Apache Reports Higher Third-Quarter Earnings Driven By 35% Increase In Onshore North America Liquids Production

Apache Reports Higher Third-Quarter Earnings Driven By 35% Increase In Onshore
                       North America Liquids Production

- GAAP earnings of $0.75 per share/$300 million; adjusted earnings* of $2.32
per share/$932 million

- $2.0 billion of cash flow from operations; $2.7 billion before changes in
working capital*

- $700 million in shares repurchased to date under stock buyback program

PR Newswire

HOUSTON, Nov. 7, 2013

HOUSTON, Nov. 7, 2013 /PRNewswire/ --Apache Corporation (NYSE, Nasdaq: APA)
today announced third-quarter 2013 earnings of $300 million or $0.75 per
diluted common share and adjusted earnings,* which exclude certain items that
impact the comparability of results, of $932 million or $2.32 per share. For
the same period in the prior year, Apache reported earnings of $161 million or
$0.41 per diluted common share and adjusted earnings of $861 million or $2.16
per share. Net cash provided by operating activities came to approximately $2
billion, with cash from operations before changes in operating assets and
liabilities* totaling $2.7 billion, up from $2.4 billion in the year-ago
period.

"The strength of our financial performance this quarter is a testament to the
effectiveness of our strategy to rebalance our portfolio and drive returns by
achieving the right mix of predictable production growth from our North
American onshore assets combined with the substantial free cash flow
generation from our international operations," said G. Steven Farris, chairman
and chief executive officer at Apache. "Apache's focused drilling program in
North America is yielding significant production growth. Our Permian and
Central regions are the main drivers of this higher production, adding nearly
13,000 barrels per day of oil and natural gas liquids from the second quarter.
These two regions represented 35 percent of the company's total worldwide
liquids production, up from 27 percent a year ago, contributing 149,000
barrels per day during the third quarter. Going forward, our international
regions will be the primary source of excess cash flow to fund our next growth
cycle.

"We also made significant progress rebalancing our portfolio to provide more
predictable and consistent growth. During the quarter we closed on
transactions in the Gulf of Mexico Shelf and Canada, and announced a
significant partnership with Sinopec in Egypt, which we expect to close by the
end of this year," Farris said. "As previously announced, sale proceeds are
being used to reduce our debt and buyback shares. We've already repurchased
nearly 8 million shares of Apache common stock, and we're on track to pay down
$2 billion in debt by yearend."

Production and operating highlights

Highlights from the third quarter and more recent drilling include:

  oTotal worldwide net daily production of oil, natural gas, and natural gas
    liquids (NGLs) averaged 784,000 barrels of oil equivalent (boe) per day,
    with liquids production comprising 54 percent of the total.
  oThe Permian Region achieved record production of 132,000 boe per day, up 7
    percent from the preceding period and up 18 percent from a year ago. In
    the region's Barnhart area, six rigs were active throughout the quarter
    drilling 20 Middle and Upper Wolfcamp Shale laterals. Apache holds 345,000
    net acres prospective for Wolfcamp Shale development with 971 identified
    locations. During October, the region achieved a milestone with half of
    its operated rigs drilling horizontal wells.
  oApache's Central Region increased production to 95,000 boe per day, up 4
    percent from the preceding quarter and 31 percent from the third quarter
    of 2012. Liquids production increased to 49,000 barrels per day, up 94
    percent from the same period in the prior year, and now comprises 52
    percent of the region's production. Drilling is concentrated in the
    stacked pays of the Anadarko Basin targeting formations such as the
    Granite Wash and Tonkawa, where Apache has identified thousands of
    locations on its prolific acreage position.
  oIn its international regions, Apache commenced production from the Macedon
    development in Western Australia. This includes four offshore production
    wells, transmission lines and an onshore processing plant. Apache holds a
    28.57 percent working interest in Macedon, with gross sales ramped up to
    212 million cubic feet (MMcf) per day. In the North Sea, a second
    development well commenced production from the Tonto field, testing at an
    initial 24-hour rate of 8,300 barrels of oil per day. Apache holds a 100
    percent working interest in Tonto.

Apache's third-quarter 2013 operations supplement includes drilling,
production and other updates for each of its regions, and can be accessed at
www.apachecorp.com/financialdata.

Oil and gas prices

Apache's mix of hydrocarbon production during the third quarter 2013 included
approximately 46 percent crude oil and 9 percent natural gas liquids (NGLs).
Due to the premium prices received for crude oil and NGLs, these products
contributed 84 percent of the company's revenue during the period.

