Apache's 14% Production Growth Lifts Earnings 50% to Record $4.5 Billion in 2011
HOUSTON, Feb. 16, 2012 /PRNewswire/ -- Apache Corporation
today reported that record production and strong oil prices combined to generate record full-year 2011 earnings of $4.5 billion or $11.47 per diluted common share, up 50 percent from $3 billion or $8.46 per share in 2010.Production increased 14 percent to 748,000 barrels of oil equivalent (boe) per day. Cash from operations before changes in operating assets and liabilities* rose 39 percent to $10.2 billion. Excluding certain items that management believes affect the comparability of operating results, Apache reported adjusted earnings* of $4.7 billion or $11.83 per share, up from $3.2 billion or $8.94 per share in 2010.
'Apache's balanced portfolio and returns focus fueled an outstanding year in 2011, setting records for production, earnings, revenues, proved reserves and cash flow,' said G. Steven Farris, chairman and chief executive officer.
In the fourth quarter, earnings totaled $1.2 billion or $2.98 per diluted share, up from $670 million or $1.77 per share in the prior-year period. Production totaled 759,000 boe per day, up 4 percent from the year-earlier quarter, and cash from operations before changes in operating assets and liabilities* totaled $2.7 billion, up from $2 billion in the year-earlier period. Apache reported fourth-quarter adjusted earnings* of $1.2 billion or $2.94 per share.
Apache's oil and natural gas liquids production was 50 percent of total volume in 2011 but contributed nearly 80 percent of revenues because of the wide gap between global crude oil and North American natural gas prices. Apache's results also benefited from the price differentials between oil prices in basins linked to the West Texas Intermediate benchmark and higher prices for oil produced in the Gulf of Mexico, Egypt, Australia and the North Sea that represents approximately 76 percent of its crude production.
Apache ended 2011 with proved reserves of 3 billion boe, up 1 percent from 2010. Apache's 2011 production was 273 million boe (MMboe). The company added 422 MMboe, or 155 percent of production, through extensions, discoveries and acquisitions. Divestitures and revisions totaled 113 MMboe. Apache spent $9.1 billion on exploration, development and acquisitions capital, excluding asset retirement obligations and capitalized interest.*
During 2011, with the continued downward pressure on North American natural gas prices, Apache transitioned its North American drilling program to oily and liquids-rich targets in the Permian and Anadarko basins, the Gulf of Mexico and Canada.
Apache also sanctioned several long-lead-time projects in Australia that are expected to contribute to future growth, including the Julimar/Wheatstone LNG project and the Macedon, Coniston and Balnaves developments. The company also sanctioned development of the Anadarko Petroleum-operated Lucius unit, a world-class discovery in the Keathley Canyon area of the deepwater Gulf of Mexico.
Additional drilling is planned in 2012 in the North Sea, where Apache completed its acquisition of Mobil North Sea Limited, including the operated Beryl, Nevis, Ness, Nevis South, Skene and Buckland fields. First production from the Bacchus development near the Forties Field is planned in March.
Apache plans to spend $9.5 billion of drilling capital in 2012, up from $8 billion in 2011, Farris said. 'We will live within our cash flow, and we will review capital allocations quarterly.
'We are planning to drill up to 20-30 percent more wells in 2012 than in 2011, when we drilled approximately 1,100 gross wells,' he said. 'More than half of the wells planned in 2012 will be drilled in the Permian and Anadarko Basins to exploit stacked oil and liquids-rich pay opportunities in these prolific basins.'
Apache also plans active exploratory drilling programs in Australia, the deepwater Gulf of Mexico, Egypt, Alaska, Kenya and New Zealand.
'We are in a good position to deliver profitable growth in 2012 and future years,' Farris said. 'Based on our current capital program, we anticipate production will increase in the range of 7-13 percent in 2012.'
Apache recently announced that it has increased the regular quarterly cash dividend on the company's common shares by 13 percent to 17 cents per share. 'With our balanced portfolio and deep inventory of drilling locations and development projects, we have confidence in Apache's future,' Farris said.
NOTE: Apache will conduct a conference call to discuss its fourth-quarter and full-year 2011 results at 1 p.m. Central time on Thursday, Feb. 16. The conference call will be webcast from Apache's website, www.apachecorp.com. The webcast replay will be archived on Apache's website. The conference call will be available for delayed playback by telephone for one week beginning at approximately 4 p.m. on Feb. 16. To access the telephone playback, dial 855-859-2056 or 404-537-3406 for international calls. The conference access code is 42312218.
