Apache Corporation announces second-quarter financial and operational results

- Increased onshore North American production 3 percent sequentially to approximately 317,000 barrels of oil equivalent (boe) per day, driven by a 13,500-boe-per-day increase in Permian Basin production.

- Delivered International and Offshore production (adjusted for divestitures, Egypt tax barrels and minority interest) of 172,000 boe per day, with strong contributions from recent Egyptian oil discoveries.

- Exited the second quarter with total debt of $9.7 billion and $3.0 billion of cash, a significant improvement from $12.3 billion of total debt and $200 million of cash at March 31, 2015.

- Raising 2015 onshore North American production guidance from flat year over year to up 1 to 2 percent, which brings full-year guidance to 305,000 to 308,000 boe per day.

- Updating 2015 International and Offshore production guidance (adjusted for divestitures, Egypt tax barrels and minority interest) to 164,000 to 168,000 boe per day, a 5 to 8 percent increase over 2014 pro forma production, and up from the previous guidance of a 'slight increase'.

Aug 06, 2015, 10:04 ET from Apache Corporation

HOUSTON, Aug. 6, 2015 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA) today announced a second-quarter 2015 net loss of $5.6 billion, or $14.83 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 $1.9 billion of other items, mostly after-tax losses and tax expense associated with the company's assets sold during the quarter. When adjusted for certain items that impact the comparability of results, Apache's second-quarter net income totaled $82 million, or $0.22 per share. Adjusted EBITDA from continuing operations was $1.3 billion. Worldwide reported production for the second quarter was 564,000 boe per day. Including 35,000 boe per day of production associated with discontinued operations in Australia, Apache's total production was 599,000 boe per day.

"I am pleased to report that Apache made excellent progress toward achieving the ambitious 2015 goals we laid out earlier this year," said John J. Christmann, IV, Apache's chief executive officer and president. "In February, we established a plan to maintain relatively flat pro forma production in 2015, despite an aggressive 60 percent reduction in budgeted capital expenditures from 2014 levels. Year to date, our capital spending remains on track, but we have exceeded our production plan in the first half of 2015 and delivered correspondingly strong cash flow from continuing operations. As a result, we are raising our 2015 production guidance."

During the quarter, Apache closed the sales of its LNG business and its remaining oil and gas assets in Australia, which served to more strategically align the company's portfolio with its core competencies. "Exiting these businesses eliminated our exposure to projects with large capital-spending commitments and uncertain project timing," Christmann said. "We deployed a portion of the proceeds from these sales to pay down debt, leaving our balance sheet in excellent shape and positioning us for success in this low-commodity-price environment. Importantly, during the first half of 2015, we quickly and cost effectively reduced our drilling and completion activity, commensurate with the deteriorating oil-and-gas price environment. We have also restructured our operational organization to better align with and support our more focused asset base."

Apache has made significant progress on its cost structure through widespread efforts across the organization. In North America, the company is now realizing a 25 percent reduction in average per-well drilling and completion costs year over year. Lease-operating costs per barrel of oil equivalent during the quarter were down approximately 13 percent year over year, and we have taken steps to significantly reduce G&A from the beginning of the year that will be fully realized in 2016.

Asset-sale proceeds and liquidity

Apache received $5.7 billion in proceeds during the second quarter from the sales of its LNG interests and oil and gas properties in Australia and Canada, of which a portion was used to repay $2.7 billion of outstanding commercial paper and short-term credit facilities. At June 30, Apache's long-term debt was $9.7 billion, and cash was approximately $3 billion. The company has excellent liquidity with low-cost, short-term borrowing capacity of $3.5 billion under its commercial paper program, which is supported by a senior credit facility that now extends through June 2020.

Overhead-cost reductions and organizational restructuring

Management has taken a proactive and disciplined approach toward improving Apache's organizational structure and efficiency. During the quarter, the company announced and implemented key organizational changes to better align its operational and technical teams with its refocused asset base. These changes include transitioning to an operating structure that will enable the allocation of resources and personnel quickly and efficiently in response to changing industry conditions. In addition, Apache has consolidated its technical expertise into centers of excellence, which will support the operating regions and strengthen the ability to share best practices around the globe.

