-----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, TpXkDpAJB5u7PpcOyKJKGSTbvOg30Goh0Tp7amnqEw69kND+CzLGPdMLstehlpSf TNT3ldVhhNk8HEVzI65Rmw== 0000950129-05-007372.txt : 20050728 0000950129-05-007372.hdr.sgml : 20050728 20050728103952 ACCESSION NUMBER: 0000950129-05-007372 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050728 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050728 DATE AS OF CHANGE: 20050728 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: 05979483 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 h27345e8vk.txt APACHE CORPORATION - JULY 28, 2005 ================================================================================ 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): July 28, 2005 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 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: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] 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 is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the liabilities of that Section, and shall not be incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as set forth by specific reference in such filing. ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On July 28, 2005, Apache Corporation issued a press release announcing financial and operating results for the fiscal quarter ended June 30, 2005. The full text of the press release is listed and furnished under Item 9.01 as Exhibit 99.1 and incorporated herein by reference. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS. (C) EXHIBITS.
EXHIBIT NO. DESCRIPTION 99.1 Press Release dated July 28, 2005, "Apache Reports Record Second- Quarter Earnings of $587 Million or $1.76 per Share"
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: July 28, 2005 /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 July 28, 2005, "Apache Reports Record Second- Quarter Earnings of $587 Million or $1.76 per Share"
EX-99.1 2 h27345exv99w1.txt PRESS RELEASE DATED JULY 28, 2005 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.apachcorp.com FOR RELEASE AT 7:45 A.M. CENTRAL TIME APACHE REPORTS RECORD SECOND-QUARTER EARNINGS OF $587 MILLION OR $1.76 PER SHARE FIRST-HALF PRODUCTION INCREASES 7 PERCENT TO 466,000 BARRELS OF OIL EQUIVALENT PER DAY Houston, July 28, 2005 - Apache Corporation (NYSE, Nasdaq: APA) today reported that higher oil and gas prices and record production combined to generate record second-quarter 2005 earnings of $587 million or $1.76 per diluted common share, up from $382 million or $1.16 per diluted common share in the prior-year period. It was the company's sixth consecutive quarter of record earnings. Cash from operations before changes in operating assets and liabilities* totaled a record $1.1 billion in the second quarter, up 53 percent from $721 million in the year-earlier period. For the first half of 2005, Apache reported earnings of $1.15 billion, or $3.44 per share, up 58 percent from the first half of 2004, and cash from operations of $2.1 billion, up from $1.5 billion in the year-earlier period. First-half oil and gas revenues climbed $1 billion, or 42 percent, to $3.4 billion. Production averaged 470,000 barrels of oil equivalent (boe) per day in the second quarter, 6 percent ahead of last year's second-quarter production. For the first six months, Apache's production was up 7 percent to 466,000 boe per day. "A number of factors - including our active drilling program and development projects in Canada, Egypt, the North Sea and Australia - point to continued production growth in the second half of 2005," said G. Steven Farris, Apache's president, chief executive officer and chief operating officer. Apache completed 712 wells in the first half, up from 505 wells in the first half of 2004. Apache's results reflected continuing strong oil and gas prices. Apache received $48.55 per barrel of oil in the second quarter, up 47 percent from the prior-year period; $30.12 per barrel of natural gas liquids, up 31 percent; and $5.71 per thousand cubic feet of gas, up 18 percent. Recent operational highlights include: - In Canada, gas production rose to 364 MMcf per day in the first half, up 13 percent from the first half of 2004. Apache has drilled 157 wells on Canadian acreage acquired last year in a farm-in from ExxonMobil, of which 26 are on production, two were dry and others are being brought on production as processing and transportation infrastructure becomes available. During the second quarter, Apache and ExxonMobil expanded their agreement, which now covers more than 1 million acres. - Apache initiated production