Apache Corporation announces first-quarter financial and operational results

Apache Corporation announces first-quarter financial and operational results

- Achieved onshore North American production of 307,000 barrels of oil equivalent (boe) per day exceeding company guidance of 300,000 to 305,000 boe per day
- Delivered worldwide production of 601,000 boe per day
- Realized Permian oil production growth of 7 percent year over year
- Closed the sale of Kitimat and Wheatstone LNG assets and received net proceeds of $3.7 billion in April
- Announced the sale of remaining oil and gas assets in Australia for $2.1 billion on April 8
- Reiterates 2015 onshore North American production and capex guidance
- Updates 2015 international guidance to reflect the pending Australian asset sale

HOUSTON, May 7, 2015 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA) today announced a first-quarter 2015 net loss of $4.7 billion or $12.34 per diluted common share, which includes an after-tax ceiling-test write down of $4.7 billion, as a result of substantially lower commodity prices. When adjusted for certain items that impact the comparability of results, Apache's first-quarter loss totaled $139 million or $0.37 per share. Net cash provided by operating activities was approximately $650 million in the first quarter of 2015 and cash from operations, before changes in working capital, totaled $900 million.

Logo for the Apache Corporation (NYSE, Nasdaq: APA). More information about Apache can be found at www.apachecorp.com.

"During the quarter, we significantly reduced our drilling activity and cost structure in response to the rapid oil-price downturn. Drilling and completion costs across all of our key plays in North America onshore are down between 20 and 40 percent from those we provided in our North American Update last November. Operationally, I am pleased to report that North American onshore production exceeded our first quarter guidance despite a substantial reduction in well completions and the adverse impacts of severe winter weather in the Permian and Anadarko Basins. Internationally, production in both Egypt and the North Sea is tracking ahead of our initial expectations," said John J. Christmann, IV, Apache's chief executive officer and president.

Portfolio rebalancing update

During 2014, Apache conducted a review of its international portfolio with the goal of best positioning its asset base for the long-term benefit of its shareholders. This review resulted in several key divestitures during the past 12 months. In the first half of April, the company closed the previously announced sale of its Wheatstone and Kitimat LNG projects to Woodside Petroleum for $3.7 billion of net proceeds. On April 8, Apache also announced the sale of its remaining oil and gas assets in Australia for $2.1 billion, subject to customary post-closing adjustments.

The company's acquisition and divestiture transactions over the last several years have streamlined its portfolio and resulted in greater leverage to onshore North America. When adjusted for the recently announced sale in Australia, pro forma onshore North America now represents nearly two-thirds of total company production.

"Apache's portfolio now consists of an onshore North American position with a robust inventory of drilling opportunities, complemented by free-cash-flow-generating assets in the North Sea and Egypt. Our international assets benefit from attractive Brent-linked oil prices and also offer a significant inventory of exploration and development opportunities. We are very excited to move forward with a strengthened balance sheet and three key operating areas that offer excellent potential for sustainable long-term growth and capital-allocation flexibility," Christmann noted.

2015 capital spending and production update

During the quarter, Apache's capital expenditures before LNG, capitalized interest and Egypt's minority interest was $1.3 billion, which was in-line with expectations. Spending on LNG facilities during the quarter was $239 million, all of which was reimbursed with the closing of the LNG asset sales. As noted last quarter, management expected the 2015 capital program to be front-end loaded as the drilling program continued to ramp down through the first quarter.

Apache remains on track to meet its 2015 capital-spending guidance for North America of $2.1 billion to $2.3 billion and continues to project relatively flat pro forma production volumes in North America compared to 2014.

The company is lowering its 2015 international capital-spending guidance to between $1.3 billion and $1.6 billion.  This reflects a $150-million reduction from the midpoint of the prior range driven by the pending Australian asset sale expected at mid-year.  Apache anticipates combined production from Egypt and the North Sea will increase slightly year over year, which is essentially unchanged from its prior international production guidance.

