APACHE CORP - FORM 8-K - EX-99.1

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8-K - 8-K - APACHE CORP	d53712d8k.htm

Exhibit 99.1

LOGO

NEWS RELEASE

APACHE CORPORATION ANNOUNCES THIRD-QUARTER FINANCIAL AND OPERATIONAL RESULTS

•

Reported global production of 542,000 barrels of oil equivalent (boe) per day.

•

Delivered onshore North American production of 306,000 boe per day and raised 2015 guidance to 307,000 to 309,000 boe per day, a more than 2 percent pro forma increase over 2014.

•

Achieved international and offshore production growth of 5 percent sequentially, averaging 180,000 boe per day (adjusted for divestitures, Egypt tax barrels and noncontrolling interest), and raised 2015 guidance to 172,000 to 174,000 boe per day, a 10 to 12 percent pro forma increase over 2014.

•

Realized significant exploration success in the U.K. North Sea with discoveries representing estimated net reserves of 50 million to more than 70 million boe.

HOUSTON, Nov. 5, 2015 – Apache Corporation (NYSE, Nasdaq: APA) today announced a third-quarter 2015 net loss of $5.7 billion, or $14.95 per diluted common share, which includes an after-tax ceiling test write down of $3.7 billion resulting from current low commodity price levels and a $1.5 billion charge related to an increase in the valuation allowance on deferred tax assets. When adjusted for these and certain additional items that impact the comparability of results, Apache’s third-quarter net loss totaled $21 million, or $0.05 per share. Net cash provided by continuing operating activities was approximately $835 million and adjusted EBITDA from continuing operations was $830 million.

“Apache continues to demonstrate resiliency in today’s low commodity price environment,” said John J. Christmann, IV, Apache’s chief executive officer and president. “Our third-quarter production volumes once again exceeded expectations and continue to do so on a significantly lower capital program. This is a testament to the quality of our assets and the efforts of our teams in every region. We have made significant improvements in our capital investment process, and we are relentlessly focused on improving capital efficiency. We are also seeing great progress on our costs, as both operating and G&A are down considerably since the end of last year.”

LOGO

APACHE CORPORATION ANNOUNCES THIRD-QUARTER FINANCIAL AND OPERATIONAL RESULTS

— PAGE 2 of 8

Debt and liquidity

After paying down $900 million of long-term debt in the third quarter, the company reported debt of $8.8 billion as of Sept. 30, 2015. Apache has no maturities before 2018 and only $700 million of debt maturing before 2021. The company has access to available liquidity of more than $5 billion, including cash on hand and available borrowing capacity under its committed credit facility of $3.5 billion. The credit facility matures in June 2020 and supports a commercial paper program of the same size. Since the end of the third quarter, Apache has signed agreements to sell certain non-upstream assets for cash proceeds of approximately $500 million, further strengthening the company’s cash position and financial flexibility.

Capital expenditures and capital guidance update

Apache’s financial strength and liquidity are sustained through disciplined capital budgeting. The 2015 capital program has been significantly reduced from 2014 levels. Capital expenditures in the third quarter (excluding leasehold acquisitions, capitalized interest, Egypt noncontrolling interest, and spending on divested LNG and associated assets) were $762 million, down 16 percent from the second quarter. For the first nine months of the year, they totaled $2.9 billion, and the company remains on track to spend within its guidance range.

Third-quarter operational highlights

Apache operated an average of 28 rigs worldwide and drilled 111 gross operated wells, 92 of which were North American onshore. Highlights across Apache’s operating regions include:

•

Permian – Apache operated 10 rigs in the Permian and completed 65 gross operated wells during the third quarter, up from 53 well completions in the second quarter. Production averaged 170,000 boe per day, only 1 percent lower than the second quarter despite significant planned and unplanned facilities downtime.

APACHE CORPORATION ANNOUNCES THIRD-QUARTER FINANCIAL AND OPERATIONAL RESULTS

— PAGE 3 of 8

•

Delaware Basin – Apache averaged four rigs and targeted the Bone Spring and Wolfcamp formations in the Pecos Bend and Waha areas. The company completed 22 wells using only one frac crew, and completed well costs continue to decline significantly, now averaging below $5-million.

