"I am pleased to report that Apache made excellent progress toward achieving the ambitious 2015 goals we laid out earlier this year," said
During the quarter, Apache closed the sales of its LNG business and its remaining oil and gas assets in
Apache has made significant progress on its cost structure through widespread efforts across the organization. In
Asset-sale proceeds and liquidity
Apache received
Overhead-cost reductions and organizational restructuring
Management has taken a proactive and disciplined approach toward improving Apache's organizational structure and efficiency. During the quarter, the company announced and implemented key organizational changes to better align its operational and technical teams with its refocused asset base. These changes include transitioning to an operating structure that will enable the allocation of resources and personnel quickly and efficiently in response to changing industry conditions. In addition, Apache has consolidated its technical expertise into centers of excellence, which will support the operating regions and strengthen the ability to share best practices around the globe.
Christmann noted, "We are implementing multiple overhead-reduction initiatives throughout the year and are on track to achieve a 25 to 30 percent reduction in cash G&A costs by year-end. We continue to work to identify further savings." Following asset divestments and other initiatives to streamline the organization, headcount has been reduced by approximately 20 percent since the end of 2014.
Second-quarter capital spending and activity
Total capital expenditures (before leasehold acquisitions, capitalized interest, noncontrolling interest, LNG and
Second-quarter 2015 regional activity
"Apache's second-quarter production performance was very strong both domestically and internationally," Christmann remarked. "
2015 planned activity increase
Greater capital efficiencies and lower costs are enabling the company to increase its onshore North American activity levels in the second half of the year. In
"This increase in activity during the second half of 2015 is not expected to have a material impact on our full-year 2015 production; however, it will establish a positive production trajectory in the fourth quarter and heading in to 2016," Christmann concluded.
Conference call
A replay of the conference call will be available for seven days following the call. The number for the replay is 855-859-2056 or 404-537-3406 for international calls. The conference access code is 31405369.
Sign up for email alerts to be reminded of the webcast at http://investor.apachecorp.com/alerts.cfm.
Additional Information
Additional information follows, including reconciliations of adjusted earnings, adjusted EBITDA and net debt (non-GAAP financial measures) to GAAP measures and information regarding pro forma production. Apache's quarterly supplement is available at www.apachecorp.com/financialdata.
About Apache
Non-GAAP financial measures
