Apache Corporation announces second-quarter financial and operational results

Apache Corporation announces second-quarter financial and operational results

 - Increased onshore North American production 3 percent sequentially to approximately 317,000 barrels of oil equivalent (boe) per day, driven by a 13,500-boe-per-day increase in Permian Basin production.

- Delivered International and Offshore production (adjusted for divestitures, Egypt tax barrels and minority interest) of 172,000 boe per day, with strong contributions from recent Egyptian oil discoveries.

- Exited the second quarter with total debt of $9.7 billion and $3.0 billion of cash, a significant improvement from $12.3 billion of total debt and $200 million of cash at March 31, 2015.

- Raising 2015 onshore North American production guidance from flat year over year to up 1 to 2 percent, which brings full-year guidance to 305,000 to 308,000 boe per day.

- Updating 2015 International and Offshore production guidance (adjusted for divestitures, Egypt tax barrels and minority interest) to 164,000 to 168,000 boe per day, a 5 to 8 percent increase over 2014 pro forma production, and up from the previous guidance of a 'slight increase'.

HOUSTON, Aug. 6, 2015 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA) today announced a second-quarter 2015 net loss of $5.6 billion, or $14.83 per diluted common share, which includes an after-tax ceiling-test write down of $3.7 billion resulting from current low commodity-price levels and $1.9 billion of other items, mostly after-tax losses and tax expense associated with the company's assets sold during the quarter. When adjusted for certain items that impact the comparability of results, Apache's second-quarter net income totaled $82 million, or $0.22 per share. Adjusted EBITDA from continuing operations was $1.3 billion. Worldwide reported production for the second quarter was 564,000 boe per day. Including 35,000 boe per day of production associated with discontinued operations in Australia, Apache's total production was 599,000 boe per day.

"I am pleased to report that Apache made excellent progress toward achieving the ambitious 2015 goals we laid out earlier this year," said John J. Christmann, IV, Apache's chief executive officer and president. "In February, we established a plan to maintain relatively flat pro forma production in 2015, despite an aggressive 60 percent reduction in budgeted capital expenditures from 2014 levels. Year to date, our capital spending remains on track, but we have exceeded our production plan in the first half of 2015 and delivered correspondingly strong cash flow from continuing operations. As a result, we are raising our 2015 production guidance."

During the quarter, Apache closed the sales of its LNG business and its remaining oil and gas assets in Australia, which served to more strategically align the company's portfolio with its core competencies. "Exiting these businesses eliminated our exposure to projects with large capital-spending commitments and uncertain project timing," Christmann said. "We deployed a portion of the proceeds from these sales to pay down debt, leaving our balance sheet in excellent shape and positioning us for success in this low-commodity-price environment. Importantly, during the first half of 2015, we quickly and cost effectively reduced our drilling and completion activity, commensurate with the deteriorating oil-and-gas price environment. We have also restructured our operational organization to better align with and support our more focused asset base."

Apache has made significant progress on its cost structure through widespread efforts across the organization. In North America, the company is now realizing a 25 percent reduction in average per-well drilling and completion costs year over year. Lease-operating costs per barrel of oil equivalent during the quarter were down approximately 13 percent year over year, and we have taken steps to significantly reduce G&A from the beginning of the year that will be fully realized in 2016.

Asset-sale proceeds and liquidity

Apache received $5.7 billion in proceeds during the second quarter from the sales of its LNG interests and oil and gas properties in Australia and Canada, of which a portion was used to repay $2.7 billion of outstanding commercial paper and short-term credit facilities. At June 30, Apache's long-term debt was $9.7 billion, and cash was approximately $3 billion. The company has excellent liquidity with low-cost, short-term borrowing capacity of $3.5 billion under its commercial paper program, which is supported by a senior credit facility that now extends through June 2020.

Overhead-cost reductions and organizational restructuring

Management has taken a proactive and disciplined approach toward improving Apache's organizational structure and efficiency. During the quarter, the company announced and implemented key organizational changes to better align its operational and technical teams with its refocused asset base. These changes include transitioning to an operating structure that will enable the allocation of resources and personnel quickly and efficiently in response to changing industry conditions. In addition, Apache has consolidated its technical expertise into centers of excellence, which will support the operating regions and strengthen the ability to share best practices around the globe.

Christmann noted, "We are implementing multiple overhead-reduction initiatives throughout the year and are on track to achieve a 25 to 30 percent reduction in cash G&A costs by year-end. We continue to work to identify further savings." Following asset divestments and other initiatives to streamline the organization, headcount has been reduced by approximately 20 percent since the end of 2014.