•

Midland Basin – Apache averaged three rigs during the quarter, all targeting its southern Midland focus areas in Midland, Upton, Reagan and Glasscock counties. The company completed 25 wells during the quarter and directed its drilling activity primarily to Wolfcamp and Spraberry targets in the Wildfire area of Midland County and in the Powell Miller area of northern Reagan County. Completion costs in the Barnhart area, where 17 wells remain to be completed, have dropped 44 percent to approximately $2.7 million due to a combination of price decreases and significant design changes.

•

Central Basin Platform/NW Shelf – Apache averaged three rigs during the quarter, two of which were targeting the Yeso formation in its Cedar Lake play in Eddy County, where completed well costs have decreased nearly 50 percent since late 2014. Two notable wells, the Hummingbird #1H and #2H, were drilled and placed on production at average 30-day rates of 816 boe per day and 722 boe per day, respectively. With average completed well costs of only $2.6 million, these wells are expected to deliver very strong rates of return.

•

Mid-continent (formerly Central) – During the quarter, Apache continued to operate two rigs in the Mid-continent, where it primarily targeted the Woodford/SCOOP and Marmaton plays. The company brought online two notable wells, one each in the Marmaton and Woodford plays. The Apache 21-11-21 targeting the Marmaton produced at an average 30-day rate of 1,686 boe per day, and the Truman 28-6-6 #1H targeting the Woodford produced an average 30-day rate of 1,949 boe per day.

APACHE CORPORATION ANNOUNCES THIRD-QUARTER FINANCIAL AND OPERATIONAL RESULTS

— PAGE 4 of 8

•

Gulf Coast (Eagle Ford) – Apache primarily focused on optimizing well completions in Area A of its Eagle Ford position. Eight wells were completed and placed on production during the quarter, with average 30-day rates that are in line with the company’s published type curve. Late in the third quarter, after successfully improving the production rates and cost efficiencies in Area A, Apache resumed drilling with one rig.

•

Canada – The company is primarily focused on advancing its programs in the liquids-rich Duvernay and Montney plays. In the Duvernay, Apache placed its first well pad online in October and achieved strong test results from seven wells that averaged 2,188 boe per day per well. During the upcoming drilling season, Apache is planning to run up to two rigs in the Duvernay and one in the Montney.

•

Egypt – Gross production was up 4 percent sequentially on strong drilling results in the Ptah and Berenice oil fields. During the quarter, these fields generated peak production of more than 26,000 boe per day. This performance, coupled with other recent successful exploration and development wells, have enabled the company to exceed its prior peak gross production rate from early 2012. As a result, Apache became the largest oil and natural gas producer in Egypt on a gross operated basis during the third quarter.

•

North Sea – Production increased 6 percent, or more than 4,200 boe compared to the second quarter of 2015. The increase was driven by strong contribution from new wells and record third-quarter production efficiency, or uptime, of 92 percent. Apache recently announced two exploratory discoveries in the Beryl Area, along with a large exploratory discovery at its Seagull prospect, which lies 50 miles south of the Forties field. These discoveries, coupled with other recent drilling successes, are estimated to ultimately increase net reserves by 50 million to more than 70 million barrels of oil equivalent, or almost half the proved reserves booked in the region as of 2014 year-end.

APACHE CORPORATION ANNOUNCES THIRD-QUARTER FINANCIAL AND OPERATIONAL RESULTS

— PAGE 5 of 8

2015 outlook and guidance update

Despite a significantly reduced capital program, production volumes have shown tremendous resiliency; as a result, Apache is again raising 2015 production-guidance ranges. The company is increasing its full-year 2015 North American onshore production guidance to a range of 307,000 to 309,000 boe per day, which is up from prior guidance of 305,000 to 308,000 boe per day. On a pro forma basis, this represents more than 2 percent year-over-year growth. Internationally, Apache delivered strong third-quarter production growth through record production efficiency in the North Sea, sustained solid base performance and better-than-expected contributions from new wells. These results enable the company to raise its full-year 2015 international and offshore pro forma production guidance to 172,000 to 174,000 boe per day, up from a previous range of 164,000 to 168,000 boe per day. This represents substantial year-over-year growth of 10 to 12 percent.

