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): May 9, 2013
APACHE CORPORATION
(Exact name of registrant as specified in its charter)
Delaware | 1-4300 | 41-0747868 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
2000 Post Oak Boulevard
Suite 100
Houston, Texas 77056-4400
(Address of principal executive offices) (Zip Code)
Registrants 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 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 May 9, 2013, Apache Corporation issued a press release announcing financial and operating results for the fiscal quarter ended March 31, 2013. 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 of Apache Corporation dated May 9, 2013. |
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: May 9, 2013 | /s/ Thomas P. Chambers | |||||
Thomas P. Chambers | ||||||
(Principal Financial Officer) |
INDEX TO EXHIBITS
Exhibit |
Description | |
99.1 | Press Release of Apache Corporation dated May 9, 2013. |
Exhibit 99.1
|
NEWS RELEASE |
Contacts
Media: | (713) 296-7276 | Bill Mintz | ||
(713) 296-6100 | Patrick Cassidy | |||
(713) 296-6662 | Bob Dye | |||
(281) 302-2646 | John Roper | |||
Investor: | (281) 302-2286 | |||
Brady Parish | ||||
Castlen Kennedy | ||||
Christopher Cortez | ||||
Alicia Reis |
Website: www.apachecorp.com
APACHE REPORTS FIRST-QUARTER RESULTS, $4 BILLION ASSET SALES GOAL,
PROGRAM TO REPURCHASE UP TO 30 MILLION SHARES
First-quarter production growth driven by 45% increase in North American onshore liquids
Houston, May 9, 2013 Apache Corporation (NYSE, Nasdaq: APA) reported first-quarter earnings of $698 million, or $1.76 per diluted common share, and adjusted earnings*, which exclude certain items that impact the comparability of operating results, of $806 million or $2.02 per share. During the first quarter, worldwide production increased to 781,819 barrels of oil equivalent (boe) per day driven by a 45 percent increase in North American onshore liquid hydrocarbons output compared with the year-earlier period; earnings declined as a result of lower commodity prices. Cash from operations before changes in operating assets and liabilities* totaled $2.4 billion.
Apache also announced a plan to divest $4 billion in assets by year-end 2013. The company intends to use initial proceeds of $2 billion to reduce debt and enhance financial flexibility. Additional proceeds are intended to be used to repurchase approximately $2 billion of Apache common shares under a 30-million-share repurchase program authorized by the Board of Directors.
APACHE REPORTS FIRST-QUARTER RESULTS ADD 1
G. Steven Farris, Apaches chairman and chief executive officer, said, We are showing strong results from the strategic shift that we outlined in 2012, with production from onshore North American liquids plays of 165,000 barrels per day in the first quarter. We expect our onshore drilling programs will continue to contribute significantly to meeting our production targets.
Farris added, This rationalization of our asset base flows naturally from more than $16 billion of acquisitions over the last three years. Our goal is to ensure that Apaches portfolio has the right mix of assets to generate attractive rates of return, drive production growth, and create shareholder value.
In this vein, our Board and management team conducted a strategic portfolio review to identify assets that no longer fit our growth profile, Farris said. Based on this review, we have a process well under way to divest non-core assets while retaining those that drive long-term growth and generate cash from operations. We are also pursuing other monetizations including joint venture partnerships.
Proceeds from this program will enable us to reduce debt and repurchase up to 30 million shares or approximately 7.5 percent of shares outstanding, Farris said. We believe that as a result of this process, we will become an even stronger company with a focused portfolio of high-growth, high-return assets.
Agreements pertaining to asset sales and monetizations are subject to market conditions including commodity prices. Apaches annual production guidance will not be adjusted until it enters into definitive agreements with potential acquirers or joint venture partners.
The timing and actual number of shares repurchased will depend on a variety of factors including the stock price, corporate and regulatory requirements and other market and economic conditions. Repurchased shares would be available for general corporate purposes.
APACHE REPORTS FIRST-QUARTER RESULTS ADD 2
First-quarter results
In the prior-year period, Apache reported earnings of $778 million or $2.00 per share, adjusted earnings of $1.2 billion or $3.00 per share, and cash from operations before changes in operating assets and liabilities of $2.6 billion.
First-quarter 2013 worldwide production of 781,819 boe per day compared with 769,296 boe per day in the prior-year period and 800,005 boe per day in the fourth quarter of 2012. As previously disclosed, first-quarter 2013 worldwide production was negatively impacted by interruptions associated with cyclones in Australia and third-party gas plant downtime in Canada.
