|
|
|
|
|
|
|
Central
|
|
$
3.62
|
|
$
3.79
|
|
$
3.72
|
|
$
3.26
|
|
Permian
|
|
3.80
|
|
3.75
|
|
3.77
|
|
3.34
|
|
GOM
Deepwater
|
|
3.61
|
|
3.48
|
|
3.34
|
|
2.99
|
|
GOM Shelf
|
|
NM
|
|
3.51
|
|
3.82
|
|
3.01
|
|
GC Onshore
|
|
3.69
|
|
3.47
|
|
3.80
|
|
2.92
|
|
|
United States
(1)
|
|
3.77
|
|
4.05
|
|
3.84
|
|
3.74
|
|
Canada
(1)
|
|
3.34
|
|
4.03
|
|
3.23
|
|
3.42
|
|
|
North America
(1)
|
|
3.59
|
|
4.04
|
|
3.61
|
|
3.61
|
|
Egypt
|
|
|
3.00
|
|
4.02
|
|
2.99
|
|
3.90
|
|
Australia
|
|
4.15
|
|
4.88
|
|
4.43
|
|
4.55
|
|
North Sea
|
|
10.58
|
|
10.11
|
|
10.43
|
|
8.95
|
|
Argentina
|
|
3.11
|
|
2.98
|
|
2.96
|
|
2.87
|
|
|
International
|
|
3.85
|
|
4.30
|
|
3.84
|
|
4.15
|
|
|
|
Total
(1)
|
|
3.71
|
|
4.14
|
|
3.70
|
|
3.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE NGL
PRICE PER BARREL
|
|
|
|
|
|
|
|
|
|
Central
|
|
$
28.34
|
|
$
27.06
|
|
$
25.61
|
|
$
27.48
|
|
Permian
|
|
29.90
|
|
29.95
|
|
27.94
|
|
32.97
|
|
GOM
Deepwater
|
|
35.80
|
|
32.34
|
|
33.23
|
|
33.06
|
|
GOM Shelf
|
|
NM
|
|
28.17
|
|
28.52
|
|
32.04
|
|
GC Onshore
|
|
36.75
|
|
36.60
|
|
32.44
|
|
40.04
|
|
|
United
States
|
|
29.50
|
|
29.40
|
|
27.29
|
|
32.19
|
|
Canada
|
|
36.82
|
|
33.59
|
|
30.50
|
|
34.63
|
|
|
North
America
|
|
30.27
|
|
29.98
|
|
27.64
|
|
32.57
|
|
Egypt
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
North Sea
|
|
80.43
|
|
94.42
|
|
73.06
|
|
77.11
|
|
Argentina
|
|
17.68
|
|
22.76
|
|
23.64
|
|
21.55
|
|
|
International
|
|
45.31
|
|
41.96
|
|
42.27
|
|
40.98
|
|
|
|
Total
|
|
30.96
|
|
30.88
|
|
28.40
|
|
33.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Prices reflect the impact of financial derivative hedging
activities.
|
|
APACHE
CORPORATION
|
|
NON-GAAP FINANCIAL
MEASURES
|
|
(In millions, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
income attributable to common stock to adjusted
earnings:
|
|
The press release
discusses Apache's adjusted earnings. Adjusted earnings
exclude certain items that management believes affect the
comparability of operating results and are meaningful for the
following reasons:
|
|
|
|
|
|
|
|
|
|
|
•
|
Management uses
adjusted earnings to evaluate the company's operational trends and
performance relative to other oil and gas producing
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.
