0001193125-13-314132.txt : 20130801 0001193125-13-314132.hdr.sgml : 20130801 20130801092924 ACCESSION NUMBER: 0001193125-13-314132 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20130801 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20130801 DATE AS OF CHANGE: 20130801 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: 131001167 BUSINESS ADDRESS: STREET 1: 2000 POST OAK BLVD STREET 2: 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 d577814d8k.htm FORM 8-K Form 8-K

 

 

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): August 1, 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)

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 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 August 1, 2013, Apache Corporation issued a press release announcing financial and operating results for the fiscal quarter ended June 30, 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 August 1, 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: August 1, 2013      

/s/ Rebecca A. Hoyt

      Rebecca A. Hoyt
      Vice President, Chief Accounting Officer and Controller
      (Principal Accounting Officer)

INDEX TO EXHIBITS

 

Exhibit
No.

   

Description

99.1    Press Release of Apache Corporation dated August 1, 2013.
 EX-99.1 2 d577814dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

   NEWS RELEASE

FOR IMMEDIATE RELEASE

APACHE REPORTS NET INCOME OF $1 BILLION, $2.54 EARNINGS PER DILUTED SHARE, AND

$2.8 BILLION OF CASH FLOW FOR SECOND-QUARTER 2013

 

  •  

Achieved 42 percent year-over-year growth in North America onshore liquids

 

  •  

Announced agreement to sell Gulf of Mexico shelf assets for $3.75 billion

 

  •  

Increased drilling activities in the Permian and Anadarko basins

HOUSTON, Aug. 1, 2013 – Apache Corporation (NYSE, Nasdaq: APA), today announced second-quarter 2013 earnings of $1 billion or $2.54 per diluted common share and adjusted earnings,* which exclude certain items that impact the comparability of results, of $801 million or $2.01 per share. For the same period in the prior year, Apache reported earnings of $337 million or $0.86 per diluted common share and adjusted earnings of $821 million or $2.07 per share. Net cash provided by operating activities came to approximately $2.8 billion, with cash from operations before changes in operating assets and liabilities* totaling $2.6 billion, up from $2.4 billion in the year-ago period.

“We have increased our drilling activities in Texas and Oklahoma to boost production and accelerate cash flow from our crude oil and liquids-rich assets. With our acquisitions in the Permian and Anadarko basins over the last three years, we added to an already formidable, legacy footprint in both of these areas. This gives us an outstanding platform to continue growth in these regions,” said G. Steven Farris, chairman and chief executive officer at Apache. “We currently operate 45 rigs in our Permian Region, where second-quarter production was up 18 percent from a year ago, averaging 123,000 barrels of oil equivalent (Boe) per day. In our Central Region, we have ramped up to 35 rigs, and production was up 65 percent from a year ago, averaging 91,000 Boe per day.”

Production and operating highlights

Highlights from the three-month period ending June 30, 2013, and more recent drilling include:

 

  •  

North American onshore liquids production increased to 175,000 barrels per day, up 42 percent

 

LOGO

APACHE REPORTS SECOND QUARTER 2013 RESULTS — ADD 1

 

 

compared with the same period a year ago.

 

  •  

In the Permian Basin, production from our Barnhart area has grown substantially, increasing 32 percent from first-quarter 2013 to 4,700 barrels of oil and 13.5 million cubic feet (MMcf) of gas per day. We are currently running six horizontal rigs in the play targeting Upper and Middle Wolfcamp zones.

 

  •  

In the Central Region, three Canyon Wash wells drilled last month are testing at a combined rate of more than 4,000 barrels of oil per day from vertical penetrations. The Bivins LIT 115-7 is testing naturally at approximately 885 barrels of oil and 885 thousand cubic feet (Mcf) of natural gas per day. The well is scheduled to be fracture-stimulated later this month. The Bivins LIT 3-3 and the Boys Ranch 116-5 are flowing back after fracture stimulation at 1,467 barrels of oil and 1.3 MMcf of gas and 1,950 barrels of oil and 1.6 MMcf of gas per day, respectively. Over the past two years Apache has built an approximate 100,000 net acreage position in the play.

 

  •  

In its international regions, Apache announced today seven new oil and gas discoveries in Egypt, located in four geologic basins and six different concessions. In late July, a third production well came online at the Bacchus development in the North Sea with flow rates of 9,400 barrels of oil per day. Gross production from the Bacchus field, where Apache has a 50 percent working interest, has reached 17,600 barrels of oil per day. A copy of the news releases reporting these results can be accessed at www.apachecorp.com.

