-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VXRFNxdSkuosSYwylkGGw1cFrruGIdlzSc7+K+d7Vt+qalvUxEN0u2BHWjuWRTpX GrjJAYAsMi8DIB0/8EtV3Q== 0000950129-00-000681.txt : 20000217 0000950129-00-000681.hdr.sgml : 20000217 ACCESSION NUMBER: 0000950129-00-000681 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000203 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20000216 FILER: COMPANY DATA: COMPANY CONFORMED NAME: APACHE CORP CENTRAL INDEX KEY: 0000006769 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 410747868 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-04300 FILM NUMBER: 547317 BUSINESS ADDRESS: STREET 1: 2000 POST OAK BLVD STREET 2: ONE POST OAK CENTER STE 100 CITY: HOUSTON STATE: TX ZIP: 77056-4400 BUSINESS PHONE: 7132966000 MAIL ADDRESS: STREET 1: 2000 POST OAK BLVD STREET 2: STE 100 CITY: HOUSTON STATE: TX ZIP: 77056-4400 FORMER COMPANY: FORMER CONFORMED NAME: APACHE OIL CORP DATE OF NAME CHANGE: 19660830 8-K 1 APACHE CORPORATION - 02/03/2000 1 ================================================================================ 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 3, 2000 APACHE CORPORATION (Exact name of registrant as specified in Charter) DELAWARE 1-4300 41-0747868 (State or Other Jurisdiction (Commission (I.R.S. Employer of Incorporation) File Number) Identification Number)
2000 POST OAK BOULEVARD SUITE 100 HOUSTON, TEXAS 77056-4400 (Address of Principal Executive Offices) Registrant's telephone number, including area code: (713) 296-6000 ================================================================================ 2 ITEM 5. OTHER EVENTS On February 3, 2000, Apache Corporation announced earnings for the fourth quarter and year 1999. Apache issued a press release, dated February 3, 2000, which is listed under Item 7 as Exhibit 99.1 and incorporated herein by reference. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (c) EXHIBITS. EXHIBIT NO. DESCRIPTION 99.1* Press Release, dated February 3, 2000, "Apache Reports Record Earnings of $1.73 per Share in 1999". - ---------- * filed herewith 1 3 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 thereunto duly authorized. APACHE CORPORATION Date: February 16, 2000 /s/ Z. S. Kobiashvili ---------------------------------- Z. S. Kobiashvili Vice President and General Counsel 2 4 INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION - ----------- ------------ 99.1* Press Release, dated February 3, 2000, "Apache Reports Record Earnings of $1.73 per Share in 1999".
- ---------- * filed herewith EX-99.1 2 PRESS RELEASE DATED FEBRUARY 3, 2000 1 EXHIBIT 99.1 CONTACTS: (MEDIA): TONY LENTINI (713/296-6227) BILL MINTZ (713/296-7276) (INVESTOR): ROBERT DYE (713/296-6662) (WEB SITE): www.apachecorp.com FOR RELEASE AT 7:30 A.M. CENTRAL TIME APACHE REPORTS RECORD EARNINGS OF $1.73 PER SHARE IN 1999 41 PERCENT HIGHER PRODUCTION, STRONG PRICES FUEL FOURTH-QUARTER EARNINGS OF 81 CENTS PER SHARE Houston (Feb. 3, 2000) - Apache Corporation (NYSE: APA) today reported that higher oil and natural gas production and strong prices during 1999 contributed to record net income of $1.73 per share, or $186.4 million, compared with a net loss of $1.34 per share, or $131.4 million, in the prior year. Cash from operations surged 74 percent, rising to $727.6 million, or $6.74 per share, compared to $419.2 million, or $4.28 per share, in 1998. Revenues increased 49 percent to $1.3 billion in 1999, from $875.7 million a year earlier. In the fourth quarter of 1999, net income was a record 81 cents per share, or $92.5 million, compared to a net loss of $1.64 per share, or $160.6 million, in the prior-year period. The fourth-quarter 1998 results included an after-tax, non-cash charge of $158.1 million that reflected the impact of lower oil and gas prices on the book value of Apache's oil and gas reserves in the United States. Fourth-quarter cash from operations nearly tripled, climbing to $266.6 million from $92.7 million in the comparable 1998 period. Revenues increased 125 percent to $445.8 million, from $198 million in 1998. -more- 2 APACHE FOURTH QUARTER EARNINGS - ADD1 In the fourth quarter, oil production rose 60 percent to 108,600 barrels of oil per day and gas production increased 27 percent