Second-quarter capital spending and activity

Total capital expenditures (before leasehold acquisitions, capitalized interest, noncontrolling interest, LNG and Australia discontinued operations) in the second quarter were $857 million, down 28 percent from the first quarter. Apache operated an average of 34 rigs, drilled 78 wells and completed 108 wells during the second quarter, down from 61, 119 and 175, respectively, during the first quarter.

Second-quarter 2015 regional activity

  • Permian - Apache operated 10 rigs in the Permian and completed 53 wells during the second quarter, down from 15 operated rigs and 88 well completions in the first quarter. Production averaged 172,000 boe per day, nearly 9 percent higher than the first quarter.
    • Delaware Basin - Apache averaged five rigs, unchanged from the prior quarter, and targeted the Bone Spring and Wolfcamp formations in the Pecos Bend and Waha areas. Completions in the Pecos Bend area exhibited very high deliverability and added approximately 4,000 boe per day, which helped drive overall Permian growth in the quarter.
    • Midland Basin - Apache averaged three rigs during the quarter, all targeting its southern Midland focus areas in Glasscock, Reagan, Upton and Midland counties. The company completed 20 wells during the quarter with notable results coming from the Upper Wolfcamp in the Wildfire area of Midland County and in the SRH area of northern Reagan County. Apache also had strong results from nine well completions in the Barnhart area.
    • Central Basin Platform/NW Shelf - Apache averaged two rigs during the quarter targeting the Yeso formation in its Cedar Lake play in Eddy County. In addition, the company has several high-rate-of-return, low-capital-cost initiatives underway in its CO2 and waterflood project areas that are helping to mitigate regional production declines.
  • Midcontinent (formerly Central) - During the quarter, Apache ramped down to two rigs in the Midcontinent, where it targeted the Woodford/SCOOP, Canyon Lime and Marmaton plays. Production declined 7 percent, or 4,700 boe per day, sequentially as a result of declining completion activity.
  • Gulf Coast (Eagle Ford) - Apache ramped down from an average of four rigs in the first quarter to zero during the second quarter. Production increased 20 percent, or 2,400 boe per day, sequentially as four new high-volume wells were placed on production. In the Ferguson Crossing area, the company placed on production its two most prolific wells in the play to date. The Walker 1H and 3H wells averaged 1,935 boe per day in their first 30 days of production, significantly exceeding Apache's "Area A" type curve. The strong well results were the product of optimized frac design, spacing, fluid composition and proppant type.
  • Canada - Production was down 3 percent, or 1,900 boe per day, sequentially, which was a lower-than-expected decline, resulting primarily from decreased operational downtime and better well performance.
  • Egypt - Gross production was up 2 percent sequentially on strong delineation-drilling results at the Ptah and Berenice oil fields. Apache also made several new field discoveries across multiple concessions during the second quarter, which increases its confidence in Egypt's oil-production outlook for the remainder of 2015. In the second quarter, Apache drilled nine exploration wells with a success rate of 78 percent, significantly above its historical average exploration-success rate.
  • North Sea - Production decreased modestly from first-quarter levels as the company performed two significant seasonal platform-maintenance turnarounds during the quarter. Absent the maintenance turnaround, which impacted production by approximately 3,300 boe per day, production would have been up sequentially in the second quarter. Apache drilled eight new wells in the North Sea with a 90 percent success rate, including its first-ever subsea-tieback exploration well in the Beryl area.

"Apache's second-quarter production performance was very strong both domestically and internationally," Christmann remarked. "In North America, all of our key operating areas exceeded our expectations, and we delivered these results on a disciplined capital budget. Internationally, our drilling-success rate in Egypt and the North Sea was well above our historical success rate. As a result, we are raising our full-year 2015 North American production guidance to 305,000 to 308,000 boe per day and are updating our International and Offshore production guidance to a range of 164,000 to 168,000 boe per day. We are also tightening our 2015 capital-budget guidance range from $3.4 to $3.9 billion to $3.6 to $3.9 billion."

2015 planned activity increase

Greater capital efficiencies and lower costs are enabling the company to increase its onshore North American activity levels in the second half of the year. In North America, the company plans to average approximately 16 rigs in the second half of the year, 13 of which will be in the Permian Basin. Apache expects to reach total depth on an additional 40 to 50 wells and complete an additional 30 to 35 wells beyond its original plan for 2015. The company continues to anticipate that it will have a backlog of 80 to 100 drilled-but-uncompleted wells in North America at the end of 2015.

"This increase in activity during the second half of 2015 is not expected to have a material impact on our full-year 2015 production; however, it will establish a positive production trajectory in the fourth quarter and heading in to 2016," Christmann concluded.

