Apache reports 34 percent growth in onshore North America liquids production in 2013

- Onshore North America liquids production increased 45,600 barrels per day in 2013

- 140 percent of 2013 production replaced through drilling

- 2014 quarterly dividend increased 25 percent to $0.25 per share

- Worldwide fourth-quarter production averaged 688,000 boe per day; 661,000 boe per day excluding noncontrolling interest

- Fourth-quarter GAAP earnings of 43 cents per diluted share/$174 million; adjusted earnings* of $1.57 per share/$631 million

- Fourth-quarter cash flow from operations of $2.5 billion; $2.1 billion before changes in working capital*

- 11.2 million shares repurchased for $1 billion during 2013

News provided by

Apache Corporation

Feb 13, 2014, 08:00 ET

HOUSTON, Feb. 13, 2014 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA) today announced full-year 2013 earnings of $2.2 billion or $5.50 per diluted common share and adjusted earnings,* which exclude certain items that impact the comparability of results, of $3.2 billion or $7.92 per share. In 2012, Apache reported earnings of $1.9 billion or $4.92 per diluted common share and adjusted earnings of $3.8 billion or $9.48 per share. Net cash provided by operating activities totaled approximately $9.8 billion in 2013, compared with $8.5 billion in the prior year, with cash from operations before changes in operating assets and liabilities* totaling $9.8 billion, compared with $10.3 billion in 2012.

(Logo:  http://photos.prnewswire.com/prnh/20140116/DA47435LOGO)

Apache also reported that onshore North American liquids production increased 34 percent in 2013 and the company replaced 140 percent of 2013 production through drilling.

"Our strong performance is driven by predictable liquids production growth from our North American onshore assets combined with large free cash flow generation from our international operations," said G. Steven Farris, chairman and chief executive officer at Apache. "We increased onshore North America liquids production by 45,600 barrels per day through drilling in 2013, and we replaced 140 percent of worldwide production through the drill bit.

"We made significant strides in focusing our portfolio during the year, exiting production on the Gulf of Mexico Shelf, streamlining our Canada position and establishing our partnership with Sinopec in Egypt," Farris said. "The proceeds of these transactions – which together total approximately $7 billion – have provided the company with additional financial flexibility. The sale of our Argentina operations announced yesterday continues our decisive strategic steps in 2013."

Fourth-quarter 2013 financial results

Apache reported fourth-quarter 2013 earnings of $174 million or 43 cents per share and adjusted earnings* of $631 million or $1.57 per share. For the same period in the prior year, Apache reported earnings of $649 million or $1.64 per diluted common share and adjusted earnings of $907 million or $2.27 per share. Net cash provided by operating activities totaled approximately $2.5 billion, up from $2.1 billion a year earlier, with cash from operations before changes in operating assets and liabilities* totaling $2.1 billion, compared with $2.8 billion in the year-ago period.

Fourth-quarter production and operating highlights

Highlights from fourth quarter drilling include:

  • Total worldwide net daily production of oil, natural gas, and natural gas liquids (NGLs) averaged 688,000 barrels of oil equivalent (boe) per day. Excluding the noncontrolling interest in Egypt operations, production totaled 661,000 boe per day. Liquids production comprised 55 percent of the total.
  • The Permian and Central regions increased liquids production 32,500 barrels per day over the prior-year period. Total production from the two regions – 227,000 boe per day – was 33 percent of Apache's total production.
  • The Permian Region achieved record production averaging 134,000 boe per day, up 13 percent from the prior-year period. The region averaged 43 rigs in operation during the quarter, spud 242 gross wells (83 horizontals) and completed 289 gross wells (235 net).
  • Apache's Central Region's production of 93,000 boe per day was 18 percent above the prior-year period. Liquids production was up 57 percent from the prior-year period. The region averaged 25 drilling rigs and drilled 66 gross (51 net) wells.

Year-end 2013 reserves

Worldwide estimated proved reserves totaled 2.65 billion boe at year-end 2013.  Excluding acquisitions, divestments and revisions, proved reserves increased 4 percent. Extensions and discoveries of 389 million boe were 140 percent of 2013 production.

The Permian Region replaced 323 percent of production through drilling and increased proved reserves by nearly 14 percent to 910 million barrels of oil equivalent (MMboe). The Central Region replaced 195 percent of production and increased proved reserves nearly 14 percent to 304 MMboe.

