Apache Achieves Record Fourth Quarter And 2012 Production; Fourth Quarter Production Averaged 800,000 BOEPD
HOUSTON, Feb. 14, 2013 /PRNewswire/ --� Apache Corporation (NYSE, Nasdaq: APA) today reported record overall production for its fourth consecutive year, as well as record oil and liquids production. Average daily production during 2012 increased to 779,000 barrels of oil equivalent (boe) per day, up 5.4 percent compared with the prior year's production, adjusted for dispositions. Oil and gas revenues were a record $16.9 billion, up from $16.8 billion in the prior year.
These results contributed to full-year 2012 earnings of $1.9 billion or $4.92 per diluted common share, compared with $4.5 billion or $11.47 per share in 2011. Excluding certain items that management believes affect the comparability of operating results, such as the impact of a ceiling test write-down due primarily to substantially weaker� Canadian natural gas prices, Apache reported adjusted earnings* of $3.8 billion or $9.48 per share, compared with $4.7 billion or $11.83 per share in 2011. Cash from operations before changes in operating assets and liabilities* was $10.2 billion, sustaining the record level achieved the prior year even with lower average North American natural gas prices.
"Having deepened and strengthened our global portfolio of growth projects since 2010, we are accelerating our operational momentum," said G. Steven Farris, chairman and chief executive officer. "Apache exited 2012 producing in excess of 800,000 boe per day, driven primarily by our North American oil production, which increased 12 percent during the year.
"We have an extensive pipeline of opportunities that will fuel our profitable growth for years to come. This includes more than 67,000 technically evaluated drilling locations in the onshore U.S. It also includes a robust group of world-class development projects throughout our global portfolio, including Wheatstone and Kitimat, our two liquefied natural gas projects with products indexed to crude oil prices."
Apache has become the leading oil and gas driller in the Permian Basin, operating more rigs than any industry competitor. Apache also is among the most active oil and gas companies in the Central Region's Anadarko Basin, as the company accelerates development of its horizontal drilling play inventory. Year-over-year production from these two regions increased 18 and 37 percent, respectively.
Earlier this month, a company subsidiary� completed a transaction� with Chevron Canada Ltd. to jointly build and operate the Kitimat LNG project, enhancing our efforts to move this project to sanction and monetize natural gas resources we discovered in the Horn River and Liard basins of northern British Columbia. The incremental resources targeted for monetization through Kitimat have the potential to triple Apache's total proved reserves.
In fourth-quarter 2012 earnings totaled $649 million or $1.64 per diluted share, compared with $1.17 billion or $2.98 per share in the prior-year period. Adjusted earnings for the period were $907 million, or $2.27 per share, compared with $1.2 billion, or $2.94 per share in the same period for 2011. Production reached a new quarterly milestone, averaging 800,000 boe per day, and cash from operations totaled $2.77 billion, compared with $2.66 billion in the same period of the prior year.
Apache's oil and natural gas liquids production was 51 percent of total volume in 2012 and contributed 81 percent of revenues reflecting the wide gap between global crude oil and North American natural gas prices.
During 2012 the company added 372 MMboe of reserves, or 131 percent of production, through discoveries and extensions and 73 MMboe through acquisitions for a reserve replacement rate of 156 percent, excluding revisions. Low prices throughout the year for Canadian natural gas resulted in a ceiling test write-down and were the primary driver of negative revisions totaling 299 MMboe. Apache ended the year with proved reserves of 2.9 billion boe, after producing 285 MMboe. The company invested $9.0 billion on exploration and development during the year.
Apache to webcast conference call
Apache Corporation will discuss its fiscal 2012 and fourth-quarter results at 1 p.m. Central time on Thursday, Feb. 14. 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. on Feb. 14. To access the telephone playback, dial 855-859-2056 or 404-537-3406 for international calls. The conference access code is 84095210.
About Apache
Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom North Sea, Australia and Argentina. Apache posts announcements, operational updates, investor information and copies of all press releases on its website, www.apachecorp.com.
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 growth plans, expectations, and objectives for Apache's operations including statements about our drilling plans, planned wells, and Wheatstone and Kitimat LNG projects.� 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 2011 Form 10-K and our subsequent filings 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.
Cautionary Note to Investors
The United States Securities and Exchange Commission ("SEC") permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable, and possible reserves that meet the SEC's definitions for such terms. Apache uses certain terms in this release, such as "resources," and other similar terms that the SEC guidelines strictly prohibit Apache from including in filings with the SEC. � Such terms do not take into account the certainty of resource recovery, which is contingent on exploration success, technical improvements in drilling access, commerciality and other factors, and are therefore not indicative of expected future resource recovery and should not be relied upon. Investors are urged to consider carefully the disclosure in Apache's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2011, and amendments thereto, available from Apache at www.apachecorp.com or by writing Apache at: 2000 Post Oak Blvd., Suite 100, Houston, Texas 77056 (Attn: Corporate Secretary). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC's website at www.sec.gov.