Apache's financial information includes information prepared in conformity with generally accepted accounting standards (GAAP) as well as non-GAAP information. It is management's intent to provide non-GAAP financial information to enhance understanding of our consolidated financial information as prepared in accordance with GAAP. Adjusted earnings, adjusted EBITDA and net debt are non-GAAP measures. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure.
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," "guidance" 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 capital plans, drilling plans, production expectations, asset sales and monetizations. 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 2014 Form 10-K filed with the
Website: www.apachecorp.com
|
|||||||||
STATEMENT OF CONSOLIDATED OPERATIONS |
|||||||||
(Unaudited) |
|||||||||
(In millions, except per share data) |
|||||||||
For the Quarter |
For the Six Months |
||||||||
Ended |
Ended |
||||||||
2015 |
2014 |
2015 |
2014 |
||||||
REVENUES AND OTHER: |
|||||||||
Oil revenues |
$ 1,599 |
$ 2,797 |
$ 2,879 |
$ 5,442 |
|||||
Gas revenues |
295 |
505 |
595 |
1,065 |
|||||
NGL revenues |
58 |
169 |
116 |
355 |
|||||
Oil and gas production revenues |
1,952 |
3,471 |
3,590 |
6,862 |
|||||
Derivative instrument gains (losses), net |
- |
(174) |
- |
(194) |
|||||
Other |
25 |
(8) |
17 |
9 |
|||||
1,977 |
3,289 |
3,607 |
6,677 |
||||||
COSTS AND EXPENSES: |
|||||||||
Depreciation, depletion and amortization |
|||||||||
Oil and gas property and equipment |
|||||||||
Recurring |
923 |
1,074 |
1,922 |
2,096 |
|||||
Additional |
5,816 |
203 |
13,036 |
203 |
|||||
Other assets |
83 |
81 |
166 |
159 |
|||||
Asset retirement obligation accretion |
36 |
38 |
72 |
76 |
|||||
Lease operating expenses |
467 |
560 |
948 |
1,108 |
|||||
Gathering and transportation |
49 |
66 |
105 |
136 |
|||||
Taxes other than income |
55 |
177 |
128 |
358 |
|||||
General and administrative |
111 |
113 |
193 |
221 |
|||||
Transaction, reorganization & separation costs |
66 |
14 |
120 |
32 |
|||||
Financing costs, net |
63 |
52 |
133 |
97 |
|||||
7,669 |
2,378 |
16,823 |
4,486 |
||||||
INCOME (LOSS) BEFORE INCOME TAXES |
(5,692) |
911 |
(13,216) |
2,191 |
|||||
Current income tax provision |
665 |
373 |
580 |
740 |
|||||
Deferred income tax provision (benefit) |
(1,525) |
(19) |
(4,460) |
144 |
|||||
INCOME (LOSS) FROM CONTINUING OPS INCLUDING NONCONTROLLING INTEREST |
(4,832) |
557 |
(9,336) |
1,307 |
|||||
Income (Loss) from discontinued operations, net of tax |
(732) |
56 |
(864) |
(360) |
|||||
INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST |
(5,564) |
613 |
(10,200) |
947 |
|||||
Net income attributable to noncontrolling interest |
36 |
108 |
51 |
206 |
|||||
INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK |
$ (5,600) |
$ 505 |
$ (10,251) |
$ 741 |
|||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS |
|||||||||
Net income (loss) from continuing operations attributable to common shareholders |
$ (4,868) |
$ 449 |
$ (9,387) |
$ 1,101 |
|||||
