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): November 3, 2016
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 November 3, 2016, Apache Corporation issued a press release announcing financial and operating results for the fiscal quarter ended September 30, 2016. 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 November 3, 2016. |
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: November 3, 2016 | /s/ Rebecca A. Hoyt | |||
Rebecca A. Hoyt | ||||
Senior Vice President, | ||||
Chief Accounting Officer, and Controller (Principal Accounting Officer) |
INDEX TO EXHIBITS
Exhibit No. |
Description | |
99.1 | Press Release of Apache Corporation dated November 3, 2016. |
Exhibit 99.1
![]() |
NEWS RELEASE |
APACHE CORPORATION ANNOUNCES THIRD-QUARTER 2016
FINANCIAL AND OPERATIONAL RESULTS
| Confirmed discovery of significant resource play at Alpine High in the Delaware Basin; |
| Delivered third-quarter production of 520,000 barrels of oil equivalent (Boe) per day and adjusted production of 438,000 Boe per day, which excludes Egypt noncontrolling interest and tax barrels; |
| Plan to increase development drilling in the Midland Basin with the addition of three rigs in the fourth quarter; and |
| Expect to end 2016 at the high end of North American Onshore production guidance and at the midpoint for International and Offshore production guidance. |
HOUSTON, Nov. 3, 2016 Apache Corporation (NYSE, Nasdaq: APA) today announced its financial and operational results for the third quarter of 2016.
Apache reported a loss of $607 million or $1.60 per diluted common share during the third quarter of 2016. These results include a number of items outside of core earnings that are typically excluded by the investment community in their published earnings estimates. When adjusted for these and certain additional items that impact the comparability of results, Apaches third-quarter loss totaled $12 million, or $0.03 per share. Net cash provided by operating activities was $651 million, and adjusted earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses (adjusted EBITDAX) was $896 million. Apache ended the quarter with $1.2 billion of cash, unchanged from the end of the second quarter.
Our exploration success and financial results in the third quarter demonstrate the transformation that is taking place at Apache. During the quarter, Apache announced the discovery of an immense unconventional play in the Delaware Basin, Alpine High. Apaches
APACHE CORPORATION ANNOUNCES THIRD-QUARTER 2016 FINANCIAL AND OPERATIONAL RESULTS
PAGE 2 of 8
extensive position in the play, which now totals 320,000 net acres, is an excellent example of our strategic focus on organic growth and strong technical capabilities. Our goal over time will be to ensure that we develop Alpine High in a methodical, efficient and environmentally responsible way for the benefit of our shareholders and other stakeholders, said John J. Christmann IV, Apaches chief executive officer and president.
Our deliberate focus on strategic testing during the downturn not only yielded excellent results with our Alpine High discovery, but also significantly improved our results in our Midland and Delaware Basin focus areas. Our economic drilling inventory in the Permian Basin is more extensive today than at any time in the companys history, and we expect it will continue to grow as we further delineate our vast acreage position in the basin, said Christmann.
Third-quarter financial position and liquidity
During the third quarter, total capital investment, excluding Egypt noncontrolling interest, was $466 million. At quarter end, Apaches long-term debt remained unchanged at $8.7 billion. The company plans to balance capital spending with cash flow in the fourth quarter and expects that positive cash contributions from working capital and proceeds from noncore asset sales will enable it to achieve its targeted cash position of $1.5 billion at year-end.
Third-quarter operational summary
Apache reported global production of 520,000 Boe per day and adjusted production of 438,000 Boe per day, which excludes Egypt noncontrolling interest and tax barrels. In North America Onshore, production was 270,000 Boe per day while adjusted International and Offshore production was 168,000 Boe per day.
Page 2
APACHE CORPORATION ANNOUNCES THIRD-QUARTER 2016 FINANCIAL AND OPERATIONAL RESULTS
PAGE 3 of 8
Highlights from Apaches key operating areas include:
| North America Onshore Apache placed on production 35 gross-operated wells during the third quarter, predominantly in the Permian Basin. |
| In the Delaware Basin at Alpine High, the company placed five gross-operated wells on production, three of which were disclosed in September. The fourth and fifth wells both targeted the Woodford formation and have confirmed Apaches geologic model and provided further data on the aerial extent and stratigraphic dimension of the play. The Redwood 1H is an over-pressured Woodford well that achieved a peak 24-hour rate of 18 million cubic feet of gas (MMcf) per day. The Blackhawk 1H is a normally pressured Woodford well that tested at a peak 24-hour rate of 5.3 MMcf of gas per day with 224 barrels of oil per day and 245 barrels of NGLs per day. |
| Elsewhere in the Delaware Basin, the company placed eight gross-operated wells on production, including the Pelican 106H, which achieved a 30-day average initial production (IP) rate of 942 Boe per day from a 4,700-foot lateral in the third Bone Springs formation at the companys Pecos Bend area. |
| In the Midland Basin, Northwest Shelf and Central Basin Platform, the company placed 16 gross-operated wells on production, including 13 wells (nine horizontal and four vertical) in the Yeso play on the Northwest Shelf where low well costs and strong initial production rates generate attractive economics at current oil prices. |
Page 3
APACHE CORPORATION ANNOUNCES THIRD-QUARTER 2016 FINANCIAL AND OPERATIONAL RESULTS
PAGE 4 of 8
| Outside of the Permian Basin, a Lower Montney well in the companys Wapiti focus area in Alberta tested at an initial rate of 10.6 MMcf of natural gas per day and 2,000 barrels of condensate per day with an estimated total drill and complete cost of $6.2 million. |
| North Sea Production in the quarter averaged 62,000 Boe per day, down from the previous quarter due to maintenance and third-party facility down time. The company achieved its third consecutive exploration success near the Beryl Field with a discovery in two separate fault blocks at the recently drilled Storr prospect. Results were in line with pre-drill estimates and underscore the benefits of recent vintage 3-D seismic data and the long-term exploration potential in the Beryl area. |
| Egypt Gross production averaged 350,000 Boe per day, and net production, excluding noncontrolling interest and tax barrels, averaged 98,000 Boe per day. Apache placed nine wells on production during the quarter. The company continues to benefit from an optimized drilling program, achieving a 90-percent success rate for wells drilled during the first nine months of the year. |
2016 outlook and plan update
Apaches 2016 capital expenditures are tracking in line with its guidance of $2 billion. Following strong production and drilling results year-to-date, the company expects to end 2016 at the high end of North American Onshore production guidance of 268,000 to 278,000 Boe per day and at the midpoint of International and Offshore production guidance of 170,000 to 180,000 Boe per day. In the fourth quarter, the company plans to increase development drilling activity in the Midland Basin with the addition of three rigs. This will bring the total number of rigs drilling in the Midland Basin to five and will help contribute to the Permian Regions return to a growth trajectory in the second half of 2017.
