|  October 21, 2014  |  
Mostly Cloudy   34.0F  |  Forecast »
Bookmark and Share Email this page Email Print this page Print Feed Feed

Apache Reports Record Earnings and Production for 2010

Apache Corporation
Annual production increased 13 percent, averaging 658,000 BOE per day
Earnings of $3.0 billion or $8.46 per diluted share
Cash flow nearly $7.4 billion


HOUSTON, Feb. 17, 2011 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA) today reported that production set a new annual record, averaging nearly 658,000 barrels of oil equivalent per day for the 12-month period ending Dec. 31, 2010, up 13 percent from the prior year. Liquids production increased 18 percent, and this, combined with higher oil prices, drove Apache to record earnings of $3.0 billion for 2010.  

"The results for 2010 were outstanding, and the possibilities for future profitable growth are numerous and encouraging. Apache's accomplishments this past year and past quarter reflect the company's operating and financial discipline, with our relentless focus on rate of return, cash generation, and operating and cost oversight. This enables us to optimize existing assets and execute on major transactions, whether they be deliberate or opportunistic. During the year we expanded our global portfolio with acquisitions in the Permian Basin, Canada, the Gulf of Mexico, and Egypt," said G. Steven Farris, Apache's chairman and chief executive officer.

Highlights during 2010 include:

  • 25 percent reserve growth, replacing 344 percent of production; 102 percent through drilling
  • Record annual production for North America and international
  • Most active acquisition year in Apache's history with over $11 billion in transactions
  • Van Gogh and Pyrenees, two oil fields offshore Western Australia, commenced production in February 2010, reaching payout by October and December, respectively
  • Purchased 51 percent equity interest in the proposed Kitimat LNG Terminal
  • Established new regions in the deepwater Gulf of Mexico, Gulf Onshore and Permian Basin, and expanded in Egypt, Canada, and the Gulf of Mexico Shelf.

"In 2011 we will realize a full 12 months of ownership from these newly acquired assets, as well as development and production from our legacy asset base.  We also have a number of longer-term growth projects in the pipeline, including LNG developments at Kitimat (Canada) and Wheatstone (Australia) and new exploration ventures in more frontier hydrocarbon basins," he said.

"Apache's diverse asset mix, which balances oil and gas properties in North American and international basins, helped to deliver record results despite low natural gas prices.  This is a testament to the effectiveness of Apache's balanced portfolio model," Farris said.

In early 2011 political changes swept through Egypt, with many issues remaining unresolved.  Apache's Egyptian operations are located in remote areas of the country, and these events did not disrupt the company's oil and gas production.  Apache believes that Egypt will continue to foster an environment that values foreign investment and the development of its ample resource base, and wishes the best for the people of Egypt during this time of transition.

Full-year and fourth-quarter 2010 financial results

For the year ended Dec. 31, 2010, Apache reported net income of $3.0 billion, or $8.46 per diluted common share, compared to a net loss of $292 million, or 87 cents per share in 2009.  The prior year included a $1.98 billion, non-cash, after-tax write-down that was a result of lower commodity prices during the first quarter 2009.

Excluding certain items that management believes affect the comparability of operating results, Apache reported adjusted earnings* of $3.2 billion in 2010, a 68 percent increase compared with 2009 adjusted earnings of $1.9 billion.  On a per share basis, adjusted net earnings were $8.94 for 2010, compared with $5.59 per share in the prior year. Cash flow from operations before changes in operating assets and liabilities* for 2010 was nearly $7.4 billion, the second-best in Apache's history, and up from $5 billion in 2009.

Apache's 2010 fourth-quarter earnings increased to $670 million, or $1.77 per share, up from $582 million, or $1.72 per share, for the same period in the prior year. Fourth-quarter 2010 adjusted earnings increased 25 percent to $830 million.  On a per share basis, 2010 adjusted net earnings were $2.19, up from $1.96 reported for fourth-quarter 2009. 

