8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 18, 2010

APACHE CORPORATION

(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction
of incorporation) 1-4300
(Commission
File Number) 41-0747868
(I.R.S. Employer
Identification No.)

2000 Post Oak Boulevard
Suite 100
Houston, Texas 77056-4400
(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (713) 296-6000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

The information in this Current Report on Form 8-K, including Exhibit 99.1 furnished herewith, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of Section 18, and shall not be incorporated by reference in any filing under the Securities Act or the Exchange Act, except as set forth by specific reference in such filing.

Item 2.02. Results of Operations and Financial Condition.

On February 18, 2010, Apache Corporation issued a press release announcing financial and operating results for the fiscal quarter and year ended December 31, 2009. The full text of the press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Press Release dated February 18, 2010, “Apache Reports Record 2009 Production of 583,000 boe Per Day, Up 9%”

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	APACHE CORPORATION
Date: February 18, 2010	/s/ Roger B. Plank
	Roger B. Plank, President
	(Principal Financial Officer)

INDEX TO EXHIBITS

Exhibit No.	Description
99.1	Press Release dated February 18, 2010, “Apache Reports Record 2009 Production of 583,000 boe Per Day, Up 9%”

EX-99.1

EXHIBIT 99.1

CONTACTS:
Media:	Bill Mintz Robert Dye	(713) 296-7276 (713) 296-6662
Investors:	Tom Chambers	(713) 296-6685
(Web site):	www.apachecorp.com

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

APACHE REPORTS RECORD 2009 PRODUCTION OF 583,000 BOE PER DAY, UP 9%

Adjusted earnings total $1.9 billion or $5.59 per share

     Houston, Feb. 18, 2010 — Apache Corporation (NYSE, Nasdaq: APA) today reported that international growth fueled record 2009 production of 583,000 barrels of oil equivalent per day, up 9 percent from 2008.

     “Although we reduced capital expenditures by about 40 percent from 2008 levels to achieve our goal of living within our cash flow, Apache increased production by 9 percent and ended 2009 with $2 billion in cash,” said G. Steven Farris, Apache’s chairman and chief executive officer. “In 2010, we anticipate continued growth of 5 to 10 percent as we ramp up drilling activity across our portfolio and commence production from earlier discoveries.”

     “We are off to a fast start in 2010, with eight consecutive successful wells in the Gulf of Mexico and first oil production from our Van Gogh Field discovery in Western Australia,” Farris said. “Our portfolio is balanced in terms of geology, geography and commodity mix, and each of our regions has critical mass of highly prospective acreage, much of which is held by production.

     “Apache’s balanced portfolio drove cash flow in 2009 as oil prices recovered,” he said. “While oil and natural gas liquids comprised 50 percent of Apache’s output, they provided 72 percent of revenues. We also shaved 20 percent off of our per-equivalent-barrel lifting costs.”

     Apache reported fourth-quarter adjusted earnings,* which exclude certain items that impact the comparability of operating results, more than doubled to $664 million or $1.96 per diluted common share from $276 million or 82 cents per share in the prior-year period. For the year ending Dec. 31, Apache reported adjusted earnings of $1.9 billion or $5.59 per share compared with $3.8 billion or $11.22 per share in 2008.

     Using generally accepted accounting principles (GAAP), Apache reported fourth-quarter net income of $583 million or $1.72 per share compared with a net loss of $2.9 billion, or $8.80 per share in the prior-year period. The year-earlier results included a $3.6-billion, non-cash, after-tax reduction in the carrying value of oil and gas properties stemming from significantly lower commodity prices. For the year ending Dec. 31, Apache reported a net loss of $292 million or 87 cents per share, which included a $1.98-billion, non-cash, after-tax reduction which was the result of lower commodity prices at the beginning of 2009. Apache reported net income of $706 million or $2.09 per share in 2008.

     “We plan to continue to allocate capital based on our projected cash flow,” Farris said. “However, we have ample liquidity from our cash balances and committed credit facilities to pursue incremental opportunities, either through additional exploration or value-adding acquisitions.”

     Drivers for 2010 growth include:

• Production from Van Gogh as well as from Pyrenees, a second oil development in Australia expected to commence production in the first half;

• Increased activity in the Granite Wash play in Western Oklahoma and the Texas Panhandle;

• Year-round activity at the Horn River Basin shale play in British Columbia, and

• Continued exploration and development in Egypt, including new processing capacity that will increase oil production from earlier discoveries in the Faghur Basin.