to 731 million cubic feet (MMcf) per day. Natural gas liquids (NGL) production in the fourth quarter increased 44 percent to 5,300 barrels per day. Apache received $22.99 per barrel of oil in the fourth quarter, up from $10.88 in the prior year period, and $2.42 per thousand cubic feet (Mcf) of gas, up from $1.84 in the fourth quarter of 1998. NGL prices rose 47 percent to $11.16 per barrel. Apache achieved several operational and financial milestones in 1999. Production rose for the 22nd consecutive year, with oil volumes increasing 25 percent to an average of 91,000 barrels per day. Natural gas production averaged 656 MMcf per day, an increase of 11 percent. NGL production rose 37 percent to 3,900 barrels per day. Reserves reached a new high for the 12th consecutive year, up 32 percent to 807 million barrels of oil equivalent. Apache added 310 million barrels of oil equivalent through acquisitions, drilling and revisions at a worldwide finding cost of $5.80 per barrel. Apache replaced 416 percent of its production in 1999. Proved oil reserves increased 65 percent to 415 million barrels and gas reserves increased 8 percent to 2.4 trillion cubic feet. The company's estimated reserve life increased to 10.8 years from 9.6 years at the end of 1998. Although Apache spent $1.8 billion on acquisitions and exploration and development activities, its debt as a percentage of total capitalization fell to 41.4 percent at the end of 1999, from 43 percent at the end of 1998. "Apache's goal of building a company that can grow over full-cycle economics is paying off," said Raymond Plank, chairman and chief executive officer. "With oil prices at 10-year highs, we are reaping the benefits of our strategy of growing through acquisitions in North America and through exploration drilling in parts of Canada and our international core areas." -more- 3 APACHE FOURTH QUARTER EARNINGS - ADD 2 "We are pleased with our progress in 1999," said G. Steven Farris, president and chief operating officer, "and, with a full-year benefit of the acquisitions we made last year, plus a very active exploration program planned for Canada, Egypt, Australia and Poland, we are off to a fast start in 2000." Apache Corporation is a large oil and gas independent with operations in North America, Egypt, Western Australia, Poland and People's Republic of China. Its common shares are traded on the New York and Chicago stock exchanges. -end- 4 APACHE CORPORATION FINANCIAL INFORMATION (In thousands, except per share data)
FOR THE QUARTER FOR THE YEAR ENDED DECEMBER 31, ENDED DECEMBER 31, ----------------------------- ----------------------------- 1999 1998 1999 1998 ------------ ------------ ------------ ------------ FINANCIAL DATA: Revenues $ 445,763 $ 197,959 $ 1,300,505 $ 875,715 ============ ============ ============ ============ Income (Loss) Attributable to Common Stock $ 92,531 $ (160,600) $ 186,406 $ (131,391) ============ ============ ============ ============ Basic Net Income (Loss) Per Common Share $ .81 $ (1.64) $ 1.73 $ (1.34) ============ ============ ============ ============ Diluted Net Income (Loss) Per Common Share $ .80 $ (1.64) $ 1.72 $ (1.34) ============ ============ ============ ============ Weighted Average Common Shares 114,055 97,765 107,936 98,066 ============ ============ ============ ============ PRODUCTION AND PRICING DATA: NATURAL GAS VOLUME - MCF PER DAY United States 504,276 397,969 461,444 432,059 Canada 98,831 120,021 99,791 105,871 Australia 89,381 55,477 76,220 50,624 Egypt 38,943 3,242 15,916 1,554 Ivory Coast -- -- 2,749 -- ------------ ------------ ------------ ------------ Total 731,431 576,709 656,120 590,108 ============ ============ ============ ============ AVERAGE NATURAL GAS PRICE PER MCF United States $ 2.57 $ 1.99 $ 2.31 $ 2.11 Canada 2.02 1.53 1.73 1.36 Australia 1.52 1.48 1.51 1.51 Egypt 3.67 2.03 3.45 1.91 Ivory Coast -- -- 1.72 -- Total 2.42 1.84 2.16 1.92 OIL VOLUME - BARRELS PER DAY United States 54,294 30,319 45,556 34,067 Canada 5,851 2,160 3,053 2,090 Australia 12,760 10,261 10,624 8,838 Egypt 35,717 25,271 31,751 27,911 Ivory Coast -- -- 37 -- ------------ ------------ ------------ ------------ Total 108,622 68,011 91,021 72,906 ============ ============ ============ ============ AVERAGE OIL PRICE PER BARREL United States $ 21.77 $ 10.87 $ 17.94 $ 12.63 Canada 24.03 10.94 19.35 12.55 Australia 24.60 11.42 19.70 13.07 Egypt 24.10 10.66 18.63 12.57 Ivory Coast -- -- 15.68 -- Total 22.99 10.88 18.43 12.66 NGL VOLUME - BARRELS PER DAY United States 4,558 3,025 3,308 2,267 Canada 704 625 630 616 ------------ ------------ ------------ ------------ Total 5,262 3,650 3,938 2,883 ============ ============ ============ ============ NGL PRICE PER BARREL United States $ 10.98 $ 7.99 $ 9.37 $ 8.38 Canada 12.31 5.73 9.64 6.32 Total 11.16 7.60 9.42 7.94
