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Apache reports record North America onshore liquids production for first-quarter 2014 with 21 percent year-over-year growth

- Total North America onshore liquids volumes achieves record of 198,500 barrels per day
- Worldwide production averages 640,000 barrels of oil equivalent (boe) per day; 672,000 boe per day including discontinued operations
- Earnings from continuing operations of $1.90 per diluted share/$753 million; adjusted earnings of $1.78 per share/$707 million*
- Cash flow from operating activities of $2.3 billion; $2.2 billion from continuing operations before changes in working capital*
- Repurchased an additional 5.9 million shares for $485 million during first-quarter 2014

HOUSTON, May 8, 2014 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA) today announced first-quarter 2014 earnings from continuing operations of $753 million or $1.90 per diluted common share and adjusted earnings,* which exclude certain items that impact the comparability of results, of $707 million or $1.78 per share. For the same period in the prior year, Apache reported earnings from continuing operations of $759 million or $1.91 per diluted common share and adjusted earnings of $797 million or $2.00 per share. Net cash provided by operating activities totaled approximately $2.3 billion in first-quarter 2014, compared with $2.6 billion in the prior year, with cash from continuing operations before changes in operating assets and liabilities* totaling $2.2 billion, compared with $2.3 billion in first-quarter 2013.

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"A record-setting performance by our Permian Region continues to drive strong overall results for the company," said G. Steven Farris, chairman, chief executive officer and president of Apache. "We remained the most active driller in onshore North America, operating an average of 82 rigs during the quarter."

Apache's onshore North American liquids production increased 21 percent in first-quarter 2014 compared with the same period a year ago. The first-quarter 2014 average of 198,500 barrels per day for North American onshore liquids was up 6 percent compared with the fourth-quarter 2013.

"We continued to strengthen our portfolio and build momentum toward a strong second half of 2014," Farris said. "Apache intensified its focus on North America liquids production by completing the sale of our Argentina operations and selected conventional natural gas properties in Western Canada.

"We are currently testing new plays and completion ideas along the Gulf Coast and are encouraged by early results in Canada where a focus on liquids-rich plays contributed to a 10 percent increase in crude oil and natural gas liquids (NGLs) compared with the preceding quarter," Farris said. "Internationally, we are on track for first oil from significant development projects offshore Australia later this year at the Balnaves and Coniston fields, and we announced two new discoveries at the Matruh and Shushan basins in Egypt's Western Desert."

Apache also returned additional capital to shareholders, purchasing 5.9 million shares of Apache common stock on the open market from January through March 2014.

First-quarter production and operating highlights

Highlights from first-quarter drilling include:

  • Total worldwide net daily production of oil, natural gas and NGLs averaged 640,000 boe per day. Including discontinued operations in Argentina, daily production averaged 672,000 boe per day. Liquids production comprised 58 percent of the total from continuing operations, up from 57 percent for the fourth-quarter 2013.
  • The Permian and Central regions increased liquids production 31,000 barrels per day over the prior-year period. Total production from the two regions averaged 239,000 boe per day.
  • The Permian Region achieved record production averaging 150,000 boe per day, up 25 percent from the prior-year period. The region averaged 38 rigs in operation during the quarter and spud 202 gross wells (80 horizontals).

Oil and gas prices

Apache's mix of hydrocarbon production during the first-quarter 2014 included approximately 48 percent crude oil and 10 percent NGLs. Crude oil and NGLs contributed 82 percent of the company's revenue during the period.

Worldwide, Apache received an average price of $101.03 per barrel of crude oil during the first quarter compared with $102.42 per barrel in the prior-year period. Apache received an average price of $4.46 per thousand cubic feet (Mcf) of natural gas, compared with $3.77 per Mcf in the prior-year period.

About Apache

Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom and Australia. Apache posts announcements, operational updates, investor information and copies of 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.  

* Adjusted earnings, cash from continuing operations before changes in operating assets and liabilities, and adjusted effective tax rate are non-GAAP measures. Please see reconciliations below. For supplemental financial and operational data and non-GAAP information, please go to http://www.apachecorp.com/financialdata.

Conference call

Apache will conduct a conference call to discuss its results and review its portfolio at 1 p.m. Central time Thursday, May 8. The conference call will be webcast from Apache's website, www.apachecorp.com. The webcast replay will be archived on Apache's website. The conference call will be available for delayed playback by telephone for one week beginning at approximately 4 p.m. Central time May 8. To access the telephone playback, dial 855-859-2056 or 404-537-3406 for international calls. The conference access code is 30665579.