Impact of Gulf of Mexico Shelf divestiture

On Sept. 30, 2013, Apache completed the sale of its Gulf of Mexico Shelf operations and properties to Fieldwood Energy LLC, a portfolio company of Riverstone Holdings, for $3.75 billion and assumption of liabilities for future abandonment costs of the properties with an estimated discounted value of $1.5 billion. In addition to reducing production volumes, the divestiture affected the company's fourth-quarter 2013 financial results in these areas:

  • U.S. oil price realizations were impacted by the sale of Shelf production that sold at a premium to the West Texas Intermediate benchmark. Apache's realized oil price in the United States averaged $93.36 per barrel in the fourth quarter, down from $105.82 in the third quarter.
  • Apache's adjusted worldwide effective tax rate* increased to 44 percent as higher-rate international operations made up a larger portion of total income before taxes absent income from Shelf operations. In the third quarter, Apache's adjusted worldwide effective tax rate* was 42 percent.

Oil and gas prices

Apache's mix of hydrocarbon production during the fourth quarter 2013 included approximately 46 percent crude oil and 9 percent natural gas liquids (NGLs). Due to the premium prices received for crude oil and NGLs, these products contributed 83 percent of the company's revenue during the period.

Worldwide, Apache received an average price of $100.59 per barrel of crude oil during the fourth quarter compared with $98.93 per barrel in the prior-year period. Apache received an average price of $3.71 per thousand cubic feet (Mcf) of natural gas, compared with $4.14 per Mcf in the prior-year period.

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 press releases on its website, www.apachecorp.com.

* Adjusted earnings, cash from operations before changes in operating assets and liabilities, and adjusted effective tax rate 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/financialdata.

Conference call

Apache will conduct a conference call to discuss its results and review its portfolio at 1 p.m. Central time on Thursday, Feb. 13. 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. Central time on Feb. 13. To access the telephone playback, dial 855-859-2056 or 404-537-3406 for international calls. The conference access code is 30664028.

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 YPF 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.

Website:  www.apachecorp.com

APACHE CORPORATION

STATEMENT OF CONSOLIDATED OPERATIONS

(In millions, except per share data)





























For the Quarter 

For the Year


Ended December 31,

Ended December 31,


2013

2012

2013

2012









REVENUES AND OTHER:







  Oil revenues

$    2,914

$    3,386

$   12,903

$    13,210

  Gas revenues

633

854

2,829

3,193

  NGL revenues

181

153

670

544

Oil and gas production revenues

3,728

4,393

16,402

16,947

Derivative instrument gains (losses), net

(124)

(79)

(399)

(79)

Other 

(28)

77

51

210


3,576

4,391

16,054

17,078









COSTS AND EXPENSES:







Depreciation, depletion and amortization







Oil and gas property and equipment







    Recurring

1,208

1,277

5,114

4,812

    Additional

368

28

1,176

1,926

Other assets

113

103

410

371

Asset retirement obligation accretion

47

60

243

232

Lease operating expenses

637

790

3,056

2,968

Gathering and transportation 

60

68

297

303

Taxes other than income

222

235

832

862

General and administrative

127

147

503

531

Merger, acquisitions & transition

33

2

33

31

Financing costs, net

19

40

174

165


2,834

2,750

11,838

12,201









INCOME BEFORE INCOME TAXES

742

1,641

4,216

4,877

Current income tax provision 

474

470

1,665

2,199

Deferred income tax provision

38

503

263

677









NET INCOME INCLUDING NONCONROLLING INTEREST

230

668

2,288

2,001

Preferred stock dividends

-

19

44

76

Net income attributable to noncontrolling interest

56

-

56

-









INCOME ATTRIBUTABLE TO COMMON STOCK

$       174

$       649

$     2,188

$      1,925









NET INCOME PER COMMON SHARE:







Basic

$      0.44

$      1.66

$        5.53

$         4.95

Diluted 

$      0.43

$      1.64

$        5.50

$         4.92









WEIGHTED-AVERAGE NUMBER OF COMMON 






   SHARES OUTSTANDING:







Basic

399

391

395

389

Diluted

401

407

406

391









DIVIDENDS DECLARED PER COMMON SHARE

$      0.20

$      0.17

$        0.80

$         0.68

APACHE CORPORATION

SUMMARY OF CAPITAL COSTS INCURRED

(In millions)





























For the Quarter 

For the Year





Ended December 31,

Ended December 31,





2013

2012

2013

2012

CAPITAL EXPENDITURES:








Exploration & Development Costs









United States

$        1,302

$     1,543

$   5,473

$   5,151


Canada

218

131

720

590



North America

1,520

1,674

6,193

5,741


Egypt (1)

353

265

1,166

1,074


Australia

268

355

1,179

873


North Sea

227

183

874

886


Argentina

37

67

182

289


New Ventures - International

(6)

14

22

98



International (1)

879

884

3,423

3,220



Worldwide Exploration & Development Costs (1)

$       2,399

$     2,558

$   9,616

$    8,961













Gathering, Transmission and Processing Facilities









United States

$            49

$          18

$      169

$         75


Canada

24

34

135

172


Egypt (1)

25

18

82

33


Australia

211

103

745

441


Argentina

4

4

11

16


North Sea

1

1

1

1



Total Gathering, Transmission and Processing (1)

$         314

$       178

$   1,143

$       738













Asset Retirement Costs

$           90

$       392

$      484

$       948













Capitalized Interest

$           98

$         93

$      374

$       334













Capital Expenditures, excluding Acquisitions (1)

$      2,901

$     3,221

$ 11,617

$ 10,981













Asset Retirement Costs - Acquired

$              -

$          51

$       53

$        84













Acquisitions

$           59

$        122

$     377

$   3,543












(1)Includes capital costs attributable to noncontrolling interest in Egypt



APACHE CORPORATION

SUMMARY BALANCE SHEET INFORMATION

(In millions)











December 31,

December 31,




2013

2012







Cash and Cash Equivalents

$            1,906

$               160

Other Current Assets 

4,460

4,802

Property and Equipment, net

52,421

53,280

Goodwill

1,369

1,289

Other Assets

1,481

1,206

Total Assets

$          61,637

$          60,737







Short-Term Debt

$                 53

$               990

Other Current Liabilities

4,647

4,546

Long-Term Debt

9,672

11,355

Deferred Credits and Other Noncurrent Liabilities

11,872

12,515

Apache Shareholders' Equity

33,396

31,331

Noncontrolling interest

1,997

-

Total Liabilities and Shareholders' Equity

$          61,637

$          60,737







Common shares outstanding at end of period

396

392

APACHE CORPORATION

PRODUCTION INFORMATION





























For the Quarter 

For the Year





Ended December 31,

Ended December 31,





2013

2012

2013

2012












  OIL VOLUME - Barrels per day








Central

22,939

21,026

22,783

14,151

Permian

77,703

65,104

72,113

60,215

GOM Deepwater

6,530

8,355

7,386

6,848

GOM Shelf

(27)

44,752

34,099

42,873

GC Onshore

10,397

10,489

10,526

10,036


United States

117,542

149,726

146,907

134,123

Canada

16,570

17,377

17,724

15,830


North America

134,112

167,103

164,631

149,953

Egypt (1)

89,654

103,056

89,561

99,756

Australia

16,760

26,483

19,329

28,884

North Sea

64,996

65,583

63,721

63,692

Argentina

9,276

9,859

9,375

9,741


International (1)

180,686

204,981

181,986

202,073



Total (1)

314,798

372,084

346,617

352,026












  NATURAL GAS VOLUME - Mcf per day








Central

264,786

287,956

272,814

242,998

Permian

191,371

184,781

189,450

180,938

GOM Deepwater

11,378

48,177

19,743

46,048

GOM Shelf

11,167

265,918

192,314

291,356

GC Onshore

104,300

103,722

107,014

92,759


United States

583,002

890,554

781,335

854,099

Canada

421,409

550,495

497,515

600,680


North America

1,004,411

1,441,049

1,278,850

1,454,779

Egypt (1)

352,616

350,406

356,454

353,738

Australia

254,853

204,961

223,433

214,013

North Sea

53,491

43,745

50,961

57,457

Argentina

190,799

204,724

187,390

213,464


International (1)

851,759

803,836

818,238

838,672



Total (1)

1,856,170

2,244,885

2,097,088

2,293,451












  NGL VOLUME - Barrels per day








Central

26,083

10,231

23,034

6,518

Permian

24,115

21,997

23,379

17,966

GOM Deepwater

740

1,519

838

1,185

GOM Shelf

824

6,908

4,911

5,738

GC Onshore

2,640

2,229

2,418

2,120


United States

54,402

42,884

54,580

33,527

Canada

6,395

6,837

6,689

6,258


North America

60,797

49,721

61,269

39,785

North Sea

1,301

1,085

1,272

1,618

Argentina

1,653

2,967

2,102

3,008


International

2,954

4,052

3,374

4,626



Total

63,751

53,773

64,643

44,411












  BOE per day








Central

93,153

79,250

91,286

61,169

Permian

133,713

117,898

127,066

108,338

GOM Deepwater

9,167

17,903

11,515

15,708

GOM Shelf

2,658

95,980

71,062

97,170

GC Onshore

30,421

30,005

30,780

27,615


United States

269,112

341,036

331,709

310,000

Canada

93,199

115,963

107,332

122,201


North America

362,311

456,999

439,041

432,201

Egypt (1)

