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 27, 2019

 

 

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 27, 2019, Apache Corporation issued a press release announcing financial and operating results for the fiscal quarter and year ended December 31, 2018. 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 27, 2019.


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 28, 2019       /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 2018

FINANCIAL AND OPERATIONAL RESULTS

Fourth-quarter 2018 highlights

 

   

Delivered reported production of 482,000 barrels of oil equivalent (BOE) per day; adjusted production, which excludes Egypt noncontrolling interest and tax barrels, was 421,000 BOE per day, in-line with guidance;

 

   

Achieved U.S. production of 283,000 BOE per day; Permian oil production was 99,000 barrels per day, exceeding guidance;

 

   

Posted international reported production of 199,000 BOE per day; adjusted production of 138,000 BOE per day driven by North Sea which achieved its highest quarterly production rate in two years; and

 

   

Reported $1 billion in net cash from operating activities and adjusted EBITDAX of $1.1 billion.

Full-year 2018 highlights

 

   

Delivered reported production of 466,000 BOE per day; adjusted production was 395,000 BOE per day, which was in-line with guidance and represented a 13 percent increase over 2017;

 

   

Achieved U.S. production of 261,000 BOE per day and Permian oil production of 91,000 barrels per day, an increase of 27 percent and 18 percent respectively;

 

   

Created Altus Midstream Company to fund ongoing planned midstream investments at Alpine High while also retaining a majority stake and operational control;

 

   

Reported $3.8 billion in net cash from operating activities; adjusted EBITDAX of $4.9 billion, which represented a 30 percent increase over 2017;

 

   

Reduced total debt for the fourth consecutive year; and

 

   

Returned nearly $1 billion, or 25 percent of net cash from operating activities, during the year to investors through buybacks, debt reduction and the company’s 54th consecutive year of dividend payments.

2019 outlook

 

   

Established 2019 upstream capital budget of $2.4 billion, a decrease of 22 percent from 2018;

 

   

Updating annual adjusted production guidance to 425,000 to 440,000 BOE per day, from a previous range of 410,000 to 440,000 BOE per day; and

 

   

Reiterating fourth-quarter 2019 exit rate guidance of 6 to 10 percent production growth worldwide, 12 to 16 percent in the United States (U.S.), and 5 percent for Permian oil from fourth-quarter 2018 levels.

HOUSTON, Feb. 27, 2019 – Apache Corporation (NYSE, Nasdaq: APA) today announced its financial and operational results for the fourth-quarter and full-year 2018.

Apache reported a loss of $381 million or $1.00 per diluted common share during the fourth-quarter 2018. When adjusted for certain items that impact the comparability of results, including primarily the impact of asset impairments in the North Sea, Gulf of Mexico, Anadarko Basin, and Egypt, Apache’s fourth-quarter income totaled $119 million, or $0.31 per share. Net cash provided by operating activities in the fourth quarter was $1 billion, and adjusted EBITDAX was $1.1 billion.

 

LOGO


APACHE CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2018

FINANCIAL AND OPERATIONAL RESULTS

— PAGE 2 of 7

 

For the full-year 2018, Apache reported income of $40 million, or $0.11 per diluted common share. On an adjusted basis, Apache’s 2018 earnings totaled $679 million, or $1.77 per share. Net cash provided by operating activities was $3.8 billion, and adjusted EBITDAX was $4.9 billion in 2018.

John J. Christmann IV, Apache’s chief executive officer and president, said, “2018 was a year of strong returns, robust growth and excellent financial performance. Total adjusted production increased 13 percent, and we significantly exceeded our corporate cash return on invested capital (CROIC) target of 18 percent.

“In the Permian, strong execution and well performance drove an 18 percent increase in oil production, and we achieved an important strategic goal with the formation of Altus Midstream Company, which will fund the growing infrastructure needs of Alpine High. On the international front, we increased production in the North Sea to its highest level in two years, and we laid a foundation for long-term potential production growth with the addition of significant acreage and progress on our extensive 3D-seismic program in Egypt.”

2019 capital budget and production outlook

In 2019, the company plans to invest $2.4 billion in upstream oil and gas capital, a reduction of 22 percent from 2018 levels. Growth will be driven by investment in the U.S., which will receive approximately 75 percent of total upstream investment. Internationally, Apache will continue to invest at a level to sustain long-term free cash flow in Egypt and the North Sea.