Worldwide, Apache received an average price of $107.50 per barrel of oil
during the third quarter, compared with $102.62 per barrel in the same period
the prior year. Apache received an average price of $3.49 per thousand cubic
feet (Mcf) of natural gas, compared with $3.76 per Mcf in the prior-year
period.

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 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/financialdata.

Conference call

Apache will conduct a conference call to discuss its results and review its
portfolio at 1 p.m. Central time on Thursday, Nov. 7. 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 Nov. 7. To
access the telephone playback, dial 855-859-2056 or 404-537-3406 for
international calls. The conference access code is 84102630.

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 Sinopec 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.

Website: www.apachecorp.com

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,
                                     2013       2012      2013        2012
REVENUES AND OTHER:
   Oil revenues                    $ 3,538    $ 3,220   $ 9,989     $ 9,824
   Gas revenues                    692        788       2,196       2,339
   NGL revenues                    179        133       489         391
  Oil and gas production revenues    4,409      4,141     12,674      12,554
  Derivative instrument gains        (422)      -         (275)       -
  (losses), net
  Other                             32         38        79          133
                                     4,019      4,179     12,478      12,687
COSTS AND EXPENSES:
   Depreciation, depletion and
  amortization
   Oil and gas property and
  equipment
   Recurring                    1,330      1,206     3,906       3,535
   Additional                   743        729       808         1,898
   Other assets                     99         94        297         268
  Asset retirement obligation        66         60        196         172
  accretion
  Lease operating expenses           819        801       2,419       2,178
  Gathering and transportation      83         86        237         235
  Taxes other than income            185        167       610         627
  General and administrative         127        124       376         384
  Merger, acquisitions & transition  -          7         -           29
  Financing costs, net               51         40        155         125
                                     3,503      3,314     9,004       9,451
INCOME BEFORE INCOME TAXES           516        865       3,474       3,236
  Current income tax provision      410        544       1,191       1,729
  Deferred income tax provision      (200)      141       225         174
  (benefit)
NET INCOME                          306        180       2,058       1,333
  Preferred stock dividends          6          19        44          57
INCOME ATTRIBUTABLE TO COMMON STOCK  $  300   $  161  $ 2,014     $ 1,276
NET INCOME PER COMMON SHARE:
  Basic                              $  0.75   $  0.41  $  5.11    $  3.29
  Diluted                           $  0.75   $  0.41  $  5.06    $  3.27
WEIGHTED-AVERAGE NUMBER OF COMMON
 SHARES OUTSTANDING:
  Basic                              399        391       394         388
  Diluted                            401        393       407         390
DIVIDENDS DECLARED PER COMMON SHARE  $  0.20   $  0.17  $  0.60    $  0.51



APACHE CORPORATION
SUMMARY OF CAPITAL COSTS INCURRED
(In millions)
                                For the Quarter          For the Nine Months
                                Ended September 30,       Ended September 30,
                                2013         2012         2013      2012
CAPITAL EXPENDITURES (1):
 Exploration & Development
 Costs
   United States                $  1,489    $   1,422  $ 4,171   $ 3,608
   Canada                       155          164          502       459
    North America               1,644        1,586        4,673     4,067
   Egypt                        263          299          813       809
   Australia                    284          265          911       518
   North Sea                    217          283          647       703
   Argentina                    60           65           145       222
   New Ventures -               3            51           28        84
   International
    International               827          963          2,544     2,336
    Worldwide Exploration &    $  2,471    $  2,549   $ 7,217   $ 6,403
    Development Costs
 Gathering, Transmission and
 Processing Facilities
   United States                $    70  $        $  120  $    57
                                             13
   Canada                       55           52           111       138
   Egypt                        23           (22)         57        15
   Australia                    201          89           534       338
   Argentina                    3            3            7         12
    Total Gathering,
    Transmission and            $   352   $   135   $  829  $  560
    Processing
 Capitalized Interest           $    93  $    90  $  276  $  241
 Capital Expenditures,          $  2,916    $  2,774    $ 8,322   $ 7,204
 excluding Acquisitions
 Acquisitions                   $        $    59  $  318  $ 3,421
                                8
 (1) Accrual basis

