Apache's Drilling Program, New Takeaway Capacity Fuel Record Third-Quarter Production In Permian And Central Regions

  Apache's Drilling Program, New Takeaway Capacity Fuel Record Third-Quarter
                  Production In Permian And Central Regions

PR Newswire

HOUSTON, Nov. 1, 2012

HOUSTON, Nov. 1, 2012 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA)
said today that higher rig counts and new infrastructure contributed to record
production from Permian and Anadarko Basin operations.

For the three-month period ending Sept. 30, 2012, Apache reported production
of 771,000 barrels of oil equivalent per day, up approximately 18,300 boepd,
or 2.4 percent, from the same period in the prior year. Deferred production
impacted third-quarter 2012 volumes by an estimated 25,000 boepd.

Apache's third-quarter 2012 earnings totaled $161 million, or 41 cents per
diluted common share, reflecting the impact of a $539 million non-cash,
after-tax write-down in the carrying value of its properties in Canada
resulting from lower natural gas prices. For the same period last year, Apache
reported earnings of $983 million, or $2.50 per diluted share.

Apache's adjusted earnings,* which exclude the write-down and certain other
items that impact the comparability of operating results, totaled $861
million, or $2.16 per diluted common share, in the third quarter as the impact
of higher production was offset in part by lower prices for natural gas and
natural gas liquids. In the prior-year period, Apache reported adjusted
earnings of $1.16 billion, or $2.95 per share. Cash from operations before
changes in operating assets and liabilities* totaled $2.42 billion in the
third quarter, down from $2.69 billion in the prior-year period.

"We are continuing to add drilling rigs and accelerate activity in the Permian
and Anadarko basins. Today, we are running 56 rigs in these regions with plans
to expand throughout next year. All are drilling oil and liquids-rich targets
and more than half are drilling horizontal wells. Production in these two
regions increased 30 percent from a year ago, accounting for nearly a quarter
of Apache's overall production compared with less than a fifth in
third-quarter 2011. We expect this growth trajectory to continue well into the
future," said G. Steven Farris, chairman and chief executive officer.

Apache's production from the Permian Basin and Central regions totaled 183,961
boepd for third quarter 2012, which includes a full three-month's contribution
from Cordillera assets acquired earlier in the year. For the same period in
2011, the two regions produced 141,020 boepd.

"Another contributor to our growth was securing additional takeaway capacity,
which we've done with new infrastructure projects," Farris said. "Our
joint-venture gas plant at the Deadwood Field in West Texas became fully
operational during the third quarter, processing more than 50 million cubic
feet per day. We also installed a nine-mile pipeline in our Bivins Ranch area
in the Texas Panhandle. The line is currently transporting 3.3 MMcf of
associated gas per day and will enable us to continue to develop the area well
beyond its present rate of 5,000 barrels of oil per day. Both projects can be
expanded with production growth. We continue to pursue marketing arrangements
aggressively to move our production and enhance margins.

"We're committed to growth through the drill bit across our portfolio, and
Apache has nearly 100 rigs operating worldwide right now. With drilling
activity and production on the rise, we look forward to concluding 2012 with
our strongest quarter of the year," he said.

The company's balanced portfolio of North American and international assets,
as well as oil and gas producing properties, helped to stabilize the effects
of volatile prices in the commodity markets. Worldwide, Apache received an
average of $102.62 per barrel of oil, a slight increase from $101.71 per
barrel in the prior-year period. Apache benefitted from higher price
realizations on Dated Brent crude produced in the company's Australia, North
Sea and Egypt regions, and on sweet crude from the Gulf of Mexico regions.
Apache received premium prices to the WTI index on approximately 70 percent of
crude oil production.

Apache's international regions saw natural gas price realizations increase on
average 13 percent from the prior-year period to $4.21 per thousand cubic feet
(Mcf). North American natural gas price realizations fell 27 percent from the
same period a year ago to $3.51 per Mcf. International gas production
represented 36 percent of Apache's total gas volumes.

*Adjusted earnings and cash from operations before changes in operating assets
and liabilities are non-GAAP measures. Please see reconciliations below. For
supplemental and non-GAAP information, please go to
http://www.apachecorp.com/financialinfo.

Apache to webcast conference call

Apache Corporation will discuss its third-quarter 2012 results at 1 p.m.
Central time on Thursday, Nov. 1. 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. on Nov. 1. To
access the telephone playback, dial 855-859-2056 or 404-537-3406 for
international calls. The conference access code is 42313953.