Even with a significant reduction in upstream capital investment, production is expected to grow at an attractive rate both year over year and exit to exit. As disclosed in a Feb. 7 press release, the company projects total adjusted production growth rates of 6 to 10 percent from fourth-quarter 2018 to fourth-quarter 2019, with 12 to 16 percent in the U.S., and 5 percent for Permian oil. The company is raising the lower end of the range for its annual guidance to 425,000 to 440,000 BOE per day from a previous range of 410,000 to 440,000 BOE per day following strong fourth-quarter momentum. Internationally, Apache expects production to decline 2 to 4 percent over the same time period.


APACHE CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2018

FINANCIAL AND OPERATIONAL RESULTS

— PAGE 3 of 7

 

“Our projected 2019 exit rates underscore Apache’s ability to deliver attractive and sustainable growth on a reduced activity set. This is made possible by our diverse, high-quality portfolio, relatively low base production decline rate in the mid 20 percent range, and excellent execution by our regions.

“Looking forward through 2021, we expect to spend between $2.5 to $2.8 billion per year, assuming $50 to $55 WTI. This investment level will deliver continued, attractive growth while enabling Apache to achieve cash-flow neutrality. We intend to return to investors at least 50 percent of cash flow in excess of plan, inclusive of asset sale proceeds, before increasing planned activity levels. This disciplined approach is capable of delivering long-term returns and growth and is supported by a deep inventory of development locations and exciting exploration opportunities in the U.S. and internationally,” Christmann said.

Fourth-quarter operational summary

During the fourth quarter, Apache operated an average of 31 rigs and drilled and completed 98 gross-operated wells worldwide. Highlights from Apache’s principal areas include:

 

   

United States – Apache operated an average of 18 rigs, drilled and completed 70 gross-operated wells and reported production of 283,000 BOE per day, an increase of 28 percent over fourth-quarter 2017.

Permian Basin production averaged 236,000 BOE per day, including oil production of 99,000 barrels of oil per day. Apache operated an average of 16 rigs and drilled and completed 66 gross-operated wells in the Permian during the quarter.

 

   

In the Midland Basin, Apache averaged five rigs and placed 26 wells on production, all on multi-well pads. Oil growth in the basin was driven by strong well performance and reductions in completion times.


APACHE CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2018

FINANCIAL AND OPERATIONAL RESULTS

— PAGE 4 of 7

 

   

At Alpine High, Apache averaged seven rigs and placed 26 wells on-line. Production exited the year at a rate of approximately 70,000 BOE per day and averaged 58,000 BOE per day for the quarter. Production volumes were impacted during the quarter by several items, including an unplanned field-wide shut-in, deferrals in the well completions schedule, and the timing of new facility commissioning. These items resulted in a slight delay in the production volume ramp, but production was back on track by the end of the quarter.

 

   

In other areas of the Delaware Basin, Apache averaged four rigs and placed nine wells on production, including a four-well pad in the Palmillo area of Eddy County, New Mexico, which generated strong production rates and high oil cuts.

 

   

International – Apache operated an average of 13 rigs, drilled and completed 28 gross-operated wells and reported production of 199,000 BOE per day.

 

   

Egypt – Apache averaged 10 rigs, drilled and completed 24 gross-operated wells and reported production of 136,000 BOE per day. The company drilled several strong oil wells in the Berenice and Menes fields during the quarter and made further progress on its extensive seismic acquisition program. Apache has now acquired 1.25 million acres of the planned survey area, which thus far has generated a substantial number of attractive new targets.

 

   

North Sea – The company averaged three rigs and drilled and completed four gross operated wells during the quarter. Production was 63,000 BOE per day, the highest quarterly production average in two years and a 25 percent increase from the third-quarter 2018. The production strength was the result of the startup of the Garten development in late November, a full three months of production from the fourth development well at Callater, and turnaround activity completion in the third quarter.

 

   

In Suriname, the company has completed a substantial geologic and geophysical evaluation of Block 58 and has identified numerous, large, drill-ready prospects across multiple different play concepts. Apache has contracted a drillship and anticipates spudding its first well on the block around mid-year.


