Apache Energy Corp. Apache reports 34 percent growth in onshore North America liquids production in 2013 by 24hgold

Apache reports 34 percent growth in onshore North America liquids production in 2013

- Onshore North America liquids production increased 45,600 barrels per day in 2013
- 140 percent of 2013 production replaced through drilling
- 2014 quarterly dividend increased 25 percent to $0.25 per share
- Worldwide fourth-quarter production averaged 688,000 boe per day; 661,000 boe per day excluding noncontrolling interest
- Fourth-quarter GAAP earnings of 43 cents per diluted share/$174 million; adjusted earnings* of $1.57 per share/$631 million
- Fourth-quarter cash flow from operations of $2.5 billion; $2.1 billion before changes in working capital*
- 11.2 million shares repurchased for $1 billion during 2013

HOUSTON, Feb. 13, 2014 /PRNewswire/ --� Apache Corporation (NYSE, Nasdaq: APA) today announced full-year 2013 earnings of $2.2 billion or $5.50 per diluted common share and adjusted earnings,* which exclude certain items that impact the comparability of results, of $3.2 billion or $7.92 per share. In 2012, Apache reported earnings of $1.9 billion or $4.92 per diluted common share and adjusted earnings of $3.8 billion or $9.48 per share. Net cash provided by operating activities totaled approximately $9.8 billion in 2013, compared with $8.5 billion in the prior year, with cash from operations before changes in operating assets and liabilities* totaling $9.8 billion, compared with $10.3 billion in 2012.

(Logo:� http://photos.prnewswire.com/prnh/20140116/DA47435LOGO)

Apache also reported that onshore North American liquids production increased 34 percent in 2013 and the company replaced 140 percent of 2013 production through drilling.

"Our strong performance is driven by predictable liquids production growth from our North American onshore assets combined with large free cash flow generation from our international operations," said G. Steven Farris, chairman and chief executive officer at Apache. "We increased onshore North America liquids production by 45,600 barrels per day through drilling in 2013, and we replaced 140 percent of worldwide production through the drill bit.

"We made significant strides in focusing our portfolio during the year, exiting production on the Gulf of Mexico Shelf, streamlining our Canada position and establishing our partnership with Sinopec in Egypt," Farris said. "The proceeds of these transactions - which together total approximately $7 billion - have provided the company with additional financial flexibility. The sale of our Argentina operations announced yesterday continues our decisive strategic steps in 2013."

Fourth-quarter 2013 financial results

Apache reported fourth-quarter 2013 earnings of $174 million or 43 cents per share and adjusted earnings* of $631 million or $1.57 per share. For the same period in the prior year, Apache reported earnings of $649 million or $1.64 per diluted common share and adjusted earnings of $907 million or $2.27 per share. Net cash provided by operating activities totaled approximately $2.5 billion, up from $2.1 billion a year earlier, with cash from operations before changes in operating assets and liabilities* totaling $2.1 billion, compared with $2.8 billion in the year-ago period.

Fourth-quarter production and operating highlights

Highlights from fourth quarter drilling include:

Total worldwide net daily production of oil, natural gas, and natural gas liquids (NGLs) averaged 688,000 barrels of oil equivalent (boe) per day. Excluding the noncontrolling interest in Egypt operations, production totaled 661,000 boe per day. Liquids production comprised 55 percent of the total.
The Permian and Central regions increased liquids production 32,500 barrels per day over the prior-year period. Total production from the two regions - 227,000 boe per day - was 33 percent of Apache's total production.
The Permian Region achieved record production averaging 134,000 boe per day, up 13 percent from the prior-year period. The region averaged 43 rigs in operation during the quarter, spud 242 gross wells (83 horizontals) and completed 289 gross wells (235 net).
Apache's Central Region's production of 93,000 boe per day was 18 percent above the prior-year period. Liquids production was up 57 percent from the prior-year period. The region averaged 25 drilling rigs and drilled 66 gross (51 net) wells.

Year-end 2013 reserves

Worldwide estimated proved reserves totaled 2.65 billion boe at year-end 2013.� Excluding acquisitions, divestments and revisions, proved reserves increased 4 percent. Extensions and discoveries of 389 million boe were 140 percent of 2013 production.