About Apache

Apache Corporation is an oil and gas exploration and production company with
operations in the United States, Canada, Egypt, the United Kingdom North Sea,
Australia and Argentina. Apache posts announcements, operational updates,
investor information and copies of all press releases on its website
www.apachecorp.com.

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
infrastructure projects, drilling plans and future production growth. 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 2011 Form 10-K and other public
filings 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
(In millions, except per share data)
                                 For the Quarter     For the Nine Months
                                 Ended September 30,  Ended September 30,
                                 2012       2011      2012         2011
REVENUES AND OTHER:
  Oil and gas production         $ 4,141    $ 4,282   $ 12,554     $ 12,515
  revenues
  Other                         38         46        133          76
                                 4,179      4,328     12,687       12,591
COSTS AND EXPENSES:
  Depreciation, depletion and
  amortization
   Recurring                  1,300      1,045     3,803        2,984
   Additional                 729        20        1,898        46
  Asset retirement obligation    60         39        172          114
  accretion
  Lease operating expenses       801        661       2,178        1,946
  Gathering and transportation  86         72        235          221
  Taxes other than income        167        244       627          663
  General and administrative     124        112       384          327
  Merger, acquisitions &         7          4         29           15
  transition
  Financing costs, net           40         37        125          123
                                 3,314      2,234     9,451        6,439
INCOME BEFORE INCOME TAXES       865        2,094     3,236        6,152
  Current income tax provision  544        473       1,729        1,692
  Deferred income tax provision  141        619       174          1,065
NET INCOME                      180        1,002     1,333        3,395
  Preferred stock dividends      19         19        57           57
INCOME ATTRIBUTABLE TO COMMON    $  161   $  983  $  1,276    $  3,338
STOCK
NET INCOME PER COMMON SHARE:
  Basic                          $  0.41   $  2.56  $   3.29  $   8.70
  Diluted                       $  0.41   $  2.50  $   3.27  $   8.49
WEIGHTED-AVERAGE NUMBER OF
COMMONSHARES OUTSTANDING:
  Basic                          391        384       388          384
  Diluted                        393        400       390          400
DIVIDENDS DECLARED PER COMMON    $  0.17   $  0.15  $   0.51  $   0.45
SHARE



APACHE CORPORATION
SUMMARY OF CAPITAL COSTS INCURRED
(In millions)
                               For the Quarter          For the Nine Months
                               Ended September 30,       Ended September 30,
                               2012         2011         2012        2011
CAPITAL EXPENDITURES (1):
 Exploration & Development
 Costs
   United States               $       $       $ 3,608     $ 1,976
                                1,422        688
   Canada                      164          175          459         609
     North America             1,586        863          4,067       2,585
   Egypt                       299          197          809         674
   Australia                   265          127          518         445
   North Sea                   283          197          703         618
   Argentina                   65           87           222         245
   Other International         51           22           84          49
     International             963          630          2,336       2,031
     Worldwide Exploration &   $       $       $ 6,403     $ 4,616
     Development Costs          2,549      1,493
 Gathering, Transmission and
 Processing Facilities
   United States               $       $       $    57  $    
                                   13       9               9
   Canada                      52           29           138         113
   Egypt                       (22)         20           15          74
   Australia                   89           136          338         255
   Argentina                   3            3            12          7
     Total Gathering,          $       $     
     Transmission and             135      197      $  560    $  458
     Processing
 Capitalized Interest          $       $       $  241    $  193
                                   90      70
 Capital Expenditures,         $       $       $ 7,204     $ 5,267
 excluding Acquisitions         2,774      1,760
 Acquisitions                  $       $       $ 3,421     $  493
                                   59     398
 (1) Accrual basis



APACHE CORPORATION
SUMMARY BALANCE SHEET INFORMATION
(In millions)
                                        September 30,        December 31,
                                        2012                 2011
 Cash and Cash Equivalents              $            $       
                                        318                  295
 Other Current Assets                  4,726                4,508
 Property and Equipment, net            51,164               45,448
 Goodwill                               1,114                1,114
 Other Assets                           1,488                686
 Total Assets                           $      58,810   $     52,051
 Short-Term Debt                        $            $       
                                        964                  431
 Other Current Liabilities              4,426                4,532
 Long-Term Debt                         10,670               6,785
 Deferred Credits and Other Noncurrent  12,036               11,310
 Liabilities
 Shareholders' Equity                   30,714               28,993
 Total Liabilities and Shareholders'    $      58,810   $     52,051
 Equity
 Common shares outstanding at end of    391                  384
 period