First-quarter 2015 regional activity

  • Permian - Underscoring the significant planned reduction in activity, the Permian region averaged 15 rigs during the quarter, down from 42 the previous quarter. The company continues to reduce its rig count and is currently running 11 rigs. Total production in the Permian was down slightly from the fourth quarter primarily due to severe winter weather. Activity for the remainder of the year will be focused on the Delaware Basin as well as in the deeper, more productive areas of the company's Southern Midland Basin acreage.
  • Central - As a result of the Dec. 31, 2014 sale of certain Anadarko Basin producing assets, Central region production was down 29 percent compared to the fourth quarter. Excluding property sales, production declined 2 percent. During the quarter, the region averaged four rigs and is currently running three. For the remainder of 2015, activity will be primarily focused on the Canyon Lime and Woodford plays.
  • Gulf Coast - Following the sale of producing properties in Southern Louisiana on Dec. 31, 2014, the region now consists almost entirely of Eagle Ford production. During the quarter, the region averaged four rigs, down from 12 in the fourth quarter. No rigs are currently running in the Eagle Ford as the region focuses on completing wells in backlog. There are currently 38 drilled-but-uncompleted Eagle Ford wells in backlog.
  • Canada - Apache completed four Montney wells, including a successful test of the previously untested lower Montney in the Wapiti area. During the first quarter, the region averaged four rigs and reduced the count to zero as the region moves into breakup season. Activity will be focused on completing a seven-well Duvernay pad in the summer, along with two Montney wells currently in backlog.
  • North Sea - During the quarter, North Sea production declined from record fourth-quarter levels due to natural declines and an approximate 2,600-boe-per-day production disruption from an unplanned equipment outage on the Beryl Alpha platform. In March, favorable tax changes were announced in the United Kingdom that are expected to have a positive impact on cash flow in 2015 and beyond.
  • Egypt - Gross production was flat quarter-over-quarter as the region averaged 21 rigs and reported seven new discoveries in the Khalda area. Delineation-drilling results at the recent Ptah and Berenice oil discoveries have exceeded expectations thus far with current production of approximately 20,000 barrels of oil per day. Subsequent to quarter-end, Apache made several new field discoveries across multiple concessions that increase its confidence in Egypt's production outlook for the remainder of 2015.

"Our operational teams are doing an excellent job in this challenging price environment, and I am pleased that first-quarter production results exceeded our expectations both domestically and internationally. We will monitor oil prices for the remainder of the quarter, and at mid-year, revisit our planned activity levels for the balance of 2015. Apache remains committed to maintaining operational flexibility and will respond quickly to changes in our cash flow.  With more than $5 billion in net proceeds coming from recent asset sales, our balance sheet is now in excellent shape.  Accordingly, we will look to be opportunistic but highly disciplined in evaluating new opportunities to grow or enhance our existing portfolio and create shareholder value," remarked Christmann.

Oil and gas prices

Apache's production during the first quarter 2015 consisted of approximately 62 percent liquids and 38 percent natural gas. Liquids contributed 79 percent of the company's revenue during the period. In North America onshore, Apache received an average oil price of $44.07 per barrel during the first quarter, compared with $93.72 per barrel in the prior-year period. North American onshore natural gas prices averaged $2.60 per thousand cubic feet (Mcf), compared with $4.82 per Mcf in the prior-year period. Worldwide, Apache received an average oil price of $47.56 per barrel during the first quarter, compared with $101.03 per barrel in the prior-year period. Worldwide natural gas prices averaged $3.14 per Mcf, compared with $4.46 per Mcf in the prior-year period.

Conference call

Apache Corporation (NYSE: APA) will host a conference call Thursday, May 7, 2015, to discuss the first-quarter 2015 financial results. The call will begin at 1 p.m. CT (2 p.m. ET). Earnings will be released Thursday, May 7, 2015, before the market opens. To access the live audio webcast, please visit the Apache website at www.apachecorp.com.

A replay of the conference call will be available for seven days following the call. The number for the replay is 855-859-2056 or 404-537-3406 for international calls. The conference access code is 31402821.

Sign up for email alerts to be reminded of the webcast at http://investor.apachecorp.com/alerts.cfm   

Additional Information

Additional information follows, including reconciliations of adjusted earnings and cash from operations before changes in operating assets and liabilities (non-GAAP financial measures) to GAAP measures and information regarding pro forma production. Apache's quarterly supplement is available at www.apachecorp.com/financialdata.

About Apache

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.