from the Qasr field development in Egypt on July 20. As additional facilities are commissioned, the company expects to ramp up production at Qasr, reaching 150 million cubic feet (MMcf) of gas per day by the end of the third quarter of 2005. - In Australia, the Rose-4 gas well was brought on production during the second quarter and currently is producing 61 MMcf of gas and 1,700 barrels of condensate per day. Apache expects to commence production from the John Brookes development by the end of the third quarter. - Oil production from the North Sea increased to 63,600 barrels per day during the first half, up 39 percent from the prior-year period. Apache Corporation is a large gas and oil independent with core operations in the United States, Canada, Egypt, the United Kingdom North Sea and Australia. *CASH FROM OPERATIONS BEFORE CHANGES IN OPERATING ASSETS AND LIABILITIES IS A NON-GAAP MEASURE; SEE RECONCILIATION BELOW. -end- NOTE: Apache will webcast its conference call live at 1 p.m. Central Time on July 28, 2005, from its Web site, www.apachecorp.com. The replay will be available on the Web site or by dialing (719) 457-0820 and using Apache's confirmation code, 968882. The telephone replay will be available for one week beginning at approximately 5 p.m. on July 28. 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 production and exploration and development opportunities. 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 FOR THE SIX MONTHS ENDED JUNE 30, ENDED JUNE 30, --------------------------------- ---------------------------------- 2005 2004 2005 2004 --------------- --------------- ----------------- --------------- REVENUES AND OTHER: Oil and gas production revenues $ 1,774,535 $ 1,247,412 $ 3,401,184 $ 2,400,166 Other (15,304) (6,679) 20,335 (9,494) --------------- --------------- ----------------- --------------- 1,759,231 1,240,733 3,421,519 2,390,672 --------------- --------------- ----------------- --------------- OPERATING EXPENSES: Depreciation, depletion and amortization 359,011 295,737 698,424 581,965 Asset retirement obligation accretion 13,330 10,891 26,489 21,652 Lease operating costs 255,430 199,779 488,601 408,015 Gathering and transportation costs 26,178 20,162 49,958 39,796 Severance and other taxes 86,593 21,595 158,779 30,543 General and administrative 52,002 39,181 102,413 85,238 China litigation provision - 71,216 - 71,216 --------------- --------------- ----------------- --------------- Total operating expenses 792,544 658,561 1,524,664 1,238,425 --------------- --------------- ----------------- --------------- OPERATING INCOME 966,687 582,172 1,896,855 1,152,247 FINANCING COSTS: Interest expense 44,807 40,193 90,073 80,742 Amortization of deferred loan costs 2,047 595 2,705 1,162 Capitalized interest (14,254) (12,708) (27,663) (26,358) Interest income (875) (513) (1,802) (833) --------------- --------------- ----------------- --------------- Net financing costs 31,725 27,567 63,313 54,713 --------------- --------------- ----------------- --------------- INCOME BEFORE INCOME TAXES 934,962 554,605 1,833,542 1,097,534 Provision for income taxes 346,932 171,079 685,029 367,683 --------------- --------------- ----------------- --------------- NET INCOME 588,030 383,526 1,148,513 729,851 Preferred stock dividends 1,420 1,420 2,840 2,840 --------------- --------------- ----------------- --------------- INCOME ATTRIBUTABLE TO COMMON STOCK $ 586,610 $ 382,106 $ 1,145,673 $ 727,011 =============== =============== ================= =============== BASIC NET INCOME PER COMMON SHARE $ 1.79 $ 1.17 $ 3.49 $ 2.23 =============== =============== ================= =============== DILUTED NET INCOME PER COMMON SHARE $ 1.76 $ 1.16 $ 3.44 $ 2.21 =============== =============== ================= =============== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 328,578 325,668 328,309 325,335 =============== =============== ================= ===============
APACHE CORPORATION FINANCIAL INFORMATION (In thousands)
FOR THE QUARTER FOR THE SIX MONTHS ENDED JUNE 30, ENDED JUNE 30, --------------------- ------------------------ 2005 2004 2005 2004 --------- --------- ----------- ---------- COSTS INCURRED: North America exploration and development $ 510,772 $ 360,454 $ 1,040,206 $ 702,818 International exploration and development 303,311 179,623 565,658 343,697 --------- --------- ----------- ---------- $ 814,083 $ 540,077 $ 1,605,864 $1,046,515 ========= ========= =========== ========== Oil and gas property acquisitions $ 5,705 $ - $ 25,654 $ - ========= ========= =========== ========== Capitalized interest $ 14,254 $ 12,708 $ 27,663 $ 26,358 ========= ========= =========== ========== Asset retirement costs $ 26,776 $ 8,045 $ 37,289 $ 20,082 ========= ========= =========== ==========
