8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 22, 2018

 

 

APACHE CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   1-4300   41-0747868

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

2000 Post Oak Boulevard

Suite 100

Houston, Texas 77056-4400

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (713) 296-6000

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


The information in this Current Report on Form 8-K, including Exhibit 99.1 furnished herewith, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of Section 18, and shall not be incorporated by reference in any filing under the Securities Act or the Exchange Act, except as set forth by specific reference in such filing.

 

Item 2.02. Results of Operations and Financial Condition.

On February 22, 2018, Apache Corporation issued a press release announcing financial and operating results for the fiscal quarter and year ended December 31, 2017. The full text of the press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit No.    Description
99.1    Press Release of Apache Corporation dated February 22, 2018.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    APACHE CORPORATION
Date: February 22, 2018       /s/ Rebecca A. Hoyt
      Rebecca A. Hoyt
     

Senior Vice President,

Chief Accounting Officer,

    and Controller

      (Principal Accounting Officer)
EX-99.1

Exhibit 99.1

 

LOGO   

 

NEWS RELEASE

  

APACHE CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2017

FINANCIAL AND OPERATIONAL RESULTS; PROVIDES 2018 TO 2020 OUTLOOK

Fourth-quarter highlights

 

    Delivered reported production of 440,000 barrels of oil equivalent (BOE) per day and adjusted production of 362,000 BOE per day;

 

    Achieved U.S. production of 222,000 BOE per day, at the high end of guidance;

 

    Permian oil volumes grew 10 percent from the third quarter. Total Permian production achieved a record, exceeding the previous high set two years ago; and

 

    Reported $668 million in net cash from operating activities and adjusted EBITDAX of $1.1 billion.

Full-year 2017 highlights

 

    Returned to profitability, both on a GAAP and adjusted earnings basis;

 

    Generated $1.4 billion of proceeds and eliminated approximately $800 million in future asset retirement obligations through asset sales;

 

    Returned $380 million, or 16 percent of net cash from operating activities, during the year to shareholders in the company’s 53rd consecutive year of dividend payments;

 

    Retained $1.7 billion in cash on hand and reduced net debt to $6.8 billion from $7.2 billion the previous year; and

 

    Initiated first sales at Alpine High and increased production to 25,000 BOE per day by year-end.

2018 outlook

 

    Establishes a 2018 capital budget of $3 billion, including $500 million for Alpine High midstream;

 

    Directs more than 70 percent of the capital program toward the Permian; and

 

    Projects 7 percent to 13 percent adjusted production growth worldwide and 9 percent oil growth in the Permian.

Three-year outlook (2018 to 2020)

 

    Planned aggregate upstream investment of approximately $7.5 billion;

 

    Total Alpine High midstream investment of $1 billion;

 

    Anticipates a compound annual growth rate of 11 to 13 percent worldwide, 19 to 22 percent in the United States, and 26 percent to 28 percent in the Permian Basin; and

 

    Expects strong and growing Cash Returns on Capital Invested (CROIC) of 18, 20 and 22 percent, respectively, over the three-year period.

HOUSTON, Feb. 22, 2018 – Apache Corporation (NYSE: APA) (Nasdaq: APA) today announced its financial and operational results for fourth-quarter and full-year 2017.

Apache reported net income attributable to common stock of $456 million or $1.19 per diluted common share during the fourth quarter 2017. When adjusted for certain items that impact the

 

LOGO


APACHE CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2017

FINANCIAL AND OPERATIONAL RESULTS; PROVIDES 2018 TO 2020 OUTLOOK

– PAGE 2 of 8

 

comparability of results including the impact of U.S. tax reform, Apache’s fourth-quarter income totaled $126 million, or $0.33 per share. Net cash provided by continuing operating activities in the fourth quarter was $668 million, and adjusted EBITDAX was $1.1 billion.

For the full year 2017, Apache reported income of $1.3 billion, or $3.41 per diluted common share. On an adjusted basis, Apache’s 2017 income totaled $92 million, or $0.24 per share. Net cash provided by continuing operating activities was $2.4 billion, and adjusted EBITDAX was $3.7 billion in 2017.

John J. Christmann IV, Apache’s chief executive officer and president, said, “2017 was a year of significant progress at Apache marked by several important milestones. In the Permian, we returned to a growth trajectory with notable oil growth in the Midland Basin and commencement of production from Alpine High. We made great technical progress in the Midland Basin increasing lateral lengths and utilizing technology to improve our recoveries and reduce our costs. We consolidated our land position, confirmed additional landing zones, and progressed numerous strategic tests. At Alpine High, we initiated first production ahead of schedule, substantially increased our inventory count, and began to realize operational efficiencies with pad drilling.

“Internationally, we signed our first concessions in Egypt in 10 years, and with the help of modern-vintage 3D seismic, we expect to unlock significant future drilling opportunities in the region. We also completed our exit from Canada, further streamlining our portfolio. It was a year of numerous accomplishments that has set us up for great success in 2018 and beyond.”

Capital budget and production outlook

In 2018, the company plans to invest $3 billion in oil and gas capital, with more than 70 percent allocated to the Permian. This amount includes approximately $500 million for Alpine High midstream. Internationally, Apache will continue to invest at a level to sustain long-term free cash flow in Egypt and the North Sea.


APACHE CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2017

FINANCIAL AND OPERATIONAL RESULTS; PROVIDES 2018 TO 2020 OUTLOOK

– PAGE 3 of 8

 

From 2018 to 2020, Apache expects to invest approximately $7.5 billion in the upstream worldwide and $1 billion in midstream at Alpine High. Any monetization of the Alpine High midstream assets could eliminate some or all of this expected spend.

Apache anticipates its returns-focused investment approach will result in a compound annual production growth rate of 11 to 13 percent worldwide and generate Cash Returns on Capital Invested (CROIC) of 18, 20 and 22 percent, respectively, over the

three-year period.

“Our three-year plan will generate strong returns and growth and will create significant long-term value for our shareholders. Over the last three years, Apache has returned over $1.1 billion to shareholders through the dividend. In the coming three years, we plan to return at least this amount and possibly more,” said Christmann.

Fourth-quarter operational highlights

During the fourth quarter, Apache operated an average of 36 rigs and drilled and completed 87 gross-operated wells worldwide. Highlights from Apache’s principal areas include:

 

  North America – Apache operated an average of 21 rigs and drilled and completed 58 gross-operated wells in North America and reported production of 222,000 BOE per day.

In the Permian Basin, Apache operated an average of 16 rigs and drilled and completed 57 gross-operated wells. Production averaged 177,000 BOE per day.

 

    In the Midland Basin, Apache placed three multiwell pads on production. Drilling, completion and equipment costs decreased 20 percent from the first quarter of 2017 on a treated-lateral-foot basis, while volumes improved by approximately 17 percent.


APACHE CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2017

FINANCIAL AND OPERATIONAL RESULTS; PROVIDES 2018 TO 2020 OUTLOOK

– PAGE 4 of 8

 

    In the Delaware Basin, Apache averaged nine rigs, with six at Alpine High. The company completed construction of its fifth central processing unit at Alpine High bringing processing capacity to 280 million cubic feet (MMcf) per day with an additional 50 MMcf per day commissioned in January 2018.

 

  International – Apache operated an average of 15 rigs and drilled and completed 29 gross-operated wells internationally and reported production of 218,000 BOE per day.

 

    Egypt – The company completed nine wells with 24-hour initial production rates exceeding 1,000 BOE per day. Following the award of additional Western Desert concessions, the company is progressing an 1,800 square-kilometer 3D seismic shoot.

 

    North Sea – The company completed the sale of the SAGE gas pipeline and brought online a third development well at Callater. Quarterly production was impacted by an unplanned 17-day shutdown on the third-party operated Forties Pipeline System.

Financial position and liquidity

At year-end, the company had $1.7 billion cash on hand, up from $1.4 billion at year-end 2016. During the year, asset sales generated $1.4 billion of proceeds and eliminated approximately $800 million of future asset retirement obligations. The company’s net debt position at year-end was $6.8 billion, down from $7.2 billion at year-end 2016.

Year-end 2017 proved reserves

Worldwide estimated proved reserves totaled 1.2 billion BOE at year-end 2017, down from 1.3 billion BOE at year-end 2016, primarily as a result of the company’s sale of its Canadian assets during 2017. The company replaced 124 percent of 2017 production through extensions and discoveries net of engineering revisions. All sources finding and development costs were $11.89 per BOE. Proved undeveloped reserves represented 13 percent of total proved reserves at year-end.


APACHE CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2017

FINANCIAL AND OPERATIONAL RESULTS; PROVIDES 2018 TO 2020 OUTLOOK

– PAGE 5 of 8

 

Changes in Apache’s reserves during the year consisted of the following: divestitures of 212 million barrels of oil equivalent (MMBOE) and production of 167 MMBOE; These decreases were offset by 230 MMBOE of proved reserves added through net extensions and discoveries, 2 MMBOE of proved reserves through purchases of minerals in-place, and revisions of previous estimates of 10 MMBOE.

Conference call

Apache will host a conference call to discuss its fourth-quarter and full-year 2017 results at 1 p.m. Central time, Thursday, Feb. 22. The conference call will be webcast from Apache’s website at www.apachecorp.com and investor.apachecorp.com, and the webcast replay will be archived there as well. 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 5884904. Sign up for email alerts to be reminded of the webcast at investor.apachecorp.com/alerts.cfm.

About Apache

Apache Corporation is an oil and gas exploration and production company with operations in the United States, Egypt and the United Kingdom. Apache posts announcements, operational updates, investor information and all press releases on its website, www.apachecorp.com, and on its Media and Investor Center mobile application, which is available for free download from the Apple App Store and the Google’s Play store.


APACHE CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2017

FINANCIAL AND OPERATIONAL RESULTS; PROVIDES 2018 TO 2020 OUTLOOK

– PAGE 6 of 8

 

Additional information

Additional information follows, including reconciliations of adjusted earnings, adjusted EBITDAX and net debt (non-GAAP financial measures) to GAAP measures and information regarding adjusted production. Apache’s quarterly supplement is available at www.apachecorp.com/financialdata.

Non-GAAP financial measures

Apache’s financial information includes information prepared in conformity with generally accepted accounting principles (GAAP) as well as non-GAAP financial 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 EBITDAX 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,” “outlook,” 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,


APACHE CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2017

FINANCIAL AND OPERATIONAL RESULTS; PROVIDES 2018 TO 2020 OUTLOOK

– PAGE 7 of 8

 

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 2016 Form 10-K filed, and 2017 Form 10-K when filed, with the Securities and Exchange Commission (“SEC”) for a discussion of risk factors that affect our business. Any forward-looking statement made by Apache 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. Apache undertakes 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 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 may use certain terms in this earnings release, such as “resources,” “potential resources,” “resource potential,” “estimated net reserves,” “recoverable reserves,” 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, 2016 (and Apache’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2017, when filed) available from Apache at www.apachecorp.com or by writing Apache at: 2000 Post Oak Blvd., Suite 100, Houston, TX 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.


APACHE CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2017

FINANCIAL AND OPERATIONAL RESULTS; PROVIDES 2018 TO 2020 OUTLOOK

– PAGE 8 of 8

 

Contacts

Investor: (281) 302-2286 Gary Clark

Media: (713) 296-7276 Castlen Kennedy

Website: www.apachecorp.com

APA-F

-end-


APACHE CORPORATION

STATEMENT OF CONSOLIDATED OPERATIONS

(Unaudited)

(In millions, except per share data)

 

     For the Quarter
Ended December 31,
    For the Year
Ended December 31,
 
     2017     2016     2017     2016  

REVENUES AND OTHER:

        

Oil and gas production revenues

        

Oil revenues

   $ 1,306     $ 1,115     $ 4,598     $ 4,172  

Natural gas revenues

     233       272       959       967  

Natural gas liquids revenues

     101       68       330       228  
  

 

 

   

 

 

   

 

 

   

 

 

 
     1,640       1,455       5,887       5,367  

Derivative instrument gains (losses), net

     (66     —         (135     —    

Gain on divestiture

     11       —         627       21  

Other

     1       (4     44       (34
  

 

 

   

 

 

   

 

 

   

 

 

 
     1,586       1,451       6,423       5,354  
  

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING EXPENSES:

        

Lease operating expenses

     334       375       1,400       1,494  

Gathering and transportation

     35       45       179       200  

Taxes other than income

     34       41       151       126  

Exploration

     118       126       549       473  

General and administrative

     88       112       395       410  

Transaction, reorganization and separation

     2       3       16       39  

Depreciation, depletion and amortization:

        

Oil and gas property and equipment

     538       585       2,136       2,460  

Other assets

     35       38       144       158  

Asset retirement obligation accretion

     27       40       130       156  

Impairments

     —         94       8       1,103  

Financing costs, net

     97       106       397       417  
  

 

 

   

 

 

   

 

 

   

 

 

 
     1,308       1,565       5,505       7,036  
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME (LOSS) BEFORE INCOME TAXES

     278       (114     918       (1,682

Current income tax provision (benefit)

     182       107       595       391  

Deferred income tax provision (benefit)

     (422     (78     (1,180     (833
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST

     518       (143     1,503       (1,240

Income (Loss) from discontinued operations, net of tax

     —         —         —         (33
  

 

 

   

 

 

   

 

 

   

 

 

 

INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST

     518       (143     1,503       (1,273

Net income attributable to noncontrolling interest

     62       39       199       132  
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK

   $ 456     $ (182   $ 1,304     $ (1,405
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS

        

Net income (loss) from continuing operations attributable to common shareholders

   $ 456     $ (182   $ 1,304     $ (1,372

Net income (loss) from discontinued operations

     —         —         —         (33
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common shareholders

   $ 456     $ (182   $ 1,304     $ (1,405
  

 

 

   

 

 

   

 

 

   

 

 

 

BASIC NET INCOME (LOSS) PER COMMON SHARE:

        

Basic net income (loss) from continuing operations per share

   $ 1.20     $ (0.48   $ 3.42     $ (3.62

Basic net income (loss) from discontinued operations per share

     —         —         —         (0.09
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic net income (loss) per share

   $ 1.20     $ (0.48   $ 3.42     $ (3.71
  

 

 

   

 

 

   

 

 

   

 

 

 

DILUTED NET INCOME (LOSS) PER COMMON SHARE:

        

Diluted net income (loss) from continuing operations per share

   $ 1.19     $ (0.48   $ 3.41     $ (3.62

Diluted net income (loss) from discontinued operations per share

     —         —         —         (0.09
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted net income (loss) per share

   $ 1.19     $ (0.48   $ 3.41     $ (3.71
  

 

 

   

 

 

   

 

 

   

 

 

 

WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:

        

Basic

     381       380       381       379  

Diluted

     383       380       383       379  

DIVIDENDS DECLARED PER COMMON SHARE

   $ 0.25     $ 0.25     $ 1.00     $ 1.00  

 

Page 1


APACHE CORPORATION

PRODUCTION INFORMATION

 

    For the Quarter Ended     % Change     For the Year Ended  
    December 31,
2017
    September 30,
2017
    December 31,
2016
    4Q17 to
3Q17
    4Q17 to
4Q16
    December 31,
2017
    December 31,
2016
 

OIL VOLUME - Barrels per day

             

Permian

    85,448       77,701       77,566       10     10     77,590       84,226  

MidContinent/Gulf Coast Region

    9,564       9,670       11,697       -1     -18     10,138       14,937  

Gulf of Mexico

    3,189       3,512       5,337       -9     -40     3,761       4,664  

Canada

    —         3,441       12,338       NM       NM       6,643       13,081  
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

North America

    98,201       94,324       106,938       4     -8     98,132       116,908  
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

Egypt (1, 2)

    96,633       93,749       99,557       3     -3     97,242       103,719  

North Sea

    47,746       49,945       53,316       -4     -10     48,889       54,630  
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

International (1)

    144,379       143,694       152,873       0     -6     146,131       158,349  
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

Total (1)

    242,580       238,018       259,811       2     -7     244,263       275,257  
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

NATURAL GAS VOLUME - Mcf per day

             

Permian

    319,967       278,308       225,676       15     42     266,133       236,590  

MidContinent/Gulf Coast Region

    110,443       115,982       132,141       -5     -16     116,079       144,265  

Gulf of Mexico

    10,664       10,196       14,415       5     -26     12,154       15,372  

Canada

    —         107,524       223,810       NM       NM       131,479       242,602  
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

North America

    441,074       512,010       596,042       -14     -26     525,845       638,829  
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

Egypt (1, 2)

    376,285       378,426       356,637       -1     6     386,194       391,968  

North Sea

    53,597       50,057       86,248       7     -38     45,521       71,751  
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

International (1)

    429,882       428,483       442,885       0     -3     431,715       463,719  
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

Total (1)

    870,956       940,493       1,038,927       -7     -16     957,560       1,102,548  
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

NGL VOLUME - Barrels per day

             

Permian

    38,193       36,737       34,123       4     12     35,858       37,562  

MidContinent/Gulf Coast Region

    11,973       12,137       14,373       -1     -17     12,478       16,154  

Gulf of Mexico

    320       275       509       16     -37     338       449  

Canada

    —         2,183       5,292       NM       NM       2,827       5,731  
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

North America

    50,486       51,332       54,297       -2     -7     51,501       59,896  
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

Egypt (1, 2)

    517       916       974       -44     -47     816       1,084  

North Sea

    1,459       1,219       2,139       20     -32     1,149       1,703  
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

International (1)

    1,976       2,135       3,113       -7     -37     1,965       2,787  
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

Total

    52,462       53,467       57,410       -2     -9     53,466       62,683  
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

BOE per day

             

Permian

    176,969       160,823       149,302       10     19     157,804       161,219  

MidContinent/Gulf Coast Region

    39,943       41,138       48,093       -3     -17     41,962       55,135  

Gulf of Mexico

    5,287       5,486       8,249       -4     -36     6,125       7,675  

Canada

    —         23,544       54,931       NM       NM       31,383       59,246  
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

North America

    222,199       230,991       260,575       -4     -15     237,274       283,275  
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

Egypt (1, 2)

    159,864       157,737       159,971       1     0     162,424       170,131  

North Sea

    58,138       59,507       69,830       -2     -17     57,624       68,292  
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

International (1)

    218,002       217,244       229,801       0     -5     220,048       238,423  
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

Total (1)

    440,201       448,235       490,376       -2     -10     457,322       521,698  
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

Total excluding noncontrolling interests

    387,184       395,578       436,857       -2     -11     403,130       464,998  
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

(1) Includes net production volumes attributed to our noncontrolling partner in Egypt below:

 

Oil (b/d)

    32,131       31,275       33,238           32,461       34,530  

Gas (Mcf/d)

    124,285       126,459       119,734           128,756       130,856  

NGL (b/d)

    172       305       325           272       361  

(2) Egypt Gross Production - BOE per day

    333,911       339,069       344,540       -2     -3     333,934       349,387  

 

Page 2


APACHE CORPORATION

ADJUSTED PRODUCTION INFORMATION

Adjusted production excludes certain items that management believes affect the comparability of operating results for the periods presented. Adjusted production excludes production attributable to 1) divested assets, 2) noncontrolling interest in Egypt, and 3) Egypt tax barrels. Management uses adjusted production to evaluate the company’s operational trends and performance and believes it is useful to investors and other third parties.

 

     For the Quarter Ended      % Change     For the Year Ended  
     December 31,
2017
     September 30,
2017
     December 31,
2016
     4Q17 to
3Q17
    4Q17 to
4Q16
    December 31,
2017
     December 31,
2016
 

OIL VOLUME - Barrels per day

                  

Permian

     85,448        77,701        77,018        10     11     77,481        83,626  

MidContinent/Gulf Coast Region

     9,564        9,670        11,697        -1     -18     10,138        14,937  

Gulf of Mexico

     3,189        3,512        5,337        -9     -40     3,761        4,664  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

North America

     98,201        90,883        94,052        8     4     91,380        103,227  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Egypt

     48,484        49,992        53,799        -3     -10     50,466        57,273  

North Sea

     47,746        49,945        53,316        -4     -10     48,889        54,630  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

International

     96,230        99,937        107,115        -4     -10     99,355        111,903  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Total

     194,431        190,820        201,167        2     -3     190,735        215,130  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

NATURAL GAS VOLUME - Mcf per  day

                  

Permian

     319,967        278,308        221,604        15     44     265,642        233,230  

MidContinent/Gulf Coast Region

     110,443        115,982        132,141        -5     -16     116,079        144,265  

Gulf of Mexico

     10,664        10,196        14,415        5     -26     12,154        15,372  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

North America

     441,074        404,486        368,160        9     20     393,875        392,867  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Egypt

     198,806        216,990        216,344        -8     -8     213,208        240,113  

North Sea

     53,597        50,057        86,248        7     -38     45,521        71,751  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

International

     252,403        267,047        302,592        -5     -17     258,729        311,864  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Total

     693,477        671,533        670,752        3     3     652,604        704,731  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

NGL VOLUME - Barrels per day

                  

Permian

     38,193        36,737        33,088        4     15     35,781        36,787  

MidContinent/Gulf Coast Region

     11,973        12,137        14,373        -1     -17     12,478        16,154  

Gulf of Mexico

     320        275        509        16     -37     338        449  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

North America

     50,486        49,149        47,970        3     5     48,597        53,390  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Egypt

     296        534        588        -45     -50     470        672  

North Sea

     1,459        1,219        2,139        20     -32     1,149        1,703  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

International

     1,755        1,753        2,727        0     -36     1,619        2,375  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Total

     52,241        50,902        50,697        3     3     50,216        55,765  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

BOE per day

                  

Permian

     176,969        160,823        147,040        10     20     157,536        159,284  

MidContinent/Gulf Coast Region

     39,943        41,138        48,093        -3     -17     41,962        55,135  

Gulf of Mexico

     5,287        5,486        8,249        -4     -36     6,125        7,675  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

North America

     222,199        207,447        203,382        7     9     205,623        222,094  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Egypt

     81,914        86,691        90,445        -6     -9     86,470        97,963  

North Sea

     58,138        59,507        69,830        -2     -17     57,624        68,292  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

International

     140,052        146,198        160,275        -4     -13     144,094        166,255  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Total

     362,251        353,645        363,657        2     0     349,717        388,349  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

 

Page 3


APACHE CORPORATION

PRICE INFORMATION

 

     For the Quarter Ended      For the Year Ended  
     December 31,
2017
     September 30,
2017
     December 31,
2016
     December 31,
2017
     December 31,
2016
 

AVERAGE OIL PRICE PER BARREL

              

Permian

   $ 53.22      $ 45.68      $ 45.80      $ 48.47      $ 39.52  

MidContinent/Gulf Coast Region

     54.35        45.99        46.36        48.91        38.81  

Gulf of Mexico

     56.26        46.50        46.29        49.17        40.21  

Canada

     —          42.23        42.70        45.25        37.62  

North America

     53.40        45.56        45.48        48.18        39.23  

Egypt

     61.91        51.23        48.96        53.57        43.66  

North Sea

     61.32        53.11        48.36        53.81        42.93  

International

     61.71        51.87        48.76        53.65        43.41  

Total

     58.36        49.34        47.39        51.46        41.63  

AVERAGE NATURAL GAS PRICE PER MCF

              

Permian

   $ 2.52      $ 2.56      $ 2.70      $ 2.53      $ 2.19  

MidContinent/Gulf Coast Region

     2.73        2.78        2.88        2.89        2.24  

Gulf of Mexico

     3.07        2.97        2.97        3.05        2.55  

Canada

     —          1.90        2.22        2.17        1.64  

North America

     2.50        2.47        2.52        2.46        1.97  

Egypt

     2.90        2.81        2.78        2.80        2.71  

North Sea

     6.18        5.27        5.42        5.54        4.51  

International

     3.31        3.10        3.29        3.09        2.99  

Total

     2.90        2.75        2.85        2.74        2.40  

AVERAGE NGL PRICE PER BARREL

              

Permian

   $ 21.02      $ 16.68      $ 12.33      $ 16.96      $ 9.82  

MidContinent/Gulf Coast Region

     16.89        12.92        9.14        13.68        8.00  

Gulf of Mexico

     24.27        19.64        15.51        19.85        10.49  

Canada

     —          15.80        13.24        16.39        8.15  

North America

     20.06        15.77        11.60        16.15        9.17  

Egypt

     41.06        36.47        32.61        36.79        28.68  

North Sea

     48.33        26.92        29.38        36.22        24.20  

International

     46.42        31.02        30.39        36.46        25.94  

Total

     21.06        16.38        12.62        16.90        9.92  

 

Page 4


APACHE CORPORATION

SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited)

(In millions)

SUMMARY OF DERIVATIVE INSTRUMENT GAINS (LOSSES), NET

 

     For the Quarter
Ended December 31,
     For the Year
Ended December 31,
 
     2017      2016      2017      2016  

Derivative settlements - realized gain

   $ 1      $ —        $ 24      $ —    

Amortization of put premium - realized (loss)

     (50      —          (100      —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Realized (loss)

     (49      —          (76      —    

Unrealized mark-to-market (loss)

     (17      —          (59      —    
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ (66    $ —        $ (135    $ —    
  

 

 

    

 

 

    

 

 

    

 

 

 

SUMMARY EXPLORATION EXPENSE INFORMATION

 

     For the Quarter
Ended December 31,
     For the Year
Ended December 31,
 
     2017      2016      2017      2016  

Unproved leasehold impairments

   $ 32      $ 50      $ 246      $ 272  

Dry hole expense

     47        43        183        81  

Geological and geophysical expense

     23        14        47        44  

Exploration overhead and other

     16        19        73        76  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 118      $ 126      $ 549      $ 473  
  

 

 

    

 

 

    

 

 

    

 

 

 

SUMMARY CASH FLOW INFORMATION

 

     For the Quarter
Ended December 31,
     For the Year
Ended December 31,
 
     2017      2016      2017      2016  

Net cash provided by continuing operating activities

   $ 668      $ 819      $ 2,428      $ 2,453  

Net cash provided by (used in) discontinued operations

     —          (23      —          (23
  

 

 

    

 

 

    

 

 

    

 

 

 

Net cash provided by operating activities

     668        796        2,428        2,430  

Net cash used in investing activities

     (793      (298      (1,416      (1,660

Net cash used in financing activities

     (149      (351      (721      (860

SUMMARY BALANCE SHEET INFORMATION

 

     December 31,
2017
     December 31,
2016
 

Cash and cash equivalents

   $ 1,668      $ 1,377  

Other current assets

     2,057        1,864  

Property and equipment, net

     17,759        18,867  

Other assets

     438        411  
  

 

 

    

 

 

 

Total assets

   $ 21,922      $ 22,519  
  

 

 

    

 

 

 

Current Debt

   $ 550      $ —    

Current liabilities

     2,014        1,843  

Long-term debt

     7,934        8,544  

Deferred credits and other noncurrent liabilities

     2,633        4,453  

Apache shareholders’ equity

     7,416        6,238  

Noncontrolling interest

     1,375        1,441  
  

 

 

    

 

 

 

Total Liabilities and shareholders’ equity

   $ 21,922      $ 22,519  
  

 

 

    

 

 

 

Common shares outstanding at end of period

     381        379  

 

Page 5


APACHE CORPORATION

NON-GAAP FINANCIAL MEASURES

(In millions, except per share data)

Reconciliation of net cash provided by operating activities to adjusted EBITDAX

Management believes EBITDAX, or earnings before income tax expense, interest expense, depreciation, amortization and exploration expense is a widely accepted financial indicator, and useful for investors, to assess a company’s ability to incur and service debt, fund capital expenditures, and make distributions to shareholders. We define adjusted EBITDAX, a non-GAAP financial measure, as EBITDAX adjusted for certain items presented in the accompanying reconciliation. Management uses adjusted EBITDAX to evaluate our ability to fund our capital expenditures, debt services and other operational requirements and to compare our results from period to period by eliminating the impact of certain items that management does not consider to be representative of the Company’s on-going operations. Management also believes adjusted EBITDAX facilitates investors and analysts in evaluating and comparing EBITDAX from period to period by eliminating differences caused by the existence and timing of certain operating expenses that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted EBITDAX may not be comparable to similar measures of other companies in our industry.

 

     For the Quarter Ended     For the Year Ended  
     December 31,      September 30,     December 31,     December 31,  
     2017      2017     2016     2017     2016  

Net cash provided by operating activities

   $ 668      $ 554     $ 819     $ 2,428     $ 2,453  

Adjustments:

           

Exploration expense other than dry hole expense and unproved leasehold impairments

     39        33       33       120       120  

Current income tax provision

     182        99       107       595       391  

Other adjustments to reconcile net loss to net cash provided by operating activities

     21        (87     (38     (146     (164

Changes in operating assets and liabilities

     92        101       (152     320       (153

Financing costs, net

     97        101       106       397       417  

Transaction, reorganization & separation costs

     2        20       3       16       39  

Contract termination charges

     —          —         —         —         10  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDAX (Non-GAAP)

   $ 1,101      $ 821     $ 878     $ 3,730     $ 3,113  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Reconciliation of income (loss) attributable to common stock to adjusted earnings

Our presentation of adjusted earnings and adjusted earnings per share are non-GAAP measures because they exclude the effect of certain items included in Income Attributable to Common Stock. Management believes that adjusted earnings and adjusted earnings per share provides relevant and useful information, which is widely used by analysts, investors and competitors in our industry as well as by our management in assessing the Company’s operational trends and comparability of results to our peers.

Management uses adjusted earnings and adjusted earnings per share to evaluate our operating and financial performance because it eliminates the impact of certain items that management does not consider to be representative of the Company’s on-going business operations. As a performance measure, adjusted earnings may be useful to investors in facilitating comparisons to others in the Company’s industry because certain items can vary substantially in the oil and gas industry from company to company depending upon accounting methods, book value of assets, capital structure and asset sales and other divestitures, among other factors. Management believes excluding these items facilitates investors and analysts in evaluating and comparing the underlying operating and financial performance of our business from period to period by eliminating differences caused by the existence and timing of certain expense and income items that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted earnings and adjusted earnings per share may not be comparable to similar measures of other companies in our industry.

 

     For the Quarter Ended
December 31, 2017
    For the Quarter Ended
December 31, 2016
 
     Before
Tax
    Tax
Impact
    After
Tax
    Diluted
EPS
    Before
Tax
    Tax
Impact
    After
Tax
    Diluted
EPS
 

Income (loss) attributable to common stock (GAAP)

   $ 216     $ 240     $ 456     $ 1.19     $ (153   $ (29   $ (182   $ (0.48

Adjustments: *

                

Valuation allowance and other tax adjustments

     —         (354     (354     (0.92     —         68       68       0.18  

Gain on divestitures

     (11     2       (9     (0.03     —         —         —         —    

Asset impairments

     32       (11     21       0.06       144       (54     90       0.23  

Unrealized derivative instrument loss

     17       (6     11       0.03       —         —         —         —    

Transaction, reorganization & separation costs

     2       (1     1       —         3       (2     1       0.01  

Loss on extinguishment of debt

     —         —         —         —         1       —         1       —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted earnings (Non-GAAP)

   $ 256     $ (130   $ 126     $ 0.33     $ (5   $ (17   $ (22   $ (0.06
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     For the Year Ended
December 31, 2017
    For the Year Ended
December 31, 2016
 
     Before
Tax
    Tax
Impact
    After
Tax
    Diluted
EPS
    Before
Tax
    Tax
Impact
    After
Tax
    Diluted
EPS
 

Income (Loss) Attributable to Common Stock (GAAP)

   $ 719     $ 585     $ 1,304     $ 3.41     $ (1,847   $ 442     $ (1,405   $ (3.71

Adjustments: *

                

Valuation allowance and other tax adjustments

     —         (994     (994     (2.60     —         40       40       0.11  

Gain on divestitures

     (627     195       (432     (1.13     (21     6       (15     (0.04

Asset impairments

     254       (89     165       0.43       1,375       (490     885       2.34  

Unrealized derivative instrument loss

     59       (20     39       0.10       —         —         —         —    

Transaction, reorganization & separation costs

     16       (7     9       0.03       39       (14     25       0.07  

Loss on extinguishment of debt

     1       —         1       —         1       —         1       —    

Discontinued Operations

     —         —         —         —         33       —         33       0.08  

Contract termination charges

     —         —         —         —         10       (4     6       0.02  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Earnings (Non-GAAP)

   $ 422     $ (330   $ 92     $ 0.24     $ (410   $ (20   $ (430   $ (1.13
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

* The income tax effect of the reconciling items are calculated based on the statutory rate of the jurisdiction in which the discrete item resides.

 

Page 6


APACHE CORPORATION

NON-GAAP FINANCIAL MEASURES

(In millions)

Reconciliation of Debt to Net debt

Net debt, or outstanding debt obligations less cash and cash equivalents, 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 equivalents on hand.

 

     December 31,
2017
     September 30,
2017
     June 30,
2017
     March 31,
2017
     December 31,
2016
 

Current debt

   $ 550      $ 550      $ 150      $ 150      $ —    

Long-term debt

     7,934        7,933        8,329        8,327        8,544  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total debt

     8,484        8,483        8,479        8,477        8,544  

Cash and cash equivalents

     1,668        1,846        1,667        1,521        1,377  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net debt

   $ 6,816      $ 6,637      $ 6,812      $ 6,956      $ 7,167  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Reconciliation of Costs incurred and GTP capital investments to Oil and gas capital investment

Management believes the presentation of oil and gas capital investments is useful for investors to assess Apache’s expenditures related to our oil and gas capital activity. We define oil and gas capital investments as costs incurred for oil and gas activities and GTP activities, adjusted to exclude asset retirement obligations revisions and liabilities incurred, while including amounts paid during the period for abandonment and decommissioning expenditures. Capital expenditures attributable to a one-third noncontrolling interest in Egypt are also excluded. Management believes this provides a more accurate reflection of Apache’s cash expenditures related to oil and gas capital activity and is consistent with how we plan our capital budget.