“2015 has been a year of tremendous change and progress for Apache,” Christmann remarked. “In addition to significantly improving our operational efficiencies, we have established a portfolio of leading positions in areas where we have best-in-class operating capabilities and a financial foundation that provides the strength and flexibility to take full advantage of a potentially lower-for-longer commodity cycle.

“As we turn to 2016, prudent capital allocation will continue to be our primary focus as we strive to spend within cash flows, enhance our returns and grow value for our shareholders. Longer-term, we have great confidence in the potential inherent in our portfolio. Our extensive, high-quality position in North American resource plays will continue to be the driver of our long-term growth. Our recent

APACHE CORPORATION ANNOUNCES THIRD-QUARTER FINANCIAL AND OPERATIONAL RESULTS

— PAGE 6 of 8

exploration successes in the North Sea and Egypt demonstrate the quality of our international assets and underpin their potential to sustain free cash flows for an extended period of time. It has been an extensive effort, and there is still more to do, but Apache is well-positioned for the future.”

Conference call

Apache Corporation (NYSE, Nasdaq: APA) will host a conference call Thursday, Nov. 5, 2015, to discuss its third-quarter 2015 financial results. The call will begin at 1 p.m. Central time (2 p.m. Eastern time). To access the live audio webcast, please visit Apache’s website at www.apachecorp.com.

A replay of the conference call will be available for seven days following the call. The number for the replay is 855-859-2056 or 404-537-3406 for international calls. The conference access code is 31407581.

Additional Information

Additional information follows, including reconciliations of adjusted earnings, adjusted EBITDA, and net debt (non-GAAP financial measures) to GAAP measures and information regarding pro forma production. Apache’s quarterly supplement is available at www.apachecorp.com/financialdata.

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 copies of 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 the Google Play Store.

APACHE CORPORATION ANNOUNCES THIRD-QUARTER FINANCIAL AND OPERATIONAL RESULTS

— PAGE 7 of 8

Non-GAAP financial measures

Apache’s financial information includes information prepared in conformity with generally accepted accounting standards (GAAP) as well as non-GAAP information. It is management’s intent to provide non-GAAP financial information to enhance understanding of our consolidated financial information as prepared in accordance with GAAP. Adjusted earnings, adjusted EBITDA, and net debt 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 Apache’s 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 2014 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.

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 SEC’s definitions for such terms. Apache may use certain terms in this earnings release operations supplement, 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 Apache’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2014, 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 SEC’s website at www.sec.gov.

Contacts


Investor:		(281) 302-2286 Gary Clark

APACHE CORPORATION ANNOUNCES THIRD-QUARTER FINANCIAL AND OPERATIONAL RESULTS

— PAGE 8 of 8


Media:		(713) 296-7189 Castlen Kennedy
		(713) 296-7276 Rory Sweeney

Website:		www.apachecorp.com

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,
	2015			2014			2015			2014
REVENUES AND OTHER:
Oil revenues	$	1,213		$	2,553		$	4,092		$	7,995
Gas revenues		309			451			904			1,516
NGL revenues		50			177			166			532

Oil and gas production revenues		1,572			3,181			5,162			10,043
Derivative instrument gains (losses), net		—			273			—			79
Other		(76	)		(13	)		(59	)		(4	)

		1,496			3,441			5,103			10,118

COSTS AND EXPENSES:
Depreciation, depletion and amortization
Oil and gas property and equipment
Recurring		829			1,086			2,751			3,182
Additional		5,721			1,562			18,757			1,765
Other assets		79			87			245			246
Asset retirement obligation accretion		37			39			109			115
Lease operating expenses		450			588			1,398			1,696
Gathering and transportation		58			67			163			203
Taxes other than income		104			124			232			482
Impairments		367			—			367			—
General and administrative		86			111			279			332
Transaction, reorganization & separation costs		—			34			120			66
Financing costs, net		107			60			240			157