Apache currently is the second most-active U.S. onshore driller with 42 rigs in operation in the Permian Basin and 28 rigs active in the Anadarko Basin. The Permian and Central regions averaged 205,650 boe per day 26 percent of Apaches worldwide output and spent 40 percent of the companys first-quarter drilling capital.
Growth in onshore liquids output was offset by the deferred production of 4,100 boe per day in Canada and 3,500 boe per day in Australia, lower North American gas production because of reduced dry gas drilling activity and natural field declines in other international regions.
The company had previously incorporated production deferrals and declines into its production guidance, and remains on track to achieve its full-year guidance of 3 to 5 percent production growth. This production guidance has not been adjusted for any variances associated with future divestitures.
Operational highlights
| Production in the Anadarko Basin Apaches Central Region increased 129 percent from the year-earlier period to 86,215 boe per day, largely a result of successful drilling in the Tonkawa, Granite Wash and other liquids-rich formations. |
APACHE REPORTS FIRST-QUARTER RESULTS ADD 3
| Permian Basin production rose to 119,435 boe per day, up 20 percent from the prior-year period, as a result of increased drilling and recompletion activity in oil and liquids-rich plays, including the Wolfcamp Shale, the Cline Shale and Yeso. |
| The Tonto oil field in the United Kingdom sector of the North Sea commenced production on April 24, 2013. Tonto-1, the first producing well, came on stream at an initial rate of 10,346 barrels of oil per day through a tie-back to the Forties Bravo production platform. |
| Three discoveries in three basins in Egypt Alamein, Faghur and Matruh highlighted the companys diverse potential for new oil and gas developments across its concessions. |
Oil and gas prices
Liquid hydrocarbons represented 53 percent of first-quarter production but contributed 82 percent of revenues because of the premium prices received for crude oil versus natural gas.
Worldwide, Apache received an average price of $101.72 per barrel of oil during the first quarter, down from $111.22 per barrel during the prior-year period. Apaches oil realizations reflect higher prices relative to the West Texas Intermediate benchmark realized on Dated Brent crude produced in the companys Australia, North Sea and Egypt regions, and on sweet crude from the Gulf of Mexico regions. Apache received these premium prices on approximately 68 percent of its crude oil production.
Apache received an average of $3.72 per thousand cubic feet (Mcf) of natural gas, down from $3.82 per Mcf in the prior-year period. The average price received for Apaches international gas production $3.99 per Mcf exceeded the average price received for companys North American gas production for the fifth consecutive quarter. Approximately 37 percent of Apaches gas output is produced outside North America.
APACHE REPORTS FIRST-QUARTER RESULTS ADD 4
*Adjusted earnings and cash from operations before changes in operating assets and liabilities are non-GAAP measures. Please see reconciliations below. For supplemental financial and operational data and non-GAAP information, please go to http://www.apachecorp.com/financialinfo.
About Apache
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. Apache posts announcements, operational updates, investor information and copies of all press releases on its website, www.apachecorp.com.
Conference call
Apache will conduct a conference call to discuss its results and its portfolio review at 9 a.m. Central time on Thursday, May 9. The conference call will be webcast from Apaches website, www.apachecorp.com. The webcast replay will be archived on Apaches website. The conference call will be available for delayed playback by telephone for one week beginning at approximately noon on May 9. To access the telephone playback, dial 855-859-2056 or 404-537-3406 for international calls. The conference access code is 84101004.
Forward-looking statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as anticipates, intends, plans, seeks, believes, estimates, expects and similar references to future periods. These statements include, but are not limited to, statements about future plans, expectations, and objectives for Apaches operations, including statements about our drilling plans and production expectations, asset sales and monetizations and share repurchases. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results
APACHE REPORTS FIRST-QUARTER RESULTS ADD 5
and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See Risk Factors in our 2012 Form 10-K filed with the Securities and Exchange Commission for a discussion of risk factors that affect our business. Any forward-looking statement made by us in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development, or otherwise, except as may be required by law.