     Cash from operations before changes in operating assets and liabilities* totaled $5 billion in 2009, down from $7.4 billion in 2008. Fourth-quarter cash from operations totaled $1.4 billion, up from $1.1 billion in the prior-year period.

     “Cash flow came in ahead of our initial projections, which enabled Apache to invest $4.1 billion in total capital, including facilities capital and $300 million in tactical acquisitions, and end the year with slightly more cash on the balance sheet,” Farris said. “Right now, we plan to spend in the range of $6 billion to $6.5 billion on exploration and development, to be reviewed quarterly.”

     Apache ended 2009 with proved reserves of 2.37 billion barrels of oil equivalent. The company added 216 million barrels of oil equivalent (MMboe) through discoveries, extensions and acquisitions but excluding price-related downward revisions. Apache’s 2009 production was 213 MMboe. Apache spent $3.455 billion of exploration, development and acquisitions capital, excluding asset retirement obligations and capitalized interest.*

     In 2009, Apache’s international production increased 21 percent. Net production in Egypt increased 38 percent as a result of additional gas and condensate processing capacity at the Qasr field and from the Phiops oil discovery in the Faghur Basin. In Australia, production increased 40 percent as output was restored at Varanus Island after the June 2008 explosion; production currently exceeds pre-incident levels. The North Sea Region recorded its second consecutive year of production growth.

     Apache’s North American production declined slightly in 2009 as a result of curtailed drilling activity.

     Fourth-quarter production increased 14 percent from the prior-year period to 589,799 boe per day.

     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. From time to

time, Apache posts announcements, updates and investor information, in addition to copies of all press releases, on its Web site, www.apachecorp.com.

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

-end-

     NOTE: Apache will conduct a conference call to discuss its fourth-quarter and full-year 2009 results at 1 p.m. Central Time on Thursday, Feb. 18. The call will be webcast from Apache’s Web site, www.apachecorp.com. The webcast replay and podcast will be archived on Apache’s Web site. The conference call will be available for delayed playback by telephone for one week beginning at approximately 3 p.m. on Feb. 18. To access the telephone playback, dial (719) 457-0820 and provide Apache’s confirmation code, 4305154.

     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 Year
	Ended December 31,						Ended December 31,
	2009			2008			2009			2008
REVENUES AND OTHER:
Oil and gas production revenues	$	2,570,264		$	1,876,890		$	8,573,927		$	12,327,839
Other		(15,072	)		60,044			40,899			61,911
		2,555,192			1,936,934			8,614,826			12,389,750
COSTS AND EXPENSES:
Depreciation, depletion and amortization
Recurring		615,189			667,393			2,395,063			2,516,437
Additional		—			5,333,821			2,818,161			5,333,821
Asset retirement obligation accretion		25,541			24,202			104,815			101,348
Lease operating expenses		413,843			520,083			1,662,140			1,909,625
Gathering and transportation		39,649			33,373			142,699			156,491
Taxes other than income		192,225			139,401			579,436			984,807
General and administrative		85,440			69,938			343,883			288,794
Financing costs, net		60,812			49,441			242,238			166,035
		1,432,699			6,837,652			8,288,435			11,457,358
INCOME (LOSS) BEFORE INCOME TAXES		1,122,493			(4,900,718	)		326,391			932,392
Current income tax provision (benefit)		358,728			(39,259	)		841,899			1,456,382
Deferred income tax provision (benefit)		177,959			(1,915,846	)		(231,110	)		(1,235,944	)
NET INCOME (LOSS)		585,806			(2,945,613	)		(284,398	)		711,954
Preferred stock dividends		3,034			1,420			7,294			5,680
INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK	$	582,772		$	(2,947,033	)	$	(291,692	)	$	706,274
NET INCOME (LOSS) PER COMMON SHARE:
Basic	$	1.73		$	(8.80	)	$	(0.87	)	$	2.11
Diluted	$	1.72		$	(8.80	)	$	(0.87	)	$	2.09
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING		336,489			334,967			335,852			334,351
DILUTED SHARES OUTSTANDING		338,605			334,967			335,852			337,191

APACHE CORPORATION
FINANCIAL INFORMATION
(In thousands)

	For the Quarter				For the Year
	Ended December 31,				Ended December 31,
	2009		2008		2009		2008
COSTS INCURRED: (1)
North America exploration and development	$	326,729	$	912,016	$	1,629,141	$	3,417,275
International exploration and development		481,873		663,119		1,869,072		2,595,376
Oil and gas property acquisitions		52,129		—		310,472		149,517
	$	860,731	$	1,575,135	$	3,808,685	$	6,162,168