Non-GAAP financial measures

Apache's financial information includes information prepared in conformity with generally accepted accounting standards (GAAP) as well as non-GAAP information. It is management's intent to provide non-GAAP financial information to enhance understanding of our consolidated financial information as prepared in accordance with GAAP. Adjusted earnings and cash from continuing operations before changes in operating assets and liabilities 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" and similar references to future periods. These statements include, but are not limited to, statements about future plans, expectations and objectives for Apache's operations, including statements about our capital plans, drilling plans, production expectations, asset sales and  monetizations. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See "Risk Factors" in our 2014 Form 10-K filed with the 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

(Unaudited)

(In millions, except per share data)













For the Quarter 



Ended March 31,



2015


2014






REVENUES AND OTHER:





   Oil revenues

$                    1,362


$                    2,815


   Gas revenues

387


646


   NGL revenues

57


186


Oil and gas production revenues

1,806


3,647


Derivative instrument gains (losses), net

-


(20)


Other 

12


48



1,818


3,675






COSTS AND EXPENSES:





Depreciation, depletion and amortization





   Oil and gas property and equipment





       Recurring

1,089


1,109


       Additional

7,220


-


   Other assets

98


97


Asset retirement obligation accretion

44


44


Lease operating expenses

538


597


Gathering and transportation 

56


70


Taxes other than income

84


181


General and administrative

79


103


Acquisition, divestiture & separation costs

54


18


Financing costs, net

46


27



9,308


2,246






INCOME (LOSS) BEFORE INCOME TAXES

(7,490)


1,429


Current income tax provision 

44


416


Deferred income tax provision (benefit)

(2,898)


162






INCOME (LOSS) FROM CONTINUING OPS INCLUDING NONCONTROLLING INTEREST

(4,636)


851


Income (Loss) from discontinued operations, net of tax

-


(517)






INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST

(4,636)


334


Net income attributable to noncontrolling interest

15


98


Preferred stock dividends

-


-






INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK

$                  (4,651)


$                       236






NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS





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

$                  (4,651)


$                       753


Net income (loss) from discontinued operations

-


(517)


Net income (loss) attributable to common shareholders

$                  (4,651)


$                       236






BASIC NET INCOME (LOSS) PER COMMON SHARE:





Basic net income (loss) from continuing operations per share

$                  (12.34)


$                      1.92


Basic net income (loss) from discontinued operations per share

-


(1.32)


Basic net income (loss) per share

$                  (12.34)


$                      0.60






DILUTED NET INCOME (LOSS) PER COMMON SHARE:





Diluted net income (loss) from continuing operations per share

$                  (12.34)


$                      1.90


Diluted net income (loss) from discontinued operations per share

-


(1.30)


Diluted net income (loss) per share

$                  (12.34)


$                      0.60






WEIGHTED-AVERAGE NUMBER OF COMMON 




   SHARES OUTSTANDING:





Basic

377


394


Diluted

377


396






DIVIDENDS DECLARED PER COMMON SHARE

$                      0.25


$                      0.25

 

APACHE CORPORATION

PRODUCTION INFORMATION


















% Change


1Q15


4Q14


1Q14


1Q15 to 4Q14


1Q15 to 1Q14











  OIL VOLUME - Barrels per day











Permian

94,461


98,017


88,327


-4%


7%


Central

18,509


23,832


21,686


-22%


-15%


Gulf Coast

7,784


14,380


10,975


-46%


-29%


Canada

16,875


17,133


17,589


-2%


-4%



N.A. Onshore

137,629


153,362


138,577


-10%


-1%


Gulf of Mexico

5,885


6,319


6,284


-7%


-6%


GOM Shelf

-


-


679


NM


NM



North America

143,514


159,681


145,540


-10%


-1%


Egypt (1)

91,971


87,445


88,093


5%


4%


Australia

20,905


28,577


16,825


-27%


24%


North Sea

61,699


66,822


59,092


-8%


4%



International (1)

174,575


182,844


164,010


-5%


6%




Total (1)

318,089


342,525


309,550


-7%


3%














  TOTAL LIQUIDS - Barrels per day











Permian

122,445


131,429


113,587


-7%


8%


Central

34,654


49,246


46,141


-30%


-25%


Gulf Coast

10,328


18,555


13,398


-44%


-23%


Canada

22,728


22,812


25,358


0%


-10%



N.A. Onshore

190,155


222,042


198,484


-14%


-4%


Gulf of Mexico

6,433


7,004


7,114


-8%


-10%


GOM Shelf

-


-


769


NM


NM



North America

196,588


229,046


206,367


-14%


-5%


Egypt (1)

93,002


88,278


88,326


5%


5%


Australia

20,905


28,577


16,825


-27%


24%


North Sea

62,585


68,632


60,183


-9%


4%



International (1)