Conference call

Apache Corporation (NYSE, Nasdaq: APA) will host a conference call Thursday, Aug. 6, 2015, to discuss its second-quarter 2015 financial results. The call will begin at 1 p.m. CT (2 p.m. ET). To access the live audio webcast, please visit Apache's 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 31405369.

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, adjusted EBITDA and net debt (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 and the United Kingdom. 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, adjusted EBITDA 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" 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.

Website: www.apachecorp.com

 

APACHE CORPORATION

STATEMENT OF CONSOLIDATED OPERATIONS

(Unaudited)

(In millions, except per share data)

                   
                   
     

For the Quarter

 

For the Six Months

     

Ended June 30,

 

Ended June 30,

     

2015

 

2014

 

2015

 

2014

                   

REVENUES AND OTHER:

             
 

Oil revenues

$                    1,599

 

$                    2,797

 

$                    2,879

 

$                    5,442

 

Gas revenues

295

 

505

 

595

 

1,065

 

NGL revenues

58

 

169

 

116

 

355

 

Oil and gas production revenues

1,952

 

3,471

 

3,590

 

6,862

 

Derivative instrument gains (losses), net

-

 

(174)

 

-

 

(194)

 

Other 

 

25

 

(8)

 

17

 

9

     

1,977

 

3,289

 

3,607

 

6,677

                   

COSTS AND EXPENSES:

             
 

Depreciation, depletion and amortization

             
 

Oil and gas property and equipment

             
 

    Recurring

923

 

1,074

 

1,922

 

2,096

 

    Additional

5,816

 

203

 

13,036

 

203

 

Other assets

83

 

81

 

166

 

159

 

Asset retirement obligation accretion

36

 

38

 

72

 

76

 

Lease operating expenses

467

 

560

 

948

 

1,108

 

Gathering and transportation 

49

 

66

 

105

 

136

 

Taxes other than income

55

 

177

 

128

 

358

 

General and administrative

111

 

113

 

193

 

221

 

Transaction, reorganization & separation costs

66

 

14

 

120

 

32

 

Financing costs, net

63

 

52

 

133

 

97

     

7,669

 

2,378

 

16,823

 

4,486

                   

INCOME (LOSS) BEFORE INCOME TAXES

(5,692)

 

911

 

(13,216)

 

2,191

 

Current income tax provision 

665

 

373

 

580

 

740

 

Deferred income tax provision (benefit)

(1,525)

 

(19)

 

(4,460)

 

144

                   

INCOME (LOSS) FROM CONTINUING OPS INCLUDING NONCONTROLLING INTEREST

(4,832)

 

557

 

(9,336)

 

1,307

 

Income (Loss) from discontinued operations, net of tax

(732)

 

56

 

(864)

 

(360)

                   

INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST

(5,564)

 

613

 

(10,200)

 

947

 

Net income attributable to noncontrolling interest

36

 

108

 

51

 

206

                   

INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK

$                  (5,600)

 

$                       505

 

$                (10,251)

 

$                       741

                   

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS

             
 

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

$                  (4,868)

 

$                       449

 

$                  (9,387)

 

$                    1,101

 

Net income (loss) from discontinued operations

(732)

 

56

 

(864)

 

(360)

 

Net income (loss) attributable to common shareholders

$                  (5,600)

 

$                       505

 

$                (10,251)

 

$                       741

                   

BASIC NET INCOME (LOSS) PER COMMON SHARE:

             
 

Basic net income (loss) from continuing operations per share

$                  (12.89)

 

$                      1.17

 

$                  (24.88)

 

$                      2.83

 

Basic net income (loss) from discontinued operations per share

(1.94)

 

0.14

 

(2.29)

 

(0.93)

 

Basic net income (loss) per share

$                  (14.83)

 

$                      1.31

 

$                  (27.17)

 

$                      1.90

                   

DILUTED NET INCOME (LOSS) PER COMMON SHARE:

             
 

Diluted net income (loss) from continuing operations per share

$                  (12.89)

 

$                      1.17

 

$                  (24.88)

 

$                      2.82

 

Diluted net income (loss) from discontinued operations per share

(1.94)

 

0.14

 

(2.29)

 

(0.93)

 

Diluted net income (loss) per share

$                  (14.83)

 

$                      1.31

 

$                  (27.17)

 

$                      1.89

                   

WEIGHTED-AVERAGE NUMBER OF COMMON 

             

   SHARES OUTSTANDING:

             
 

Basic

 

378

 

385

 

377

 

390

 

Diluted

 

378

 

387

 

377

 

392

                   

DIVIDENDS DECLARED PER COMMON SHARE

$                      0.25

 

$                      0.25

 

$                      0.50

 

$                      0.50

 

 

APACHE CORPORATION

PRODUCTION INFORMATION

                                     
                       

% Change

       
           

2Q15

 