Christmann noted, "We are implementing multiple overhead-reduction initiatives throughout the year and are on track to achieve a 25 to 30 percent reduction in cash G&A costs by year-end. We continue to work to identify further savings." Following asset divestments and other initiatives to streamline the organization, headcount has been reduced by approximately 20 percent since the end of 2014.

Second-quarter capital spending and activity

Total capital expenditures (before leasehold acquisitions, capitalized interest, noncontrolling interest, LNG and Australia discontinued operations) in the second quarter were $857 million, down 28 percent from the first quarter. Apache operated an average of 34 rigs, drilled 78 wells and completed 108 wells during the second quarter, down from 61, 119 and 175, respectively, during the first quarter.

Second-quarter 2015 regional activity

  • Permian – Apache operated 10 rigs in the Permian and completed 53 wells during the second quarter, down from 15 operated rigs and 88 well completions in the first quarter. Production averaged 172,000 boe per day, nearly 9 percent higher than the first quarter.
    • Delaware Basin – Apache averaged five rigs, unchanged from the prior quarter, and targeted the Bone Spring and Wolfcamp formations in the Pecos Bend and Waha areas. Completions in the Pecos Bend area exhibited very high deliverability and added approximately 4,000 boe per day, which helped drive overall Permian growth in the quarter.
    • Midland Basin – Apache averaged three rigs during the quarter, all targeting its southern Midland focus areas in Glasscock, Reagan, Upton and Midland counties. The company completed 20 wells during the quarter with notable results coming from the Upper Wolfcamp in the Wildfire area of Midland County and in the SRH area of northern Reagan County. Apache also had strong results from nine well completions in the Barnhart area.
    • Central Basin Platform/NW Shelf – Apache averaged two rigs during the quarter targeting the Yeso formation in its Cedar Lake play in Eddy County. In addition, the company has several high-rate-of-return, low-capital-cost initiatives underway in its CO2 and waterflood project areas that are helping to mitigate regional production declines.
  • Midcontinent (formerly Central) – During the quarter, Apache ramped down to two rigs in the Midcontinent, where it targeted the Woodford/SCOOP, Canyon Lime and Marmaton plays. Production declined 7 percent, or 4,700 boe per day, sequentially as a result of declining completion activity.
  • Gulf Coast (Eagle Ford) – Apache ramped down from an average of four rigs in the first quarter to zero during the second quarter. Production increased 20 percent, or 2,400 boe per day, sequentially as four new high-volume wells were placed on production. In the Ferguson Crossing area, the company placed on production its two most prolific wells in the play to date. The Walker 1H and 3H wells averaged 1,935 boe per day in their first 30 days of production, significantly exceeding Apache's "Area A" type curve. The strong well results were the product of optimized frac design, spacing, fluid composition and proppant type.
  • Canada – Production was down 3 percent, or 1,900 boe per day, sequentially, which was a lower-than-expected decline, resulting primarily from decreased operational downtime and better well performance.
  • Egypt – Gross production was up 2 percent sequentially on strong delineation-drilling results at the Ptah and Berenice oil fields. Apache also made several new field discoveries across multiple concessions during the second quarter, which increases its confidence in Egypt's oil-production outlook for the remainder of 2015. In the second quarter, Apache drilled nine exploration wells with a success rate of 78 percent, significantly above its historical average exploration-success rate.
  • North Sea – Production decreased modestly from first-quarter levels as the company performed two significant seasonal platform-maintenance turnarounds during the quarter. Absent the maintenance turnaround, which impacted production by approximately 3,300 boe per day, production would have been up sequentially in the second quarter. Apache drilled eight new wells in the North Sea with a 90 percent success rate, including its first-ever subsea-tieback exploration well in the Beryl area.

"Apache's second-quarter production performance was very strong both domestically and internationally," Christmann remarked. "In North America, all of our key operating areas exceeded our expectations, and we delivered these results on a disciplined capital budget. Internationally, our drilling-success rate in Egypt and the North Sea was well above our historical success rate. As a result, we are raising our full-year 2015 North American production guidance to 305,000 to 308,000 boe per day and are updating our International and Offshore production guidance to a range of 164,000 to 168,000 boe per day. We are also tightening our 2015 capital-budget guidance range from $3.4 to $3.9 billion to $3.6 to $3.9 billion."