		7,838			3,758			24,661			8,244

INCOME (LOSS) BEFORE INCOME TAXES		(6,342	)		(317	)		(19,558	)		1,874
Current income tax provision		(84	)		228			496			968
Deferred income tax provision (benefit)		(707	)		540			(5,167	)		684

INCOME (LOSS) FROM CONTINUING OPS INCLUDING NONCONTROLLING INTEREST		(5,551	)		(1,085	)		(14,887	)		222
Income (Loss) from discontinued operations, net of tax		(95	)		(156	)		(959	)		(516	)

INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST		(5,646	)		(1,241	)		(15,846	)		(294	)
Net income attributable to noncontrolling interest		9			89			60			295

INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK	$	(5,655	)	$	(1,330	)	$	(15,906	)	$	(589	)

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS
Net income (loss) from continuing operations attributable to common shareholders	$	(5,560	)	$	(1,174	)	$	(14,947	)	$	(73	)
Net income (loss) from discontinued operations		(95	)		(156	)		(959	)		(516	)

Net income (loss) attributable to common shareholders	$	(5,655	)	$	(1,330	)	$	(15,906	)	$	(589	)

BASIC NET INCOME (LOSS) PER COMMON SHARE:
Basic net income (loss) from continuing operations per share	$	(14.70	)	$	(3.08	)	$	(39.58	)	$	(0.19	)
Basic net income (loss) from discontinued operations per share		(0.25	)		(0.42	)		(2.54	)		(1.33	)

Basic net income (loss) per share	$	(14.95	)	$	(3.50	)	$	(42.12	)	$	(1.52	)

DILUTED NET INCOME (LOSS) PER COMMON SHARE:
Diluted net income (loss) from continuing operations per share	$	(14.70	)	$	(3.08	)	$	(39.58	)	$	(0.19	)
Diluted net income (loss) from discontinued operations per share		(0.25	)		(0.42	)		(2.54	)		(1.33	)

Diluted net income (loss) per share	$	(14.95	)	$	(3.50	)	$	(42.12	)	$	(1.52	)

WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic		378			381			378			387
Diluted		378			381			378			387

DIVIDENDS DECLARED PER COMMON SHARE	$	0.25		$	0.25		$	0.75		$	0.75

APACHE CORPORATION

PRODUCTION INFORMATION


							% Change
	3Q15		2Q15		3Q14		3Q15 to 2Q15			3Q15 to 3Q14			YTD 2015		YTD 2014
OIL VOLUME—Barrels per day
Permian		93,048		97,814		91,844		-5	%		1	%		95,103		90,249
MidContinent/Gulf Coast Region		21,486		24,431		35,789		-12	%		-40	%		24,052		33,816
Canada		14,795		15,791		17,672		-6	%		-16	%		15,812		17,748

N.A. Onshore		129,329		138,036		145,305		-6	%		-11	%		134,967		141,813
Gulf of Mexico		5,878		5,453		5,980		8	%		-2	%		5,739		6,386
GOM Shelf		—		—		—		—			—			—		224
Egypt ⁽¹⁾		91,132		99,975		87,499		-9	%		4	%		94,356		88,076
North Sea		58,330		58,873		55,247		-1	%		6	%		59,622		58,636

International & GOM ⁽¹⁾		155,340		164,301		148,726		-5	%		4	%		159,717		153,322

Total ⁽¹⁾		284,669		302,337		294,031		-6	%		-3	%		294,684		295,135

TOTAL LIQUIDS—Barrels per day
Permian		128,973		133,043		125,674		-3	%		3	%		128,178		119,702
MidContinent/Gulf Coast Region		39,808		43,623		62,675		-9	%		-36	%		42,786		60,498
Canada		21,235		21,616		23,053		-2	%		-8	%		21,853		24,097

N.A. Onshore		190,016		198,282		211,402		-4	%		-10	%		192,817		204,297
Gulf of Mexico		6,582		5,976		6,905		10	%		-5	%		6,331		7,360
GOM Shelf		—		—		71		—			NM			—		278
Egypt ⁽¹⁾		92,128		101,189		88,225		-9	%		4	%		95,436		88,692
North Sea		59,770		59,699		56,541		0	%		6	%		60,675		59,887