APACHE CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2018

FINANCIAL AND OPERATIONAL RESULTS

— PAGE 5 of 7

 

Year-end 2018 proved reserves

Worldwide estimated proved reserves totaled 1.23 billion BOE at year-end 2018, up from 1.17 billion BOE at year-end 2017. The company replaced 135 percent of 2018 production through extensions and discoveries, net of commodity price and engineering revisions. Proved undeveloped reserves represented 12 percent of total proved reserves at year-end, compared to 13 percent at year-end 2017.

Changes in Apache’s reserves during the year were primarily driven by 303 MMBOE of proved reserves added through net extensions which was partially offset by production of 170 MMBOE and downward revisions of previous estimates of 73 MMBOE.

Conference call

Apache will host a conference call to discuss its fourth-quarter and full-year 2018 results at 10 a.m. Central time, Thursday, Feb. 28. 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. The conference call will also be available for playback by telephone for one week beginning at approximately 4 p.m. Central time Feb. 28. The number for the replay is 855-859-2056 or 404-537-3406 for international calls. The conference access code is 1793479. Sign up for email alerts to be reminded of the webcast at http://investor.apachecorp.com/alerts/email-alerts-subscription.

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 Play store.


APACHE CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2018

FINANCIAL AND OPERATIONAL RESULTS

— PAGE 6 of 7

 

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,” “projects,” “will,” 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 2017 Form 10-K filed, and 2018 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


APACHE CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2018

FINANCIAL AND OPERATIONAL RESULTS

— PAGE 7 of 7

 

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 news 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, 2017 (and Apache’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2018, 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.

Contacts

Investor: (281) 302-2286 Gary Clark

Media: (713) 296-7276 Phil West

Website: www.apachecorp.com

Click here for the full release with quarterly financial statements and the Financial and Operational Supplement.

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,
 
     2018     2017     2018     2017  

REVENUES AND OTHER:

        

Oil and gas production revenues

        

Oil revenues

   $  1,322     $  1,306     $  5,846     $ 4,598  

Natural gas revenues

     244       233       919       959  

Natural gas liquids revenues

     137       101       583       330  
  

 

 

   

 

 

   

 

 

   

 

 

 
     1,703       1,640       7,348       5,887  

Derivative instrument gain (loss)

     29       (66     (17     (135

Gain (loss) on divestiture

     13       11       23       627  

Other

     20       1       70       44  
  

 

 

   

 

 

   

 

 

   

 

 

 
     1,765       1,586       7,424       6,423  
  

 

 

   

 

 

   

 

 

   

 

 

 

OPERATING EXPENSES:

        

Lease operating expenses

     352       325       1,439       1,384  

Gathering, transmission and processing

     88       44       348       195  

Taxes other than income

     53       34       215       151  

Exploration

     252       118       503       549  

General and administrative

     101       88       431       395  

Transaction, reorganization and separation

     8       2       28       16  

Depreciation, depletion and amortization:

        

Oil and gas property and equipment

     599       538       2,265       2,136  

Other assets

     35       35       140       144  

Asset retirement obligation accretion

     27       27       108       130  

Impairments

     501       —         511       8  

Financing costs, net

     93       97       478       397  
  

 

 

   

 

 

   

 

 

   

 

 

 
     2,109       1,308       6,466       5,505  
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME BEFORE INCOME TAXES

     (344     278       958       918  

Current income tax provision

     185       182       894       595  

Deferred income tax provision (benefit)

     (179     (422     (222     (1,180
  

 

 

   

 

 

   

 

 

   

 

 

 

INCOME INCLUDING NONCONTROLLING INTEREST

     (350     518       286       1,503  

Net income attributable to noncontrolling interest - Egypt

     30       62       245       199  

Net income attributable to noncontrolling interest - ALTM

     1       —         1       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME ATTRIBUTABLE TO COMMON STOCK

   $ (381   $ 456     $ 40     $ 1,304  
  

 

 

   

 

 

   

 

 

   

 

 

 

NET INCOME PER COMMON SHARE:

        

Basic

   $ (1.00   $ 1.20     $ 0.11     $ 3.42  

Diluted

   $ (1.00   $ 1.19     $ 0.11     $ 3.41  

WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:

        

Basic

     379       381       382       381  

Diluted

     379       383       384       383  

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,      September 30,      December 31,      4Q18 to     4Q18 to     December 31,      December 31,  
     2018      2018      2017      3Q18     4Q17     2018      2017  

OIL VOLUME - Barrels per day

                  