Net income (loss) from discontinued operations |
(732) |
56 |
(864) |
(360) |
|||||
Net income (loss) attributable to common shareholders |
$ (5,600) |
$ 505 |
$ (10,251) |
$ 741 |
|||||
BASIC NET INCOME (LOSS) PER COMMON SHARE: |
|||||||||
Basic net income (loss) from continuing operations per share |
$ (12.89) |
$ 1.17 |
$ (24.88) |
$ 2.83 |
|||||
Basic net income (loss) from discontinued operations per share |
(1.94) |
0.14 |
(2.29) |
(0.93) |
|||||
Basic net income (loss) per share |
$ (14.83) |
$ 1.31 |
$ (27.17) |
$ 1.90 |
|||||
DILUTED NET INCOME (LOSS) PER COMMON SHARE: |
|||||||||
Diluted net income (loss) from continuing operations per share |
$ (12.89) |
$ 1.17 |
$ (24.88) |
$ 2.82 |
|||||
Diluted net income (loss) from discontinued operations per share |
(1.94) |
0.14 |
(2.29) |
(0.93) |
|||||
Diluted net income (loss) per share |
$ (14.83) |
$ 1.31 |
$ (27.17) |
$ 1.89 |
|||||
WEIGHTED-AVERAGE NUMBER OF COMMON |
|||||||||
SHARES OUTSTANDING: |
|||||||||
Basic |
378 |
385 |
377 |
390 |
|||||
Diluted |
378 |
387 |
377 |
392 |
|||||
DIVIDENDS DECLARED PER COMMON SHARE |
$ 0.25 |
$ 0.25 |
$ 0.50 |
$ 0.50 |
|
||||||||||||||||||
PRODUCTION INFORMATION |
||||||||||||||||||
% Change |
||||||||||||||||||
2Q15 |
1Q15 |
2Q14 |
2Q15 to 1Q15 |
2Q15 to 2Q14 |
YTD 2015 |
YTD 2014 |
||||||||||||
OIL VOLUME - Barrels per day |
||||||||||||||||||
Permian |
97,814 |
94,461 |
90,536 |
4% |
8% |
96,146 |
89,437 |
|||||||||||
Midcontinent (formerly Central) |
16,491 |
18,509 |
21,987 |
-11% |
-25% |
17,495 |
21,837 |
|||||||||||
|
7,940 |
7,784 |
10,977 |
2% |
-28% |
7,862 |
10,976 |
|||||||||||
|
15,791 |
16,875 |
17,981 |
-6% |
-12% |
16,330 |
17,786 |
|||||||||||
N.A. Onshore |
138,036 |
137,629 |
141,481 |
0% |
-2% |
137,833 |
140,036 |
|||||||||||
|
5,453 |
5,885 |
6,896 |
-7% |
-21% |
5,668 |
6,592 |
|||||||||||
GOM Shelf |
- |
- |
2 |
NM |
NM |
- |
339 |
|||||||||||
|
99,975 |
91,971 |
88,643 |
9% |
13% |
95,995 |
88,370 |
|||||||||||
|
58,873 |
61,699 |
61,610 |
-5% |
-4% |
60,279 |
60,358 |
|||||||||||
International and Offshore (1) |
164,301 |
159,555 |
157,151 |
3% |
5% |
161,942 |
155,659 |
|||||||||||
Total (1) |
302,337 |
297,184 |
298,632 |
2% |
1% |
299,775 |
295,695 |
|||||||||||
TOTAL LIQUIDS - Barrels per day |
||||||||||||||||||
Permian |
133,043 |
122,445 |
119,712 |
9% |
11% |
127,773 |
116,666 |
|||||||||||
Midcontinent |
32,359 |
34,654 |
45,725 |
-7% |
-29% |
33,501 |
45,931 |
|||||||||||
|
11,264 |
10,328 |
13,522 |
9% |
-17% |
10,798 |
13,460 |
|||||||||||
|
21,616 |
22,728 |
23,902 |
-5% |
-10% |
22,169 |
24,626 |
|||||||||||
N.A. Onshore |
198,282 |
190,155 |
202,861 |
4% |
-2% |
194,241 |
200,683 |
|||||||||||
|
5,976 |
6,433 |
8,062 |
-7% |
-26% |
6,203 |
7,591 |
|||||||||||
GOM Shelf |
- |
- |
2 |
NM |
NM |
- |
384 |
|||||||||||
|
101,189 |
93,002 |
89,527 |
9% |
13% |
97,118 |
88,930 |
|||||||||||
|
59,699 |
62,585 |
62,977 |
-5% |
-5% |
61,135 |
61,588 |
|||||||||||
International and Offshore (1) |
166,864 |
162,020 |
160,568 |
3% |
4% |
164,456 |