The Permian Region replaced 323 percent of production through drilling and increased proved reserves by nearly 14 percent to 910 million barrels of oil equivalent (MMboe). The Central Region replaced 195 percent of production and increased proved reserves nearly 14 percent to 304 MMboe.

Impact of Gulf of Mexico Shelf divestiture

On Sept. 30, 2013, Apache completed the sale of its Gulf of Mexico Shelf operations and properties to Fieldwood Energy LLC, a portfolio company of Riverstone Holdings, for $3.75 billion and assumption of liabilities for future abandonment costs of the properties with an estimated discounted value of $1.5 billion. In addition to reducing production volumes, the divestiture affected the company's fourth-quarter 2013 financial results in these areas:

U.S. oil price realizations were impacted by the sale of Shelf production that sold at a premium to the West Texas Intermediate benchmark. Apache's realized oil price in the United States averaged $93.36 per barrel in the fourth quarter, down from $105.82 in the third quarter.
Apache's adjusted worldwide effective tax rate* increased to 44 percent as higher-rate international operations made up a larger portion of total income before taxes absent income from Shelf operations. In the third quarter, Apache's adjusted worldwide effective tax rate* was 42 percent.

Oil and gas prices

Apache's mix of hydrocarbon production during the fourth 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 83 percent of the company's revenue during the period.

Worldwide, Apache received an average price of $100.59 per barrel of crude oil during the fourth quarter compared with $98.93 per barrel in the prior-year period. Apache received an average price of $3.71 per thousand cubic feet (Mcf) of natural gas, compared with $4.14 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, cash from 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 on Thursday, Feb. 13. 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 on Feb. 13. To access the telephone playback, dial 855-859-2056 or 404-537-3406 for international calls. The conference access code is 30664028.

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 YPF 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 Year
		Ended December 31,		Ended December 31,
		2013	2012	2013	2012

REVENUES AND OTHER:
	� Oil revenues	$ � � 2,914	$ � � 3,386	$ � 12,903	$ � � 13,210
	� Gas revenues	633	854	2,829	3,193
	� NGL revenues	181	153	670	544
	Oil and gas production revenues	3,728	4,393	16,402	16,947
	Derivative instrument gains (losses), net	(124)	(79)	(399)	(79)
	Other�	(28)	77	51	210
		3,576	4,391	16,054	17,078

COSTS AND EXPENSES:
	Depreciation, depletion and amortization
	Oil and gas property and equipment
	� � � Recurring	1,208	1,277	5,114	4,812
	� � � Additional	368	28	1,176	1,926
	Other assets	113	103	410	371
	Asset retirement obligation accretion	47	60	243	232
	Lease operating expenses	637	790	3,056	2,968
	Gathering and transportation�	60	68	297	303
	Taxes other than income	222	235	832	862
	General and administrative	127	147	503	531
	Merger, acquisitions & transition	33	2	33	31
	Financing costs, net	19	40	174	165
		2,834	2,750	11,838	12,201

INCOME BEFORE INCOME TAXES		742	1,641	4,216	4,877
	Current income tax provision�	474	470	1,665	2,199
	Deferred income tax provision	38	503	263	677

NET INCOME INCLUDING NONCONROLLING INTEREST		230	668	2,288	2,001
	Preferred stock dividends	-	19	44	76
	Net income attributable to noncontrolling interest	56	-	56	-

INCOME ATTRIBUTABLE TO COMMON STOCK		$ � � � 174	$ � � � 649	$ � � 2,188	$ � � � 1,925

NET INCOME PER COMMON SHARE:
	Basic	$ � � � 0.44	$ � � � 1.66	$ � � � � 5.53	$ � � � � 4.95
	Diluted�	$ � � � 0.43	$ � � � 1.64	$ � � � � 5.50	$ � � � � 4.92

WEIGHTED-AVERAGE NUMBER OF COMMON�
� � SHARES OUTSTANDING:
	Basic	399	391	395	389
	Diluted	401	407	406	391

DIVIDENDS DECLARED PER COMMON SHARE		$ � � � 0.20	$ � � � 0.17	$ � � � � 0.80	$ � � � � 0.68

�

APACHE CORPORATION
SUMMARY OF CAPITAL COSTS INCURRED
(In millions)