148,423

161,458

148,970

158,713

Australia

59,236

60,643

56,568

64,552

North Sea

75,212

73,959

73,487

74,887

Argentina

42,729

46,946

42,709

48,326


International (1)

325,600

343,006

321,734

346,478



Total (1)

687,911

800,005

760,775

778,679















Total excluding noncontrolling interests

661,484

800,005

754,114

778,679













(1)Includes production volume per day attributable to noncontrolling interest in Egypt


Oil (b/d)

15,521

-

3,912

-


Gas (Mcf/d)

65,437

-

16,494

-

APACHE CORPORATION

PRICE INFORMATION





























For the Quarter 

For the Year





Ended December 31,

Ended December 31,





2013

2012

2013

2012












  AVERAGE OIL PRICE PER BARREL








Central

$     92.67

$     82.55

$      93.45

$      86.48

Permian

93.44

81.40

93.50

88.18

GOM Deepwater

95.04

103.06

105.04

105.17

GOM Shelf

 NM 

105.27

109.57

108.52

GC Onshore

97.06

105.21

106.09

107.83


United States (1)

93.36

91.01

98.14

94.98

Canada

79.44

82.08

87.00

84.89


North America (1)

91.64

90.08

96.94

93.91

Egypt

108.56

107.80

107.94

110.92

Australia(1)

114.06

111.34

110.42

115.22

North Sea(1)

107.08

106.17

107.48

107.97

Argentina

83.22

74.53

79.05

75.89


International (1)

107.24

106.14

106.55

108.92



Total(1)

100.59

98.93

101.99

102.53












  AVERAGE NATURAL GAS PRICE PER MCF






Central

$        3.62

$        3.79

$        3.72

$         3.26

Permian

3.80

3.75

3.77

3.34

GOM Deepwater

3.61

3.48

3.34

2.99

GOM Shelf

 NM 

3.51

3.82

3.01

GC Onshore

3.69

3.47

3.80

2.92


United States (1)

3.77

4.05

3.84

3.74

Canada (1)

3.34

4.03

3.23

3.42


North America (1)

3.59

4.04

3.61

3.61

Egypt

3.00

4.02

2.99

3.90

Australia

4.15

4.88

4.43

4.55

North Sea

10.58

10.11

10.43

8.95

Argentina

3.11

2.98

2.96

2.87


International

3.85

4.30

3.84

4.15



Total (1)

3.71

4.14

3.70

3.80












  AVERAGE NGL PRICE PER BARREL








Central

$     28.34

$     27.06

$      25.61

$      27.48

Permian

29.90

29.95

27.94

32.97

GOM Deepwater

35.80

32.34

33.23

33.06

GOM Shelf

 NM 

28.17

28.52

32.04

GC Onshore

36.75

36.60

32.44

40.04


United States

29.50

29.40

27.29

32.19

Canada

36.82

33.59

30.50

34.63


North America

30.27

29.98

27.64

32.57

Egypt

-

-

-

-

North Sea

80.43

94.42

73.06

77.11

Argentina

17.68

22.76

23.64

21.55


International

45.31

41.96

42.27

40.98



Total

30.96

30.88

28.40

33.45

























(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.









Ÿ•

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.  









•Ÿ

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,


2013

2012

2013

2012









Income Attributable to Common Stock (GAAP)

$    174

$    649

$ 2,188

$   1,925









Adjustments:







Oil & gas property write-downs, net of tax

139

18

659

1,427

Deferred tax on distributed foreign earnings

225

-

225

-

Commodity derivative mark-to-market, net of tax

54

51

142

51

Deferred tax adjustments

43

226

58

226

Acquisitions, divestitures & transition, net of tax

21

2

21

19

North Sea decommissioning tax rate adjustment

-

-

-

118

Unrealized foreign currency fluctuation impact on deferred tax expense  

(25)

(39)

(123)

1

Adjusted Earnings  (Non-GAAP)