*Adjusted earnings, cash from operations before changes in operating assets and liabilities, and exploration, development and acquisitions capital, excluding asset retirement obligations and capitalized interest, are non-GAAP measures. Please see reconciliations below. For supplemental 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.
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 LNG projects. 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 2010 Form 10-K as amended by Amendment No. 1 to our annual report on Form 10-K/A 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 For the Year
Ended December 31, Ended December 31,
------------------ ------------------
2011 2010 2011 2010
---- ---- ---- ----
REVENUES AND OTHER:
Oil and gas
production revenues $4,295 $3,474 $16,810 $12,183
Other 2 (40) 78 (91)
--- --- --- ---
4,297 3,434 16,888 12,092
----- ----- ------ ------
COSTS AND EXPENSES:
Depreciation,
depletion and
amortization
Recurring 1,111 928 4,095 3,083
Additional 63 - 109 -
Asset retirement
obligation
accretion 40 37 154 111
Lease operating
expenses 659 639 2,605 2,032
Gathering and
transportation 75 52 296 178
Taxes other than
income 236 168 899 690
General and
administrative 132 120 459 380
Merger, acquisitions
& transition 5 167 20 183
Financing costs, net 35 55 158 229
2,356 2,166 8,795 6,886
----- ----- ----- -----
INCOME BEFORE INCOME
TAXES 1,941 1,268 8,093 5,206
Current income tax
provision 571 333 2,263 1,222
Deferred income tax
provision 181 246 1,246 952
--- --- ----- ---
NET INCOME 1,189 689 4,584 3,032
Preferred stock
dividends 19 19 76 32
--- --- --- ---
INCOME ATTRIBUTABLE
TO COMMON STOCK $1,170 $670 $4,508 $3,000
====== ==== ====== ======
NET INCOME PER
COMMON SHARE:
Basic $3.05 $1.79 $11.75 $8.53
Diluted $2.98 $1.77 $11.47 $8.46
WEIGHTED-AVERAGE
NUMBER OF COMMON
SHARES OUTSTANDING:
Basic 384 375 384 352
Diluted 400 388 400 359
DIVIDENDS DECLARED
PER COMMON SHARE $0.15 $0.15 $0.60 $0.60
APACHE CORPORATION
SUMMARY OF CAPITAL COSTS INCURRED
(In millions)
For the Quarter For the Year
Ended December
Ended December 31, 31,
------------------ ---------------
2011 2010 2011 2010
---- ---- ---- ----
CAPITAL EXPENDITURES (1):
Exploration & Development Costs
United States $792 $584 $2,768 $1,623
Canada 208 267 817 860
--- --- --- ---
North America 1,000 851 3,585 2,483
----- --- ----- -----
Egypt 222 247 896 757
Australia 131 223 576 624
North Sea 205 180 823 617
Argentina 101 73 346 240
Other International 12 - 61 20
--- --- --- ---
International 671 723 2,702 2,258
--- --- ----- -----
Worldwide Exploration &
Development Costs $1,671 $1,574 $6,287 $4,741
------ ------ ------ ------
Gathering, Transmission and Processing
Facilities
United States $18 $- $27 $-
Canada 35 52 148 159
Egypt 37 71 111 182
Australia 90 60 345 162
Argentina 5 1 12 3
--- --- --- ---
Total Gathering, Transmission
and Processing $185 $184 $643 $506
---- ---- ---- ----
Capitalized Interest $70 $56 $263 $120
--- --- ---- ----
Capital Expenditures,
excluding acquisitions $1,926 $1,814 $7,193 $5,367
====== ====== ====== ======
Acquisitions $2,696 $8,007 $3,189 $11,557
====== ====== ====== =======
(1) Accrual basis
APACHE CORPORATION
SUMMARY BALANCE SHEET INFORMATION
(In millions)
December December
31, 31,
2011 2010
---- ----
Cash and Cash Equivalents $295 $134
Other Current Assets 4,508 3,346
Property and Equipment, net 45,448 38,151
Goodwill 1,114 1,032
Other Assets 686 762
Total Assets $52,051 $43,425
======= =======
Short-Term Debt $431 $46
