Apache Reports Net Income Of $1 Billion, $2.54 Earnings Per Diluted Share, And $2.8 Billion Of Cash Flow For Second-Quarter

Apache Reports Net Income Of $1 Billion, $2.54 Earnings Per Diluted Share, And
              $2.8 Billion Of Cash Flow For Second-Quarter 2013

- Achieved 42 percent year-over-year growth in North America onshore liquids

- Announced agreement to sell Gulf of Mexico shelf assets for $3.75 billion

- Increased drilling activities in the Permian and Anadarko basins

PR Newswire

HOUSTON, Aug. 1, 2013

HOUSTON, Aug. 1, 2013 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA),
today announced second-quarter 2013 earnings of $1 billion or $2.54 per
diluted common share and adjusted earnings,* which exclude certain items that
impact the comparability of results, of $801 million or $2.01 per share. For
the same period in the prior year, Apache reported earnings of $337 million or
$0.86 per diluted common share and adjusted earnings of $821 million or $2.07
per share. Net cash provided by operating activities came to approximately
$2.8 billion, with cash from operations before changes in operating assets and
liabilities* totaling $2.6 billion, up from $2.4 billion in the year-ago
period.

"We have increased our drilling activities in Texas and Oklahoma to boost
production and accelerate cash flow from our crude oil and liquids-rich
assets. With our acquisitions in the Permian and Anadarko basins over the last
three years, we added to an already formidable, legacy footprint in both of
these areas. This gives us an outstanding platform to continue growth in these
regions," said G. Steven Farris, chairman and chief executive officer at
Apache. "We currently operate 45 rigs in our Permian Region, where
second-quarter production was up 18 percent from a year ago, averaging 123,000
barrels of oil equivalent (Boe) per day. In our Central Region, we have ramped
up to 35 rigs, and production was up 65 percent from a year ago, averaging
91,000 Boe per day."

Production and operating highlights

Highlights from the three-month period ending June 30, 2013, and more recent
drilling include:

  oNorth American onshore liquids production increased to 175,000 barrels per
    day, up 42 percent compared with the same period a year ago.
  oIn the Permian Basin, production from our Barnhart area has grown
    substantially, increasing 32 percent from first-quarter 2013 to 4,700
    barrels of oil and 13.5 million cubic feet (MMcf) of gas per day. We are
    currently running six horizontal rigs in the play targeting Upper and
    Middle Wolfcamp zones.
  oIn the Central Region, three Canyon Wash wells drilled last month are
    testing at a combined rate of more than 4,000 barrels of oil per day from
    vertical penetrations. The Bivins LIT 115-7 is testing naturally at
    approximately 885 barrels of oil and 885 thousand cubic feet (Mcf) of
    natural gas per day. The well is scheduled to be fracture-stimulated later
    this month. The Bivins LIT 3-3 and the Boys Ranch 116-5 are flowing back
    after fracture stimulation at 1,467 barrels of oil and 1.3 MMcf of gas and
    1,950 barrels of oil and 1.6 MMcf of gas per day, respectively. Over the
    past two years Apache has built an approximate 100,000 net acreage
    position in the play.
  oIn its international regions, Apache announced today seven new oil and gas
    discoveries in Egypt, located in four geologic basins and six different
    concessions. In late July, a third production well came online at the
    Bacchus development in the North Sea with flow rates of 9,400 barrels of
    oil per day. Gross production from the Bacchus field, where Apache has a
    50 percent working interest, has reached 17,600 barrels of oil per day. A
    copy of the news releases reporting these results can be accessed at
    www.apachecorp.com.

Apache's second-quarter 2013 operations supplement includes drilling,
production and other updates for each of its 10 regions. The full document can
be accessed here www.apachecorp.com/financialdata.

Oil and gas prices

Apache's mix of hydrocarbon production during the second-quarter 2013 included
approximately 45 percent crude oil and 9 percent natural gas liquids. Due to
the premium prices received for crude oil versus natural gas, liquids
contributed 81 percent of the company's revenue during the period.

Worldwide, Apache received an average price of $97.93 per barrel of oil during
the second quarter, compared with $97.66 per barrel in the same period of the
prior year. Apache received an average price of $3.87 per Mcf of natural gas,
up 10 percent from $3.51 per Mcf in the prior-year period.

Portfolio update

"In addition to Apache's operating achievements, we also made significant
progress in our portfolio rebalancing plans announced in May," Farris said.
"In July, we announced an agreement to sell our Gulf of Mexico Shelf
properties to Fieldwood Energy LLC, an affiliate of Riverstone Holdings, for
$3.75 billion and Fieldwood's assumption of all asset retirement obligations
for these properties, estimated at a discounted value of $1.5 billion. This
remains on target to close at the end of September.