Full-year and fourth-quarter 2010 operating highlights

Apache ended 2010 with proved reserves of 2.95 billion barrels of oil equivalent. Apache's 2010 production was 240 million barrels of oil equivalent (MMboe). The company added 827 MMboe or 344 percent of production, through discoveries, extensions and acquisitions. Approximately 245 MMboe, or 102 percent of 2010 production, in reserve additions came through drilling. Apache spent $15.8 billion on exploration, development and acquisitions capital, excluding asset retirement obligations and capitalized interest.*

In 2010, Apache's international production increased 14 percent. In Australia, production climbed 96 percent with significant contributions from the start-up of the Pyrenees and Van Gogh fields. Net production in Egypt increased 6 percent, with the completion of expansion projects at our Kalabasha oil facilities.

Apache's North American production increased 11 percent in 2010, lifted in part by contributions from newly acquired fields in Canada, the Permian Basin, and Gulf of Mexico.

Globally, fourth-quarter 2010 production increased 24 percent from the prior-year period to average 729,000 boe per day.

Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom North Sea, Australia and Argentina. From time to time, Apache posts announcements, operational updates and investor information, and copies of all press releases on its Web site, www.apachecorp.com.

*Adjusted earnings, cash from operations before changes in operating assets and liabilities, and exploration, development and acquisitions capital, excluding asset retirement obligations and capitalized interest, are non-GAAP measures. Please see reconciliations below. For supplemental and non-GAAP information, please go to http://www.apachecorp.com/financialinfo.

NOTE: Apache will conduct a conference call to discuss its fourth-quarter and full-year 2010 results at 1 p.m. Central time on Thursday, Feb. 17. The call will be webcast from Apache's Web site, www.apachecorp.com. The webcast replay and podcast will be archived on Apache's Web site. The conference call will be available for delayed playback by telephone for one week beginning at approximately 3 p.m. on Feb. 17. To access the telephone playback, dial (800) 642-1687 and provide Apache's confirmation code, 21261191.

This news release contains certain "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 including, without limitation, expectations, beliefs, plans and objectives regarding production and exploration activities. Any matters that are not historical facts are forward-looking and, accordingly, involve estimates, assumptions, risks and uncertainties, including, without limitation, risks, uncertainties and other factors discussed in our most recently filed Annual Report on Form 10-K, on our Web site and in our other public filings and press releases. There is no assurance that Apache's expectations will be realized, and actual results may differ materially from those expressed in the forward-looking statements. We assume no duty to update these statements as of any future date.

APA-F

APACHE CORPORATION


FINANCIAL INFORMATION


(In millions, except per share data)














For the Quarter

Ended December 31,


For the Year

Ended December 31,




2010


2009


2010


2009












REVENUES AND OTHER:










Oil and gas production revenues

$                     3,474


$                     2,570


$                   12,183


$                     8,574



Other

(40)


(15)


(91)


41




3,434


2,555


12,092


8,615












COSTS AND EXPENSES:










Depreciation, depletion and amortization










Recurring

928


615


3,083


2,395



Additional

-


-


-


2,818



Asset retirement obligation accretion

37


26


111


105



Lease operating expenses

639


414


2,032


1,662



Gathering and transportation

52


40


178


143



Taxes other than income

168


193


690


580



General and administrative

120


85


380


344



Merger, acquisitions and transition

167


-


183


-



Financing costs, net

55


60


229


242




2,166


1,433


6,886


8,289












INCOME BEFORE INCOME TAXES

1,268


1,122


5,206


326



Current income tax provision

333


359


1,222


842



Deferred income tax provision (benefit)

246


178


952


(231)












NET INCOME (LOSS)

689


585


3,032


(285)



Preferred stock dividends

19


3


32


7












INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK

$                        670


$                        582


$                     3,000


$                       (292)












NET INCOME (LOSS) PER COMMON SHARE:










Basic

$                       1.79


$                       1.73


$                       8.53


$                      (0.87)



Diluted

$                       1.77


$                       1.72


$                       8.46


$                      (0.87)












WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

375


336


352


336












DILUTED SHARES OUTSTANDING

388


339


359


336













APACHE CORPORATION


FINANCIAL INFORMATION


(In millions)




















For the Quarter

Ended December 31,


For the Year

Ended December 31,







2010


2009


2010


2009


CAPITAL EXPENDITURES (1):











Exploration & Development Costs












United States


$                        584


$                        181


$                     1,623


$                        929




Canada


267


99


860


412





North America


851


280


2,483


1,341




Egypt


247


141


757


676




Australia


223


181


624


602




North Sea


180


82


617


375




Argentina


73


31


240


140




Chile


-


7


20


11





International


723


442


2,258


1,804





Worldwide Exploration & Development Costs


$                     1,574


$                        722


$                     4,741


$                     3,145
















Gathering, Transmission and Processing Facilities












Canada


$                          52


$                          14


$                        159


$                          83




Egypt


71


41


182


151




Australia


60


46


162


69




Argentina


1


-


3


2





Total Gathering, Transmission and Processing


$                        184


$                        101


$                        506


$                        305
















Capitalized Interest


$                          56


$                          16


$                        120


$                          61
















Capital Expenditures, excluding acquisitions


$                     1,814


$                        839


$                     5,367


$                     3,511
















Acquisitions


$                     8,007


$                          52


$                   11,557


$                        310
















(1) Accrual basis




























December 31,


December 31,











2010


2009



















BALANCE SHEET DATA:











Cash and Cash Equivalents


$                        134


$                     2,048







Other Current Assets


3,346


2,538







Property and Equipment, net


38,151


22,901







Goodwill


1,032


189







Other Assets


762


510







Total Assets


$                   43,425


$                   28,186




















Short-Term Debt


$                          46


$                        117







Other Current Liabilities


3,478


2,276







Long-Term Debt


8,095


4,950







Deferred Credits and Other Noncurrent Liabilities


7,429


5,064







Shareholders' Equity


24,377


15,779







Total Liabilities and Shareholders' Equity


$                   43,425


$                   28,186




















Common shares outstanding at end of period


382


336




















APACHE CORPORATION


FINANCIAL INFORMATION






















For the Quarter

Ended December 31,


For the Year

Ended December 31,








2010


2009


2010


2009
















PRODUCTION DATA:










OIL VOLUME - Barrels per day











Gulf Coast



58,285


54,665


53,591


51,757



Central



5,077


2,507


3,544


2,295



Permian



46,586


35,818


39,441


35,081




United States


109,948


92,990


96,576


89,133



Canada



15,557


13,998


14,581


15,186




North America


125,505


106,988


111,157


104,319



Egypt




107,238


95,970


99,122


92,139



Australia



38,738


9,918


45,908


9,779



North Sea



52,453


56,443


56,791


60,984



Argentina



10,382


10,632


9,956


11,505




International


208,811


172,963


211,777


174,407





Total


334,316


279,951


322,934


278,726
















NATURAL GAS VOLUME - Mcf per day











Gulf Coast



452,118


386,679


404,730


366,565



Central



223,883


199,470


209,346


202,859



Permian



162,266


102,422


116,771


96,660




United States


838,267


688,571


730,847


666,084



Canada



593,523


334,526


396,005


359,235




North America


1,431,790


1,023,097


1,126,852


1,025,319



Egypt




368,350


382,780


374,858


362,618



Australia



191,585


204,860


199,729


183,617



North Sea



2,118


2,502


2,391


2,703



Argentina



198,513


170,474


184,830


184,557




International


760,566


760,616


761,808


733,495





Total


2,192,356


1,783,713


1,888,660


1,758,814
















NGL VOLUME - Barrels per day











Gulf Coast



5,934


5,030


5,559


4,332



Central



1,045


437


659


346



Permian



12,740


1,629


7,559


1,458




United States


19,719


7,096


13,777


6,136



Canada



5,637


2,029


2,884


2,089




North America


25,356


9,125


16,661


8,225



Egypt




326


-


82


-



Argentina



3,265


3,439


3,180


3,241




International


3,591


3,439


3,262


3,241





Total


28,947


12,564


19,923


11,466
















BOE per day












Gulf Coast



139,572


124,141


126,605


117,183



Central



43,436


36,189


39,094


36,451



Permian



86,370


54,517


66,462


52,650




United States


269,378


214,847


232,161


206,284



Canada



120,115


71,782


83,466


77,147




North America


389,493


286,629


315,627


283,431



Egypt




168,956


159,766


161,680


152,575



Australia



70,669


44,061


79,196


40,382



North Sea



52,806


56,860


57,190


61,435



Argentina



46,733


42,483


43,941


45,505




International


339,164


303,170


342,007


299,897





Total


728,657


589,799


657,634


583,328

















APACHE CORPORATION


FINANCIAL INFORMATION






















For the Quarter

Ended December 31,


For the Year

Ended December 31,








2010


2009


2010


2009
















PRICING DATA:










AVERAGE OIL PRICE PER BARREL











Gulf Coast



$            85.53


$            74.39


$            79.00


$            60.22



Central



80.76


72.99


76.27


57.75



Permian



81.26


67.97


76.00


53.92




United States (1)


81.29


70.75


76.13


59.06



Canada



75.73


70.10


72.83


56.16




North America (1)


80.60


70.66


75.69


58.64



Egypt




88.27


74.46


79.45


61.34



Australia



87.14


80.97


77.32


64.42



North Sea



78.43


74.82


76.66


60.91



Argentina



59.23


56.41


57.47


49.42




International


84.14


73.84


77.21


60.58





Total (1)


82.81


72.63


76.69


59.85
















AVERAGE NATURAL GAS PRICE PER MCF











Gulf Coast



$              4.18


$              4.46


$              4.72


$              4.14



Central



3.91


4.30


4.53


3.58



Permian



4.68


6.01


5.21


4.65




United States (1)


4.95


4.92


5.28


4.34



Canada (1)


4.08


4.60


4.48


4.17




North America (1)


4.59


4.81


5.00


4.28



Egypt




3.84


3.50


3.62


3.70



Australia



2.33


2.34


2.24


1.99



North Sea



23.12


18.07


18.64


13.15



Argentina



2.04


2.09


1.96


1.96




International


3.04


2.92


2.90


2.87





Total (1)


4.06


4.00


4.15


3.69
















AVERAGE NGL PRICE PER BARREL











Gulf Coast



$            45.44


$            44.61


$            43.40


$            33.92



Central



50.32


36.79


47.67


29.00



Permian



43.78


40.16


39.49


31.32




United States


44.63


43.11


41.45


33.02



Canada



36.64


33.28


36.61


25.54




North America


42.85


40.92


40.62


31.12



Egypt




69.75


-


69.75


-



Argentina



21.61


25.95


27.08


18.76




International


25.98


25.95


28.15


18.76





Total


40.76


36.82


38.58


27.63































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

















APACHE CORPORATION


FINANCIAL INFORMATION


(In millions, except per share data)













NON-GAAP FINANCIAL MEASURES:




















Reconciliation of income attributable to common stock to adjusted earnings:








The press release discusses Apache's adjusted earnings.  Adjusted earnings exclude certain items that management believes affect the comparability of operating results and are meaningful for the following reasons:













  • Management uses adjusted earnings to evaluate the company's operational trends and performance relative to other oil and gas producing 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.


  • The reconciling items below are the types of items management believes are frequently excluded by analysts when evaluating the operating trends and comparability of the company's results.

