Other Current Liabilities 4,532 3,478
Long-Term Debt 6,785 8,095
Deferred Credits and Other
Noncurrent Liabilities 11,310 7,429
Shareholders' Equity 28,993 24,377
Total Liabilities and
Shareholders' Equity $52,051 $43,425
======= =======
Common shares outstanding at
end of period 384 382
APACHE CORPORATION
PRODUCTION INFORMATION
For the Quarter For the Year
Ended December 31, Ended December 31,
------------------ ------------------
2011 2010 2011 2010
---- ---- ---- ----
OIL
VOLUME
-
Barrels
per
day
Central 7,323 5,077 6,788 3,544
Permian 54,381 46,586 50,991 39,441
GOM
Deepwater 6,507 3,328 6,022 2,311
GOM
Shelf 47,918 46,767 46,097 44,836
GC
Onshore 10,051 8,190 9,517 6,444
------ ----- ----- -----
United
States 126,180 109,948 119,415 96,576
Canada 14,882 15,557 14,252 14,581
------ ------ ------ ------
North
America 141,062 125,505 133,667 111,157
------- ------- ------- -------
Egypt 103,908 107,238 103,912 99,122
Australia 38,169 38,738 38,228 45,908
North
Sea 55,859 52,453 54,541 56,791
Argentina 9,655 10,382 9,597 9,956
----- ------ ----- -----
International 207,591 208,811 206,278 211,777
------- ------- ------- -------
Total 348,653 334,316 339,945 322,934
======= ======= ======= =======
NATURAL
GAS
VOLUME
-
Mcf
per
day
Central 193,722 223,883 213,447 209,346
Permian 178,766 162,266 173,188 116,771
GOM
Deepwater 48,144 35,883 52,193 28,368
GOM
Shelf 335,434 355,669 341,253 320,360
GC
Onshore 106,505 60,566 84,661 56,002
------- ------ ------ ------
United
States 862,571 838,267 864,742 730,847
Canada 631,122 593,523 632,550 396,005
------- ------- ------- -------
North
America 1,493,693 1,431,790 1,497,292 1,126,852
--------- --------- --------- ---------
Egypt 355,091 368,350 365,418 374,858
Australia 189,852 191,585 185,079 199,729
North
Sea 2,366 2,118 2,284 2,391
Argentina 221,523 198,513 212,311 184,830
------- ------- ------- -------
International 768,832 760,566 765,092 761,808
------- ------- ------- -------
Total 2,262,525 2,192,356 2,262,384 1,888,660
========= ========= ========= =========
NGL
VOLUME
-
Barrels
per
day
Central 5,566 1,045 2,268 659
Permian 12,256 12,740 11,799 7,559
GOM
Deepwater 582 440 715 466
GOM
Shelf 4,446 4,240 5,278 3,987
GC
Onshore 2,556 1,254 2,051 1,106
----- ----- ----- -----
United
States 25,406 19,719 22,111 13,777
Canada 5,183 5,637 5,958 2,884
----- ----- ----- -----
North
America 30,589 25,356 28,069 16,661
------ ------ ------ ------
Egypt - 326 49 82
North
Sea - - 4 -
Argentina 2,997 3,265 3,018 3,180
----- ----- ----- -----
International 2,997 3,591 3,071 3,262
----- ----- ----- -----
Total 33,586 28,947 31,140 19,923
====== ====== ====== ======
BOE
per
day
Central 45,176 43,436 44,630 39,094
Permian 96,431 86,370 91,655 66,462
GOM
Deepwater 15,114 9,749 15,436 7,505
GOM
Shelf 108,270 110,284 108,251 102,217
GC
Onshore 30,357 19,539 25,678 16,883
------ ------ ------ ------
United
States 295,348 269,378 285,650 232,161
Canada 125,252 120,115 125,636 83,466
------- ------- ------- ------
North
America 420,600 389,493 411,286 315,627
------- ------- ------- -------
Egypt 163,090 168,956 164,864 161,680
Australia 69,812 70,669 69,074 79,196
North
Sea 56,253 52,806 54,925 57,190
Argentina 49,572 46,733 48,000 43,941
------ ------ ------ ------
International 338,727 339,164 336,863 342,007
------- ------- ------- -------
Total 759,327 728,657 748,149 657,634
======= ======= ======= =======
APACHE CORPORATION
PRICE INFORMATION
For the Quarter For the Year
Ended December 31, Ended December 31,