				For the Quarter�		For the Year
				Ended December 31,		Ended December 31,
				2013	2012	2013	2012
CAPITAL EXPENDITURES:
	Exploration & Development Costs
		United States		$ � � � � 1,302	$ � � 1,543	$ � 5,473	$ � 5,151
		Canada		218	131	720	590
			North America	1,520	1,674	6,193	5,741
		Egypt ⁽¹⁾		353	265	1,166	1,074
		Australia		268	355	1,179	873
		North Sea		227	183	874	886
		Argentina		37	67	182	289
		New Ventures - International		(6)	14	22	98
			International ⁽¹⁾	879	884	3,423	3,220
			Worldwide Exploration & Development Costs ⁽¹⁾	$ � � � 2,399	$ � � 2,558	$ � 9,616	$ � � 8,961

	Gathering, Transmission and Processing Facilities
		United States		$ � � � � � � 49	$ � � � � � 18	$ � � � 169	$ � � � � 75
		Canada		24	34	135	172
		Egypt ⁽¹⁾		25	18	82	33
		Australia		211	103	745	441
		Argentina		4	4	11	16
		North Sea		1	1	1	1
			Total Gathering, Transmission and Processing ⁽¹⁾	$ � � � � 314	$ � � � 178	$ � 1,143	$ � � � 738

	Asset Retirement Costs			$ � � � � � 90	$ � � � 392	$ � � � 484	$ � � � 948

	Capitalized Interest			$ � � � � � 98	$ � � � � 93	$ � � � 374	$ � � � 334

	Capital Expenditures, excluding Acquisitions ⁽¹⁾			$ � � � 2,901	$ � � 3,221	$ 11,617	$ 10,981

	Asset Retirement Costs - Acquired			$ � � � � � � � -	$ � � � � � 51	$ � � � 53	$ � � � � 84

	Acquisitions			$ � � � � � 59	$ � � � � 122	$ � � 377	$ � 3,543

⁽¹⁾Includes capital costs attributable to noncontrolling interest in Egypt


APACHE CORPORATION
SUMMARY BALANCE SHEET INFORMATION
(In millions)

	December 31,	December 31,
	2013	2012

Cash and Cash Equivalents	$ � � � � � � 1,906	$ � � � � � � � 160
Other Current Assets�	4,460	4,802
Property and Equipment, net	52,421	53,280
Goodwill	1,369	1,289
Other Assets	1,481	1,206
Total Assets	$ � � � � � 61,637	$ � � � � � 60,737

Short-Term Debt	$ � � � � � � � � 53	$ � � � � � � � 990
Other Current Liabilities	4,647	4,546
Long-Term Debt	9,672	11,355
Deferred Credits and Other Noncurrent Liabilities	11,872	12,515
Apache Shareholders' Equity	33,396	31,331
Noncontrolling interest	1,997	-
Total Liabilities and Shareholders' Equity	$ � � � � � 61,637	$ � � � � � 60,737

Common shares outstanding at end of period	396	392

�

APACHE CORPORATION
PRODUCTION INFORMATION


				For the Quarter�		For the Year
				Ended December 31,		Ended December 31,
				2013	2012	2013	2012

� OIL VOLUME - Barrels per day
	Central			22,939	21,026	22,783	14,151
	Permian			77,703	65,104	72,113	60,215
	GOM Deepwater			6,530	8,355	7,386	6,848
	GOM Shelf			(27)	44,752	34,099	42,873
	GC Onshore			10,397	10,489	10,526	10,036
		United States		117,542	149,726	146,907	134,123
	Canada			16,570	17,377	17,724	15,830
		North America		134,112	167,103	164,631	149,953
	Egypt ⁽¹⁾			89,654	103,056	89,561	99,756
	Australia			16,760	26,483	19,329	28,884
	North Sea			64,996	65,583	63,721	63,692
	Argentina			9,276	9,859	9,375	9,741
		International ⁽¹⁾		180,686	204,981	181,986	202,073
			Total ⁽¹⁾	314,798	372,084	346,617	352,026

