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Apache's 14% Production Growth Lifts Earnings 50% to Record $4.5 Billion in 2011

HOUSTON, Feb. 16, 2012 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA) today reported that record production and strong oil prices combined to generate record full-year 2011 earnings of $4.5 billion or $11.47 per diluted common share, up 50 percent from $3 billion or $8.46 per share in 2010.

Production increased 14 percent to 748,000 barrels of oil equivalent (boe) per day. Cash from operations before changes in operating assets and liabilities* rose 39 percent to $10.2 billion. Excluding certain items that management believes affect the comparability of operating results, Apache reported adjusted earnings* of $4.7 billion or $11.83 per share, up from $3.2 billion or $8.94 per share in 2010.

"Apache's balanced portfolio and returns focus fueled an outstanding year in 2011, setting records for production, earnings, revenues, proved reserves and cash flow," said G. Steven Farris, chairman and chief executive officer.

In the fourth quarter, earnings totaled $1.2 billion or $2.98 per diluted share, up from $670 million or $1.77 per share in the prior-year period. Production totaled 759,000 boe per day, up 4 percent from the year-earlier quarter, and cash from operations before changes in operating assets and liabilities* totaled $2.7 billion, up from $2 billion in the year-earlier period. Apache reported fourth-quarter adjusted earnings* of $1.2 billion or $2.94 per share.

Apache's oil and natural gas liquids production was 50 percent of total volume in 2011 but contributed nearly 80 percent of revenues because of the wide gap between global crude oil and North American natural gas prices. Apache's results also benefited from the price differentials between oil prices in basins linked to the West Texas Intermediate benchmark and higher prices for oil produced in the Gulf of Mexico, Egypt, Australia and the North Sea that represents approximately 76 percent of its crude production.

Apache ended 2011 with proved reserves of 3 billion boe, up 1 percent from 2010. Apache's 2011 production was 273 million boe (MMboe). The company added 422 MMboe, or 155 percent of production, through extensions, discoveries and acquisitions. Divestitures and revisions totaled 113 MMboe. Apache spent $9.1 billion on exploration, development and acquisitions capital, excluding asset retirement obligations and capitalized interest.*

During 2011, with the continued downward pressure on North American natural gas prices, Apache transitioned its North American drilling program to oily and liquids-rich targets in the Permian and Anadarko basins, the Gulf of Mexico and Canada.

Apache also sanctioned several long-lead-time projects in Australia that are expected to contribute to future growth, including the Julimar/Wheatstone LNG project and the Macedon, Coniston and Balnaves developments. The company also sanctioned development of the Anadarko Petroleum-operated Lucius unit, a world-class discovery in the Keathley Canyon area of the deepwater Gulf of Mexico.

Additional drilling is planned in 2012 in the North Sea, where Apache completed its acquisition of Mobil North Sea Limited, including the operated Beryl, Nevis, Ness, Nevis South, Skene and Buckland fields. First production from the Bacchus development near the Forties Field is planned in March.

Apache plans to spend $9.5 billion of drilling capital in 2012, up from $8 billion in 2011, Farris said. "We will live within our cash flow, and we will review capital allocations quarterly.

"We are planning to drill up to 20-30 percent more wells in 2012 than in 2011, when we drilled approximately 1,100 gross wells," he said. "More than half of the wells planned in 2012 will be drilled in the Permian and Anadarko Basins to exploit stacked oil and liquids-rich pay opportunities in these prolific basins."

Apache also plans active exploratory drilling programs in Australia, the deepwater Gulf of Mexico, Egypt, Alaska, Kenya and New Zealand.

"We are in a good position to deliver profitable growth in 2012 and future years," Farris said. "Based on our current capital program, we anticipate production will increase in the range of 7-13 percent in 2012."

Apache recently announced that it has increased the regular quarterly cash dividend on the company's common shares by 13 percent to 17 cents per share. "With our balanced portfolio and deep inventory of drilling locations and development projects, we have confidence in Apache's future," Farris said.

NOTE: Apache will conduct a conference call to discuss its fourth-quarter and full-year 2011 results at 1 p.m. Central time on Thursday, Feb. 16. The conference call will be webcast from Apache's website, www.apachecorp.com. The webcast replay will be archived on Apache's website. The conference call will be available for delayed playback by telephone for one week beginning at approximately 4 p.m. on Feb. 16. To access the telephone playback, dial 855-859-2056 or 404-537-3406 for international calls. The conference access code is 42312218.

