Apco Oil and Gas International Inc. (NASDAQ:APAGF) today
announced that for the three- and nine-month periods ended Sept.
30, 2014, it generated unaudited net income attributable to Apco of
$12.6 million and $22.8 million, or $0.43 and $0.77 per share,
compared with a net loss of $6.0 million and net income of $17.4
million, or $(0.21) and $0.59 per share for the same periods in
2013.
Net income increased for the quarter and year-to-date periods
compared with the same periods of 2013 due primarily to the
combination of greater operating revenues and the absence of a
$13.7 million non-cash deferred income tax expense recorded in
third-quarter 2013 related to new tax legislation enacted by the
Argentine government.
Total operating revenues increased by $12.7 million for the
quarter and $5.0 million for the first nine months of 2014 compared
with the same periods in 2013. Greater oil and natural gas sales
volumes and higher prices contributed to the increase in 2014
revenues. In particular, increased oil volumes from recent
exploration success in Colombia began to have a significant impact
on revenues during third-quarter 2014.
Partially offsetting the benefits of higher oil and natural gas
revenues were decreased revenues from the Oil Plus hydrocarbon
subsidy program in Argentina compared with 2013.
Total costs and operating expenses were higher for the third
quarter and the first nine months of 2014 compared with 2013
primarily due to greater depreciation, depletion and amortization
expense, greater taxes other than income and higher other expenses.
Declining forward oil prices resulted in a non-cash impairment
charge of $1.6 million recorded in other expenses during
third-quarter 2014. Results for the year-to-date period also
reflect the absence of a $3.6 million gain realized in 2013 on a
farm-out agreement.
During third-quarter 2014, Apco also experienced higher equity
income from its 40.72 percent interest in Petrolera Entre Lomas
S.A. The impact of higher operating revenues during the quarter
contributed to a $1.2 million increase in equity income from
Argentine investment compared with the comparable period of
2013.
For the year-to-date period, higher operating revenues for
Petrolera were more than offset by the combination of higher
operating costs including foreign exchange losses, and greater
income tax expense which resulted in decreased equity income from
Argentine investment compared with 2013.
2014 Capital Program and Operations Update
During the first nine months of 2014, capital expenditures of
$60 million attributable to Apco’s consolidated interests were
invested primarily in exploration and development drilling in
Colombia and development drilling in Neuquén and Austral basin
properties.
In Colombia, Apco participated in the drilling of eight
exploration wells and four development wells. In Argentina, Apco
participated in the drilling and completion of 25 wells, and an
additional eight wells were in various stages of drilling or
completion at the end of September.
Apco Oil and Gas International
Inc.
Summary of Earnings (In Thousands of Dollars Except Per
Share Amounts)
2014 2013
Three months ended September 30
Operating revenue
46,336 33,672 Costs and operating
expenses 35,045 27,651
Investment income 5,817 4,482
Net income attributable to Apco 12,621
(6,038 ) Per share 0.43 (0.21 )
2014 2013
Nine months ended September 30
Operating revenue
115,722 110,741 Costs and operating
expenses 95,800 84,777
Investment income 12,297 16,069
Net income attributable to Apco 22,802
17,415 Per share 0.77 0.59
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
our e-mail list.
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.
Apco Oil and Gas International Inc.Media Contact:Kelly
Swan, 539-573-4944orInvestor Contact:David Sullivan,
539-573-9360