(1) Includes noncash asset retirement costs and capitalized interest as follows:

Capitalized interest	$	15,228	$	19,823	$	60,553	$	73,553
Asset retirement costs	$	71,476	$	163,519	$	292,939	$	513,891

	December 31,		December 31,
	2009		2008
BALANCE SHEET DATA:
Cash and Cash Equivalents	$	2,048,117	$	1,181,450
Short-term Investments		—		791,999
Other Current Assets		2,537,732		2,477,525
Property and Equipment, net		22,900,615		23,958,517
Restricted Cash		—		13,880
Goodwill		189,252		189,252
Other Assets		510,027		573,862
Total Assets	$	28,185,743	$	29,186,485
Short-term Debt	$	117,326	$	112,598
Other Current Liabilities		2,275,232		2,407,837
Long-Term Debt		4,950,390		4,808,975
Deferred Credits and Other Noncurrent Liabilities		5,064,174		5,348,354
Shareholders’ Equity		15,778,621		16,508,721
Total Liabilities and Shareholders’ Equity	$	28,185,743	$	29,186,485
Common shares outstanding at end of period		336,437		334,710

APACHE CORPORATION
FINANCIAL INFORMATION

	For the Quarter				For the Year
	Ended December 31,				Ended December 31,
	2009		2008		2009		2008
PRODUCTION DATA:
OIL VOLUME — Barrels per day
Gulf Coast		54,665		39,928		51,757		51,142
Central		38,325		38,478		37,376		38,655
United States		92,990		78,406		89,133		89,797
Canada		13,998		16,877		15,186		17,154
North America		106,988		95,283		104,319		106,951
Egypt		95,970		74,705		92,139		66,753
Australia		9,918		8,140		9,779		8,249
North Sea		56,443		61,740		60,984		59,494
Argentina		10,632		12,610		11,505		12,409
International		172,963		157,195		174,407		146,905
Total		279,951		252,478		278,726		253,856
NATURAL GAS VOLUME — Mcf per day
Gulf Coast		386,679		267,730		366,565		374,528
Central		301,892		314,899		299,519		305,348
United States		688,571		582,629		666,084		679,876
Canada		334,526		343,489		359,235		352,731
North America		1,023,097		926,118		1,025,319		1,032,607
Egypt		382,780		290,292		362,618		263,711
Australia		204,860		117,387		183,617		123,003
North Sea		2,502		2,737		2,703		2,637
Argentina		170,474		202,782		184,557		195,651
International		760,616		613,198		733,495		585,002
Total		1,783,713		1,539,316		1,758,814		1,617,609
NGL VOLUME — Barrels per day
Gulf Coast		5,030		2,370		4,332		4,365
Central		2,066		1,682		1,804		1,621
United States		7,096		4,052		6,136		5,986
Canada		2,029		2,165		2,089		2,076
North America		9,125		6,217		8,225		8,062
Argentina		3,439		2,914		3,241		2,887
Total		12,564		9,131		11,466		10,949
BOE per day
Gulf Coast		124,141		86,919		117,183		117,930
Central		90,706		92,643		89,101		91,167
United States		214,847		179,562		206,284		209,097
Canada		71,782		76,290		77,147		78,018
North America		286,629		255,852		283,431		287,115
Egypt		159,766		123,087		152,575		110,704
Australia		44,061		27,705		40,382		28,750
North Sea		56,860		62,196		61,435		59,934
Argentina		42,483		49,322		45,505		47,904
International		303,170		262,310		299,897		247,292
Total		589,799		518,162		583,328		534,407