1Q15

 

2Q14

 

2Q15 to 1Q15

 

2Q15 to 2Q14

 

YTD 2015

 

YTD 2014

                                     

OIL VOLUME - Barrels per day

                           
 

Permian

   

97,814

 

94,461

 

90,536

 

4%

 

8%

 

96,146

 

89,437

 

Midcontinent (formerly Central)

 

16,491

 

18,509

 

21,987

 

-11%

 

-25%

 

17,495

 

21,837

 

Gulf Coast

 

7,940

 

7,784

 

10,977

 

2%

 

-28%

 

7,862

 

10,976

 

Canada

   

15,791

 

16,875

 

17,981

 

-6%

 

-12%

 

16,330

 

17,786

   

N.A. Onshore

 

138,036

 

137,629

 

141,481

 

0%

 

-2%

 

137,833

 

140,036

 

Gulf of Mexico

 

5,453

 

5,885

 

6,896

 

-7%

 

-21%

 

5,668

 

6,592

 

GOM Shelf

 

-

 

-

 

2

 

NM

 

NM

 

-

 

339

 

Egypt (1)

   

99,975

 

91,971

 

88,643

 

9%

 

13%

 

95,995

 

88,370

 

North Sea

 

58,873

 

61,699

 

61,610

 

-5%

 

-4%

 

60,279

 

60,358

   

International and Offshore (1)

 

164,301

 

159,555

 

157,151

 

3%

 

5%

 

161,942

 

155,659

     

Total (1)

 

302,337

 

297,184

 

298,632

 

2%

 

1%

 

299,775

 

295,695

                                     
                                     

TOTAL LIQUIDS - Barrels per day

                           
 

Permian

   

133,043

 

122,445

 

119,712

 

9%

 

11%

 

127,773

 

116,666

 

Midcontinent

 

32,359

 

34,654

 

45,725

 

-7%

 

-29%

 

33,501

 

45,931

 

Gulf Coast

 

11,264

 

10,328

 

13,522

 

9%

 

-17%

 

10,798

 

13,460

 

Canada

   

21,616

 

22,728

 

23,902

 

-5%

 

-10%

 

22,169

 

24,626

   

N.A. Onshore

 

198,282

 

190,155

 

202,861

 

4%

 

-2%

 

194,241

 

200,683

 

Gulf of Mexico

 

5,976

 

6,433

 

8,062

 

-7%

 

-26%

 

6,203

 

7,591

 

GOM Shelf

 

-

 

-

 

2

 

NM

 

NM

 

-

 

384

 

Egypt (1)

   

101,189

 

93,002

 

89,527

 

9%

 

13%

 

97,118

 

88,930

 

North Sea

 

59,699

 

62,585

 

62,977

 

-5%

 

-5%

 

61,135

 

61,588

   

International and Offshore (1)

 

166,864

 

162,020

 

160,568

 

3%

 

4%

 

164,456

 

158,493

     

Total (1)

 

365,146

 

352,175

 

363,429

 

4%

 

0%

 

358,697

 

359,176

                                     

NATURAL GAS VOLUME - Mcf per day

                           
 

Permian

   

234,379

 

216,968

 

213,192

 

8%

 

10%

 

225,722

 

214,519

 

Midcontinent

 

175,967

 

190,214

 

264,948

 

-7%

 

-34%

 

183,051

 

262,636

 

Gulf Coast

 

16,252

 

7,659

 

95,765

 

112%

 

-83%

 

11,979

 

97,494

 

Canada

   

282,971

 

287,556

 

316,740

 

-2%

 

-11%

 

285,251

 

347,057

   

N.A. Onshore

 

709,569

 

702,397

 

890,645

 

1%

 

-20%

 

706,003

 

921,706

 

Gulf of Mexico

 

20,190

 

20,977

 

22,804

 

-4%

 

-11%

 

20,581

 

19,517

 

GOM Shelf

 

-

 

-

 

261

 

NM

 

NM

 

-

 

674

 

Egypt (1)

   

405,544

 

363,989

 

367,950

 

11%

 

10%

 

384,881

 

372,628

 

North Sea

 

56,367

 

50,445

 

54,848

 

12%

 

3%

 

53,423

 

49,986

   

International and Offshore (1)

 

482,101

 

435,411

 

445,863

 

11%

 

8%

 

458,885

 

442,805

     

Total (1)

 

1,191,670

 

1,137,808

 

1,336,508

 

5%

 

-11%

 

1,164,888

 

1,364,511

                                     

  BOE per day

                           
 

Permian

   

172,106

 

158,606

 

155,244

 

9%

 

11%

 

165,394

 

152,420

 

Midcontinent

 

61,688

 

66,357

 

89,883

 

