HOUSTON, July 31, 2014 /PRNewswire/ --Apache Corporation (NYSE, Nasdaq: APA) today announced second-quarter 2014 earnings of $505 million or $1.31 per diluted common share and adjusted earnings, which exclude certain items that impact the comparability of results, of $644 million or $1.67 per share. For the same period in the prior year, Apache's earnings were $1 billion or $2.54 per diluted common share and adjusted earnings were $813 million or $2.04 per share. Net cash provided by operating activities totaled approximately $2.3 billion in second-quarter 2014, compared with $2.8 billion in the prior year, with cash from operations before changes in operating assets and liabilities totaling $2.2 billion, compared with $2.6 billion in second-quarter 2013. Prior-year results reflect contributions from properties that have been divested, including producing assets in the Gulf of Mexico, Canada, Argentina and a noncontrolling interest in Egypt.
"Record-setting performance by our Permian Region continues to drive strong results for the company," said G. Steven Farris, chairman, chief executive officer and president of Apache. "Apache's onshore North American liquids production increased 18 percent on a pro forma basis in the second-quarter 2014 compared with the same period a year ago," he said.
"We are excited about our initial results in emerging plays in the East Texas Eagle Ford and Canyon Lime in the U.S., and the Montney and Duvernay in Canada," Farris said. "We continue to broaden and advance our compelling North American onshore portfolio.
"During the quarter, Apache took additional steps in focusing on North American onshore liquids growth by completing the sale of the non-producing Lucius and Heidelberg deepwater developments and divesting selected, primarily gas-producing properties in western Canada and South Texas. This brings our divestments over the last year to $10 billion," he said.
Apache also returned additional capital to shareholders, purchasing 14.9 million shares of Apache common stock on the open market during the first six months of 2014, including 8.9 million shares during the second quarter at an average price of $87.30.
Update on repositioning for North American onshore growth
Consistent with the company's ongoing repositioning for profitable and repeatable North American onshore growth, Apache intends to completely exit the Wheatstone and Kitimat LNG projects. In addition, Apache is evaluating its international assets and exploring multiple opportunities, including the potential separation of some or all of these assets through the capital markets.
Second-quarter 2014 production and operating highlights
Highlights from second-quarter include:
- Total reported worldwide net daily production of oil, natural gas and natural gas liquids (NGLs) averaged 636,000 boe per day, with pro forma production averaging 550,000 boe per day.
- North America onshore regions increased pro forma liquids production 31,000 barrels per day over the prior-year period. Total pro forma production averaged 201,000 barrels per day.
- The Permian Region achieved record production averaging 155,000 boe per day, up 26 percent from the prior-year period. The region averaged 37 operated rigs during the quarter and drilled 164 gross operated wells (74 horizontal).
Oil and gas prices
Apache's mix of hydrocarbon production during the second-quarter 2014 included approximately 49 percent crude oil and 10 percent NGLs. Crude oil and NGLs contributed 84 percent of the company's revenue during the period.
Worldwide, Apache received an average price of $103.53 per barrel of crude oil during the second quarter compared with $98.47 per barrel in the prior-year period. Apache received an average price of $4.18 per thousand cubic feet (Mcf) of natural gas, compared with $3.97 per Mcf in the prior-year period.
Conference call
Apache will conduct a conference call to discuss its results and review its portfolio at 1 p.m. Central time Thursday, July 31. 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 July 31. To access the telephone playback, dial 855-859-2056 or 404-537-3406 for international calls. The conference access code is 30666789.
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 the most directly comparable GAAP financial measures and information regarding Pro Forma Production. Our quarterly Operations and Financial Supplements are available at http://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.