Page 4
APACHE CORPORATION ANNOUNCES THIRD-QUARTER 2016 FINANCIAL AND OPERATIONAL RESULTS
PAGE 5 of 8
We believe long-term shareholder value is created by living within our means, protecting our strong financial position and organically building high-quality drilling inventory. Our recent discovery at Alpine High is an example of the long-term value we seek to create and is a testament to our strategy and focus during the downturn. We look forward to discussing Alpine High results in more detail over the coming months as our delineation program progresses, Christmann said.
Conference call
Apache will host a conference call to discuss its third-quarter 2016 results at 1 p.m. Central time, Thursday, Nov. 3. The conference call will be webcast from Apaches website at www.apachecorp.com and investor.apachecorp.com, and the webcast replay will be archived there as well. The conference call will also be available for playback by telephone for one week beginning at approximately 4 p.m. Central time Nov. 3. To access the telephone playback, dial 855-859-2056 or 404-537-3406 for international calls. The conference access code is 13749619.
Sign up for email alerts to be reminded of the webcast at http://investor.apachecorp.com/alerts.cfm.
Additional information
Additional information follows, including reconciliations of adjusted earnings and adjusted EBITDAX to GAAP measures and information regarding adjusted production. Apaches quarterly supplement is available at www.apachecorp.com/quarterlyresults.
Page 5
APACHE CORPORATION ANNOUNCES THIRD-QUARTER 2016 FINANCIAL AND OPERATIONAL RESULTS
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About Apache
Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt and the United Kingdom. Apache posts announcements, operational updates, investor information and all press releases on its website, www.apachecorp.com, and on its Media and Investor Center mobile application, which is available for free download from the Apple App Store and Googles Play store. To sign up to receive email alerts regarding news and other website updates, please visit http://investor.apachecorp.com/alerts.cfm.
Non-GAAP financial measures
Apaches financial information includes information prepared in conformity with generally accepted accounting principles (GAAP) as well as non-GAAP information. It is managements intent to provide non-GAAP financial information to enhance understanding of our consolidated financial information as prepared in accordance with GAAP. Adjusted earnings and adjusted EBITDAX are non-GAAP measures. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure.
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, guidance, 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 capital plans, drilling plans, production expectations, asset sales, and monetizations. 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 2015 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.
Page 6
APACHE CORPORATION ANNOUNCES THIRD-QUARTER 2016 FINANCIAL AND OPERATIONAL RESULTS
PAGE 7 of 8
Cautionary note to investors
The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable, and possible reserves that meet the SECs definitions for such terms. Apache may use certain terms in this earnings release, such as resources, potential resources, resource potential, estimated net reserves, recoverable reserves, and other similar terms that the SEC guidelines strictly prohibit Apache from including in filings with the SEC. Such terms do not take into account the certainty of resource recovery, which is contingent on exploration success, technical improvements in drilling access, commerciality and other factors, and are therefore not indicative of expected future resource recovery and should not be relied upon. Investors are urged to consider carefully the disclosure in Apaches Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2015, available from Apache at www.apachecorp.com or by writing Apache at: 2000 Post Oak Blvd., Suite 100, Houston, TX 77056 (Attn: Corporate Secretary). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SECs website at www.sec.gov.