*Adjusted earnings and� cash from operations before changes in operating assets and liabilities are non-GAAP measures. Please see reconciliations below. For supplemental and non-GAAP information, please go to http://www.apachecorp.com/financialinfo.
�
|
APACHE CORPORATION |
|
STATEMENT OF CONSOLIDATED OPERATIONS |
|
(In millions, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter� |
|
For the Year |
|
|
Ended December 31, |
|
Ended December 31, |
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
|
REVENUES AND OTHER: |
|
|
|
|
|
|
|
|
Oil and gas production revenues |
$ 4,393 |
|
$ 4,295 |
|
$ 16,947 |
|
$ 16,810 |
|
Other� |
(2) |
|
2 |
|
131 |
|
78 |
|
|
4,391 |
|
4,297 |
|
17,078 |
|
16,888 |
|
|
|
|
|
|
|
|
|
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
|
|
|
|
|
|
� � � Recurring |
1,380 |
|
1,111 |
|
5,183 |
|
4,095 |
|
� � � Additional |
28 |
|
63 |
|
1,926 |
|
109 |
|
Asset retirement obligation accretion |
60 |
|
40 |
|
232 |
|
154 |
|
Lease operating expenses |
790 |
|
659 |
|
2,968 |
|
2,605 |
|
Gathering and transportation� |
68 |
|
75 |
|
303 |
|
296 |
|
Taxes other than income |
235 |
|
236 |
|
862 |
|
899 |
|
General and administrative |
147 |
|
132 |
|
531 |
|
459 |
|
Merger, acquisitions & transition |
2 |
|
5 |
|
31 |
|
20 |
|
Financing costs, net |
40 |
|
35 |
|
165 |
|
158 |
|
|
2,750 |
|
2,356 |
|
12,201 |
|
8,795 |
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES |
1,641 |
|
1,941 |
|
4,877 |
|
8,093 |
|
Current income tax provision� |
506 |
|
571 |
|
2,235 |
|
2,263 |
|
Deferred income tax provision |
467 |
|
181 |
|
641 |
|
1,246 |
|
|
|
|
|
|
|
|
|
|
NET INCOME� |
668 |
|
1,189 |
|
2,001 |
|
4,584 |
|
Preferred stock dividends |
19 |
|
19 |
|
76 |
|
76 |
|
|
|
|
|
|
|
|
|
|
INCOME ATTRIBUTABLE TO COMMON STOCK |
$ � � 649 |
|
$ 1,170 |
|
$ � 1,925 |
|
$ � 4,508 |
|
|
|
|
|
|
|
|
|
|
NET INCOME PER COMMON SHARE: |
|
|
|
|
|
|
|
|
Basic |
$ � � 1.66 |
|
$ � � 3.05 |
|
$ � � � 4.95 |
|
$ � 11.75 |
|
Diluted� |
$ � � 1.64 |
|
$ � � 2.98 |
|
$ � � � 4.92 |
|
$ � 11.47 |
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE NUMBER OF COMMON� |
|
|
|
|
|
|
|
|
� � SHARES OUTSTANDING: |
|
|
|
|
|
|
|
|
Basic |
391 |
|
384 |
|
389 |
|
384 |
|
Diluted |
407 |
|
400 |
|
391 |
|
400 |
|
|
|
|
|
|
|
|
|
|
DIVIDENDS DECLARED PER COMMON SHARE |
$ � � 0.17 |
|
$ � � 0.15 |
|
$ � � � 0.68 |
|
$ � � � 0.60 |
�
|
APACHE CORPORATION |
|
SUMMARY OF CAPITAL COSTS INCURRED |
|
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter� |
|
For the Year |
|
|
|
|
Ended December 31, |
|
Ended December 31, |
|
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
CAPITAL EXPENDITURES: |
|
|
|
|
|
|
|
|
Exploration & Development Costs |
|
|
|
|
|
|
|
|
|
United States |
$ � � � � � � � � 1,543 |
|
$ � � � � � � � � � � 792 |
|
$ � � � � � � � 5,151 |
|
$ � � � � � � � � � � 2,768 |
|
|
Canada |
131 |
|
208 |
|
590 |
|
817 |
|
|
|
North America |
1,674 |
|
1,000 |
|
5,741 |
|
3,585 |
|
|
Egypt |
265 |
|
222 |
|
1,074 |
|
896 |
|
|
Australia |
355 |
|
131 |
|
873 |
|
576 |
|
|
North Sea |
183 |
|
205 |
|
886 |
|
823 |
|
