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Form 8-K APACHE CORP For: Nov 06

November 6, 2014 9:11 AM EST

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section�13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November�6, 2014

APACHE CORPORATION

(Exact name of registrant as specified in its charter)

Delaware 1-4300 41-0747868

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

2000 Post Oak Boulevard

Suite 100

Houston, Texas 77056-4400

(Address of principal executive offices) (Zip Code)

Registrant�s telephone number, including area code: (713)�296-6000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


The information in this Current Report on Form 8-K, including Exhibit 99.1 furnished herewith, is being furnished and shall not be deemed �filed� for purposes of Section�18 of the Exchange Act or otherwise subject to the liabilities of Section�18, and shall not be incorporated by reference in any filing under the Securities Act or the Exchange Act, except as set forth by specific reference in such filing.

Item�2.02. Results of Operations and Financial Condition.

On November�6, 2014, Apache Corporation issued a press release announcing financial and operating results for the fiscal quarter ended September�30, 2014. The full text of the press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference.

Item�9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit�No.
�� Description
99.1 �� Press Release of Apache Corporation dated November�6, 2014.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

APACHE CORPORATION
Date: November 6, 2014

/s/ Rebecca A. Hoyt

Rebecca A. Hoyt
Senior Vice President,
Chief Accounting Officer and Controller
(Principal Accounting Officer)


INDEX TO EXHIBITS

Exhibit�No.

��

Description

99.1 �� Press Release of Apache Corporation dated November�6, 2014.

Exhibit 99.1

LOGO NEWS RELEASE

Apache Corporation Reports Third-Quarter 2014 Financial and Operational Results

Third-quarter 2014 highlights

Onshore North American liquids production exceeded 211,000 barrels of oil equivalent (boe) per day, up 15 percent from the prior year when adjusted for asset sales

Permian production reached 162,000 boe per day, up 23 percent from the prior year

Worldwide production averaged 637,000 boe per day; pro forma worldwide production averaged 562,000 boe per day, up 6 percent from the prior year

Operating activities provided net cash of $1.9 billion; cash flow from continuing operations before changes in operating assets and liabilities of $2.1 billion

Non-cash charges resulted in net loss attributable to common stock of $1.3 billion or $3.50 per diluted share

Adjusted earnings of $528 million or $1.38 per share

Repurchased 5.7�million shares of common stock during the third quarter; 8.2�million shares remained under existing authorization as of Sept. 30

2014 onshore North American liquids growth anticipated at the high end of previously disclosed guidance range of 15-18 percent, adjusted for asset sales

Company to provide North American onshore business update on Nov. 20 in New York City

HOUSTON, Nov. 6, 2014 � Apache Corporation (NYSE, Nasdaq: APA) today announced that non-cash charges resulted in a third-quarter 2014 net loss of $1.3 billion or $3.50 per diluted common share. Adjusted earnings, which exclude certain items that impact the comparability of results, totaled $528 million or $1.38 per share. Net cash provided by operating activities totaled approximately $1.9 billion in the third quarter of 2014, with cash from operations before changes in operating assets and liabilities totaling $2.1 billion.

Apache�s third-quarter net loss was the result of three non-cash charges:

An $814 million U.S. deferred tax charge related to the company�s change in policy and outlook regarding the permanent reinvestment of its foreign earnings;

A $249 million income tax expense related to the repatriation of cash from its Egyptian operations during the third quarter; and

LOGO


A $1 billion after-tax reduction in the carrying value of its oil and gas properties driven by lower oil and natural gas liquids price realizations and the previously announced deep water sale.

�Our North American onshore regions delivered another strong quarter as we continued to execute our strategy to profitably grow North American liquids production,� said G. Steven Farris, Apache chairman, chief executive officer and president. �Liquids production increased 5 percent from the second quarter and 15 percent from the prior-year quarter when adjusted for asset sales.

�We are excited about the progress we have made in North America thus far in 2014, particularly in the Permian and Eagle Ford. Our Permian Region continues to deliver impressive liquids growth increasing 26 percent from the prior year quarter,� Farris said. �In our Eagle Ford program we spud 29 wells during the quarter and have now ramped to 10 rigs. We anticipate this region will be a key contributor to profitable liquids growth going forward.�

Apache is advancing its unconventional resource capabilities and high-grading its North American onshore portfolio. During the third quarter, the company opportunistically invested $521 million in new leasehold and property acquisitions. In addition, the company is currently marketing non-core North American asset packages as part of its portfolio high-grading initiative and continues to acquire acreage in key growth areas.

�Our international businesses also delivered during the quarter with strong drilling results in Egypt, first oil production from Balnaves in Australia and a successful turnaround season in the North Sea,� Farris said. �We have built premier businesses in each of these regions and remain highly committed to the strategic separation of these assets. We will provide an update as material events unfold.�


During the quarter, Apache returned capital to shareholders through the purchase of an additional 5.7�million shares of its common stock on the open market. This brings total shares repurchased as of Sept. 30 to approximately 32�million of the 40�million shares authorized. Apache continues to see share buy-backs as an attractive use of capital.

Third-quarter 2014 production and operating highlights

Highlights from the third-quarter include:

North American onshore regions increased liquids production to approximately 211,000 barrels per day, an increase of 28,000 barrels per day or 15 percent from the prior-year period when adjusted for asset sales.

The Permian Region achieved record production of approximately 162,000 boe per day, up 23 percent from the prior-year period. The region averaged 42 operated rigs during the quarter and drilled 195 gross operated wells.

Total reported worldwide net daily production of oil, natural gas and natural gas liquids (NGLs) averaged 637,000 boe per day, with pro forma production averaging 562,000 boe per day, up 6 percent from the prior year.