*Adjusted earnings, cash from operations before changes in operating assets and liabilities, and exploration, development and acquisitions capital, excluding asset retirement obligations and capitalized interest, are non-GAAP measures. Please see reconciliations below. For supplemental and non-GAAP information, please go to http://www.apachecorp.com/financialinfo.

About Apache

Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom North Sea, Australia and Argentina. Apache posts announcements, operational updates, investor information and copies of all press releases on its website, www.apachecorp.com.

Forward-looking statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods. These statements include, but are not limited to, statements about future plans, expectations, and objectives for Apache's operations including statements about our drilling plans and LNG projects. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See "Risk Factors" in our 2010 Form 10-K as amended by Amendment No. 1 to our annual report on Form 10-K/A filed with the Securities and Exchange Commission for a discussion of risk factors that affect our business. Any forward-looking statement made by us in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development, or otherwise, except as may be required by law.

APACHE CORPORATION

STATEMENT OF CONSOLIDATED OPERATIONS

(In millions, except per share data)






























For the Quarter


For the Year



Ended December 31,


Ended December 31,



2011


2010


2011


2010










REVENUES AND OTHER:









Oil and gas production revenues

$ 4,295


$ 3,474


$ 16,810


$ 12,183


Other

2


(40)


78


(91)



4,297


3,434


16,888


12,092










COSTS AND EXPENSES:









Depreciation, depletion and amortization









   Recurring

1,111


928


4,095


3,083


   Additional

63


-


109


-


Asset retirement obligation accretion

40


37


154


111


Lease operating expenses

659


639


2,605


2,032


Gathering and transportation

75


52


296


178


Taxes other than income

236


168


899


690


General and administrative

132


120


459


380


Merger, acquisitions & transition

5


167


20


183


Financing costs, net

35


55


158


229



2,356


2,166


8,795


6,886










INCOME BEFORE INCOME TAXES

1,941


1,268


8,093


5,206


Current income tax provision

571


333


2,263


1,222


Deferred income tax provision

181


246


1,246


952










NET INCOME

1,189


689


4,584


3,032


Preferred stock dividends

19


19


76


32










INCOME ATTRIBUTABLE TO COMMON STOCK

$ 1,170


$    670


$   4,508


$   3,000










NET INCOME PER COMMON SHARE:









Basic

$   3.05


$   1.79


$   11.75


$     8.53


Diluted

$   2.98


$   1.77


$   11.47


$     8.46










WEIGHTED-AVERAGE NUMBER OF COMMON








  SHARES OUTSTANDING:









Basic

384


375


384


352


Diluted

400


388


400


359










DIVIDENDS DECLARED PER COMMON SHARE

$   0.15


$   0.15


$     0.60


$     0.60



APACHE CORPORATION

SUMMARY OF CAPITAL COSTS INCURRED

(In millions)



























For the Quarter


For the Year





Ended December 31,


Ended December 31,





2011


2010


2011


2010

CAPITAL EXPENDITURES (1):









Exploration & Development Costs










United States

$      792


$      584


$ 2,768


$   1,623



Canada

208


267


817


860




North America

1,000


851


3,585


2,483



Egypt

222


247


896


757



Australia

131


223


576


624



North Sea

205


180


823


617



Argentina

101


73


346


240



Other International

12


-


61


20




International

671


723


2,702


2,258




Worldwide Exploration & Development Costs

$   1,671


$   1,574


$ 6,287


$   4,741













Gathering, Transmission and Processing Facilities










United States

$        18


$           -


$      27


$           -



Canada

35


52


148


159



Egypt

37


71


111


182



Australia

90


60


345


162



Argentina

5


1


12


3




Total Gathering, Transmission and Processing

$      185


$      184


$    643


$      506













Capitalized Interest

$        70


$        56


$    263


$      120













Capital Expenditures, excluding acquisitions

$   1,926


$   1,814


$ 7,193


$   5,367













Acquisitions

$   2,696


$   8,007


$ 3,189


$ 11,557













(1) Accrual basis



















APACHE CORPORATION

SUMMARY BALANCE SHEET INFORMATION

(In millions)
