2015 planned activity increase

Greater capital efficiencies and lower costs are enabling the company to increase its onshore North American activity levels in the second half of the year. In North America, the company plans to average approximately 16 rigs in the second half of the year, 13 of which will be in the Permian Basin. Apache expects to reach total depth on an additional 40 to 50 wells and complete an additional 30 to 35 wells beyond its original plan for 2015. The company continues to anticipate that it will have a backlog of 80 to 100 drilled-but-uncompleted wells in North America at the end of 2015.

"This increase in activity during the second half of 2015 is not expected to have a material impact on our full-year 2015 production; however, it will establish a positive production trajectory in the fourth quarter and heading in to 2016," Christmann concluded.

Conference call

Apache Corporation (NYSE, Nasdaq: APA) will host a conference call Thursday, Aug. 6, 2015, to discuss its second-quarter 2015 financial results. The call will begin at 1 p.m. CT (2 p.m. ET). 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 31405369.

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, 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.

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.

Website: www.apachecorp.com

 

APACHE CORPORATION

STATEMENT OF CONSOLIDATED OPERATIONS

(Unaudited)

(In millions, except per share data)

For the Quarter

For the Six Months

Ended June 30,

Ended June 30,

2015

2014

2015

2014

REVENUES AND OTHER:

Oil revenues

$                    1,599

$                    2,797

$                    2,879

$                    5,442

Gas revenues

295

505

595

1,065

NGL revenues

58

169

116

355

Oil and gas production revenues

1,952

3,471

3,590

6,862

Derivative instrument gains (losses), net

-

(174)

-

(194)

Other 

25

(8)

17

9

1,977

3,289

3,607

6,677

COSTS AND EXPENSES:

Depreciation, depletion and amortization

Oil and gas property and equipment

    Recurring

923

1,074

1,922

2,096

    Additional

5,816

203

13,036

203

Other assets

83

81

166

159

Asset retirement obligation accretion

36

38

72

76

Lease operating expenses

467

560

948

1,108

Gathering and transportation 

49

66

105

136

Taxes other than income

55

177

128

358

General and administrative

111

113

193

221

Transaction, reorganization & separation costs

66

14

120

32

Financing costs, net

63

52

133

97

7,669

2,378

16,823

4,486

INCOME (LOSS) BEFORE INCOME TAXES

(5,692)

911

(13,216)

2,191

Current income tax provision 

665

373

580

740

Deferred income tax provision (benefit)

(1,525)

(19)

(4,460)

144

INCOME (LOSS) FROM CONTINUING OPS INCLUDING NONCONTROLLING INTEREST

(4,832)

557

(9,336)

1,307

Income (Loss) from discontinued operations, net of tax

(732)

56

(864)

(360)

INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST

(5,564)

613

(10,200)

947

Net income attributable to noncontrolling interest

36

108

51

206

INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK

$                  (5,600)

$                       505

$                (10,251)

$                       741

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS

Net income (loss) from continuing operations attributable to common shareholders

$                  (4,868)

$                       449

$                  (9,387)

$                    1,101

Net income (loss) from discontinued operations

(732)

56

(864)

(360)

Net income (loss) attributable to common shareholders

$                  (5,600)

$                       505

$                (10,251)

$                       741

BASIC NET INCOME (LOSS) PER COMMON SHARE:

Basic net income (loss) from continuing operations per share

$                  (12.89)

$                      1.17

$                  (24.88)

$                      2.83

Basic net income (loss) from discontinued operations per share

(1.94)

0.14

(2.29)

(0.93)

Basic net income (loss) per share

$                  (14.83)

$                      1.31

$                  (27.17)

$                      1.90

DILUTED NET INCOME (LOSS) PER COMMON SHARE:

Diluted net income (loss) from continuing operations per share

$                  (12.89)

$                      1.17

$                  (24.88)

$                      2.82

Diluted net income (loss) from discontinued operations per share

(1.94)