|
Argentina |
67 |
|
101 |
|
289 |
|
346 |
|
|
New Ventures - International |
14 |
|
12 |
|
98 |
|
61 |
|
|
|
International |
884 |
|
671 |
|
3,220 |
|
2,702 |
|
|
|
Worldwide Exploration & Development Costs |
$ � � � � � � � � 2,558 |
|
$ � � � � � � � � 1,671 |
|
$ � � � � � � � 8,961 |
|
$ � � � � � � � � � � 6,287 |
|
|
|
|
|
|
|
|
|
|
|
|
Gathering, Transmission and Processing Facilities |
|
|
|
|
|
|
|
|
|
United States |
$ � � � � � � � � � � � 18 |
|
$ � � � � � � � � � � � 18 |
|
$ � � � � � � � � � � 75 |
|
$ � � � � � � � � � � � � � 27 |
|
|
Canada |
34 |
|
35 |
|
172 |
|
148 |
|
|
Egypt |
18 |
|
37 |
|
33 |
|
111 |
|
|
Australia |
103 |
|
90 |
|
441 |
|
345 |
|
|
Argentina |
4 |
|
5 |
|
16 |
|
12 |
|
|
North Sea |
1 |
|
- |
|
1 |
|
- |
|
|
|
Total Gathering, Transmission and Processing |
$ � � � � � � � � � � 178 |
|
$ � � � � � � � � � � 185 |
|
$ � � � � � � � � � 738 |
|
$ � � � � � � � � � � � � 643 |
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized Interest |
$ � � � � � � � � � � � 93 |
|
$ � � � � � � � � � � � 70 |
|
$ � � � � � � � � � 334 |
|
$ � � � � � � � � � � � � 263 |
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures, excluding Acquisitions |
$ � � � � � � � � 2,829 |
|
$ � � � � � � � � 1,926 |
|
$ � � � � � � 10,033 |
|
$ � � � � � � � � � � 7,193 |
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions |
$ � � � � � � � � � � 122 |
|
$ � � � � � � � � 2,696 |
|
$ � � � � � � � 3,543 |
|
$ � � � � � � � � � � 3,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APACHE CORPORATION |
|
SUMMARY BALANCE SHEET INFORMATION |
|
(In millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
|
|
|
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents |
$ � � � � � � � � � � 160 |
|
$ � � � � � � � � � � 295 |
|
|
|
|
|
Other Current Assets� |
4,802 |
|
4,508 |
|
|
|
|
|
Property and Equipment, net |
53,280 |
|
45,448 |
|
|
|
|
|
Goodwill |
1,289 |
|
1,114 |
|
|
|
|
|
Other Assets |
1,206 |
|
686 |
|
|
|
|
|
Total Assets |
$ � � � � � � � 60,737 |
|
$ � � � � � � � 52,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Debt |
$ � � � � � � � � � � 990 |
|
$ � � � � � � � � � � 431 |
|
|
|
|
|
Other Current Liabilities |
4,546 |
|
4,532 |
|
|
|
|
|
Long-Term Debt |
11,355 |
|
6,785 |
|
|
|
|
|
Deferred Credits and Other Noncurrent Liabilities |
12,515 |
|
11,310 |
|
|
|
|
|
Shareholders' Equity |
31,331 |
|
28,993 |
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
$ � � � � � � � 60,737 |
|
$ � � � � � � � 52,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding at end of period |
392 |
|
384 |
|
|
|
|
�
|
APACHE CORPORATION |
|
PRODUCTION INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter� |
|
For the Year |
|
|
|
|
|
Ended December 31, |
|
Ended December 31, |
|
|
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
� OIL VOLUME - Barrels per day |
|
|
|
|
|
|
|
|
Central |
|
21,026 |
|
7,323 |
|
14,151 |
|
6,788 |
|
Permian |
|
65,104 |
|
54,381 |
|
60,215 |
|
50,991 |
|
GOM Deepwater |
8,355 |
|
6,507 |
|
6,848 |
|
6,022 |
|
GOM Shelf |
44,752 |
|
47,780 |
|
42,873 |
|