APACHE CORPORATION
STATEMENT OF CONSOLIDATED OPERATIONS
(In millions, except per share data)
For the Quarter Ended March 31, |
||||||||
2013 | 2012 | |||||||
REVENUES AND OTHER: |
||||||||
Oil revenues |
$ | 3,255 | $ | 3,512 | ||||
Gas revenues |
735 | 811 | ||||||
NGL revenues |
156 | 134 | ||||||
|
|
|
|
|||||
Oil and gas production revenues |
4,146 | 4,457 | ||||||
Other |
(70 | ) | 79 | |||||
|
|
|
|
|||||
4,076 | 4,536 | |||||||
|
|
|
|
|||||
COSTS AND EXPENSES: |
||||||||
Depreciation, depletion and amortization |
||||||||
Oil and gas property and equipment |
||||||||
Recurring |
1,265 | 1,135 | ||||||
Additional |
65 | 521 | ||||||
Other assets |
105 | 84 | ||||||
Asset retirement obligation accretion |
65 | 55 | ||||||
Lease operating expenses |
771 | 673 | ||||||
Gathering and transportation |
74 | 77 | ||||||
Taxes other than income |
242 | 257 | ||||||
General and administrative |
116 | 128 | ||||||
Merger, acquisitions & transition |
| 6 | ||||||
Financing costs, net |
53 | 40 | ||||||
|
|
|
|
|||||
2,756 | 2,976 | |||||||
|
|
|
|
|||||
INCOME BEFORE INCOME TAXES |
1,320 | 1,560 | ||||||
Current income tax provision |
497 | 725 | ||||||
Deferred income tax provision |
106 | 38 | ||||||
|
|
|
|
|||||
NET INCOME |
717 | 797 | ||||||
Preferred stock dividends |
19 | 19 | ||||||
|
|
|
|
|||||
INCOME ATTRIBUTABLE TO COMMON STOCK |
$ | 698 | $ | 778 | ||||
|
|
|
|
|||||
NET INCOME PER COMMON SHARE: |
||||||||
Basic |
$ | 1.78 | $ | 2.02 | ||||
Diluted |
$ | 1.76 | $ | 2.00 | ||||
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: |
||||||||
Basic |
392 | 385 | ||||||
Diluted |
408 | 399 | ||||||
DIVIDENDS DECLARED PER COMMON SHARE |
$ | 0.20 | $ | 0.17 |
APACHE CORPORATION
SUMMARY OF CAPITAL COSTS INCURRED
(In millions)
For the Quarter Ended March 31, |
||||||||
2013 | 2012 | |||||||
CAPITAL EXPENDITURES (1): |
||||||||
Exploration & Development Costs |
||||||||
United States |
$ | 1,269 | $ | 794 | ||||
Canada |
258 | 198 | ||||||
|
|
|
|
|||||
North America |
1,527 | 992 | ||||||
|
|
|
|
|||||
Egypt |
262 | 250 | ||||||
Australia |
225 | 78 | ||||||
North Sea |
177 | 196 | ||||||
Argentina |
33 | 84 | ||||||
New Ventures - International |
5 | 21 | ||||||
|
|
|
|
|||||
International |
702 | 629 | ||||||
|
|
|
|
|||||
Worldwide Exploration & Development Costs |
$ | 2,229 | $ | 1,621 | ||||
|
|
|
|
|||||
Gathering, Transmission and Processing Facilities |
||||||||
United States |
$ | 18 | $ | 12 | ||||
Canada |
30 | 44 | ||||||
Egypt |
19 | 17 | ||||||
Australia |
180 | 172 | ||||||
Argentina |
2 | 4 | ||||||
|
|
|
|
|||||
Total Gathering, Transmission and Processing |
$ | 249 | $ | 249 | ||||
|
|
|
|
|||||
Capitalized Interest |
$ | 93 | $ | 66 | ||||
|
|
|
|
|||||
Capital Expenditures, excluding Acquisitions |
$ | 2,571 | $ | 1,936 | ||||
|
|
|
|
|||||
Acquisitions |
$ | 310 | $ | 60 | ||||
|
|
|
|
(1) | Accrual basis |
APACHE CORPORATION
SUMMARY BALANCE SHEET INFORMATION
(In millions)
March 31, 2013 |
December 31, 2012 |
|||||||
Cash and Cash Equivalents |
$ | 248 | $ | 160 | ||||
Other Current Assets |
4,600 | 4,802 | ||||||
Property and Equipment, net |
54,289 | 53,280 | ||||||
Goodwill |
1,369 | 1,289 | ||||||
Other Assets |
1,286 | 1,206 | ||||||
|
|
|
|
|||||
Total Assets |
$ | 61,792 | $ | 60,737 | ||||
|
|
|
|
|||||
Short-Term Debt |
$ | 994 | $ | 990 | ||||
Other Current Liabilities |
4,568 | 4,546 | ||||||