0.14

(2.29)

(0.93)

Diluted net income (loss) per share

$                  (14.83)

$                      1.31

$                  (27.17)

$                      1.89

WEIGHTED-AVERAGE NUMBER OF COMMON 

   SHARES OUTSTANDING:

Basic

378

385

377

390

Diluted

378

387

377

392

DIVIDENDS DECLARED PER COMMON SHARE

$                      0.25

$                      0.25

$                      0.50

$                      0.50

 

APACHE CORPORATION

PRODUCTION INFORMATION

% Change

2Q15

1Q15

2Q14

2Q15 to 1Q15

2Q15 to 2Q14

YTD 2015

YTD 2014

OIL VOLUME - Barrels per day

Permian

97,814

94,461

90,536

4%

8%

96,146

89,437

Midcontinent (formerly Central)

16,491

18,509

21,987

-11%

-25%

17,495

21,837

Gulf Coast

7,940

7,784

10,977

2%

-28%

7,862

10,976

Canada

15,791

16,875

17,981

-6%

-12%

16,330

17,786

N.A. Onshore

138,036

137,629

141,481

0%

-2%

137,833

140,036

Gulf of Mexico

5,453

5,885

6,896

-7%

-21%

5,668

6,592

GOM Shelf

-

-

2

NM

NM

-

339

Egypt (1)

99,975

91,971

88,643

9%

13%

95,995

88,370

North Sea

58,873

61,699

61,610

-5%

-4%

60,279

60,358

International and Offshore (1)

164,301

159,555

157,151

3%

5%

161,942

155,659

Total (1)

302,337

297,184

298,632

2%

1%

299,775

295,695

TOTAL LIQUIDS - Barrels per day

Permian

133,043

122,445

119,712

9%

11%

127,773

116,666

Midcontinent

32,359

34,654

45,725

-7%

-29%

33,501

45,931

Gulf Coast

11,264

10,328

13,522

9%

-17%

10,798

13,460

Canada

21,616

22,728

23,902

-5%

-10%

22,169

24,626

N.A. Onshore

198,282

190,155

202,861

4%

-2%

194,241

200,683

Gulf of Mexico

5,976

6,433

8,062

-7%

-26%

6,203

7,591

GOM Shelf

-

-

2

NM

NM

-

384

Egypt (1)

101,189

93,002

89,527

9%

13%

97,118

88,930

North Sea

59,699

62,585

62,977

-5%

-5%

61,135

61,588

International and Offshore (1)

166,864

162,020

160,568

3%

4%

164,456

158,493

Total (1)

365,146

352,175

363,429

4%

0%

358,697

359,176

NATURAL GAS VOLUME - Mcf per day

Permian

234,379

216,968

213,192

8%

10%

225,722

214,519

Midcontinent

175,967

190,214

264,948

-7%

-34%

183,051

262,636

Gulf Coast

16,252

7,659

95,765

112%

-83%

11,979

97,494

Canada

282,971

287,556

316,740

-2%

-11%

285,251

347,057

N.A. Onshore

709,569

702,397

890,645

1%

-20%

706,003

921,706

Gulf of Mexico

20,190

20,977

22,804

-4%

-11%

20,581

19,517

GOM Shelf

-

-

261

NM

NM

-

674

Egypt (1)

405,544

363,989

367,950

11%

10%

384,881

372,628

North Sea

56,367

50,445

54,848

12%

3%

53,423

49,986

International and Offshore (1)

482,101

435,411

445,863

11%

8%

458,885

442,805

Total (1)

1,191,670

1,137,808

1,336,508

5%

-11%

1,164,888

1,364,511

  BOE per day

Permian

172,106

158,606

155,244

9%

11%

165,394

152,420

Midcontinent

61,688

66,357

89,883

-7%

-31%

64,009

89,704

Gulf Coast

13,973

11,604

29,483

20%

-53%

12,795

29,710

Canada

68,778

70,653

76,692

-3%

-10%

69,711

82,469

N.A. Onshore

316,545

307,220

351,302

3%

-10%

311,909

354,303

Gulf of Mexico

9,340

9,930

11,862

-6%

-21%

9,633

10,843

GOM Shelf

-

-

46

NM

NM

-

496

Egypt (1, 2)

168,779

153,667

150,853

10%

12%

161,264

151,035

North Sea

69,094

70,993

72,118

-3%

-4%

70,038

69,918

International and Offshore (1)

247,213

234,590

234,879

5%

5%

240,935

232,292

Total (1)

563,758

541,810

586,181

4%

-4%

552,844

586,595

Total excluding noncontrolling interests

507,699

490,561

535,934

3%

-5%

499,177

536,499

(1)Includes net production volumes attributed to our noncontrolling partner in Egypt below:

Oil (b/d)

33,247

30,671

29,508

31,966

29,288

Gas (Mcf/d)

134,445

121,408

122,665

127,963

123,726

NGL (b/d)

404

343

295

374

187

(2)Egypt Gross Production - BOE per day 

349,398

343,762

351,059

2%

0%

346,597

351,944

Discontinued Operations:

Oil (b/d)

9,849

20,905

14,555

15,346

19,107

Gas (Mcf/d)

149,336

230,691

210,470

189,789

283,402

NGL (b/d)

-

-

-

-

640

BOE/d

34,738

59,353

49,633

46,978

66,981

 

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

2Q15

1Q15

2Q14

2Q15 to 1Q15

2Q15 to 2Q14

YTD 2015

YTD 2014

  OIL VOLUME - Barrels per day

Permian

97,814

94,461

90,536

4%

8%

96,146

89,437

Midcontinent (formerly Central)