Permian

     98,560        90,434        85,448        9     15     91,132        77,590  

MidContinent/Gulf Coast

     9,697        10,067        9,564        -4     1     10,434        10,138  

Gulf of Mexico

     2,391        3,037        3,189        -21     -25     3,234        3,761  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

United States

     110,648        103,538        98,201        7     13     104,800        91,489  

Canada

     —          —          —          —         —         —          6,643  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

North America

     110,648        103,538        98,201        7     13     104,800        98,132  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Egypt (1, 2)

     86,103        97,129        96,633        -11     -11     93,656        97,242  

North Sea

     52,519        42,769        47,746        23     10     46,953        48,889  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

International (1)

     138,622        139,898        144,379        -1     -4     140,609        146,131  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Total (1)

     249,270        243,436        242,580        2     3     245,409        244,263  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

NATURAL GAS VOLUME - Mcf per day

                  

Permian

     553,945        516,930        319,967        7     73     458,564        266,133  

MidContinent/Gulf Coast

     120,720        124,572        110,443        -3     9     125,488        116,079  

Gulf of Mexico

     7,477        10,280        10,664        -27     -30     9,202        12,154  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

United States

     682,142        651,782        441,074        5     55     593,254        394,366  

Canada

     —          —          —          —         —         —          131,479  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

North America

     682,142        651,782        441,074        5     55     593,254        525,845  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Egypt (1, 2)

     291,196        331,681        376,285        -12     -23     326,811        386,194  

North Sea

     55,955        41,455        53,597        35     4     45,466        45,521  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

International (1)

     347,151        373,136        429,882        -7     -19     372,277        431,715  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Total (1)

     1,029,293        1,024,918        870,956        0     18     965,531        957,560  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

NGL VOLUME - Barrels per day

                  

Permian

     45,053        45,671        38,193        -1     18     43,368        35,858  

MidContinent/Gulf Coast

     13,676        14,311        11,973        -4     14     13,780        12,478  

Gulf of Mexico

     397        257        320        54     24     303        338  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

United States

     59,126        60,239        50,486        -2     17     57,451        48,674  

Canada

     —          —          —          —         —         —          2,827  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

North America

     59,126        60,239        50,486        -2     17     57,451        51,501  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Egypt (1, 2)

     877        753        517        16     70     923        816  

North Sea

     1,476        1,008        1,459        46     1     1,189        1,149  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

International (1)

     2,353        1,761        1,976        34     19     2,112        1,965  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Total

     61,479        62,000        52,462        -1     17     59,563        53,466  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

BOE per day

                  

Permian

     235,936        222,259        176,969        6     33     210,926        157,804  

MidContinent/Gulf Coast

     43,493        45,140        39,943        -4     9     45,129        41,962  

Gulf of Mexico

     4,035        5,007        5,287        -19     -24     5,071        6,125  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

United States

     283,464        272,406        222,199        4     28     261,126        205,891  

Canada

     —          —          —          —         —         —          31,383  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

North America

     283,464        272,406        222,199        4     28     261,126        237,274  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Egypt (1, 2)

     135,513        153,163        159,864        -12     -15     149,048        162,424  

North Sea

     63,321        50,686        58,138        25     9     55,719        57,624  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

International (1)

     198,834        203,849        218,002        -2     -9     204,767        220,048  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Total (1)

     482,298        476,255        440,201        1     10     465,893        457,322  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Total excluding noncontrolling interests

     437,030        425,156        387,184        3     13     416,150        403,130  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

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

   

Oil (b/d)

     28,756        32,385        32,131            31,240        32,461  

Gas (Mcf/d)

     97,317        110,777        124,285            109,169        128,756  

NGL (b/d)

     292        251        172            308        272  

(2)  Egypt Gross Production—BOE per day

     334,992        337,738        333,911        -1     0     336,125        333,934  

 

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,      September 30,      December 31,      4Q18 to     4Q18 to     December 31,      December 31,  
     2018      2018      2017      3Q18     4Q17     2018      2017  

OIL VOLUME - Barrels per day

                  

Permian

     98,560        90,434        85,448        9     15     91,132        77,481  

MidContinent/Gulf Coast

     9,697        10,067        9,564        -4     1     10,434        10,138  

Gulf of Mexico

     2,391        3,037        3,189        -21     -25     3,234        3,761  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

