8-K 1 h09868e8vk.txt APACHE CORPORATION - DATED OCTOBER 23,2003 ================================================================================ 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): October 23, 2003 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 ================================================================================ ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (c) EXHIBITS. EXHIBIT NO. DESCRIPTION ----------- ----------- 99.1 Press Release dated October 23, 2003, "Apache Third Quarter Earnings of $1.69 per Share Fueled by Record Oil and Gas Production, Strong Prices" ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On October 23, 2003, Apache issued a press release announcing results for the three and nine month periods ended September 30, 2003. The press release is listed and furnished under Item 7 as Exhibit 99.1 and incorporated herein by reference. The press release discusses Apache's cash from operations or "cash flow." Cash from operations represents net cash provided by operating activities before changes in operating assets and liabilities. Cash from operations is presented because management believes it is a useful adjunct to net cash provided by operating activities under accounting principles generally accepted in the United States (GAAP). Cash from operations is widely accepted as a financial indicator of an oil and gas company's ability to generate cash which is used to internally fund exploration and development activities and to service debt. Cash from operations 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, as an indicator of cash flows, or as a measure of liquidity. The following table reconciles net cash provided by operating activities to cash from operations.
FOR THE THREE MONTHS FOR THE NINE MONTHS ENDED SEPTEMBER 30, ENDED SEPTEMBER 30, ---------------------------- ---------------------------- 2003 2002 2003 2002 ----------- ----------- ----------- ----------- (In thousands) Net cash provided by operating activities $ 854,944 $ 385,184 $ 2,079,109 $ 1,009,269 Changes in operating assets and liabilities (124,915) (17,460) (66,615) 70,793 ----------- ----------- ----------- ----------- Cash from operations $ 730,029 $ 402,644 $ 2,012,494 $ 1,080,062 ----------- ----------- ----------- -----------
The press release discusses Apache's earnings per share before non-cash adjustments, a non-GAAP financial measure. Earnings per share before non-cash adjustments, a non-GAAP financial measure, excludes the impact of currency fluctuations (FX) on deferred taxes that management deems not representative of the Company's financial performance. Management believes this measure provides a clearer understanding of the Company's financial results and enables investors to better compare its results with those of other companies.
FOR THE PERIODS ENDED SEPTEMBER 30, 2003 ---------------------------------------- THREE MONTHS NINE MONTHS ------------ ----------- Earnings per share $1.69 $5.27 Non-cash impact of FX on deferred taxes 0.12 0.48 ----- ----- Earnings per share including non-cash impact on deferred taxes $1.81 $5.75 ----- -----
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: October 23, 2003 /s/ Roger B. Plank ---------------------------------------- Roger B. Plank Executive Vice President and Chief Financial Officer INDEX TO EXHIBITS EXHIBIT NO. DESCRIPTION ----------- ----------- 99.1 Press Release dated October 23, 2003, "Apache Third Quarter Earnings of $1.69 per Share Fueled by Record Oil and Gas Production, Strong Prices"