Apache Achieves Record Fourth Quarter And 2012 Production; Fourth Quarter Production Averaged 800,000 BOEPD
Apache Achieves Record Fourth Quarter And 2012 Production; Fourth Quarter
Production Averaged 800,000 BOEPD
PR Newswire
HOUSTON, Feb. 14, 2013
HOUSTON, Feb. 14, 2013 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA)
today reported record overall production for its fourth consecutive year, as
well as record oil and liquids production. Average daily production during
2012 increased to 779,000 barrels of oil equivalent (boe) per day, up 5.4
percent compared with the prior year's production, adjusted for dispositions.
Oil and gas revenues were a record $16.9 billion, up from $16.8 billion in the
prior year.
These results contributed to full-year 2012 earnings of $1.9 billion or $4.92
per diluted common share, compared with $4.5 billion or $11.47 per share in
2011. Excluding certain items that management believes affect the
comparability of operating results, such as the impact of a ceiling test
write-down due primarily to substantially weaker Canadian natural gas prices,
Apache reported adjusted earnings* of $3.8 billion or $9.48 per share,
compared with $4.7 billion or $11.83 per share in 2011. Cash from operations
before changes in operating assets and liabilities* was $10.2 billion,
sustaining the record level achieved the prior year even with lower average
North American natural gas prices.
"Having deepened and strengthened our global portfolio of growth projects
since 2010, we are accelerating our operational momentum," said G. Steven
Farris, chairman and chief executive officer. "Apache exited 2012 producing in
excess of 800,000 boe per day, driven primarily by our North American oil
production, which increased 12 percent during the year.
"We have an extensive pipeline of opportunities that will fuel our profitable
growth for years to come. This includes more than 67,000 technically evaluated
drilling locations in the onshore U.S. It also includes a robust group of
world-class development projects throughout our global portfolio, including
Wheatstone and Kitimat, our two liquefied natural gas projects with products
indexed to crude oil prices."
Apache has become the leading oil and gas driller in the Permian Basin,
operating more rigs than any industry competitor. Apache also is among the
most active oil and gas companies in the Central Region's Anadarko Basin, as
the company accelerates development of its horizontal drilling play inventory.
Year-over-year production from these two regions increased 18 and 37 percent,
respectively.
Earlier this month, a company subsidiary completed a transaction with Chevron
Canada Ltd. to jointly build and operate the Kitimat LNG project, enhancing
our efforts to move this project to sanction and monetize natural gas
resources we discovered in the Horn River and Liard basins of northern British
Columbia. The incremental resources targeted for monetization through Kitimat
have the potential to triple Apache's total proved reserves.
In fourth-quarter 2012 earnings totaled $649 million or $1.64 per diluted
share, compared with $1.17 billion or $2.98 per share in the prior-year
period. Adjusted earnings for the period were $907 million, or $2.27 per
share, compared with $1.2 billion, or $2.94 per share in the same period for
2011. Production reached a new quarterly milestone, averaging 800,000 boe per
day, and cash from operations totaled $2.77 billion, compared with $2.66
billion in the same period of the prior year.
Apache's oil and natural gas liquids production was 51 percent of total volume
in 2012 and contributed 81 percent of revenues reflecting the wide gap between
global crude oil and North American natural gas prices.
During 2012 the company added 372 MMboe of reserves, or 131 percent of
production, through discoveries and extensions and 73 MMboe through
acquisitions for a reserve replacement rate of 156 percent, excluding
revisions. Low prices throughout the year for Canadian natural gas resulted in
a ceiling test write-down and were the primary driver of negative revisions
totaling 299 MMboe. Apache ended the year with proved reserves of 2.9 billion
boe, after producing 285 MMboe. The company invested $9.0 billion on
exploration and development during the year.
Apache to webcast conference call
Apache Corporation will discuss its fiscal 2012 and fourth-quarter results at
1 p.m. Central time on Thursday, Feb. 14. 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 Feb.