46,031 |
|
GC Onshore |
10,489 |
|
10,189 |
|
10,036 |
|
9,583 |
|
|
United States |
149,726 |
|
126,180 |
|
134,123 |
|
119,415 |
|
Canada |
|
17,377 |
|
14,882 |
|
15,830 |
|
14,252 |
|
|
North America |
167,103 |
|
141,062 |
|
149,953 |
|
133,667 |
|
Egypt |
|
103,056 |
|
103,908 |
|
99,756 |
|
103,912 |
|
Australia |
|
26,483 |
|
38,169 |
|
28,884 |
|
38,228 |
|
North Sea |
65,583 |
|
55,859 |
|
63,692 |
|
54,541 |
|
Argentina |
|
9,859 |
|
9,655 |
|
9,741 |
|
9,597 |
|
|
International |
204,981 |
|
207,591 |
|
202,073 |
|
206,278 |
|
|
|
Total� |
372,084 |
|
348,653 |
|
352,026 |
|
339,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
� NATURAL GAS VOLUME - Mcf per day |
|
|
|
|
|
|
|
|
Central |
|
287,956 |
|
193,722 |
|
242,998 |
|
213,447 |
|
Permian |
|
184,781 |
|
178,766 |
|
180,938 |
|
173,188 |
|
GOM Deepwater |
48,177 |
|
48,144 |
|
46,048 |
|
52,193 |
|
GOM Shelf |
265,918 |
|
335,434 |
|
291,356 |
|
341,242 |
|
GC Onshore |
103,722 |
|
106,505 |
|
92,759 |
|
84,672 |
|
|
United States |
890,554 |
|
862,571 |
|
854,099 |
|
864,742 |
|
Canada |
|
550,495 |
|
631,122 |
|
600,680 |
|
632,550 |
|
|
North America |
1,441,049 |
|
1,493,693 |
|
1,454,779 |
|
1,497,292 |
|
Egypt |
|
350,406 |
|
355,091 |
|
353,738 |
|
365,418 |
|
Australia |
|
204,961 |
|
189,852 |
|
214,013 |
|
185,079 |
|
North Sea |
43,745 |
|
2,366 |
|
57,457 |
|
2,284 |
|
Argentina |
|
204,724 |
|
221,523 |
|
213,464 |
|
212,311 |
|
|
International |
803,836 |
|
768,832 |
|
838,672 |
|
765,092 |
|
|
|
Total� |
2,244,885 |
|
2,262,525 |
|
2,293,451 |
|
2,262,384 |
|
|
|
|
|
|
|
|
|
|
|
|
|
� NGL VOLUME - Barrels per day |
|
|
|
|
|
|
|
|
Central |
|
10,231 |
|
5,566 |
|
6,518 |
|
2,268 |
|
Permian |
|
21,997 |
|
12,256 |
|
17,966 |
|
11,799 |
|
GOM Deepwater |
1,519 |
|
582 |
|
1,185 |
|
715 |
|
GOM Shelf |
6,908 |
|
4,446 |
|
5,738 |
|
5,278 |
|
GC Onshore |
2,229 |
|
2,556 |
|
2,120 |
|
2,051 |
|
|
United States |
42,884 |
|
25,406 |
|
33,527 |
|
22,111 |
|
Canada |
|
6,837 |
|
5,183 |
|
6,258 |
|
5,958 |
|
|
North America |
49,721 |
|
30,589 |
|
39,785 |
|
28,069 |
|
Egypt |
|
- |
|
- |
|
- |
|
49 |
|
North Sea |
1,085 |
|
- |
|
1,618 |
|
4 |
|
Argentina |
|
2,967 |
|
2,997 |
|
3,008 |
|
3,018 |
|
|
International |
4,052 |
|
2,997 |
|
4,626 |
|
3,071 |
|
|
|
Total |
53,773 |
|
33,586 |
|
44,411 |
|
31,140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
� BOE per day |
|
|
|
|
|
|
|
|
Central |
|
79,250 |
|
45,176 |
|
61,169 |
|
44,630 |
|
Permian |
|
117,898 |
|
96,431 |
|
108,338 |
|
91,655 |
|
GOM Deepwater |
17,903 |
|
15,114 |
|
15,708 |
|
15,436 |
|
GOM Shelf |
95,980 |
|
108,132 |
|
97,170 |
|
108,183 |
|
GC Onshore |
30,005 |
|
30,495 |
|
27,615 |
|
25,746 |
|
|
United States |
341,036 |
|
295,348 |
|
310,000 |
|
285,650 |
|
Canada |
|
115,963 |
|
125,252 |
|
122,201 |
|
125,636 |
|
|
North America |
456,999 |
|
420,600 |
|
432,201 |
|
411,286 |
|
Egypt |
|
|
161,458 |
|
163,090 |
|
158,713 |
|
164,864 |
|
Australia |
|
60,643 |
|
69,812 |
|
64,552 |
|
69,074 |
|
North Sea |
73,959 |
|
56,253 |
|
74,887 |
|
54,925 |
|
Argentina |
|
46,946 |
|
49,572 |
