exv99w1

EXHIBIT 99.1

CONTACTS:


(Media):	Bill Mintz	(713) 296-7276
	Robert Dye	(713) 296-6662
(Investor):	Tom Chambers	(713) 296-6685

(Web site):	www.apachecorp.com

FOR RELEASE AT 7:45 A.M. CENTRAL TIME

APACHE’S THIRD-QUARTER PRODUCTION EXCEEDS 600,000 BOE PER DAY

Houston, Oct. 29, 2009 — Apache Corporation (NYSE, Nasdaq: APA) today reported that for the first time average worldwide production surpassed 600,000 barrels of oil equivalent (boe) per day during the third quarter, increasing 3.4 percent from the second quarter and 19 percent from the prior-year period.

“Apache’s regional growth drivers put the company on track for record production and solid financial results in 2009, and we will enter 2010 with strong momentum, including two development projects in Australia that should add 40,000 barrels of oil per day to worldwide output when they commence operations in the first half,” said G. Steven Farris, chairman and chief executive officer.

The company produced 607,118 boe per day in the third quarter. Liquid hydrocarbons production averaged 297,997 barrels per day, up 2 percent from the second quarter. Gas production averaged 1.85 billion cubic feet per day, up 5 percent from the second quarter.

Apache reported net income of $441 million, or $1.30 per diluted common share, compared with $1.2 billion, or $3.52 per share, in the prior-year period. Third-quarter cash from operations before changes in operating assets and liabilities* totaled $1.3 billion, compared with $2.1 billion in the prior-year period.

Apache’s third-quarter adjusted earnings,* which exclude certain items that impact the comparability of operating results, totaled $534 million, or $1.58 per share, compared to adjusted earnings of $1.1 billion, or $3.19 per share, in the prior-year period.

Apache had approximately $1.4 billion in cash at the end of the third quarter. Debt was 24.7 percent of total capitalization.

Third-quarter operational highlights included:

	•		The Egypt Region achieved a new record for gross operated production of 290,452 boe per day, up 6 percent from the second quarter and 27 percent from the prior-year period, driven by increased gas output from two new processing trains at the Salam Gas Plant and increased oil production from the Faghur Basin in the Khalda Offset Concession. Net production was down slightly because higher oil prices and lower capital spending reduced cost-recovery barrels under the terms of production-sharing contracts.

	•		In Australia, net gas production averaged a record 225 million cubic feet (MMcf) per day.

	•		At the Forties Field in the North Sea, record net production of 71,472 boe per day during the month of July contributed to the second-best quarter since Apache took over operations in 2003. Third-quarter oil output increased 13 percent from the second quarter to 67,288 barrels of oil per day on strong drilling results and increased field efficiency.

	•		The deepwater Geauxpher Field at Garden Banks Block 462 in the Gulf of Mexico produced 98 MMcf per day during the third quarter; Apache’s net was 39 MMcf per day.

Projects that will drive Apache’s growth in 2010 include:

	•		In Australia, the Ningaloo Vision floating production, storage and offloading vessel (FPSO) is expected to arrive at the Van Gogh field in the Exmouth Basin in November, with first production expected in early 2010. Van Gogh is projected to add 20,000 barrels per day to Apache’s annual net oil production. Pyrenees, a second oil project in the Exmouth Basin, is projected to begin ramping up to 20,000 barrels per day (net) during the first half.

	•		Production at Apache’s Ootla development in the Horn River Basin shale play in northeast British Columbia is projected to ramp up during the second quarter. Apache and its joint venture partner EnCana plan to have 27 horizontal wells (gross) on production by the end of the first half.

	•		Apache is planning to drill more than 20 horizontal wells in the Granite Wash play in western Oklahoma and the Texas Panhandle during 2010. The Hostetter #1-23H, Apache’s first

operated horizontal Granite Wash well, is producing 17 MMcf of natural gas and 800 barrels of liquids per day.

Apache also took steps to build its pipeline of long-term growth projects.

