Apache reports record North America onshore liquids production for first-quarter 2014 with 21 percent year-over-year growth - Total North America onshore liquids volumes achieves record of 198,500 barrels per day - Worldwide production averages 640,000 barrels of oil equivalent (boe) per day; 672,000 boe per day including discontinued operations - Earnings from continuing operations of $1.90 per diluted share/$753 million; adjusted earnings of $1.78 per share/$707 million* - Cash flow from operating activities of $2.3 billion; $2.2 billion from continuing operations before changes in working capital* - Repurchased an additional 5.9 million shares for $485 million during first-quarter 2014 PR Newswire HOUSTON, May 8, 2014 HOUSTON, May 8, 2014 /PRNewswire/ --Apache Corporation (NYSE, Nasdaq: APA) today announced first-quarter 2014 earnings from continuing operations of $753 million or $1.90 per diluted common share and adjusted earnings,* which exclude certain items that impact the comparability of results, of $707 million or $1.78 per share. For the same period in the prior year, Apache reported earnings from continuing operations of $759 million or $1.91 per diluted common share and adjusted earnings of $797 million or $2.00 per share. Net cash provided by operating activities totaled approximately $2.3 billion in first-quarter 2014, compared with $2.6 billion in the prior year, with cash from continuing operations before changes in operating assets and liabilities* totaling $2.2 billion, compared with $2.3 billion in first-quarter 2013. Logo for the Apache Corporation "A record-setting performance by our Permian Region continues to drive strong overall results for the company," said G. Steven Farris, chairman, chief executive officer and president of Apache. "We remained the most active driller in onshore North America, operating an average of 82 rigs during the quarter." Apache's onshore North American liquids production increased 21 percent in first-quarter 2014 compared with the same period a year ago. The first-quarter 2014 average of 198,500 barrels per day for North American onshore liquids was up 6 percent compared with the fourth-quarter 2013. "We continued to strengthen our portfolio and build momentum toward a strong second half of 2014," Farris said. "Apache intensified its focus on North America liquids production by completing the sale of our Argentina operations and selected conventional natural gas properties in Western Canada. "We are currently testing new plays and completion ideas along the Gulf Coast and are encouraged by early results in Canada where a focus on liquids-rich plays contributed to a 10 percent increase in crude oil and natural gas liquids (NGLs) compared with the preceding quarter," Farris said. "Internationally, we are on track for first oil from significant development projects offshore Australia later this year at the Balnaves and Coniston fields, and we announced two new discoveries at the Matruh and Shushan basins in Egypt's Western Desert." Apache also returned additional capital to shareholders, purchasing 5.9 million shares of Apache common stock on the open market from January through March 2014. First-quarter production and operating highlights Highlights from first-quarter drilling include: oTotal worldwide net daily production of oil, natural gas and NGLs averaged 640,000 boe per day. Including discontinued operations in Argentina, daily production averaged 672,000 boe per day. Liquids production comprised 58 percent of the total from continuing operations, up from 57 percent for the fourth-quarter 2013. oThe Permian and Central regions increased liquids production 31,000 barrels per day over the prior-year period. Total production from the two regions averaged 239,000 boe per day. oThe Permian Region achieved record production averaging 150,000 boe per day, up 25 percent from the prior-year period. The region averaged 38 rigs in operation during the quarter and spud 202 gross wells (80 horizontals). Oil and gas prices Apache's mix of hydrocarbon production during the first-quarter 2014 included approximately 48 percent crude oil and 10 percent NGLs. Crude oil and NGLs contributed 82 percent of the company's revenue during the period. Worldwide, Apache received an average price of $101.03 per barrel of crude oil during the first quarter compared with $102.42 per barrel in the prior-year period. Apache received an average price of $4.46 per thousand cubic feet (Mcf) of natural gas, compared with $3.77 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 and Australia. Apache posts announcements, operational updates, investor information and copies of all press releases on its website, www.apachecorp.com, and on its Media and Investor Center mobile application, which is available for free download from the Apple App Store and the Google Play Store. * Adjusted earnings, cash from continuing operations before changes in operating assets and liabilities, and adjusted effective tax rate 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 Thursday, May 8. 