"At the end of this portfolio transitioning process, we expect Apache to have
an improved asset mix that will drive more predictable production growth and
strong returns, and create additional shareholder value for years to come,"
Farris said.

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 copies of all press releases on its website,
www.apachecorp.com.

* Adjusted earnings and cash from operations before changes in operating
assets and liabilities 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/financialinfo.

Conference call

Apache will conduct a conference call to discuss its results and review its
portfolio at 1 p.m. Central time on Thursday, Aug. 1. The call will be webcast
on Apache's website, www.apachecorp.com. A replay of the webcast will be
archived on Apache's website and available for delayed playback by telephone
for one week beginning at approximately 4 p.m. Central time on Aug. 1. To
access the telephone playback, dial 855-859-2056 or 404-537-3406 for
international calls. The conference access code is 84102019.

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 Fieldwood 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.



APACHE CORPORATION
STATEMENT OF CONSOLIDATED OPERATIONS
(In millions, except per share data)
                                       For the Quarter    For the Six Months
                                       Ended June 30,      Ended June 30,
                                       2013      2012      2013       2012
REVENUES AND OTHER:
   Oil revenues                        $ 3,196   $ 3,092   $ 6,451    $ 6,604
   Gas revenues                        769       740       1,504      1,551
   NGL revenues                        154       124       310        258
   Oil and gas production revenues     4,119     3,956     8,265      8,413
   Derivative instrument gains         247       -         147        -
   (losses), net
   Other                              17        16        47         95
                                       4,383     3,972     8,459      8,508
COSTS AND EXPENSES:
   Depreciation, depletion and
   amortization
   Oil and gas property and equipment
    Recurring                       1,311     1,194     2,576      2,329
    Additional                      -         648       65         1,169
   Other assets                        93        90        198        174
   Asset retirement obligation         65        57        130        112
   accretion
   Lease operating expenses            829       704       1,600      1,377
   Gathering and transportation       80        72        154        149
   Taxes other than income             183       203       425        460
   General and administrative          133       132       249        260
   Merger, acquisitions & transition   -         16        -          22
   Financing costs, net                51        45        104        85
                                       2,745     3,161     5,501      6,137
INCOME BEFORE INCOME TAXES             1,638     811       2,958      2,371
   Current income tax provision       284       460       781        1,185
   Deferred income tax provision       319       (5)       425        33
   (benefit)
NET INCOME                            1,035     356       1,752      1,153
   Preferred stock dividends           19        19        38         38
INCOME ATTRIBUTABLE TO COMMON STOCK    $ 1,016   $  337  $ 1,714    $ 1,115
NET INCOME PER COMMON SHARE:
   Basic                               $  2.59  $  0.87  $  4.37   $  2.88
   Diluted                            $  2.54  $  0.86  $  4.30   $  2.86
WEIGHTED-AVERAGE NUMBER OF
COMMONSHARES OUTSTANDING:
   Basic                               392       389       392        387
   Diluted                             408       390       408        403
DIVIDENDS DECLARED PER COMMON SHARE    $  0.20  $  0.17  $  0.40   $  0.34







APACHE CORPORATION
SUMMARY OF CAPITAL COSTS INCURRED
(In millions)
                               For the Quarter            For the Six Months
                               Ended June 30,              Ended June 30,
                               2013         2012           2013       2012
CAPITAL EXPENDITURES (1):
 Exploration & Development
 Costs
   United States               $  1,413    $         $ 2,682    $ 2,186
                                            1,392
   Canada                      89           97             347        295
     North America             1,502        1,489          3,029      2,481
   Egypt                       288          260            550        510
   Australia                   402          175            627        253
   North Sea                   253          224            430        420
   Argentina                   52           73             85         157
   New Ventures -              20           12             25         33
   International
     International             1,015        744            1,717      1,373
     Worldwide Exploration &   $  2,517    $         $ 4,746    $ 3,854
     Development Costs                      2,233
 Gathering, Transmission and
 Processing Facilities
   United States               $        $        $       $   
                               32             32        50         44
   Canada                      26           42             56         86
   Egypt                       15           20             34         37
   Australia                   153          77             333        249
   Argentina                   2            5              4          9
     Total Gathering,                       $      
     Transmission and          $    228   176          $  477   $  425
     Processing
 Capitalized Interest          $        $        $  183   $  151
                               90             85
 Capital Expenditures,         $   2,835  $         $ 5,406    $ 4,430
 excluding Acquisitions                     2,494
 Acquisitions                  $       $         $  310   $ 3,362
                               -           3,302
 (1) Accrual basis
APACHE CORPORATION
SUMMARY BALANCE SHEET INFORMATION
(In millions)
                               June 30,     December 31,
                               2013         2012
 Cash and Cash Equivalents     $    184  $      
                                             160
 Other Current Assets         4,574        4,802
 Property and Equipment, net   55,821       53,280
 Goodwill                      1,369        1,289
 Other Assets                  1,402        1,206
 Total Assets                  $ 63,350     $    
                                            60,737
 Short-Term Debt               $    478  $      
                                             990
 Other Current Liabilities     4,680        4,546
 Long-Term Debt                12,297       11,355
 Deferred Credits and Other    13,174       12,515
 Noncurrent Liabilities
 Shareholders' Equity          32,721       31,331
 Total Liabilities and         $ 63,350     $    
 Shareholders' Equity                       60,737
 Common shares outstanding at  392          392
 end of period