158,493 |
|||||||||||
Total (1) |
365,146 |
352,175 |
363,429 |
4% |
0% |
358,697 |
359,176 |
|||||||||||
NATURAL GAS VOLUME - Mcf per day |
||||||||||||||||||
Permian |
234,379 |
216,968 |
213,192 |
8% |
10% |
225,722 |
214,519 |
|||||||||||
Midcontinent |
175,967 |
190,214 |
264,948 |
-7% |
-34% |
183,051 |
262,636 |
|||||||||||
|
16,252 |
7,659 |
95,765 |
112% |
-83% |
11,979 |
97,494 |
|||||||||||
|
282,971 |
287,556 |
316,740 |
-2% |
-11% |
285,251 |
347,057 |
|||||||||||
N.A. Onshore |
709,569 |
702,397 |
890,645 |
1% |
-20% |
706,003 |
921,706 |
|||||||||||
|
20,190 |
20,977 |
22,804 |
-4% |
-11% |
20,581 |
19,517 |
|||||||||||
GOM Shelf |
- |
- |
261 |
NM |
NM |
- |
674 |
|||||||||||
|
405,544 |
363,989 |
367,950 |
11% |
10% |
384,881 |
372,628 |
|||||||||||
|
56,367 |
50,445 |
54,848 |
12% |
3% |
53,423 |
49,986 |
|||||||||||
International and Offshore (1) |
482,101 |
435,411 |
445,863 |
11% |
8% |
458,885 |
442,805 |
|||||||||||
Total (1) |
1,191,670 |
1,137,808 |
1,336,508 |
5% |
-11% |
1,164,888 |
1,364,511 |
|||||||||||
BOE per day |
||||||||||||||||||
Permian |
172,106 |
158,606 |
155,244 |
9% |
11% |
165,394 |
152,420 |
|||||||||||
Midcontinent |
61,688 |
66,357 |
89,883 |
-7% |
-31% |
64,009 |
89,704 |
|||||||||||
|
13,973 |
11,604 |
29,483 |
20% |
-53% |
12,795 |
29,710 |
|||||||||||
|
68,778 |
70,653 |
76,692 |
-3% |
-10% |
69,711 |
82,469 |
|||||||||||
N.A. Onshore |
316,545 |
307,220 |
351,302 |
3% |
-10% |
311,909 |
354,303 |
|||||||||||
|
9,340 |
9,930 |
11,862 |
-6% |
-21% |
9,633 |
10,843 |
|||||||||||
GOM Shelf |
- |
- |
46 |
NM |
NM |
- |
496 |
|||||||||||
|
168,779 |
153,667 |
150,853 |
10% |
12% |
161,264 |
151,035 |
|||||||||||
|
69,094 |
70,993 |
72,118 |
-3% |
-4% |
70,038 |
69,918 |
|||||||||||
International and Offshore (1) |
247,213 |
234,590 |
234,879 |
5% |
5% |
240,935 |
232,292 |
|||||||||||
Total (1) |
563,758 |
541,810 |
586,181 |
4% |
-4% |
552,844 |
586,595 |
|||||||||||
Total excluding noncontrolling interests |
507,699 |
490,561 |
535,934 |
3% |
-5% |
499,177 |
536,499 |
|||||||||||
(1)Includes net production volumes attributed to our noncontrolling partner in |
||||||||||||||||||
Oil (b/d) |
33,247 |
30,671 |
29,508 |
31,966 |
29,288 |
|||||||||||||
Gas (Mcf/d) |
134,445 |
121,408 |
122,665 |
127,963 |
123,726 |
|||||||||||||
NGL (b/d) |
404 |
343 |
295 |
374 |
187 |
|||||||||||||
(2)Egypt Gross Production - BOE per day |
349,398 |
343,762 |
351,059 |
2% |
0% |
346,597 |
351,944 |
|||||||||||
Discontinued Operations: |
||||||||||||||||||
Oil (b/d) |
9,849 |
20,905 |
14,555 |
15,346 |
19,107 |
|||||||||||||
Gas (Mcf/d) |
149,336 |
230,691 |
210,470 |
189,789 |
283,402 |
|||||||||||||
NGL (b/d) |
- |
- |
- |
- |
640 |
|||||||||||||
BOE/d |
34,738 |
59,353 |
49,633 |
46,978 |
66,981 |
|
||||||||||||||||||
PRO FORMA PRODUCTION INFORMATION |
||||||||||||||||||
Pro forma production excludes certain items that management believes affect the comparability of operating results for the periods presented. Pro forma production excludes production attributable to 1) divested assets, 2) noncontrolling interest in |