Apache’s second-quarter 2013 operations supplement includes drilling, production and other updates for each of its 10 regions. The full document can be accessed here www.apachecorp.com/financialdata.

Oil and gas prices

Apache’s mix of hydrocarbon production during the second-quarter 2013 included approximately 45 percent crude oil and 9 percent natural gas liquids. Due to the premium prices received for crude oil versus natural gas, liquids contributed 81 percent of the company’s revenue during the period.

Worldwide, Apache received an average price of $97.93 per barrel of oil during the second quarter, compared with $97.66 per barrel in the same period of the prior year. Apache received an average price of $3.87

APACHE REPORTS SECOND QUARTER 2013 RESULTS — ADD 2

 

per Mcf of natural gas, up 10 percent from $3.51 per Mcf in the prior-year period.

Portfolio update

“In addition to Apache’s operating achievements, we also made significant progress in our portfolio rebalancing plans announced in May,” Farris said. “In July, we announced an agreement to sell our Gulf of Mexico Shelf properties to Fieldwood Energy LLC, an affiliate of Riverstone Holdings, for $3.75 billion and Fieldwood’s assumption of all asset retirement obligations for these properties, estimated at a discounted value of $1.5 billion. This remains on target to close at the end of September.

“At the end of this portfolio transitioning process, we expect Apache to have an improved asset mix that will drive more predictable production growth and strong returns, and create additional shareholder value for years to come,” Farris said.

About Apache

Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom, Australia and Argentina. Apache posts announcements, operational updates, investor information and copies of all press releases on its website, www.apachecorp.com.

* 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.

Conference call

Apache will conduct a conference call to discuss its results and review its portfolio at 1 p.m. Central time on Thursday, Aug. 1. The call will be webcast on Apache’s website, www.apachecorp.com. A replay of the webcast will be archived on Apache’s website and available for delayed playback by telephone for one week beginning at approximately 4 p.m. Central time on Aug. 1. To access the telephone playback, dial 855-859-2056 or 404-537-3406 for international calls. The conference access code is 84102019.

-end-

APACHE REPORTS SECOND QUARTER 2013 RESULTS — ADD 3

 

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 Apache’s operations, including statements about our drilling plans and production expectations, asset sales and monetizations and share repurchases. The transaction with Fieldwood is subject to customary closing conditions and may not be completed for the amount expected, in the anticipated time frame, or at all. 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 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.

Contacts

 

Media:    (713) 296-6100      Patrick Cassidy
   (281) 302-2646      John Roper
   (713) 296-7276      Bill Mintz
   (713) 296-6662      Bob Dye
Investor:    (281) 302-2286      Brady Parish
        Castlen Kennedy
        Christopher Cortez
        Alicia Reis
       

Website: www.apachecorp.com

APACHE CORPORATION

STATEMENT OF CONSOLIDATED OPERATIONS

(In millions, except per share data)

 

     For the Quarter     For the Six Months  
     Ended June 30,     Ended June 30,  
     2013      2012     2013      2012  

REVENUES AND OTHER:

           

Oil revenues

    $ 3,196       $ 3,092      $ 6,451       $ 6,604   

Gas revenues

      769         740        1,504         1,551   

NGL revenues

      154         124        310         258   
  

 

 

     

 

 

    

 

 

     

 

 

  

Oil and gas production revenues

      4,119         3,956        8,265         8,413   

Derivative instrument gains (losses), net

      247         —          147         —     

Other

      17         16        47         95   
  

 

 

     

 

 

    

 

 

     

 

 

  
     4,383         3,972        8,459         8,508   
  

 

 

     

 

 

    

 

 

     

 

 

  

COSTS AND EXPENSES:

           

Depreciation, depletion and amortization

           

Oil and gas property and equipment

           

Recurring

      1,311         1,194        2,576         2,329   

Additional

      —           648        65         1,169   

Other assets

      93         90        198         174   

Asset retirement obligation accretion

      65         57        130         112   

Lease operating expenses

      829         704        1,600         1,377   

Gathering and transportation

      80         72        154         149   

Taxes other than income

      183         203        425         460   

General and administrative

      133         132        249         260   

Merger, acquisitions & transition

      —           16        —           22   

Financing costs, net

      51         45        104         85   
  

 

 

     

 

 

    

 

 

     

 

 

  
     2,745         3,161        5,501         6,137   
  

 

 

     

 

 

    

 

 

     

 

 

  

INCOME BEFORE INCOME TAXES

      1,638         811        2,958         2,371   

Current income tax provision

      284         460        781         1,185   

Deferred income tax provision (benefit)