APACHE CORPORATION
FINANCIAL INFORMATION

	For the Quarter				For the Year
	Ended December 31,				Ended December 31,
	2009		2008		2009		2008
PRICING DATA:
AVERAGE OIL PRICE PER BARREL
Gulf Coast	$	74.39	$	53.96	$	60.22	$	103.35
Central		68.29		52.86		54.15		89.04
United States (1)		70.75		56.03		59.06		83.70
Canada		70.10		49.18		56.16		93.53
North America (1)		70.66		54.81		58.64		85.28
Egypt		74.46		43.74		61.34		91.37
Australia		80.97		30.89		64.42		91.78
North Sea		74.82		55.17		60.91		95.76
Argentina		56.41		51.47		49.42		49.46
International		73.84		48.19		60.58		89.63
Total (1)		72.63		50.69		59.85		87.80
AVERAGE NATURAL GAS PRICE PER MCF
Gulf Coast	$	4.46	$	6.95	$	4.14	$	9.77
Central		4.88		4.55		3.93		8.13
United States (1)		4.92		6.01		4.34		8.86
Canada (1)		4.60		5.84		4.17		7.94
North America (1)		4.81		5.95		4.28		8.55
Egypt		3.50		4.13		3.70		5.25
Australia		2.34		1.86		1.99		2.10
North Sea		18.07		10.02		13.15		18.78
Argentina		2.09		1.85		1.96		1.61
International		2.92		2.97		2.87		3.43
Total (1)		4.00		4.76		3.69		6.70
AVERAGE NGL PRICE PER BARREL
Gulf Coast	$	44.61	$	36.58	$	33.92	$	61.30
Central		39.45		20.70		30.87		51.39
United States		43.11		29.99		33.02		58.62
Canada		33.28		23.18		25.54		49.33
North America		40.92		27.62		31.12		56.23
Argentina		25.95		34.96		18.76		37.83
Total		36.82		29.96		27.63		51.38

⁽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 Year
	Ended December 31,					Ended December 31,
	2009		2008			2009			2008
Income (Loss) Attributable to Common Stock (GAAP)	$	582,772	$	(2,947,033	)	$	(291,692	)	$	706,274
Adjustments:
Foreign currency fluctuation impact on deferred tax expense		81,551		(272,206	)		197,724			(397,454	)
Additional depletion, net of tax		—		3,647,745			1,981,398			3,647,745
Out-of-period tax adjustments		—		(152,170	)		—			(173,795	)
Adjusted Earnings (Non-GAAP)	$	664,323	$	276,336		$	1,887,430		$	3,782,770
Adjusted Earnings Per Share (Non-GAAP)
Basic	$	1.97	$	0.82		$	5.62		$	11.31
Diluted	$	1.96	$	0.82		$	5.59		$	11.22
Average Number of Common Shares
Basic		336,489		334,967			335,852			334,351
Diluted		338,605		336,986			337,737			337,191

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

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

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

	For the Quarter					For the Year
	Ended December 31,					Ended December 31,
	2009			2008		2009		2008
Net cash provided by operating activities	$	1,544,172		$	1,036,776	$	4,223,643	$	7,065,344
Changes in operating assets and liabilities		(97,593	)		52,230		761,499		311,676
Cash from operations before changes in operating assets and liabilities	$	1,446,579		$	1,089,006	$	4,985,142	$	7,377,020

APACHE CORPORATION
OIL & GAS RESERVE INFORMATION
For the Year Ended December 31, 2009

OIL (Mbbl)

	U.S.			Canada			Egypt			Australia			North Sea			Argentina			Total
Balance — Dec 31, 2008		476,689			144,443			114,406			76,535			187,915			24,193			1,024,181
Extensions and Discoveries		20,555			432			41,104			3,574			6,056			3,728			75,449
Purchases		9,969			—			—			—			—			—			9,969
Revisions		12,976			(4,246	)		(6,286	)		1,901			2			(202	)		4,145
Production		(32,534	)		(5,543	)		(33,631	)		(3,569	)		(22,259	)		(4,199	)		(101,735	)
Sales		—			—			—			—			—			—			—
Balance — Dec 31, 2009		487,655			135,086			115,593			78,441			171,714			23,520			1,012,009

NGL’s (Mbbl)

	U.S.			Canada			Egypt		Australia		North Sea		Argentina			Total
Balance — Dec 31, 2008		38,075			11,302			—		—		—		7,586			56,963
Extensions and Discoveries		(2,913	)		1,407			—		—		—		1,137			(369	)
Purchases		3,054			—			—		—		—		—			3,054
Revisions		5			(258	)		—		—		—		29			(224	)
Production		(2,239	)		(763	)		—		—		—		(1,183	)		(4,185	)
Sales		—			—			—		—		—		—			—
Balance — Dec 31, 2009		35,982			11,688			—		—		—		7,569			55,239