Long-Term Debt |
11,485 | 11,355 | ||||||
Deferred Credits and Other Noncurrent Liabilities |
12,758 | 12,515 | ||||||
Shareholders Equity |
31,987 | 31,331 | ||||||
|
|
|
|
|||||
Total Liabilities and Shareholders Equity |
$ | 61,792 | $ | 60,737 | ||||
|
|
|
|
|||||
Common shares outstanding at end of period |
392 | 392 |
APACHE CORPORATION
PRODUCTION INFORMATION
For the Quarter Ended March 31, |
||||||||
2013 | 2012 | |||||||
OIL VOLUME - Barrels per day |
||||||||
Central |
20,526 | 6,483 | ||||||
Permian |
67,900 | 56,481 | ||||||
GOM Deepwater |
7,235 | 5,801 | ||||||
GOM Shelf |
43,625 | 46,585 | ||||||
GC Onshore |
9,977 | 10,578 | ||||||
|
|
|
|
|||||
United States |
149,263 | 125,928 | ||||||
Canada |
17,176 | 15,582 | ||||||
|
|
|
|
|||||
North America |
166,439 | 141,510 | ||||||
|
|
|
|
|||||
Egypt |
91,315 | 99,490 | ||||||
Australia |
20,001 | 30,398 | ||||||
North Sea |
68,462 | 65,946 | ||||||
Argentina |
9,297 | 9,632 | ||||||
|
|
|
|
|||||
International |
189,075 | 205,466 | ||||||
|
|
|
|
|||||
Total |
355,514 | 346,976 | ||||||
|
|
|
|
|||||
NATURAL GAS VOLUME - Mcf per day |
||||||||
Central |
277,025 | 165,863 | ||||||
Permian |
185,713 | 180,253 | ||||||
GOM Deepwater |
31,136 | 46,996 | ||||||
GOM Shelf |
254,405 | 332,140 | ||||||
GC Onshore |
105,412 | 92,241 | ||||||
|
|
|
|
|||||
United States |
853,691 | 817,493 | ||||||
Canada |
519,175 | 636,227 | ||||||
|
|
|
|
|||||
North America |
1,372,866 | 1,453,720 | ||||||
|
|
|
|
|||||
Egypt |
365,612 | 376,067 | ||||||
Australia |
214,395 | 224,337 | ||||||
North Sea |
55,032 | 67,066 | ||||||
Argentina |
188,259 | 211,193 | ||||||
|
|
|
|
|||||
International |
823,298 | 878,663 | ||||||
|
|
|
|
|||||
Total |
2,196,164 | 2,332,383 | ||||||
|
|
|
|
|||||
NGL VOLUME - Barrels per day |
||||||||
Central |
19,517 | 3,513 | ||||||
Permian |
20,583 | 12,650 | ||||||
GOM Deepwater |
887 | 256 | ||||||
GOM Shelf |
5,999 | 3,594 | ||||||
GC Onshore |
2,313 | 2,304 | ||||||
|
|
|
|
|||||
United States |
49,299 | 22,317 | ||||||
Canada |
6,663 | 6,312 | ||||||
|
|
|
|
|||||
North America |
55,962 | 28,629 | ||||||
|
|
|
|
|||||
North Sea |
1,494 | 1,966 | ||||||
Argentina |
2,822 | 2,994 | ||||||
|
|
|
|
|||||
International |
4,316 | 4,960 | ||||||
|
|
|
|
|||||
Total |
60,278 | 33,589 | ||||||
|
|
|
|
|||||
BOE per day |
||||||||
Central |
86,215 | 37,640 | ||||||
Permian |
119,435 | 99,173 | ||||||
GOM Deepwater |
13,311 | 13,890 | ||||||
GOM Shelf |
92,024 | 105,535 | ||||||
GC Onshore |
29,859 | 28,255 | ||||||
|
|
|
|
|||||
United States |
340,844 | 284,493 | ||||||
Canada |
110,368 | 127,932 | ||||||
|
|
|
|
|||||
North America |
451,212 | 412,425 | ||||||
|
|
|
|
|||||
Egypt |
152,250 | 162,168 | ||||||
Australia |
55,734 | 67,788 | ||||||
North Sea |
79,128 | 79,090 | ||||||
Argentina |
43,495 | 47,825 | ||||||
|
|
|
|
|||||
International |
330,607 | 356,871 | ||||||
|
|
|
|
|||||
Total |
781,819 | 769,296 | ||||||
|
|
|
|
APACHE CORPORATION
PRICE INFORMATION
For the Quarter Ended March 31, |
||||||||
2013 | 2012 | |||||||
AVERAGE OIL PRICE PER BARREL |
||||||||
Central |
$ | 88.15 | $ | 98.79 | ||||
Permian |
82.78 | 98.36 | ||||||
GOM Deepwater |
110.47 | 110.83 | ||||||
GOM Shelf |
111.67 | 114.04 | ||||||
GC Onshore |
111.03 | 113.41 | ||||||
United States (1) |
94.45 | 102.08 | ||||||
Canada |
82.33 | 92.47 | ||||||
North America (1) |
93.20 | 101.02 | ||||||