Page 7
APACHE CORPORATION ANNOUNCES THIRD-QUARTER 2016 FINANCIAL AND OPERATIONAL RESULTS
PAGE 8 of 8
Contacts
Investor: | (281) 302-2286 Gary Clark | |
Media: | (713) 296-7189 Castlen Kennedy | |
Website: www.apachecorp.com |
-end-
Page 8
APACHE CORPORATION
STATEMENT OF CONSOLIDATED OPERATIONS
(Unaudited)
(In millions, except per share data)
For the Quarter Ended September 30, |
For the Nine Months Ended September 30, |
|||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
REVENUES AND OTHER: |
||||||||||||||||
Oil revenues |
$ | 1,117 | $ | 1,238 | $ | 3,057 | $ | 4,149 | ||||||||
Gas revenues |
263 | 318 | 695 | 941 | ||||||||||||
NGL revenues |
59 | 50 | 160 | 166 | ||||||||||||
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Oil and gas production revenues |
1,439 | 1,606 | 3,912 | 5,256 | ||||||||||||
Other |
(6 | ) | (75 | ) | (30 | ) | (53 | ) | ||||||||
Gain (loss) on divestiture |
5 | (5 | ) | 21 | 204 | |||||||||||
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1,438 | 1,526 | 3,903 | 5,407 | |||||||||||||
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COSTS AND EXPENSES: |
||||||||||||||||
Lease operating expenses |
382 | 450 | 1,119 | 1,398 | ||||||||||||
Gathering and transportation |
51 | 58 | 155 | 163 | ||||||||||||
Taxes other than income |
9 | 104 | 85 | 232 | ||||||||||||
Exploration expense |
161 | 223 | 347 | 706 | ||||||||||||
General and administrative |
102 | 89 | 298 | 284 | ||||||||||||
Depreciation, depletion and amortization |
||||||||||||||||
Oil and gas property and equipment |
610 | 793 | 1,875 | 2,247 | ||||||||||||
Other assets |
38 | 79 | 120 | 245 | ||||||||||||
Asset retirement obligation accretion |
40 | 37 | 116 | 109 | ||||||||||||
Impairments |
836 | 3,903 | 1,009 | 6,327 | ||||||||||||
Transaction, reorganization & separation costs |
12 | | 36 | 120 | ||||||||||||
Financing costs, net |
102 | 160 | 311 | 401 | ||||||||||||
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2,343 | 5,896 | 5,471 | 12,232 | |||||||||||||
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INCOME (LOSS) BEFORE INCOME TAXES |
(905 | ) | (4,370 | ) | (1,568 | ) | (6,825 | ) | ||||||||
Current income tax provision (benefit) |
150 | (270 | ) | 284 | 578 | |||||||||||
Deferred income tax provision (benefit) |
(529 | ) | 19 | (755 | ) | (1,299 | ) | |||||||||
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|||||||||
INCOME (LOSS) FROM CONTINUING OPS INCLUDING NONCONTROLLING INTEREST |
(526 | ) | (4,119 | ) | (1,097 | ) | (6,104 | ) | ||||||||
Income (Loss) from discontinued operations, net of tax |
(33 | ) | (17 | ) | (33 | ) | (135 | ) | ||||||||
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INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST |
(559 | ) | (4,136 | ) | (1,130 | ) | (6,239 | ) | ||||||||
Net income attributable to noncontrolling interest |
48 | 7 | 93 | 98 | ||||||||||||
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INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK |
$ | (607 | ) | $ | (4,143 | ) | $ | (1,223 | ) | $ | (6,337 | ) | ||||
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NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS |
||||||||||||||||
Net income (loss) from continuing operations attributable to common shareholders |
$ | (574 | ) | $ | (4,126 | ) | $ | (1,190 | ) | $ | (6,202 | ) | ||||
Net income (loss) from discontinued operations |
(33 | ) | (17 | ) | (33 | ) | (135 | ) | ||||||||
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Net income (loss) attributable to common shareholders |
$ | (607 | ) | $ | (4,143 | ) | $ | (1,223 | ) | $ | (6,337 | ) | ||||
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BASIC NET INCOME (LOSS) PER COMMON SHARE: |
||||||||||||||||
Basic net income (loss) from continuing operations per share |
$ | (1.51 | ) | $ | (10.91 | ) | $ | (3.14 | ) | $ | (16.42 | ) | ||||
Basic net income (loss) from discontinued operations per share |
(0.09 | ) | (0.04 | ) | (0.08 | ) | (0.36 | ) | ||||||||
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Basic net income (loss) per share |
$ | (1.60 | ) | $ | (10.95 | ) | $ | (3.22 | ) | $ | (16.78 | ) | ||||
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DILUTED NET INCOME (LOSS) PER COMMON SHARE: |
||||||||||||||||
Diluted net income (loss) from continuing operations per share |
$ | (1.51 | ) | $ | (10.91 | ) | $ | (3.14 | ) | $ | (16.42 | ) | ||||
Diluted net income (loss) from discontinued operations per share |
(0.09 | ) | (0.04 | ) | (0.08 | ) | (0.36 | ) | ||||||||
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Diluted net income (loss) per share |
$ | (1.60 | ) | $ | (10.95 | ) | $ | (3.22 | ) | $ | (16.78 | ) | ||||
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WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: |
||||||||||||||||
Basic |
380 | 378 | 379 | 378 | ||||||||||||
Diluted |
380 | 378 | 379 | 378 | ||||||||||||
DIVIDENDS DECLARED PER COMMON SHARE |
$ | 0.25 | $ | 0.25 | $ | 0.75 | $ | 0.75 |
NOTE: All amounts included herein are stated under successful efforts.