For the Quarter

Ended December 31,


For the Year

Ended December 31,





2010


2009


2010


2009













Income (Loss) Attributable to Common Stock (GAAP)

$               670


$               582


$            3,000


$              (292)













Adjustments:










Foreign currency fluctuation impact on deferred tax expense  

51


82


52


198



Merger, acquisitions and transition costs, net of tax

109


-


120


-



Additional depletion, net of tax

-


-


-


1,981


Adjusted  Earnings  (Non-GAAP)

$               830


$               664


$            3,172


$            1,887













Adjusted Earnings Per Share (Non-GAAP)









Basic


$              2.22


$              1.97


$              9.02


$              5.62


Diluted


$              2.19


$              1.96


$              8.94


$              5.59













Average Number of Common Shares









Basic


375


336


352


336


Diluted


388


339


359


338

























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


The press release discusses Apache's cash from operations before changes in operating assets and liabilities.  It is presented because management believes the information is useful for investors because it is used internally 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


For the Year





Ended December 31,


Ended December 31,





2010


2009


2010


2009


Net cash provided by operating activities

$       1,926


$       1,544


$       6,726


$       4,224


Changes in operating assets and liabilities

55


(98)


642


761


Cash from operations before changes in










operating assets and liabilities

$       1,981


$       1,446


$       7,368


$       4,985














APACHE CORPORATION


OIL & GAS RESERVE INFORMATION


For the Year Ended December 31, 2010















OIL (Mbbl)














U.S.

Canada

Egypt

Australia

North Sea

Argentina

Total



Balance - Dec 31, 2009

487,655

135,086

115,593

78,441

171,714

23,520

1,012,009




Extensions and Discoveries

43,879

5,384

41,175

4,452

3,383

396

98,669




Purchases


133,627

25,342

11,261

-

-

-

170,230




Revisions


6,943

(13,270)

(4,723)

-

-

363

(10,687)




Production


(35,250)

(5,322)

(36,179)

(16,757)

(20,729)

(3,634)

(117,871)




Sales


-

(73)

-

-

-

-

(73)



Balance - Dec 31, 2010

636,854

147,147

127,127

66,136

154,368

20,645

1,152,277















NGL's (Mbbl)














U.S.

Canada

Egypt

Australia

North Sea

Argentina

Total



Balance - Dec 31, 2009

35,982

11,688

-

-

-

7,569

55,239




Extensions and Discoveries

29,049

1,432

30

-

-

30

30,541




Purchases


61,504

17,098

-

-

-

-

78,602




Revisions


654

(1,322)

-

-

-

16

(652)




Production


(5,028)

(1,053)

(30)

-

-

(1,161)

(7,272)



Balance - Dec 31, 2010

122,161

27,843

-

-

-

6,454

156,458















Oil & NGL's














U.S.

Canada

Egypt

Australia

North Sea

Argentina

Total



Balance - Dec 31, 2009

523,637

146,774

115,593

78,441

171,714

31,089

1,067,248




Extensions and Discoveries

72,928

6,816

41,205

4,452

3,383

426

129,210




Purchases


195,131

42,440

11,261

-

-

-

248,832




Revisions


7,597

(14,592)

(4,723)

-

-

379

(11,339)




Production


(40,278)

(6,375)

(36,209)

(16,757)

(20,729)

(4,795)

(125,143)




Sales


-

(73)

-

-

-

-

(73)



Balance - Dec 31, 2010

759,015

174,990

127,127

66,136

154,368

27,099

1,308,735















GAS (MMcf)














U.S.

Canada

Egypt

Australia

North Sea

Argentina

Total



Balance - Dec 31, 2009

2,437,921

2,305,348

1,159,141

1,361,441

4,851

527,329

7,796,031




Extensions and Discoveries

102,180

274,755

46,692

199,958

166

71,632

695,383




Purchases


951,654

1,064,618

49,044

-

-

-

2,065,316




Revisions


47,989

(8,211)

(41,137)

-

-

1,173

(186)




Production


(266,759)

(144,542)

(136,823)

(72,901)

(873)

(67,463)

(689,361)




Sales


-

(1)

-

-

-

-

(1)



Balance - Dec 31, 2010

3,272,985

3,491,967

1,076,917

1,488,498

4,144

532,671

9,867,182



























TOTAL BOE (Mboe)













U.S.