Egypt |
110.99 | 123.55 | ||||||
Australia (1) |
112.35 | 122.95 | ||||||
North Sea (1) |
110.53 | 113.19 | ||||||
Argentina |
75.36 | 83.03 | ||||||
International (1) |
109.22 | 118.24 | ||||||
Total (1) |
101.72 | 111.22 | ||||||
AVERAGE NATURAL GAS PRICE PER MCF |
||||||||
Central |
$ | 3.73 | $ | 3.10 | ||||
Permian |
3.77 | 3.72 | ||||||
GOM Deepwater |
3.40 | 2.98 | ||||||
GOM Shelf |
3.54 | 3.17 | ||||||
GC Onshore |
3.55 | 2.80 | ||||||
United States (1) |
3.75 | 3.93 | ||||||
Canada (1) |
3.23 | 3.41 | ||||||
North America (1) |
3.56 | 3.70 | ||||||
Egypt |
2.95 | 3.79 | ||||||
Australia |
4.94 | 4.18 | ||||||
North Sea |
10.00 | 7.97 | ||||||
Argentina |
3.18 | 2.98 | ||||||
International |
3.99 | 4.02 | ||||||
Total (1) |
3.72 | 3.82 | ||||||
AVERAGE NGL PRICE PER BARREL |
||||||||
Central |
$ | 26.54 | $ | 37.48 | ||||
Permian |
25.71 | 44.78 | ||||||
GOM Deepwater |
34.68 | 38.51 | ||||||
GOM Shelf |
28.87 | 42.93 | ||||||
GC Onshore |
33.69 | 47.16 | ||||||
United States |
26.96 | 43.51 | ||||||
Canada |
32.15 | 41.63 | ||||||
North America |
27.58 | 43.09 | ||||||
North Sea |
71.16 | 84.11 | ||||||
Argentina |
30.28 | 26.20 | ||||||
International |
44.43 | 49.16 | ||||||
Total |
28.78 | 43.99 |
(1) | Prices reflect the impact of financial derivative hedging activities. |
APACHE CORPORATION
NON-GAAP FINANCIAL MEASURES
(In millions, except per share data)
Reconciliation of income attributable to common stock to adjusted earnings:
The press release discusses Apaches 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 companys 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 companys results. |
For the Quarter Ended March 31, |
||||||||
2013 | 2012 | |||||||
Income Attributable to Common Stock (GAAP) |
$ | 698 | $ | 778 | ||||
Adjustments: |
||||||||
Oil & gas property write-downs, net of tax |
42 | 390 | ||||||
Deferred tax adjustments |
39 | | ||||||
Commodity derivative mark-to-market, net of tax |
31 | | ||||||
Unrealized foreign currency fluctuation impact on deferred tax expense |
(4 | ) | 7 | |||||
Merger, acquisitions & transition, net of tax |
| 3 | ||||||
|
|
|
|
|||||
Adjusted Earnings (Non-GAAP) |
$ | 806 | $ | 1,178 | ||||
|
|
|
|
|||||
Net Income per Common Share - Diluted (GAAP) |
$ | 1.76 | $ | 2.00 | ||||
Adjustments: |
||||||||
Oil & gas property write-downs, net of tax |
0.10 | 0.97 | ||||||
Deferred tax adjustments |
0.10 | | ||||||
Commodity derivative mark-to-market, net of tax |
0.07 | | ||||||
Unrealized foreign currency fluctuation impact on deferred tax expense |
(0.01 | ) | 0.02 | |||||
Merger, acquisitions & transition, net of tax |
| 0.01 | ||||||
|
|
|
|
|||||
Adjusted Earnings Per Share - Diluted (Non-GAAP) |
$ | 2.02 | $ | 3.00 | ||||
|
|
|
|
Reconciliation of net cash provided by operating activities to cash from operations before changes in operating assets and liabilities:
The press release discusses Apaches 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 companys 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, |
||||||||
2013 | 2012 | |||||||
Net cash provided by operating activities |
$ | 2,621 | $ | 2,007 | ||||
Changes in operating assets and liabilities |
(263 | ) | 641 | |||||
|
|
|
|
|||||
Cash from operations before changes in operating assets and liabilities |
$ | 2,358 | $ | 2,648 | ||||
|
|
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