||||||||||||||||||
% Change |
||||||||||||||||||
2Q15 |
1Q15 |
2Q14 |
2Q15 to 1Q15 |
2Q15 to 2Q14 |
YTD 2015 |
YTD 2014 |
||||||||||||
OIL VOLUME - Barrels per day |
||||||||||||||||||
Permian |
97,814 |
94,461 |
90,536 |
4% |
8% |
96,146 |
89,437 |
|||||||||||
Midcontinent (formerly Central) |
16,515 |
18,514 |
17,222 |
-11% |
-4% |
17,509 |
16,553 |
|||||||||||
|
7,937 |
7,752 |
2,893 |
2% |
174% |
7,845 |
2,873 |
|||||||||||
|
15,776 |
16,817 |
17,817 |
-6% |
-11% |
16,294 |
17,614 |
|||||||||||
N.A. Onshore |
138,042 |
137,544 |
128,468 |
0% |
7% |
137,794 |
126,477 |
|||||||||||
|
5,453 |
5,885 |
6,896 |
-7% |
-21% |
5,668 |
6,592 |
|||||||||||
|
54,977 |
54,558 |
43,117 |
1% |
28% |
54,769 |
43,514 |
|||||||||||
|
58,164 |
59,818 |
58,971 |
-3% |
-1% |
58,986 |
57,039 |
|||||||||||
International and Offshore |
118,594 |
120,261 |
108,984 |
-1% |
9% |
119,423 |
107,145 |
|||||||||||
Total |
256,636 |
257,805 |
237,452 |
0% |
8% |
257,217 |
233,622 |
|||||||||||
TOTAL LIQUIDS - Barrels per day |
||||||||||||||||||
Permian |
133,043 |
122,445 |
119,712 |
9% |
11% |
127,773 |
116,665 |
|||||||||||
Midcontinent |
32,265 |
34,773 |
32,990 |
-7% |
-2% |
33,512 |
32,116 |
|||||||||||
|
11,266 |
10,204 |
3,712 |
10% |
204% |
10,738 |
3,571 |
|||||||||||
|
21,575 |
22,670 |
23,257 |
-5% |
-7% |
22,120 |
23,511 |
|||||||||||
N.A. Onshore |
198,149 |
190,092 |
179,671 |
4% |
10% |
194,143 |
175,863 |
|||||||||||
|
5,976 |
6,433 |
8,062 |
-7% |
-26% |
6,203 |
7,591 |
|||||||||||
|
55,648 |
55,170 |
43,572 |
1% |
28% |
55,411 |
43,805 |
|||||||||||
|
58,966 |
60,657 |
60,169 |
-3% |
-2% |
59,807 |
58,057 |
|||||||||||
International and Offshore |
120,590 |
122,260 |
111,803 |
-1% |
8% |
121,421 |
109,453 |
|||||||||||
Total |
318,739 |
312,352 |
291,474 |
2% |
9% |
315,564 |
285,316 |
|||||||||||
NATURAL GAS VOLUME - Mcf per day |
||||||||||||||||||
Permian |
234,380 |
216,968 |
213,192 |
8% |
10% |
225,721 |
214,519 |
|||||||||||
Midcontinent |
176,345 |
189,967 |
175,416 |
-7% |
1% |
183,119 |
170,782 |
|||||||||||
|
16,333 |
9,190 |
8,892 |
78% |
84% |
12,781 |
9,107 |
|||||||||||
|
282,651 |
285,520 |
287,603 |
-1% |
-2% |
284,078 |
289,169 |
|||||||||||
N.A. Onshore |
709,709 |
701,645 |
685,103 |
1% |
4% |
705,699 |
683,577 |
|||||||||||
|
20,190 |
20,977 |
22,817 |
-4% |
-12% |
20,581 |
19,523 |
|||||||||||
|
233,797 |
223,548 |
181,791 |
5% |
29% |
228,701 |
187,310 |
|||||||||||
|
55,489 |
49,325 |
50,541 |
12% |
10% |
52,424 |
44,130 |
|||||||||||
International and Offshore |
309,476 |
293,850 |
255,149 |
5% |
21% |
301,706 |
250,963 |
|||||||||||
Total |
1,019,185 |
995,495 |
940,252 |
2% |
8% |
1,007,405 |
934,540 |
|||||||||||
BOE per day |
||||||||||||||||||
Permian |
172,106 |
158,606 |
155,244 |
9% |
11% |
165,393 |
152,419 |
|||||||||||
Midcontinent |
61,655 |
66,435 |
62,225 |
-7% |
-1% |
64,032 |
60,580 |
|||||||||||
|
13,988 |
11,736 |
5,194 |
19% |
169% |
12,868 |
5,089 |
|||||||||||