� NATURAL GAS VOLUME - Mcf per day
	Central			264,786	287,956	272,814	242,998
	Permian			191,371	184,781	189,450	180,938
	GOM Deepwater			11,378	48,177	19,743	46,048
	GOM Shelf			11,167	265,918	192,314	291,356
	GC Onshore			104,300	103,722	107,014	92,759
		United States		583,002	890,554	781,335	854,099
	Canada			421,409	550,495	497,515	600,680
		North America		1,004,411	1,441,049	1,278,850	1,454,779
	Egypt ⁽¹⁾			352,616	350,406	356,454	353,738
	Australia			254,853	204,961	223,433	214,013
	North Sea			53,491	43,745	50,961	57,457
	Argentina			190,799	204,724	187,390	213,464
		International ⁽¹⁾		851,759	803,836	818,238	838,672
			Total ⁽¹⁾	1,856,170	2,244,885	2,097,088	2,293,451

� NGL VOLUME - Barrels per day
	Central			26,083	10,231	23,034	6,518
	Permian			24,115	21,997	23,379	17,966
	GOM Deepwater			740	1,519	838	1,185
	GOM Shelf			824	6,908	4,911	5,738
	GC Onshore			2,640	2,229	2,418	2,120
		United States		54,402	42,884	54,580	33,527
	Canada			6,395	6,837	6,689	6,258
		North America		60,797	49,721	61,269	39,785
	North Sea			1,301	1,085	1,272	1,618
	Argentina			1,653	2,967	2,102	3,008
		International		2,954	4,052	3,374	4,626
			Total	63,751	53,773	64,643	44,411

� BOE per day
	Central			93,153	79,250	91,286	61,169
	Permian			133,713	117,898	127,066	108,338
	GOM Deepwater			9,167	17,903	11,515	15,708
	GOM Shelf			2,658	95,980	71,062	97,170
	GC Onshore			30,421	30,005	30,780	27,615
		United States		269,112	341,036	331,709	310,000
	Canada			93,199	115,963	107,332	122,201
		North America		362,311	456,999	439,041	432,201
	Egypt ⁽¹⁾			148,423	161,458	148,970	158,713
	Australia			59,236	60,643	56,568	64,552
	North Sea			75,212	73,959	73,487	74,887
	Argentina			42,729	46,946	42,709	48,326
		International ⁽¹⁾		325,600	343,006	321,734	346,478
			Total ⁽¹⁾	687,911	800,005	760,775	778,679

			Total excluding noncontrolling interests	661,484	800,005	754,114	778,679

	⁽¹⁾Includes production volume per day attributable to noncontrolling interest in Egypt
		Oil (b/d)		15,521	-	3,912	-
		Gas (Mcf/d)		65,437	-	16,494	-

�

APACHE CORPORATION
PRICE INFORMATION


				For the Quarter�		For the Year
				Ended December 31,		Ended December 31,
				2013	2012	2013	2012

� AVERAGE OIL PRICE PER BARREL
	Central			$ � � 92.67	$ � � 82.55	$ � � � 93.45	$ � � � 86.48
	Permian			93.44	81.40	93.50	88.18
	GOM Deepwater			95.04	103.06	105.04	105.17
	GOM Shelf			� NM�	105.27	109.57	108.52
	GC Onshore			97.06	105.21	106.09	107.83
		United States ⁽¹⁾		93.36	91.01	98.14	94.98
	Canada			79.44	82.08	87.00	84.89
		North America ⁽¹⁾		91.64	90.08	96.94	93.91
	Egypt			108.56	107.80	107.94	110.92
	Australia⁽¹⁾			114.06	111.34	110.42	115.22
	North Sea⁽¹⁾			107.08	106.17	107.48	107.97
	Argentina			83.22	74.53	79.05	75.89
		International ⁽¹⁾		107.24	106.14	106.55	108.92
			Total⁽¹⁾	100.59	98.93	101.99	102.53