|
48,326 |
|
48,000 |
|
|
International |
343,006 |
|
338,727 |
|
346,478 |
|
336,863 |
|
|
|
Total� |
800,005 |
|
759,327 |
|
778,679 |
|
748,149 |
�
|
APACHE CORPORATION |
|
PRICE INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter� |
|
For the Year |
|
|
|
|
|
Ended December 31, |
|
Ended December 31, |
|
|
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
� AVERAGE OIL PRICE PER BARREL |
|
|
|
|
|
|
|
|
Central |
|
$ 82.55 |
|
$ � 89.36 |
|
$ � 86.48 |
|
$ � 89.89 |
|
Permian |
|
81.40 |
|
89.99 |
|
88.18 |
|
90.87 |
|
GOM Deepwater |
103.06 |
|
112.77 |
|
105.17 |
|
106.75 |
|
GOM Shelf |
105.27 |
|
115.70 |
|
108.52 |
|
108.92 |
|
GC Onshore |
105.21 |
|
112.66 |
|
107.83 |
|
105.98 |
|
|
United States (1) |
91.01 |
|
99.54 |
|
94.98 |
|
95.51 |
|
Canada |
|
82.08 |
|
94.38 |
|
84.89 |
|
93.19 |
|
|
North America (1) |
90.08 |
|
98.99 |
|
93.91 |
|
95.27 |
|
Egypt(1) |
|
107.80 |
|
106.65 |
|
110.92 |
|
109.92 |
|
Australia(1) |
111.34 |
|
109.53 |
|
115.22 |
|
111.22 |
|
North Sea(1) |
106.17 |
|
104.64 |
|
107.97 |
|
104.09 |
|
Argentina |
|
74.53 |
|
76.67 |
|
75.89 |
|
68.02 |
|
|
International (1) |
106.14 |
|
105.24 |
|
108.92 |
|
106.67 |
|
|
|
Total(1) |
98.93 |
|
102.71 |
|
102.53 |
|
102.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
� AVERAGE NATURAL GAS PRICE PER MCF |
|
|
|
|
|
|
|
|
Central |
|
$ � � 3.79 |
|
$ � � 3.92 |
|
$ � � 3.26 |
|
$ � � 4.44 |
|
Permian |
|
3.75 |
|
5.05 |
|
3.34 |
|
5.17 |
|
GOM Deepwater |
3.48 |
|
3.48 |
|
2.99 |
|
4.06 |
|
GOM Shelf |
3.51 |
|
3.86 |
|
3.01 |
|
4.42 |
|
GC Onshore |
3.47 |
|
3.73 |
|
2.92 |
|
4.34 |
|
|
United States (1) |
4.05 |
|
4.59 |
|
3.74 |
|
4.91 |
|
Canada (1) |
4.03 |
|
4.15 |
|
3.42 |
|
4.47 |
|
|
North America (1) |
4.04 |
|
4.40 |
|
3.61 |
|
4.72 |
|
Egypt |
|
|
4.02 |
|
4.82 |
|
3.90 |
|
4.66 |
|
Australia |
|
4.88 |
|
2.64 |
|
4.55 |
|
2.69 |
|
North Sea |
10.11 |
|
20.49 |
|
8.95 |
|
22.25 |
|
Argentina |
|
2.98 |
|
2.82 |
|
2.87 |
|
2.64 |
|
|
International |
4.30 |
|
3.75 |
|
4.15 |
|
3.67 |
|
|
|
Total (1) |
4.14 |
|
4.18 |
|
3.80 |
|
4.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
� AVERAGE NGL PRICE PER BARREL |
|
|
|
|
|
|
|
|
Central |
|
$ 27.06 |
|
$ � 29.96 |
|
$ � 27.48 |
|
$ � 38.67 |
|
Permian |
|
29.95 |
|
39.09 |
|
32.97 |
|
47.88 |
|
GOM Deepwater |
32.34 |
|
58.28 |
|
33.06 |
|
50.44 |
|
GOM Shelf |
28.17 |
|
55.07 |
|
32.04 |
|
49.63 |
|
GC Onshore |
36.60 |
|
56.08 |
|
40.04 |
|
58.51 |
|
|
United States |
29.40 |
|
42.03 |
|
32.19 |
|
48.42 |
|
Canada |
|
33.59 |
|
50.16 |
|
34.63 |
|
45.72 |
|
|
North America |
29.98 |
|
43.41 |
|
32.57 |
|
47.85 |
|
Egypt |
|
|
- |
|
- |
|
- |
|
66.36 |
|
North Sea |
94.42 |
|
- |
|
77.11 |
|
65.45 |
|
Argentina |
|
22.76 |
|
27.00 |
|
21.55 |
|
27.90 |
|
|
International |
41.96 |
|
27.00 |
|
40.98 |
|
28.56 |
|
|
|
Total |
30.88 |
|
41.95 |
|
33.45 |
|
45.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, |
|
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Attributable to Common Stock (GAAP) |
$ � � 649 |
|
$ 1,170 |
|
$ � 1,925 |
|
$ � 4,508 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Canada and other oil & gas property write-down, net of tax |
18 |
|
60 |
|
1,427 |
|
60 |
|
Deferred tax adjustments |
226 |
|
(75) |
|
226 |
|
(75) |
|
U.K. income tax adjustments |
- |
|
- |
|
118 |
|
218 |
|
Commodity derivative mark-to-market, net of tax |
51 |
|
- |
|
51 |
|
- |
|
Merger, acquisitions & transition, net of tax |
2 |
|
4 |
|
19 |
|
13 |
|
Unrealized foreign currency fluctuation impact on deferred tax expense� � |
(39) |
|
(5) |
|
1 |
|
(73) |
|
Adjusted Earnings� (Non-GAAP) |
$ � � 907 |
|
$ 1,154 |
|
$ � 3,767 |
|
$ � 4,651 |
|
|
|
|
|
|
|
|
|
|
|
Net Income per Common Share - Diluted (GAAP) |
$ � � 1.64 |
|
$ � � 2.98 |
|
$ � � � 4.92 |
|
$ � 11.47 |
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Canada and other oil & gas property write-down, net of tax |
0.04 |
|
0.15 |
|
3.53 |
|
0.15 |
|
Deferred tax adjustments |
0.56 |
|
(0.19) |
|
0.56 |
|
(0.19) |
|
U.K. income tax adjustments |
- |
|
- |
|
0.30 |
|
0.55 |
|
Commodity derivative mark-to-market, net of tax |
0.13 |
|
- |
|
0.13 |
|
- |
|
Merger, acquisitions & transition, net of tax |
- |
|
0.01 |
|
0.04 |
|
0.03 |
|
Unrealized foreign currency fluctuation impact on deferred tax expense� � |
(0.10) |
|
(0.01) |
|
- |
|
(0.18) |
|
Adjusted Earnings Per Share - Diluted (Non-GAAP) |
$ � � 2.27 |
|
$ � � 2.94 |
|
$ � � � 9.48 |
|
$ � 11.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
Net cash provided by operating activities |
$ 2,082 |
|
$ 2,782 |
|
$ � 8,504 |
|
$ � 9,953 |
|
Changes in operating assets and liabilities |
685 |
|
(118) |
|
1,705 |
|
281 |
|
Cash from operations before changes in operating assets and liabilities |
$ 2,767 |
|
$ 2,664 |
|
$ 10,209 |
|
$ 10,234 |
�
|
APACHE CORPORATION |
|
|
OIL & GAS RESERVES INFORMATION |
|
|
For the Year Ended December 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
� OIL (Mbbl)� |
|
|
|
|
|
|
|
|
|
|
|
|
|
� U.S.� |
� Canada� |
� Egypt� |
� Australia� |
� North Sea� |
� Argentina� |
� Total� |
|
|
Balance - Dec 31, 2011 |
|
634,014 |
141,591 |
128,035 |
67,945 |
169,405 |
20,587 |
1,161,577 |
|
|
|
Extensions and Discoveries |
|
84,656 |
18,935 |
36,188 |
6,277 |
346 |
1,133 |
147,535 |
|
|
|
Purchases |
|
15,942 |
188 |
- |
276 |
2,143 |
- |
18,549 |
|
|
|
Revisions |
|
(7,474) |
(4,577) |
(3,678) |
(66) |
(928) |
671 |
(16,052) |
|
|
|
Production |
|
(49,089) |
(5,792) |
(36,511) |
(10,571) |
(23,312) |
(3,565) |
(128,840) |
|
|
|
Sales |
|
(144) |
- |
- |
- |
- |
- |
(144) |
|
|
Balance - Dec 31, 2012 |
|
677,905 |
150,345 |
124,034 |
63,861 |
147,654 |
18,826 |
1,182,625 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
� NGL's (Mbbl)� |
|
|
|
|
|
|
|
|
|
|
|
|
|
� U.S.� |
� Canada� |
� Egypt� |
� Australia� |
� North Sea� |
� Argentina� |
� Total� |
|
|
Balance - Dec 31, 2011 |
|
160,033 |
31,450 |
- |
- |
9,262 |
7,153 |
207,898 |
|
|
|
Extensions and Discoveries |
|
71,965 |
7,655 |
- |
- |
246 |
- |
79,866 |
|
|
|
Purchases |
|
230 |
9 |
- |
- |
231 |
- |
470 |
|
|
|
Revisions |
|
(4,559) |
(2,569) |
- |
- |
(6,329) |
(169) |
(13,626) |
|
|
|
Production |
|
(12,272) |
(2,291) |
- |
- |
(592) |
(1,101) |
(16,256) |
|
|
Balance - Dec 31, 2012 |
|
215,397 |
34,254 |
- |
- |
2,818 |
5,883 |
258,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
� Oil & NGL's� |
|
|
|
|
|
|
|
|
|
|
|
|
|
� U.S.� |
� Canada� |
� Egypt� |
� Australia� |
� North Sea� |
� Argentina� |
� Total� |
|
|
Balance - Dec 31, 2011 |
|
794,047 |
173,041 |
128,035 |
67,945 |
178,667 |
27,740 |
1,369,475 |
|
|
|
Extensions and Discoveries |
|
156,621 |
26,590 |
36,188 |
6,277 |
592 |
1,133 |
227,401 |
|
|
|
Purchases |
|
16,172 |
197 |
- |
276 |
2,374 |
- |
19,019 |
|
|
|
Revisions |
|
(12,033) |
(7,146) |
(3,678) |
(66) |
(7,257) |
502 |
(29,678) |
|
|
|
Production |
|
(61,361) |
(8,083) |
(36,511) |
(10,571) |
(23,904) |
(4,666) |
(145,096) |
|
|
|
Sales |
|
(144) |
- |
- |
- |
- |
- |
(144) |
|
|
Balance - Dec 31, 2012 |
|
893,302 |
184,599 |
124,034 |
63,861 |
150,472 |
24,709 |
1,440,977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
� GAS (MMcf)� |
|
|
|
|
|
|
|
|
|
|
|
|
|
� U.S.� |
� Canada� |
� Egypt� |
� Australia� |
� North Sea� |
� Argentina� |
� Total� |
|
|
Balance - Dec 31, 2011 |
|
2,976,211 |
3,547,511 |
982,966 |
1,569,584 |
108,442 |
537,559 |
9,722,273 |
|
|
|
Extensions and Discoveries |
|
365,863 |
252,130 |
55,967 |
176,969 |
16,397 |
2,623 |
869,949 |
|
|
|
Purchases |
|
313,885 |
2,503 |
- |
1,745 |
8,494 |
- |
326,627 |
|
|
|
Revisions |
|
(156,840) |
(1,443,989) |
(13,974) |
101 |
- |
496 |
(1,614,206) |
|
|
|
Production |
|
(312,600) |
(219,849) |
(129,468) |
(78,329) |
(21,029) |
(78,128) |
(839,403) |
|
|
|
Sales |
|
(612) |
(422) |
- |
- |
- |
- |
(1,034) |
|
|
Balance - Dec 31, 2012 |
|
3,185,907 |
2,137,884 |
895,491 |
1,670,070 |
112,304 |
462,550 |
8,464,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL BOE (Mboe) |
|
|
|
|
|
|
|
|
|
|
|
|
|
� U.S.� |
� Canada� |
� Egypt� |
� Australia� |
� North Sea� |
� Argentina� |
� Total� |
|
|
Balance - Dec 31, 2011 |
|
1,290,082 |
764,293 |
291,863 |
329,542 |
196,741 |
117,333 |
2,989,854 |
|
|
|
Extensions and Discoveries |
|
217,598 |
68,612 |
45,516 |
35,772 |
3,325 |
1,570 |
372,393 |
|
|
|
Purchases |
|
68,486 |
614 |
- |
567 |
3,790 |
- |
73,457 |
|
|
|
Revisions |
|
(38,173) |
(247,811) |
(6,007) |
(49) |
(7,257) |
585 |
(298,712) |
|
|
|
Production |
|
(113,461) |
(44,725) |
(58,089) |
(23,626) |
(27,409) |
(17,687) |
(284,997) |
|
|
|
Sales |
|
(246) |
(70) |
- |
- |
- |
- |
(316) |
|
|
Balance - Dec 31, 2012 |
|
1,424,286 |
540,913 |
273,283 |
342,206 |
169,190 |
101,801 |
2,851,679 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proved developed reserves: |
|
|
|
|
|
|
|
|
|
|
|
Oil + NGL's (Mbbls) |
|
629,345 |
101,691 |
106,746 |
29,053 |
122,073 |
20,852 |
1,009,760 |
|
|
|
Gas (Mboe) |
|
392,264 |
289,109 |
115,073 |
99,342 |
15,554 |
60,843 |
972,185 |
|
|
Balance - Dec 31, 2012 (Mboe) |
|
1,021,609 |
390,800 |
221,819 |
128,395 |
137,627 |
81,695 |
1,981,945 |
|
�
|
APACHE CORPORATION |
|
|
OIL & GAS RESERVES AND COSTS� |
|
|
For the Year Ended December 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reserve Additions (Mboe) |