-7%

 

-31%

 

64,009

 

89,704

 

Gulf Coast

 

13,973

 

11,604

 

29,483

 

20%

 

-53%

 

12,795

 

29,710

 

Canada

   

68,778

 

70,653

 

76,692

 

-3%

 

-10%

 

69,711

 

82,469

   

N.A. Onshore

 

316,545

 

307,220

 

351,302

 

3%

 

-10%

 

311,909

 

354,303

 

Gulf of Mexico

 

9,340

 

9,930

 

11,862

 

-6%

 

-21%

 

9,633

 

10,843

 

GOM Shelf

 

-

 

-

 

46

 

NM

 

NM

 

-

 

496

 

Egypt (1, 2)

   

168,779

 

153,667

 

150,853

 

10%

 

12%

 

161,264

 

151,035

 

North Sea

 

69,094

 

70,993

 

72,118

 

-3%

 

-4%

 

70,038

 

69,918

   

International and Offshore (1)

 

247,213

 

234,590

 

234,879

 

5%

 

5%

 

240,935

 

232,292

     

Total (1)

 

563,758

 

541,810

 

586,181

 

4%

 

-4%

 

552,844

 

586,595

                                     
     

Total excluding noncontrolling interests

 

507,699

 

490,561

 

535,934

 

3%

 

-5%

 

499,177

 

536,499

                                     
     

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

               
       

Oil (b/d)

 

33,247

 

30,671

 

29,508

         

31,966

 

29,288

       

Gas (Mcf/d)

 

134,445

 

121,408

 

122,665

         

127,963

 

123,726

       

NGL (b/d)

 

404

 

343

 

295

         

374

 

187

                                     
     

(2)Egypt Gross Production - BOE per day 

 

349,398

 

343,762

 

351,059

 

2%

 

0%

 

346,597

 

351,944

                                     
     

Discontinued Operations:

                           
     

Oil (b/d)

 

9,849

 

20,905

 

14,555

         

15,346

 

19,107

     

Gas (Mcf/d)

 

149,336

 

230,691

 

210,470

         

189,789

 

283,402

     

NGL (b/d)

 

-

 

-

 

-

         

-

 

640

                                     
     

BOE/d

 

34,738

 

59,353

 

49,633

         

46,978

 

66,981

 

 

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 production attributable to 1) divested assets, 2) noncontrolling interest in Egypt, and 3) 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

       
           

2Q15

 

1Q15

 

2Q14

 

2Q15 to 1Q15

 

2Q15 to 2Q14

 

YTD 2015

 

YTD 2014

                                     

  OIL VOLUME - Barrels per day

                           
 

Permian

   

97,814

 

94,461

 

90,536

 

4%

 

8%

 

96,146

 

89,437

 

Midcontinent (formerly Central)

 

16,515

 

18,514

 

17,222

 

-11%

 

-4%

 

17,509

 

16,553

 

Gulf Coast

 

7,937

 

7,752

 

2,893

 

2%

 

174%

 

7,845

 

2,873

 

Canada

   

15,776

 

16,817

 

17,817

 

-6%

 

-11%

 

16,294

 

17,614

   

N.A. Onshore

 

138,042

 

137,544

 

128,468

 

0%

 

7%

 

137,794

 

126,477

 

Gulf of Mexico

 

5,453

 

5,885

 

6,896

 

-7%

 

-21%

 

5,668

 

6,592

 

Egypt

     

54,977

 

54,558

 

43,117

 

1%

 

28%

 

54,769

 

43,514

 

North Sea

 

58,164

 

59,818

 

58,971

 

-3%

 

-1%

 

58,986

 

57,039

   

International and Offshore 

 

118,594

 

120,261

 

108,984

 

-1%

 

9%

 

119,423

 

107,145

     

Total

 

256,636

 

257,805

 

237,452

 

0%

 

8%

 

257,217

 

233,622

                                     

  TOTAL LIQUIDS - Barrels per day

                           
 

Permian

   

133,043

 

122,445

 

119,712

 

9%

 

11%

 

127,773

 

116,665

 

Midcontinent

 

32,265

 

34,773

 

32,990

 

-7%

 

-2%

 

33,512

 

32,116

 

Gulf Coast

 

11,266

 

10,204

 

3,712

 

10%

 

204%

 

10,738

 

3,571

 

Canada

   

21,575

 

22,670

 

23,257

 

-5%

 

-7%

 

22,120

 

23,511

   

N.A. Onshore

 

198,149

 

190,092

 

179,671

 

4%

 

10%

 

194,143

 

175,863

 

Gulf of Mexico

 

5,976

 

6,433

 

8,062

 

-7%

 

-26%

 

6,203

 

7,591

 