|
68,684 |
70,257 |
71,191 |
-2% |
-4% |
69,466 |
71,706 |
|||||||||||
N.A. Onshore |
316,433 |
307,034 |
293,854 |
3% |
8% |
311,759 |
289,794 |
|||||||||||
|
9,340 |
9,930 |
11,865 |
-6% |
-21% |
9,633 |
10,845 |
|||||||||||
|
94,615 |
92,428 |
73,871 |
2% |
28% |
93,527 |
75,023 |
|||||||||||
|
68,214 |
68,878 |
68,592 |
-1% |
-1% |
68,544 |
65,412 |
|||||||||||
International and Offshore |
172,169 |
171,236 |
154,328 |
1% |
12% |
171,704 |
151,280 |
|||||||||||
Total |
488,602 |
478,270 |
448,182 |
2% |
9% |
483,463 |
441,074 |
|
||||||||||||||
PRICE INFORMATION |
||||||||||||||
2Q15 |
1Q15 |
2Q14 |
YTD 2015 |
YTD 2014 |
||||||||||
AVERAGE OIL PRICE PER BARREL |
||||||||||||||
Permian |
$ 53.77 |
$ 44.44 |
$ 94.33 |
$ 49.21 |
$ 94.05 |
|||||||||
Midcontinent (formerly Central) |
52.46 |
44.50 |
100.39 |
48.27 |
97.10 |
|||||||||
|
56.79 |
47.92 |
103.81 |
52.42 |
102.84 |
|||||||||
|
52.22 |
39.76 |
94.66 |
45.81 |
91.47 |
|||||||||
N.A. Onshore |
53.56 |
44.07 |
96.06 |
48.85 |
94.91 |
|||||||||
|
57.69 |
45.87 |
102.63 |
51.59 |
102.06 |
|||||||||
|
60.83 |
52.29 |
109.74 |
56.76 |
108.24 |
|||||||||
|
64.03 |
49.95 |
109.33 |
56.86 |
108.00 |
|||||||||
Total |
58.09 |
47.87 |
102.95 |
53.05 |
101.69 |
|||||||||
AVERAGE NATURAL GAS PRICE PER MCF |
||||||||||||||
Permian |
$ 2.24 |
$ 2.44 |
$ 4.48 |
$ 2.33 |
$ 4.63 |
|||||||||
Midcontinent |
2.41 |
2.93 |
4.49 |
2.68 |
4.84 |
|||||||||
|
1.93 |
1.42 |
4.72 |
1.77 |
4.83 |
|||||||||
|
2.34 |
2.58 |
4.21 |
2.46 |
4.30 |
|||||||||
N.A. Onshore |
2.31 |
2.60 |
4.41 |
2.45 |
4.62 |
|||||||||
|
2.61 |
2.92 |
4.35 |
2.77 |
4.71 |
|||||||||
|
2.91 |
2.92 |
2.96 |
2.92 |
2.99 |
|||||||||
|
7.35 |
7.40 |
7.75 |
7.37 |
9.07 |
|||||||||
Total |
2.73 |
2.93 |
4.15 |
2.82 |
4.31 |
|||||||||
AVERAGE NGL PRICE PER BARREL |
||||||||||||||
Permian |
$ 10.28 |
$ 11.62 |
$ 28.46 |
$ 10.87 |
$ 29.85 |
|||||||||
Midcontinent |
8.82 |
9.65 |
25.03 |
9.23 |
27.74 |
|||||||||
|
13.75 |
12.17 |
27.86 |
13.07 |
31.76 |
|||||||||
|
4.41 |
11.09 |
31.67 |
7.74 |
37.56 |
|||||||||
N.A. Onshore |
9.52 |
10.98 |
27.42 |
10.20 |
29.96 |
|||||||||
|
14.72 |
13.77 |
31.73 |
14.24 |
31.84 |
|||||||||
|
28.82 |
36.29 |
57.67 |
32.23 |
59.05 |
|||||||||
|
30.94 |
24.74 |
61.81 |
27.75 |
69.77 |
|||||||||
Total |
10.21 |
11.71 |
28.64 |
10.91 |
30.86 |
|||||||||
Discontinued Operations: |
||||||||||||||
Oil price ($/Bbl) |
$ 63.60 |
$ 43.17 |
$ 115.34 |
$ 49.76 |
$ 106.35 |
|||||||||
Gas price ($/Mcf) |
3.88 |
4.19 |
4.40 |
4.07 |
4.07 |
|||||||||
NGL price ($/Bbl) |
- |
- |
- |
- |
24.57 |
|
|||||||||||
SUMMARY BALANCE SHEET INFORMATION |
|||||||||||
(Unaudited) |
|||||||||||
(In millions) |
|||||||||||
|
|
||||||||||
2015 |
2014 |
||||||||||
Cash and Cash Equivalents |
$ 2,950 |
$ 769 |
|||||||||
Assets Held for Sale |
- |
1,628 |
|||||||||
Other Current Assets |
2,543 |
4,018 |
|||||||||
Property and Equipment, net |
28,315 |
48,076 |
|||||||||
Goodwill |
87 |
87 |
|||||||||
Other Assets |
1,417 |
1,374 |
|||||||||
Total Assets |
$ 35,312 |
$ 55,952 |