Page 1
APACHE CORPORATION
PRODUCTION INFORMATION
For the Quarter Ended | % Change | For the Nine Months Ended | ||||||||||||||||||||||||||
September 30, 2016 |
June 30, 2016 |
September 30, 2015 |
3Q16 to 2Q16 |
3Q16 to 3Q15 |
September 30, 2016 |
September 30, 2015 |
||||||||||||||||||||||
OIL VOLUMEBarrels per day |
||||||||||||||||||||||||||||
Permian |
79,751 | 86,430 | 93,048 | -8 | % | -14 | % | 86,462 | 95,103 | |||||||||||||||||||
MidContinent/Gulf Coast Region |
13,727 | 15,959 | 21,486 | -14 | % | -36 | % | 16,025 | 24,052 | |||||||||||||||||||
Canada |
12,619 | 12,917 | 14,795 | -2 | % | -15 | % | 13,331 | 15,812 | |||||||||||||||||||
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N.A. Onshore |
106,097 | 115,306 | 129,329 | -8 | % | -18 | % | 115,818 | 134,967 | |||||||||||||||||||
Gulf of Mexico |
4,791 | 4,352 | 5,878 | 10 | % | -18 | % | 4,437 | 5,739 | |||||||||||||||||||
Egypt (1, 2) |
110,809 | 106,223 | 97,173 | 4 | % | 14 | % | 105,118 | 98,712 | |||||||||||||||||||
North Sea |
49,192 | 59,124 | 58,330 | -17 | % | -16 | % | 55,071 | 59,622 | |||||||||||||||||||
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International & GOM (1) |
164,792 | 169,699 | 161,381 | -3 | % | 2 | % | 164,626 | 164,073 | |||||||||||||||||||
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Total (1) |
270,889 | 285,005 | 290,710 | -5 | % | -7 | % | 280,444 | 299,040 | |||||||||||||||||||
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TOTAL LIQUIDSBarrels per day |
||||||||||||||||||||||||||||
Permian |
119,680 | 125,118 | 128,973 | -4 | % | -7 | % | 125,178 | 128,178 | |||||||||||||||||||
MidContinent/Gulf Coast Region |
29,565 | 32,578 | 39,808 | -9 | % | -26 | % | 32,777 | 42,786 | |||||||||||||||||||
Canada |
18,658 | 18,009 | 21,235 | 4 | % | -12 | % | 19,210 | 21,853 | |||||||||||||||||||
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N.A. Onshore |
167,903 | 175,705 | 190,016 | -4 | % | -12 | % | 177,165 | 192,817 | |||||||||||||||||||
Gulf of Mexico |
5,379 | 4,677 | 6,582 | 15 | % | -18 | % | 4,866 | 6,331 | |||||||||||||||||||
Egypt (1, 2) |
111,933 | 107,173 | 98,272 | 4 | % | 14 | % | 106,238 | 99,881 | |||||||||||||||||||
North Sea |
50,889 | 60,687 | 59,770 | -16 | % | -15 | % | 56,628 | 60,675 | |||||||||||||||||||
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International & GOM (1) |
168,201 | 172,537 | 164,624 | -3 | % | 2 | % | 167,732 | 166,887 | |||||||||||||||||||
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Total (1) |
336,104 | 348,242 | 354,640 | -3 | % | -5 | % | 344,897 | 359,704 | |||||||||||||||||||
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NATURAL GAS VOLUMEMcf per day |
||||||||||||||||||||||||||||
Permian |
237,313 | 242,019 | 246,141 | -2 | % | -4 | % | 240,253 | 232,603 | |||||||||||||||||||
MidContinent/Gulf Coast Region |
141,273 | 148,841 | 179,578 | -5 | % | -21 | % | 148,336 | 189,823 | |||||||||||||||||||
Canada |
233,635 | 246,830 | 270,027 | -5 | % | -13 | % | 248,912 | 280,120 | |||||||||||||||||||
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N.A. Onshore |
612,221 | 637,690 | 695,746 | -4 | % | -12 | % | 637,501 | 702,546 | |||||||||||||||||||
Gulf of Mexico |
16,476 | 17,266 | 19,520 | -5 | % | -16 | % | 15,693 | 20,224 | |||||||||||||||||||
Egypt (1, 2) |
405,863 | 408,013 | 399,434 | -1 | % | 2 | % | 403,832 | 378,367 | |||||||||||||||||||
North Sea |
69,509 | 60,318 | 81,392 | 15 | % | -15 | % | 66,884 | 62,848 | |||||||||||||||||||
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International & GOM (1) |
491,848 | 485,597 | 500,346 | 1 | % | -2 | % | 486,409 | 461,439 | |||||||||||||||||||
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Total (1) |
1,104,069 | 1,123,287 | 1,196,092 | -2 | % | -8 | % | 1,123,910 | 1,163,985 | |||||||||||||||||||
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BOE per day |
||||||||||||||||||||||||||||
Permian |
159,232 | 165,455 | 169,997 | -4 | % | -6 | % | 165,221 | 166,945 | |||||||||||||||||||
MidContinent/Gulf Coast Region |
53,111 | 57,384 | 69,737 | -7 | % | -24 | % | 57,500 | 74,423 | |||||||||||||||||||
Canada |
57,597 | 59,148 | 66,239 | -3 | % | -13 | % | 60,695 | 68,541 | |||||||||||||||||||
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N.A. Onshore |
269,940 | 281,987 | 305,973 | -4 | % | -12 | % | 283,416 | 309,909 | |||||||||||||||||||
Gulf of Mexico |
8,125 | 7,554 | 9,835 | 8 | % | -17 | % | 7,481 | 9,701 | |||||||||||||||||||
Egypt (1, 2) |
179,575 | 175,175 | 164,845 | 3 | % | 9 | % | 173,544 | 158,498 | |||||||||||||||||||
North Sea |
62,475 | 70,740 | 73,335 | -12 | % | -15 | % | 67,775 | 71,149 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
International & GOM (1) |
250,175 | 253,469 | 248,015 | -1 | % | 1 | % | 248,800 | 239,348 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total (1) |
520,115 | 535,456 | 553,988 | -3 | % | -6 | % | 532,216 | 549,257 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total excluding noncontrolling interests |
460,363 | 477,110 | 502,040 | -4 | % | -8 | % | 474,447 | 496,169 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
(1) Includes net production volumes attributed to our noncontrolling partner in Egypt below: |
| |||||||||||||||||||||||||||
Oil (b/d) |
36,839 | 35,357 | 30,671 | 34,964 | 31,530 | |||||||||||||||||||||||
Gas (Mcf/d) |
135,233 | 136,029 | 125,657 | 134,591 | 127,186 | |||||||||||||||||||||||
NGL (b/d) |
374 | 317 | 334 | 373 | 360 | |||||||||||||||||||||||
(2) Egypt Gross ProductionBOE per day |
350,366 | 349,689 | 362,073 | 0 | % | -3 | % | 351,015 | 351,812 | |||||||||||||||||||
Discontinued Operations: |
||||||||||||||||||||||||||||
Oil (b/d) |
| | | | 10,175 | |||||||||||||||||||||||
Gas (Mcf/d) |
| | | | 125,831 | |||||||||||||||||||||||
NGL (b/d) |
| | | | | |||||||||||||||||||||||
BOE/d |
| | | | 31,146 |
Page 2
APACHE CORPORATION
ADJUSTED PRODUCTION INFORMATION
Adjusted production excludes certain items that management believes affect the comparability of operating results for the periods presented. Adjusted production excludes production attributable to 1) divested assets, 2) noncontrolling interest in Egypt, and 3) Egypt tax barrels. Management uses adjusted production to evaluate the companys operational trends and performance and believes it is useful to investors and other third parties.