14. To access the telephone playback, dial 855-859-2056 or 404-537-3406 for
international calls. The conference access code is 84095210.
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 growth plans, expectations,
and objectives for Apache's operations including statements about our drilling
plans, planned wells, and Wheatstone and Kitimat LNG projects. 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 our subsequent
filings 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.
Cautionary Note to Investors
The United States Securities and Exchange Commission ("SEC") permits oil and
gas companies, in their filings with the SEC, to disclose only proved,
probable, and possible reserves that meet the SEC's definitions for such
terms. Apache uses certain terms in this release, such as "resources," and
other similar terms that the SEC guidelines strictly prohibit Apache from
including in filings with the SEC. Such terms do not take into account the
certainty of resource recovery, which is contingent on exploration success,
technical improvements in drilling access, commerciality and other factors,
and are therefore not indicative of expected future resource recovery and
should not be relied upon. Investors are urged to consider carefully the
disclosure in Apache's Annual Report on Form 10-K for the fiscal year ended
Dec. 31, 2011, and amendments thereto, available from Apache at
www.apachecorp.com or by writing Apache at: 2000 Post Oak Blvd., Suite 100,
Houston, Texas 77056 (Attn: Corporate Secretary). You can also obtain this
report from the SEC by calling 1-800-SEC-0330 or from the SEC's website at
www.sec.gov.
*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 CORPORATION
STATEMENT OF CONSOLIDATED OPERATIONS
(In millions, except per share data)
For the Quarter For the Year
Ended December 31, Ended December 31,
2012 2011 2012 2011
REVENUES AND OTHER:
Oil and gas production $ 4,393 $ 4,295 $ 16,947 $ 16,810
revenues
Other (2) 2 131 78
4,391 4,297 17,078 16,888
COSTS AND EXPENSES:
Depreciation, depletion and
amortization
Recurring 1,380 1,111 5,183 4,095
Additional 28 63 1,926 109
Asset retirement obligation 60 40 232 154
accretion
Lease operating expenses 790 659 2,968 2,605
Gathering and transportation 68 75 303 296
Taxes other than income 235 236 862 899
General and administrative 147 132 531 459
Merger, acquisitions & 2 5 31 20
transition
Financing costs, net 40 35 165 158
2,750 2,356 12,201 8,795
INCOME BEFORE INCOME TAXES 1,641 1,941 4,877 8,093
Current income tax provision 506 571 2,235 2,263
Deferred income tax provision 467 181 641 1,246
NET INCOME 668 1,189 2,001 4,584
Preferred stock dividends 19 19 76 76
INCOME ATTRIBUTABLE TO COMMON $ 649 $ 1,170 $ 1,925 $ 4,508
STOCK
NET INCOME PER COMMON SHARE:
Basic $ 1.66 $ 3.05 $ 4.95 $ 11.75
Diluted $ 1.64 $ 2.98 $ 4.92 $ 11.47
WEIGHTED-AVERAGE NUMBER OF
COMMON
SHARES OUTSTANDING:
Basic 391 384 389 384
Diluted 407 400 391 400
DIVIDENDS DECLARED PER COMMON $ 0.17 $ 0.15 $ 0.68 $ 0.60
