-----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, EB12hqcMuQ1Na+lP6itVWWtc5Hcw+NImH44Bi6u+ZXbeTMI+KfNlf/qlGyQERCsY aeR4hQ0udDuWzyot7LJ9/A== 0000950129-04-002264.txt : 20040422 0000950129-04-002264.hdr.sgml : 20040422 20040422094531 ACCESSION NUMBER: 0000950129-04-002264 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040422 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040422 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: 1934 Act SEC FILE NUMBER: 001-04300 FILM NUMBER: 04746963 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 h14663e8vk.txt APACHE CORPORATION - APRIL 22, 2004 ================================================================================ 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): April 22, 2004 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 April 22, 2004, "Apache Reports Record First Quarter Earnings of $1.06 Per Share"
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On April 22, 2004, Apache issued a press release announcing results for the fiscal quarter ended March 31, 2004. The press release is listed and furnished under Item 7 as Exhibit 99.1 and incorporated herein by reference. 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: April 22, 2004 /s/ Eric L. Harry -------------------------------------------- Eric L. Harry Vice President and Associate General Counsel INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION - ----------- ---------------------------------------------------------- 99.1 Press Release dated April 22, 2004, "Apache Reports Record First Quarter Earnings of $1.06 Per Share"
EX-99.1 3 h14663exv99w1.txt PRESS RELEASE EXHIBIT 99.1 CONTACTS: (MEDIA): TONY LENTINI (713/296-6227) BILL MINTZ (713/296-7276) DAVID HIGGINS (713/296-6690) (INVESTOR): ROBERT DYE (713/296-6662) (WEB SITE): WWW.APACHECORP.COM FOR RELEASE AT 7:45 A.M. CENTRAL TIME APACHE REPORTS RECORD FIRST-QUARTER EARNINGS OF $1.06 PER SHARE Houston, April 22, 2004 - Apache Corporation (NYSE, Nasdaq: APA) today reported record first-quarter 2004 earnings of $348 million, or $1.06 per diluted common share, up from the previous record established in the first quarter of 2003 of $338 million, or $1.05 per share, which included $27 million, or 8 cents per share, for the cumulative effect of a change in accounting principle. Apache's results benefited from a 23 percent increase in daily production over the prior-year period and strong commodity prices. Apache's per-share results have been adjusted to reflect the two-for-one common stock split distributed in January 2004. Cash from operations before changes in operating assets and liabilities totaled $737 million, up from $645 million in the year-earlier period. (This is a non-GAAP measure; see reconciliation below.) Apache's debt-to-capitalization ratio declined to 24.2 percent at the end of the quarter, from 26.3 percent at year-end 2003. "Higher production and strong commodity prices drove our record first-quarter financial results," said G. Steven Farris, president, chief executive officer and chief operating officer. Strong prices for oil and gas also are driving the acquisition market for producing properties continually higher, Farris said. "We remain committed to long-term profitable growth; although we are always looking for acquisitions which have the potential to bring added value, in the current environment, we intend to continue our active drilling program and to be patient. -more- Apache reports record first-quarter earnings - add one "During the first quarter, we completed 422 wells worldwide compared to just 156 a year ago. We were active in each of our core areas, and this activity should benefit our financial results in future quarters," Farris said. Apache's first-quarter production averaged 430,400 barrels of oil equivalent (boe) per day, up from 348,600 boe per day in the prior-year period. Liquid hydrocarbon production averaged 228,300 barrels per day, up 37 percent, while natural gas production averaged 1.2 billion cubic feet per day, up 11 percent. Apache received $30.44 per barrel of oil during the first quarter, down slightly from $30.67 in the prior-year period; $23.83 per barrel for natural gas liquids, compared with $24.42 per barrel; and $4.77 per thousand cubic feet (Mcf) of gas, down from $5.29 per Mcf. Apache Corporation is a large gas and oil independent with core operations in the United States, Canada, Egypt, the United Kingdom North Sea and Western Australia. -end- NOTE: Apache will webcast its conference call live at 1 p.m. Central Time from its Web site, www.apachecorp.com. The replay will be available on the Web site or by dialing (719) 457-0820 and using pass code 572225. The telephone replay will be available for one week beginning at approximately 5 p.m. on April 22. This news release contains certain "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995 including, without limitation, expectations, beliefs, plans and objectives regarding exploration and acquisition activities. Any matters that are not historical facts are forward-looking and, accordingly, involve estimates, assumptions and uncertainties. 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. APACHE CORPORATION FINANCIAL INFORMATION (In thousands, except per share data)