December 31,


December 31,









2011


2010

















Cash and Cash Equivalents

$      295


$      134






Other Current Assets

4,508


3,346






Property and Equipment, net

45,448


38,151






Goodwill

1,114


1,032






Other Assets

686


762






Total Assets

$ 52,051


$ 43,425

















Short-Term Debt

$      431


$        46






Other Current Liabilities

4,532


3,478






Long-Term Debt

6,785


8,095






Deferred Credits and Other Noncurrent Liabilities

11,310


7,429






Shareholders' Equity

28,993


24,377






Total Liabilities and Shareholders' Equity

$ 52,051


$ 43,425

















Common shares outstanding at end of period

384


382







APACHE CORPORATION

PRODUCTION INFORMATION



























For the Quarter


For the Year





Ended December 31,


Ended December 31,





2011


2010


2011


2010












 OIL VOLUME - Barrels per day









Central

7,323


5,077


6,788


3,544


Permian

54,381


46,586


50,991


39,441


GOM Deepwater

6,507


3,328


6,022


2,311


GOM Shelf

47,918


46,767


46,097


44,836


GC Onshore

10,051


8,190


9,517


6,444



United States

126,180


109,948


119,415


96,576


Canada

14,882


15,557


14,252


14,581



North America

141,062


125,505


133,667


111,157


Egypt


103,908


107,238


103,912


99,122


Australia

38,169


38,738


38,228


45,908


North Sea

55,859


52,453


54,541


56,791


Argentina

9,655


10,382


9,597


9,956



International

207,591


208,811


206,278


211,777




Total

348,653


334,316


339,945


322,934












 NATURAL GAS VOLUME - Mcf per day









Central

193,722


223,883


213,447


209,346


Permian

178,766


162,266


173,188


116,771


GOM Deepwater

48,144


35,883


52,193


28,368


GOM Shelf

335,434


355,669


341,253


320,360


GC Onshore

106,505


60,566


84,661


56,002



United States

862,571


838,267


864,742


730,847


Canada

631,122


593,523


632,550


396,005



North America

1,493,693


1,431,790


1,497,292


1,126,852


Egypt


355,091


368,350


365,418


374,858


Australia

189,852


191,585


185,079


199,729


North Sea

2,366


2,118


2,284


2,391


Argentina

221,523


198,513


212,311


184,830



International

768,832


760,566


765,092


761,808




Total

2,262,525


2,192,356


2,262,384


1,888,660












 NGL VOLUME - Barrels per day









Central

5,566


1,045


2,268


659


Permian

12,256


12,740


11,799


7,559


GOM Deepwater

582


440


715


466


GOM Shelf

4,446


4,240


5,278


3,987


GC Onshore

2,556


1,254


2,051


1,106



United States

25,406


19,719


22,111


13,777


Canada

5,183


5,637


5,958


2,884



North America

30,589


25,356


28,069


16,661


Egypt


-


326


49


82


North Sea

-


-


4


-


Argentina

2,997


3,265


3,018


3,180



International

2,997


3,591


3,071


3,262




Total

33,586


28,947


31,140


19,923












 BOE per day









Central

45,176


43,436


44,630


39,094


Permian

96,431


86,370


91,655


66,462


GOM Deepwater

15,114


9,749


15,436


7,505


GOM Shelf

108,270


110,284


108,251


102,217


GC Onshore

30,357


19,539


25,678


16,883



United States

295,348


269,378


285,650


232,161


Canada

125,252


120,115


125,636


83,466



North America

420,600


389,493


411,286


315,627


Egypt


163,090


168,956


164,864


161,680


Australia

69,812


70,669


69,074


79,196


North Sea

56,253


52,806


54,925


57,190


Argentina

49,572


46,733


48,000


43,941



International

338,727


339,164


336,863


342,007




Total

759,327


728,657


748,149


657,634



APACHE CORPORATION

PRICE INFORMATION



























For the Quarter


For the Year





Ended December 31,


Ended December 31,





2011


2010


2011


2010












 AVERAGE OIL PRICE PER BARREL









Central

$            89.36


$            80.76


$            89.89


$            76.27


Permian

89.99


81.26


90.87


76.00


GOM Deepwater

112.77


85.32


106.75


79.68


GOM Shelf

115.70


85.59


108.92


78.88


GC Onshore

112.60


85.27


105.97


79.57



United States (1)

