Apache Reports Record First Quarter Earnings of $2.24 Per Share, Up 143%

Cash From Operations Passes Half-Billion-Dollar Mark on 21% Higher Production,

Strong Commodity Prices



Apr 26, 2001, 01:00 ET from Apache Corporation

    HOUSTON, April 26 /PRNewswire/ -- Apache Corporation (NYSE:   APA) today
 reported that favorable prices applied to higher oil and natural gas
 production resulted in record basic net income of $2.24 per common share, up
 from 92 cents per common share in the prior-year period.  Net income totaled
 $277.3 million, up from $104.2 million.
     Cash from operations rose 85 percent to $557 million, compared with
 $300.8 million in the year-earlier period.  Revenues increased 77 percent to
 $795.1 million.
     Natural gas production increased 33 percent to a record 988 million cubic
 feet (MMcf) per day while average gas realizations climbed 124 percent to
 $5.65 per thousand cubic feet (Mcf).  Liquid hydrocarbon production increased
 8 percent to 130,338 barrels per day, also a record, at a time of continuing
 strong prices.
     During the first quarter, Apache completed its purchases of Repsol YPF's
 Egyptian interests and Fletcher Challenge Energy's subsidiaries with interests
 in Canada and Argentina.
     "Factoring in the two acquisitions closed at the end of the quarter and
 added production from our successful first-quarter drilling program, Apache
 expects a sizeable production increase in the second quarter," said Raymond
 Plank, chairman and chief executive officer.
     Apache's exploration and development budget for 2001 is $1.2 billion,
 including aggressive exploration programs in Egypt, Australia and Canada.
     "Apache's fast start to the year, rising production and favorable price
 signals point to another rewarding year for our shareholders," Plank said.
     Despite first-quarter capital investments of $1.4 billion, Apache's
 balance sheet remains strong.  At the end of the quarter, Apache's debt was
 40.5 percent of capitalization.  Although the first-quarter debt-to-
 capitalization ratio reflects additional debt for the two acquisitions,
 Apache's first quarter results do not reflect the full impact of additional
 production in Canada and Egypt.
     Apache expects to produce approximately 1.15 billion cubic feet of gas and
 165,000 barrels of liquids per day during the second quarter, said G. Steven
 Farris, president and chief operating officer.
     "We plan to prune certain properties from our recent acquisitions that do
 not match our core area strategies plus some non-operated properties," he
 said.  "The financial effect of planned asset sales, higher production and
 favorable prices will bring down our debt-to-capitalization ratio over the
 next two quarters."
     Apache Corporation is a large gas and oil independent with operations in
 the United States, Canada, Egypt, Western Australia, Poland and China.
 
     Operations Outlook
     The following statements are estimates based on Apache's current
 expectations for the second quarter of 2001.  However, Apache does not budget
 for acquisitions and divestitures and the estimates do not include any other
 transactions.  These statements are forward-looking and actual results may
 differ materially.
 
                                                 Second Quarter
                                                      2001
     Natural gas production
      (Bcf per day)                                 1.15-1.2
     Liquid hydrocarbons production
      (barrels per day)                         165,000-170,000
     Cash costs, including operating,
      severance taxes and general and
      administrative costs (per boe)              $4.50-$4.75
     Depreciation, depletion and
      amortization (per boe)                      $6.25-$6.35
 
     This news release contains certain "forward-looking statements" as defined
 by the Private Securities Litigation Reform Act of 1995, including, without
 limitation, expectations, beliefs, plans and objectives regarding Apache's
 production, operational performance and costs and the sensitivity of these
 estimates and others to fluctuations in product prices.  Among the important
 factors that could cause actual results to differ materially from those
 indicated by such forward-looking statements are delays and difficulties in
 completing acquisitions and developing currently owned properties, the failure
 of exploratory drilling to result in commercial wells, delays due to the
 limited availability of drilling equipment and personnel, fluctuations in oil
 and gas prices, general economic conditions and the risk factors detailed from
 time to time in Apache's periodic reports and registration statements filed
 with the Securities and Exchange Commission.
 