Oil & NGL’s

	U.S.			Canada			Egypt			Australia			North Sea			Argentina			Total
Balance — Dec 31, 2008		514,764			155,745			114,406			76,535			187,915			31,779			1,081,144
Extensions and Discoveries		17,642			1,839			41,104			3,574			6,056			4,865			75,080
Purchases		13,023			—			—			—			—			—			13,023
Revisions		12,981			(4,504	)		(6,286	)		1,901			2			(173	)		3,921
Production		(34,773	)		(6,306	)		(33,631	)		(3,569	)		(22,259	)		(5,382	)		(105,920	)
Sales		—			—			—			—			—			—			—
Balance — Dec 31, 2009		523,637			146,774			115,593			78,441			171,714			31,089			1,067,248

GAS (MMcf)

	U.S.			Canada			Egypt			Australia			North Sea			Argentina			Total
Balance — Dec 31, 2008		2,537,182			2,203,361			1,370,978			1,253,545			5,585			546,374			7,917,025
Extensions and Discoveries		150,668			340,278			2,142			174,883			252			50,714			718,937
Purchases		47,782			35			—			—			—			—			47,817
Revisions		(54,591	)		(107,205	)		(81,623	)		33			—			(2,395	)		(245,781	)
Production		(243,120	)		(131,121	)		(132,356	)		(67,020	)		(986	)		(67,364	)		(641,967	)
Sales		—			—			—			—			—			—			—
Balance — Dec 31, 2009		2,437,921			2,305,348			1,159,141			1,361,441			4,851			527,329			7,796,031

TOTAL BOE (Mboe)

	U.S.			Canada			Egypt			Australia			North Sea			Argentina			Total
Balance — Dec 31, 2008		937,628			522,972			342,902			285,459			188,846			122,841			2,400,648
Extensions and Discoveries		42,754			58,552			41,461			32,721			6,098			13,317			194,903
Purchases		20,987			6			—			—			—			—			20,993
Revisions		3,883			(22,373	)		(19,890	)		1,907			2			(572	)		(37,043	)
Production		(75,294	)		(28,160	)		(55,690	)		(14,739	)		(22,423	)		(16,609	)		(212,915	)
Sales		—			—			—			—			—			—			—
Balance — Dec 31, 2009		929,958			530,997			308,783			305,348			172,523			118,977			2,366,586
Net Change		(7,670	)		8,025			(34,119	)		19,889			(16,323	)		(3,864	)		(34,062	)
2009 BOE Percentage		39.3	%		22.4	%		13.1	%		12.9	%		7.3	%		5.0	%		100.0	%
2009 Production Percentage		35.4	%		13.2	%		26.2	%		6.9	%		10.5	%		7.8	%		100.0	%
Production (BOE)
Oil + NGL’s		46.2	%		22.4	%		60.4	%		24.2	%		99.3	%		32.4	%		49.7	%
Gas		53.8	%		77.6	%		39.6	%		75.8	%		0.7	%		67.6	%		50.3	%
		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

APACHE CORPORATION
OIL & GAS RESERVES AND COSTS
For the Year Ended December 31, 2009

Reserve Additions (Mboe)

	U.S.		Canada			Egypt			Australia		North Sea		Argentina			Chile		Total
Extensions and Discoveries		42,754		58,552			41,461			32,721		6,098		13,317			—		194,903
Revisions		3,883		(22,373	)		(19,890	)		1,907		2		(572	)		—		(37,043	)
Purchases		20,987		6			—			—		—		—			—		20,993
Total Adds		67,624		36,185			21,571			34,628		6,100		12,745			—		178,853

Capital Cost Information (in thousands)

	U.S.		Canada		Egypt		Australia		North Sea		Argentina		Chile		Total
Exploration & Development, excluding Capitalized Interest & Asset Retirement Cost (1)	$	928,415		412,059		675,748		602,734		375,204		139,804		10,757	$	3,144,721
Acquisitions		195,966		13,182		39,000		37,835		—		24,489		—		310,472
	$	1,124,381		425,241		714,748		640,569		375,204		164,293		10,757	$	3,455,193

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

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

	U.S.			Canada			Egypt			Australia			North Sea			Argentina			Chile		Total
Exploration & Development Costs	$	1,124,805			504,336			683,136			656,283			375,485			143,411			10,757	$	3,498,213
Less: Capitalized Interest		(14,666	)		(11,936	)		(7,388	)		(15,423	)		(281	)		(10,859	)		—		(60,553	)
Less: Asset Retirement Cost		(181,724	)		(80,341	)		—			(38,126	)		—			7,252			—		(292,939	)
Exploration, Development, excluding Capitalized Interest & Asset Retirement Cost	$	928,415			412,059			675,748			602,734			375,204			139,804			10,757	$	3,144,721