 

     For the Quarter
Ended December 31,
    For the Year
Ended December 31,
 
     2017     2016     2017     2016  

Costs incurred in oil and gas property:

        

Acquisitions

        

Proved

   $ 4     $ 2     $ 7     $ 45  

Unproved

     32       10       181       170  

Exploration and development

     718       112       2,698       1,420  
  

 

 

   

 

 

   

 

 

   

 

 

 
     754       124       2,886       1,635  

GTP capital investments:

        

GTP facilities

     155       125       552       156  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Costs incurred and GTP capital investments

   $ 909     $ 249     $ 3,438     $ 1,791  
  

 

 

   

 

 

   

 

 

   

 

 

 

Reconciliation of Costs incurred and GTP to Oil and gas capital investment

        

Asset retirement obligations incurred and revisions

   $ 32     $ 292     $ (88     192  

Asset retirement obligations settled

     13       22       45       57  

Exploration expense other than dry hole expense and unproved leasehold impairments

     (39     (33     (120     (120

Less noncontrolling interest

     (53     (26     (186     (159
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Oil and gas capital investment

   $ 862     $ 504     $ 3,089     $ 1,761  
  

 

 

   

 

 

   

 

 

   

 

 

 

Reconciliation of net cash provided by operating activities to cash flows from continuing operations before changes in operating assets and liabilities

Cash flows from continuing operations before changes in operating assets and liabilities is a non-GAAP financial measure. Apache uses it internally and provides the information because management believes it is useful for investors 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 flows 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.

 

     For the Quarter Ended     For the Year Ended  
     December 31,      September 30,      December 31,     December 31,  
     2017      2017      2016     2017      2016  

Net cash provided by operating activities (GAAP)

   $ 668      $ 554      $ 796     $ 2,428      $ 2,430  

Less: Discontinued operations

     —          —          23       —          23  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Net cash provided by operating activities

   $ 668      $ 554      $ 819     $ 2,428      $ 2,453  

Changes in operating assets and liabilities

     92        101        (152     320        (153
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Cash flows from operations before changes in operating assets and liabilities

   $ 760      $ 655      $ 667     $ 2,748      $ 2,300  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

 

Page 7


APACHE CORPORATION

OIL & GAS RESERVES INFORMATION

For the Year Ended December 31, 2017

 

OIL (Mbbl)

          
     U.S.     Canada     Egypt1     North Sea     Total1  

Balance - Dec 31, 2016

     321,988       59,414       158,958       101,922       642,282  

Extensions and Discoveries

     48,391       14,025       27,140       16,023       105,579  

Purchases

     46       375       —         —         421  

Revisions

     825       1,829       (9,839     6,510       (675

Production

     (33,394     (2,425     (35,493     (17,844     (89,156

Sales

     (1,673     (73,218     —         —         (74,891
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance - Dec 31, 2017

     336,183       —         140,766       106,611       583,560  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

NGL’s (Mbbl)

          
     U.S.     Canada     Egypt1     North Sea     Total1  

Balance - Dec 31, 2016

     172,435       16,339       1,397       2,273       192,444  

Extensions and Discoveries

     33,806       1,794       50       845       36,495  

Purchases

     206       199       —         —         405  

Revisions

     12,982       (1,060     (425     (321     11,176  

Production

     (17,766     (1,032     (298     (419     (19,515

Sales

     (1,099     (16,240     —         —         (17,339
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance - Dec 31, 2017

     200,564       —         724       2,378       203,666  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Oil & NGL’s

          
     U.S.     Canada     Egypt1     North Sea     Total1  

Balance - Dec 31, 2016

     494,423       75,753       160,355       104,195       834,726  

Extensions and Discoveries

     82,197       15,819       27,190       16,868       142,074  

Purchases

     252       574       —         —         826  

Revisions

     13,807       769       (10,264     6,189       10,501  

Production

     (51,160     (3,457     (35,791     (18,263     (108,671

Sales

     (2,772     (89,458     —         —         (92,230
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance - Dec 31, 2017

     536,747       —         141,490       108,989       787,226  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

GAS (MMcf)

          
     U.S.     Canada     Egypt1     North Sea     Total1  

Balance - Dec 31, 2016

     1,431,683       599,036       717,668       110,761       2,859,148  

Extensions and Discoveries

     378,747       49,780       81,245       17,646       527,418  

Purchases

     4,434       4,319       —         —         8,753  

Revisions

     (5,431     92,207       (70,030     (17,387     (641

Production

     (143,943     (47,990     (140,961     (16,615     (349,509

Sales

     (21,255     (697,352     —         —         (718,607
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance - Dec 31, 2017

     1,644,235       —         587,922       94,405       2,326,562  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL BOE (Mboe)

          
     U.S.     Canada     Egypt1     North Sea     Total1  

Balance - Dec 31, 2016

     733,037       175,593       279,966       122,655       1,311,251  

Extensions and Discoveries

     145,322       24,115       40,731       19,809       229,977  

Purchases

     991       1,294       —         —         2,285  

Revisions

     12,903       16,136       (21,936     3,291       10,394  

Production

     (75,151     (11,455     (59,285     (21,032     (166,923

Sales

     (6,315     (205,683     —         —         (211,998
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance - Dec 31, 2017

     810,787       —         239,476       124,723       1,174,986  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Proved developed reserves:

          

Oil + NGL’s (Mbbls)

     475,284       —         125,253       94,623       695,160  

Gas (Mboe)

     224,502       —         90,111       13,890       328,503  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance - Dec 31, 2017 (Mboe)

     699,786       —         215,364       108,513       1,023,663  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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

 

Page 8