------------------ ------------------
2011 2010 2011 2010
---- ---- ---- ----
AVERAGE OIL PRICE PER BARREL
Central $89.36 $80.76 $89.89 $76.27
Permian 89.99 81.26 90.87 76.00
GOM Deepwater 112.77 85.32 106.75 79.68
GOM Shelf 115.70 85.59 108.92 78.88
GC Onshore 112.60 85.27 105.97 79.57
United States
(1) 99.54 81.29 95.51 76.13
Canada 94.38 75.73 93.19 72.83
North America
(1) 98.99 80.60 95.27 75.69
Egypt (1) 106.65 88.27 109.92 79.45
Australia (1) 109.53 87.14 111.22 77.32
North Sea (2) 104.64 78.43 104.09 76.66
Argentina 76.67 59.23 68.02 57.47
International
(1, 2) 105.24 84.14 106.67 77.21
Total (1, 2) 102.71 82.81 102.19 76.69
AVERAGE NATURAL GAS PRICE PER MCF
Central $3.92 $3.91 $4.44 $4.53
Permian 5.05 4.68 5.17 5.21
GOM Deepwater 3.48 3.93 4.06 4.35
GOM Shelf 3.86 4.25 4.42 4.76
GC Onshore 3.73 3.91 4.34 4.66
United States
(1) 4.59 4.95 4.91 5.28
Canada (1) 4.15 4.08 4.47 4.48
North America
(1) 4.40 4.59 4.72 5.00
Egypt 4.82 3.84 4.66 3.62
Australia 2.64 2.33 2.69 2.24
North Sea 20.49 23.12 22.25 18.64
Argentina 2.82 2.04 2.64 1.96
International 3.75 3.04 3.67 2.90
Total (1) 4.18 4.06 4.37 4.15
AVERAGE NGL PRICE PER BARREL
Central $29.96 $50.32 $38.67 $47.67
Permian 39.09 43.78 47.88 39.49
GOM Deepwater 58.28 45.15 50.44 45.27
GOM Shelf 55.07 43.18 49.63 39.69
GC Onshore 56.08 53.18 58.51 55.98
United States 42.03 44.63 48.42 41.45
Canada 50.16 36.64 45.72 36.61
North America 43.41 42.85 47.85 40.62
Egypt - 69.75 66.36 69.75
North Sea - - 65.45 -
Argentina 27.00 21.61 27.90 27.08
International 27.00 25.98 28.56 28.15
Total 41.95 40.76 45.95 38.58
(1) Prices reflect the impact of financial derivative
hedging activities.
(2) Prices reflect the impact of the North Sea fixed-
price oil sales contract.
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 Year
Ended December 31, Ended December 31,
------------------ ------------------
2011 2010 2011 2010
---- ---- ---- ----
Income Attributable to Common Stock
(GAAP) $1,170 $670 $4,508 $3,000
Adjustments:
U.K. tax rate increase impact - - 218 -
Oil and gas asset impairment of Chile,
net of tax 60 - 60 -
Merger, acquisitions & transition, net of
tax 4 109 13 120
Unrealized foreign currency fluctuation
impact on deferred tax expense (5) 51 (73) 52
Deferred tax
adjustments (75) - (75) -
Adjusted Earnings (Non-GAAP) $1,154 $830 $4,651 $3,172
====== ==== ====== ======
Net Income per Common Share -Diluted
(GAAP) $2.98 $1.77 $11.47 $8.46
Adjustments:
U.K. tax rate increase impact - - 0.55 -
Oil and gas asset impairment of Chile,
net of tax 0.15 - 0.15 -
Merger, acquisitions & transition, net of
tax 0.01 0.29 0.03 0.33
Unrealized foreign currency fluctuation
impact on deferred tax expense (0.01) 0.13 (0.18) 0.15
Deferred tax
adjustments (0.19) - (0.19) -
Adjusted Earnings Per Share - Diluted
(Non-GAAP) $2.94 $2.19 $11.83 $8.94
===== ===== ====== =====
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 Year
Ended December 31, Ended December 31,
------------------ ------------------
2011 2010 2011 2010
---- ---- ---- ----
Net cash provided by operating
activities $2,782 $1,926 $9,953 $6,726
Changes in operating assets and
liabilities (118) 55 281 642
---- --- --- ---
Cash from operations before changes in
operating assets and liabilities $2,664 $1,981 $10,234 $7,368
======
APACHE CORPORATION
OIL & GAS RESERVES INFORMATION
For the Year Ended December 31, 2011
OIL (Mbbl)
U.S. Canada Egypt Australia North Sea Argentina Total
---- ------ ----- --------- --------- --------- -----
Balance -Dec