Egypt

     

55,648

 

55,170

 

43,572

 

1%

 

28%

 

55,411

 

43,805

 

North Sea

 

58,966

 

60,657

 

60,169

 

-3%

 

-2%

 

59,807

 

58,057

   

International and Offshore 

 

120,590

 

122,260

 

111,803

 

-1%

 

8%

 

121,421

 

109,453

     

Total

 

318,739

 

312,352

 

291,474

 

2%

 

9%

 

315,564

 

285,316

                                     

  NATURAL GAS VOLUME - Mcf per day

                         
 

Permian

   

234,380

 

216,968

 

213,192

 

8%

 

10%

 

225,721

 

214,519

 

Midcontinent

 

176,345

 

189,967

 

175,416

 

-7%

 

1%

 

183,119

 

170,782

 

Gulf Coast

 

16,333

 

9,190

 

8,892

 

78%

 

84%

 

12,781

 

9,107

 

Canada

   

282,651

 

285,520

 

287,603

 

-1%

 

-2%

 

284,078

 

289,169

   

N.A. Onshore

 

709,709

 

701,645

 

685,103

 

1%

 

4%

 

705,699

 

683,577

 

Gulf of Mexico

 

20,190

 

20,977

 

22,817

 

-4%

 

-12%

 

20,581

 

19,523

 

Egypt

     

233,797

 

223,548

 

181,791

 

5%

 

29%

 

228,701

 

187,310

 

North Sea

 

55,489

 

49,325

 

50,541

 

12%

 

10%

 

52,424

 

44,130

   

International and Offshore 

 

309,476

 

293,850

 

255,149

 

5%

 

21%

 

301,706

 

250,963

     

Total

 

1,019,185

 

995,495

 

940,252

 

2%

 

8%

 

1,007,405

 

934,540

                                     

  BOE per day

                           
 

Permian

   

172,106

 

158,606

 

155,244

 

9%

 

11%

 

165,393

 

152,419

 

Midcontinent

 

61,655

 

66,435

 

62,225

 

-7%

 

-1%

 

64,032

 

60,580

 

Gulf Coast

 

13,988

 

11,736

 

5,194

 

19%

 

169%

 

12,868

 

5,089

 

Canada

   

68,684

 

70,257

 

71,191

 

-2%

 

-4%

 

69,466

 

71,706

   

N.A. Onshore

 

316,433

 

307,034

 

293,854

 

3%

 

8%

 

311,759

 

289,794

 

Gulf of Mexico

 

9,340

 

9,930

 

11,865

 

-6%

 

-21%

 

9,633

 

10,845

 

Egypt

     

94,615

 

92,428

 

73,871

 

2%

 

28%

 

93,527

 

75,023

 

North Sea

 

68,214

 

68,878

 

68,592

 

-1%

 

-1%

 

68,544

 

65,412

   

International and Offshore 

 

172,169

 

171,236

 

154,328

 

1%

 

12%

 

171,704

 

151,280

     

Total

 

488,602

 

478,270

 

448,182

 

2%

 

9%

 

483,463

 

441,074

 

 

 

APACHE CORPORATION

PRICE INFORMATION

                             
                             
           

2Q15

 

1Q15

 

2Q14

 

YTD 2015

 

YTD 2014

                             

AVERAGE OIL PRICE PER BARREL

                   
 

Permian

   

$        53.77

 

$        44.44

 

$        94.33

 

$        49.21

 

$        94.05

 

Midcontinent (formerly Central)

 

52.46

 

44.50

 

100.39

 

48.27

 

97.10

 

Gulf Coast

 

56.79

 

47.92

 

103.81

 

52.42

 

102.84

 

Canada

   

52.22

 

39.76

 

94.66

 

45.81

 

91.47

   

N.A. Onshore

 

53.56

 

44.07

 

96.06

 

48.85

 

94.91

 

Gulf of Mexico

 

57.69

 

45.87

 

102.63

 

51.59

 

102.06

 

Egypt

     

60.83

 

52.29

 

109.74

 

56.76

 

108.24

 

North Sea

 

64.03

 

49.95

 

109.33

 

56.86

 

108.00

     

Total

 

58.09

 

47.87

 

102.95

 

53.05

 

101.69

                             

AVERAGE NATURAL GAS PRICE PER MCF

                 
 

Permian

   

$           2.24

 

$           2.44

 

$           4.48

 

$           2.33

 

$           4.63

 

Midcontinent

 

2.41

 

2.93

 

4.49

 

2.68

 

4.84

 

Gulf Coast

 

1.93

 

1.42

 

4.72

 

1.77

 

4.83

 

Canada

   

2.34

 

2.58

 

4.21

 

2.46

 

4.30

   