� AVERAGE NATURAL GAS PRICE PER MCF
	Central			$ � � � � 3.62	$ � � � � 3.79	$ � � � � 3.72	$ � � � � 3.26
	Permian			3.80	3.75	3.77	3.34
	GOM Deepwater			3.61	3.48	3.34	2.99
	GOM Shelf			� NM�	3.51	3.82	3.01
	GC Onshore			3.69	3.47	3.80	2.92
		United States ⁽¹⁾		3.77	4.05	3.84	3.74
	Canada ⁽¹⁾			3.34	4.03	3.23	3.42
		North America ⁽¹⁾		3.59	4.04	3.61	3.61
	Egypt			3.00	4.02	2.99	3.90
	Australia			4.15	4.88	4.43	4.55
	North Sea			10.58	10.11	10.43	8.95
	Argentina			3.11	2.98	2.96	2.87
		International		3.85	4.30	3.84	4.15
			Total ⁽¹⁾	3.71	4.14	3.70	3.80

� AVERAGE NGL PRICE PER BARREL
	Central			$ � � 28.34	$ � � 27.06	$ � � � 25.61	$ � � � 27.48
	Permian			29.90	29.95	27.94	32.97
	GOM Deepwater			35.80	32.34	33.23	33.06
	GOM Shelf			� NM�	28.17	28.52	32.04
	GC Onshore			36.75	36.60	32.44	40.04
		United States		29.50	29.40	27.29	32.19
	Canada			36.82	33.59	30.50	34.63
		North America		30.27	29.98	27.64	32.57
	Egypt			-	-	-	-
	North Sea			80.43	94.42	73.06	77.11
	Argentina			17.68	22.76	23.64	21.55
		International		45.31	41.96	42.27	40.98
			Total	30.96	30.88	28.40	33.45


	^(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�		For the Year
		Ended December 31,		Ended December 31,
		2013	2012	2013	2012

Income Attributable to Common Stock (GAAP)		$ � � 174	$ � � 649	$ 2,188	$ � 1,925

Adjustments:
	Oil & gas property write-downs, net of tax	139	18	659	1,427
	Deferred tax on distributed foreign earnings	225	-	225	-
	Commodity derivative mark-to-market, net of tax	54	51	142	51
	Deferred tax adjustments	43	226	58	226
	Acquisitions, divestitures & transition, net of tax	21	2	21	19
	North Sea decommissioning tax rate adjustment	-	-	-	118
	Unrealized foreign currency fluctuation impact on deferred tax expense� �	(25)	(39)	(123)	1
Adjusted Earnings� (Non-GAAP)		$ � � 631	$ � � 907	$ 3,170	$ � 3,767

Net Income per Common Share - Diluted (GAAP)		$ � 0.43	$ � 1.64	$ � 5.50	$ � � � 4.92

Adjustments:
	Oil & gas property write-downs, net of tax	0.35	0.04	1.63	3.53
	Deferred tax on distributed foreign earnings	0.56	-	0.55	-
	Commodity derivative mark-to-market, net of tax	0.13	0.56	0.35	0.56
	Deferred tax adjustments	0.11	-	0.14	0.30
	Acquisitions, divestitures & transition, net of tax	0.05	0.13	0.05	0.13
	North Sea decommissioning tax rate adjustment	-	-	-	0.04
	Unrealized foreign currency fluctuation impact on deferred tax expense� �	(0.06)	(0.10)	(0.30)	-
Adjusted Earnings Per Share - Diluted (Non-GAAP)		$ � 1.57	$ � 2.27	$ � 7.92	$ � � � 9.48


Total income tax provision (GAAP)		$ � � 512	$ � � 973	$ � � 1,928	$ � � � 2,876

Adjustments:
	Tax effect of oil & gas property write-downs	229	10	517	485
	Foreign currency fluctuation impact on deferred tax expense	25	39	123	(1)
	Tax impact on commodity derivative mark-to-market	30	28	79	28
	Tax impact on acquisition, divestitures & transition costs	12	-	12	12
	North Sea decommissioning tax rate adjustment	-	-	-	(118)
	Deferred tax adjustments	(43)	(226)	(58)	(226)
	Deferred tax on distributed foreign earnings	(225)	-	(225)	-
Adjusted total income tax provision		$ � � 540	$ � � 824	$ � � 2,376	$ � � � 3,056