Balnaves, a floating production, storage and offloading project in Australia, commenced production during the quarter and is currently producing at approximately 12,000 barrels of oil per day (net).

Oil and gas prices

Apache�s hydrocarbon production during the third-quarter 2014 consisted of approximately 60 percent liquids and 40 percent natural gas. Liquids contributed 84 percent of the company�s revenue during the period. In North America onshore, Apache received an average price of $90.30 per barrel of crude oil during the third quarter, compared with $103.44 per barrel in the prior-year period. North


American onshore natural gas prices averaged $3.97 per thousand cubic feet (Mcf), compared with $3.26 per Mcf in the prior-year period. Globally, Apache received an average price of $94.69 per barrel of crude oil during the third quarter, compared with $108.27 per barrel in the prior-year period. Global natural gas prices averaged $3.88 per Mcf of natural gas, compared with $3.56 per Mcf in the prior-year period.

In the fourth quarter of 2014, Apache has oil hedges covering 62,500 barrels per day at an average West Texas Intermediate price of $90.83 per barrel and 62,500 barrels per day at an average Brent price of $100.05 per barrel.

Conference call

Apache will conduct a conference call to discuss its 2014 third-quarter results at 1 p.m. Central time Thursday, Nov. 6. The conference call will be webcast from Apache�s website, www.apachecorp.com. The webcast replay will be archived on Apache�s website. The conference call will be available for delayed playback by telephone for one week beginning at approximately 4 p.m. Central time Nov. 6. To access the telephone playback, dial 855-859-2056 or 404-537-3406 for international calls. The conference access code is 30670543.

Additional Information

Additional information follows, including reconciliations of adjusted earnings and cash from operations before changes in operating assets and liabilities (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, the United Kingdom and Australia. 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 and cash from continuing operations before changes in operating assets and liabilities 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� and similar references to future periods. These statements include, but are not limited to, statements about future plans, expectations and objectives for Apache�s operations, including statements about our drilling plans and production expectations, asset sales and monetizations and share repurchases. 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 2013 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.


Contacts

Investor: �� (281)�302-2286 �� Gary�Clark
Media: �� (713)296-7276 �� Bill Mintz
�� (281)302-2286 �� Castlen�Kennedy

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,
�� 2014 2013 2014 2013

REVENUES AND OTHER:

��

Oil revenues

�� $ 2,753 �� $ 3,468 �� $ 8,518 �� $ 9,790 ��

Gas revenues

�� 538 �� 645 �� 1,773 �� 2,048 ��

NGL revenues

�� 177 �� 175 �� 532 �� 473 ��
��

Oil and gas production revenues

�� 3,468 �� 4,288 �� 10,823 �� 12,311 ��

Derivative instrument gains (losses)

�� 273 �� (422 )� 79 �� (275 )�

Other

�� (1 )� 34 �� (3 )� 78 ��
��

�� 3,740 �� 3,900 �� 10,899 �� 12,114 ��
��

COSTS AND EXPENSES:

��

Depreciation, depletion and amortization

��

Oil and gas property and equipment

��

Recurring

�� 1,173 �� 1,272 �� 3,437 �� 3,740 ��

Additional

�� 1,562 �� 627 �� 1,765 �� 627 ��

Other assets

�� 100 �� 96 �� 296 �� 290 ��

Asset retirement obligation accretion

�� 46 �� 65 �� 135 �� 192 ��

Lease operating expenses

�� 652 �� 772 �� 1,862 �� 2,275 ��

Gathering and transportation

�� 67 �� 81 �� 203 �� 231 ��

Taxes other than income

�� 170 �� 176 �� 532 �� 574 ��

General and administrative

�� 112 �� 120 �� 309 �� 359 ��

Acquisition, divestiture�& separation costs

�� 34 �� ��� �� 66 �� ��� ��

Financing costs, net

�� 41 �� 50 �� 103 �� 157 ��
��

�� 3,957 �� 3,259 �� 8,708 �� 8,445 ��
��

INCOME (LOSS) BEFORE INCOME TAXES

�� (217 )� 641 �� 2,191 �� 3,669 ��

Current income tax provision

�� 297 �� 409 �� 1,038 �� 1,190 ��

Deferred income tax provision (benefit)

�� 727 �� (203 )� 930 �� 229 ��
��

INCOME (LOSS) FROM CONTINUING OPS INCLUDING NONCONTROLLING INTEREST

�� (1,241 )� 435 �� 223 �� 2,250 ��

Loss from discontinued operations, net of tax

�� ��� �� (129 )� (517 )� (192 )�
��

INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST

�� (1,241 )� 306 �� (294 )� 2,058 ��

Net income attributable to noncontrolling interest

�� 89 �� ��� �� 295 �� ��� ��

Preferred stock dividends

�� ��� �� 6 �� ��� �� 44 ��
��

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK

�� $ (1,330 )� $ 300 �� $ (589 )� $ 2,014 ��
��

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS

��

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

�� $ (1,330 )� $ 429 �� $ (72 )� $ 2,206 ��

Net loss from discontinued operations

�� ��� �� (129 )� (517 )� (192 )�
��

Net income (loss) attributable to common shareholders

�� $ (1,330 )� $ 300 �� $ (589 )� $ 2,014 ��
��

BASIC NET INCOME (LOSS) PER COMMON SHARE:

��

Basic net income (loss) from continuing operations per share

�� $ (3.50 )� $ 1.08 �� $ (0.19 )� $ 5.59 ��

Basic net loss from discontinued operations per share

�� ��� �� (0.33 )� (1.33 )� (0.48 )�
��

Basic net income (loss) per share

�� $ (3.50 )� $ 0.75 �� $ (1.52 )� $ 5.11 ��
��

DILUTED NET INCOME (LOSS) PER COMMON SHARE:

��

Diluted net income (loss) from continuing operations per share

�� $ (3.50 )� $ 1.07 �� $ (0.19 )� $ 5.53 ��

Diluted net loss from discontinued operations per share

�� ��� �� (0.32 )� (1.33 )� (0.47 )�
��

Diluted net income (loss) per share

�� $ (3.50 )� $ 0.75 �� $ (1.52 )� $ 5.06 ��
��

WEIGHTED-AVERAGE NUMBER OF COMMON

��

SHARES OUTSTANDING:

��

Basic

�� 381 �� 399 �� 387 �� 394 ��

Diluted

�� 381 �� 401 �� 387 �� 407 ��

DIVIDENDS DECLARED PER COMMON SHARE

�� $ 0.25 �� $ 0.20 �� $ 0.75 �� $ 0.60 ��


APACHE CORPORATION

PRODUCTION INFORMATION

�� �� �� �� % Change ��
�� 3Q14 �� 2Q14 �� 3Q13 �� 3Q14�to�2Q14 3Q14�to�3Q13 YTD 2014 �� YTD 2013

OIL VOLUME - Barrels per day

�� �� �� �� ��

Permian

�� 91,844 �� �� 90,536 �� �� 73,910 �� �� 1 %� 24 %� 90,249 �� �� 70,229 ��

Central

�� 22,866 �� �� 21,987 �� �� 25,659 �� �� 4 %� -11 %� 22,184 �� �� 22,730 ��

Gulf Coast

�� 12,923 �� �� 10,977 �� �� 11,126 �� �� 18 %� 16 %� 11,632 �� �� 10,570 ��

Canada

�� 17,672 �� �� 17,981 �� �� 18,573 �� �� -2 %� -5 %� 17,748 �� �� 18,112 ��
��

��

��

��

��

N.A. Onshore

�� 145,305 �� �� 141,481 �� �� 129,268 �� �� 3 %� 12 %� 141,813 �� �� 121,641 ��
��

��

��

��

��

Gulf of Mexico

�� 5,980 �� �� 6,896 �� �� 7,564 �� �� -13 %� -21 %� 6,386 �� �� 7,675 ��

GOM Shelf

�� ��� �� �� 2 �� �� 45,431 �� �� NM �� NM �� 224 �� �� 45,599 ��
��

��

��

��

��

North America

�� 151,285 �� �� 148,379 �� �� 182,263 �� �� 2 %� -17 %� 148,423 �� �� 174,915 ��
��

��

��

��

��

Egypt (1, 2)

�� 87,499 �� �� 88,643 �� �� 89,294 �� �� -1 %� -2 %� 88,076 �� �� 89,530 ��

Australia

�� 22,014 �� �� 14,555 �� �� 18,787 �� �� 51 %� 17 %� 17,817 �� �� 20,195 ��

North Sea

�� 55,247 �� �� 61,610 �� �� 57,861 �� �� -10 %� -5 %� 58,636 �� �� 63,291 ��
��

��

��

��

��

International (1)

�� 164,760 �� �� 164,808 �� �� 165,942 �� �� 0 %� -1 %� 164,529 �� �� 173,016 ��
��

��

��

��

��

Total (1)

�� 316,045 �� �� 313,187 �� �� 348,205 �� �� 1 %� -9 %� 312,952 �� �� 347,931 ��
��

��

��

��

��

TOTAL LIQUIDS - Barrels per day

�� �� �� �� ��

Permian

�� 125,674 �� �� 119,712 �� �� 99,967 �� �� 5 %� 26 %� 119,702 �� �� 93,360 ��

Central

�� 47,353 �� �� 45,725 �� �� 49,096 �� �� 4 %� -4 %� 46,410 �� �� 44,736 ��

Gulf Coast

�� 15,322 �� �� 13,522 �� �� 13,342 �� �� 13 %� 15 %� 14,088 �� �� 12,913 ��

Canada

�� 23,053 �� �� 23,902 �� �� 25,585 �� �� -4 %� -10 %� 24,097 �� �� 24,900 ��
��

��

��

��

��

N.A. Onshore

�� 211,402 �� �� 202,861 �� �� 187,990 �� �� 4 %� 12 %� 204,297 �� �� 175,909 ��
��

��

��

��

��

Gulf of Mexico

�� 6,905 �� �� 8,062 �� �� 8,130 �� �� -14 %� -15 %� 7,360 �� �� 8,546 ��

GOM Shelf

�� 71 �� �� 2 �� �� 50,665 �� �� NM �� NM �� 278 �� �� 51,887 ��
��

��

��

��

��

North America

�� 218,378 �� �� 210,925 �� �� 246,785 �� �� 4 %� -12 %� 211,935 �� �� 236,342 ��
��

��

��

��

��

Egypt (1, 2)

�� 88,225 �� �� 89,527 �� �� 89,294 �� �� -1 %� -1 %� 88,692 �� �� 89,530 ��

Australia

�� 22,014 �� �� 14,555 �� �� 18,787 �� �� 51 %� 17 %� 17,817 �� �� 20,195 ��

North Sea

�� 56,541 �� �� 62,977 �� �� 58,958 �� �� -10 %� -4 %� 59,887 �� �� 64,554 ��
��

��

��

��

��

International (1)

�� 166,780 �� �� 167,059 �� �� 167,039 �� �� 0 %� 0 %� 166,396 �� �� 174,279 ��
��

��

��

��

��

Total (1)

�� 385,158 �� �� 377,984 �� �� 413,824 �� �� 2 %� -7 %� 378,331 �� �� 410,621 ��
��

��

��

��

��

NATURAL GAS VOLUME - Mcf per day

�� �� �� �� ��

Permian

�� 216,804 �� �� 213,192 �� �� 190,192 �� �� 2 %� 14 %� 215,289 �� �� 188,803 ��

Central

�� 260,443 �� �� 264,948 �� �� 274,061 �� �� -2 %� -5 %� 261,897 �� �� 275,520 ��

Gulf Coast

�� 82,710 �� �� 95,765 �� �� 110,889 �� �� -14 %� -25 %� 92,512 �� �� 107,928 ��

Canada

�� 300,803 �� �� 316,740 �� �� 529,402 �� �� -5 %� -43 %� 331,470 �� �� 523,163 ��
��

��

��

��

��

N.A. Onshore

�� 860,760 �� �� 890,645 �� �� 1,104,544 �� �� -3 %� -22 %� 901,168 �� �� 1,095,414 ��
��

��

��

��

��

Gulf of Mexico

�� 19,109 �� �� 22,804 �� �� 11,804 �� �� -16 %� 62 %� 19,379 �� �� 22,562 ��

GOM Shelf

�� 122 �� �� 261 �� �� 243,477 �� �� NM �� NM �� 488 �� �� 253,360 ��
��

��

��

��

��

North America

�� 879,991 �� �� 913,710 �� �� 1,359,825 �� �� -4 %� -35 %� 921,035 �� �� 1,371,336 ��
��

��

��

��

��

Egypt (1, 2)

�� 377,838 �� �� 367,950 �� �� 350,504 �� �� 3 %� 8 %� 374,384 �� �� 357,747 ��

Australia

�� 201,386 �� �� 210,470 �� �� 212,141 �� �� -4 %� -5 %� 209,163 �� �� 212,845 ��

North Sea

�� 50,647 �� �� 54,848 �� �� 46,971 �� �� -8 %� 8 %� 50,209 �� �� 50,108 ��
��

��

��

��

��

International (1)

�� 629,871 �� �� 633,268 �� �� 609,616 �� �� -1 %� 3 %� 633,756 �� �� 620,700 ��
��

��

��

��

��

Total (1)

�� 1,509,862 �� �� 1,546,978 �� �� 1,969,441 �� �� -2 %� -23 %� 1,554,791 �� �� 1,992,036 ��
��

��

��

��

��

BOE per day

�� �� �� �� ��

Permian

�� 161,808 �� �� 155,244 �� �� 131,665 �� �� 4 %� 23 %� 155,583 �� �� 124,826 ��

Central

�� 90,760 �� �� 89,883 �� �� 94,773 �� �� 1 %� -4 %� 90,060 �� �� 90,657 ��

Gulf Coast

�� 29,107 �� �� 29,483 �� �� 31,823 �� �� -1 %� -9 %� 29,507 �� �� 30,901 ��

Canada

�� 73,187 �� �� 76,692 �� �� 113,819 �� �� -5 %� -36 %� 79,341 �� �� 112,095 ��
��

��

��

��

��

N.A. Onshore

�� 354,862 �� �� 351,302 �� �� 372,080 �� �� 1 %� -5 %� 354,491 �� �� 358,479 ��
��

��

��

��

��

Gulf of Mexico

�� 10,090 �� �� 11,862 �� �� 10,098 �� �� -15 %� 0 %� 10,589 �� �� 12,306 ��

GOM Shelf

�� 92 �� �� 46 �� �� 91,245 �� �� NM �� NM �� 360 �� �� 94,114 ��
��

��

��

��

��

North America

�� 365,044 �� �� 363,210 �� �� 473,423 �� �� 1 %� -23 %� 365,440 �� �� 464,899 ��
��

��

��

��

��

Egypt (1, 2)

�� 151,198 �� �� 150,853 �� �� 147,711 �� �� 0 %� 2 %� 151,090 �� �� 149,154 ��

Australia

�� 55,578 �� �� 49,633 �� �� 54,144 �� �� 12 %� 3 %� 52,677 �� �� 55,669 ��

North Sea

�� 64,982 �� �� 72,118 �� �� 66,787 �� �� -10 %� -3 %� 68,255 �� �� 72,905 ��
��

��

��

��

��

International (1)

�� 271,758 �� �� 272,604 �� �� 268,642 �� �� 0 %� 1 %� 272,022 �� �� 277,728 ��
��

��

��

��

��

Total (1)

�� 636,802 �� �� 635,814 �� �� 742,065 �� �� 0 %� -14 %� 637,462 �� �� 742,627 ��
��

��

��

��

��

Total excluding noncontrolling interest

�� 586,189 �� �� 585,567 �� �� 742,065 �� �� 0 %� -21 %� 587,192 �� �� 742,627 ��
��

��

��

��

��

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

����������

��

Oil (b/d)

�� 29,201 �� �� 29,508 �� �� ��� �� �� 29,259 �� �� ��� ��

Gas (mcf/d)

�� 127,020 �� �� 122,665 �� �� ��� �� �� 124,836 �� �� ��� ��

NGL (b/d)

�� 242 �� �� 295 �� �� ��� �� �� 205 �� �� ��� ��

(2)�������BOE per day Egypt Gross Production

�� 345,708 �� �� 351,059 �� �� 346,530 �� �� -2 %� 0 %� 349,843 �� �� 347,209 ��

Discontinued Operations - Argentina

�� �� �� �� ��

Oil (b/d)

�� ��� �� �� ��� �� �� 9,560 �� �� 2,269 �� �� 9,408 ��

Gas (mcf/d)

�� ��� �� �� ��� �� �� 185,962 �� �� 46,599 �� �� 186,241 ��

NGL (b/d)