For the Quarter Ended | % Change | For the Nine Months Ended | ||||||||||||||||||||||||||
September 30, 2016 |
June 30, 2016 |
September 30, 2015 |
3Q16 to 2Q16 |
3Q16 to 3Q15 |
September 30, 2016 |
September 30, 2015 |
||||||||||||||||||||||
OIL VOLUMEBarrels per day |
||||||||||||||||||||||||||||
Permian |
79,751 | 86,430 | 93,048 | -8 | % | -14 | % | 86,462 | 95,103 | |||||||||||||||||||
MidContinent/Gulf Coast Region |
13,727 | 15,959 | 21,441 | -14 | % | -36 | % | 16,025 | 24,036 | |||||||||||||||||||
Canada |
12,613 | 12,987 | 14,795 | -3 | % | -15 | % | 13,333 | 15,789 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
N.A. Onshore |
106,091 | 115,376 | 129,284 | -8 | % | -18 | % | 115,820 | 134,928 | |||||||||||||||||||
Gulf of Mexico |
4,791 | 4,352 | 5,878 | 10 | % | -18 | % | 4,437 | 5,739 | |||||||||||||||||||
Egypt |
57,476 | 57,955 | 56,972 | -1 | % | 1 | % | 58,439 | 55,470 | |||||||||||||||||||
North Sea |
49,192 | 59,124 | 58,330 | -17 | % | -16 | % | 55,071 | 58,765 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
International & GOM |
111,459 | 121,431 | 121,180 | -8 | % | -8 | % | 117,947 | 119,974 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total |
217,550 | 236,807 | 250,464 | -8 | % | -13 | % | 233,767 | 254,902 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
TOTAL LIQUIDSBarrels per day |
||||||||||||||||||||||||||||
Permian |
119,680 | 125,118 | 128,973 | -4 | % | -7 | % | 125,178 | 128,178 | |||||||||||||||||||
MidContinent/Gulf Coast Region |
29,565 | 32,578 | 39,763 | -9 | % | -26 | % | 32,777 | 42,742 | |||||||||||||||||||
Canada |
18,595 | 18,133 | 21,238 | 3 | % | -12 | % | 19,204 | 21,819 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
N.A. Onshore |
167,840 | 175,829 | 189,974 | -5 | % | -12 | % | 177,159 | 192,739 | |||||||||||||||||||
Gulf of Mexico |
5,379 | 4,677 | 6,582 | 15 | % | -18 | % | 4,866 | 6,331 | |||||||||||||||||||
Egypt |
58,107 | 58,565 | 57,597 | -1 | % | 1 | % | 59,139 | 56,104 | |||||||||||||||||||
North Sea |
50,889 | 60,687 | 59,770 | -16 | % | -15 | % | 56,628 | 59,794 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
International & GOM |
114,375 | 123,929 | 123,949 | -8 | % | -8 | % | 120,633 | 122,229 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total |
282,215 | 299,758 | 313,923 | -6 | % | -10 | % | 297,792 | 314,968 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
NATURAL GAS VOLUMEMcf per day |
||||||||||||||||||||||||||||
Permian |
237,313 | 242,019 | 246,141 | -2 | % | -4 | % | 240,253 | 232,603 | |||||||||||||||||||
MidContinent/Gulf Coast Region |
141,273 | 148,841 | 179,980 | -5 | % | -22 | % | 148,336 | 190,535 | |||||||||||||||||||
Canada |
233,505 | 245,682 | 269,774 | -5 | % | -13 | % | 248,426 | 279,257 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
N.A. Onshore |
612,091 | 636,542 | 695,895 | -4 | % | -12 | % | 637,015 | 702,395 | |||||||||||||||||||
Gulf of Mexico |
16,476 | 17,266 | 19,520 | -5 | % | -16 | % | 15,693 | 20,224 | |||||||||||||||||||
Egypt |
236,740 | 251,983 | 238,104 | -6 | % | -1 | % | 248,094 | 231,636 | |||||||||||||||||||
North Sea |
69,509 | 60,318 | 81,392 | 15 | % | -15 | % | 66,884 | 62,186 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
International & GOM |
322,725 | 329,567 | 339,016 | -2 | % | -5 | % | 330,671 | 314,046 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total |
934,816 | 966,109 | 1,034,911 | -3 | % | -10 | % | 967,686 | 1,016,441 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
BOE per day |
||||||||||||||||||||||||||||
Permian |
159,232 | 165,455 | 169,997 | -4 | % | -6 | % | 165,221 | 166,945 | |||||||||||||||||||
MidContinent/Gulf Coast Region |
53,111 | 57,384 | 69,771 | -7 | % | -24 | % | 57,500 | 74,497 | |||||||||||||||||||
Canada |
57,513 | 59,079 | 66,190 | -3 | % | -13 | % | 60,608 | 68,362 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
N.A. Onshore |
269,856 | 281,918 | 305,958 | -4 | % | -12 | % | 283,329 | 309,804 | |||||||||||||||||||
Gulf of Mexico |
8,125 | 7,554 | 9,835 | 8 | % | -17 | % | 7,481 | 9,701 | |||||||||||||||||||
Egypt |
97,564 | 100,562 | 97,281 | -3 | % | 0 | % | 100,488 | 94,710 | |||||||||||||||||||
North Sea |