Adjusted Effective Tax Rate (Non-GAAP)		44.0%	47.2%	42.1%	44.3%


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 Year
		Ended December 31,		Ended December 31,
		2013	2012	2013	2012
Net cash provided by operating activities		$ 2,477	$ 2,082	$ 9,835	$ � 8,504
Changes in operating assets and liabilities		(400)	721	(81)	1,741
Cash from operations before changes in
	operating assets and liabilities	$ 2,077	$ 2,803	$ 9,754	$ 10,245

�

APACHE CORPORATION
OIL & GAS RESERVES INFORMATION
For the Year Ended December 31, 2013


� OIL (Mbbl)�
		� U.S.�	� Canada�	Egypt¹	� Australia�	� North Sea�	� Argentina�	Total¹
Balance - Dec 31, 2012		677,905	150,345	124,034	63,861	147,654	18,826	1,182,625
	Extensions and Discoveries	133,227	10,177	43,738	2,539	1,543	998	192,222
	Purchases	85	-	5	-	3,623	-	3,713
	Revisions	1,683	(531)	457	(118)	18	24	1,533
	Production	(53,621)	(6,469)	(32,690)	(7,055)	(23,258)	(3,422)	(126,515)
	Sales	(105,463)	(16,630)	-	-	-	-	(122,093)
Balance - Dec 31, 2013		653,816	136,892	135,544	59,227	129,580	16,426	1,131,485

� NGL's (Mbbl)�
		� U.S.�	� Canada�	Egypt¹	� Australia�	� North Sea�	� Argentina�	Total¹
Balance - Dec 31, 2012		215,397	34,254	-	-	2,818	5,883	258,352
	Extensions and Discoveries	69,231	4,014	-	-	-	-	73,245
	Purchases	45	-	-	-	295	-	340
	Revisions	1,591	546	-	-	1	3	2,141
	Production	(19,922)	(2,442)	-	-	(464)	(767)	(23,595)
	Sales	(18,319)	(303)	-	-	-	-	(18,622)
Balance - Dec 31, 2013		248,023	36,069	-	-	2,650	5,119	291,861

� Oil & NGL's�
		� U.S.�	� Canada�	Egypt¹	� Australia�	� North Sea�	� Argentina�	Total¹
Balance - Dec 31, 2012		893,302	184,599	124,034	63,861	150,472	24,709	1,440,977
	Extensions and Discoveries	202,458	14,191	43,738	2,539	1,543	998	265,467
	Purchases	130	-	5	-	3,918	-	4,053
	Revisions	3,274	15	457	(118)	19	27	3,674
	Production	(73,543)	(8,911)	(32,690)	(7,055)	(23,722)	(4,189)	(150,110)
	Sales	(123,782)	(16,933)	-	-	-	-	(140,715)
Balance - Dec 31, 2013		901,839	172,961	135,544	59,227	132,230	21,545	1,423,346

� GAS (MMcf)�
		� U.S.�	� Canada�	Egypt¹	� Australia�	� North Sea�	� Argentina�	Total¹
Balance - Dec 31, 2012		3,185,907	2,137,884	895,491	1,670,070	112,304	462,550	8,464,206
	Extensions and Discoveries	306,721	359,493	44,382	13,351	2,750	16,515	743,212
	Purchases	855	-	-	-	10,680	-	11,535
	Revisions	61,247	109,551	2,413	(101)	32	49	173,191
	Production	(285,187)	(181,593)	(130,106)	(81,553)	(18,601)	(68,397)	(765,437)
	Sales	(596,417)	(691,878)	-	-	-	-	(1,288,295)
Balance - Dec 31, 2013		2,673,126	1,733,457	812,180	1,601,767	107,165	410,717	7,338,412


TOTAL BOE (Mboe)
		� U.S.�	� Canada�	Egypt¹	� Australia�	� North Sea�	� Argentina�	Total¹
Balance - Dec 31, 2012		1,424,287	540,913	273,283	342,206	169,189	101,801	2,851,679
	Extensions and Discoveries	253,578	74,107	51,135	4,764	2,001	3,751	389,336
	Purchases	273	-	5	-	5,698	-	5,976
	Revisions	13,482	18,274	859	(135)	24	35	32,539
	Production	(121,074)	(39,177)	(54,374)	(20,647)	(26,822)	(15,589)	(277,683)
	Sales	(223,185)	(132,246)	-	-	-	-	(355,431)
Balance - Dec 31, 2013		1,347,361	461,871	270,908	326,188	150,090	89,998	2,646,416