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APACHE CORPORATION | |||||||||
STATEMENT OF CONSOLIDATED OPERATIONS | |||||||||
(Unaudited) | |||||||||
(In millions, except per share data) | |||||||||
For the Quarter Ended June 30, | For the Six Months Ended June 30, | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||
REVENUES AND OTHER: | |||||||||
Oil revenues | $ 2,950 | $ 3,130 | $ 5,765 | $ 6,322 | |||||
Gas revenues | 589 | 721 | 1,235 | 1,402 | |||||
NGL revenues | 169 | 150 | 355 | 298 | |||||
Oil and gas production revenues | 3,708 | 4,001 | 7,355 | 8,022 | |||||
Derivative instrument gains (losses) | (174) | 247 | (194) | 147 | |||||
Other | (50) | 20 | (2) | 45 | |||||
3,484 | 4,268 | 7,159 | 8,214 | ||||||
COSTS AND EXPENSES: | |||||||||
Depreciation, depletion and amortization | |||||||||
Oil and gas property and equipment | |||||||||
Recurring | 1,155 | 1,258 | 2,264 | 2,468 | |||||
Additional | 203 | - | 203 | - | |||||
Other assets | 99 | 92 | 196 | 194 | |||||
Asset retirement obligation accretion | 45 | 64 | 89 | 127 | |||||
Lease operating expenses | 613 | 781 | 1,210 | 1,503 | |||||
Gathering and transportation | 66 | 77 | 136 | 150 | |||||
Taxes other than income | 181 | 170 | 362 | 399 | |||||
General and administrative | 94 | 126 | 199 | 238 | |||||
Acquisition, divestiture & separation costs | 14 | - | 30 | - | |||||
Financing costs, net | 35 | 52 | 62 | 107 | |||||
2,505 | 2,620 | 4,751 | 5,186 | ||||||
INCOME BEFORE INCOME TAXES | 979 | 1,648 | 2,408 | 3,028 | |||||
Current income tax provision | 325 | 284 | 741 | 781 | |||||
Deferred income tax provision | 41 | 327 | 203 | 432 | |||||
INCOME FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST | 613 | 1,037 | 1,464 | 1,815 | |||||
Loss from discontinued operations, net of tax | - | (2) | (517) | (63) | |||||
INCOME INCLUDING NONCONTROLLING INTEREST | 613 | 1,035 | 947 | 1,752 | |||||
Net income attributable to noncontrolling interest | 108 | - | 206 | - | |||||
Preferred stock dividends | - | 19 | - | 38 | |||||
NET INCOME ATTRIBUTABLE TO COMMON STOCK | $ 505 | $ 1,016 | $ 741 | $ 1,714 | |||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | |||||||||
Net income from continuing operations attributable to common shareholders | $ 505 | $ 1,018 | $ 1,258 | $ 1,777 | |||||
Net income (loss) from discontinued operations | - | (2) | (517) | (63) | |||||
Net income attributable to common shareholders | $ 505 | $ 1,016 | $ 741 | $ 1,714 | |||||
BASIC NET INCOME (LOSS) PER COMMON SHARE: | |||||||||
Basic net income from continuing operations per share | $ 1.31 | $ 2.60 | $ 3.23 | $ 4.53 | |||||
Basic net loss from discontinued operations per share | - | (0.01) | (1.33) | (0.16) | |||||
Basic net income per share | $ 1.31 | $ 2.59 | $ 1.90 | $ 4.37 | |||||
DILUTED NET INCOME (LOSS) PER COMMON SHARE: | |||||||||
Diluted net income from continuing operations per share | $ 1.31 | $ 2.54 | $ 3.21 | $ 4.45 | |||||