United States

     110,648        103,538        98,201        7     13     104,800        91,380  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Egypt

     46,077        47,260        48,484        -3     -5     47,286        50,466  

North Sea

     52,519        42,769        47,746        23     10     46,953        48,889  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

International

     98,596        90,029        96,230        10     2     94,239        99,355  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Total

     209,244        193,567        194,431        8     8     199,039        190,735  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

NATURAL GAS VOLUME - Mcf per day

                  

Permian

     553,945        516,930        319,967        7     73     458,564        265,642  

MidContinent/Gulf Coast

     120,720        124,572        110,443        -3     9     125,488        116,079  

Gulf of Mexico

     7,477        10,280        10,664        -27     -30     9,202        12,154  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

United States

     682,142        651,782        441,074        5     55     593,254        393,875  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Egypt

     166,109        179,539        198,806        -7     -16     180,841        213,208  

North Sea

     55,955        41,455        53,597        35     4     45,466        45,521  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

International

     222,064        220,994        252,403        0     -12     226,307        258,729  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Total

     904,206        872,776        693,477        4     30     819,561        652,604  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

NGL VOLUME - Barrels per day

                  

Permian

     45,053        45,671        38,193        -1     18     43,368        35,781  

MidContinent/Gulf Coast

     13,676        14,311        11,973        -4     14     13,780        12,478  

Gulf of Mexico

     397        257        320        54     24     303        338  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

United States

     59,126        60,239        50,486        -2     17     57,451        48,597  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Egypt

     527        402        296        31     78     505        470  

North Sea

     1,476        1,008        1,459        46     1     1,189        1,149  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

International

     2,003        1,410        1,755        42     14     1,694        1,619  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Total

     61,129        61,649        52,241        -1     17     59,145        50,216  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

BOE per day

                  

Permian

     235,936        222,259        176,969        6     33     210,926        157,536  

MidContinent/Gulf Coast

     43,493        45,140        39,943        -4     9     45,129        41,962  

Gulf of Mexico

     4,035        5,007        5,287        -19     -24     5,071        6,125  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

United States

     283,464        272,406        222,199        4     28     261,126        205,623  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Egypt

     74,289        77,585        81,914        -4     -9     77,932        86,470  

North Sea

     63,321        50,686        58,138        25     9     55,719        57,624  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

International

     137,610        128,271        140,052        7     -2     133,651        144,094  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

Total

     421,074        400,677        362,251        5     16     394,777        349,717  
  

 

 

    

 

 

    

 

 

        

 

 

    

 

 

 

 

Page 3


APACHE CORPORATION

PRICE INFORMATION

 

     For the Quarter Ended      For the Year Ended  
     December 31,      September 30,      December 31,      December 31,      December 31,  
     2018      2018      2017      2018      2017  

AVERAGE OIL PRICE PER BARREL

              

Permian

   $  50.98      $  60.07      $  53.22      $  58.57      $  48.47  

MidContinent/Gulf Coast

     58.73        69.38        54.35        64.17        48.91  

Gulf of Mexico

     61.48        70.87        56.26        67.75        49.17  

United States

     51.85        61.20        53.40        59.36        48.40  

Canada

     —          —          —          —          45.25  

North America

     51.85        61.20        53.40        59.36        48.18  

Egypt

     64.27        74.92        61.91        70.09        53.57  

North Sea

     62.68        75.01        61.32        69.02        53.81  

International

     63.69        74.95        61.71        69.73        53.65  

Total

     58.37        69.12        58.36        65.30        51.46  

AVERAGE NATURAL GAS PRICE PER MCF

              

Permian

   $ 1.71      $ 1.98      $ 2.52      $ 1.95      $ 2.53  

MidContinent/Gulf Coast

     3.32        2.45        2.73        2.65        2.89  

Gulf of Mexico

     3.70        2.87        3.07        3.27        3.05  

United States

     2.03        2.09        2.50        2.12        2.56  

Canada

     —          —          —          —          2.17  

North America

     2.03        2.09        2.50        2.12        2.46  

Egypt

     2.83        2.85        2.90        2.84        2.80  

North Sea

     7.91        7.78        6.18        7.33        5.54  

International

     3.65        3.40        3.31        3.39        3.09  

Total

     2.57        2.56        2.90        2.61        2.74  

AVERAGE NGL PRICE PER BARREL

              

Permian

   $ 24.29      $ 32.38      $ 21.02      $ 27.20      $ 16.96  

MidContinent/Gulf Coast

     22.17        25.89        16.89        23.32        13.68  

Gulf of Mexico

     24.47        34.48        24.27        29.82        19.85  

United States

     23.81        30.84        20.06        26.28        16.14  

Canada

     —          —          —          —          16.39  

North America

     23.81        30.84        20.06        26.28        16.15  

Egypt

     34.43        45.92        41.06        39.17        36.79  

North Sea

     42.94        54.73        48.33        45.84        36.22  

International

     39.77        50.96        46.42        42.93        36.46  

Total

     24.42        31.42        21.06        26.87        16.90  

 

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
Ended December 31,
 
     2018      2017      2018      2017  

Derivative settlements - realized gain/(loss)

   $ 29      $ 1      $ (81    $ 24  

Amortization of call and put premium

     (15      (50      (39      (100
  

 

 

    

 

 

    

 

 

    

 

 

 

Realized gain/(loss)

     14        (49      (120      (76

Unrealized mark-to-market gain/(loss)

     15        (17      103        (59
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 29      $ (66    $ (17    $ (135
  

 

 

    

 

 

    

 

 

    

 

 

 

SUMMARY EXPLORATION EXPENSE INFORMATION

 

     For the Quarter
Ended December 31,
     For the Year Ended
Ended December 31,
 
     2018      2017      2018      2017  

Unproved leasehold impairments

   $ 138      $ 32      $ 214      $ 246  

Dry hole expense

     80        47        137        183  

Geological and geophysical expense

     14        23        55        47  

Exploration overhead and other

     20        16        97        73  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 252      $ 118      $ 503      $ 549  
  

 

 

    

 

 

    

 

 

    

 

 

 

SUMMARY CASH FLOW INFORMATION

 

     For the Quarter
Ended December 31,
     For the Year Ended
Ended December 31,
 
     2018      2017      2018      2017  

Net cash provided by operating activities

     1,043        668        3,777        2,428  

Net cash used in investing activities

     (1,104      (793      (3,944      (1,416

Net cash used in financing activities

     182        (149      (787      (721

SUMMARY BALANCE SHEET INFORMATION

 

     December 31,      December 31,  
     2018      2017  

Cash and cash equivalents

   $ 714      $ 1,668  

Other current assets

     1,973        2,057  

Property and equipment, net

     18,421        17,759  

Other assets

     474        438  
  

 

 

    

 

 

 

Total assets

   $ 21,582      $ 21,922  
  

 

 

    

 

 

 

Current debt

   $ 150      $ 550  

Current liabilities

     2,051        2,014  

Long-term debt

     8,054        7,934  

Deferred credits and other noncurrent liabilities

     2,515        2,633  

Apache shareholders’ equity

     7,130        7,416  

Noncontrolling interest - Egypt

     1,275        1,375  

Noncontrolling interest - ALTM

     407        —    
  

 

 

    

 

 

 

Total Liabilities and equity

   $ 21,582      $ 21,922  
  

 

 

    

 

 

 

Common shares outstanding at end of period

     375        381  

 

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,  
     2018     2018     2017      2018     2017  

Net cash provided by operating activities

   $ 1,043     $ 1,006     $ 668      $ 3,777     $ 2,428  

Adjustments:

           

Exploration expense other than dry hole expense and unproved leasehold impairments

     34       39       39        152       120  

Current income tax provision

     185       262       182        894       595  

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

     (29     (14     21        (125     (145

Changes in operating assets and liabilities

     (191     (32     92        (245     320  

Financing costs, net (excluding loss on early extinguishment of debt)

     93       98       97        384       396  

Transaction, reorganization & separation costs

     8       8       2        28       16  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted EBITDAX (Non-GAAP)

   $ 1,143     $ 1,367     $ 1,101      $ 4,865     $ 3,730  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Reconciliation of income 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     For the Quarter Ended  
     December 31, 2018     December 31, 2017  
     Before
Tax
    Tax
Impact
    After
Tax
    Diluted
EPS
    Before
Tax
    Tax
Impact
    After
Tax
    Diluted
EPS
 

Income including noncontrolling interest (GAAP)

   $ (344   $ (6)     $ (350   $ (0.92   $ 278     $ 240     $ 518     $ 1.35  

Income attributable to noncontrolling interest

     71       (40     31       0.08       114       (52     62       0.16  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to common stock

     (415     34       (381     (1.00     164       292       456       1.19  

Adjustments:*

                

Asset impairments

     639       (143     496       1.31       32       (11     21       0.06  

Noncontrolling interest & tax barrel impact on Egypt adj

     13       (34     (21     (0.06     —            —         —         —    

Valuation allowance and other tax adjustments

     —         42       42       0.10       —         (354     (354     (0.92

Loss on extinguishment of debt

     —         —         —         —         —         —         —         —    

Modification of stock comp plans

     —         —         —         —         —         —         —         —    

Transaction, reorganization & separation costs

     8       (3     5       0.01       2       (1     1       —    

Gain on divestitures

     (13     4       (9     (0.02     (11     2       (9     (0.03

Unrealized derivative instrument (gain)/loss

     (15     2       (13     (0.03     17       (6     11       0.03  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted earnings (Non-GAAP)

   $ 217     $ (98   $ 119     $ 0.31     $ 204     $ (78   $ 126     $ 0.33  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     For the Year Ended     For the Year Ended  
     December 31, 2018     December 31, 2017  
     Before
Tax
    Tax
Impact
    After
Tax
    Diluted
EPS
    Before
Tax
    Tax
Impact
    After
Tax
    Diluted
EPS
 

Income including noncontrolling interest (GAAP)

   $ 958     $ (672   $ 286     $ 0.75     $ 918     $ 585     $ 1,503     $ 3.93  

Income attributable to noncontrolling interest

     464       (218     246       0.64       365       (166     199       0.52  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to common stock

     494       (454     40       0.11       553       751       1,304       3.41  

Adjustments:*

                

Asset impairments

     725       (163     562       1.47       254       (89     165       0.43  

Noncontrolling interest & tax barrel impact on Egypt adj

     13       (34     (21     (0.05     —         —         —         —    

Valuation allowance and other tax adjustments

     —         72       72       0.18       —         (994     (994     (2.60

Loss on extinguishment of debt

     94       (19     75       0.19       1       —         1       —    

Modification of stock comp plans

     39       (9     30       0.07       —         —         —         —    

Transaction, reorganization & separation costs

     28       (7     21       0.06       16       (7     9       0.03  

Gain on divestitures

     (23     5       (18     (0.05     (627     195       (432     (1.13

Unrealized derivative instrument (gain)/loss

     (103     21       (82     (0.21     59       (20     39       0.10  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Earnings (Non-GAAP)

   $ 1,267     $ (588   $ 679     $ 1.77     $ 256     $ (164   $ 92     $ 0.24  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

*

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,      September 30,      June 30,      March 31,      December 31,  
     2018      2018      2018      2018      2017  

Current debt

   $ 150      $ 150      $ 400      $ 400      $ 550  

Long-term debt

     8,054        8,053        7,937        7,936        7,934  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total debt

     8,204        8,203        8,337        8,336        8,484  

Cash and cash equivalents

     714        593        972        1,077        1,668  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net debt

   $ 7,490      $ 7,610      $ 7,365      $ 7,259      $ 6,816  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

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
Ended December 31,
 
     2018      2017      2018      2017  

Costs incurred in oil and gas property:

           

Acquisitions

           

Proved

   $ 1      $ 4      $ 6      $ 7  

Unproved

     46        32        127        181  

Exploration and development

     860        718        3,321        2,698  
  

 

 

    

 

 

    

 

 

    

 

 

 
     907      754      3,454      2,886  

GTP and other capital investments:

           

GTP facilities

     183        155        550        552  

Equity method investment

     91       
—  
  
 
 
     91        —       
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Costs incurred and GTP capital investments

   $ 1,181      $ 909      $ 4,095      $ 3,438  
  

 

 

    

 

 

    

 

 

    

 

 

 

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

           

Asset retirement obligations incurred and revisions - oil and gas property

   $ (13)      $ 36      $ (31    $ (70

Asset retirement obligations incurred and revisions - GTP facilities

     —          (4      (10      (18

Asset retirement obligations settled

     12        13        51        45  

Exploration expense other than dry hole expense and unproved leasehold impairments

     (34      (39      (152      (120

Less noncontrolling interest

     (49      (53      (200      (186
  

 