	•		Apache and Kuwait Foreign Petroleum Exploration Co. (KUFPEC) signed an exclusive agreement to supply gas from their Julimar and Brunello discoveries and become foundation equity partners in Chevron’s Wheatstone liquefied natural gas (LNG) hub in Western Australia, unlocking an estimated 2.1 trillion cubic feet of gross gas reserves from two of Apache’s largest discoveries. Apache holds a 65-percent interest in the discoveries.

	•		In Argentina, Apache received government approvals of new contracts to supply 50 MMcf of gas per day from two fields in Argentina’s Neuquen and Rio Negro provinces at a price of $5 per million British thermal units (MMBtu). The new contracts — the first approved by the secretary of energy under the government’s Gas Plus program — are scheduled to commence in January 2011, although the customer — a power plant operator — has indicated it may begin taking gas in mid-2010. Apache has submitted five additional development projects for approval under Gas Plus.

“Apache’s diverse asset base comprises a mix of near-term investments with a pipeline of impactive projects that provide a foundation for solid long-term growth,” Farris said.

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.

-end-


*		Adjusted earnings and cash from operations before changes in operating assets and liabilities are non-GAAP measures. Please see reconciliations below. Supplemental and non-GAAP financial information is available at www.apachecorp.com/financialdata.

NOTE: Apache will conduct a conference call to discuss its third-quarter results at 1 p.m. Central time on Thursday, Oct. 29. The call will be webcast from Apache’s Web site, http://www.apachecorp.com. The webcast replay and podcast will be archived on Apache’s Web site. The conference call will be available for playback by telephone for one week beginning at approximately 3

p.m. on Oct. 29. To access the telephone playback, dial (719) 457-0820 and provide Apache’s confirmation code, 9353473.

This news release contains certain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 including, without limitation, expectations, beliefs, plans and objectives regarding production and exploration activities. Any matters that are not historical facts are forward-looking and, accordingly, involve estimates, assumptions, risks and uncertainties, including, without limitation, risks, uncertainties and other factors discussed in our most recently filed Annual Report on Form 10-K, on our Web site and in our other public filings and press releases. There is no assurance that Apache’s expectations will be realized, and actual results may differ materially from those expressed in the forward-looking statements. We assume no duty to update these statements as of any future date.

APACHE CORPORATION
FINANCIAL INFORMATION
(In thousands, except per share data)


	For the Quarter					For the Nine Months
	Ended September 30,					Ended September 30,
	2009		2008			2009			2008

REVENUES AND OTHER:
Oil and gas production revenues	$	2,325,705	$	3,368,882		$	6,003,663		$	10,450,949
Other		6,726		(3,998	)		55,971			1,867

		2,332,431		3,364,884			6,059,634			10,452,816


COSTS AND EXPENSES:
Depreciation, depletion and amortization
Recurring		625,898		600,887			1,779,874			1,849,044
Additional		—		—			2,818,161			—
Asset retirement obligation accretion		26,053		24,970			79,274			77,146
Lease operating expenses		445,535		488,166			1,248,297			1,389,542
Gathering and transportation		36,232		42,375			103,050			123,118
Taxes other than income		183,931		304,280			387,211			845,406
General and administrative		82,492		57,561			258,443			218,856
Financing costs, net		61,684		33,291			181,426			116,594

		1,461,825		1,551,530			6,855,736			4,619,706


INCOME (LOSS) BEFORE INCOME TAXES		870,606		1,813,354			(796,102	)		5,833,110
Current income tax provision		262,430		305,735			483,171			1,495,641
Deferred income tax provision (benefit)		166,160		316,794			(409,069	)		679,902


NET INCOME (LOSS)		442,016		1,190,825			(870,204	)		3,657,567
Preferred stock dividends		1,420		1,420			4,260			4,260


INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK	$	440,596	$	1,189,405		$	(874,464	)	$	3,653,307