16,515

18,514

17,222

-11%

-4%

17,509

16,553

Gulf Coast

7,937

7,752

2,893

2%

174%

7,845

2,873

Canada

15,776

16,817

17,817

-6%

-11%

16,294

17,614

N.A. Onshore

138,042

137,544

128,468

0%

7%

137,794

126,477

Gulf of Mexico

5,453

5,885

6,896

-7%

-21%

5,668

6,592

Egypt

54,977

54,558

43,117

1%

28%

54,769

43,514

North Sea

58,164

59,818

58,971

-3%

-1%

58,986

57,039

International and Offshore 

118,594

120,261

108,984

-1%

9%

119,423

107,145

Total

256,636

257,805

237,452

0%

8%

257,217

233,622

  TOTAL LIQUIDS - Barrels per day

Permian

133,043

122,445

119,712

9%

11%

127,773

116,665

Midcontinent

32,265

34,773

32,990

-7%

-2%

33,512

32,116

Gulf Coast

11,266

10,204

3,712

10%

204%

10,738

3,571

Canada

21,575

22,670

23,257

-5%

-7%

22,120

23,511

N.A. Onshore

198,149

190,092

179,671

4%

10%

194,143

175,863

Gulf of Mexico

5,976

6,433

8,062

-7%

-26%

6,203

7,591

Egypt

55,648

55,170

43,572

1%

28%

55,411

43,805

North Sea

58,966

60,657

60,169

-3%

-2%

59,807

58,057

International and Offshore 

120,590

122,260

111,803

-1%

8%

121,421

109,453

Total

318,739

312,352

291,474

2%

9%

315,564

285,316

  NATURAL GAS VOLUME - Mcf per day

Permian

234,380

216,968

213,192

8%

10%

225,721

214,519

Midcontinent

176,345

189,967

175,416

-7%

1%

183,119

170,782

Gulf Coast

16,333

9,190

8,892

78%

84%

12,781

9,107

Canada

282,651

285,520

287,603

-1%

-2%

284,078

289,169

N.A. Onshore

709,709

701,645

685,103

1%

4%

705,699

683,577

Gulf of Mexico

20,190

20,977

22,817

-4%

-12%

20,581

19,523

Egypt

233,797

223,548

181,791

5%

29%

228,701

187,310

North Sea

55,489

49,325

50,541

12%

10%

52,424

44,130

International and Offshore 

309,476

293,850

255,149

5%

21%

301,706

250,963

Total

1,019,185

995,495

940,252

2%

8%

1,007,405

934,540

  BOE per day

Permian

172,106

158,606

155,244

9%

11%

165,393

152,419

Midcontinent

61,655

66,435

62,225

-7%

-1%

64,032

60,580

Gulf Coast

13,988

11,736

5,194

19%

169%

12,868

5,089

Canada

68,684

70,257

71,191

-2%

-4%

69,466

71,706

N.A. Onshore

316,433

307,034

293,854

3%

8%

311,759

289,794

Gulf of Mexico

9,340

9,930

11,865

-6%

-21%

9,633

10,845

Egypt

94,615

92,428

73,871

2%

28%

93,527

75,023

North Sea

68,214

68,878

68,592

-1%

-1%

68,544

65,412

International and Offshore 

172,169

171,236

154,328

1%

12%

171,704

151,280

Total

488,602

478,270

448,182

2%

9%

483,463

441,074

 

 

APACHE CORPORATION

PRICE INFORMATION

2Q15

1Q15

2Q14

YTD 2015

YTD 2014

AVERAGE OIL PRICE PER BARREL

Permian

$        53.77

$        44.44

$        94.33

$        49.21

$        94.05

Midcontinent (formerly Central)

52.46

44.50

100.39

48.27

97.10

Gulf Coast

56.79

47.92

103.81

52.42

102.84

Canada

52.22

39.76

94.66

45.81

91.47

N.A. Onshore

53.56

44.07

96.06

48.85

94.91

Gulf of Mexico

57.69

45.87

102.63

51.59

102.06

Egypt

60.83

52.29

109.74

56.76

108.24

North Sea

64.03

49.95

109.33

56.86

108.00

Total

58.09

47.87

102.95

53.05

101.69

AVERAGE NATURAL GAS PRICE PER MCF

Permian

$           2.24

$           2.44

$           4.48

$           2.33

$           4.63

Midcontinent

2.41

2.93

4.49

2.68

4.84

Gulf Coast

1.93

1.42

4.72

1.77

4.83

Canada

2.34

2.58

4.21

2.46

4.30

N.A. Onshore

2.31

2.60

4.41

2.45

4.62

Gulf of Mexico

2.61

2.92

4.35

2.77

4.71

Egypt

2.91

2.92

2.96

2.92

2.99

North Sea

7.35

7.40

7.75

7.37

9.07

Total

2.73

2.93

4.15

2.82

4.31

AVERAGE NGL PRICE PER BARREL

Permian

$        10.28

$        11.62

$        28.46

$        10.87

$        29.85

Midcontinent

8.82

9.65

25.03

9.23

27.74

Gulf Coast

13.75

12.17

27.86

13.07

31.76

Canada

4.41

11.09

31.67

7.74

37.56

N.A. Onshore

9.52

10.98

27.42

10.20

29.96

Gulf of Mexico

14.72

13.77

31.73

14.24

31.84

Egypt

28.82

36.29

57.67

32.23

59.05

North Sea

30.94

24.74

61.81

27.75

69.77

Total

10.21

11.71

28.64

10.91

30.86

Discontinued Operations:

Oil price ($/Bbl)

$        63.60

$        43.17

$      115.34

$        49.76

$      106.35

Gas price ($/Mcf)

3.88

4.19

4.40

4.07

4.07

NGL price ($/Bbl)

-

-

-

-

24.57

 

APACHE CORPORATION

SUMMARY BALANCE SHEET INFORMATION

(Unaudited)

(In millions)

June 30,

December 31,

2015

2014

Cash and Cash Equivalents

$                    2,950

$                       769

Assets Held for Sale

-

1,628

Other Current Assets 

2,543

4,018

Property and Equipment, net

28,315

48,076

Goodwill

87

87

Other Assets

1,417

1,374

Total Assets

$                 35,312

$                 55,952

Other Current Liabilities

$                   2,383

$                   3,664

Long-Term Debt

9,676

11,245

Deferred Credits and Other Noncurrent Liabilities

5,498

12,906

Apache Shareholders' Equity

15,544

25,937

Noncontrolling interest

2,211

2,200

Total Liabilities and Shareholders' Equity

$                 35,312

$                 55,952

Common shares outstanding at end of period

377

377

% of total debt-to-capitalization

35%

29%

 

