Apache reports record North America onshore liquids production for first-quarter 2014 with 21 percent year-over-year growth

      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 Ÿ•        operational 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 Ÿ•        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  
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