International & GOM ⁽¹⁾		158,480		166,864		151,742		-5	%		4	%		162,442		156,217

Total ⁽¹⁾		348,496		365,146		363,144		-5	%		-4	%		355,259		360,514

NATURAL GAS VOLUME—Mcf per day
Permian		246,141		234,379		216,804		5	%		14	%		232,603		215,289
MidContinent/Gulf Coast Region		179,578		192,219		343,153		-7	%		-48	%		189,823		354,409
Canada		270,027		282,971		300,803		-5	%		-10	%		280,120		331,470

N.A. Onshore		695,746		709,569		860,760		-2	%		-19	%		702,546		901,168
Gulf of Mexico		19,520		20,190		19,109		-3	%		2	%		20,224		19,379
GOM Shelf		—		—		122		—			NM			—		488
Egypt ⁽¹⁾		365,552		405,544		377,838		-10	%		-3	%		378,367		374,384
North Sea		81,392		56,367		50,647		44	%		61	%		62,848		50,209

International & GOM ⁽¹⁾		466,464		482,101		447,716		-3	%		4	%		461,439		444,460

Total ⁽¹⁾		1,162,210		1,191,670		1,308,476		-2	%		-11	%		1,163,985		1,345,628

BOE per day
Permian		169,997		172,106		161,808		-1	%		5	%		166,945		155,583
MidContinent/Gulf Coast Region		69,737		75,661		119,867		-8	%		-42	%		74,423		119,567
Canada		66,239		68,778		73,187		-4	%		-9	%		68,541		79,341

N.A. Onshore		305,973		316,545		354,862		-3	%		-14	%		309,909		354,491
Gulf of Mexico		9,835		9,340		10,090		5	%		-3	%		9,701		10,589
GOM Shelf		—		—		92		—			NM			—		360
Egypt ^{(1, 2)}		153,054		168,779		151,198		-9	%		1	%		158,498		151,090
North Sea		73,335		69,094		64,982		6	%		13	%		71,149		68,255

International & GOM ⁽¹⁾		236,224		247,213		226,362		-4	%		4	%		239,348		230,294

Total ⁽¹⁾		542,197		563,758		581,224		-4	%		-7	%		549,257		584,785

Total excluding noncontrolling interests		490,249		507,699		530,611		-3	%		-8	%		496,169		534,515

⁽¹⁾ Includes net production volumes attributed to our noncontrolling partner in Egypt below:
Oil (b/d)		30,671		33,247		29,201								31,530		29,259
Gas (Mcf/d)		125,657		134,445		127,020								127,186		124,836
NGL (b/d)		334		404		242								360		205

⁽²⁾ Egypt Gross Production—BOE per day		362,073		349,398		345,708		4	%		5	%		351,812		349,843

Discontinued Operations:
Oil (b/d)		—		9,849		22,014								10,175		20,086
Gas (Mcf/d)		—		149,336		201,386								125,831		255,762
NGL (b/d)		—		—		—								—		424
BOE/d		—		34,738		55,578								31,146		63,138

APACHE CORPORATION

PRO FORMA PRODUCTION INFORMATION

Pro forma production excludes certain items that management believes affect the comparability of operating results for the periods presented. Pro forma production excludes production attributable to 1) divested assets, 2) noncontrolling interest in Egypt, and 3) Egypt tax barrels. Management uses pro forma production to evaluate the company's operational trends and performance and believes it is useful to investors and other third parties.


							% Change
	3Q15		2Q15		3Q14		3Q15 to 2Q15			3Q15 to 3Q14			YTD 2015		YTD 2014
OIL VOLUME—Barrels per day
Permian		93,048		97,814		91,844		-5	%		1	%		95,103		90,249
MidContinent/Gulf Coast Region		21,441		24,452		22,639		-12	%		-5	%		24,036		20,509
Canada		14,795		15,776		17,657		-6	%		-16	%		15,789		17,629