SHARE
APACHE CORPORATION
SUMMARY OF CAPITAL COSTS INCURRED
(In millions)
For the Quarter For the Year
Ended December 31, Ended December 31,
2012 2011 2012 2011
CAPITAL EXPENDITURES:
Exploration &
Development Costs
$ $ $ $
United States 1,543 792
5,151 2,768
Canada 131 208 590 817
North America 1,674 1,000 5,741 3,585
Egypt 265 222 1,074 896
Australia 355 131 873 576
North Sea 183 205 886 823
Argentina 67 101 289 346
New Ventures - 14 12 98 61
International
International 884 671 3,220 2,702
Worldwide $ $ $ $
Exploration & 2,558 1,671
Development Costs 8,961 6,287
Gathering, Transmission
and Processing
Facilities
$ $
United States $ $
18 18 75
27
Canada 34 35 172 148
Egypt 18 37 33 111
Australia 103 90 441 345
Argentina 4 5 16 12
North Sea 1 - 1 -
Total Gathering, $ $ $ $
Transmission and 178 185
Processing 738 643
$ $ $ $
Capitalized Interest 93 70
334 263
Capital Expenditures, $ $ $ $
excluding Acquisitions 2,829 1,926 10,033
7,193
$ $ $ $
Acquisitions 122 2,696
3,543 3,189
APACHE CORPORATION
SUMMARY BALANCE SHEET INFORMATION
(In millions)
December 31, December 31,
2012 2011
Cash and Cash $ $
Equivalents 160 295
Other Current Assets 4,802 4,508
Property and Equipment, 53,280 45,448
net
Goodwill 1,289 1,114
Other Assets 1,206 686
Total Assets $ $
60,737 52,051
Short-Term Debt $ $
990 431
Other Current 4,546 4,532
Liabilities
Long-Term Debt 11,355 6,785
Deferred Credits and
Other Noncurrent 12,515 11,310
Liabilities
Shareholders' Equity 31,331 28,993
Total Liabilities and $ $
Shareholders' Equity 60,737 52,051
Common shares
outstanding at end of 392 384
period
APACHE CORPORATION
PRODUCTION INFORMATION
For the Quarter For the Year
Ended December 31, Ended December 31,
2012 2011 2012 2011
OIL VOLUME - Barrels per day
Central 21,026 7,323 14,151 6,788
Permian 65,104 54,381 60,215 50,991
GOM Deepwater 8,355 6,507 6,848 6,022
GOM Shelf 44,752 47,780 42,873 46,031
GC Onshore 10,489 10,189 10,036 9,583
United States 149,726 126,180 134,123 119,415
Canada 17,377 14,882 15,830 14,252
North America 167,103 141,062 149,953 133,667
Egypt 103,056 103,908 99,756 103,912
Australia 26,483 38,169 28,884 38,228
North Sea 65,583 55,859 63,692 54,541
Argentina 9,859 9,655 9,741 9,597
International 204,981 207,591 202,073 206,278
Total 372,084 348,653 352,026 339,945
NATURAL GAS VOLUME - Mcf per day
Central 287,956 193,722 242,998 213,447
Permian 184,781 178,766 180,938 173,188
GOM Deepwater 48,177 48,144 46,048 52,193
GOM Shelf 265,918 335,434 291,356 341,242
GC Onshore 103,722 106,505 92,759 84,672
United States 890,554 862,571 854,099 864,742
Canada 550,495 631,122 600,680 632,550
North America 1,441,049 1,493,693 1,454,779 1,497,292
Egypt 350,406 355,091 353,738 365,418
Australia 204,961 189,852 214,013 185,079
North Sea 43,745 2,366 57,457 2,284
Argentina 204,724 221,523 213,464 212,311
International 803,836 768,832 838,672 765,092
Total^ 2,244,885 2,262,525 2,293,451 2,262,384
NGL VOLUME - Barrels per day
Central 10,231 5,566 6,518 2,268