      319         (5 )      425         33   
  

 

 

     

 

 

    

 

 

     

 

 

  

NET INCOME

      1,035         356        1,752         1,153   

Preferred stock dividends

      19         19        38         38   
  

 

 

     

 

 

    

 

 

     

 

 

  

INCOME ATTRIBUTABLE TO COMMON STOCK

    $ 1,016       $ 337      $ 1,714       $ 1,115   
  

 

 

     

 

 

    

 

 

     

 

 

  

NET INCOME PER COMMON SHARE:

           

Basic

    $ 2.59       $ 0.87      $ 4.37       $ 2.88   

Diluted

    $ 2.54       $ 0.86      $ 4.30       $ 2.86   

WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:

           

Basic

      392         389        392         387   

Diluted

      408         390        408         403   

DIVIDENDS DECLARED PER COMMON SHARE

    $ 0.20       $ 0.17      $ 0.40       $ 0.34   

APACHE CORPORATION

SUMMARY OF CAPITAL COSTS INCURRED

(In millions)

 

     For the Quarter      For the Six Months  
     Ended June 30,      Ended June 30,  
     2013      2012      2013      2012  

CAPITAL EXPENDITURES (1):

            

Exploration & Development Costs

            

United States

    $ 1,413       $ 1,392       $ 2,682       $ 2,186   

Canada

      89         97         347         295   
  

 

 

     

 

 

     

 

 

     

 

 

  

North America

      1,502         1,489         3,029         2,481   
  

 

 

     

 

 

     

 

 

     

 

 

  

Egypt

      288         260         550         510   

Australia

      402         175         627         253   

North Sea

      253         224         430         420   

Argentina

      52         73         85         157   

New Ventures - International

      20         12         25         33   
  

 

 

     

 

 

     

 

 

     

 

 

  

International

      1,015         744         1,717         1,373   
  

 

 

     

 

 

     

 

 

     

 

 

  

Worldwide Exploration & Development Costs

    $ 2,517       $ 2,233       $ 4,746       $ 3,854   
  

 

 

     

 

 

     

 

 

     

 

 

  

Gathering, Transmission and Processing Facilities

            

United States

    $ 32       $ 32       $ 50       $ 44   

Canada

      26         42         56         86   

Egypt

      15         20         34         37   

Australia

      153         77         333         249   

Argentina

      2         5         4         9   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total Gathering, Transmission and Processing

    $ 228       $ 176       $ 477       $ 425   
  

 

 

     

 

 

     

 

 

     

 

 

  

Capitalized Interest

    $ 90       $ 85       $ 183       $ 151   
  

 

 

     

 

 

     

 

 

     

 

 

  

Capital Expenditures, excluding Acquisitions

    $ 2,835       $ 2,494       $ 5,406       $ 4,430   
  

 

 

     

 

 

     

 

 

     

 

 

  

Acquisitions

    $ —         $ 3,302       $ 310       $ 3,362   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(1) Accrual basis

APACHE CORPORATION

SUMMARY BALANCE SHEET INFORMATION

(In millions)

 

     June 30,      December 31,  
     2013      2012  

Cash and Cash Equivalents

    $ 184       $ 160   

Other Current Assets

      4,574         4,802   

Property and Equipment, net

      55,821         53,280   

Goodwill

      1,369         1,289   

Other Assets

      1,402         1,206   
  

 

 

     

 

 

  

Total Assets

    $ 63,350       $ 60,737   
  

 

 

     

 

 

  

Short-Term Debt

    $ 478       $ 990   

Other Current Liabilities

      4,680         4,546   

Long-Term Debt

      12,297         11,355   

Deferred Credits and Other Noncurrent Liabilities

      13,174         12,515   

Shareholders’ Equity

      32,721         31,331   
  

 

 

     

 

 

  

Total Liabilities and Shareholders’ Equity

    $ 63,350       $ 60,737   
  

 

 

     

 

 

  

Common shares outstanding at end of period

      392         392   

APACHE CORPORATION

PRODUCTION INFORMATION

 

     For the Quarter      For the Six Months  
     Ended June 30,      Ended June 30,  
     2013      2012      2013      2012  

OIL VOLUME - Barrels per day

            

Central

      21,950         11,985         21,242         9,234   

Permian

      68,811         58,391         68,358         57,436   

GOM Deepwater

      8,223         6,237         7,732         6,019   

GOM Shelf

      47,721         41,610         45,684         44,097   

GC Onshore

      10,593         9,455         10,287         10,017   
  

 

 

     

 

 

     

 

 

     

 

 

  