Forward-looking statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods. These statements include, but are not limited to, statements about future plans, expectations and objectives for Apache's operations, including statements about our drilling plans and production expectations, asset sales and monetizations and share repurchases. 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 2013 Form 10-K filed with the Securities and Exchange Commission for a discussion of risk factors that affect our business. Any forward-looking statement made by us in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.

 

 

APACHE CORPORATION

STATEMENT OF CONSOLIDATED OPERATIONS

(In millions, except per share data)













For the Quarter



Ended March 31,



2014


2013






REVENUES AND OTHER:





Oil revenues

$ 2,815


$ 3,192


Gas revenues

646


681


NGL revenues

186


148


Oil and gas production revenues

3,647


4,021


Derivative instrument gains (losses)

(20)


(100)


Other 

48


25



3,675


3,946






COSTS AND EXPENSES:





Depreciation, depletion and amortization





Oil and gas property and equipment





    Recurring

1,109


1,210


Other assets

97


102


Asset retirement obligation accretion

44


63


Lease operating expenses

597


722


Gathering and transportation 

70


73


Taxes other than income

181


229


General and administrative

119


112


Acquisitions, divestitures & transition

2


-


Financing costs, net

27


55



2,246


2,566






INCOME BEFORE INCOME TAXES

1,429


1,380


Current income tax provision 

416


497


Deferred income tax provision

162


105






INCOME FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST

851


778


Loss from discontinued operations, net of tax

(517)


(61)






INCOME INCLUDING NONCONTROLLING INTEREST

334


717


Net income attributable to noncontrolling interest

98


-


Preferred stock dividends

-


19






NET INCOME ATTRIBUTABLE TO COMMON STOCK

$    236


$    698






NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS





Net income from continuing operations attributable to common shareholders

$    753


$    759


Net income (loss) from discontinued operations

(517)


(61)


Net income attributable to common shareholders

$    236


$    698






BASIC NET INCOME (LOSS) PER COMMON SHARE:





Basic net income from continuing operations per share

$   1.92


$   1.94


Basic net loss from discontinued operations per share

(1.32)


(0.16)


Basic net income per share

$   0.60


$   1.78






DILUTED NET INCOME (LOSS) PER COMMON SHARE:





Diluted net income from continuing operations per share

$   1.90


$   1.91


Diluted net loss from discontinued operations per share

(1.30)


(0.15)


Diluted net income per share

$   0.60


$   1.76






WEIGHTED-AVERAGE NUMBER OF COMMON 




   SHARES OUTSTANDING:





Basic

394


392


Diluted

396


408






DIVIDENDS DECLARED PER COMMON SHARE

$   0.25


$   0.20

 

 

APACHE CORPORATION

SUMMARY OF CAPITAL COSTS INCURRED

(In millions)

















For the Quarter





Ended March 31,





2014


2013

CAPITAL EXPENDITURES:





Exploration & Development Costs






United States

$     1,349


$     1,269



Canada

269


258




North America

1,618


1,527



Egypt (1)

320


262



Australia

261


225



North Sea

227


177



Argentina

12


33



New Ventures - International

1


5




International (1)

821


702




Worldwide Exploration & Development Costs (1)

$     2,439


$     2,229









Gathering, Transmission and Processing Facilities






United States

$          45


$          18



Canada

102


30



Egypt (1)

15


19



Australia

168


180



Argentina

1


2



North Sea

1


-




Total Gathering, Transmission and Processing (1)

$        332


$        249









Asset Retirement Costs

$          28


$        134









Capitalized Interest (2)

$          98


$          93









Capital Expenditures, excluding Acquisitions (1)

$     2,897


$     2,705









Asset Retirement Costs - Acquired

$             -


$          53









Acquisitions

$            2


$        310









(1) Includes capital costs attributable to noncontrolling interest in Egypt










(2) Capitalized interest in both quarters includes Argentina discontinued operations of $3M










APACHE CORPORATION

SUMMARY BALANCE SHEET INFORMATION

(In millions)



















March 31,


December 31,





2014


2013









Cash and Cash Equivalents

$    1,643


$     1,906


Other Current Assets 

3,820


4,460


Property and Equipment, net

52,752


52,421


Goodwill

1,369


1,369


Other Assets

1,537


1,481


Total Assets

$   61,121


$   61,637









Short-Term Debt

$             -


$          53


Other Current Liabilities

4,356


4,647


Long-Term Debt

9,673


9,672


Deferred Credits and Other Noncurrent Liabilities

11,915


11,872


Apache Shareholders' Equity

33,082


33,396


Noncontrolling interest

2,095


1,997


Total Liabilities and Shareholders' Equity

$  61,121


$   61,637









Common shares outstanding at end of period

390


396

 

 

APACHE CORPORATION

PRODUCTION INFORMATION























For the Quarter