$    631

$    907

$ 3,170

$   3,767









Net Income per Common Share - Diluted (GAAP)

$   0.43

$   1.64

$   5.50

$      4.92









Adjustments:







Oil & gas property write-downs, net of tax

0.35

0.04

1.63

3.53

Deferred tax on distributed foreign earnings

0.56

-

0.55

-

Commodity derivative mark-to-market, net of tax

0.13

0.56

0.35

0.56

Deferred tax adjustments

0.11

-

0.14

0.30

Acquisitions, divestitures & transition, net of tax

0.05

0.13

0.05

0.13

North Sea decommissioning tax rate adjustment

-

-

-

0.04

Unrealized foreign currency fluctuation impact on deferred tax expense  

(0.06)

(0.10)

(0.30)

-

Adjusted Earnings Per Share - Diluted (Non-GAAP)

$   1.57

$   2.27

$   7.92

$      9.48


















Total income tax provision (GAAP)

$    512

$     973

$    1,928

$       2,876










Adjustments:







Tax effect of oil & gas property write-downs

229

10

517

485

Foreign currency fluctuation impact on deferred tax expense

25

39

123

(1)

Tax impact on commodity derivative mark-to-market

30

28

79

28

Tax impact on acquisition, divestitures & transition costs

12

-

12

12

North Sea decommissioning tax rate adjustment

-

-

-

(118)

Deferred tax adjustments

(43)

(226)

(58)

(226)

Deferred tax on distributed foreign earnings

(225)

-

(225)

-

Adjusted total income tax provision

$    540

$     824

$    2,376

$       3,056










Adjusted Effective Tax Rate (Non-GAAP)

44.0%

47.2%

42.1%

44.3%


















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,


2013

2012

2013

2012

Net cash provided by operating activities

$ 2,477

$ 2,082

$ 9,835

$   8,504

Changes in operating assets and liabilities

(400)

721

(81)

1,741

Cash from operations before changes in







operating assets and liabilities

$ 2,077

$ 2,803

$ 9,754

$ 10,245

APACHE CORPORATION

OIL & GAS RESERVES INFORMATION

For the Year Ended December 31, 2013




















 OIL (Mbbl) 










 U.S. 

 Canada 

Egypt1

 Australia 

 North Sea 

 Argentina 

Total1

Balance - Dec 31, 2012

677,905

150,345

124,034

63,861

147,654

18,826

1,182,625

Extensions and Discoveries

133,227

10,177

43,738

2,539

1,543

998

192,222

Purchases

85

-

5

-

3,623

-

3,713

Revisions

1,683

(531)

457

(118)

18

24

1,533

Production

(53,621)

(6,469)

(32,690)

(7,055)

(23,258)

(3,422)

(126,515)

Sales

(105,463)

(16,630)

-

-

-

-

(122,093)

Balance - Dec 31, 2013

653,816

136,892

135,544

59,227

129,580

16,426

1,131,485










 NGL's (Mbbl) 










 U.S. 

 Canada 

Egypt1

 Australia 

 North Sea 

 Argentina 

Total1

Balance - Dec 31, 2012

215,397

34,254

-

-

2,818

5,883

258,352

Extensions and Discoveries

69,231

4,014

-

-

-

-

73,245

Purchases

45

-

-

-

295

-

340

Revisions

1,591

546

-

-

1

3

2,141

Production

(19,922)

(2,442)

-

-

(464)

(767)

(23,595)

Sales

(18,319)

(303)

-

-

-

-

(18,622)

Balance - Dec 31, 2013

248,023

36,069

-

-

2,650

5,119

291,861










 Oil & NGL's 










 U.S. 

 Canada 

Egypt1

 Australia 

 North Sea 

 Argentina 

Total1

Balance - Dec 31, 2012

893,302

184,599

124,034

63,861

150,472

24,709

1,440,977

Extensions and Discoveries

202,458

14,191

43,738

2,539

1,543

998

265,467

Purchases

130

-

5

-

3,918

-

4,053

Revisions

3,274

15

457

(118)

19

27

3,674

Production

(73,543)

(8,911)

(32,690)

(7,055)

(23,722)

(4,189)

(150,110)

Sales

(123,782)

(16,933)

-

-

-

-

(140,715)

Balance - Dec 31, 2013

901,839

172,961

135,544

59,227

132,230

21,545

1,423,346










 GAS (MMcf) 










 U.S. 