NET INCOME (LOSS) PER COMMON SHARE:
Basic	$	1.31	$	3.55		$	(2.61	)	$	10.93

Diluted	$	1.30	$	3.52		$	(2.61	)	$	10.84


WEIGHTED AVERAGE COMMON SHARES OUTSTANDING		336,159		334,825			335,637			334,145

APACHE CORPORATION
FINANCIAL INFORMATION
(In thousands, except per share data)


	For the Quarter				For the Nine Months
	Ended September 30,				Ended September 30,
	2009		2008		2009			2008
FINANCIAL DATA:
Revenues and other	$	2,332,431	$	3,364,884	$	6,059,634		$	10,452,816

Income (Loss) Attributable to Common Stock	$	440,596	$	1,189,405	$	(874,464	)	$	3,653,307

Basic Net Income (Loss) Per Common Share	$	1.31	$	3.55	$	(2.61	)	$	10.93

Diluted Net Income (Loss) Per Common Share	$	1.30	$	3.52	$	(2.61	)	$	10.84

Weighted Average Common Shares Outstanding		336,159		334,825		335,637			334,145

Diluted Shares Outstanding		337,872		337,894		335,637			337,151


	September 30,		December 31,
	2009		2008

BALANCE SHEET DATA:
Cash and Cash Equivalents	$	1,357,364	$	1,181,450
Short-term Investments		—		791,999
Other Current Assets		2,662,338		2,477,525
Property and Equipment, net		22,545,531		23,958,517
Restricted Cash		—		13,880
Goodwill		189,252		189,252
Other Assets		471,011		573,862

Total Assets	$	27,225,496	$	29,186,485


Current Liabilities	$	1,986,949	$	2,520,435
Long-Term Debt		5,010,030		4,808,975
Deferred Credits and Other Noncurrent Liabilities		4,873,195		5,348,354
Shareholders’ Equity		15,355,322		16,508,721

Total Liabilities and Shareholders’ Equity	$	27,225,496	$	29,186,485


Common shares outstanding at end of period		336,174		334,710


	For the Quarter				For the Nine Months
	Ended September 30,				Ended September 30,
	2009		2008		2009		2008
COSTS INCURRED ⁽¹⁾:
North America exploration and development	$	415,314	$	960,624	$	1,297,127	$	2,505,259
International exploration and development		394,188		641,028		1,387,199		1,932,257

	$	809,502	$	1,601,652	$	2,684,326	$	4,437,516


Oil and gas property acquisitions	$	15,123	$	4,863	$	263,628	$	155,658


⁽¹⁾ Includes noncash asset retirement costs and capitalized interest as follows:
Capitalized interest	$	14,344	$	18,674	$	45,325	$	53,730
Asset retirement costs	$	127,760	$	178,866	$	221,463	$	350,372

APACHE CORPORATION
FINANCIAL INFORMATION


	For the Quarter				For the Nine Months
	Ended September 30,				Ended September 30,
	2009		2008		2009		2008

PRODUCTION AND PRICING DATA:
OIL VOLUME — Barrels per day
Gulf Coast		51,440		41,888		50,778		54,908
Central		36,773		38,396		37,057		38,714

United States		88,213		80,284		87,835		93,622
Canada		14,595		16,655		15,586		17,247

North America		102,808		96,939		103,421		110,869

Egypt		93,550		64,803		90,848		64,082
Australia		10,849		7,083		9,732		8,286
North Sea		67,288		60,856		62,515		58,740
Argentina		11,026		12,729		11,799		12,342

International		182,713		145,471		174,894		143,450

Total		285,521		242,410		278,315		254,319


AVERAGE OIL PRICE PER BARREL
Gulf Coast	$	66.70	$	124.91	$	55.07	$	115.40
Central		60.59		106.06		49.22		101.11
United States ⁽¹⁾		64.57		93.69		54.89		91.48
Canada		63.79		111.81		51.95		108.10
North America ⁽¹⁾		64.46		96.80		54.45		94.07
Egypt		65.64		105.60		56.67		110.01
Australia		73.70		99.66		58.74		111.86
North Sea		65.76		113.56		56.68		110.08
Argentina		48.53		50.95		47.29		48.76
International		65.13		103.86		56.15		104.88
Total⁽¹⁾		64.89		101.04		55.52		100.17

NATURAL GAS VOLUME — Mcf per day
Gulf Coast		401,094		326,028		359,787		410,388
Central		297,968		309,863		298,720		302,141

United States		699,062		635,891		658,507		712,529
Canada		371,516		349,000		367,562		355,834

North America		1,070,578		984,891		1,026,069		1,068,363

Egypt		372,312		287,231		355,824		254,786
Australia		225,349		54,726		176,457		124,888
North Sea		2,983		2,697		2,771		2,604
Argentina		183,504		217,091		189,303		193,257

International		784,148		561,745		724,355		575,535

Total		1,854,726		1,546,636		1,750,424		1,643,898


AVERAGE NATURAL GAS PRICE PER MCF
Gulf Coast	$	3.59	$	11.19	$	4.03	$	10.39
Central		3.71		9.53		3.60		9.39
United States ⁽¹⁾		3.99		9.96		4.13		9.64
Canada ⁽¹⁾		3.61		8.70		4.04		8.63
North America ⁽¹⁾		3.86		9.51		4.10		9.30
Egypt		3.86		5.62		3.78		5.68
Australia		2.04		2.36		1.85		2.18
North Sea		14.89		27.17		11.66		21.88
Argentina		1.89		1.41		1.92		1.53
International		2.92		3.78		2.85		3.60
Total ⁽¹⁾		3.46		7.43		3.58		7.30
NGL VOLUME — Barrels per day
Gulf Coast		5,045		3,721		4,096		5,035
Central		1,974		1,729		1,716		1,601

United States		7,019		5,450		5,812		6,636
Canada		2,166		2,034		2,110		2,046

North America		9,185		7,484		7,922		8,682
Argentina		3,291		3,005		3,174		2,877

Total		12,476		10,489		11,096		11,559


AVERAGE NGL PRICE PER BARREL
Gulf Coast	$	33.95	$	75.01	$	29.49	$	65.21
Central		31.27		68.10		27.39		62.22
United States		33.20		72.82		28.87		64.49
Canada		24.22		63.77		23.03		58.62
North America		31.08		70.36		27.32		63.11
Argentina		15.44		36.63		16.13		38.81
Total		26.96		60.70		24.12		57.06


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

APACHE CORPORATION
FINANCIAL INFORMATION
(In thousands, except per share data)

NON-GAAP FINANCIAL MEASURES:

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 Nine Months
	Ended September 30,					Ended September 30,
	2009		2008			2009			2008

Income (Loss) Attributable to Common Stock (GAAP)	$	440,596	$	1,189,405		$	(874,464	)	$	3,653,307

Adjustments:
Foreign currency fluctuation impact on deferred tax expense		93,089		(113,169	)		116,172			(125,248	)
Additional depletion, net of tax		—		—			1,981,398			—

Adjusted Earnings (Non-GAAP)	$	533,685	$	1,076,236		$	1,223,106		$	3,528,059


Adjusted Earnings Per Share (Non-GAAP)
Basic	$	1.59	$	3.21		$	3.64		$	10.56

Diluted	$	1.58	$	3.19		$	3.62		$	10.46


Average Number of Common Shares
Basic		336,159		334,825			335,637			334,145

Diluted		337,872		337,894			337,417			337,151

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 Nine Months
	Ended September 30,						Ended September 30,
	2009			2008			2009		2008
Net cash provided by operating activities	$	1,312,742		$	2,290,655		$	2,679,471	$	6,028,568
Changes in operating assets and liabilities		(16,822	)		(167,074	)		859,092		259,446

Cash from operations before changes in operating assets and liabilities	$	1,295,920		$	2,123,581		$	3,538,563	$	6,288,014