 

    

 

 

    

 

 

    

 

 

 

Oil and gas capital investment

   $ 1,097      $ 862      $ 3,753      $ 3,089  
  

 

 

    

 

 

    

 

 

    

 

 

 

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

Cash flows from 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,  
     2018     2018     2017      2018     2017  

Net cash provided by operating activities

   $ 1,043     $ 1,006     $ 668      $ 3,777     $ 2,428  

Changes in operating assets and liabilities

     (191     (32     92        (245     320  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Cash flows from operations before changes in operating assets and liabilities

   $ 852     $ 974     $ 760      $ 3,532     $ 2,748  
  

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

 

Page 7


APACHE CORPORATION

OIL & GAS RESERVES INFORMATION

For the Year Ended December 31, 2018

 

OIL (Mbbl)

           
     U.S.      Egypt1      North Sea      Total1  

Balance - Dec 31, 2017

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

Extensions and Discoveries

     61,976        22,473        15,682        100,131  

Purchases

     140        —          —          140  

Revisions

     (14,334      (9,556      10,613        (13,277

Production

     (38,252      (34,185      (17,137      (89,574

Sales

     (47      —          —          (47
  

 

 

    

 

 

    

 

 

    

 

 

 

Balance - Dec 31, 2018

     345,666        119,498        115,769        580,933  
  

 

 

    

 

 

    

 

 

    

 

 

 

NGL’s (Mbbl)

           
     U.S.      Egypt1      North Sea      Total1  

Balance - Dec 31, 2017

     200,564        724        2,378        203,666  

Extensions and Discoveries

     60,990        144        1,444        62,578  

Purchases

     40        —          —          40  

Revisions

     (9,250      31        (819      (10,038

Production

     (20,969      (337      (434      (21,740

Sales

     (5      —          —          (5
  

 

 

    

 

 

    

 

 

    

 

 

 

Balance - Dec 31, 2018

     231,370        562        2,569        234,501  
  

 

 

    

 

 

    

 

 

    

 

 

 

Oil & NGL’s

           
     U.S.      Egypt1      North Sea      Total1  

Balance - Dec 31, 2017

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

Extensions and Discoveries

     122,966        22,617        17,126        162,709  

Purchases

     180        —          —          180  

Revisions

     (23,584      (9,525      9,794        (23,315

Production

     (59,221      (34,522      (17,571      (111,314

Sales

     (52      —          —          (52
  

 

 

    

 

 

    

 

 

    

 

 

 

Balance - Dec 31, 2018

     577,036        120,060        118,338        815,434  
  

 

 

    

 

 

    

 

 

    

 

 

 

GAS (MMcf)

           
     U.S.      Egypt1      North Sea      Total1  

Balance - Dec 31, 2017

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

Extensions and Discoveries

     704,135        79,394        55,274        838,803  

Purchases

     906        —          —          906  

Revisions

     (239,204      (38,892      (21,933      (300,029

Production

     (216,538      (119,286      (16,595      (352,419

Sales

     (41      —          —          (41
  

 

 

    

 

 

    

 

 

    

 

 

 

Balance - Dec 31, 2018

     1,893,493        509,138        111,151        2,513,782  
  

 

 

    

 

 

    

 

 

    

 

 

 

TOTAL BOE (Mboe)

           
     U.S.      Egypt1      North Sea      Total1  

Balance - Dec 31, 2017

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

Extensions and Discoveries

     240,322        35,849        26,338        302,509  

Purchases

     331        —          —          331  

Revisions

     (63,451      (16,007      6,139        (73,319

Production

     (95,312      (54,402      (20,337      (170,051

Sales

     (59      —          —          (59
  

 

 

    

 

 

    

 

 

    

 

 

 

Balance - Dec 31, 2018

     892,618        204,916        136,863        1,234,397  
  

 

 

    

 

 

    

 

 

    

 

 

 

Proved developed reserves:

           

Oil + NGL’s (Mbbls)

     498,058        110,516        106,429        715,003  

Gas (Mboe)

     271,067        79,355        15,891        366,313  
  

 

 

    

 

 

    

 

 

    

 

 

 

Balance - Dec 31, 2018 (Mboe)

     769,125        189,871        122,320        1,081,316  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) 

Includes reserves attributable to noncontrolling interest in Egypt.

 

Page 8