Permian 21,997 12,256 17,966 11,799
GOM Deepwater 1,519 582 1,185 715
GOM Shelf 6,908 4,446 5,738 5,278
GC Onshore 2,229 2,556 2,120 2,051
United States 42,884 25,406 33,527 22,111
Canada 6,837 5,183 6,258 5,958
North America 49,721 30,589 39,785 28,069
Egypt - - - 49
North Sea 1,085 - 1,618 4
Argentina 2,967 2,997 3,008 3,018
International 4,052 2,997 4,626 3,071
Total 53,773 33,586 44,411 31,140
BOE per day
Central 79,250 45,176 61,169 44,630
Permian 117,898 96,431 108,338 91,655
GOM Deepwater 17,903 15,114 15,708 15,436
GOM Shelf 95,980 108,132 97,170 108,183
GC Onshore 30,005 30,495 27,615 25,746
United States 341,036 295,348 310,000 285,650
Canada 115,963 125,252 122,201 125,636
North America 456,999 420,600 432,201 411,286
Egypt 161,458 163,090 158,713 164,864
Australia 60,643 69,812 64,552 69,074
North Sea 73,959 56,253 74,887 54,925
Argentina 46,946 49,572 48,326 48,000
International 343,006 338,727 346,478 336,863
Total^ 800,005 759,327 778,679 748,149
APACHE CORPORATION
PRICE INFORMATION
For the Quarter For the Year
Ended December 31, Ended December 31,
2012 2011 2012 2011
AVERAGE OIL PRICE PER BARREL
Central $ 82.55 $ 89.36 $ 86.48 $ 89.89
Permian 81.40 89.99 88.18 90.87
GOM Deepwater 103.06 112.77 105.17 106.75
GOM Shelf 105.27 115.70 108.52 108.92
GC Onshore 105.21 112.66 107.83 105.98
United States ^(1) 91.01 99.54 94.98 95.51
Canada 82.08 94.38 84.89 93.19
North America ^(1) 90.08 98.99 93.91 95.27
Egypt^(1) 107.80 106.65 110.92 109.92
Australia^(1) 111.34 109.53 115.22 111.22
North Sea^(1) 106.17 104.64 107.97 104.09
Argentina 74.53 76.67 75.89 68.02
International ^(1) 106.14 105.24 108.92 106.67
Total^(1) 98.93 102.71 102.53 102.19
AVERAGE NATURAL GAS PRICE PER MCF
Central $ 3.79 $ 3.92 $ 3.26 $ 4.44
Permian 3.75 5.05 3.34 5.17
GOM Deepwater 3.48 3.48 2.99 4.06
GOM Shelf 3.51 3.86 3.01 4.42
GC Onshore 3.47 3.73 2.92 4.34
United States ^(1) 4.05 4.59 3.74 4.91
Canada ^(1) 4.03 4.15 3.42 4.47
North America ^(1) 4.04 4.40 3.61 4.72
Egypt 4.02 4.82 3.90 4.66
Australia 4.88 2.64 4.55 2.69
North Sea 10.11 20.49 8.95 22.25
Argentina 2.98 2.82 2.87 2.64
International 4.30 3.75 4.15 3.67
Total ^(1) 4.14 4.18 3.80 4.37
AVERAGE NGL PRICE PER BARREL
Central $ 27.06 $ 29.96 $ 27.48 $ 38.67
Permian 29.95 39.09 32.97 47.88
GOM Deepwater 32.34 58.28 33.06 50.44
GOM Shelf 28.17 55.07 32.04 49.63
GC Onshore 36.60 56.08 40.04 58.51
United States 29.40 42.03 32.19 48.42
Canada 33.59 50.16 34.63 45.72
North America 29.98 43.41 32.57 47.85
Egypt - - - 66.36
North Sea 94.42 - 77.11 65.45
Argentina 22.76 27.00 21.55 27.90
International 41.96 27.00 40.98 28.56
Total 30.88 41.95 33.45 45.95
^(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,
2012 2011 2012 2011
Income Attributable to Common $ 649 $ 1,170 $ $
Stock (GAAP) 1,925 4,508
Adjustments:
Canada and other oil &
gas property 18 60 1,427 60
write-down, net of tax
Deferred tax 226 (75) 226 (75)
adjustments
U.K. income tax - - 118 218
adjustments
Commodity derivative
mark-to-market, net of 51 - 51 -