Diluted net loss from discontinued operations per share | - | - | (1.32) | (0.15) | |||||
Diluted net income per share | $ 1.31 | $ 2.54 | $ 1.89 | $ 4.30 | |||||
WEIGHTED-AVERAGE NUMBER OF COMMON | |||||||||
SHARES OUTSTANDING: | |||||||||
Basic | 385 | 392 | 390 | 392 | |||||
Diluted | 387 | 408 | 392 | 408 | |||||
DIVIDENDS DECLARED PER COMMON SHARE | $ 0.25 | $ 0.20 | $ 0.50 | $ 0.40 | |||||
APACHE CORPORATION | ||||||||||||
PRODUCTION INFORMATION | ||||||||||||
For the Quarter Ended June 30, | For the Six Months Ended June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
OIL VOLUME - Barrels per day | ||||||||||||
Permian | 90,536 | 68,811 | 89,437 | 68,358 | ||||||||
Central | 21,987 | 21,950 | 21,837 | 21,242 | ||||||||
Gulf Coast | 10,977 | 10,593 | 10,976 | 10,287 | ||||||||
Canada | 17,981 | 18,573 | 17,786 | 17,878 | ||||||||
N.A. Onshore | 141,481 | 119,927 | 140,036 | 117,765 | ||||||||
Gulf of Mexico | 6,896 | 8,223 | 6,592 | 7,732 | ||||||||
GOM Shelf | 2 | 47,721 | 339 | 45,684 | ||||||||
North America | 148,379 | 175,871 | 146,967 | 171,181 | ||||||||
Egypt(1) | 88,643 | 88,002 | 88,370 | 89,649 | ||||||||
Australia | 14,555 | 21,810 | 15,683 | 20,911 | ||||||||
North Sea | 61,610 | 63,667 | 60,358 | 66,051 | ||||||||
International(1) | 164,808 | 173,479 | 164,411 | 176,611 | ||||||||
Total(1) | 313,187 | 349,350 | 311,378 | 347,792 | ||||||||
NATURAL GAS VOLUME - Mcf per day | ||||||||||||
Permian | 213,192 | 190,455 | 214,519 | 188,097 | ||||||||
Central | 264,948 | 275,507 | 262,636 | 276,262 | ||||||||
Gulf Coast | 95,765 | 107,424 | 97,494 | 106,423 | ||||||||
Canada | 316,740 | 520,797 | 347,057 | 519,991 | ||||||||
N.A. Onshore | 890,645 | 1,094,183 | 921,706 | 1,090,773 | ||||||||
Gulf of Mexico | 22,804 | 24,957 | 19,517 | 28,030 | ||||||||
GOM Shelf | 261 | 262,318 | 674 | 258,383 | ||||||||
North America | 913,710 | 1,381,458 | 941,897 | 1,377,186 | ||||||||
Egypt(1) | 367,950 | 357,291 | 372,628 | 361,428 | ||||||||
Australia | 210,470 | 212,022 | 213,116 | 213,202 | ||||||||
North Sea | 54,848 | 48,411 | 49,986 | 51,704 | ||||||||
International(1) | 633,268 | 617,724 | 635,730 | 626,334 | ||||||||
Total(1) | 1,546,978 | 1,999,182 | 1,577,627 | 2,003,520 | ||||||||
NGL VOLUME - Barrels per day | ||||||||||||
Permian | 29,176 | 22,692 | 27,229 | 21,644 | ||||||||
Central | 23,738 | 23,021 | 24,094 | 21,279 | ||||||||
Gulf Coast | 2,545 | 2,502 | 2,484 | 2,408 | ||||||||
Canada | 5,921 | 6,686 | 6,840 | 6,675 | ||||||||
N.A. Onshore | 61,380 | 54,901 | 60,647 | 52,006 | ||||||||
Gulf of Mexico | 1,166 | 1,162 | 999 | 1,025 | ||||||||
GOM Shelf | - | 7,641 | 45 | 6,824 | ||||||||
North America | 62,546 | 63,704 | 61,691 | 59,855 | ||||||||
Egypt(1) | 884 | - | 560 | - | ||||||||
North Sea | 1,367 | 1,201 | 1,230 | 1,346 | ||||||||
International(1) | 2,251 | 1,201 | 1,790 | 1,346 | ||||||||
Total(1) | 64,797 | 64,905 | 63,481 | 61,201 | ||||||||
BOE per day | ||||||||||||
Permian | 155,244 | 123,246 | 152,420 | 121,351 | ||||||||
