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



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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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