N.A. Onshore

 

2.31

 

2.60

 

4.41

 

2.45

 

4.62

 

Gulf of Mexico

 

2.61

 

2.92

 

4.35

 

2.77

 

4.71

 

Egypt

     

2.91

 

2.92

 

2.96

 

2.92

 

2.99

 

North Sea

 

7.35

 

7.40

 

7.75

 

7.37

 

9.07

     

Total

 

2.73

 

2.93

 

4.15

 

2.82

 

4.31

                             

AVERAGE NGL PRICE PER BARREL

                   
 

Permian

   

$        10.28

 

$        11.62

 

$        28.46

 

$        10.87

 

$        29.85

 

Midcontinent

 

8.82

 

9.65

 

25.03

 

9.23

 

27.74

 

Gulf Coast

 

13.75

 

12.17

 

27.86

 

13.07

 

31.76

 

Canada

   

4.41

 

11.09

 

31.67

 

7.74

 

37.56

   

N.A. Onshore

 

9.52

 

10.98

 

27.42

 

10.20

 

29.96

 

Gulf of Mexico

 

14.72

 

13.77

 

31.73

 

14.24

 

31.84

 

Egypt

     

28.82

 

36.29

 

57.67

 

32.23

 

59.05

 

North Sea

 

30.94

 

24.74

 

61.81

 

27.75

 

69.77

     

Total

 

10.21

 

11.71

 

28.64

 

10.91

 

30.86

                             

Discontinued Operations:

                   
 

Oil price ($/Bbl)

 

$        63.60

 

$        43.17

 

$      115.34

 

$        49.76

 

$      106.35

 

Gas price ($/Mcf)

 

3.88

 

4.19

 

4.40

 

4.07

 

4.07

 

NGL price ($/Bbl)

 

-

 

-

 

-

 

-

 

24.57

 

 

APACHE CORPORATION

SUMMARY BALANCE SHEET INFORMATION

(Unaudited)

(In millions)

                       
         

June 30,

 

December 31,

       
         

2015

 

2014

       
                       
 

Cash and Cash Equivalents

 

$                    2,950

 

$                       769

       
 

Assets Held for Sale

 

-

 

1,628

       
 

Other Current Assets 

 

2,543

 

4,018

       
 

Property and Equipment, net

 

28,315

 

48,076

       
 

Goodwill

 

87

 

87

       
 

Other Assets

 

1,417

 

1,374

       
 

Total Assets

 

$                 35,312

 

$                 55,952

       
                       
 

Other Current Liabilities

 

$                   2,383

 

$                   3,664

       
 

Long-Term Debt

 

9,676

 

11,245

       
 

Deferred Credits and Other Noncurrent Liabilities

 

5,498

 

12,906

       
 

Apache Shareholders' Equity

 

15,544

 

25,937

       
 

Noncontrolling interest

 

2,211

 

2,200

       
 

Total Liabilities and Shareholders' Equity

 

$                 35,312

 

$                 55,952

       
                       
 

Common shares outstanding at end of period

 

377

 

377

       
                       
 

% of total debt-to-capitalization

 

35%

 

29%

       

 

 

APACHE CORPORATION

SUMMARY OF COSTS INCURRED AND GTP CAPITAL INVESTMENTS

(Unaudited)

(In millions)

                       
         

For the Quarter

 

For the Six Months

         

Ended June 30,

 

Ended June 30,

         

2015

 

2014

 

2015

 

2014

                       
 

Costs Incurred in Oil and Gas Property:

               
   

Acquisitions

               
     

Proved

 

$                           -

 

$                            3

 

$                           -

 

$                            5

     

Unproved

 

36

 

79

 

128

 

123

   

Exploration and Development

 

1,023

 

2,475

 

2,441

 

4,984

         

1,059

 

2,557

 

2,569

 

5,112

                       
 

GTP Capital Investments:

               
   

GTP Facilities

 

36

 

378

 

260

 

723

                       
 

Total Costs Incurred and GTP Capital Investments

 

$                    1,095

 

$                    2,935

 

$                    2,829

 

$                    5,835

 

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 

 

For the Six Months

     

Ended June 30,

 

Ended June 30,

     

2015

 

2014

 

2015

 

2014

                   

Income (Loss) Attributable to Common Stock (GAAP)

$        (5,600)

 

$              505

 

$       (10,251)

 

$              741

                   

Adjustments:

             
 

Oil & gas property write-downs, net of tax

3,734

 

77

 

8,438

 

77

 

Discontinued operations, net of tax

732

 

(56)

 

864

 

360

 

Tax adjustments (1)

1,173

 

-

 

758

 

(5)

 

Transaction, reorganization & separation costs, net of tax

43

 