�� ��� �� �� ��� �� �� 1,713 �� �� 424 �� �� 2,254 ��

BOE/d

�� ��� �� �� ��� �� �� 42,266 �� �� 10,461 �� �� 42,702 ��


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 assets that have been divested (in the Gulf of Mexico shelf, Argentina, Canada, and South Texas), production attributable to a noncontrolling interest in our Egypt oil and gas business, and 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 ��
�� 3Q14 �� 2Q14 �� 3Q13 �� 3Q14�to�2Q14 3Q14�to�3Q13 YTD 2014 �� YTD 2013

OIL VOLUME - Barrels per day

�� �� �� �� ��

Permian

�� 91,844 �� �� 90,536 �� �� 73,910 �� �� 1 %� 24 %� 90,249 �� �� 70,229 ��

Central

�� 22,866 �� �� 21,987 �� �� 25,659 �� �� 4 %� -11 %� 22,184 �� �� 22,730 ��

Gulf Coast

�� 12,902 �� �� 10,677 �� �� 10,543 �� �� 21 %� 22 %� 11,416 �� �� 10,059 ��

Canada

�� 17,649 �� �� 17,817 �� �� 17,357 �� �� -1 %� 2 %� 17,626 �� �� 16,895 ��
��

��

��

��

��

N.A. Onshore

�� 145,261 �� �� 141,017 �� �� 127,469 �� �� 3 %� 14 %� 141,475 �� �� 119,913 ��
��

��

��

��

��

Gulf of Mexico

�� 5,980 �� �� 6,896 �� �� 7,564 �� �� -13 %� -21 %� 6,386 �� �� 7,675 ��

GOM Shelf

�� ��� �� �� ��� �� �� ��� �� �� 0 %� 0 %� ��� �� �� ��� ��
��

��

��

��

��

North America

�� 151,241 �� �� 147,913 �� �� 135,033 �� �� 2 %� 12 %� 147,861 �� �� 127,588 ��
��

��

��

��

��

Egypt

�� 44,372 �� �� 43,117 �� �� 41,853 �� �� 3 %� 6 %� 43,803 �� �� 42,510 ��

Australia

�� 22,014 �� �� 14,555 �� �� 18,787 �� �� 51 %� 17 %� 17,817 �� �� 20,195 ��

North Sea

�� 55,247 �� �� 61,610 �� �� 57,861 �� �� -10 %� -5 %� 58,636 �� �� 63,291 ��
��

��

��

��

��

International

�� 121,633 �� �� 119,282 �� �� 118,501 �� �� 2 %� 3 %� 120,256 �� �� 125,996 ��
��

��

��

��

��

Total

�� 272,874 �� �� 267,195 �� �� 253,534 �� �� 2 %� 8 %� 268,117 �� �� 253,584 ��
��

��

��

��

��

TOTAL LIQUIDS - Barrels per day

�� �� �� �� ��

Permian

�� 125,674 �� �� 119,712 �� �� 99,967 �� �� 5 %� 26 %� 119,702 �� �� 93,360 ��

Central

�� 47,353 �� �� 45,725 �� �� 49,096 �� �� 4 %� -4 %� 46,410 �� �� 44,736 ��

Gulf Coast

�� 15,238 �� �� 12,701 �� �� 11,724 �� �� 20 %� 30 %� 13,509 �� �� 11,440 ��

Canada

�� 23,025 �� �� 23,257 �� �� 22,849 �� �� -1 %� 1 %� 23,347 �� �� 22,134 ��
��

��

��

��

��

N.A. Onshore

�� 211,290 �� �� 201,395 �� �� 183,636 �� �� 5 %� 15 %� 202,968 �� �� 171,670 ��
��

��

��

��

��

Gulf of Mexico

�� 6,905 �� �� 8,062 �� �� 8,130 �� �� -14 %� -15 %� 7,360 �� �� 8,546 ��

GOM Shelf

�� ��� �� �� ��� �� �� ��� �� �� 0 %� 0 %� ��� �� �� ��� ��
��

��

��

��

��

North America

�� 218,195 �� �� 209,457 �� �� 191,766 �� �� 4 %� 14 %� 210,328 �� �� 180,216 ��
��

��

��

��

��

Egypt

�� 44,749 �� �� 43,572 �� �� 41,853 �� �� 3 %� 7 %� 44,123 �� �� 42,510 ��

Australia

�� 22,014 �� �� 14,555 �� �� 18,787 �� �� 51 %� 17 %� 17,817 �� �� 20,195 ��

North Sea

�� 56,541 �� �� 62,977 �� �� 58,958 �� �� -10 %� -4 %� 59,887 �� �� 64,554 ��
��

��

��

��

��

International

�� 123,304 �� �� 121,104 �� �� 119,598 �� �� 2 %� 3 %� 121,827 �� �� 127,259 ��
��

��

��

��

��

Total

�� 341,499 �� �� 330,561 �� �� 311,364 �� �� 3 %� 10 %� 332,155 �� �� 307,475 ��
��

��

��

��

��

NATURAL GAS VOLUME - Mcf per day

�� �� �� �� ��

Permian

�� 216,804 �� �� 213,192 �� �� 190,192 �� �� 2 %� 14 %� 215,289 �� �� 188,803 ��

Central

�� 260,443 �� �� 264,948 �� �� 274,061 �� �� -2 %� -5 %� 261,897 �� �� 275,520 ��

Gulf Coast

�� 82,032 �� �� 80,976 �� �� 86,621 �� �� 1 %� -5 %� 81,852 �� �� 84,078 ��

Canada

�� 300,624 �� �� 289,744 �� �� 315,745 �� �� 4 %� -5 %� 294,421 �� �� 311,241 ��
��

��

��

��

��

N.A. Onshore

�� 859,903 �� �� 848,860 �� �� 866,619 �� �� 1 %� -1 %� 853,459 �� �� 859,642 ��
��

��

��

��

��

Gulf of Mexico

�� 19,109 �� �� 22,804 �� �� 11,804 �� �� -16 %� 62 %� 19,379 �� �� 22,562 ��

GOM Shelf

�� ��� �� �� ��� �� �� ��� �� �� 0 %� 0 %� ��� �� �� ��� ��
��

��

��

��

��

North America

�� 879,012 �� �� 871,664 �� �� 878,423 �� �� 1 %� 0 %� 872,838 �� �� 882,204 ��
��

��

��

��

��

Egypt

�� 192,484 �� �� 181,792 �� �� 167,986 �� �� 6 %� 15 %� 189,054 �� �� 173,311 ��

Australia

�� 201,386 �� �� 210,470 �� �� 212,141 �� �� -4 %� -5 %� 209,163 �� �� 212,845 ��

North Sea

�� 50,647 �� �� 54,848 �� �� 46,971 �� �� -8 %� 8 %� 50,209 �� �� 50,108 ��
��

��

��

��

��

International

�� 444,517 �� �� 447,110 �� �� 427,098 �� �� -1 %� 4 %� 448,426 �� �� 436,264 ��
��

��

��

��

��

Total

�� 1,323,529 �� �� 1,318,774 �� �� 1,305,521 �� �� 0 %� 1 %� 1,321,264 �� �� 1,318,468 ��
��

��

��

��

��

BOE per day

�� �� �� �� ��

Permian

�� 161,808 �� �� 155,244 �� �� 131,665 �� �� 4 %� 23 %� 155,583 �� �� 124,826 ��

Central

�� 90,760 �� �� 89,883 �� �� 94,773 �� �� 1 %� -4 %� 90,060 �� �� 90,657 ��

Gulf Coast

�� 28,910 �� �� 26,197 �� �� 26,161 �� �� 10 %� 11 %� 27,151 �� �� 25,453 ��

Canada

�� 73,129 �� �� 71,548 �� �� 75,473 �� �� 2 %� -3 %� 72,417 �� �� 74,008 ��
��

��

��

��

��

N.A. Onshore

�� 354,607 �� �� 342,872 �� �� 328,072 �� �� 3 %� 8 %� 345,211 �� �� 314,944 ��
��

��

��

��

��

Gulf of Mexico

�� 10,090 �� �� 11,862 �� �� 10,098 �� �� -15 %� 0 %� 10,589 �� �� 12,306 ��

GOM Shelf

�� ��� �� �� ��� �� �� ��� �� �� 0 %� 0 %� ��� �� �� ��� ��
��

��

��

��

��

North America

�� 364,697 �� �� 354,734 �� �� 338,170 �� �� 3 %� 8 %� 355,800 �� �� 327,250 ��
��

��

��

��

��

Egypt

�� 76,830 �� �� 73,871 �� �� 69,851 �� �� 4 %� 10 %� 75,633 �� �� 71,395 ��

Australia

�� 55,578 �� �� 49,633 �� �� 54,144 �� �� 12 %� 3 %� 52,677 �� �� 55,669 ��

North Sea

�� 64,982 �� �� 72,118 �� �� 66,787 �� �� -10 %� -3 %� 68,255 �� �� 72,905 ��
��

��

��

��

��

International

�� 197,390 �� �� 195,622 �� �� 190,782 �� �� 1 %� 3 %� 196,565 �� �� 199,969 ��
��

��

��

��

��

Total

�� 562,087 �� �� 550,356 �� �� 528,952 �� �� 2 %� 6 %� 552,365 �� �� 527,219 ��
��

��

��

��

��


APACHE CORPORATION

PRICE INFORMATION

�� 3Q14 �� 2Q14 �� 3Q13 �� YTD�2014 �� YTD�2013

AVERAGE OIL PRICE PER BARREL

�� �� �� �� ��

Permian

�� $ 88.71 �� �� $ 94.33 �� �� $ 104.52 �� �� $ 92.22 �� �� $ 93.53 ��

Central

�� 95.17 �� �� 100.39 �� �� 101.90 �� �� 96.43 �� �� 93.71 ��

Gulf Coast

�� 99.41 �� �� 103.81 �� �� 110.06 �� �� 101.56 �� �� 109.08 ��

Canada

�� 85.43 �� �� 94.66 �� �� 97.58 �� �� 89.45 �� �� 89.33 ��

N.A. Onshore

�� 90.30 �� �� 96.06 �� �� 103.44 �� �� 93.32 �� �� 94.27 ��

Gulf of Mexico

�� 97.86 �� �� 102.63 �� �� 108.07 �� �� 100.74 �� �� 107.91 ��

GOM Shelf

�� NM �� �� NM �� �� 110.40 �� �� NM �� �� 109.60 ��

North America (1)

�� 90.58 �� �� 96.24 �� �� 104.98 �� �� 93.58 �� �� 98.31 ��

Egypt

�� 100.06 �� �� 109.74 �� �� 112.61 �� �� 105.50 �� �� 107.73 ��

Australia

�� 98.82 �� �� 115.34 �� �� 116.21 �� �� 107.50 �� �� 109.40 ��

North Sea

�� 95.80 �� �� 109.33 �� �� 109.33 �� �� 104.13 �� �� 107.61 ��

International

�� 98.47 �� �� 110.08 �� �� 111.87 �� �� 105.23 �� �� 107.88 ��

Total (1)