Proved developed reserves:
	Oil + NGL's (Mbbls)	642,467	106,625	119,242	22,524	102,761	18,305	1,011,924
	Gas (Mboe)	334,328	215,737	103,638	104,424	14,696	48,189	821,012
Balance - Dec 31, 2013 (Mboe)		976,795	322,362	222,880	126,948	117,457	66,494	1,832,936

⁽¹⁾Includes reserves attributable to noncontrolling interest in Egypt.

�

APACHE CORPORATION
OIL & GAS RESERVES AND COSTS
For the Year Ended December 31, 2013


Reserve Additions (Mboe)
		U.S.	Canada	Egypt ⁽¹⁾	Australia	North Sea	Argentina	Other	Total ⁽¹⁾

Extensions and Discoveries		253,578	74,107	51,135	4,764	2,001	3,751	-	389,336
Purchases		273	-	5	-	5,698	-	-	5,976
	Additions excluding revisions	253,851	74,107	51,140	4,764	7,699	3,751	-	395,312
Revisions		13,482	18,274	859	(135)	24	35	-	32,539
	Total	267,333	92,381	51,999	4,629	7,723	3,786	-	427,851


Capital Cost Information (Non-GAAP) (in millions)
		U.S.	Canada	Egypt ⁽¹⁾	Australia	North Sea	Argentina	Other	Total ⁽¹⁾
Exploration & Development, excluding Capitalized Interest and Asset Retirement Cost (ARC)
		$ 5,473	$ 720	$ 1,166	$ 1,179	$ 874	$ 182	$ 22	$ 9,616
Acquisitions, excluding ARC - Acquired
	Proved	17	-	35	-	72	-	-	124
	Unproved	-	137	11	-	17	-	-	165
Total		$ 5,490	$ 857	$ 1,212	$ 1,179	$ 963	$ 182	$ 22	$ 9,905



Reconciliation of Exploration and Development Costs to Exploration and Development Costs, excluding Capitalized Interest and Asset Retirement Cost, a Non-GAAP Financial Measure


Presented below is a reconciliation of exploration and development costs (GAAP) to exploration and development costs, excluding capitalized interest and asset retirement cost (Non-GAAP). Management believes exploration and development costs, excluding capitalized interest and asset retirement cost is a more accurate reflection of the expenditures during the current year.




		U.S.	Canada	Egypt ⁽¹⁾	Australia	North Sea	Argentina	Other	Total ⁽¹⁾

Exploration & Development Costs (in millions)		$ 6,192	$ 772	$ 1,181	$ 1,165	$ 913	$ 195	$ 22	$ 10,440
	Less: Capitalized Interest	(239)	(35)	(15)	(16)	(25)	(10)	-	(340)
	Less: ARC	(480)	(17)	-	30	(14)	(3)	-	(484)

	Total Adds	$ 5,473	$ 720	$ 1,166	$ 1,179	$ 874	$ 182	$ 22	$ 9,616


Reconciliation of Total Acquisition Costs to Acquisitions, excluding Asset Retirement Cost - Acquired, a Non-GAAP Financial Measure


Presented below is a reconciliation of total acquisition costs (GAAP) to acquisitions, excluding asset retirement cost - acquired (Non-GAAP). Management believes acquisitions, excluding asset retirement cost - acquired is a more accurate reflection of the costs of acquisitions during the current year.



		U.S.	Canada	Egypt ⁽¹⁾	Australia	North Sea	Argentina	Other	Total ⁽¹⁾

Total Acquisition Costs (in millions)
	Proved	$ 17	$ -	$ 35	$ -	$ 125	$ -	$ -	$ 177
	Unproved	-	137	11	-	17		-	165
Less: ARC - Acquired		-	-	-	-	(53)	-	-	(53)

	Acquisitions, excluding ARC - Acquired	$ 17	$ 137	$ 46	$ -	$ 89	$ -	$ -	$ 289


⁽¹⁾Includes reserves and costs attributable to noncontrolling interest in Egypt.

�

APA-F

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