Apco Oil and Gas International Inc. (NASDAQ:APAGF) today
announced that for the three-month period ended March 31, 2013, it
generated unaudited net income attributable to Apco of $9.9
million, or $0.34 per share, compared with net income of $10.1
million, or $0.34 per share for the same period in 2012.
Net income decreased quarter-to-quarter as the benefits of
higher operating revenues were offset by the combination of greater
costs and operating expenses, lower equity income from Argentine
investment, and higher income tax expense.
For the first quarter of 2013, total operating revenues
increased by $5.2 million compared with the same period in 2012.
Sales revenues from Apco’s Colombian operations contributed to the
increase in operating revenues in first-quarter 2013. Benefits
realized from the Oil Plus hydrocarbon subsidy program in Argentina
also had a favorable impact on revenues during first-quarter
2013.
During the first quarter of 2013, the combination of higher
production and lifting costs due in part to inflation in Argentina,
greater depreciation expense, and higher foreign exchange losses
was partially offset by lower exploration expense. For the quarter,
total costs and operating expenses increased by $2.2 million
compared with the same period in 2012.
Apco also experienced lower equity income from its 40.72 percent
interest in Petrolera Entre Lomas S.A. (Petrolera). During
first-quarter 2013, the impact of lower operating revenues and
higher operating costs contributed to a decrease of $2.9 million in
equity income from Argentine investment compared with first-quarter
2012.
Income tax expense increased by $234,000 due to higher taxable
income in Argentina during the first quarter of 2013 compared with
the same period in 2012.
2013 Capital Program and Operational Update
During first-quarter 2013, capital expenditures of $13.3 million
attributable to Apco’s consolidated interests were invested
primarily in development and exploration drilling in Neuquén basin
properties and exploration drilling in Colombia.
In addition to the previously announced exploration wells
drilled in Colombia, Apco participated in the drilling of four
development wells and two exploration wells in the Neuquén
basin.
“We are pleased to announce another discovery well drilled in
the southern part of our Agua Amarga exploration permit in
Argentina,” said Thomas Bueno, Apco’s president.
“We expect to have the results of our other exploration well
drilled in the western part of the Bajada del Palo concession in
the second quarter. Our development drilling campaign has now hit
full stride, and additional exploration activities – including
investments targeting Vaca Muerta in our Coirón Amargo block - are
scheduled to commence in the next few months,” Bueno added.
Apco Oil and Gas International Inc. Summary of
Earnings (In Thousands of Dollars Except Per Share Amounts)
2013 2012 Three months ended Mar 31
Operating revenue
35,279 30,076 Costs and
operating expenses 27,271 25,026
Investment income 5,465 8,338
Net income attributable to Apco 9,933
10,076 Per share 0.34
0.34
About Apco Oil and Gas International Inc. (NASDAQ:
APAGF)
Apco Oil and Gas International Inc. is an international oil and
gas exploration and production company with interests in nine oil
and gas concessions and two exploration permits in Argentina, and
three exploration and production contracts in Colombia. More
information is available at www.apcooilandgas.com. Go to
http://www.b2i.us/irpass.asp?BzID=1671&to=ea&s=0 to join
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Our reports, filings, and other public announcements may contain
or incorporate by reference statements that do not directly or
exclusively relate to historical facts. Such statements are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. We make these
forward-looking statements in reliance on the safe harbor
protections provided under the Private Securities Litigation Reform
Act of 1995. You typically can identify forward-looking statements
by various forms of words such as "anticipates," "believes,"
"seeks," "could," "may," "should," "continues," "estimates,"
"expects," "forecasts," "intends," "might," "goals," "objectives,"
"targets," "planned," "potential," "projects," "scheduled," "will"
or other similar expressions. These forward-looking statements are
based on management's beliefs and assumptions and on information
currently available to management and include, among others,
statements regarding:
- Amounts and nature of future capital
expenditures;
- Volumes of future oil, natural gas, and
LPG production;
- Expansion and growth of our business
and operations;
- Financial condition and liquidity;
- Business strategy;
- Estimates of proved gas and oil
reserves;
- Reserve potential;
- Development drilling potential;
- Cash flow from operations or results of
operations;
- Seasonality of natural gas demand;
and
- Oil and natural gas prices and
demand.
Forward-looking statements are based on numerous assumptions,
uncertainties and risks that could cause future events or results
to be materially different from those stated or implied in this
announcement. Many of the factors that will determine these results
are beyond our ability to control or predict. Specific factors that
could cause actual results to differ from results contemplated by
the forward-looking statements include, among others, the
following:
- Availability of supplies (including the
uncertainties inherent in assessing, estimating, acquiring and
developing future oil and natural gas reserves), market demand,
volatility of prices, and the availability and cost of
capital;
- Inflation, interest rates, fluctuation
in foreign currency exchange rates, and general economic conditions
(including future disruptions and volatility in the global credit
markets and the impact of these events on our customers and
suppliers);
- The strength and financial resources of
our competitors;
- Development of alternative energy
sources;
- The impact of operational and
development hazards;
- Costs of, changes in, or the results of
laws, government regulations (including climate change regulation
and/or potential additional regulation of drilling and completion
of wells), environmental liabilities and litigation;
- Political conditions in Argentina,
Colombia and other parts of the world;
- The failure to renew participation in
hydrocarbon concessions granted by the Argentine government on
reasonable terms;
- Risks related to strategy and
financing, including restrictions stemming from our loan agreement
and the availability and cost of credit;
- Risks associated with future weather
conditions, volcanic activity and earthquakes;
- Acts of terrorism; and
- Additional risks described in our
filings with the Securities and Exchange Commission ("SEC").
Given the uncertainties and risk factors that could cause our
actual results to differ materially from those contained in any
forward-looking statement, we caution investors not to unduly rely
on our forward-looking statements. We disclaim any obligations to
and do not intend to update the above list or to announce publicly
the result of any revisions to any of the forward-looking
statements to reflect future events or developments.
In addition to causing our actual results to differ, the factors
listed above may cause our intentions to change from those
statements of intention set forth in this announcement. Such
changes in our intentions may also cause our results to differ. We
may change our intentions, at any time and without notice, based
upon changes in such factors, our assumptions, or otherwise.
Investors are urged to closely consider the disclosures and risk
factors in our most recent annual report on Form 10-K filed with
the SEC and our quarterly reports on Form 10-Q available from our
offices or from our website at www.apcooilandgas.com.