United States

      157,298         127,678         153,303         126,803   

Canada

      18,573         15,277         17,878         15,429   
  

 

 

     

 

 

     

 

 

     

 

 

  

North America

      175,871         142,955         171,181         142,232   
  

 

 

     

 

 

     

 

 

     

 

 

  

Egypt

      88,002         98,922         89,649         99,206   

Australia

      21,810         30,497         20,911         30,447   

North Sea

      63,667         65,996         66,051         65,971   

Argentina

      9,365         9,583         9,331         9,608   
  

 

 

     

 

 

     

 

 

     

 

 

  

International

      182,844         204,998         185,942         205,232   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

      358,715         347,953         357,123         347,464   
  

 

 

     

 

 

     

 

 

     

 

 

  

NATURAL GAS VOLUME - Mcf per day

            

Central

      275,507         235,308         276,262         200,585   

Permian

      190,455         178,068         188,097         179,161   

GOM Deepwater

      24,957         47,782         28,030         47,389   

GOM Shelf

      262,318         301,503         258,383         316,822   

GC Onshore

      107,424         81,752         106,423         86,996   
  

 

 

     

 

 

     

 

 

     

 

 

  

United States

      860,661         844,413         857,195         830,953   

Canada

      520,797         612,064         519,991         624,145   
  

 

 

     

 

 

     

 

 

     

 

 

  

North America

      1,381,458         1,456,477         1,377,186         1,455,098   
  

 

 

     

 

 

     

 

 

     

 

 

  

Egypt

      357,291         358,985         361,428         367,526   

Australia

      212,022         211,524         213,202         217,930   

North Sea

      48,411         64,722         51,704         65,894   

Argentina

      184,528         224,289         186,383         217,741   
  

 

 

     

 

 

     

 

 

     

 

 

  

International

      802,252         859,520         812,717         869,091   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

     2,183,710         2,315,997         2,189,903         2,324,189   
  

 

 

     

 

 

     

 

 

     

 

 

  

NGL VOLUME - Barrels per day

            

Central

      23,021         3,962         21,279         3,738   

Permian

      22,692         16,405         21,644         14,527   

GOM Deepwater

      1,162         1,474         1,025         865   

GOM Shelf

      7,641         5,762         6,824         4,678   

GC Onshore

      2,502         2,062         2,408         2,183   
  

 

 

     

 

 

     

 

 

     

 

 

  

United States

      57,018         29,665         53,180         25,991   

Canada

      6,686         5,844         6,675         6,078   
  

 

 

     

 

 

     

 

 

     

 

 

  

North America

      63,704         35,509         59,855         32,069   
  

 

 

     

 

 

     

 

 

     

 

 

  

North Sea

      1,201         1,957         1,346         1,962   

Argentina

      2,239         3,067         2,529         3,030   
  

 

 

     

 

 

     

 

 

     

 

 

  

International

      3,440         5,024         3,875         4,992   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

      67,144         40,533         63,730         37,061   
  

 

 

     

 

 

     

 

 

     

 

 

  

BOE per day

            

Central

      90,888         55,165         88,565         46,403   

Permian

      123,246         104,475         121,351         101,824   

GOM Deepwater

      13,545         15,675         13,428         14,782   

GOM Shelf

      99,082         97,623         95,573         101,579   

GC Onshore

      30,998         25,142         30,432         26,699   
  

 

 

     

 

 

     

 

 

     

 

 

  

United States

      357,759         298,080         349,349         291,287   

Canada

      112,059         123,131         111,218         125,531   
  

 

 

     

 

 

     

 

 

     

 

 

  

North America

      469,818         421,211         460,567         416,818   
  

 

 

     

 

 

     

 

 

     

 

 

  

Egypt

      147,551         158,752         149,887         160,460   

Australia

      57,147         65,751         56,444         66,769   

North Sea

      72,936         78,741         76,015         78,915   

Argentina

      42,359         50,031         42,924         48,928   
  

 

 

     

 

 

     

 

 

     

 

 

  

International

      319,993         353,275         325,270         355,072   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

     789,811         774,486         785,837         771,890   
  

 

 

     

 

 

     

 

 

     

 

 

  

APACHE CORPORATION

PRICE INFORMATION

 

     For the Quarter      For the Six Months  
     Ended June 30,      Ended June 30,  
     2013      2012      2013      2012  

AVERAGE OIL PRICE PER BARREL

            