Canada

Egypt

Australia

North Sea

Argentina

Total



Balance - Dec 31, 2009

929,958

530,997

308,783

305,348

172,523

118,977

2,366,586




Extensions and Discoveries

89,958

52,609

48,987

37,778

3,411

12,365

245,108




Purchases


353,740

219,876

19,435

-

-

-

593,051




Revisions


15,595

(15,961)

(11,579)

-

-

575

(11,370)




Production


(84,738)

(30,465)

(59,013)

(28,907)

(20,875)

(16,039)

(240,037)




Sales


-

(73)

-

-

-

-

(73)



Balance - Dec 31, 2010

1,304,513

756,983

306,613

314,219

155,059

115,878

2,953,265



























Proved developed reserves:











Oil + NGL's (Mbbls)

514,537

113,993

109,657

48,072

115,705

22,458

924,422




Gas (Mboe)


380,686

363,603

124,762

113,794

691

77,033

1,060,569



Balance - Dec 31, 2010 (Mboe)

895,223

477,596

234,419

161,866

116,396

99,491

1,984,991















APACHE CORPORATION


OIL & GAS RESERVES AND COSTS


For the Year Ended December 31, 2010




Reserve Additions (Mboe)













U.S.

Canada

Egypt

Australia

North Sea 

Argentina

Chile

Total














Extensions and Discoveries

89,958

52,609

48,987

37,778

3,411

12,365

-

245,108


Revisions


15,595

(15,961)

(11,579)

-

-

575

-

(11,370)


Purchases


353,740

219,876

19,435

-

-

-

-

593,051



Total Adds


459,293

256,524

56,843

37,778

3,411

12,940

-

826,789


























Capital Cost Information (in millions)












U.S.

Canada

Egypt

Australia

North Sea 

Argentina

Chile

Total


Exploration & Development, excluding Capitalized Interest & Asset Retirement Cost (ARC) (1)











$           1,623

860

757

624

617

240

20

$           4,741


Acquisitions, excluding ARC - Acquired (2)











Proved


4,815

2,694

325

-

-

-

-

7,834



Unproved


2,497

542

145

32

-

-

-

3,216





$           8,935

4,096

1,227

656

617

240

20

$         15,791














(1)   Reconciliation of Exploration and Development Costs to Exploration and Development Costs, excluding Capitalized Interest and Asset Retirement Cost, a Non-GAAP Financial Measure



























Presented below is a reconciliation of exploration and development costs (GAAP) to exploration and development costs, excluding capitalized interest and asset retirement cost (Non-GAAP).  Management believes exploration and development costs, excluding capitalized interest and asset retirement cost is a more accurate reflection of the expenditures during the current year.  



















U.S.

Canada

Egypt

Australia

North Sea

Argentina

Chile

Total














Exploration & Development Costs

$           1,985

923

767

732

617

267

20

$           5,311


Less: Capitalized Interest

(52)

(23)

(10)

(15)

-

(11)

-

(111)


Less: Asset Retirement Cost

(310)

(40)

-

(93)

-

(16)

-

(459)















Exploration, Development, excluding Capitalized Interest & Asset Retirement Cost











$           1,623

860

757

624

617

240

20

$           4,741














(2) Reconciliation of Total Acquisition Costs to Acquisitions, excluding Asset Retirement Cost - Acquired, a Non-GAAP Financial Measure















Presented below is a reconciliation of total acquisition costs (GAAP) to acquisitions, excluding asset retirement cost - acquired (Non-GAAP).  Management believes acquisitions, excluding asset retirement cost - acquired is a more accurate reflection of the costs of acquisitions during the current year.  



















U.S.

Canada

Egypt

Australia

North Sea

Argentina

Chile

Total














Total Acquisition Costs











Proved


$           5,604

2,752

325

-

-

-

-

$           8,681



Unproved


2,497

542

145

32




3,216


Less: ARC - Acquired

(789)

(58)

-

-

-

-

-

(847)















Acquisitions, excluding ARC - Acquired

$           7,312

3,236

470

32

-

-

-

$         11,050















SOURCE Apache Corporation


Apache Corporation
2000 Post Oak Boulevard , Houston, TX 77056
Service provided by Shareholder.com

Add your comment:
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement