APACHE CORP - FORM 8-K - EX-99.1

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8-K - 8-K - APACHE CORP	d675723d8k.htm

Exhibit 99.1


		NEWS RELEASE

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 – 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.

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.

LOGO

APACHE REPORTS FOURTH-QUARTER, FULL-YEAR 2013 RESULTS — ADD 1

“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.

APACHE REPORTS FOURTH-QUARTER, FULL-YEAR 2013 RESULTS — ADD 2

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.

APACHE REPORTS FOURTH-QUARTER, FULL-YEAR 2013 RESULTS — ADD 3

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.

APACHE REPORTS FOURTH-QUARTER, FULL-YEAR 2013 RESULTS — ADD 4

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.

Contacts


Media:	(713) 296-6100	Patrick Cassidy
	(713) 296-7276	Bill Mintz
	(713) 296-6662	Bob Dye

Investor:	(281) 302-2286	Brady Parish
		Castlen Kennedy
		Christopher Cortez
		Alicia Reis

Website: www.apachecorp.com

APACHE CORPORATION

STATEMENT OF CONSOLIDATED OPERATIONS

(In millions, except per share data)


	For the Quarter Ended December 31,						For the Year 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 Ended December 31,					For the Year 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 Ended December 31,					For the Year 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 Ended December 31,				For the Year 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
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 Ended December 31,						For the Year 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	%

APACHE CORPORATION

NON-GAAP FINANCIAL MEASURES

(In millions, except per share data)

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 Ended December 31,					For the Year 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.

APACHE CORP - FORM 8-K - EX-99.1 - February 13, 2014

Attached files

APACHE CORP Reports