|||||||||
Other Current Liabilities |
$ 2,383 |
$ 3,664 |
|||||||||
Long-Term Debt |
9,676 |
11,245 |
|||||||||
Deferred Credits and Other Noncurrent Liabilities |
5,498 |
12,906 |
|||||||||
Apache Shareholders' Equity |
15,544 |
25,937 |
|||||||||
Noncontrolling interest |
2,211 |
2,200 |
|||||||||
Total Liabilities and Shareholders' Equity |
$ 35,312 |
$ 55,952 |
|||||||||
Common shares outstanding at end of period |
377 |
377 |
|||||||||
% of total debt-to-capitalization |
35% |
29% |
|
|||||||||||
SUMMARY OF COSTS INCURRED AND GTP CAPITAL INVESTMENTS |
|||||||||||
(Unaudited) |
|||||||||||
(In millions) |
|||||||||||
For the Quarter |
For the Six Months |
||||||||||
Ended |
Ended |
||||||||||
2015 |
2014 |
2015 |
2014 |
||||||||
Costs Incurred in Oil and Gas Property: |
|||||||||||
Acquisitions |
|||||||||||
Proved |
$ - |
$ 3 |
$ - |
$ 5 |
|||||||
Unproved |
36 |
79 |
128 |
123 |
|||||||
Exploration and Development |
1,023 |
2,475 |
2,441 |
4,984 |
|||||||
1,059 |
2,557 |
2,569 |
5,112 |
||||||||
GTP Capital Investments: |
|||||||||||
GTP Facilities |
36 |
378 |
260 |
723 |
|||||||
Total Costs Incurred and GTP Capital Investments |
$ 1,095 |
$ 2,935 |
$ 2,829 |
$ 5,835 |
|
NON-GAAP FINANCIAL MEASURES |
(In millions, except per share data) |
Reconciliation of income attributable to common stock to adjusted earnings |
Adjusted earnings and adjusted earnings per share are non-GAAP financial measures. Adjusted earnings generally exclude certain items that management believes affect the comparability of operating results or are not related to Apache's ongoing operations. Management uses adjusted earnings to evaluate the company's operational trends and performance relative to other oil and gas 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. |
For the Quarter |
For the Six Months |
||||||||
Ended |
Ended |
||||||||
2015 |
2014 |
2015 |
2014 |
||||||
Income (Loss) Attributable to Common Stock (GAAP) |
$ (5,600) |
$ 505 |
$ (10,251) |
$ 741 |
|||||
Adjustments: |
|||||||||
Oil & gas property write-downs, net of tax |
3,734 |
77 |
8,438 |
77 |
|||||
Discontinued operations, net of tax |
732 |
(56) |
864 |
360 |
|||||
Tax adjustments (1) |
1,173 |
- |
758 |
(5) |
|||||
Transaction, reorganization & separation costs, net of tax |
43 |
9 |
78 |
21 |
|||||
Rig stacking costs, net of tax |
- |
10 |
28 |
10 |
|||||
Unrealized commodity derivative mark-to-market, net of tax |
- |
31 |
- |
(18) |
|||||
Adjusted Earnings (Non-GAAP) |
$ 82 |
$ 576 |
$ (85) |
$ 1,186 |
|||||
Net Income (Loss) per Common Share - Diluted (GAAP) |
$ (14.83) |
$ 1.31 |
$ (27.17) |
$ 1.89 |
|||||
Adjustments: |
|||||||||
Oil & gas property write-downs, net of tax |
9.87 |
0.20 |
22.37 |
0.20 |
|||||
Discontinued operations, net of tax |
1.94 |
(0.14) |
2.29 |
0.92 |
|||||
Tax adjustments (1) |
3.12 |
- |
2.00 |
(0.01) |
|||||
Transaction, reorganization & separation costs, net of tax |
0.12 |
0.02 |
0.21 |
0.05 |
|||||
Rig stacking costs, net of tax |
- |
0.02 |
0.07 |
0.02 |
|||||