tax
Merger, acquisitions & 2 4 19 13
transition, net of tax
Unrealized foreign
currency fluctuation (39) (5) 1 (73)
impact on deferred tax
expense
Adjusted Earnings (Non-GAAP) $ 907 $ 1,154 $ $
3,767 4,651
Net Income per Common Share - $ 1.64 $ 2.98 $ $
Diluted (GAAP) 4.92 11.47
Adjustments:
Canada and other oil &
gas property 0.04 0.15 3.53 0.15
write-down, net of tax
Deferred tax 0.56 (0.19) 0.56 (0.19)
adjustments
U.K. income tax - - 0.30 0.55
adjustments
Commodity derivative
mark-to-market, net of 0.13 - 0.13 -
tax
Merger, acquisitions & - 0.01 0.04 0.03
transition, net of tax
Unrealized foreign
currency fluctuation (0.10) (0.01) - (0.18)
impact on deferred tax
expense
Adjusted Earnings Per Share - $ 2.27 $ 2.94 $ $
Diluted (Non-GAAP) 9.48 11.83
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,
2012 2011 2012 2011
Net cash provided by $ 2,082 $ 2,782 $ $
operating activities 8,504 9,953
Changes in operating assets 685 (118) 1,705 281
and liabilities
Cash from operations before
changes in operating assets $ 2,767 $ 2,664 $ 10,209 $ 10,234
and liabilities
APACHE CORPORATION
OIL & GAS RESERVES INFORMATION
For the Year Ended December 31, 2012
OIL (Mbbl)
U.S. Canada Egypt Australia North Argentina Total
Sea
Balance - 634,014 141,591 128,035 67,945 169,405 20,587 1,161,577
Dec 31, 2011
Extensions
and 84,656 18,935 36,188 6,277 346 1,133 147,535
Discoveries
Purchases 15,942 188 - 276 2,143 - 18,549
Revisions (7,474) (4,577) (3,678) (66) (928) 671 (16,052)
Production (49,089) (5,792) (36,511) (10,571) (23,312) (3,565) (128,840)
Sales (144) - - - - - (144)
Balance - 677,905 150,345 124,034 63,861 147,654 18,826 1,182,625
Dec 31, 2012
NGL's
(Mbbl)
U.S. Canada Egypt Australia North Argentina Total
Sea
Balance - 160,033 31,450 - - 9,262 7,153 207,898
Dec 31, 2011
Extensions
and 71,965 7,655 - - 246 - 79,866
Discoveries
Purchases 230 9 - - 231 - 470
Revisions (4,559) (2,569) - - (6,329) (169) (13,626)
Production (12,272) (2,291) - - (592) (1,101) (16,256)
Balance - 215,397 34,254 - - 2,818 5,883 258,352
Dec 31, 2012
Oil &
NGL's
U.S. Canada Egypt Australia North Argentina Total
Sea
Balance - 794,047 173,041 128,035 67,945 178,667 27,740 1,369,475
Dec 31, 2011
Extensions
and 156,621 26,590 36,188 6,277 592 1,133 227,401
Discoveries
Purchases 16,172 197 - 276 2,374 - 19,019
Revisions (12,033) (7,146) (3,678) (66) (7,257) 502 (29,678)
Production (61,361) (8,083) (36,511) (10,571) (23,904) (4,666) (145,096)
Sales (144) - - - - - (144)
Balance - 893,302 184,599 124,034 63,861 150,472 24,709 1,440,977
Dec 31, 2012
GAS (MMcf)
U.S. Canada Egypt Australia North Argentina Total
Sea
Balance - 2,976,211 3,547,511 982,966 1,569,584 108,442 537,559 9,722,273
Dec 31, 2011
Extensions
and 365,863 252,130 55,967 176,969 16,397 2,623 869,949
Discoveries
Purchases 313,885 2,503 - 1,745 8,494 - 326,627
Revisions (156,840) (1,443,989) (13,974) 101 - 496 (1,614,206)
Production (312,600) (219,849) (129,468) (78,329) (21,029) (78,128) (839,403)