APACHE CORPORATION
SUMMARY BALANCE SHEET INFORMATION
(In millions)
                                              September 30,  December 31,
                                              2013           2012
 Cash and Cash Equivalents                    $ 1,251        $ 160
 Other Current Assets                         4,765          4,802
 Property and Equipment, net                  51,462         53,280
 Goodwill                                     1,369          1,289
 Other Assets                                 1,392          1,206
  Total Assets                              $ 60,239       $ 60,737
 Short-Term Debt                              $ 57           $ 990
 Other Current Liabilities                    4,466          4,546
 Long-Term Debt                               10,868         11,355
 Deferred Credits and Other Noncurrent        11,867         12,515
 Liabilities
 Shareholders' Equity                         32,981         31,331
  Total Liabilities and Shareholders'       $ 60,239       $ 60,737
 Equity
 Common shares outstanding at end of period   404            392



APACHE CORPORATION
PRODUCTION INFORMATION
                                  For the Quarter       For the Nine Months
                                  Ended September 30,   Ended September 30,
                                  2013       2012       2013       2012
OIL VOLUME - Barrels per day
      Central                     25,659     17,003     22,730     11,843
      Permian                     73,910     60,822     70,229     58,573
      GOM Deepwater               7,564      6,982      7,675      6,342
      GOM Shelf                   45,431     38,573     45,599     42,242
      GC Onshore                  11,126     9,621      10,570     9,884
           United States          163,690    133,001    156,803    128,884
      Canada                      18,573     15,075     18,112     15,311
           North America          182,263    148,076    174,915    144,195
      Egypt                       89,294     97,546     89,530     98,648
      Australia                   18,787     28,191     20,195     29,690
      North Sea                   57,861     57,296     63,291     63,058
      Argentina                   9,560      9,885      9,408      9,701
           International          175,502    192,918    182,424    201,097
                   Total          357,765    340,994    357,339    345,292
NATURAL GAS VOLUME - Mcf per day
      Central                     274,061    281,945    275,520    227,903
      Permian                     190,192    180,610    188,803    179,648
      GOM Deepwater               11,804     41,267     22,562     45,333
      GOM Shelf                   243,477    266,415    253,360    299,897
      GC Onshore                  110,889    93,196     107,928    89,078
           United States          830,423    863,433    848,173    841,859
      Canada                      529,402    604,442    523,163    617,530
           North America          1,359,825  1,467,875  1,371,336  1,459,389
      Egypt                       350,504    329,793    357,747    354,856
      Australia                   212,141    215,317    212,845    217,053
      North Sea                   46,971     54,478     50,108     62,061
      Argentina                   185,962    213,745    186,241    216,399
           International          795,578    813,333    806,941    850,369
                   Total ^        2,155,403  2,281,208  2,178,277  2,309,758
NGL VOLUME - Barrels per day
      Central                     23,437     8,305      22,006     5,271
      Permian                     26,057     20,739     23,131     16,613
      GOM Deepwater               566        1,483      871        1,073
      GOM Shelf                   5,234      6,663      6,288      5,345
      GC Onshore                  2,216      1,886      2,343      2,083
           United States          57,510     39,076     54,639     30,385
      Canada                      7,012      6,036      6,788      6,063
           North America          64,522     45,112     61,427     36,448
      North Sea                   1,097      1,470      1,263      1,797
      Argentina                   1,713      3,006      2,254      3,022
           International          2,810      4,476      3,517      4,819
                   Total          67,332     49,588     64,944     41,267
BOE per day
      Central                     94,773     72,298     90,657     55,097
      Permian                     131,665    111,663    124,826    105,127
      GOM Deepwater               10,098     15,343     12,306     14,971
      GOM Shelf                   91,245     89,639     94,114     97,570
      GC Onshore                  31,823     27,039     30,901     26,813
           United States          359,604    315,982    352,804    299,578
      Canada                      113,819    121,851    112,095    124,296
           North America          473,423    437,833    464,899    423,874
      Egypt                       147,711    152,512    149,154    157,791
      Australia                   54,144     64,078     55,669     65,866
      North Sea                   66,787     67,845     72,905     75,198
      Argentina                   42,266     48,515     42,702     48,790
           International          310,908    332,950    320,430    347,645
                   Total ^        784,331    770,783    785,329    771,519