APACHE CORPORATION

SUMMARY OF COSTS INCURRED AND GTP CAPITAL INVESTMENTS

(Unaudited)

(In millions)

For the Quarter

For the Six Months

Ended June 30,

Ended June 30,

2015

2014

2015

2014

Costs Incurred in Oil and Gas Property:

Acquisitions

Proved

$                           -

$                            3

$                           -

$                            5

Unproved

36

79

128

123

Exploration and Development

1,023

2,475

2,441

4,984

1,059

2,557

2,569

5,112

GTP Capital Investments:

GTP Facilities

36

378

260

723

Total Costs Incurred and GTP Capital Investments

$                    1,095

$                    2,935

$                    2,829

$                    5,835

 

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 

For the Six Months

Ended June 30,

Ended June 30,

2015

2014

2015

2014

Income (Loss) Attributable to Common Stock (GAAP)

$        (5,600)

$              505

$       (10,251)

$              741

Adjustments:

Oil & gas property write-downs, net of tax

3,734

77

8,438

77

Discontinued operations, net of tax

732

(56)

864

360

Tax adjustments (1)

1,173

-

758

(5)

Transaction, reorganization & separation costs, net of tax

43

9

78

21

Rig stacking costs, net of tax

-

10

28

10

Unrealized commodity derivative mark-to-market, net of tax

-

31

-

(18)

Adjusted Earnings  (Non-GAAP)

$                82

$              576

$               (85)

$           1,186

Net Income (Loss) per Common Share - Diluted (GAAP)

$         (14.83)

$             1.31

$         (27.17)

$             1.89

Adjustments:

Oil & gas property write-downs, net of tax

9.87

0.20

22.37

0.20

Discontinued operations, net of tax

1.94

(0.14)

2.29

0.92

Tax adjustments (1)

3.12

-

2.00

(0.01)

Transaction, reorganization & separation costs, net of tax

0.12

0.02

0.21

0.05

Rig stacking costs, net of tax

-

0.02

0.07

0.02

Unrealized commodity derivative mark-to-market, net of tax

-

0.08

-

(0.04)

Adjusted Earnings Per Share - Diluted (Non-GAAP)

$             0.22

$             1.49

$           (0.23)

$             3.03

Total income tax provision (GAAP)

$            (860)

$              354

$         (3,880)

$              884

Adjustments:

Tax impact on oil & gas property write-downs

2,081

126

4,597

126

Tax impact on transaction, reorganization & separation costs

23

5

41

11

Tax impact on rig stacking costs

-

5

15

5

Tax impact on unrealized commodity derivative mark-to-market

-

18

-

(9)

Tax adjustments (1)

(1,173)

-

(758)

5

Adjusted total income tax provision

$                71

$              508

$                15

$           1,022

Adjusted Effective Tax Rate (Non-GAAP)

37.6%

42.7%

NM

42.3%

(1)

Tax adjustments are primarily related to a Canada valuation allowance and 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 

For the Six Months

Ended June 30,

Ended June 30,

2015

2014

2015

2014

Income (loss) before income taxes

$         (5,692)

$              911

$       (13,216)

$           2,191

Adjustments:

Depreciation, depletion and amortization

Oil and gas property and equipment

    Recurring

923

1,074

1,922

2,096

    Additional

5,816

203

13,036

203

Other assets

83

81

166

159

Asset retirement obligation accretion

36

38

72

76

Transaction, reorganization & separation costs

66

14

120

32

Financing costs, net

63

52

133

97

Rig stacking costs

-

15

43

15

Unrealized commodity derivative mark-to-market

-

48

-

(27)

Less: net income attributable to noncontrolling interests

(36)

(108)

(51)

(206)

Adjusted EBITDA  (Non-GAAP)

$           1,259

$           2,328

$           2,225

$           4,636

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.

June 30,

March 31,

December 31,

2015

2015

2014

Current debt

$                    -

$           2,598

$                    -

Long-term debt

9,676

9,675

11,245

Total debt

9,676

12,273

11,245

Cash

2,950

229

769

Net debt

$           6,726

$        12,044

$        10,476

 

 

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APA-F

 

SOURCE Apache Corporation



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