31, 2010 636,854 147,147 127,127 66,136 154,368 20,645 1,152,277
Extensions and
Discoveries 45,676 16,712 45,021 15,762 332 3,230 126,733
Purchases 5,097 705 - - 34,612 - 40,414
Revisions (8,904) (17,117) (6,185) - - 215 (31,991)
Production (43,586) (5,203) (37,928) (13,953) (19,907) (3,503) (124,080)
Sales (1,123) (653) - - - - (1,776)
------ ---- --- --- --- --- ------
Balance -Dec
31, 2011 634,014 141,591 128,035 67,945 169,405 20,587 1,161,577
======= ======= ======= ====== ======= ====== =========
NGL's (Mbbl)
U.S. Canada Egypt Australia North Sea Argentina Total
---- ------ ----- --------- --------- --------- -----
Balance -Dec
31, 2010 122,161 27,843 - - - 6,454 156,458
Extensions and
Discoveries 43,915 5,890 18 - 72 1,784 51,679
Purchases 586 47 - - 9,191 - 9,824
Revisions 1,713 774 - - - 17 2,504
Production (8,072) (2,173) (18) - (1) (1,102) (11,366)
Sales (270) (931) - - - - (1,201)
---- ---- --- --- --- --- ------
Balance -Dec
31, 2011 160,033 31,450 - - 9,262 7,153 207,898
======= ====== === === ===== ===== =======
Oil & NGL's
U.S. Canada Egypt Australia North Sea Argentina Total
---- ------ ----- --------- --------- --------- -----
Balance -Dec
31, 2010 759,015 174,990 127,127 66,136 154,368 27,099 1,308,735
Extensions and
Discoveries 89,591 22,602 45,039 15,762 404 5,014 178,412
Purchases 5,683 752 - - 43,803 - 50,238
Revisions (7,191) (16,343) (6,185) - - 232 (29,487)
Production (51,658) (7,376) (37,946) (13,953) (19,908) (4,605) (135,446)
Sales (1,393) (1,584) - - - - (2,977)
------ ------ --- --- --- --- ------
Balance -Dec
31, 2011 794,047 173,041 128,035 67,945 178,667 27,740 1,369,475
======= ======= ======= ====== ======= ====== =========
GAS (MMcf)
U.S. Canada Egypt Australia North Sea Argentina Total
---- ------ ----- --------- --------- --------- -----
Balance -Dec
31, 2010 3,272,985 3,491,967 1,076,917 1,488,498 4,144 532,671 9,867,182
Extensions and
Discoveries 169,506 505,049 77,049 148,640 475 81,274 981,993
Purchases 67,595 8,838 - - 104,658 - 181,091
Revisions (7,716) (133,359) (37,623) - - 1,107 (177,591)
Production (315,631) (230,880) (133,377) (67,554) (835) (77,493) (825,770)
Sales (210,528) (94,104) - - - - (304,632)
-------- ------- --- --- --- --- --------
Balance -Dec
31, 2011 2,976,211 3,547,511 982,966 1,569,584 108,442 537,559 9,722,273
========= ========= ======= ========= ======= ======= =========
TOTAL BOE
(Mboe)
U.S. Canada Egypt Australia North Sea Argentina Total
---- ------ ----- --------- --------- --------- -----
Balance -Dec
31, 2010 1,304,513 756,983 306,613 314,219 155,059 115,878 2,953,265
Extensions and
Discoveries 117,842 106,778 57,882 40,534 483 18,559 342,078
Purchases 16,949 2,225 - - 61,246 - 80,420
Revisions (8,477) (38,570) (12,456) - - 417 (59,086)
Production (104,263) (45,856) (60,176) (25,211) (20,047) (17,521) (273,074)
Sales (36,482) (17,267) - - - - (53,749)
------- ------- --- --- --- --- -------
Balance -Dec
31, 2011 1,290,082 764,293 291,863 329,542 196,741 117,333 2,989,854
========= ======= ======= ======= ======= ======= =========
Proved
developed
reserves:
Oil + NGL's
(Mbbls) 535,741 105,102 105,840 35,725 145,743 21,940 950,091
Gas (Mboe) 369,328 351,467 116,811 112,603 17,505 74,522 1,042,236
------- ------- ------- ------- ------ ------ ---------
Balance -Dec
31, 2011
(Mboe) 905,069 456,569 222,651 148,328 163,248 96,462 1,992,327
======= ======= ======= ======= ======= ====== =========
APACHE CORPORATION
OIL & GAS RESERVES AND COSTS
For the Year Ended December 31, 2011