9

 

78

 

21

 

Rig stacking costs, net of tax

-

 

10

 

28

 

10

 

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

-

 

31

 

-

 

(18)

Adjusted Earnings  (Non-GAAP)

$                82

 

$              576

 

$               (85)

 

$           1,186

                   

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

$         (14.83)

 

$             1.31

 

$         (27.17)

 

$             1.89

                   

Adjustments:

             
 

Oil & gas property write-downs, net of tax

9.87

 

0.20

 

22.37

 

0.20

 

Discontinued operations, net of tax

1.94

 

(0.14)

 

2.29

 

0.92

 

Tax adjustments (1)

3.12

 

-

 

2.00

 

(0.01)

 

Transaction, reorganization & separation costs, net of tax

0.12

 

0.02

 

0.21

 

0.05

 

Rig stacking costs, net of tax

-

 

0.02

 

0.07

 

0.02

 

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

-

 

0.08

 

-

 

(0.04)

Adjusted Earnings Per Share - Diluted (Non-GAAP)

$             0.22

 

$             1.49

 

$           (0.23)

 

$             3.03

                   
                   

Total income tax provision (GAAP)

$            (860)

 

$              354

 

$         (3,880)

 

$              884

                   

Adjustments:

             
 

Tax impact on oil & gas property write-downs

2,081

 

126

 

4,597

 

126

 

Tax impact on transaction, reorganization & separation costs

23

 

5

 

41

 

11

 

Tax impact on rig stacking costs

-

 

5

 

15

 

5

 

Tax impact on unrealized commodity derivative mark-to-market

-

 

18

 

-

 

(9)

 

Tax adjustments (1)

(1,173)

 

-

 

(758)

 

5

Adjusted total income tax provision

$                71

 

$              508

 

$                15

 

$           1,022

                   

Adjusted Effective Tax Rate (Non-GAAP)

37.6%

 

42.7%

 

NM

 

42.3%

                   

(1)

Tax adjustments are primarily related to a Canada valuation allowance and valuation allowances associated with projected utilization of the Company's foreign tax credit carryforward. The valuation allowances were partially offset by $619 million in benefits for the North Sea tax rate change in the first quarter of 2015.

 

APACHE CORPORATION

NON-GAAP FINANCIAL MEASURES

(In millions, except per share data)

                   
                   

Reconciliation of income (loss) before taxes to adjusted EBITDA

   

Adjusted EBITDA is a non-GAAP financial measure. EBITDA is a widely accepted financial indicator of a company's ability to incur and service debt, fund capital expenditures, and make distributions to shareholders.  Adjusted EBITDA generally excludes certain items that management believes affect the comparability of operating results or are not related to Apache's ongoing operations.  Management uses adjusted EBITDA to evaluate the company's operational trends and performance relative to other oil and gas companies. 

                   
     

For the Quarter 

 

For the Six Months

     

Ended June 30,

 

Ended June 30,

     

2015

 

2014

 

2015

 

2014

                   

Income (loss) before income taxes

$         (5,692)

 

$              911

 

$       (13,216)

 

$           2,191

                   

Adjustments:

             
 

Depreciation, depletion and amortization

             
 

Oil and gas property and equipment

             
 

    Recurring

923

 

1,074

 

1,922

 

2,096

 

    Additional

5,816

 

203

 

13,036

 

203

 

Other assets

83

 

81

 

166

 

159

 

Asset retirement obligation accretion

36

 

38

 

72

 

76

 

Transaction, reorganization & separation costs

66

 

14

 

120

 

32

 

Financing costs, net

63

 

52

 

133

 

97

 

Rig stacking costs

-

 

15

 

43

 

15

 

Unrealized commodity derivative mark-to-market

-

 

48

 

-

 

(27)

 

Less: net income attributable to noncontrolling interests

(36)

 

(108)

 

(51)

 

(206)

Adjusted EBITDA  (Non-GAAP)

$           1,259

 

$           2,328

 

$           2,225

 

$           4,636

                   
                   
                   
                   

Reconciliation of debt to net debt

           

Net debt 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 equivelents on hand.

                   
     

June 30,

 

March 31,

 

December 31,

   
     

2015

 

2015

 

2014

   
                   

Current debt

$                    -

 

$           2,598

 

$                    -

   

Long-term debt

9,676

 

9,675

 

11,245

   
 

Total debt

9,676

 

12,273

 

11,245

   
                   

Cash

 

2,950

 

229

 

769

   
                   

Net debt

 

$           6,726

 

$        12,044

 

$        10,476

   

 

 

 

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APA-F

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/apache-corporation-announces-second-quarter-financial-and-operational-results-300124748.html

SOURCE Apache Corporation

 

 

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