Central | 89,883 | 90,888 | 89,704 | 88,565 | ||||||||
Gulf Coast | 29,483 | 30,998 | 29,710 | 30,432 | ||||||||
Canada | 76,692 | 112,059 | 82,469 | 111,218 | ||||||||
N.A. Onshore | 351,302 | 357,191 | 354,303 | 351,566 | ||||||||
Gulf of Mexico | 11,862 | 13,545 | 10,843 | 13,428 | ||||||||
GOM Shelf | 46 | 99,082 | 496 | 95,573 | ||||||||
North America | 363,210 | 469,818 | 365,642 | 460,567 | ||||||||
Egypt(1) | 150,853 | 147,551 | 151,035 | 149,887 | ||||||||
Australia | 49,633 | 57,147 | 51,203 | 56,444 | ||||||||
North Sea | 72,118 | 72,936 | 69,918 | 76,015 | ||||||||
International(1) | 272,604 | 277,634 | 272,156 | 282,346 | ||||||||
Total(1) | 635,814 | 747,452 | 637,798 | 742,913 | ||||||||
Total excluding noncontrolling interest | 585,567 | 747,452 | 587,702 | 742,913 | ||||||||
(1)Includes production volume per day attributable to noncontrolling interest in Egypt | ||||||||||||
Oil (b/d) | 29,508 | - | 29,288 | - | ||||||||
Gas (mcf/d) | 122,665 | - | 123,726 | - | ||||||||
NGL (b/d) | 295 | - | 187 | - | ||||||||
Discontinued Operations - Argentina | ||||||||||||
Oil (b/d) | - | 9,365 | 3,424 | 9,331 | ||||||||
Gas (mcf/d) | - | 184,528 | 70,286 | 186,383 | ||||||||
NGL (b/d) | - | 2,239 | 640 | 2,529 | ||||||||
BOE/d | - | 42,359 | 15,778 | 42,924 | ||||||||
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. | ||||||||||||
For the Quarter Ended June 30, | For the Six Months Ended June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
OIL VOLUME - Barrels per day | ||||||||||||
Permian | 90,536 | 68,811 | 89,437 | 68,358 | ||||||||
Central | 21,987 | 21,950 | 21,837 | 21,242 | ||||||||
Gulf Coast | 10,677 | 10,009 | 10,661 | 9,814 | ||||||||
Canada | 17,817 | 17,357 | 17,615 | 16,659 | ||||||||
N.A. Onshore | 141,017 | 118,127 | 139,550 | 116,073 | ||||||||
Gulf of Mexico | 6,896 | 8,223 | 6,592 | 7,732 | ||||||||
GOM Shelf | - | - | - | - | ||||||||
North America | 147,913 | 126,350 | 146,142 | 123,805 | ||||||||
Egypt | 43,117 | 43,072 | 43,514 | 42,844 | ||||||||
Australia | 14,555 | 21,810 | 15,683 | 20,911 | ||||||||
North Sea | 61,610 | 63,667 | 60,358 | 66,051 | ||||||||
International | 119,282 | 128,549 | 119,555 | 129,806 | ||||||||
Total | 267,195 | 254,899 | 265,697 | 253,611 | ||||||||
NATURAL GAS VOLUME - Mcf per day | ||||||||||||
Permian | 213,192 | 190,455 | 214,519 | 188,097 | ||||||||
Central | 264,948 | 275,507 | 262,636 | 276,262 | ||||||||
Gulf Coast | 80,976 | 83,156 | 81,762 | 82,786 | ||||||||
Canada | 289,744 | 307,139 | 291,270 | 308,950 | ||||||||
N.A. Onshore | 848,860 | 856,257 | 850,187 | 856,095 | ||||||||
Gulf of Mexico | 22,804 | 24,957 | 19,517 | 28,030 | ||||||||
GOM Shelf | - | - | - | - | ||||||||
North America | 871,664 | 881,214 | 869,704 | 884,125 | ||||||||
Egypt | 181,792 | 177,242 | 187,310 | 176,018 | ||||||||
Australia | 210,470 | 212,022 | 213,116 | 213,202 | ||||||||
North Sea | 54,848 | 48,411 | 49,986 | 51,704 | ||||||||
International | 447,110 | 437,675 | 450,412 | 440,924 | ||||||||