62,475 | 70,740 | 73,335 | -12 | % | -15 | % | 67,775 | 70,159 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
International & GOM |
168,164 | 178,856 | 180,451 | -6 | % | -7 | % | 175,744 | 174,570 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total |
438,020 | 460,774 | 486,409 | -5 | % | -10 | % | 459,073 | 484,374 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Page 3
APACHE CORPORATION
PRICE INFORMATION
For the Quarter Ended | For the Nine Months Ended | |||||||||||||||||||
September 30, 2016 |
June 30, 2016 |
September 30, 2015 |
September 30, 2016 |
September 30, 2015 |
||||||||||||||||
AVERAGE OIL PRICE PER BARREL |
||||||||||||||||||||
Permian |
$ | 41.85 | $ | 41.82 | $ | 44.87 | $ | 37.63 | $ | 47.78 | ||||||||||
MidContinent/Gulf Coast Region |
41.98 | 42.17 | 42.67 | 36.96 | 47.49 | |||||||||||||||
Canada |
40.17 | 39.39 | 40.07 | 36.04 | 44.00 | |||||||||||||||
N.A. Onshore |
41.67 | 41.65 | 43.98 | 37.36 | 47.28 | |||||||||||||||
Gulf of Mexico |
41.63 | 41.14 | 45.30 | 37.75 | 49.42 | |||||||||||||||
Egypt |
46.54 | 45.42 | 47.63 | 41.97 | 53.59 | |||||||||||||||
North Sea |
45.47 | 45.56 | 49.46 | 41.28 | 54.42 | |||||||||||||||
Total |
44.35 | 43.14 | 46.30 | 39.86 | 50.82 | |||||||||||||||
AVERAGE NATURAL GAS PRICE PER MCF |
||||||||||||||||||||
Permian |
$ | 2.60 | $ | 1.72 | $ | 2.61 | $ | 2.03 | $ | 2.43 | ||||||||||
MidContinent/Gulf Coast Region |
2.79 | 1.71 | 2.49 | 2.05 | 2.58 | |||||||||||||||
Canada |
1.71 | 1.01 | 2.39 | 1.47 | 2.44 | |||||||||||||||
N.A. Onshore |
2.31 | 1.43 | 2.46 | 1.80 | 2.45 | |||||||||||||||
Gulf of Mexico |
3.08 | 2.04 | 2.75 | 2.42 | 2.76 | |||||||||||||||
Egypt |
2.75 | 2.72 | 2.86 | 2.69 | 2.90 | |||||||||||||||
North Sea |
4.14 | 3.95 | 6.41 | 4.12 | 6.95 | |||||||||||||||
Total |
2.59 | 2.04 | 2.89 | 2.26 | 2.85 | |||||||||||||||
AVERAGE NGL PRICE PER BARREL |
||||||||||||||||||||
Permian |
$ | 10.42 | $ | 10.00 | $ | 8.51 | $ | 9.08 | $ | 10.00 | ||||||||||
MidContinent/Gulf Coast Region |
7.38 | 9.32 | 7.47 | 7.67 | 9.05 | |||||||||||||||
Canada |
6.10 | 8.54 | 3.23 | 6.61 | 6.12 | |||||||||||||||
N.A. Onshore |
9.22 | 9.69 | 7.63 | 8.46 | 9.29 | |||||||||||||||
Gulf of Mexico |
12.93 | NM | 11.44 | 8.49 | 13.12 | |||||||||||||||
Egypt |
28.12 | 27.68 | 26.94 | 27.54 | 30.49 | |||||||||||||||
North Sea |
24.45 | 22.25 | 25.61 | 21.82 | 26.76 | |||||||||||||||
Total |
9.97 | 10.22 | 8.41 | 9.11 | 10.04 | |||||||||||||||
Discontinued Operations: |
||||||||||||||||||||
Oil price ($/Bbl) |
$ | | $ | | $ | | $ | | $ | 49.76 | ||||||||||
Gas price ($/Mcf) |
| | | | 4.07 | |||||||||||||||
NGL price ($/Bbl) |
| | | | |
Page 4
APACHE CORPORATION
SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY EXPLORATION EXPENSE INFORMATION
(Unaudited)
(In millions)
For the Quarter Ended September 30, |
For the Nine Months Ended September 30, |
|||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Unproved leasehold impairments |
$ | 114 | $ | 199 | $ | 222 | $ | 515 | ||||||||
Dry hole expense |
7 | | 38 | 69 | ||||||||||||
Geological and geophysical expense |
21 | 8 | 30 | 55 | ||||||||||||
Exploration overhead and other |
19 | 16 | 57 | 67 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 161 | $ | 223 | $ | 347 | $ | 706 | |||||||||
|
|
|
|
|
|
|
|
SUMMARY CASH FLOW INFORMATION
(Unaudited)
(In millions)
For the Quarter Ended September 30, |
For the Nine Months Ended September 30, |
|||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net cash provided by continuing operating activities |
$ | 651 | $ | 757 | $ | 1,634 | $ | 2,380 | ||||||||
Net cash provided by (used in) discontinued operations |
| (46 | ) | | 113 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash provided by operating activities |
651 | 711 | 1,634 | 2,493 | ||||||||||||
Net cash used in investing activities |
(396 | ) | (927 | ) | (1,362 | ) | (3,026 | ) | ||||||||
Net cash provided by discontinued operations |
| | | 4,372 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net cash provided by (used in) investing activities |
(396 | ) | (927 | ) | (1,362 | ) | 1,346 | |||||||||
Net cash used in financing activities |
(226 | ) | (1,079 | ) | (509 | ) | (2,863 | ) |
NOTE: All amounts included herein are stated under successful efforts.