APACHE CORPORATION
PRICE INFORMATION
                                   For the Quarter       For the Nine Months
                                   Ended September 30,    Ended September 30,
                                   2013         2012      2013        2012
 AVERAGE OIL PRICE PER BARREL
    Central                        $ 101.90     $ 85.54   $ 93.71     $ 88.82
    Permian                        104.52       87.49     93.53       90.71
    GOM Deepwater                  108.07       102.46    107.91      106.10
    GOM Shelf                      110.40       104.97    109.60      109.67
    GC Onshore                     110.06       104.02    109.08      108.76
          United States ^(1)       105.82       93.38     99.35       96.53
    Canada                         97.58        82.92     89.33       85.96
          North America ^(1)       104.98       92.32     98.31       95.41
    Egypt^(1)                      112.61       113.72    107.73      112.02
    Australia^(1)                  116.21       116.79    109.40      116.39
    North Sea^(1)                  109.33       108.44    107.61      108.60
    Argentina                      79.77        73.44     77.66       76.36
          International ^(1)       110.13       110.54    106.32      109.87
                 Total^(1)         107.50       102.62    102.40      103.83
 AVERAGE NATURAL GAS PRICE PER
MCF
    Central                        $   3.61  $  3.24  $  3.75    $  3.04
    Permian                        3.66         3.07      3.76        3.20
    GOM Deepwater                  3.35         3.18      3.29        2.82
    GOM Shelf                      3.71         2.90      3.82        2.86
    GC Onshore                     3.67         2.95      3.83        2.70
          United States ^(1)       3.75         3.63      3.86        3.63
    Canada ^(1)                    2.87         3.33      3.20        3.23
          North America ^(1)       3.41         3.51      3.61        3.46
    Egypt                          3.01         4.04      2.98        3.86
    Australia                      3.98         4.76      4.54        4.45
    North Sea                      10.29        8.65      10.37       8.67
    Argentina                      2.76         2.78      2.91        2.84
          International            3.64         4.21      3.84        4.10
                 Total ^(1)        3.49         3.76      3.69        3.70
 AVERAGE NGL PRICE PER BARREL
    Central                        $  25.61    $ 24.28   $ 24.51     $ 27.74
    Permian                        29.93        27.95     27.25       34.31
    GOM Deepwater                  31.68        30.24     32.50       33.40
    GOM Shelf                      30.52        31.10     28.66       33.71
    GC Onshore                     30.06        37.42     30.80       41.28
          United States            28.25        28.25     26.55       33.51
    Canada                         28.77        31.01     28.49       35.02
          North America            28.30        28.62     26.76       33.76
    North Sea                      69.77        65.45     70.51       73.60
    Argentina                      22.19        16.25     25.11       21.15
          International            40.77        32.41     41.41       40.71
                 Total             28.82        28.96     27.56       34.57
    ^(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:
• ŸManagement uses adjusted earnings to evaluate the company's operational
  trends and performance relative to other oil and gas producing companies.
  ŸManagement 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.
  ŸThe 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,
                                      2013        2012     2013       2012
Income Attributable to Common Stock   $ 300       $ 161    $ 2,014    $ 1,276
(GAAP)
Adjustments:
 Oil & gas property write-downs, net  478         539      520        1,409
 of tax
 Commodity derivative mark-to-market, 213         -        88         -
 net of tax
 Deferred tax adjustments             (31)        -        15         -
 U.K. decommissioning tax rate        -           118      -          118
 adjustment
 Merger, acquisitions & transition,   -           4        -          17
 net of tax
 Unrealized foreign currency
 fluctuation impact on deferred tax   (28)        39       (98)       40
 expense
Adjusted Earnings (Non-GAAP)          $ 932       $ 861    $ 2,539    $ 2,860
Net Income per Common Share - Diluted $ 0.75      $ 0.41   $ 5.06     $ 3.27
(GAAP)
Adjustments:
 Oil & gas property write-downs, net  1.18        1.33     1.28       3.49
 of tax
 Commodity derivative mark-to-market, 0.53        -        0.22       -
 net of tax
 Deferred tax adjustments             (0.07)      -        0.03       -
 U.K. decommissioning tax rate        -           0.30     -          0.30
 adjustment
 Merger, acquisitions & transition,   -           0.02     -          0.05
 net of tax
 Unrealized foreign currency
 fluctuation impact on deferred tax   (0.07)      0.10     (0.24)     0.11
 expense
Adjusted Earnings Per Share - Diluted $ 2.32      $ 2.16   $ 6.35     $ 7.22
(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 Nine Months
                                      Ended September 30,  Ended September 30,
                                      2013       2012      2013       2012
Net cash provided by operating        $ 1,978    $ 1,623   $ 7,358    $ 6,422
activities
Changes in operating assets and       743        793       319        1,020
liabilities
Cash from operations before changes
in
        operating assets and          $ 2,721    $ 2,416   $ 7,677    $ 7,442
        liabilities

APA-F

SOURCE Apache Corporation

Website: http://www.apachecorp.com
Contact: Media, Patrick Cassidy, (713) 296-6100, 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
 
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