Total | 1,318,774 | 1,318,889 | 1,320,116 | 1,325,049 | ||||||||
NGL VOLUME - Barrels per day | ||||||||||||
Permian | 29,176 | 22,692 | 27,229 | 21,644 | ||||||||
Central | 23,738 | 23,021 | 24,094 | 21,279 | ||||||||
Gulf Coast | 2,024 | 1,465 | 1,969 | 1,482 | ||||||||
Canada | 5,440 | 5,168 | 5,897 | 5,111 | ||||||||
N.A. Onshore | 60,378 | 52,346 | 59,189 | 49,516 | ||||||||
Gulf of Mexico | 1,166 | 1,162 | 999 | 1,025 | ||||||||
GOM Shelf | - | - | - | - | ||||||||
North America | 61,544 | 53,508 | 60,188 | 50,541 | ||||||||
Egypt | 455 | - | 290 | - | ||||||||
North Sea | 1,367 | 1,201 | 1,230 | 1,346 | ||||||||
International | 1,822 | 1,201 | 1,520 | 1,346 | ||||||||
Total | 63,366 | 54,709 | 61,708 | 51,887 | ||||||||
BOE per day | ||||||||||||
Permian | 155,244 | 123,246 | 152,420 | 121,351 | ||||||||
Central | 89,883 | 90,888 | 89,704 | 88,565 | ||||||||
Gulf Coast | 26,197 | 25,333 | 26,257 | 25,094 | ||||||||
Canada | 71,548 | 73,715 | 72,057 | 73,262 | ||||||||
N.A. Onshore | 342,872 | 313,182 | 340,438 | 308,272 | ||||||||
Gulf of Mexico | 11,862 | 13,545 | 10,843 | 13,428 | ||||||||
GOM Shelf | - | - | - | - | ||||||||
North America | 354,734 | 326,727 | 351,281 | 321,700 | ||||||||
Egypt | 73,871 | 72,612 | 75,022 | 72,180 | ||||||||
Australia | 49,633 | 57,147 | 51,203 | 56,444 | ||||||||
North Sea | 72,118 | 72,936 | 69,918 | 76,015 | ||||||||
International | 195,622 | 202,695 | 196,143 | 204,639 | ||||||||
Total | 550,356 | 529,422 | 547,424 | 526,339 | ||||||||
APACHE CORPORATION | ||||||||||||
PRICE INFORMATION | ||||||||||||
For the Quarter Ended June 30, | For the Six Months Ended June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
AVERAGE OIL PRICE PER BARREL | ||||||||||||
Permian | $ 94.33 | $ 92.08 | $ 94.05 | $ 87.49 | ||||||||
Central | 100.39 | 89.18 | 97.10 | 88.69 | ||||||||
Gulf Coast | 103.81 | 106.22 | 102.84 | 108.54 | ||||||||
Canada | 94.66 | 87.38 | 91.47 | 84.97 | ||||||||
N.A. Onshore | 96.06 | 92.03 | 94.91 | 89.16 | ||||||||
Gulf of Mexico | 102.63 | 105.54 | 102.06 | 107.83 | ||||||||
GOM Shelf | NM | 106.95 | NM | 109.19 | ||||||||
North America (1) | 96.24 | 96.11 | 95.15 | 94.70 | ||||||||
Egypt | 109.74 | 99.36 | 108.24 | 105.25 | ||||||||
Australia | 115.34 | 100.79 | 113.70 | 106.29 | ||||||||
North Sea | 109.33 | 102.95 | 108.00 | 106.85 | ||||||||
International | 110.08 | 100.86 | 108.67 | 105.97 | ||||||||
Total(1) | 103.53 | 98.47 | 102.29 | 100.43 | ||||||||
AVERAGE NATURAL GAS PRICE PER MCF | ||||||||||||
Permian | $ 4.48 | $ 3.86 | $ 4.63 | $ 3.81 | ||||||||
Central | 4.49 | 3.91 | 4.84 | 3.82 | ||||||||
Gulf Coast | 4.72 | 4.27 | 4.83 | 3.91 | ||||||||
Canada | 4.21 | 3.52 | 4.30 | 3.37 | ||||||||
N.A. Onshore | 4.41 | 3.76 | 4.62 | 3.61 | ||||||||
Gulf of Mexico | 4.35 | 3.14 | 4.71 | 3.28 | ||||||||
GOM Shelf | NM | 4.18 | NM | 3.87 | ||||||||
North America (1) | 4.41 | 3.86 | 4.58 | 3.71 | ||||||||
Egypt | 2.96 | 3.00 | 2.99 | 2.97 | ||||||||