99.54


81.29


95.51


76.13


Canada

94.38


75.73


93.19


72.83



North America (1)

98.99


80.60


95.27


75.69


Egypt (1)

106.65


88.27


109.92


79.45


Australia (1)

109.53


87.14


111.22


77.32


North Sea (2)

104.64


78.43


104.09


76.66


Argentina

76.67


59.23


68.02


57.47



International (1, 2)

105.24


84.14


106.67


77.21




Total (1, 2)

102.71


82.81


102.19


76.69












 AVERAGE NATURAL GAS PRICE PER MCF









Central

$              3.92


$              3.91


$              4.44


$              4.53


Permian

5.05


4.68


5.17


5.21


GOM Deepwater

3.48


3.93


4.06


4.35


GOM Shelf

3.86


4.25


4.42


4.76


GC Onshore

3.73


3.91


4.34


4.66



United States (1)

4.59


4.95


4.91


5.28


Canada (1)

4.15


4.08


4.47


4.48



North America (1)

4.40


4.59


4.72


5.00


Egypt


4.82


3.84


4.66


3.62


Australia

2.64


2.33


2.69


2.24


North Sea

20.49


23.12


22.25


18.64


Argentina

2.82


2.04


2.64


1.96



International

3.75


3.04


3.67


2.90




Total (1)

4.18


4.06


4.37


4.15












 AVERAGE NGL PRICE PER BARREL









Central

$            29.96


$            50.32


$            38.67


$            47.67


Permian

39.09


43.78


47.88


39.49


GOM Deepwater

58.28


45.15


50.44


45.27


GOM Shelf

55.07


43.18


49.63


39.69


GC Onshore

56.08


53.18


58.51


55.98



United States

42.03


44.63


48.42


41.45


Canada

50.16


36.64


45.72


36.61



North America

43.41


42.85


47.85


40.62


Egypt


-


69.75


66.36


69.75


North Sea

-


-


65.45


-


Argentina

27.00


21.61


27.90


27.08



International

27.00


25.98


28.56


28.15




Total

41.95


40.76


45.95


38.58
























(1)  Prices reflect the impact of financial derivative hedging activities.





(2)  Prices reflect the impact of the North Sea fixed-price oil sales contract.






APACHE CORPORATION

NON-GAAP FINANCIAL MEASURES

(In millions, except per share data)





















Reconciliation of income attributable to common stock to adjusted earnings:







The press release discusses Apache's adjusted earnings.  Adjusted earnings exclude certain items that management believes affect the comparability of operating results and are meaningful for the following reasons:











  • Management uses adjusted earnings to evaluate the company's operational trends and performance relative to other oil and gas producing companies.
  • Management believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported company earnings for items that may obscure underlying fundamentals and trends.
  • The reconciling items below are the types of items management believes are frequently excluded by analysts when evaluating the operating trends and comparability of the company's results.





For the Quarter


For the Year




Ended December 31,


Ended December 31,




2011


2010


2011


2010











Income Attributable to Common Stock (GAAP)

$            1,170


$               670


$            4,508


$            3,000











Adjustments:









U.K. tax rate increase impact

-


-


218


-


Oil and gas asset impairment of Chile, net of tax

60


-


60


-


Merger, acquisitions & transition, net of tax

4


109


13


120


Unrealized foreign currency fluctuation impact on deferred tax expense  

(5)


51


(73)


52


Deferred tax adjustments


(75)


-


(75)


-

Adjusted Earnings  (Non-GAAP)

$            1,154


$               830


$            4,651


$            3,172











Net Income per Common Share - Diluted (GAAP)

$              2.98


$              1.77


$            11.47


$              8.46











Adjustments:









U.K. tax rate increase impact

-


-


0.55


-


Oil and gas asset impairment of Chile, net of tax

0.15


-


0.15


-


Merger, acquisitions & transition, net of tax

0.01


0.29


0.03


0.33


Unrealized foreign currency fluctuation impact on deferred tax expense  

(0.01)


0.13


(0.18)


0.15


Deferred tax adjustments


(0.19)


-


(0.19)


-

Adjusted Earnings Per Share - Diluted (Non-GAAP)

$              2.94


$              2.19


$            11.83


$              8.94









































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

The press release discusses Apache's cash from operations before changes in operating assets and liabilities.  It is presented because management believes the information is useful for investors because it is used internally and widely accepted by those following the oil and gas industry as a financial indicator of a company's ability to generate cash to internally fund exploration and development activities, fund dividend programs, and service debt.  It is also used by research analysts to value and compare oil and gas exploration and production companies, and is frequently included in published research when providing investment recommendations.  Cash from operations before changes in operating assets and liabilities, therefore, is an additional measure of liquidity, but is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing, or financing activities.





