176,492


185,487


165,334


-5%


7%




Total

373,080


414,533


371,701


-10%


0%














  NATURAL GAS VOLUME - Mcf per day











Permian

216,968


223,787


215,860


-3%


1%


Central

190,214


268,130


260,298


-29%


-27%


Gulf Coast

7,659


85,625


99,242


-91%


-92%


Canada

287,556


297,004


377,712


-3%


-24%



N.A. Onshore

702,397


874,546


953,112


-20%


-26%


Gulf of Mexico

20,977


18,955


16,193


11%


30%


GOM Shelf

-


-


1,092


NM


NM



North America

723,374


893,501


970,397


-19%


-25%


Egypt (1)

363,989


358,031


377,357


2%


-4%


Australia

230,691


228,284


215,792


1%


7%


North Sea

50,445


73,042


45,071


-31%


12%



International (1)

645,125


659,357


638,220


-2%


1%




Total (1)

1,368,499


1,552,858


1,608,617


-12%


-15%














  BOE per day











Permian

158,606


168,728


149,564


-6%


6%


Central

66,357


93,933


89,524


-29%


-26%


Gulf Coast

11,604


32,826


29,939


-65%


-61%


Canada

70,653


72,312


88,310


-2%


-20%



N.A. Onshore

307,220


367,799


357,337


-16%


-14%


Gulf of Mexico

9,930


10,163


9,813


-2%


1%


GOM Shelf

-


-


950


NM


NM



North America

317,150


377,962


368,100


-16%


-14%


Egypt (1, 2)

153,667


147,950


151,219


4%


2%


Australia

59,353


66,625


52,790


-11%


12%


North Sea

70,993


80,806


67,695


-12%


5%



International (1)

284,013


295,381


271,704


-4%


5%




Total (1)

601,163


673,343


639,804


-11%


-6%

















Total excluding noncontrolling interests

549,914


623,743


589,860


-12%


-7%

















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





Oil (b/d)

30,671


29,391


29,066









Gas (Mcf/d)

121,408


119,578


124,799









NGL (b/d)

343


279


78






















(2) Egypt Gross Production - BOE per day 

343,762


344,122


352,841


0%


-3%

















Discontinued Operations - Argentina:













Oil (b/d)

-


-


6,885








Gas (Mcf/d)

-


-


141,352








NGL (b/d)

-


-


1,287





















BOE/d

-


-


31,731





 


APACHE CORPORATION

PRO FORMA PRODUCTION INFORMATION


Pro forma production excludes certain items that management believes affect the comparability of operating results for the periods presented. Pro forma production excludes divested assets, divestitures announced but not yet closed, production attributable to a noncontrolling interest in our Egypt oil and gas business, and Egypt tax barrels. Management uses pro forma production to evaluate the company's operational trends and performance and believes it is useful to investors and other third parties.