FOR THE QUARTER ENDED MARCH 31, ------------------------------ 2004 2003 ------------ ------------ REVENUES AND OTHER: Oil and gas production revenues $ 1,152,754 $ 975,162 Other (2,815) (8,553) ------------ ------------ Total revenues and other 1,149,939 966,609 ------------ ------------ OPERATING EXPENSES: Depreciation, depletion and amortization 286,228 214,349 Asset retirement obligation accretion 10,761 5,313 Lease operating costs 206,029 134,135 Gathering and transportation costs 19,634 11,861 Severance and other taxes 8,948 24,554 General and administrative 43,850 27,831 ------------ ------------ Total operating expenses 575,450 418,043 ------------ ------------ OPERATING INCOME 574,489 548,566 FINANCING COSTS: Interest expense 40,549 37,696 Amortization of deferred loan costs 567 531 Capitalized interest (13,650) (11,232) Interest income (320) (1,074) ------------ ------------ Net financing costs 27,146 25,921 ------------ ------------ Preferred interests of subsidiaries -- 3,362 ------------ ------------ INCOME BEFORE INCOME TAXES 547,343 519,283 Provision for income taxes 198,259 206,986 ------------ ------------ INCOME BEFORE CHANGE IN ACCOUNTING PRINCIPLE 349,084 312,297 Cumulative effect of change in accounting principle, net of tax -- 26,632 ------------ ------------ NET INCOME 349,084 338,929 Preferred stock dividends 1,420 1,420 ------------ ------------ INCOME ATTRIBUTABLE TO COMMON STOCK $ 347,664 $ 337,509 ============ ============ INCOME ATTRIBUTABLE TO COMMON STOCK BEFORE CHANGE IN ACCOUNTING PRINCIPLE $ 347,664 $ 310,877 ============ ============ BASIC NET INCOME PER COMMON SHARE Before change in accounting principle $ 1.07 $ 0.98 ============ ============ After change in accounting principle $ 1.07 $ 1.06 ============ ============ DILUTED NET INCOME PER COMMON SHARE Before change in accounting principle $ 1.06 $ 0.97 ============ ============ After change in accounting principle $ 1.06 $ 1.05 ============ ============ WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 325,003 318,509 ============ ============
APACHE CORPORATION FINANCIAL INFORMATION (In thousands)
FOR THE QUARTER ENDED MARCH 31, -------------------------- 2004 2003 ---------- ---------- CAPITALIZED COSTS INCURRED: North America exploration and development $ 350,523 $ 252,327 International exploration and development 164,074 89,949 ---------- ---------- $ 514,597 $ 342,276 ========== ========== Acquisitions: Oil and gas properties $ 1,329 $ 544,371 Gas gathering, transmission and processing facilities -- 5,484 ---------- ---------- Total Acquisitions $ 1,329 $ 549,855 ========== ========== Asset retirement obligation activity, net $ (2,136) $ 69,693 Capitalized interest $ 13,650 $ 11,232
MARCH 31, DECEMBER 31, 2004 2003 ------------ ------------ BALANCE SHEET DATA: Current Assets $ 987,850 $ 899,072 Property and Equipment, net 11,532,356 11,260,085 Goodwill 189,252 189,252 Other Assets 76,252 67,717 ------------ ------------ Total Assets $ 12,785,710 $ 12,416,126 ============ ============ Current Liabilities $ 914,561 $ 820,378 Long-Term Debt 2,191,917 2,326,966 Deferred Credits and Other Noncurrent Liabilities 2,806,793 2,735,984 Shareholders' Equity 6,872,439 6,532,798 ------------ ------------ Total Liabilities and Shareholders' Equity $ 12,785,710 $ 12,416,126 ============ ============ Common shares outstanding at end of period 325,229 324,497
NON-GAAP FINANCIAL MEASURES: 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 ENDED MARCH 31, ----------------------------- 2004 2003 ------------ ------------ Net cash provided by operating activities $ 652,332 $ 538,041 Changes in operating assets and liabilities 84,394 106,713 ------------ ------------ Cash from operations before changes in operating assets and liabilities $ 736,726 $ 644,754 ============ ============
APACHE CORPORATION FINANCIAL INFORMATION
FOR THE QUARTER ENDED MARCH 31, ----------------------------- 2004 2003 ------------ ------------ FINANCIAL DATA (In thousands, except per share data): Revenues and other $ 1,149,939 $ 966,609 ============ ============ Income Attributable to Common Stock $ 347,664 $ 337,509 ============ ============ Basic Net Income Per Common Share: Before change in accounting principle $ 1.07 $ 0.98 ============ ============ After change in accounting principle $ 1.07 $ 1.06 ============ ============ Diluted Net Income Per Common Share: Before change in accounting principle $ 1.06 $ 0.97 ============ ============ After change in accounting principle $ 1.06 $ 1.05 ============ ============ Weighted Average Common Shares Outstanding 325,003 318,509 ============ ============ Diluted Shares Outstanding 328,014 321,159 ============ ============ PRODUCTION AND PRICING DATA: NATURAL GAS VOLUME - Mcf PER DAY United States 644,462 552,783 Canada 314,064 309,205 Egypt 128,665 123,719 Australia 118,822 101,153 North Sea 1,602 -- China -- -- Argentina 5,160 6,788 ------------ ------------ Total 1,212,775 1,093,648 ============ ============ AVERAGE NATURAL GAS PRICE PER MCF United States $ 5.35 $ 6.22 Canada 5.09 5.35 Egypt 4.10 4.50 Australia 1.70 1.31 North Sea 4.34 -- China -- -- Argentina 0.47 0.42 Total 4.77 5.29 OIL VOLUME - BARRELS PER DAY United States 67,255 57,334 Canada 25,266 24,735 Egypt 49,097 45,710 Australia 23,658 30,439 North Sea 44,299 -- China 7,440 -- Argentina 552 597 ------------ ------------ Total 217,567 158,815 ============ ============ AVERAGE OIL PRICE PER BARREL United States $ 32.36 $ 28.97 Canada 33.00 32.09 Egypt 31.34 30.46 Australia 34.86 33.00 North Sea 22.72 -- China 30.12 -- Argentina 33.44 31.95 Total 30.44 30.67 NGL VOLUME - BARRELS PER DAY United States 8,128 6,083 Canada 2,598 1,406 ------------ ------------ Total 10,726 7,489 ============ ============ AVERAGE NGL PRICE PER BARREL United States $ 25.27 $ 24.34 Canada 19.34 24.75 Total 23.83 24.42
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