|
|
|
|
|
|
|
|
|
|
|
|
|
� U.S.� |
� Canada� |
� Egypt� |
� Australia� |
� North Sea� |
� Argentina� |
� Other� |
� Total� |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Extensions and Discoveries |
|
217,598 |
68,612 |
45,516 |
35,772 |
3,325 |
1,570 |
- |
372,393 |
|
|
Purchases |
|
68,486 |
614 |
- |
567 |
3,790 |
- |
- |
73,457 |
|
|
Additions excluding revisions |
|
286,084 |
69,226 |
45,516 |
36,339 |
7,115 |
1,570 |
- |
445,850 |
|
|
Revisions |
|
(38,173) |
(247,811) |
(6,007) |
(49) |
(7,257) |
585 |
- |
(298,712) |
|
|
Total� |
|
247,911 |
(178,585) |
39,509 |
36,290 |
(142) |
2,155 |
- |
147,138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Cost Information (Non-GAAP) (in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
� U.S.� |
� Canada� |
� Egypt� |
� Australia� |
� North Sea� |
� Argentina� |
� Other� |
� Total� |
|
|
Exploration & Development, excluding Capitalized Interest and Asset Retirement Cost (ARC) (1) |
|
|
|
|
|
|
|
|
|
|
$ � � 5,151 |
$ � � � � 590 |
$ � 1,074 |
$ � � � � 873 |
$ � � � � � 886 |
$ � � � � 289 |
$ � � 98 |
$ � � 8,961 |
|
|
Acquisitions, excluding ARC - Acquired |
|
|
|
|
|
|
|
|
|
|
Proved |
|
1,071 |
5 |
28 |
4 |
59 |
- |
- |
1,167 |
|
|
Unproved |
|
2,329 |
- |
- |
- |
26 |
- |
- |
2,355 |
|
|
� � � � Total |
|
$ � � 8,551 |
$ � � � � 595 |
$ � 1,102 |
$ � � � � 877 |
$ � � � � � 971 |
$ � � � � 289 |
$ � � 98 |
$ � 12,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)� Includes capital spending of $1.1 billion for leasehold and $365 million for seismic. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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� |
� Australia� |
� North Sea� |
� Argentina� |
� Other� |
� Total� |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exploration & Development Costs (in millions) |
|
$ � � 5,834 |
$ � � � � 873 |
$ � 1,090 |
$ � � 1,064 |
$ � � � � � 948 |
$ � � � � 318 |
$ � � 98 |
$ � 10,225 |
|
|
Less: Capitalized Interest |
|
(215) |
(38) |
(16) |
(12) |
(24) |
(11) |
- |
(316) |
|
|
Less: ARC |
|
(468) |
(245) |
- |
(179) |
(38) |
(18) |
- |
(948) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
� � Total Adds |
|
$ � � 5,151 |
$ � � � � 590 |
$ � 1,074 |
$ � � � � 873 |
$ � � � � � 886 |
$ � � � � 289 |
$ � � 98 |
$ � � 8,961 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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� |
� Australia� |
� North Sea� |
� Argentina� |
� Other� |
� Total� |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Acquisition Costs (in millions) |
|
|
|
|
|
|
|
|
|
|
|
Proved |
|
$ � � 1,076 |
$ � � � � � � 5 |
$ � � � 28 |
$ � � � � � 32 |
$ � � � � � 110 |
$ � � � � � � - |
$ � � � - |
$ � � 1,251 |
|
|
Unproved |
|
2,329 |
- |
- |
- |
26 |
|
- |
2,355 |
|
|
Less: ARC - Acquired |
|
(5) |
- |
- |
(28) |
(51) |
- |
- |
(84) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions, excluding ARC - Acquired |
$ � � 3,400 |
$ � � � � � � 5 |
$ � � � 28 |
$ � � � � � � 4 |
$ � � � � � � 85 |
$ � � � � � � - |
$ � � � - |
$ � � 3,522 |
|
�
APA-F
SOURCE Apache Corporation
|