% Change


1Q15


4Q14


1Q14


1Q15 to 4Q14


1Q15 to 1Q14











  OIL VOLUME - Barrels per day











Permian

94,461


98,017


88,327


-4%


7%


Central

18,514


19,828


15,877


-7%


17%


Gulf Coast

7,753


6,459


2,853


20%


172%


Canada

16,817


17,117


17,409


-2%


-3%



N.A. Onshore

137,545


141,421


124,466


-3%


11%


Gulf of Mexico

5,885


6,319


6,284


-7%


-6%



North America

143,430


147,740


130,750


-3%


10%


Egypt

54,558


49,361


43,915


11%


24%


North Sea

59,818


64,344


55,085


-7%


9%



International

114,376


113,705


99,000


1%


16%




Total

257,806


261,445


229,750


-1%


12%














  TOTAL LIQUIDS - Barrels per day











Permian

122,445


131,429


113,587


-7%


8%


Central

34,773


37,442


31,234


-7%


11%


Gulf Coast

10,205


9,042


3,428


13%


198%


Canada

22,670


22,794


23,768


-1%


-5%



N.A. Onshore

190,093


200,707


172,017


-5%


11%


Gulf of Mexico

6,433


7,004


7,114


-8%


-10%



North America

196,526


207,711


179,131


-5%


10%


Egypt

55,170


49,834


44,039


11%


25%


North Sea

60,657


66,020


55,921


-8%


8%



International

115,827


115,854


99,960


0%


16%




Total

312,353


323,565


279,091


-3%


12%














  NATURAL GAS VOLUME - Mcf per day











Permian

216,968


223,787


215,860


-3%


1%


Central

189,967


184,074


166,096


3%


14%


Gulf Coast

9,190


15,771


9,326


-42%


-1%


Canada

285,520


294,664


290,752


-3%


-2%



N.A. Onshore

701,645


718,296


682,034


-2%


3%


Gulf of Mexico

20,977


18,955


16,193


11%


30%



North America

722,622


737,251


698,227


-2%


3%


Egypt

223,548


201,475


192,889


11%


16%


North Sea

49,325


70,116


37,648


-30%


31%



International

272,873


271,591


230,537


0%


18%




Total

995,495


1,008,842


928,764


-1%


7%














  BOE per day











Permian

158,607


168,727


149,564


-6%


6%


Central

66,434


68,121


58,917


-2%


13%


Gulf Coast

11,737


11,671


4,982


1%


136%


Canada

70,257


71,905


72,227


-2%


-3%



N.A. Onshore

307,035


320,424


285,690


-4%


7%


Gulf of Mexico

9,929


10,163


9,813


-2%


1%



North America

316,964


330,587


295,503


-4%


7%


Egypt

92,428


83,413


76,187


11%


21%


North Sea

68,878


77,706


62,196


-11%


11%



International

161,306


161,119


138,383


0%


17%




Total

478,270


491,706


433,886


-3%


10%

 


APACHE CORPORATION

PRICE INFORMATION























1Q15


4Q14


1Q14










  AVERAGE OIL PRICE PER BARREL







Permian

$ 44.44


$        67.59


$        93.76


Central

44.50


69.83


93.72


Gulf Coast

47.92


73.13


101.87


Canada

39.76


65.52


88.19



N.A. Onshore

44.07


68.21


93.72


Gulf of Mexico

45.87


73.94


101.42



North America

44.14


68.44


94.03


Egypt

52.29


73.34


106.70


Australia

43.17


71.83


112.26


North Sea

49.95


73.16


106.60



International

50.37


73.04


107.24




Total

47.56


70.89


101.03








  AVERAGE NATURAL GAS PRICE PER MCF







Permian

$   2.44


$           3.71


$           4.78


Central

2.93


4.03


5.20


Gulf Coast

1.42


4.06


4.93


Canada

2.58


3.56


4.38



N.A. Onshore

2.60


3.79


4.82


Gulf of Mexico

2.92


3.88


5.23



North America

2.61


3.79


4.75


Egypt

2.92


2.94


3.02


Australia

4.19


4.24


4.42


North Sea

7.40


8.77


10.69



International

3.73


4.03


4.03




Total

3.14


3.89


4.46








  AVERAGE NGL PRICE PER BARREL







Permian

$ 11.62


$        20.53


$        31.46


Central

9.65


17.17


30.39


Gulf Coast

12.17


20.34


35.90


Canada

11.09


24.38


42.09



N.A. Onshore

10.98


19.59


32.58


Gulf of Mexico

13.77


21.46


32.00



North America

11.01


19.61


32.25


Egypt

36.29


41.35


64.34


North Sea

24.74


45.55


79.84



International

30.95


44.22


77.11




Total

11.71


20.52


33.20








Discontinued Operations - Argentina:







Oil price ($/Bbl)

$        -


$               -


$        72.70


Gas price ($/Mcf)

-


-


3.04


NGL price ($/Bbl)

-


-


24.57

 



APACHE CORPORATION

SUMMARY BALANCE SHEET INFORMATION

(Unaudited)

(In millions)



March 31,


December 31,


2015


2014





Cash and Cash Equivalents

$        229


$               769

Assets Held for Sale

1,804


1,628

Other Current Assets

3,873


4,018

Property and Equipment, net

41,230


48,076

Goodwill

87


87

Other Assets

1,427


1,374


Total Assets

$  48,650


$          55,952





Short-Term Debt

$    2,598


$                     -

Other Current Liabilities

2,895


3,664

Long-Term Debt

9,675


11,245

Deferred Credits and Other Noncurrent Liabilities

10,077


12,906

Apache Shareholders' Equity

21,211


25,937

Noncontrolling interest

2,194


2,200


Total Liabilities and Shareholders' Equity

$  48,650


$          55,952





Common shares outstanding at end of period

377


377





% of total debt-to-capitalization

34%


29%













APACHE CORPORATION

SUMMARY OF COSTS INCURRED AND GTP CAPITAL INVESTMENTS

(Unaudited)

(In millions)