N.A. Onshore		129,284		138,042		132,140		-6	%		-2	%		134,928		128,387

Gulf of Mexico		5,878		5,453		5,980		8	%		-2	%		5,739		6,386
Egypt		56,972		54,854		44,372		4	%		28	%		55,470		43,804
North Sea		58,330		58,164		53,287		0	%		9	%		58,765		55,774

International & GOM		121,180		118,471		103,639		2	%		17	%		119,974		105,964

Total		250,464		256,513		235,779		-2	%		6	%		254,902		234,351

TOTAL LIQUIDS—Barrels per day
Permian		128,973		133,043		125,674		-3	%		3	%		128,178		119,702
MidContinent/Gulf Coast Region		39,763		43,531		40,038		-9	%		-1	%		42,742		37,153
Canada		21,238		21,575		23,040		-2	%		-8	%		21,819		23,353

N.A. Onshore		189,974		198,149		188,752		-4	%		1	%		192,739		180,208

Gulf of Mexico		6,582		5,976		6,905		10	%		-5	%		6,331		7,360
Egypt		57,597		55,519		44,749		4	%		29	%		56,104		44,124
North Sea		59,770		58,966		54,506		1	%		10	%		59,794		56,860

International & GOM		123,949		120,461		106,160		3	%		17	%		122,229		108,344

Total		313,923		318,610		294,912		-1	%		6	%		314,968		288,552

NATURAL GAS VOLUME—Mcf per day
Permian		246,141		234,380		216,804		5	%		14	%		232,603		215,289
MidContinent/Gulf Coast Region		179,980		192,678		188,367		-7	%		-4	%		190,535		182,746
Canada		269,774		282,651		297,426		-5	%		-9	%		279,257		291,952

N.A. Onshore		695,895		709,709		702,597		-2	%		-1	%		702,395		689,987

Gulf of Mexico		19,520		20,190		19,109		-3	%		2	%		20,224		19,383
Egypt		238,104		233,095		192,484		2	%		24	%		231,636		189,054
North Sea		81,392		55,489		48,104		47	%		69	%		62,186		45,470

International & GOM		339,016		308,774		259,697		10	%		31	%		314,046		253,907

Total		1,034,911		1,018,483		962,294		2	%		8	%		1,016,441		943,894

BOE per day
Permian		169,997		172,106		161,808		-1	%		5	%		166,945		155,583
MidContinent/Gulf Coast Region		69,771		75,643		71,433		-8	%		-2	%		74,497		67,611
Canada		66,190		68,684		72,612		-4	%		-9	%		68,362		72,011

N.A. Onshore		305,958		316,433		305,853		-3	%		0	%		309,804		295,205

Gulf of Mexico		9,835		9,340		10,090		5	%		-3	%		9,701		10,590
Egypt		97,281		94,368		76,830		3	%		27	%		94,710		75,632
North Sea		73,335		68,214		62,522		8	%		17	%		70,159		64,438

International & GOM		180,451		171,922		149,442		5	%		21	%		174,570		150,660

Total		486,409		488,355		455,295		0	%		7	%		484,374		445,865

APACHE CORPORATION

PRICE INFORMATION


	3Q15		2Q15		3Q14		YTD 2015		YTD 2014
AVERAGE OIL PRICE PER BARREL
Permian	$	44.87	$	53.77	$	88.71	$	47.78	$	92.22
MidContinent/Gulf Coast Region		42.67		53.86		96.70		47.49		98.19
Canada		40.07		52.22		85.43		44.00		89.45
N.A. Onshore		43.98		53.56		90.30		47.28		93.32
Gulf of Mexico		45.30		57.69		97.86		49.42		100.74
Egypt		47.84		60.83		100.06		53.86		105.50
North Sea		49.46		64.03		95.80		54.42		104.13
Total		46.34		58.09		94.38		50.87		99.23

AVERAGE NATURAL GAS PRICE PER MCF
Permian	$	2.61	$	2.24	$	3.79	$	2.43	$	4.35
MidContinent/Gulf Coast Region		2.49		2.37		4.04		2.58		4.58
Canada		2.39		2.34		4.04		2.44		4.22
N.A. Onshore		2.46		2.31		3.97		2.45		4.41
Gulf of Mexico		2.75		2.61		3.50		2.76		4.31
Egypt		2.87		2.91		2.91		2.90		2.96
North Sea		6.41		7.35		6.10		6.95		8.06
Total		2.89		2.73		3.75		2.84		4.13