APACHE CORPORATION
PRODUCTION INFORMATION
                                    For the Quarter      For the Six Months
                                    Ended June 30,        Ended June 30,
                                    2013       2012       2013       2012
 OIL VOLUME - Barrels per day
      Central                       21,950     11,985     21,242     9,234
      Permian                       68,811     58,391     68,358     57,436
      GOM Deepwater                 8,223      6,237      7,732      6,019
      GOM Shelf                     47,721     41,610     45,684     44,097
      GC Onshore                    10,593     9,455      10,287     10,017
            United States           157,298    127,678    153,303    126,803
      Canada                        18,573     15,277     17,878     15,429
            North America           175,871    142,955    171,181    142,232
      Egypt                         88,002     98,922     89,649     99,206
      Australia                     21,810     30,497     20,911     30,447
      North Sea                     63,667     65,996     66,051     65,971
      Argentina                     9,365      9,583      9,331      9,608
            International           182,844    204,998    185,942    205,232
                     Total         358,715    347,953    357,123    347,464
 NATURAL GAS VOLUME - Mcf per day
      Central                       275,507    235,308    276,262    200,585
      Permian                       190,455    178,068    188,097    179,161
      GOM Deepwater                 24,957     47,782     28,030     47,389
      GOM Shelf                     262,318    301,503    258,383    316,822
      GC Onshore                    107,424    81,752     106,423    86,996
            United States           860,661    844,413    857,195    830,953
      Canada                        520,797    612,064    519,991    624,145
            North America           1,381,458  1,456,477  1,377,186  1,455,098
      Egypt                         357,291    358,985    361,428    367,526
      Australia                     212,022    211,524    213,202    217,930
      North Sea                     48,411     64,722     51,704     65,894
      Argentina                     184,528    224,289    186,383    217,741
            International           802,252    859,520    812,717    869,091
                     Total^        2,183,710  2,315,997  2,189,903  2,324,189
 NGL VOLUME - Barrels per day
      Central                       23,021     3,962      21,279     3,738
      Permian                       22,692     16,405     21,644     14,527
      GOM Deepwater                 1,162      1,474      1,025      865
      GOM Shelf                     7,641      5,762      6,824      4,678
      GC Onshore                    2,502      2,062      2,408      2,183
            United States           57,018     29,665     53,180     25,991
      Canada                        6,686      5,844      6,675      6,078
            North America           63,704     35,509     59,855     32,069
      North Sea                     1,201      1,957      1,346      1,962
      Argentina                     2,239      3,067      2,529      3,030
            International           3,440      5,024      3,875      4,992
                     Total          67,144     40,533     63,730     37,061
 BOE per day
      Central                       90,888     55,165     88,565     46,403
      Permian                       123,246    104,475    121,351    101,824
      GOM Deepwater                 13,545     15,675     13,428     14,782
      GOM Shelf                     99,082     97,623     95,573     101,579
      GC Onshore                    30,998     25,142     30,432     26,699
            United States           357,759    298,080    349,349    291,287
      Canada                        112,059    123,131    111,218    125,531
            North America           469,818    421,211    460,567    416,818
      Egypt                         147,551    158,752    149,887    160,460
      Australia                     57,147     65,751     56,444     66,769
      North Sea                     72,936     78,741     76,015     78,915
      Argentina                     42,359     50,031     42,924     48,928
            International           319,993    353,275    325,270    355,072
                     Total^        789,811    774,486    785,837    771,890