Australia | 4.40 | 4.70 | 4.41 | 4.82 | ||||||||
North Sea | 7.75 | 10.86 | 9.07 | 10.41 | ||||||||
International | 3.85 | 4.20 | 3.94 | 4.21 | ||||||||
Total (1) | 4.18 | 3.97 | 4.33 | 3.87 | ||||||||
AVERAGE NGL PRICE PER BARREL | ||||||||||||
Permian | $ 28.46 | $ 25.53 | $ 29.85 | $ 25.61 | ||||||||
Central | 25.03 | 21.69 | 27.74 | 23.90 | ||||||||
Gulf Coast | 27.86 | 28.80 | 31.76 | 31.14 | ||||||||
Canada | 31.67 | 24.60 | 37.56 | 28.35 | ||||||||
N.A. Onshore | 27.42 | 23.96 | 29.96 | 25.52 | ||||||||
Gulf of Mexico | 31.73 | 31.26 | 31.84 | 32.73 | ||||||||
GOM Shelf | NM | 27.21 | NM | 27.93 | ||||||||
North America | 27.50 | 24.48 | 29.83 | 25.92 | ||||||||
Egypt | 57.67 | - | 59.05 | - | ||||||||
North Sea | 61.81 | 70.39 | 69.77 | 70.81 | ||||||||
International | 60.19 | 70.39 | 66.41 | 70.81 | ||||||||
Total | 28.64 | 25.33 | 30.86 | 26.91 | ||||||||
Discontinued Operations - Argentina | ||||||||||||
Oil price ($/Bbl) | $ - | $ 77.74 | $ 72.70 | $ 76.56 | ||||||||
Gas price ($/Mcf) | - | 2.79 | 3.04 | 2.99 | ||||||||
NGL price ($/Bbl) | - | 20.94 | 24.57 | 26.12 | ||||||||
(1) Prices reflect the impact of financial derivative hedging activities. | ||||||||||||
APACHE CORPORATION | |||||||
SUMMARY BALANCE SHEET INFORMATION | |||||||
(Unaudited) | |||||||
(In millions) | |||||||
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
Cash and Cash Equivalents | $ 524 | $ 1,906 | |||||
Short-Term Restricted Cash | 1,138 | - | |||||
Other Current Assets | 3,824 | 4,460 | |||||
Property and Equipment, net | 52,470 | 52,421 | |||||
Long-Term Restricted Cash | 229 | - | |||||
Goodwill | 1,369 | 1,369 | |||||
Other Assets | 1,617 | 1,481 | |||||
Total Assets | $ 61,171 | $ 61,637 | |||||
Short-Term Debt | $ 1 | $ 53 | |||||
Other Current Liabilities | 4,569 | 4,647 | |||||
Long-Term Debt | 9,674 | 9,672 | |||||
Deferred Credits and Other Noncurrent Liabilities | 12,035 | 11,872 | |||||
Apache Shareholders' Equity | 32,755 | 33,396 | |||||
Noncontrolling interest | 2,137 | 1,997 | |||||
Total Liabilities and Shareholders' Equity | $ 61,171 | $ 61,637 | |||||
Common shares outstanding at end of period | 382 | 396 | |||||
APACHE CORPORATION | |||||||||||
SUMMARY OF COSTS INCURRED AND GTP CAPITAL INVESTMENTS | |||||||||||
(Unaudited) | |||||||||||
(In millions) | |||||||||||
For the Quarter Ended June 30, | For the Six Months Ended June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||
Costs Incurred in Oil and Gas Property: | |||||||||||
Acquisitions | $ 3 | $ - | $ 5 | $ 280 | |||||||
Exploration and Development | 2,554 | 2,727 | 5,107 | 5,176 | |||||||
2,557 | 2,727 | 5,112 | 5,456 | ||||||||
GTP Capital Investments: | |||||||||||
Acquisitions | $ - | $ - | $ - | $ 83 | |||||||
GTP Facilities | 378 | 236 | 723 | 492 | |||||||
378 | 236 | 723 | 575 | ||||||||
Total Costs Incurred and GTP Capital Investments | $ 2,935 | $ 2,963 | $ 5,835 | $ 6,031 | |||||||
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 June 30, | For the Six Months Ended June 30, | ||||||||