|
|
|
|
|
|
|
|
|
|
|
•
|
The reconciling items
below are the types of items management believes are frequently
excluded by analysts when evaluating the operating trends and
comparability of the company's results.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Quarter
|
|
For the
Year
|
|
|
Ended December
31,
|
|
Ended December
31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
Income Attributable
to Common Stock (GAAP)
|
$
174
|
|
$
649
|
|
$ 2,188
|
|
$
1,925
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Oil & gas
property write-downs, net of tax
|
139
|
|
18
|
|
659
|
|
1,427
|
|
Deferred tax on
distributed foreign earnings
|
225
|
|
-
|
|
225
|
|
-
|
|
Commodity derivative
mark-to-market, net of tax
|
54
|
|
51
|
|
142
|
|
51
|
|
Deferred tax
adjustments
|
43
|
|
226
|
|
58
|
|
226
|
|
Acquisitions,
divestitures & transition, net of tax
|
21
|
|
2
|
|
21
|
|
19
|
|
North Sea
decommissioning tax rate adjustment
|
-
|
|
-
|
|
-
|
|
118
|
|
Unrealized foreign
currency fluctuation impact on deferred tax
expense
|
(25)
|
|
(39)
|
|
(123)
|
|
1
|
|
Adjusted
Earnings (Non-GAAP)
|
$
631
|
|
$
907
|
|
$ 3,170
|
|
$
3,767
|
|
|
|
|
|
|
|
|
|
|
Net Income per Common
Share - Diluted (GAAP)
|
$
0.43
|
|
$
1.64
|
|
$
5.50
|
|
$
4.92
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Oil & gas
property write-downs, net of tax
|
0.35
|
|
0.04
|
|
1.63
|
|
3.53
|
|
Deferred tax on
distributed foreign earnings
|
0.56
|
|
-
|
|
0.55
|
|
-
|
|
Commodity derivative
mark-to-market, net of tax
|
0.13
|
|
0.56
|
|
0.35
|
|
0.56
|
|
Deferred tax
adjustments
|
0.11
|
|
-
|
|
0.14
|
|
0.30
|
|
Acquisitions,
divestitures & transition, net of tax
|
0.05
|
|
0.13
|
|
0.05
|
|
0.13
|
|
North Sea
decommissioning tax rate adjustment
|
-
|
|
-
|
|
-
|
|
0.04
|
|
Unrealized foreign
currency fluctuation impact on deferred tax
expense
|
(0.06)
|
|
(0.10)
|
|
(0.30)
|
|
-
|
|
Adjusted Earnings Per
Share - Diluted (Non-GAAP)
|
$
1.57
|
|
$
2.27
|
|
$
7.92
|
|
$
9.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income tax
provision (GAAP)
|
$
512
|
|
$
973
|
|
$
1,928
|
|
$
2,876
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Tax effect of oil
& gas property write-downs
|
229
|
|
10
|
|
517
|
|
485
|
|
Foreign currency
fluctuation impact on deferred tax expense
|
25
|
|
39
|
|
123
|
|
(1)
|
|
Tax impact on
commodity derivative mark-to-market
|
30
|
|
28
|
|
79
|
|
28
|
|
Tax impact on
acquisition, divestitures & transition costs
|
12
|
|
-
|
|
12
|
|
12
|
|
North Sea
decommissioning tax rate adjustment
|
-
|
|
-
|
|
-
|
|
(118)
|
|
Deferred tax
adjustments
|
(43)
|
|
(226)
|
|
(58)
|
|
(226)
|
|
Deferred tax on
distributed foreign earnings
|
(225)
|
|
-
|
|
(225)
|
|
-
|
|
Adjusted total income
tax provision
|
$
540
|
|
$
824
|
|
$
2,376
|
|
$
3,056
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Effective
Tax Rate (Non-GAAP)
|
44.0%
|
|
47.2%
|
|
42.1%
|
|
44.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
net cash provided by operating activities to cash from operations
before changes in operating assets and liabilities:
|
|
The press release
discusses Apache's cash from operations before changes in operating
assets and liabilities. It is presented because management believes
the information is useful for investors because it is used
internally 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
|
|
For the
Year
|
|
|
Ended December
31,
|
|
Ended December
31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Net cash provided by
operating activities
|
$ 2,477
|
|
$ 2,082
|
|
$ 9,835
|
|
$
8,504
|
|
Changes in operating
assets and liabilities
|
(400)
|
|
721
|
|
(81)
|
|
1,741
|
|
Cash from operations
before changes in
|
|
|
|
|
|
|
|
|
operating assets and
liabilities
|
$ 2,077
|
|
$ 2,803
|
|
$ 9,754
|
|
$ 10,245
|
|
APACHE
CORPORATION
|
|
OIL & GAS
RESERVES INFORMATION
|
|
For the Year Ended
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OIL
(Mbbl)