 
                                 APACHE CORPORATION
                               FINANCIAL INFORMATION
                       (In thousands, except per share data)
 
                                                        For the Quarter
                                                        Ended March 31,
                                                     2001            2000
     REVENUES:
     Oil and gas production revenues               $801,598        $446,117
     Other revenues                                  (6,455)          2,074
       Total revenues                               795,143         448,191
 
     OPERATING EXPENSES:
     Depreciation, depletion and
      amortization                                  172,530         132,149
     Lease operating costs                           90,107          61,461
     Severance and other taxes                       21,293           8,966
     Administrative, selling and other               20,376          14,649
       Total operating expenses                     304,306         217,225
 
     OPERATING INCOME                               490,837         230,966
 
     FINANCING COSTS:
     Interest expense                                44,712          41,568
     Amortization of deferred loan costs                502           1,279
     Capitalized interest                           (15,085)        (14,017)
     Interest income                                   (877)           (540)
       Net financing costs                           29,252          28,290
 
     INCOME BEFORE INCOME TAXES                     461,585         202,676
     Provision for income taxes                     179,384          85,680
 
     INCOME BEFORE CHANGE IN ACCOUNTING
      PRINCIPLE                                     282,201         116,996
     Cumulative effect of change in
      accounting principle, net of tax                  ---          (7,539)
 
     NET INCOME                                     282,201         109,457
     Preferred stock dividends                        4,908           5,264
 
     INCOME ATTRIBUTABLE TO COMMON STOCK           $277,293        $104,193
 
     INCOME ATTRIBUTABLE TO COMMON STOCK
      BEFORE CHANGE IN ACCOUNTING PRINCIPLE        $277,293        $111,732
 
     BASIC NET INCOME PER COMMON SHARE:
     Before change in accounting principle            $2.24            $.98
     After change in accounting principle             $2.24            $.92
 
     DILUTED NET INCOME PER COMMON SHARE:
     Before change in accounting principle            $2.15            $.96
     After change in accounting principle             $2.15            $.90
 
     WEIGHTED AVERAGE COMMON SHARES
      OUTSTANDING                                   123,880         113,837
 
     CASH FROM OPERATIONS:
     Net income                                    $282,201        $109,457
     Change in accounting principle                     ---           7,539
     Depreciation, depletion and
      amortization                                  172,530         132,149
     Amortization of deferred loan costs                502           1,279
     Deferred income taxes and other                101,794          50,364
                                                   $557,027        $300,788
 
 
                                APACHE CORPORATION
                               FINANCIAL INFORMATION
                                  (In thousands)
 
                                                      For the Quarter
                                                       Ended March 31,
                                                     2001           2000
     CAPITALIZED COSTS INCURRED:
       North America exploration and
        development                                $282,741       $119,518
       International exploration and
        development                                  41,228         29,915
 
       Acquisitions:
          Oil and gas properties                    752,511        149,679
          Gas gathering, transmission and
           processing facilities                    129,000            ---
          Goodwill                                  197,200            ---
       Total Acquisitions                         1,078,711        149,679
 
       Capitalized interest                          15,085         14,017
       Property sales                              (128,663)       (16,752)
 
 
                                                   March 31,     December 31,
                                                     2001           2000
     BALANCE SHEET DATA:
       Total debt                                 $2,748,618     $2,218,258
       Shareholders' equity                       $4,032,765     $3,754,640
       Common shares outstanding at end of
        period                                       125,407        123,635
 
 
                                APACHE CORPORATION
                               FINANCIAL INFORMATION
                       (In thousands, except per share data)
 
                                                       For the Quarter
                                                       Ended March 31,
                                                     2001           2000
     FINANCIAL DATA:
 
     Revenues                                      $795,143       $448,191
 
     Income Attributable to Common Stock           $277,293       $104,193
 
     Basic Net Income Per Common Share:
          Before change in accounting
           principle                                  $2.24           $.98
          After change in accounting
           principle                                  $2.24           $.92
 
     Diluted Net Income Per Common Share:
          Before change in accounting
           principle                                  $2.15           $.96
          After change in accounting
           principle                                  $2.15           $.90
 
     Weighted Average Common Shares
      Outstanding                                   123,880        113,837
 
     PRODUCTION AND PRICING DATA:
 
     NATURAL GAS VOLUME - Mcf per day
        United States                               636,547        484,891
        Canada                                      181,992        125,908
        Australia                                   114,718         88,966
        Egypt                                        54,415         44,018
          Total                                     987,672        743,783
 
     AVERAGE NATURAL GAS PRICE PER MCF
        United States                                 $6.63          $2.62
        Canada                                         5.62           2.11
        Australia                                      1.26           1.48
        Egypt                                          3.66           4.73
          Total                                        5.65           2.52
 
     OIL VOLUME - Barrels per day
        United States                                59,736         53,897
        Canada                                       20,100         13,651
        Australia                                    15,690         14,377
        Egypt                                        25,970         32,568
          Total                                     121,496        114,493
 
     AVERAGE OIL PRICE PER BARREL
        United States                                $27.38         $25.49
        Canada                                        22.04          21.69
        Australia                                     25.75          26.84
        Egypt                                         25.17          26.56
          Total                                       25.81          25.51
 
     NGL VOLUME - Barrels per day
        United States                                 7,595          4,583
        Canada                                        1,247          1,534
          Total                                       8,842          6,117
 