APACHE CORPORATION
PRODUCTION INFORMATION
                                   For the Quarter      For the Nine Months
                                   Ended September 30,   Ended September 30,
                                   2012       2011       2012       2011
 OIL VOLUME - Barrels per day
     Central                       17,003     7,873      11,843     6,608
     Permian                       60,822     51,410     58,573     49,849
     GOM Deepwater                 6,982      6,155      6,342      5,859
     GOM Shelf                     38,573     45,057     42,242     45,442
     GC Onshore                    9,621      9,858      9,884      9,377
          United States            133,001    120,353    128,884    117,135
     Canada                        15,075     13,027     15,311     14,040
          North America            148,076    133,380    144,195    131,175
     Egypt                         97,546     103,289    98,648     103,913
     Australia                     28,191     39,400     29,690     38,248
     North Sea                     57,296     57,838     63,058     54,097
     Argentina                     9,885      9,461      9,701      9,577
          International            192,918    209,988    201,097    205,835
                 Total            340,994    343,368    345,292    337,010
 NATURAL GAS VOLUME - Mcf per day
     Central                       281,945    221,193    227,903    220,094
     Permian                       180,610    181,070    179,648    171,309
     GOM Deepwater                 41,267     43,596     45,333     53,557
     GOM Shelf                     266,415    331,251    299,897    343,200
     GC Onshore                    93,196     80,883     89,078     77,314
          United States            863,433    857,993    841,859    865,474
     Canada                        604,442    619,897    617,530    633,031
          North America            1,467,875  1,477,890  1,459,389  1,498,505
     Egypt                         329,793    376,259    354,856    368,898
     Australia                     215,317    187,852    217,053    183,470
     North Sea                     54,478     2,497      62,061     2,257
     Argentina                     213,745    223,929    216,399    209,206
          International            813,333    790,537    850,369    763,831
                 Total^           2,281,208  2,268,427  2,309,758  2,262,336
 NGL VOLUME - Barrels per day
     Central                       8,305      1,961      5,271      1,156
     Permian                       20,739     12,733     16,613     11,645
     GOM Deepwater                 1,483      726        1,073      760
     GOM Shelf                     6,663      4,560      5,345      5,559
     GC Onshore                    1,886      1,939      2,083      1,881
          United States            39,076     21,919     30,385     21,001
     Canada                        6,036      6,120      6,063      6,220
          North America            45,112     28,039     36,448     27,221
     Egypt                         -          (4)        -          66
     North Sea                     1,470      14         1,797      5
     Argentina                     3,006      3,008      3,022      3,024
          International            4,476      3,018      4,819      3,095
                 Total             49,588     31,057     41,267     30,316
 BOE per day
     Central                       72,298     46,699     55,097     44,446
     Permian                       111,663    94,321     105,127    90,045
     GOM Deepwater                 15,343     14,148     14,971     15,545
     GOM Shelf                     89,639     104,825    97,570     108,201
     GC Onshore                    27,039     25,278     26,813     24,144
          United States            315,982    285,271    299,578    282,381
     Canada                        121,851    122,463    124,296    125,765
          North America            437,833    407,734    423,874    408,146
     Egypt                         152,512    165,995    157,791    165,461
     Australia                     64,078     70,708     65,866     68,826
     North Sea                     67,845     58,269     75,198     54,478
     Argentina                     48,515     49,790     48,790     47,471
          International            332,950    344,762    347,645    336,236
                 Total^           770,783    752,496    771,519    744,382