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
Canada
|
Egypt1
|
Australia
|
North
Sea
|
Argentina
|
Total1
|
|
Balance - Dec 31,
2012
|
677,905
|
150,345
|
124,034
|
63,861
|
147,654
|
18,826
|
1,182,625
|
|
Extensions and
Discoveries
|
133,227
|
10,177
|
43,738
|
2,539
|
1,543
|
998
|
192,222
|
|
Purchases
|
|
85
|
-
|
5
|
-
|
3,623
|
-
|
3,713
|
|
Revisions
|
|
1,683
|
(531)
|
457
|
(118)
|
18
|
24
|
1,533
|
|
Production
|
|
(53,621)
|
(6,469)
|
(32,690)
|
(7,055)
|
(23,258)
|
(3,422)
|
(126,515)
|
|
Sales
|
|
(105,463)
|
(16,630)
|
-
|
-
|
-
|
-
|
(122,093)
|
|
Balance - Dec 31,
2013
|
653,816
|
136,892
|
135,544
|
59,227
|
129,580
|
16,426
|
1,131,485
|
|
|
|
|
|
|
|
|
|
|
|
NGL's
(Mbbl)
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
Canada
|
Egypt1
|
Australia
|
North
Sea
|
Argentina
|
Total1
|
|
Balance - Dec 31,
2012
|
215,397
|
34,254
|
-
|
-
|
2,818
|
5,883
|
258,352
|
|
Extensions and
Discoveries
|
69,231
|
4,014
|
-
|
-
|
-
|
-
|
73,245
|
|
Purchases
|
|
45
|
-
|
-
|
-
|
295
|
-
|
340
|
|
Revisions
|
|
1,591
|
546
|
-
|
-
|
1
|
3
|
2,141
|
|
Production
|
|
(19,922)
|
(2,442)
|
-
|
-
|
(464)
|
(767)
|
(23,595)
|
|
Sales
|
|
(18,319)
|
(303)
|
-
|
-
|
-
|
-
|
(18,622)
|
|
Balance - Dec 31,
2013
|
248,023
|
36,069
|
-
|
-
|
2,650
|
5,119
|
291,861
|
|
|
|
|
|
|
|
|
|
|
|
Oil &
NGL's
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
Canada
|
Egypt1
|
Australia
|
North
Sea
|
Argentina
|
Total1
|
|
Balance - Dec 31,
2012
|
893,302
|
184,599
|
124,034
|
63,861
|
150,472
|
24,709
|
1,440,977
|
|
Extensions and
Discoveries
|
202,458
|
14,191
|
43,738
|
2,539
|
1,543
|
998
|
265,467
|
|
Purchases
|
|
130
|
-
|
5
|
-
|
3,918
|
-
|
4,053
|
|
Revisions
|
|
3,274
|
15
|
457
|
(118)
|
19
|
27
|
3,674
|
|
Production
|
|
(73,543)
|
(8,911)
|
(32,690)
|
(7,055)
|
(23,722)
|
(4,189)
|
(150,110)
|
|
Sales
|
|
(123,782)
|
(16,933)
|
-
|
-
|
-
|
-
|
(140,715)
|
|
Balance - Dec 31,
2013
|
901,839
|
172,961
|
135,544
|
59,227
|
132,230
|
21,545
|
1,423,346
|
|
|
|
|
|
|
|
|
|
|
|
GAS
(MMcf)
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
Canada
|
Egypt1
|
Australia
|
North
Sea
|
Argentina
|
Total1
|
|
Balance - Dec 31,
2012
|
3,185,907
|
2,137,884
|
895,491
|
1,670,070
|
112,304
|
462,550
|
8,464,206
|
|
Extensions and
Discoveries
|
306,721
|
359,493
|
44,382
|
13,351
|
2,750
|
16,515
|
743,212
|
|
Purchases
|
|
855
|
-
|
-
|
-
|
10,680
|
-
|
11,535
|
|
Revisions
|
|
61,247
|
109,551
|
2,413
|
(101)
|
32
|
49
|
173,191
|
|
Production
|
|
(285,187)
|
(181,593)
|
(130,106)
|
(81,553)
|
(18,601)
|
(68,397)
|
(765,437)
|
|
Sales
|
|
(596,417)
|
(691,878)
|
-
|
-
|
-
|
-
|
(1,288,295)
|
|
Balance - Dec 31,
2013
|
2,673,126
|
1,733,457
|
812,180
|
1,601,767
|
107,165
|
410,717
|
7,338,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL BOE
(Mboe)
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
Canada
|
Egypt1
|
Australia
|
North
Sea
|
Argentina
|
Total1
|
|
Balance - Dec 31,
2012
|
1,424,287
|
540,913
|
273,283
|
342,206
|
169,189
|
101,801
|
2,851,679
|
|
Extensions and
Discoveries
|
253,578
|
74,107
|
51,135
|
4,764
|
2,001
|
3,751
|
389,336
|
|
Purchases
|
|
273
|
-
|
5
|
-
|
5,698
|
-
|
5,976
|
|
Revisions
|
|
13,482
|
18,274
|
859
|
(135)
|
24
|
35
|
32,539
|
|
Production
|
|
(121,074)
|
(39,177)
|
(54,374)
|
(20,647)
|
(26,822)
|
(15,589)
|
(277,683)
|
|
Sales
|
|
(223,185)
|
(132,246)
|
-
|
-
|
-
|
-
|
(355,431)
|
|
Balance - Dec 31,
2013
|
1,347,361
|
461,871
|
270,908
|
326,188
|
150,090
|
89,998
|
2,646,416
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proved developed
reserves:
|
|
|
|
|
|
|
|
|
Oil + NGL's
(Mbbls)
|
642,467
|
106,625
|
119,242
|
22,524
|
102,761
|
18,305
|
1,011,924
|
|
Gas (Mboe)
|
|
334,328
|
215,737
|
103,638
|
104,424
|
14,696
|
48,189
|
821,012
|
|
Balance - Dec 31,
2013 (Mboe)
|
976,795
|
322,362
|
222,880
|
126,948
|
117,457
|
66,494
|
1,832,936
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes reserves attributable to noncontrolling interest in
Egypt.