�� 94.69 �� �� 103.53 �� �� 108.27 �� �� 99.71 �� �� 103.07 ��

AVERAGE NATURAL GAS PRICE PER MCF

�� �� �� �� ��

Permian

�� $ 3.79 �� �� $ 4.48 �� �� $ 3.66 �� �� $ 4.35 �� �� $ 3.76 ��

Central

�� 4.00 �� �� 4.49 �� �� 3.61 �� �� 4.56 �� �� 3.75 ��

Gulf Coast

�� 4.19 �� �� 4.72 �� �� 3.67 �� �� 4.63 �� �� 3.83 ��

Canada

�� 4.04 �� �� 4.21 �� �� 2.87 �� �� 4.22 �� �� 3.20 ��

N.A. Onshore

�� 3.97 �� �� 4.41 �� �� 3.26 �� �� 4.41 �� �� 3.49 ��

Gulf of Mexico

�� 3.50 �� �� 4.35 �� �� 3.35 �� �� 4.31 �� �� 3.29 ��

GOM Shelf

�� NM �� �� NM �� �� 3.71 �� �� NM �� �� 3.82 ��

North America (1)

�� 3.97 �� �� 4.41 �� �� 3.41 �� �� 4.39 �� �� 3.61 ��

Egypt

�� 2.91 �� �� 2.96 �� �� 3.01 �� �� 2.96 �� �� 2.98 ��

Australia

�� 4.70 �� �� 4.40 �� �� 3.98 �� �� 4.51 �� �� 4.54 ��

North Sea

�� 6.10 �� �� 7.75 �� �� 10.29 �� �� 8.06 �� �� 10.37 ��

International

�� 3.74 �� �� 3.85 �� �� 3.91 �� �� 3.88 �� �� 4.11 ��

Total (1)

�� 3.88 �� �� 4.18 �� �� 3.56 �� �� 4.18 �� �� 3.77 ��

AVERAGE NGL PRICE PER BARREL

�� �� �� �� ��

Permian

�� $ 27.29 �� �� $ 28.46 �� �� $ 29.93 �� �� $ 28.86 �� �� $ 27.25 ��

Central

�� 24.94 �� �� 25.03 �� �� 25.61 �� �� 26.78 �� �� 24.51 ��

Gulf Coast

�� 24.85 �� �� 27.86 �� �� 30.06 �� �� 29.48 �� �� 30.80 ��

Canada

�� 33.50 �� �� 31.67 �� �� 28.77 �� �� 36.40 �� �� 28.49 ��

N.A. Onshore

�� 26.83 �� �� 27.42 �� �� 28.07 �� �� 28.84 �� �� 26.45 ��

Gulf of Mexico

�� 34.44 �� �� 31.73 �� �� 31.68 �� �� 32.67 �� �� 32.50 ��

GOM Shelf

�� NM �� �� NM �� �� 30.52 �� �� NM �� �� 28.66 ��

North America

�� 26.96 �� �� 27.50 �� �� 28.30 �� �� 28.81 �� �� 26.76 ��

Egypt

�� 52.80 �� �� 57.67 �� �� ��� �� �� 56.57 �� �� ��� ��

North Sea

�� 59.47 �� �� 61.81 �� �� 69.77 �� �� 66.18 �� �� 70.51 ��

International

�� 57.07 �� �� 60.19 �� �� 69.77 �� �� 63.01 �� �� 70.51 ��

Total

�� 27.84 �� �� 28.64 �� �� 29.00 �� �� 29.78 �� �� 27.64 ��

Discontinued Operations - Argentina

�� �� �� �� ��

Oil price ($/Bbl)

�� $ ��� �� �� $ ��� �� �� $ 79.77 �� �� $ 72.70 �� �� $ 77.66 ��

Gas price ($/Mcf)

�� ��� �� �� ��� �� �� 2.76 �� �� 3.04 �� �� 2.91 ��

NGL price ($/Bbl)

�� ��� �� �� ��� �� �� 22.19 �� �� 24.57 �� �� 25.11 ��

(1) Prices reflect the impact of financial derivative hedging activities.


APACHE CORPORATION

SUMMARY BALANCE SHEET INFORMATION

(Unaudited)

(In millions)

�� September�30,
2014
December�31,
2013

Cash and Cash Equivalents

�� $ 510 �� $ 1,906 ��

Short-Term Restricted Cash

�� 74 �� ��� ��

Other Current Assets

�� 3,842 �� 4,460 ��

Property and Equipment, net

�� 53,035 �� 52,421 ��

Long-Term Restricted Cash

�� 471 �� ��� ��

Goodwill

�� 1,369 �� 1,369 ��

Other Assets

�� 1,689 �� 1,481 ��
��

Total Assets

�� $ 60,990 �� $ 61,637 ��
��

Short-Term Debt

�� $ 20 �� $ 53 ��

Other Current Liabilities

�� 4,287 �� 4,647 ��

Long-Term Debt

�� 10,902 �� 9,672 ��

Deferred Credits and Other Noncurrent Liabilities

�� 12,795 �� 11,872 ��

Apache Shareholders� Equity

�� 30,818 �� 33,396 ��

Noncontrolling interest

�� 2,168 �� 1,997 ��
��

Total Liabilities and Shareholders� Equity

�� $ 60,990 �� $ 61,637 ��
��

Common shares outstanding at end of period

�� 377 �� 396 ��

% of total debt-to-capitalization

�� 25 %� 22 %�

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,
�� 2014 �� 2013 �� 2014 �� 2013

Costs Incurred in Oil and Gas Property:

�� �� �� ��

Acquisitions

�� �� �� ��

Proved

�� $ 98 �� �� $ 4 �� �� $ 103 �� �� $ 130 ��

Unproved

�� 429 �� �� 51 �� �� 552 �� �� 325 ��

Exploration and Development

�� 2,538 �� �� 2,640 �� �� 7,524 �� �� 7,696 ��
��

��

��

��

�� 3,065 �� �� 2,695 �� �� 8,179 �� �� 8,151 ��

GTP Capital Investments:

�� �� �� ��

Acquisitions

�� $ ��� �� �� $ ��� �� �� $ ��� �� �� $ 83 ��

GTP Facilities

�� 300 �� �� 361 �� �� 1,022 �� �� 853 ��
��

��

��

��

�� 300 �� �� 361 �� �� 1,022 �� �� 936 ��
��

��

��

��

Total Costs Incurred and GTP Capital Investments

�� $ 3,365 �� �� $ 3,056 �� �� $ 9,201 �� �� $ 9,087 ��
��

��

��

��


APACHE CORPORATION

NON-GAAP FINANCIAL MEASURES

(Unaudited)

(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,
�� 2014 2013 2014 2013

Income (Loss) Attributable to Common Stock (GAAP)

�� $ (1,330 )� $ 300 �� $ (589 )� $ 2,014 ��

Adjustments:

��

Oil�& gas property write-downs, net of tax

�� $ 1,002 �� $ 402 �� $ 1,079 �� $ 402 ��

Deferred tax adjustments (1)

�� 1,054 �� (79 )� 1,049 �� (51 )�

Argentina discontinued operations, net of tax

�� ��� �� 129 �� 517 �� 192 ��

Acquisition, divestiture�& separation costs, net of tax

�� 22 �� ��� �� 43 �� ��� ��

Rig stacking costs, net of tax

�� 18 �� ��� �� 27 �� ��� ��

Unrealized foreign currency fluctuation impact on deferred tax expense

�� (36 )� (28 )� (16 )� (98 )�

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

�� (202 )� 213 �� (220 )� 88 ��
��

Adjusted Earnings (Non-GAAP)

�� $ 528 �� $ 937 �� $ 1,890 �� $ 2,547 ��
��

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

�� $ (3.50 )� $ 0.75 �� $ (1.52 )� $ 5.06 ��

Adjustments:

��

Oil�& gas property write-downs, net of tax

�� $ 2.62 �� $ 0.99 �� $ 2.78 �� $ 0.98 ��

Deferred tax adjustments (1)

�� 2.76 �� (0.19 )� 2.70 �� (0.12 )�

Argentina discontinued operations, net of tax

�� ��� �� 0.31 �� 1.33 �� 0.47 ��

Acquisition, divestiture�& separation costs, net of tax

�� 0.06 �� ��� �� 0.11 �� ��� ��

Rig stacking costs, net of tax

�� 0.05 �� ��� �� 0.07 �� ��� ��

Unrealized foreign currency fluctuation impact on deferred tax expense

�� (0.09 )� (0.07 )� (0.04 )� (0.24 )�

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

�� (0.52 )� 0.53 �� (0.57 )� 0.22 ��
��

Adjusted Earnings Per Share - Diluted (Non-GAAP)

�� $ 1.38 �� $ 2.32 �� $ 4.86 �� $ 6.37 ��
��

Total income tax provision (GAAP)

�� $ 1,024 �� $ 206 �� $ 1,968 �� $ 1,419 ��

Adjustments:

��

Tax impact on oil�& gas property write-downs

�� $ 560 �� $ 225 �� $ 686 �� $ 225 ��

Tax impact on acquisition, divestiture�& separation costs

�� 12 �� ��� �� 23 �� ��� ��

Foreign currency fluctuation impact on deferred tax expense

�� 36 �� 28 �� 16 �� 98 ��

Tax impact on rig stacking costs

�� 9 �� ��� �� 15 �� ��� ��

Tax impact on unrealized commodity derivative mark-to-market

�� (111 )� 117 �� (121 )� 49 ��

Deferred tax adjustments (1)

�� (1,054 )� 79 �� (1,049 )� 51 ��
��

Adjusted total income tax provision

�� $ 476 �� $ 655 �� $ 1,538 �� $ 1,842 ��
��

Adjusted Effective Tax Rate (Non-GAAP)

�� 43.5 %� 41.0 %� 41.3 %� 41.5 %�

(1) Deferred tax adjustments for the third quarter and nine-month period of 2014 include $814 million related to undistributed foreign earnings, $249 million related to distributed foreign earnings, and certain other adjustments.


APACHE CORPORATION

NON-GAAP FINANCIAL MEASURES

(Unaudited)

(In millions, except per share data)

Reconciliation of net cash provided by operating activities to cash from continuing operations before changes in operating assets and liabilities:

Cash from operations before changes in operating assets and liabilities is a non-GAAP financial measure. Apache uses it internally and provides the information because management believes it is useful for investors and widely accepted by those following the oil and gas industry as a financial indicator of a company�s ability to generate cash to internally fund exploration and development activities, fund dividend programs, and service debt. It is also used by research analysts to value and compare oil and gas exploration and production companies and is frequently included in published research when providing investment recommendations. Cash from operations before changes in operating assets and liabilities, therefore, is an additional measure of liquidity but is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing, or financing activities.

The following table reconciles net cash provided by operating activities to cash from operations before changes in operating assets and liabilities.

�� For�the�Quarter
Ended�September�30,
For�the�Nine�Months
Ended�September�30,
�� 2014 �� 2013 2014 2013

Net cash provided by operating activities (GAAP)

�� $ 1,896 �� �� $ 1,978 �� $ 6,528 �� $ 7,358 ��

Less: Discontinued operations

�� ��� �� �� (54 )� (82 )� (158 )�
��

��

Net cash provided by operating activities excluding discontinued operations

�� $ 1,896 �� �� $ 1,924 �� $ 6,446 �� $ 7,200 ��

Changes in operating assets and liabilities

�� 177 �� �� 744 �� 77 �� 318 ��
��

��

Cash from continuing operations before changes in operating assets and liabilities

�� $ 2,073 �� �� $ 2,668 �� $ 6,523 �� $ 7,518 ��
��

��



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