APACHE CORPORATION
PRICE INFORMATION
                                     For the Quarter     For the Nine Months
                                     Ended September 30,  Ended September 30,
                                     2012       2011      2012        2011
 AVERAGE OIL PRICE PER BARREL
     Central                         $ 85.54    $ 84.55   $ 88.82     $ 90.09
     Permian                         87.49      86.67     90.71       91.19
     GOM Deepwater                   102.46     104.05    106.10      104.50
     GOM Shelf                       104.97     106.64    109.67      106.53
     GC Onshore                      104.02     102.69    108.76      103.53
           United States ^(1)        93.38      93.86     96.53       94.05
     Canada                          82.92      88.34     85.96       92.77
           North America ^(1)        92.32      93.32     95.41       93.91
     Egypt^(1)                       113.72     110.96    112.02      111.02
     Australia^(1)                   116.79     113.40    116.39      111.78
     North Sea^(1)                   108.44     101.85    108.60      103.90
     Argentina                       73.44      69.27     76.36       65.08
           International ^(1)        110.54     107.03    109.87      107.15
                    Total^(1)        102.62     101.71    103.83      102.00
 AVERAGE NATURAL GAS PRICE PER MCF
     Central                         $  3.24   $  4.67  $  3.04    $  4.60
     Permian                         3.07       5.35      3.20        5.21
     GOM Deepwater                   3.18       4.03      2.82        4.23
     GOM Shelf                       2.90       4.62      2.86        4.60
     GC Onshore                      2.95       4.60      2.70        4.63
           United States ^(1)        3.63       5.06      3.63        5.02
     Canada ^(1)                     3.33       4.49      3.23        4.58
           North America ^(1)        3.51       4.82      3.46        4.83
     Egypt                           4.04       4.60      3.86        4.61
     Australia                       4.76       2.88      4.45        2.71
     North Sea                       8.65       21.43     8.67        22.87
     Argentina                       2.78       2.74      2.84        2.57
           International             4.21       3.71      4.10        3.65
                    Total ^(1)       3.76       4.44      3.70        4.43
 AVERAGE NGL PRICE PER BARREL
     Central                         $ 24.28    $ 51.55   $ 27.74     $ 52.79
     Permian                         27.95      53.84     34.31       51.00
     GOM Deepwater                   30.24      54.95     33.40       48.41
     GOM Shelf                       31.10      53.44     33.71       48.17
     GC Onshore                      37.42      62.57     41.28       59.62
           United States             28.25      54.36     33.51       51.03
     Canada                          31.01      46.93     35.02       44.47
           North America             28.62      52.74     33.76       49.53
     Egypt                           -          -         -           66.37
     North Sea                       65.45      65.45     73.60       65.45
     Argentina                       16.25      26.45     21.15       28.20
           International             32.41      26.62     40.71       29.06
                    Total            28.96      50.20     34.57       47.44

 ^(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:
  oManagement uses adjusted earnings to evaluate the company's operational
    trends and performance relative to other oil and gas producing companies.
  oManagement 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.
  oThe 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 Nine
                                                  Months
                           Ended September 30,    Ended September 30,
                           2012        2011       2012       2011
Income Attributable to     $          $  983   $ 1,276    $ 3,338
Common Stock (GAAP)        161
Adjustments:
    Canada proved property 539         -          1,409      -
    write-down, net of tax
    U.K. decommissioning   118         -          118        -
    tax rate adjustment
    Unrealized foreign
    currency fluctuation   39          (99)       40         (68)
    impact on deferred tax
    expense
    Merger, acquisitions & 4           2          17         9
    transition, net of tax
    U.K. tax rate increase -           274        -          218
Adjusted Earnings         $          $ 1,160    $ 2,860    $ 3,497
(Non-GAAP)                 861
Net Income per Common      $          $  2.50   $  3.27   $  8.49
Share - Diluted (GAAP)     0.41
Adjustments:
    Canada proved property 1.33        -          3.49       -
    write-down, net of tax
    U.K. decommissioning   0.30        -          0.30       -
    tax rate adjustment
    Unrealized foreign
    currency fluctuation   0.10        (0.25)     0.11       (0.17)
    impact on deferred tax
    expense
    Merger, acquisitions & 0.02        0.01       0.05       0.02
    transition, net of tax
    U.K. tax rate increase -           0.69       -          0.55
Adjusted Earnings Per      $          $  2.95   $  7.22   $  8.89
Share - Diluted (Non-GAAP) 2.16
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 Nine Months
                                     Ended September 30,  Ended September 30,
                                     2012       2011      2012        2011
Net cash provided by operating       $ 1,623    $ 2,447   $ 6,422     $ 7,171
activities
Changes in operating assets and      793        241       1,020       399
liabilities
Cash from operations before changes
in
        operating assets and         $ 2,416    $ 2,688   $ 7,442     $ 7,570
        liabilities



APA-F

SOURCE Apache Corporation

Website: http://www.apachecorp.com
Contact: Media: Patrick Cassidy, +1-713-296-6100, or John Roper,
+1-281-302-2646, or Bill Mintz +1-713-296-7276; or Investors: Brady Parish,
+1-713-296-6472, or Castlen Kennedy, +1-713-296-7189
 
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