Unrealized commodity derivative mark-to-market, net of tax |
- |
0.08 |
- |
(0.04) |
|||||
Adjusted Earnings Per Share - Diluted (Non-GAAP) |
$ 0.22 |
$ 1.49 |
$ (0.23) |
$ 3.03 |
|||||
Total income tax provision (GAAP) |
$ (860) |
$ 354 |
$ (3,880) |
$ 884 |
|||||
Adjustments: |
|||||||||
Tax impact on oil & gas property write-downs |
2,081 |
126 |
4,597 |
126 |
|||||
Tax impact on transaction, reorganization & separation costs |
23 |
5 |
41 |
11 |
|||||
Tax impact on rig stacking costs |
- |
5 |
15 |
5 |
|||||
Tax impact on unrealized commodity derivative mark-to-market |
- |
18 |
- |
(9) |
|||||
Tax adjustments (1) |
(1,173) |
- |
(758) |
5 |
|||||
Adjusted total income tax provision |
$ 71 |
$ 508 |
$ 15 |
$ 1,022 |
|||||
Adjusted Effective Tax Rate (Non-GAAP) |
37.6% |
42.7% |
NM |
42.3% |
|||||
(1) |
Tax adjustments are primarily related to a |
|
|||||||||
NON-GAAP FINANCIAL MEASURES |
|||||||||
(In millions, except per share data) |
|||||||||
Reconciliation of income (loss) before taxes to adjusted EBITDA |
|||||||||
Adjusted EBITDA is a non-GAAP financial measure. EBITDA is a widely accepted financial indicator of a company's ability to incur and service debt, fund capital expenditures, and make distributions to shareholders. Adjusted EBITDA generally excludes certain items that management believes affect the comparability of operating results or are not related to Apache's ongoing operations. Management uses adjusted EBITDA to evaluate the company's operational trends and performance relative to other oil and gas companies. |
|||||||||
For the Quarter |
For the Six Months |
||||||||
Ended |
Ended |
||||||||
2015 |
2014 |
2015 |
2014 |
||||||
Income (loss) before income taxes |
$ (5,692) |
$ 911 |
$ (13,216) |
$ 2,191 |
|||||
Adjustments: |
|||||||||
Depreciation, depletion and amortization |
|||||||||
Oil and gas property and equipment |
|||||||||
Recurring |
923 |
1,074 |
1,922 |
2,096 |
|||||
Additional |
5,816 |
203 |
13,036 |
203 |
|||||
Other assets |
83 |
81 |
166 |
159 |
|||||
Asset retirement obligation accretion |
36 |
38 |
72 |
76 |
|||||
Transaction, reorganization & separation costs |
66 |
14 |
120 |
32 |
|||||
Financing costs, net |
63 |
52 |
133 |
97 |
|||||
Rig stacking costs |
- |
15 |
43 |
15 |
|||||
Unrealized commodity derivative mark-to-market |
- |
48 |
- |
(27) |
|||||
Less: net income attributable to noncontrolling interests |
(36) |
(108) |
(51) |
(206) |
|||||
Adjusted EBITDA (Non-GAAP) |
$ 1,259 |
$ 2,328 |
$ 2,225 |
$ 4,636 |
|||||
Reconciliation of debt to net debt |
|||||||||
Net debt is a non-GAAP financial measure. Management uses net debt as a measure of the Company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivelents on hand. |
|||||||||
|
|
|
|||||||
2015 |
2015 |
2014 |
|||||||
Current debt |
$ - |
$ 2,598 |
$ - |
||||||
Long-term debt |
9,676 |
9,675 |
11,245 |
||||||
Total debt |
9,676 |
12,273 |
11,245 |
||||||
Cash |
2,950 |
229 |
769 |
||||||
Net debt |
$ 6,726 |
$ 12,044 |
$ 10,476 |
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