 Canada 

Egypt1

 Australia 

 North Sea 

 Argentina 

Total1

Balance - Dec 31, 2012

3,185,907

2,137,884

895,491

1,670,070

112,304

462,550

8,464,206

Extensions and Discoveries

306,721

359,493

44,382

13,351

2,750

16,515

743,212

Purchases

855

-

-

-

10,680

-

11,535

Revisions

61,247

109,551

2,413

(101)

32

49

173,191

Production

(285,187)

(181,593)

(130,106)

(81,553)

(18,601)

(68,397)

(765,437)

Sales

(596,417)

(691,878)

-

-

-

-

(1,288,295)

Balance - Dec 31, 2013

2,673,126

1,733,457

812,180

1,601,767

107,165

410,717

7,338,412




















TOTAL BOE (Mboe)









 U.S. 

 Canada 

Egypt1

 Australia 

 North Sea 

 Argentina 

Total1

Balance - Dec 31, 2012

1,424,287

540,913

273,283

342,206

169,189

101,801

2,851,679

Extensions and Discoveries

253,578

74,107

51,135

4,764

2,001

3,751

389,336

Purchases

273

-

5

-

5,698

-

5,976

Revisions

13,482

18,274

859

(135)

24

35

32,539

Production

(121,074)

(39,177)

(54,374)

(20,647)

(26,822)

(15,589)

(277,683)

Sales

(223,185)

(132,246)

-

-

-

-

(355,431)

Balance - Dec 31, 2013

1,347,361

461,871

270,908

326,188

150,090

89,998

2,646,416




















Proved developed reserves:







Oil + NGL's (Mbbls)

642,467

106,625

119,242

22,524

102,761

18,305

1,011,924

Gas (Mboe)

334,328

215,737

103,638

104,424

14,696

48,189

821,012

Balance - Dec 31, 2013 (Mboe)

976,795

322,362

222,880

126,948

117,457

66,494

1,832,936










(1) Includes reserves attributable to noncontrolling interest in Egypt.

APACHE CORPORATION

OIL & GAS RESERVES AND COSTS


For the Year Ended December 31, 2013






















Reserve Additions (Mboe)










U.S.

Canada

Egypt (1)

Australia

North Sea

Argentina

Other

Total (1)











Extensions and Discoveries

253,578

74,107

51,135

4,764

2,001

3,751

-

389,336

Purchases

273

-

5

-

5,698

-

-

5,976

Additions excluding revisions

253,851

74,107

51,140

4,764

7,699

3,751

-

395,312

Revisions

13,482

18,274

859

(135)

24

35

-

32,539

Total

267,333

92,381

51,999

4,629

7,723

3,786

-

427,851






















Capital Cost Information (Non-GAAP) (in millions)










U.S.

Canada

Egypt (1)

Australia

North Sea

Argentina

Other

Total (1)

Exploration & Development, excluding Capitalized Interest and Asset Retirement Cost (ARC)








$ 5,473

$ 720

$ 1,166

$ 1,179

$ 874

$ 182

$ 22

$ 9,616

Acquisitions, excluding ARC - Acquired









Proved

17

-

35

-

72

-

-

124

Unproved

-

137

11

-

17

-

-

165

Total

$ 5,490

$ 857

$ 1,212

$ 1,179

$ 963

$ 182

$ 22

$ 9,905

































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.




























U.S.

Canada

Egypt (1)

Australia

North Sea

Argentina

Other

Total (1)











Exploration & Development Costs (in millions)

$ 6,192

$ 772

$ 1,181

$ 1,165

$ 913

$ 195

$ 22

$ 10,440

Less: Capitalized Interest

(239)

(35)

(15)

(16)

(25)

(10)

-

(340)

Less: ARC

(480)

(17)

-

30

(14)

(3)

-

(484)












Total Adds

$ 5,473

$ 720

$ 1,166

$ 1,179

$ 874

$ 182

$ 22

$ 9,616






















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.

















U.S.

Canada

Egypt (1)

Australia

North Sea

Argentina

Other

Total (1)











Total Acquisition Costs (in millions)









Proved

$ 17

$ -

$ 35

$ -

$ 125

$ -

$ -

$ 177

Unproved

-

137

11

-

17

-

165

Less: ARC - Acquired

-

-

-

-

(53)

-

-

(53)












Acquisitions, excluding ARC - Acquired

$ 17

$ 137

$ 46

$ -

$ 89

$ -

$ -

$ 289






















(1) Includes reserves and costs attributable to noncontrolling interest in Egypt.

APA-F

SOURCE Apache Corporation

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