     AVERAGE NGL PRICE PER BARREL
        United States                                $20.03         $17.50
        Canada                                        27.28          15.74
          Total                                       21.06          17.06
 
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SOURCE Apache Corporation
    HOUSTON, April 26 /PRNewswire/ -- Apache Corporation (NYSE:   APA) today
 reported that favorable prices applied to higher oil and natural gas
 production resulted in record basic net income of $2.24 per common share, up
 from 92 cents per common share in the prior-year period.  Net income totaled
 $277.3 million, up from $104.2 million.
     Cash from operations rose 85 percent to $557 million, compared with
 $300.8 million in the year-earlier period.  Revenues increased 77 percent to
 $795.1 million.
     Natural gas production increased 33 percent to a record 988 million cubic
 feet (MMcf) per day while average gas realizations climbed 124 percent to
 $5.65 per thousand cubic feet (Mcf).  Liquid hydrocarbon production increased
 8 percent to 130,338 barrels per day, also a record, at a time of continuing
 strong prices.
     During the first quarter, Apache completed its purchases of Repsol YPF's
 Egyptian interests and Fletcher Challenge Energy's subsidiaries with interests
 in Canada and Argentina.
     "Factoring in the two acquisitions closed at the end of the quarter and
 added production from our successful first-quarter drilling program, Apache
 expects a sizeable production increase in the second quarter," said Raymond
 Plank, chairman and chief executive officer.
     Apache's exploration and development budget for 2001 is $1.2 billion,
 including aggressive exploration programs in Egypt, Australia and Canada.
     "Apache's fast start to the year, rising production and favorable price
 signals point to another rewarding year for our shareholders," Plank said.
     Despite first-quarter capital investments of $1.4 billion, Apache's
 balance sheet remains strong.  At the end of the quarter, Apache's debt was
 40.5 percent of capitalization.  Although the first-quarter debt-to-
 capitalization ratio reflects additional debt for the two acquisitions,
 Apache's first quarter results do not reflect the full impact of additional
 production in Canada and Egypt.
     Apache expects to produce approximately 1.15 billion cubic feet of gas and
 165,000 barrels of liquids per day during the second quarter, said G. Steven
 Farris, president and chief operating officer.
     "We plan to prune certain properties from our recent acquisitions that do
 not match our core area strategies plus some non-operated properties," he
 said.  "The financial effect of planned asset sales, higher production and
 favorable prices will bring down our debt-to-capitalization ratio over the
 next two quarters."
     Apache Corporation is a large gas and oil independent with operations in
 the United States, Canada, Egypt, Western Australia, Poland and China.
 
     Operations Outlook
     The following statements are estimates based on Apache's current
 expectations for the second quarter of 2001.  However, Apache does not budget
 for acquisitions and divestitures and the estimates do not include any other
 transactions.  These statements are forward-looking and actual results may
 differ materially.
 
                                                 Second Quarter
                                                      2001
     Natural gas production
      (Bcf per day)                                 1.15-1.2
     Liquid hydrocarbons production
      (barrels per day)                         165,000-170,000
     Cash costs, including operating,
      severance taxes and general and
      administrative costs (per boe)              $4.50-$4.75
     Depreciation, depletion and
      amortization (per boe)                      $6.25-$6.35
 
     This news release contains certain "forward-looking statements" as defined
 by the Private Securities Litigation Reform Act of 1995, including, without
 limitation, expectations, beliefs, plans and objectives regarding Apache's
 production, operational performance and costs and the sensitivity of these
 estimates and others to fluctuations in product prices.  Among the important
 factors that could cause actual results to differ materially from those
 indicated by such forward-looking statements are delays and difficulties in
 completing acquisitions and developing currently owned properties, the failure
 of exploratory drilling to result in commercial wells, delays due to the
 limited availability of drilling equipment and personnel, fluctuations in oil
 and gas prices, general economic conditions and the risk factors detailed from
 time to time in Apache's periodic reports and registration statements filed
 with the Securities and Exchange Commission.
 
 
                                 APACHE CORPORATION
                               FINANCIAL INFORMATION
                       (In thousands, except per share data)
 
                                                        For the Quarter
                                                        Ended March 31,
                                                     2001            2000
     REVENUES:
     Oil and gas production revenues               $801,598        $446,117
     Other revenues                                  (6,455)          2,074
       Total revenues                               795,143         448,191
 
     OPERATING EXPENSES:
     Depreciation, depletion and
      amortization                                  172,530         132,149
     Lease operating costs                           90,107          61,461
     Severance and other taxes                       21,293           8,966
     Administrative, selling and other               20,376          14,649
       Total operating expenses                     304,306         217,225
 
     OPERATING INCOME                               490,837         230,966
 
     FINANCING COSTS:
     Interest expense                                44,712          41,568
     Amortization of deferred loan costs                502           1,279
     Capitalized interest                           (15,085)        (14,017)
     Interest income                                   (877)           (540)
       Net financing costs                           29,252          28,290
 