AVERAGE NGL PRICE PER BARREL
Permian	$	8.51	$	10.28	$	27.29	$	10.00	$	28.86
MidContinent/Gulf Coast Region		7.47		9.67		24.93		9.05		27.03
Canada		3.23		4.41		33.50		6.12		36.40
N.A. Onshore		7.63		9.52		26.83		9.29		28.84
Gulf of Mexico		11.44		14.72		34.44		13.12		32.67
Egypt		27.04		28.82		52.80		30.62		56.57
North Sea		25.61		30.94		59.47		26.76		66.18
Total		8.38		10.21		27.84		10.01		29.78

Discontinued Operations:
Oil price ($/Bbl)	$	—	$	63.60	$	98.82	$	49.76	$	103.57
Gas price ($/Mcf)		—		3.88		4.70		4.07		4.24
NGL price ($/Bbl)		—		—		—		—		24.57

APACHE CORPORATION

SUMMARY BALANCE SHEET INFORMATION

(Unaudited)

(In millions)


	September 30, 2015			December 31, 2014
Cash and Cash Equivalents	$	1,655		$	769
Assets Held for Sale		79			1,628
Other Current Assets		2,345			4,018
Property and Equipment, net		22,377			48,076
Goodwill		87			87
Other Assets		1,269			1,374

Total Assets	$	27,812		$	55,952

Current Liabilities	$	2,167		$	3,664
Long-Term Debt		8,777			11,245
Deferred Credits and Other Noncurrent Liabilities		4,896			12,906
Apache Shareholders' Equity		9,809			25,937
Noncontrolling interest		2,163			2,200

Total Liabilities and Shareholders' Equity	$	27,812		$	55,952

Common shares outstanding at end of period		378			377

% of total debt-to-capitalization		42	%		29	%

APACHE CORPORATION

SUMMARY OF COSTS INCURRED AND GTP CAPITAL INVESTMENTS

(Unaudited)

(In millions)


	For the Quarter Ended September 30,				For the Nine Months Ended September 30,
	2015		2014		2015		2014
Costs Incurred in Oil and Gas Property:
Acquisitions
Proved	$	2	$	98	$	2	$	103
Unproved		124		429		252		552
Exploration and Development		860		2,538		3,301		7,524

		986		3,065		3,555		8,179

GTP Capital Investments:
GTP Facilities		13		300		273		1,022

Total Costs Incurred and GTP Capital Investments	$	999	$	3,365	$	3,828	$	9,201

APACHE CORPORATION

NON-GAAP FINANCIAL MEASURES

(In millions, except per share data)

Reconciliation of income attributable to common stock to adjusted earnings

Adjusted earnings and adjusted earnings per share are non-GAAP financial measures. Adjusted earnings generally exclude certain items that management believes affect the comparability of operating results or are not related to Apache’s ongoing operations. Management uses adjusted earnings to evaluate the company's operational trends and performance relative to other oil and gas 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.


	For the Quarter Ended September 30,						For the Nine Months Ended September 30,
	2015			2014			2015			2014
Income (Loss) Attributable to Common Stock (GAAP)	$	(5,655	)	$	(1,330	)	$	(15,906	)	$	(589	)

Adjustments:
Oil & gas property write-downs, net of tax		3,716			1,002			12,155			1,079
Tax adjustments ⁽¹⁾		1,472			821			2,229			816
Discontinued operations, net of tax		95			156			959			516
Impairments, net of tax		300			—			300			—
Transaction, reorganization & separation costs, net of tax		—			22			78			43
Contract termination charges, net of tax		26			18			54			27
Loss on extinguishment of debt, net of tax		25			—			25			—
Unrealized commodity derivative mark-to-market, net of tax		—			(202	)		—			(220	)

Adjusted Earnings (Non-GAAP)	$	(21	)	$	487		$	(106	)	$	1,672

Net Income (Loss) per Common Share—Diluted (GAAP)	$	(14.95	)	$	(3.50	)	$	(42.12	)	$	(1.52	)