Page 5
APACHE CORPORATION
SUPPLEMENTAL FINANCIAL INFORMATION
SUMMARY BALANCE SHEET INFORMATION
(Unaudited)
(In millions)
September 30, 2016 |
December 31, 2015 |
|||||||
Cash and Cash Equivalents |
$ | 1,230 | $ | 1,467 | ||||
Other Current Assets |
2,042 | 2,285 | ||||||
Property and Equipment, net |
19,462 | 20,838 | ||||||
Other Assets |
415 | 910 | ||||||
|
|
|
|
|||||
Total Assets |
$ | 23,149 | $ | 25,500 | ||||
|
|
|
|
|||||
Current Liabilities |
$ | 1,628 | $ | 1,841 | ||||
Long-Term Debt |
8,721 | 8,716 | ||||||
Deferred Credits and Other Noncurrent Liabilities |
4,851 | 5,453 | ||||||
Apache Shareholders Equity |
6,469 | 7,888 | ||||||
Noncontrolling interest |
1,480 | 1,602 | ||||||
|
|
|
|
|||||
Total Liabilities and Shareholders Equity |
$ | 23,149 | $ | 25,500 | ||||
|
|
|
|
|||||
Common shares outstanding at end of period |
379 | 377 |
SUMMARY OF COSTS INCURRED AND GTP CAPITAL INVESTMENTS
(Unaudited)
(In millions)
For the Quarter Ended September 30, |
For the Nine Months Ended September 30, |
|||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Costs Incurred in Oil and Gas Property: |
||||||||||||||||
Acquisitions |
||||||||||||||||
Proved |
$ | 2 | $ | 2 | $ | 43 | $ | 2 | ||||||||
Unproved |
52 | 124 | 160 | 252 | ||||||||||||
Exploration and Development |
408 | 807 | 1,308 | 3,140 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
462 | 933 | 1,511 | 3,394 | |||||||||||||
GTP Capital Investments: |
||||||||||||||||
GTP Facilities |
31 | 13 | 31 | 273 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Costs Incurred and GTP Capital Investments |
$ | 493 | $ | 946 | $ | 1,542 | $ | 3,667 | ||||||||
|
|
|
|
|
|
|
|
NOTE: All amounts included herein are stated under successful efforts.
Page 6
APACHE CORPORATION
NON-GAAP FINANCIAL MEASURES
(In millions, except per share data)
Reconciliation of net cash provided by continuing operating activities to adjusted EBITDAX
Management believes EBITDAX, or earnings before income tax expense, interest expense, depreciation, amortization and exploration expense is a widely accepted financial indicator, and useful for investors, to assess a companys ability to incur and service debt, fund capital expenditures, and make distributions to shareholders. We define adjusted EBITDAX, a non-GAAP financial measure, as EBITDAX adjusted for certain items presented in the accompanying reconciliation. Management uses adjusted EBITDAX to evaluate our ability to fund our capital expenditures, debt services and other operational requirements and to compare our results from period to period by eliminating the impact of certain items that management does not consider to be representative of the Companys on-going operations. Management also believes adjusted EBITDAX facilitates investors and analysts in evaluating and comparing EBITDAX from period to period by eliminating differences caused by the existence and timing of certain operating expenses that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted EBITDAX may not be comparable to similar measures of other companies in our industry.
For the Quarter Ended September 30, |
For the Nine Months Ended September 30, |
|||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net cash provided by continuing operating activities |
$ | 651 | $ | 757 | $ | 1,634 | $ | 2,380 | ||||||||
Adjustments: |
||||||||||||||||
Exploration expense, excluding dry hole expense and unproved leasehold impairments |
40 | 24 | 87 | 122 | ||||||||||||
Current income tax provision (benefit) |
150 | (270 | ) | 284 | 578 | |||||||||||
Other adjustments to reconcile net loss to net cash provided by operating activities |
(35 | ) | (54 | ) | (126 | ) | (80 | ) | ||||||||
Changes in operating assets and liabilities |
(31 | ) | 213 | (1 | ) | (395 | ) | |||||||||
Financing costs, net |
102 | 160 | 311 | 401 | ||||||||||||
Transaction, reorganization & separation costs |
12 | | 36 | 120 | ||||||||||||
Contract termination charges |
7 | 41 | 10 | 84 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDAX (Non-GAAP) |
$ | 896 | $ | 871 | $ | 2,235 | $ | 3,210 | ||||||||
|
|
|
|
|
|
|
|
Reconciliation of income attributable to common stock to adjusted earnings
Our presentation of adjusted earnings and adjusted earnings per share are non-GAAP measures because they exclude the effect of certain items included in Income Attributable to Common Stock. Management believes that adjusted earnings and adjusted earnings per share provides relevant and useful information, which is widely used by analysts, investors and competitors in our industry as well as by our management in assessing the Companys operational trends and comparability of results to our peers.