     INCOME BEFORE INCOME TAXES                     461,585         202,676
     Provision for income taxes                     179,384          85,680
 
     INCOME BEFORE CHANGE IN ACCOUNTING
      PRINCIPLE                                     282,201         116,996
     Cumulative effect of change in
      accounting principle, net of tax                  ---          (7,539)
 
     NET INCOME                                     282,201         109,457
     Preferred stock dividends                        4,908           5,264
 
     INCOME ATTRIBUTABLE TO COMMON STOCK           $277,293        $104,193
 
     INCOME ATTRIBUTABLE TO COMMON STOCK
      BEFORE CHANGE IN ACCOUNTING PRINCIPLE        $277,293        $111,732
 
     BASIC NET INCOME PER COMMON SHARE:
     Before change in accounting principle            $2.24            $.98
     After change in accounting principle             $2.24            $.92
 
     DILUTED NET INCOME PER COMMON SHARE:
     Before change in accounting principle            $2.15            $.96
     After change in accounting principle             $2.15            $.90
 
     WEIGHTED AVERAGE COMMON SHARES
      OUTSTANDING                                   123,880         113,837
 
     CASH FROM OPERATIONS:
     Net income                                    $282,201        $109,457
     Change in accounting principle                     ---           7,539
     Depreciation, depletion and
      amortization                                  172,530         132,149
     Amortization of deferred loan costs                502           1,279
     Deferred income taxes and other                101,794          50,364
                                                   $557,027        $300,788
 
 
                                APACHE CORPORATION
                               FINANCIAL INFORMATION
                                  (In thousands)
 
                                                      For the Quarter
                                                       Ended March 31,
                                                     2001           2000
     CAPITALIZED COSTS INCURRED:
       North America exploration and
        development                                $282,741       $119,518
       International exploration and
        development                                  41,228         29,915
 
       Acquisitions:
          Oil and gas properties                    752,511        149,679
          Gas gathering, transmission and
           processing facilities                    129,000            ---
          Goodwill                                  197,200            ---
       Total Acquisitions                         1,078,711        149,679
 
       Capitalized interest                          15,085         14,017
       Property sales                              (128,663)       (16,752)
 
 
                                                   March 31,     December 31,
                                                     2001           2000
     BALANCE SHEET DATA:
       Total debt                                 $2,748,618     $2,218,258
       Shareholders' equity                       $4,032,765     $3,754,640
       Common shares outstanding at end of
        period                                       125,407        123,635
 
 
                                APACHE CORPORATION
                               FINANCIAL INFORMATION
                       (In thousands, except per share data)
 
                                                       For the Quarter
                                                       Ended March 31,
                                                     2001           2000
     FINANCIAL DATA:
 
     Revenues                                      $795,143       $448,191
 
     Income Attributable to Common Stock           $277,293       $104,193
 
     Basic Net Income Per Common Share:
          Before change in accounting
           principle                                  $2.24           $.98
          After change in accounting
           principle                                  $2.24           $.92
 
     Diluted Net Income Per Common Share:
          Before change in accounting
           principle                                  $2.15           $.96
          After change in accounting
           principle                                  $2.15           $.90
 
     Weighted Average Common Shares
      Outstanding                                   123,880        113,837
 
     PRODUCTION AND PRICING DATA:
 
     NATURAL GAS VOLUME - Mcf per day
        United States                               636,547        484,891
        Canada                                      181,992        125,908
        Australia                                   114,718         88,966
        Egypt                                        54,415         44,018
          Total                                     987,672        743,783
 
     AVERAGE NATURAL GAS PRICE PER MCF
        United States                                 $6.63          $2.62
        Canada                                         5.62           2.11
        Australia                                      1.26           1.48
        Egypt                                          3.66           4.73
          Total                                        5.65           2.52
 
     OIL VOLUME - Barrels per day
        United States                                59,736         53,897
        Canada                                       20,100         13,651
        Australia                                    15,690         14,377
        Egypt                                        25,970         32,568
          Total                                     121,496        114,493
 
     AVERAGE OIL PRICE PER BARREL
        United States                                $27.38         $25.49
        Canada                                        22.04          21.69
        Australia                                     25.75          26.84
        Egypt                                         25.17          26.56
          Total                                       25.81          25.51
 
     NGL VOLUME - Barrels per day
        United States                                 7,595          4,583
        Canada                                        1,247          1,534
          Total                                       8,842          6,117
 
     AVERAGE NGL PRICE PER BARREL
        United States                                $20.03         $17.50
        Canada                                        27.28          15.74
          Total                                       21.06          17.06
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X24350733
 
 SOURCE  Apache Corporation