Reserve Additions (Mboe)
North
U.S. Canada Egypt Australia Sea Argentina Other Total
---- ------ ----- --------- ----- --------- ----- -----
Extensions and Discoveries 117,842 106,778 57,882 40,534 483 18,559 - 342,078
Purchases 16,949 2,225 - - 61,246 - - 80,420
------ ----- --- --- ------ --- --- ------
Additions excluding revisions 134,791 109,003 57,882 40,534 61,729 18,559 - 422,498
------- ------- ------ ------ ------ ------ --- ---
Revisions (8,477) (38,570) (12,456) - - 417 - (59,086)
------ ------- ------- --- --- --- --- -------
Total 126,314 70,433 45,426 40,534 61,729 18,976 - 363,412
===== ====== ====== ====== ====== ====== === ===
Capital Cost Information (Non-GAAP) (in millions)
North
U.S. Canada Egypt Australia Sea Argentina Other Total
---- ------ ----- --------- ----- --------- ----- -----
Exploration & Development, excluding Capitalized
Interest and Asset Retirement Cost (ARC) (1) $2,768 $817 $896 $576 $823 $346 $61 $6,287
Acquisitions, excluding ARC - Acquired (2)
Proved 318 - (12) - 1,857 - - 2,163
Unproved 116 33 2 48 476 - 13 688
--- --- --- --- --- --- --- ---
Total $3,202 $850 $886 $624 $3,156 $346 $74 $9,138
====== ==== ==== ==== ====== ==== === ======
(1) Reconciliation of Exploration and Development Costs to Exploration and Development Costs, excluding
Capitalized Interest and Asset Retirement Cost, a Non-GAAP Financial Measure
-------------------------------------------------------------------------------------------------------
Presented below is a reconciliation of exploration and development costs (GAAP) to exploration and
development costs, excluding capitalized interest and asset retirement cost (Non-GAAP). Management
believes exploration and development costs, excluding capitalized interest and asset retirement cost is
a more accurate reflection of the expenditures during the current year.
North
U.S. Canada Egypt Australia Sea Argentina Other Total
---- ------ ----- --------- ----- --------- ----- -----
Exploration & Development Costs (in millions) $3,250 $1,092 $914 $715 $959 $358 $61 $7,349
Less: Capitalized Interest (152) (47) (18) (14) - (12) - (243)
Less: ARC (330) (228) - (125) (136) - - (819)
----- ---- --- --- ---- --- --- ---
Total Adds $2,768 $817 $896 $576 $823 $346 $61 $6,287
====== ==== ==== ==== ==== ==== === ===
(2) Reconciliation of Total Acquisition Costs to Acquisitions, excluding Asset Retirement Cost -
Acquired, a Non-GAAP Financial Measure
-------------------------------------------------------------------------------------------------
Presented below is a reconciliation of total acquisition costs (GAAP) to acquisitions, excluding asset
retirement cost - acquired (Non-GAAP). Management believes acquisitions, excluding asset retirement
cost - acquired is a more accurate reflection of the costs of acquisitions during the current year.
North
U.S. Canada Egypt Australia Sea Argentina Other Total
---- ------ ----- --------- ----- --------- ----- -----
Total Acquisition Costs (in millions)
Proved $368 $- $(12) $- $2,399 $- $- $2,755
Unproved 116 33 2 48 476 13 688
Less: ARC - Acquired (50) - - - (542) - - (592)
--- --- --- --- ---- --- --- ----
Acquisitions, excluding ARC - Acquired $434 $33 $(10) $48 $2,333 $- $13 $2,851
==== === === === === === === ===
APA-F
Apache Corporation
CONTACT: Media, Bill Mintz, +1-713-296-7276, or John Roper,
+1-281-302-2646, or Investors, Patrick Cassidy, +1-713-296-6100, or Castlen
Kennedy, +1-713-296-7189
Web site: http://www.apachecorp.com/