Management uses adjusted earnings and adjusted earnings per share to evaluate our operating and financial performance because it eliminates the impact of certain items that management does not consider to be representative of the Companys on-going business operations. As a performance measure, adjusted earnings may be useful to investors in facilitating comparisons to others in the Companys industry because certain items can vary substantially in the oil and gas industry from company to company depending upon accounting methods, book value of assets, capital structure and asset sales and other divestitures, among other factors. Management believes excluding these items facilitates investors and analysts in evaluating and comparing the underlying operating and financial performance of our business from period to period by eliminating differences caused by the existence and timing of certain expense and income items that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted earnings and adjusted earnings per share may not be comparable to similar measures of other companies in our industry.
For the Quarter Ended September 30, 2016 |
For the Quarter Ended September 30, 2015 |
|||||||||||||||||||||||||||||||
Before Tax |
Tax Impact |
After Tax |
Diluted EPS |
Before Tax |
Tax Impact |
After Tax |
Diluted EPS |
|||||||||||||||||||||||||
Income (Loss) Attributable to Common Stock (GAAP) |
$ | (986 | ) | $ | 379 | $ | (607 | ) | (1.60 | ) | $ | (4,394 | ) | $ | 251 | $ | (4,143 | ) | (10.95 | ) | ||||||||||||
Adjustments: * |
||||||||||||||||||||||||||||||||
Asset impairments |
951 | (323 | ) | 628 | 1.65 | 4,076 | (1,369 | ) | 2,707 | 7.15 | ||||||||||||||||||||||
Transaction, reorganization & separation costs |
12 | (4 | ) | 8 | 0.02 | 1 | | 1 | | |||||||||||||||||||||||
Discontinued operations |
33 | | 33 | 0.08 | 17 | | 17 | 0.05 | ||||||||||||||||||||||||
Contract termination charges |
7 | (3 | ) | 4 | 0.01 | 41 | (15 | ) | 26 | 0.07 | ||||||||||||||||||||||
Loss on extinguishment of debt |
| | | | 39 | (14 | ) | 25 | 0.07 | |||||||||||||||||||||||
Elimination of PRT liability |
(28 | ) | 11 | (17 | ) | (0.04 | ) | | | | | |||||||||||||||||||||
(Gain) / loss on divestitures |
(5 | ) | 2 | (3 | ) | | 5 | (2 | ) | 3 | 0.01 | |||||||||||||||||||||
Valuation allowance and other tax adjustments |
| (58 | ) | (58 | ) | (0.15 | ) | | 1,331 | 1,331 | 3.51 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Adjusted Earnings (Non-GAAP) |
$ | (16 | ) | $ | 4 | $ | (12 | ) | (0.03 | ) | $ | (215 | ) | $ | 182 | $ | (33 | ) | (0.09 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Nine Months Ended September 30, 2016 |
Nine Months Ended September 30, 2015 |
|||||||||||||||||||||||||||||||
Before Tax |
Tax Impact |
After Tax |
Diluted EPS |
Before Tax |
Tax Impact |
After Tax |
Diluted EPS |
|||||||||||||||||||||||||
Income (Loss) Attributable to Common Stock (GAAP) |
$ | (1,694 | ) | $ | 471 | $ | (1,223 | ) | (3.22 | ) | $ | (7,058 | ) | $ | 721 | $ | (6,337 | ) | (16.78 | ) | ||||||||||||
Adjustments: * |
||||||||||||||||||||||||||||||||
Asset impairments |
1,232 | (437 | ) | 795 | 2.09 | 6,812 | (2,289 | ) | 4,523 | 11.95 | ||||||||||||||||||||||
Transaction, reorganization & separation costs |
36 | (12 | ) | 24 | 0.06 | 120 | (41 | ) | 79 | 0.21 | ||||||||||||||||||||||
Discontinued operations |
33 | | 33 | 0.08 | 135 | | 135 | 0.36 | ||||||||||||||||||||||||
Contract termination charges |
10 | (3 | ) | 7 | 0.02 | 84 | (30 | ) | 54 | 0.16 | ||||||||||||||||||||||
Loss on extinguishment of debt |
| | | | 39 | (14 | ) | 25 | 0.07 | |||||||||||||||||||||||
(Gain) / loss on divestitures |
(21 | ) | 6 | (15 | ) | (0.04 | ) | (204 | ) | 73 | (131 | ) | (0.34 | ) | ||||||||||||||||||
Valuation allowance and other tax adjustments |
| (29 | ) | (29 | ) | (0.07 | ) | | 1,718 | 1,718 | 4.54 | |||||||||||||||||||||
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Adjusted Earnings (Non-GAAP) |
$ | (404 | ) | $ | (4 | ) | $ | (408 | ) | (1.08 | ) | $ | (72 | ) | $ | 138 | $ | 66 | 0.17 | |||||||||||||
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* | The income tax effect of the reconciling items are calculated based on the statutory rate of the jurisdiction in which the discrete item resides. |
NOTE: All amounts included herein are stated under successful efforts.
Page 7
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