JUNE 30, DECEMBER 31, 2005 2004 --------------------- ------------------------ BALANCE SHEET DATA: Current Assets $ 1,583,275 $ 1,348,782 Property and Equipment, net 14,993,318 13,860,359 Goodwill 189,252 189,252 Other Assets 114,735 104,087 --------------------- ------------------------ Total Assets $ 16,880,580 $ 15,502,480 ===================== ======================== Current Liabilities $ 1,819,227 $ 1,282,891 Long-Term Debt 2,191,611 2,588,390 Deferred Credits and Other Noncurrent Liabilities 3,673,114 3,426,778 Shareholders' Equity 9,196,628 8,204,421 --------------------- ------------------------ Total Liabilities and Shareholders' Equity $ 16,880,580 $ 15,502,480 ===================== ======================== Common shares outstanding at end of period 328,847 327,458
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 FOR THE SIX MONTHS ENDED JUNE 30 ENDED JUNE 30, --------------------------- --------------------------- 2005 2004 2005 2004 ------------ ------------ ------------ ------------ Net cash provided by operating activities $ 993,009 $ 646,720 $ 1,829,181 $ 1,299,052 Changes in operating assets and liabilities 112,639 74,250 299,535 158,644 ------------ ------------ ------------ ------------ Cash from operations before changes in operating assets and liabilities $ 1,105,648 $ 720,970 $ 2,128,716 $ 1,457,696 ============ ============ ============ ============
APACHE CORPORATION FINANCIAL INFORMATION
FOR THE QUARTER FOR THE SIX MONTHS ENDED JUNE 30, ENDED JUNE 30, ---------------------------------- ---------------------------------- 2005 2004 2005 2004 ---------------- ---------------- ---------------- ---------------- FINANCIAL DATA (In thousands, except per share data): Revenues and other $ 1,759,231 $ 1,240,733 $ 3,421,519 $ 2,390,672 ================ ================ ================ ================ Income Attributable to Common Stock $ 586,610 $ 382,106 $ 1,145,673 $ 727,011 ================ ================ ================ ================ Basic Net Income Per Common Share $ 1.79 $ 1.17 $ 3.49 $ 2.23 ================ ================ ================ ================ Diluted Net Income Per Common Share $ 1.76 $ 1.16 $ 3.44 $ 2.21 ================ ================ ================ ================ Weighted Average Common Shares Outstanding 328,578 325,668 328,309 325,335 ================ ================ ================ ================ Diluted Shares Outstanding 333,468 329,363 333,267 329,053 ================ ================ ================ ================ PRODUCTION AND PRICING DATA: OIL VOLUME - BARRELS PER DAY United States 77,140 69,080 75,395 68,167 Canada 21,442 26,226 22,354 25,746 Egypt 53,019 53,410 53,795 51,254 Australia 13,487 22,200 14,725 22,928 North Sea 65,251 47,179 63,570 45,739 China 10,677 5,966 10,592 6,703 Argentina 1,173 541 940 547 ---------------- ---------------- ---------------- ---------------- Total 242,189 224,602 241,371 221,084 ================ ================ ================ ================ AVERAGE OIL PRICE PER BARREL United States $ 46.02 $ 37.00 $ 45.04 $ 34.71 Canada 48.61 35.91 47.85 34.48 Egypt 50.49 34.24 49.62 32.85 Australia 53.52 39.03 53.24 36.88 North Sea 49.65 21.70 47.93 22.19 China 45.35 31.73 39.71 30.84 Argentina 36.19 35.10 35.36 34.26 Total 48.55 33.06 47.31 31.77 NATURAL GAS VOLUME - MCF PER DAY United States 653,805 665,167 645,848 654,815 Canada 380,564 327,537 363,747 320,800 Egypt 146,724 137,329 151,002 132,997 Australia 110,005 115,824 111,859 117,323 North Sea 2,297 1,661 2,238 1,631 Argentina 3,248 3,334 3,360 4,247 ---------------- ---------------- ---------------- ---------------- Total 1,296,643 1,250,852 1,278,054 1,231,813 ================ ================ ================ ================ AVERAGE NATURAL GAS PRICE PER MCF United States $ 6.43 $ 5.31 $ 6.24 $ 5.33 Canada 6.03 5.11 5.82 5.10 Egypt 4.71 4.66 4.50 4.39 Australia 1.71 1.65 1.76 1.67 North Sea 6.74 5.05 6.04 4.70 Argentina 1.22 0.67 1.06 0.55 Total 5.71 4.84 5.51 4.81 NGL VOLUME - BARRELS PER DAY United States 9,408 7,585 9,257 7,856 Canada 1,913 2,601 2,165 2,600 ---------------- ---------------- ---------------- ---------------- Total 11,321 10,186 11,422 10,456 ================ ================ ================ ================ AVERAGE NGL PRICE PER BARREL United States $ 31.19 $ 22.48 $ 29.76 $ 23.92 Canada 24.88 24.23 25.20 21.78 Total 30.12 22.92 28.89 23.39
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