Adjustments:
Oil & gas property write-downs, net of tax		9.83			2.62			32.18			2.78
Tax adjustments ⁽¹⁾		3.89			2.14			5.90			2.10
Discontinued operations, net of tax		0.25			0.42			2.54			1.33
Impairments, net of tax		0.79			—			0.79			—
Transaction, reorganization & separation costs, net of tax		—			0.06			0.21			0.11
Contract termination charges, net of tax		0.07			0.05			0.15			0.07
Loss on extinguishment of debt, net of tax		0.07			—			0.07			—
Unrealized commodity derivative mark-to-market, net of tax		—			(0.52	)		—			(0.57	)

Adjusted Earnings Per Share—Diluted (Non-GAAP)	$	(0.05	)	$	1.27		$	(0.28	)	$	4.30

Total income tax provision (GAAP)	$	(791	)	$	768		$	(4,671	)	$	1,652

Adjustments:
Tax impact on oil & gas property write-downs		2,005			560			6,602			686
Tax impact on impairments		67			—			67			—
Tax impact on transaction, reorganization & separation costs		—			12			42			23
Tax impact on contract termination charges		15			9			30			15
Tax impact on extinguishment of debt		14			—			14			—
Tax impact on unrealized commodity derivative mark-to-market		—			(111	)		—			(121	)
Tax adjustments ⁽¹⁾		(1,472	)		(821	)		(2,229	)		(816	)

Adjusted total income tax provision	$	(162	)	$	417		$	(145	)	$	1,439

Adjusted Effective Tax Rate (Non-GAAP)		NM			42.0	%		NM			42.3	%

⁽¹⁾	Tax adjustments are primarily related to valuation allowances associated with projected utilization of the Company's foreign tax credit carryforward. The valuation allowances were partially offset by $619 million in benefits for the North Sea tax rate change in the first quarter of 2015.

APACHE CORPORATION

NON-GAAP FINANCIAL MEASURES

(In millions, except per share data)

Reconciliation of income (loss) before taxes to adjusted EBITDA

Adjusted EBITDA is a non-GAAP financial measure. EBITDA is a widely accepted financial indicator of a company's ability to incur and service debt, fund capital expenditures, and make distributions to shareholders. Adjusted EBITDA generally excludes certain items that management believes affect the comparability of operating results or are not related to Apache’s ongoing operations. Management uses adjusted EBITDA to evaluate the company's operational trends and performance relative to other oil and gas companies.


	For the Quarter Ended September 30,						For the Nine Months Ended September 30,
	2015			2014			2015			2014
Income (loss) before income taxes	$	(6,342	)	$	(317	)	$	(19,558	)	$	1,874

Adjustments:
Depreciation, depletion and amortization
Oil and gas property and equipment
Recurring		829			1,086			2,751			3,182
Additional		5,721			1,562			18,757			1,765
Other assets		79			87			245			246
Asset retirement obligation accretion		37			39			109			115
Impairments		367			—			367			—
Transaction, reorganization & separation costs		—			34			120			66
Financing costs, net		107			60			240			157
Contract termination charges		41			28			84			42
Unrealized commodity derivative mark-to-market		—			(314	)		—			(341	)
Less: net income attributable to noncontrolling interests		(9	)		(89	)		(60	)		(295	)

Adjusted EBITDA (Non-GAAP)	$	830		$	2,176		$	3,055		$	6,811

Reconciliation of debt to net debt

Net debt is a non-GAAP financial measure. Management uses net debt as a measure of the Company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivelents on hand.


	September 30, 2015		June 30, 2015		March 31, 2015		December 31, 2014
Current debt	$	—	$	—	$	2,598	$	—
Long-term debt		8,777		9,676		9,675		11,245

Total debt		8,777		9,676		12,273		11,245
Cash		1,655		2,950		229		769

Net debt	$	7,122	$	6,726	$	12,044	$	10,476

APACHE CORP - FORM 8-K - EX-99.1 - November 5, 2015

Attached files

APACHE CORP Reports