Sales (612) (422) - - - - (1,034)
Balance - 3,185,907 2,137,884 895,491 1,670,070 112,304 462,550 8,464,206
Dec 31, 2012
TOTAL BOE
(Mboe)
U.S. Canada Egypt Australia North Argentina Total
Sea
Balance - 1,290,082 764,293 291,863 329,542 196,741 117,333 2,989,854
Dec 31, 2011
Extensions
and 217,598 68,612 45,516 35,772 3,325 1,570 372,393
Discoveries
Purchases 68,486 614 - 567 3,790 - 73,457
Revisions (38,173) (247,811) (6,007) (49) (7,257) 585 (298,712)
Production (113,461) (44,725) (58,089) (23,626) (27,409) (17,687) (284,997)
Sales (246) (70) - - - - (316)
Balance - 1,424,286 540,913 273,283 342,206 169,190 101,801 2,851,679
Dec 31, 2012
Proved
developed
reserves:
Oil + NGL's 629,345 101,691 106,746 29,053 122,073 20,852 1,009,760
(Mbbls)
Gas (Mboe) 392,264 289,109 115,073 99,342 15,554 60,843 972,185
Balance -
Dec 31, 2012 1,021,609 390,800 221,819 128,395 137,627 81,695 1,981,945
(Mboe)
APACHE CORPORATION
OIL & GAS RESERVES AND COSTS
For the Year Ended December 31, 2012
Reserve
Additions
(Mboe)
U.S. Canada Egypt Australia North Argentina Other Total
Sea
Extensions
and 217,598 68,612 45,516 35,772 3,325 1,570 - 372,393
Discoveries
Purchases 68,486 614 - 567 3,790 - - 73,457
Additions
excluding 286,084 69,226 45,516 36,339 7,115 1,570 - 445,850
revisions
Revisions (38,173) (247,811) (6,007) (49) (7,257) 585 - (298,712)
Total 247,911 (178,585) 39,509 36,290 (142) 2,155 - 147,138
Capital Cost
Information
(Non-GAAP)
(in millions)
U.S. Canada Egypt Australia North Argentina Other Total
Sea
Exploration &
Development,
excluding
Capitalized
Interest and
Asset $ $ $ $ $ $ $ $
Retirement 5,151 590 1,074 873 886 289 98 8,961
Cost (ARC)
^(1)
Acquisitions,
excluding ARC
- Acquired
Proved 1,071 5 28 4 59 - - 1,167
Unproved 2,329 - - - 26 - - 2,355
Total $ $ $ $ $ $ $ $ 12,483
8,551 595 1,102 877 971 289 98
^(1) Includes capital spending of $1.1 billion for leasehold and $365 million for seismic.
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 Australia North Argentina Other Total
Sea
Exploration &
Development $ $ $ $ 1,064 $ $ $ $ 10,225
Costs (in 5,834 873 1,090 948 318 98
millions)
Less:
Capitalized (215) (38) (16) (12) (24) (11) - (316)
Interest
Less: ARC (468) (245) - (179) (38) (18) - (948)
Total $ $ $ $ $ $ $ $
Adds 5,151 590 1,074 873 886 289 98 8,961
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 Australia North Argentina Other Total
Sea
Total
Acquisition
Costs (in
millions)
Proved $ $ $ $ $ $ $ $
1,076 5 28 32 110 - - 1,251
Unproved 2,329 - - - 26 - 2,355
Less: ARC - (5) - - (28) (51) - - (84)
Acquired
Acquisitions, $ $ $ $ $ $ $ $
excluding ARC 3,400 5 28 4 85 - - 3,522
- Acquired
APA-F
SOURCE Apache Corporation
Website: http://www.apachecorp.com
Contact: Media, Patrick Cassidy, +1-713-296-6100, or Bill Mintz,
+1-713-296-7276, or John Roper, +1-281-302-2646, or Bob Dye, +1-713-296-6662,
or Investors, Brady Parish, Castlen Kennedy, Christopher Cortez, or Alicia
Reis, +1-713-302-2286
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