The following table reconciles net cash provided by operating activities to cash from operations before changes in operating assets and liabilities.














For the Quarter


For the Year




Ended December 31,


Ended December 31,




2011


2010


2011


2010

Net cash provided by operating activities

$            2,782


$            1,926


$            9,953


$            6,726

Changes in operating assets and liabilities

(118)


55


281


642

Cash from operations before changes in









operating assets and liabilities

$            2,664


$            1,981


$          10,234


$            7,368



APACHE CORPORATION

OIL & GAS RESERVES INFORMATION

For the Year Ended December 31, 2011






















OIL (Mbbl)











U.S.

Canada

Egypt

Australia

North Sea

Argentina

Total


Balance - Dec 31, 2010

636,854

147,147

127,127

66,136

154,368

20,645

1,152,277



Extensions and Discoveries

45,676

16,712

45,021

15,762

332

3,230

126,733



Purchases

5,097

705

-

-

34,612

-

40,414



Revisions

(8,904)

(17,117)

(6,185)

-

-

215

(31,991)



Production

(43,586)

(5,203)

(37,928)

(13,953)

(19,907)

(3,503)

(124,080)



Sales

(1,123)

(653)

-

-

-

-

(1,776)


Balance - Dec 31, 2011

634,014

141,591

128,035

67,945

169,405

20,587

1,161,577












NGL's (Mbbl)











U.S.

Canada

Egypt

Australia

North Sea

Argentina

Total


Balance - Dec 31, 2010

122,161

27,843

-

-

-

6,454

156,458



Extensions and Discoveries

43,915

5,890

18

-

72

1,784

51,679



Purchases

586

47

-

-

9,191

-

9,824



Revisions

1,713

774

-

-

-

17

2,504



Production

(8,072)

(2,173)

(18)

-

(1)

(1,102)

(11,366)



Sales

(270)

(931)

-

-

-

-

(1,201)


Balance - Dec 31, 2011

160,033

31,450

-

-

9,262

7,153

207,898












Oil & NGL's











U.S.

Canada

Egypt

Australia

North Sea

Argentina

Total


Balance - Dec 31, 2010

759,015

174,990

127,127

66,136

154,368

27,099

1,308,735



Extensions and Discoveries

89,591

22,602

45,039

15,762

404

5,014

178,412



Purchases

5,683

752

-

-

43,803

-

50,238



Revisions

(7,191)

(16,343)

(6,185)

-

-

232

(29,487)



Production

(51,658)

(7,376)

(37,946)

(13,953)

(19,908)

(4,605)

(135,446)



Sales

(1,393)

(1,584)

-

-

-

-

(2,977)


Balance - Dec 31, 2011

794,047

173,041

128,035

67,945

178,667

27,740

1,369,475












GAS (MMcf)











U.S.

Canada

Egypt

Australia

North Sea

Argentina

Total


Balance - Dec 31, 2010

3,272,985

3,491,967

1,076,917

1,488,498

4,144

532,671

9,867,182



Extensions and Discoveries

169,506

505,049

77,049

148,640

475

81,274

981,993



Purchases

67,595

8,838

-

-

104,658

-

181,091



Revisions

(7,716)

(133,359)

(37,623)

-

-

1,107

(177,591)



Production

(315,631)

(230,880)

(133,377)

(67,554)

(835)

(77,493)

(825,770)



Sales

(210,528)

(94,104)

-

-

-

-

(304,632)


Balance - Dec 31, 2011

2,976,211

3,547,511

982,966

1,569,584

108,442

537,559

9,722,273






















TOTAL BOE (Mboe)











U.S.