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. Central time May 8. To access the telephone playback, dial 855-859-2056 or 404-537-3406 for international calls. The conference access code is 30665579. 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. 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 2013 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 Ended March 31, 2014 2013 REVENUES AND OTHER: Oil revenues $ 2,815 $ 3,192 Gas revenues 646 681 NGL revenues 186 148 Oil and gas production revenues 3,647 4,021 Derivative instrument gains (losses) (20) (100) Other 48 25 3,675 3,946 COSTS AND EXPENSES: Depreciation, depletion and amortization Oil and gas property and equipment Recurring 1,109 1,210 Other assets 97 102 Asset retirement obligation accretion 44 63 Lease operating expenses 597 722 Gathering and transportation 70 73 Taxes other than income 181 229 General and administrative 119 112 Acquisitions, divestitures & transition 2 - Financing costs, net 27 55 2,246 2,566 INCOME BEFORE INCOME TAXES 1,429 1,380 Current income tax provision 416 497 Deferred income tax provision 162 105 INCOME FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING 851 778 INTEREST Loss from discontinued operations, net of tax (517) (61) INCOME INCLUDING NONCONTROLLING INTEREST 334 717 Net income attributable to noncontrolling interest 98 - Preferred stock dividends - 19 NET INCOME ATTRIBUTABLE TO COMMON STOCK $ 236 $ 698 NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS Net income from continuing operations attributable to $ 753 $ 759 common shareholders Net income (loss) from discontinued operations (517) (61) Net income attributable to common shareholders $ 236 $ 698 BASIC NET INCOME (LOSS) PER COMMON SHARE: Basic net income from continuing operations per share $ 1.92 $ 1.94 Basic net loss from discontinued operations per share (1.32) (0.16) Basic net income per share $ 0.60 $ 1.78 DILUTED NET INCOME (LOSS) PER COMMON SHARE: Diluted net income from continuing operations per share $ 1.90 $ 1.91 Diluted net loss from discontinued operations per share (1.30) (0.15) Diluted net income per share $ 0.60 $ 1.76 WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: Basic 394 392 Diluted 396 408 DIVIDENDS DECLARED PER COMMON SHARE $ 0.25 $ 0.20 APACHE CORPORATION SUMMARY OF CAPITAL COSTS INCURRED (In millions) For the Quarter Ended March 31, 2014 2013 CAPITAL EXPENDITURES: Exploration & Development Costs United States $ 1,349 $ 1,269 Canada 269 258 North America 1,618 1,527 Egypt ^(1) 320 262 Australia 261 225 North Sea 227 177 Argentina 12 33 New Ventures - International 1 5 International ^(1) 821 702 Worldwide Exploration & Development $ 2,439 $ 2,229 Costs ^(1) Gathering, Transmission and Processing Facilities United States $ 45 $ 18 Canada 102 30 Egypt ^(1) 15 19 Australia 168 180 Argentina 1 2 North Sea 1 - Total Gathering, Transmission and $ 332 $ 249 Processing ^(1) Asset Retirement Costs $ 28 $ 134 Capitalized Interest ^(2) $ 98 $ 93 Capital Expenditures, excluding Acquisitions $ 2,897 $ 2,705 ^(1) Asset Retirement Costs - Acquired $ - $ 53 Acquisitions $ 2 $ 310 ^(1) Includes capital costs attributable to noncontrolling interest in Egypt ^(2) Capitalized interest in both quarters includes Argentina discontinued operations of $3M APACHE CORPORATION SUMMARY BALANCE SHEET INFORMATION (In millions) March 31, December 31, 2014 2013 Cash and Cash Equivalents $ 1,643 $ 1,906 Other Current Assets 3,820 4,460 Property and Equipment, net 52,752 52,421 Goodwill 1,369 1,369 Other Assets 1,537 1,481 Total Assets $ 61,121 $ 61,637 Short-Term Debt $ - $ 53 Other Current Liabilities 4,356 4,647 Long-Term Debt 9,673 9,672 Deferred Credits and Other Noncurrent 11,915 11,872 Liabilities Apache Shareholders' Equity 33,082 33,396 Noncontrolling interest 2,095 1,997 Total Liabilities and Shareholders' Equity $ 61,121 $ 61,637 Common shares outstanding at end of period 390 396 APACHE CORPORATION PRODUCTION INFORMATION For the Quarter Ended March 31, 2014 2013 OIL VOLUME - Barrels per day Central 21,686 20,526 Permian 88,327 67,900 Gulf of Mexico 6,266 7,235 Gulf Coast 10,975 9,977 GOM Shelf 697 43,625 United States 127,951 149,263 Canada 17,589 17,176 North America 145,540 166,439 Egypt ^(1) 88,093 91,315 Australia 16,825 20,001 North Sea 59,092 68,462 International ^(1) 164,010 179,778 Total ^(1) 309,550 346,217 NATURAL GAS VOLUME - Mcf per day Central 260,298 277,025 Permian 215,860 185,713 Gulf of Mexico 