2014 | 2013 | 2014 | 2013 | ||||||
Income Attributable to Common Stock (GAAP) | $ 505 | $ 1,016 | $ 741 | $ 1,714 | |||||
Adjustments: | |||||||||
Argentina discontinued operations, net of tax | $ - | $ 2 | $ 517 | $ 63 | |||||
Oil & gas property write-downs, net of tax | 77 | - | 77 | - | |||||
Unrealized foreign currency fluctuation impact on deferred tax expense | 13 | (66) | 20 | (70) | |||||
Acquisition, divestiture & separation costs, net of tax | 9 | - | 20 | - | |||||
Rig stacking costs, net of tax | 9 | - | 9 | - | |||||
Deferred tax adjustments | - | 17 | (5) | 28 | |||||
Commodity derivative mark-to-market, net of tax | 31 | (156) | (18) | (125) | |||||
Adjusted Earnings (Non-GAAP) | $ 644 | $ 813 | $ 1,361 | $ 1,610 | |||||
Net Income per Common Share - Diluted (GAAP) | $ 1.31 | $ 2.54 | $ 1.89 | $ 4.30 | |||||
Adjustments: | |||||||||
Argentina discontinued operations, net of tax | $ - | $ - | 1.32 | 0.15 | |||||
Oil & gas property write-downs, net of tax | 0.20 | - | 0.20 | - | |||||
Unrealized foreign currency fluctuation impact on deferred tax expense | 0.03 | (0.16) | 0.05 | (0.17) | |||||
Acquisition, divestiture & separation costs, net of tax | 0.03 | - | 0.05 | - | |||||
Rig stacking costs, net of tax | 0.02 | - | 0.02 | - | |||||
Deferred tax adjustments | - | 0.04 | (0.01) | 0.07 | |||||
Commodity derivative mark-to-market, net of tax | 0.08 | (0.38) | (0.05) | (0.31) | |||||
Adjusted Earnings Per Share - Diluted (Non-GAAP) | $ 1.67 | $ 2.04 | $ 3.47 | $ 4.04 | |||||
Total income tax provision (GAAP) | $ 366 | $ 611 | $ 944 | $ 1,213 | |||||
Adjustments: | |||||||||
Tax impact on oil & gas property write-downs | $ 126 | $ - | $ 126 | $ - | |||||
Tax impact on acquisition, divestiture & separation costs | 5 | - | 10 | - | |||||
Tax impact on rig stacking costs | 5 | - | 5 | - | |||||
Deferred tax adjustments | - | (17) | 5 | (28) | |||||
Tax impact on commodity derivative mark-to-market | 18 | (86) | (9) | (69) | |||||
Foreign currency fluctuation impact on deferred tax expense | (13) | 66 | (20) | 70 | |||||
Adjusted total income tax provision | $ 507 | $ 574 | $ 1,061 | $ 1,186 | |||||
Adjusted Effective Tax Rate (Non-GAAP) | 40.3% | 40.8% | 40.4% | 41.8% | |||||
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 June 30, | For the Six Months Ended June 30, | |||||||||
2014 | 2013 | 2014 | 2013 | |||||||
Net cash provided by operating activities (GAAP) | $ 2,339 | $ 2,759 | $ 4,632 | $ 5,380 | ||||||
Less: Discontinued operations | - | (40) | (82) | (104) | ||||||
Net cash provided by operating activities excluding discontinued operations | $ 2,339 | $ 2,719 | $ 4,550 | $ 5,276 | ||||||
Changes in operating assets and liabilities | (111) | (164) | (100) | (426) | ||||||
Cash from continuing operations before changes in | ||||||||||
operating assets and liabilities | $ 2,228 | $ 2,555 | $ 4,450 | $ 4,850 | ||||||
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APA-F
SOURCE Apache Corporation