Canada

Egypt

Australia

North Sea

Argentina

Total


Balance - Dec 31, 2010

1,304,513

756,983

306,613

314,219

155,059

115,878

2,953,265



Extensions and Discoveries

117,842

106,778

57,882

40,534

483

18,559

342,078



Purchases

16,949

2,225

-

-

61,246

-

80,420



Revisions

(8,477)

(38,570)

(12,456)

-

-

417

(59,086)



Production

(104,263)

(45,856)

(60,176)

(25,211)

(20,047)

(17,521)

(273,074)



Sales

(36,482)

(17,267)

-

-

-

-

(53,749)


Balance - Dec 31, 2011

1,290,082

764,293

291,863

329,542

196,741

117,333

2,989,854






















Proved developed reserves:










Oil + NGL's (Mbbls)

535,741

105,102

105,840

35,725

145,743

21,940

950,091



Gas (Mboe)

369,328

351,467

116,811

112,603

17,505

74,522

1,042,236


Balance - Dec 31, 2011 (Mboe)

905,069

456,569

222,651

148,328

163,248

96,462

1,992,327



APACHE CORPORATION

OIL & GAS RESERVES AND COSTS

For the Year Ended December 31, 2011












Reserve Additions (Mboe)











U.S.

Canada

Egypt

Australia

North Sea

Argentina

Other

Total











Extensions and Discoveries

117,842

106,778

57,882

40,534

483

18,559

-

342,078

Purchases

16,949

2,225

-

-

61,246

-

-

80,420


Additions excluding revisions

134,791

109,003

57,882

40,534

61,729

18,559

-

422,498

Revisions

(8,477)

(38,570)

(12,456)

-

-

417

-

(59,086)


Total

126,314

70,433

45,426

40,534

61,729

18,976

-

363,412





















Capital Cost Information (Non-GAAP) (in millions)











U.S.

Canada

Egypt

Australia

North Sea

Argentina

Other

Total

Exploration & Development, excluding Capitalized 









Interest and Asset Retirement Cost (ARC) (1)

$   2,768

$      817

$     896

$       576

$         823

$         346

$    61

$   6,287

Acquisitions, excluding ARC - Acquired (2)










Proved

318

-

(12)

-

1,857

-

-

2,163


Unproved

116

33

2

48

476

-

13

688

    Total

$   3,202

$      850

$     886

$       624

$      3,156

$         346

$    74

$   9,138









































(1) Reconciliation of Exploration and Development Costs to Exploration and Development Costs, excluding Capitalized Interest and Asset Retirement Cost, a Non-GAAP Financial Measure





















Presented below is a reconciliation of exploration and development costs (GAAP) to exploration and development costs, excluding capitalized interest and asset retirement cost (Non-GAAP).  Management believes exploration and development costs, excluding capitalized interest and asset retirement cost is a more accurate reflection of the expenditures during the current year.













U.S.

Canada

Egypt

Australia

North Sea

Argentina

Other

Total











Exploration & Development Costs (in millions)

$   3,250

$   1,092

$     914

$       715

$         959

$         358

$    61

$   7,349


Less: Capitalized Interest

(152)

(47)

(18)

(14)

-

(12)

-

(243)


Less: ARC

(330)

(228)

-

(125)

(136)

-

-

(819)












  Total Adds

$   2,768

$      817

$     896

$       576

$         823

$         346

$    61

$   6,287





















(2)  Reconciliation of Total Acquisition Costs to Acquisitions, excluding Asset Retirement Cost - Acquired, a Non-GAAP Financial Measure





















Presented below is a reconciliation of total acquisition costs (GAAP) to acquisitions, excluding asset retirement cost - acquired (Non-GAAP).  Management believes acquisitions, excluding asset retirement cost - acquired is a more accurate reflection of the costs of acquisitions during the current year.













U.S.

Canada

Egypt

Australia

North Sea

Argentina

Other

Total











Total Acquisition Costs (in millions)










Proved

$      368

$         -

$      (12)

$          -

$      2,399

$           -

$     -

$   2,755


Unproved

116

33

2

48

476


13

688

Less: ARC - Acquired

(50)

-

-

-

(542)

-

-

(592)












Acquisitions, excluding ARC - Acquired

$      434

$        33

$      (10)

$         48

$      2,333

$           -

$    13

$   2,851



APA-F

SOURCE Apache Corporation

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