16,123 31,136 Gulf Coast 99,242 105,412 GOM Shelf 1,162 254,405 United States 592,685 853,691 Canada 377,712 519,175 North America 970,397 1,372,866 Egypt ^(1) 377,357 365,612 Australia 215,792 214,395 North Sea 45,071 55,032 International ^(1) 638,220 635,039 Total ^(1) 1,608,617 2,007,905 NGL VOLUME - Barrels per day Central 24,455 19,517 Permian 25,260 20,583 Gulf of Mexico 828 887 Gulf Coast 2,423 2,313 GOM Shelf 92 5,999 United States 53,058 49,299 Canada 7,769 6,663 North America 60,827 55,962 Egypt ^(1) 233 - North Sea 1,091 1,494 International ^(1) 1,324 1,494 Total ^(1) 62,151 57,456 BOE per day Central 89,524 86,215 Permian 149,564 119,435 Gulf of Mexico 9,781 13,311 Gulf Coast 29,939 29,859 GOM Shelf 982 92,024 United States 279,790 340,844 Canada 88,310 110,368 North America 368,100 451,212 Egypt ^(1) 151,219 152,250 Australia 52,790 55,734 North Sea 67,695 79,128 International ^(1) 271,704 287,112 Total ^(1) 639,804 738,324 Total excluding noncontrolling 589,860 738,324 interest ^(1) Includes production volume per day attributable to noncontrolling interest in Egypt Oil (b/d) 29,066 - Gas (mcf/d) 124,799 - NGL (b/d) 78 - Discontinued Operations - Argentina Oil (b/d) 6,885 9,297 Gas (mcf/d) 141,352 188,259 NGL (b/d) 1,287 2,822 BOE/d 31,731 43,495 APACHE CORPORATION PRICE INFORMATION For the Quarter Ended March 31, 2014 2013 AVERAGE OIL PRICE PER BARREL Central $ 93.72 $ 88.15 Permian 93.76 82.78 Gulf of Mexico 101.44 110.47 Gulf Coast 101.87 111.03 GOM Shelf NM 111.67 United States ^(1) 94.84 94.45 Canada 88.19 82.33 North America ^(1) 94.03 93.20 Egypt 106.70 110.99 Australia 112.26 112.35 North Sea 106.60 110.53 International 107.24 110.97 Total ^(1) 101.03 102.42 AVERAGE NATURAL GAS PRICE PER MCF Central $ 5.20 $ 3.73 Permian 4.78 3.77 Gulf of Mexico 5.23 3.40 Gulf Coast 4.93 3.55 GOM Shelf NM 3.54 United States ^(1) 4.98 3.75 Canada 4.38 3.23 North America ^(1) 4.75 3.56 Egypt 3.02 2.95 Australia 4.42 4.94 North Sea 10.69 10.00 International 4.03 4.23 Total ^(1) 4.46 3.77 AVERAGE NGL PRICE PER BARREL Central $ 30.39 $ 26.54 Permian 31.46 25.71 Gulf of Mexico 32.00 34.68 Gulf Coast 35.90 33.69 GOM Shelf NM 28.87 United States 30.81 26.96 Canada 42.09 32.15 North America 32.25 27.58 Egypt 64.34 - North Sea 79.84 71.16 International 77.11 71.16 Total 33.20 28.71 Discontinued Operations - Argentina Oil price ($/Bbl) $ 72.70 $ 75.36 Gas price ($/Mcf) 3.04 3.18 NGL price ($/Bbl) 24.57 30.28 ^(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 Ended March 31, 2014 2013 Income Attributable to Common Stock (GAAP) $ $ 236 698 Adjustments: Argentina discontinued operations, net of tax $ $ 517 61 Unrealized foreign currency fluctuation impact 7 (4) on deferred tax expense Acquisitions, divestitures & transition costs 1 - Deferred tax adjustments (5) 11 Commodity derivative mark-to-market, net of (49) 31 tax Adjusted Earnings (Non-GAAP) $ $ 707 797 Net Income per Common Share - Diluted (GAAP) $ $ 0.60 1.76 Adjustments: Argentina discontinued operations, net of tax 1.30 0.15 Unrealized foreign currency fluctuation impact 0.02 (0.01) on deferred tax expense Deferred tax adjustments (0.01) 0.03 Commodity derivative mark-to-market, net of (0.13) 0.07 tax Adjusted Earnings Per Share - Diluted $ $ (Non-GAAP) 1.78 2.00 Total income tax provision (GAAP) $ $ 578 602 Tax impact on commodity derivative (27) 17 mark-to-market Foreign currency fluctuation impact on (7) 4 deferred tax expense Deferred tax adjustments 5 (11) Tax impact on acquisitions, divestitures & 1 - transition costs Total income tax provision, net of adjustments $ $ 550 612 Effective Rate excluding Adjustments (Non-GAAP) 40.6% 42.9% APACHE CORPORATION NON-GAAP FINANCIAL MEASURES (In millions, except per share data) Reconciliation of net cash provided by operating activities to cash from continuing 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 Ended March 31, 2014 2013 Net cash provided by operating activities (GAAP) $ $ 2,293 2,621 Less: Discontinued operations (82) (64) Net cash provided by operating activities excluding $ $ discontinued operations 2,211 2,557 Changes in operating assets and liabilities 11 (262) Cash from continuing operations before changes in $ $ operating assets and liabilities 2,222 2,295 APA-F Logo - http://photos.prnewswire.com/prnh/20140116/DA47435LOGO SOURCE Apache Corporation Website: http://www.apachecorp.com Contact: Media: (713) 296-6100, Patrick Cassidy; or (713) 296-7276, Bill Mintz; or (713) 296-6662, Bob Dye; or Investor: (281) 302-2286, Castlen Kennedy, Christopher Cortez, Alicia Reis, Website: www.apachecorp.com
Apache reports record North America onshore liquids production for first-quarter 2014 with 21 percent year-over-year growth
Press spacebar to pause and continue. Press esc to stop.