For the Quarter


Ended March 31,


2015


2014





Costs Incurred in Oil and Gas Property:





Acquisitions






Proved

$           -


$                    2



Unproved

92


44


Exploration and Development

1,418


2,509



1,510


2,555






GTP Capital Investments:





GTP Facilities

224


344






Total Costs Incurred and GTP Capital Investments

$    1,734


$            2,899

 


APACHE CORPORATION

NON-GAAP FINANCIAL MEASURES

(In millions, except per share data)



Reconciliation of income attributable to common stock to adjusted earnings

Adjusted earnings and adjusted earnings per share are non-GAAP financial measures. Adjusted earnings generally exclude certain items that management believes affect the comparability of operating results or are not related to Apache's ongoing operations. Management uses adjusted earnings to evaluate the company's operational trends and performance relative to other oil and gas companies. Management believes this presentation may be useful to investors who follow the practice of some industry analysts who adjust reported company earnings for items that may obscure underlying fundamentals and trends






For the Quarter


Ended March 31,


2015


2014





Income (Loss) Attributable to Common Stock (GAAP)

$         (4,651)


$              236





Adjustments:





Oil & gas property write-downs, net of tax

4,704


-


Acquisition, divestiture & separation costs, net of tax

36


12


Rig stacking costs, net of tax

28


-


Unrealized foreign currency fluctuation impact on deferred tax expense

10


7


Impairments

-


-


Argentina discontinued operations, net of tax

-


517


Loss on divested assets, net of tax

-


-


Unrealized commodity derivative mark-to-market, net of tax

-


(49)


Deferred tax adjustments (1)

(266)


(5)

Adjusted Earnings  (Non-GAAP)

$            (139)


$              718









Net Income (Loss) per Common Share - Diluted (GAAP)

$         (12.34)


$             0.60





Adjustments:





Oil & gas property write-downs, net of tax

12.48


-


Acquisition, divestiture & separation costs, net of tax

0.09


0.02


Rig stacking costs, net of tax

0.07


-


Unrealized foreign currency fluctuation impact on deferred tax expense

0.03


0.02


Impairments

-


-


Argentina discontinued operations, net of tax

-


1.30


Loss on divested assets, net of tax

-


-


Unrealized commodity derivative mark-to-market, net of tax

-


(0.12)


Deferred tax adjustments (1)

(0.70)


(0.01)

Adjusted Earnings Per Share - Diluted (Non-GAAP)

$           (0.37)


$             1.81









Total income tax provision (GAAP)

$         (2,854)


$              578





Adjustments:





Tax impact on oil & gas property write-downs

2,516


-


Deferred tax adjustments (1)

266


5


Tax impact on acquisition, divestiture & separation costs

18


6


Tax impact on rig stacking costs

15


-


Tax impact on impairments

-


-


Tax impact on loss on divested assets

-


-


Tax impact on unrealized commodity derivative mark-to-market

-


(27)


Unrealized foreign currency fluctuation impact on deferred tax expense

(10)


(7)

Adjusted total income tax provision

$               (49)


$              555





Adjusted Effective Tax Rate (Non-GAAP)

28.3%


40.5%









(1)

Deferred tax for the first quarter 2015 includes $619 million in benefits for the North Sea tax rate adjustment partially offset by Canada valuation allowance. Fourth quarter 2014 includes $840 million related to undistributed foreign earnings and other adjustments. 

 

APACHE CORPORATION

NON-GAAP FINANCIAL MEASURES

(Unaudited)

(In millions, except per share data)


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


Cash 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 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 


Ended March 31,


2015


2014

Net cash provided by operating activities (GAAP)

$              650


$           2,293






Less: Discontinued operations

-


(82)

Net cash provided by operating activities excluding discontinued operations

$              650


$           2,211

Changes in operating assets and liabilities

250


11





Cash from continuing operations before changes in operating assets and liabilities




$              900


$           2,222





APA-F

Logo - http://photos.prnewswire.com/prnh/20140116/DA47435LOGO

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/apache-corporation-announces-first-quarter-financial-and-operational-results-300079343.html

SOURCE Apache Corporation

News Provided by Acquire Media

Did you know that your Internet Explorer is out of date?

To get the best possible experience using our website we recommend that you upgrade to a newer version or other web browser. A list of the most popular web browsers can be found below.

Just click on the icons to get to the download page

  • Internet Explorer 7+
  • Firefox 3+
  • Chrome 2.0+