5 APACHE CORPORATION FINANCIAL INFORMATION (In thousands, except per share data)
FOR THE QUARTER FOR THE YEAR ENDED DECEMBER 31, ENDED DECEMBER 31, ------------------------------ ------------------------------ 1999 1998 1999 1998 ------------ ------------ ------------ ------------ REVENUES: Oil and gas production revenues $ 398,324 $ 168,432 $ 1,142,336 $ 759,038 Gathering, processing and marketing revenues 50,106 28,523 155,562 117,395 Other revenues (2,667) 1,004 2,607 (718) ------------ ------------ ------------ ------------ Total revenues 445,763 197,959 1,300,505 875,715 ------------ ------------ ------------ ------------ OPERATING EXPENSES: Depreciation, depletion and amortization: Recurring 129,834 92,203 442,844 382,807 Additional -- 243,178 -- 243,178 Lease operating costs 54,440 46,390 191,161 182,912 Severance and other taxes 10,350 6,653 32,400 28,642 Gathering, processing and marketing costs 49,741 27,881 153,367 114,471 Administrative, selling and other 16,209 6,705 53,894 40,731 ------------ ------------ ------------ ------------ Total operating expenses 260,574 423,010 873,666 992,741 ------------ ------------ ------------ ------------ OPERATING INCOME 185,189 (225,051) 426,839 (117,026) FINANCING COSTS: Interest expense 35,400 29,205 132,986 119,703 Amortization of deferred loan costs 1,538 1,081 4,854 4,496 Capitalized interest (13,568) (13,008) (53,231) (49,279) Interest income (947) (823) (2,343) (4,383) ------------ ------------ ------------ ------------ Net financing costs 22,423 16,455 82,266 70,537 ------------ ------------ ------------ ------------ INCOME (LOSS) BEFORE INCOME TAXES 162,766 (241,506) 344,573 (187,563) Provision (benefit) for income taxes 65,289 (82,326) 143,718 (58,176) ------------ ------------ ------------ ------------ NET INCOME (LOSS) 97,477 (159,180) 200,855 (129,387) Preferred stock dividends 4,946 1,420 14,449 2,004 ------------ ------------ ------------ ------------ INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK $ 92,531 $ (160,600) $ 186,406 $ (131,391) ============ ============ ============ ============ BASIC NET INCOME (LOSS) PER COMMON SHARE $ .81 $ (1.64) $ 1.73 $ (1.34) ============ ============ ============ ============ WEIGHTED AVERAGE COMMON SHARES 114,055 97,765 107,936 98,066 ============ ============ ============ ============ CASH FROM OPERATIONS: Net income (loss) $ 97,477 $ (159,180) $ 200,855 $ (129,387) Depreciation, depletion and amortization 129,834 335,381 442,844 625,985 Amortization of deferred loan costs 1,538 1,081 4,854 4,496 Deferred income taxes 35,582 (84,627) 77,494 (81,856) Other 2,156 -- 1,533 -- ------------ ------------ ------------ ------------ $ 266,587 $ 92,655 $ 727,580 $ 419,238 ============ ============ ============ ============
6 APACHE CORPORATION FINANCIAL INFORMATION
FOR THE QUARTER FOR THE YEAR ENDED DECEMBER 31, ENDED DECEMBER 31, ------------------------------ ------------------------------ 1999 1998 1999 1998 ------------ ------------ ------------ ------------ CAPITALIZED COSTS INCURRED (IN THOUSANDS): North America exploration and development $ 111,666 $ 64,013 $ 263,167 $ 292,507 International exploration and development 45,515 73,182 146,514 248,913 Acquisitions 497,445 40,156 1,391,206 58,402 Capitalized interest 13,568 13,008 53,231 49,279 Property sales (5,489) 1,042 (155,226) (141,449)
DECEMBER 31, DECEMBER 31, 1999 1998 ------------ ------------ BALANCE SHEET DATA (IN THOUSANDS): Total debt $ 1,885,808 $ 1,358,758 Shareholders' equity $ 2,669,425 $ 1,801,833 Common shares outstanding at end of period 113,996 97,769
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