Central

    $ 89.18       $ 88.14       $ 88.69       $ 91.88   

Permian

      92.08         86.71         87.49         92.44   

GOM Deepwater

      105.54         105.82         107.83         108.23   

GOM Shelf

      106.95         109.21         109.19         111.76   

GC Onshore

      106.22         108.40         108.54         111.06   

United States (1)

      97.14         94.37         95.84         98.20   

Canada

      87.38         82.35         84.97         87.46   

North America (1)

      96.11         93.08         94.70         97.03   

Egypt (1)

      99.36         98.73         105.25         111.18   

Australia (1)

      100.79         109.46         106.29         116.20   

North Sea (1)

      102.95         104.16         106.85         108.67   

Argentina

      77.74         72.69         76.56         77.88   

International (1)

      99.67         100.86         104.50         109.56   

Total (1)

      97.93         97.66         99.80         104.43   

AVERAGE NATURAL GAS PRICE PER MCF

            

Central

    $ 3.91       $ 2.73       $ 3.82       $ 2.89   

Permian

      3.86         2.79         3.81         3.26   

GOM Deepwater

      3.14         2.34         3.28         2.65   

GOM Shelf

      4.18         2.47         3.87         2.84   

GC Onshore

      4.27         2.31         3.91         2.57   

United States (1)

      4.07         3.33         3.92         3.63   

Canada (1)

      3.52         2.94         3.37         3.18   

North America (1)

      3.86         3.17         3.71         3.44   

Egypt

      3.00         3.75         2.97         3.77   

Australia

      4.70         4.41         4.82         4.29   

North Sea

      10.86         9.42         10.41         8.68   

Argentina

      2.79         2.76         2.99         2.87   

International

      3.87         4.08         3.93         4.05   

Total (1)

      3.87         3.51         3.79         3.67   

AVERAGE NGL PRICE PER BARREL

            

Central

    $ 21.69       $ 26.45       $ 23.90       $ 31.63   

Permian

      25.53         34.36         25.61         38.90   

GOM Deepwater

      31.26         35.73         32.73         36.14   

GOM Shelf

      27.21         31.02         27.93         35.59   

GC Onshore

      28.80         38.28         31.14         42.97   

United States

      24.46         32.99         25.61         37.51   

Canada

      24.60         32.07         28.35         37.03   

North America

      24.48         32.84         25.92         37.42   

North Sea

      70.39         69.23         70.81         76.69   

Argentina

      20.94         21.09         26.12         23.61   

International

      38.19         39.84         41.65         44.47   

Total

      25.18         33.71         26.87         38.37   

 

(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 Apache’s 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 company’s 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 company’s results.

 

     For the Quarter     For the Six Months  
     Ended June 30,     Ended June 30,  
     2013     2012     2013     2012  

Income Attributable to Common Stock (GAAP)

    $ 1,016      $ 337      $ 1,714      $ 1,115   

Adjustments:

         

Deferred tax adjustments

      7        —          46        —     

Oil & gas property write-downs, net of tax

      —          480        42        870   

Merger, acquisitions & transition, net of tax

      —          10        —          13   

Unrealized foreign currency fluctuation impact on deferred tax expense

      (66 )      (6 )      (70 )      1   

Commodity derivative mark-to-market, net of tax

      (156 )      —          (125 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted Earnings (Non-GAAP)

    $ 801      $ 821      $ 1,607      $ 1,999   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net Income per Common Share - Diluted (GAAP)

    $ 2.54      $ 0.86      $ 4.30      $ 2.86   

Adjustments:

         

Deferred tax adjustments

      0.01        —          0.11        —     

Oil & gas property write-downs, net of tax

      —          1.19        0.10        2.16   

Merger, acquisitions & transition, net of tax

      —          0.03        —           0.03   

Unrealized foreign currency fluctuation impact on deferred tax expense

      (0.16 )      (0.01 )      (0.17 )      0.01   

Commodity derivative mark-to-market, net of tax

      (0.38 )      —          (0.31 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Adjusted Earnings Per Share - Diluted (Non-GAAP)

    $ 2.01      $ 2.07      $ 4.03      $ 5.06   
  

 

 

    

 

 

    

 

 

    

 

 

  

Reconciliation of net cash provided by operating activities to cash from operations before changes in operating assets and liabilities:

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,  
     2013     2012     2013     2012  

Net cash provided by operating activities

    $ 2,759      $ 2,792      $ 5,380      $ 4,799   

Changes in operating assets and liabilities

      (161 )      (414 )      (424 )      227   
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash from operations before changes in operating assets and liabilities

    $ 2,598      $ 2,378      $ 4,956      $ 5,026   
  

 

 

    

 

 

    

 

 

    

 

 

  
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