APACHE CORPORATION
PRICE INFORMATION
                                      For the Quarter     For the Six Months
                                      Ended June 30,       Ended June 30,
                                      2013       2012      2013       2012
 AVERAGE OIL PRICE PER BARREL
     Central                          $ 89.18    $ 88.14   $ 88.69    $ 91.88
     Permian                          92.08      86.71     87.49      92.44
     GOM Deepwater                    105.54     105.82    107.83     108.23
     GOM Shelf                        106.95     109.21    109.19     111.76
     GC Onshore                       106.22     108.40    108.54     111.06
           United States ^(1)         97.14      94.37     95.84      98.20
     Canada                           87.38      82.35     84.97      87.46
           North America ^(1)         96.11      93.08     94.70      97.03
     Egypt^(1)                        99.36      98.73     105.25     111.18
     Australia^(1)                    100.79     109.46    106.29     116.20
     North Sea^(1)                    102.95     104.16    106.85     108.67
     Argentina                        77.74      72.69     76.56      77.88
           International ^(1)         99.67      100.86    104.50     109.56
                   Total^(1)          97.93      97.66     99.80      104.43
 AVERAGE NATURAL GAS PRICE PER MCF
     Central                          $  3.91   $  2.73  $  3.82   $  2.89
     Permian                          3.86       2.79      3.81       3.26
     GOM Deepwater                    3.14       2.34      3.28       2.65
     GOM Shelf                        4.18       2.47      3.87       2.84
     GC Onshore                       4.27       2.31      3.91       2.57
           United States ^(1)         4.07       3.33      3.92       3.63
     Canada ^(1)                      3.52       2.94      3.37       3.18
           North America ^(1)         3.86       3.17      3.71       3.44
     Egypt                            3.00       3.75      2.97       3.77
     Australia                        4.70       4.41      4.82       4.29
     North Sea                        10.86      9.42      10.41      8.68
     Argentina                        2.79       2.76      2.99       2.87
           International              3.87       4.08      3.93       4.05
                   Total ^(1)         3.87       3.51      3.79       3.67
 AVERAGE NGL PRICE PER BARREL
     Central                          $ 21.69    $ 26.45   $ 23.90    $ 31.63
     Permian                          25.53      34.36     25.61      38.90
     GOM Deepwater                    31.26      35.73     32.73      36.14
     GOM Shelf                        27.21      31.02     27.93      35.59
     GC Onshore                       28.80      38.28     31.14      42.97
           United States              24.46      32.99     25.61      37.51
     Canada                           24.60      32.07     28.35      37.03
           North America              24.48      32.84     25.92      37.42
     North Sea                        70.39      69.23     70.81      76.69
     Argentina                        20.94      21.09     26.12      23.61
           International              38.19      39.84     41.65      44.47
                   Total              25.18      33.71     26.87      38.37
     ^(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
Ÿ•    trends and performance relative to other oil and gas producing
      companies.
      Management believes this presentation may be useful to investors who
Ÿ•    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
•Ÿ    are frequently excluded by analysts when evaluating the operating trends
      and comparability of the company's results.
                               For the Quarter         For the Six Months
                               Ended June 30,           Ended June 30,
                               2013         2012        2013         2012
Income Attributable to Common  $ 1,016      $  337    $ 1,714      $ 1,115
Stock (GAAP)
Adjustments:
      Deferred tax adjustments 7            -           46           -
      Oil & gas property       -            480         42           870
      write-downs, net of tax
      Merger, acquisitions &   -            10          -            13
      transition, net of tax
      Unrealized foreign
      currency fluctuation     (66)         (6)         (70)         1
      impact on deferred tax
      expense
      Commodity derivative
      mark-to-market, net of   (156)        -           (125)        -
      tax
Adjusted Earnings (Non-GAAP)  $  801     $  821    $ 1,607      $ 1,999
Net Income per Common Share -  $  2.54     $  0.86    $  4.30     $  2.86
Diluted (GAAP)
Adjustments:
      Deferred tax adjustments 0.01         -           0.11         -
      Oil & gas property       -            1.19        0.10         2.16
      write-downs, net of tax
      Merger, acquisitions &   -            0.03        -            0.03
      transition, net of tax
      Unrealized foreign
      currency fluctuation     (0.16)       (0.01)      (0.17)       0.01
      impact on deferred tax
      expense
      Commodity derivative
      mark-to-market, net of   (0.38)       -           (0.31)       -
      tax
Adjusted Earnings Per Share -  $  2.01     $  2.07    $  4.03     $  5.06
Diluted (Non-GAAP)
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 Six Months
                               Ended June 30,           Ended June 30,
                               2013         2012        2013         2012
Net cash provided by operating $ 2,759      $ 2,792     $ 5,380      $ 4,799
activities
Changes in operating assets    (161)        (414)       (424)        227
and liabilities
Cash from operations before
changes in operating assets    $ 2,598      $ 2,378     $ 4,956      $ 5,026
and liabilities

APA-F





SOURCE Apache Corporation

Website: http://www.apachecorp.com
Contact: Media: Patrick Cassidy, (713) 296-6100 or John Roper, (281) 302-2646,
or Bill Mintz, (713) 296-7276, or Bob Dye, (713) 296-6662; or Investors: Brady
Parish, Castlen Kennedy, Christopher Cortez, or Alicia Reis, (281) 302-2286
 
Press spacebar to pause and continue. Press esc to stop.