|
|
APACHE
CORPORATION
|
|
|
OIL & GAS
RESERVES AND COSTS
|
|
|
For the Year Ended
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve Additions
(Mboe)
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
Canada
|
Egypt
(1)
|
Australia
|
North Sea
|
Argentina
|
Other
|
Total
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Extensions and
Discoveries
|
253,578
|
74,107
|
51,135
|
4,764
|
2,001
|
3,751
|
-
|
389,336
|
|
|
Purchases
|
273
|
-
|
5
|
-
|
5,698
|
-
|
-
|
5,976
|
|
|
Additions excluding
revisions
|
253,851
|
74,107
|
51,140
|
4,764
|
7,699
|
3,751
|
-
|
395,312
|
|
|
Revisions
|
13,482
|
18,274
|
859
|
(135)
|
24
|
35
|
-
|
32,539
|
|
|
Total
|
267,333
|
92,381
|
51,999
|
4,629
|
7,723
|
3,786
|
-
|
427,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Cost
Information (Non-GAAP) (in millions)
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
Canada
|
Egypt
(1)
|
Australia
|
North Sea
|
Argentina
|
Other
|
Total
(1)
|
|
|
Exploration &
Development, excluding Capitalized Interest and Asset Retirement
Cost (ARC)
|
|
|
|
|
|
|
|
|
|
|
$ 5,473
|
$ 720
|
$ 1,166
|
$ 1,179
|
$ 874
|
$ 182
|
$ 22
|
$ 9,616
|
|
|
Acquisitions,
excluding ARC - Acquired
|
|
|
|
|
|
|
|
|
|
|
Proved
|
17
|
-
|
35
|
-
|
72
|
-
|
-
|
124
|
|
|
Unproved
|
-
|
137
|
11
|
-
|
17
|
-
|
-
|
165
|
|
|
Total
|
$ 5,490
|
$ 857
|
$ 1,212
|
$ 1,179
|
$ 963
|
$ 182
|
$ 22
|
$ 9,905
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Exploration and Development Costs to Exploration and Development
Costs, excluding Capitalized Interest and Asset Retirement Cost, a
Non-GAAP Financial Measure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Presented below is a
reconciliation of exploration and development costs (GAAP) to
exploration and development costs, excluding capitalized interest
and asset retirement cost (Non-GAAP). Management believes
exploration and development costs, excluding capitalized interest
and asset retirement cost is a more accurate reflection of the
expenditures during the current year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
Canada
|
Egypt
(1)
|
Australia
|
North Sea
|
Argentina
|
Other
|
Total
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration &
Development Costs (in millions)
|
$ 6,192
|
$ 772
|
$ 1,181
|
$ 1,165
|
$ 913
|
$ 195
|
$ 22
|
$ 10,440
|
|
|
Less: Capitalized
Interest
|
(239)
|
(35)
|
(15)
|
(16)
|
(25)
|
(10)
|
-
|
(340)
|
|
|
Less: ARC
|
(480)
|
(17)
|
-
|
30
|
(14)
|
(3)
|
-
|
(484)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Adds
|
$ 5,473
|
$ 720
|
$ 1,166
|
$ 1,179
|
$ 874
|
$ 182
|
$ 22
|
$ 9,616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Total Acquisition Costs to Acquisitions, excluding Asset Retirement
Cost - Acquired, a Non-GAAP Financial Measure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Presented below is a
reconciliation of total acquisition costs (GAAP) to acquisitions,
excluding asset retirement cost - acquired (Non-GAAP). Management
believes acquisitions, excluding asset retirement cost - acquired
is a more accurate reflection of the costs of acquisitions during
the current year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
Canada
|
Egypt
(1)
|
Australia
|
North Sea
|
Argentina
|
Other
|
Total
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Acquisition
Costs (in millions)
|
|
|
|
|
|
|
|
|
|
|
Proved
|
$ 17
|
$ -
|
$ 35
|
$ -
|
$ 125
|
$ -
|
$ -
|
$ 177
|
|
|
Unproved
|
-
|
137
|
11
|
-
|
17
|
|
-
|
165
|
|
|
Less: ARC -
Acquired
|
-
|
-
|
-
|
-
|
(53)
|
-
|
-
|
(53)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions,
excluding ARC - Acquired
|
$ 17
|
$ 137
|
$ 46
|
$ -
|
$ 89
|
$ -
|
$ -
|
$ 289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes reserves and costs attributable to noncontrolling interest
in Egypt.
|
APA-F
SOURCE Apache Corporation