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Apache's 14% Production Growth Lifts Earnings 50% to Record $4.5 Billion in 2011

HOUSTON, Feb. 16, 2012 /PRNewswire/ -- Apache Corporation (NYSE, Nasdaq: APA) today reported that record production and strong oil prices combined to generate record full-year 2011 earnings of $4.5 billion or $11.47 per diluted common share, up 50 percent from $3 billion or $8.46 per share in 2010.

Production increased 14 percent to 748,000 barrels of oil equivalent (boe) per day. Cash from operations before changes in operating assets and liabilities* rose 39 percent to $10.2 billion. Excluding certain items that management believes affect the comparability of operating results, Apache reported adjusted earnings* of $4.7 billion or $11.83 per share, up from $3.2 billion or $8.94 per share in 2010.

"Apache's balanced portfolio and returns focus fueled an outstanding year in 2011, setting records for production, earnings, revenues, proved reserves and cash flow," said G. Steven Farris, chairman and chief executive officer.

In the fourth quarter, earnings totaled $1.2 billion or $2.98 per diluted share, up from $670 million or $1.77 per share in the prior-year period. Production totaled 759,000 boe per day, up 4 percent from the year-earlier quarter, and cash from operations before changes in operating assets and liabilities* totaled $2.7 billion, up from $2 billion in the year-earlier period. Apache reported fourth-quarter adjusted earnings* of $1.2 billion or $2.94 per share.

Apache's oil and natural gas liquids production was 50 percent of total volume in 2011 but contributed nearly 80 percent of revenues because of the wide gap between global crude oil and North American natural gas prices. Apache's results also benefited from the price differentials between oil prices in basins linked to the West Texas Intermediate benchmark and higher prices for oil produced in the Gulf of Mexico, Egypt, Australia and the North Sea that represents approximately 76 percent of its crude production.

Apache ended 2011 with proved reserves of 3 billion boe, up 1 percent from 2010. Apache's 2011 production was 273 million boe (MMboe). The company added 422 MMboe, or 155 percent of production, through extensions, discoveries and acquisitions. Divestitures and revisions totaled 113 MMboe. Apache spent $9.1 billion on exploration, development and acquisitions capital, excluding asset retirement obligations and capitalized interest.*

During 2011, with the continued downward pressure on North American natural gas prices, Apache transitioned its North American drilling program to oily and liquids-rich targets in the Permian and Anadarko basins, the Gulf of Mexico and Canada.

Apache also sanctioned several long-lead-time projects in Australia that are expected to contribute to future growth, including the Julimar/Wheatstone LNG project and the Macedon, Coniston and Balnaves developments. The company also sanctioned development of the Anadarko Petroleum-operated Lucius unit, a world-class discovery in the Keathley Canyon area of the deepwater Gulf of Mexico.

Additional drilling is planned in 2012 in the North Sea, where Apache completed its acquisition of Mobil North Sea Limited, including the operated Beryl, Nevis, Ness, Nevis South, Skene and Buckland fields. First production from the Bacchus development near the Forties Field is planned in March.

Apache plans to spend $9.5 billion of drilling capital in 2012, up from $8 billion in 2011, Farris said. "We will live within our cash flow, and we will review capital allocations quarterly.

"We are planning to drill up to 20-30 percent more wells in 2012 than in 2011, when we drilled approximately 1,100 gross wells," he said. "More than half of the wells planned in 2012 will be drilled in the Permian and Anadarko Basins to exploit stacked oil and liquids-rich pay opportunities in these prolific basins."

Apache also plans active exploratory drilling programs in Australia, the deepwater Gulf of Mexico, Egypt, Alaska, Kenya and New Zealand.

"We are in a good position to deliver profitable growth in 2012 and future years," Farris said. "Based on our current capital program, we anticipate production will increase in the range of 7-13 percent in 2012."

Apache recently announced that it has increased the regular quarterly cash dividend on the company's common shares by 13 percent to 17 cents per share. "With our balanced portfolio and deep inventory of drilling locations and development projects, we have confidence in Apache's future," Farris said.

NOTE: Apache will conduct a conference call to discuss its fourth-quarter and full-year 2011 results at 1 p.m. Central time on Thursday, Feb. 16. 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. on Feb. 16. To access the telephone playback, dial 855-859-2056 or 404-537-3406 for international calls. The conference access code is 42312218.

*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.

About Apache

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. Apache posts announcements, operational updates, investor information and copies of all press releases on its website, www.apachecorp.com.

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 LNG projects. 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 2010 Form 10-K as amended by Amendment No. 1 to our annual report on Form 10-K/A 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.

APACHE CORPORATION

 

STATEMENT OF CONSOLIDATED OPERATIONS

 

(In millions, except per share data)

 
                   
                   
                   
   

For the Quarter

 

For the Year

 
   

Ended December 31,

 

Ended December 31,

 
   

2011

 

2010

 

2011

 

2010

 
                   

REVENUES AND OTHER:

               
 

Oil and gas production revenues

$ 4,295

 

$ 3,474

 

$ 16,810

 

$ 12,183

 
 

Other

2

 

(40)

 

78

 

(91)

 
   

4,297

 

3,434

 

16,888

 

12,092

 
                   

COSTS AND EXPENSES:

               
 

Depreciation, depletion and amortization

               
 

   Recurring

1,111

 

928

 

4,095

 

3,083

 
 

   Additional

63

 

-

 

109

 

-

 
 

Asset retirement obligation accretion

40

 

37

 

154

 

111

 
 

Lease operating expenses

659

 

639

 

2,605

 

2,032

 
 

Gathering and transportation

75

 

52

 

296

 

178

 
 

Taxes other than income

236

 

168

 

899

 

690

 
 

General and administrative

132

 

120

 

459

 

380

 
 

Merger, acquisitions & transition

5

 

167

 

20

 

183

 
 

Financing costs, net

35

 

55

 

158

 

229

 
   

2,356

 

2,166

 

8,795

 

6,886

 
                   

INCOME BEFORE INCOME TAXES

1,941

 

1,268

 

8,093

 

5,206

 
 

Current income tax provision

571

 

333

 

2,263

 

1,222

 
 

Deferred income tax provision

181

 

246

 

1,246

 

952

 
                   

NET INCOME

1,189

 

689

 

4,584

 

3,032

 
 

Preferred stock dividends

19

 

19

 

76

 

32

 
                   

INCOME ATTRIBUTABLE TO COMMON STOCK

$ 1,170

 

$    670

 

$   4,508

 

$   3,000

 
                   

NET INCOME PER COMMON SHARE:

               
 

Basic

$   3.05

 

$   1.79

 

$   11.75

 

$     8.53

 
 

Diluted

$   2.98

 

$   1.77

 

$   11.47

 

$     8.46

 
                   

WEIGHTED-AVERAGE NUMBER OF COMMON

               

  SHARES OUTSTANDING:

               
 

Basic

384

 

375

 

384

 

352

 
 

Diluted

400

 

388

 

400

 

359

 
                   

DIVIDENDS DECLARED PER COMMON SHARE

$   0.15

 

$   0.15

 

$     0.60

 

$     0.60

 
                 

 

APACHE CORPORATION

 

SUMMARY OF CAPITAL COSTS INCURRED

 

(In millions)

 
                       
                       
       

For the Quarter

 

For the Year

 
       

Ended December 31,

 

Ended December 31,

 
       

2011

 

2010

 

2011

 

2010

 

CAPITAL EXPENDITURES (1):

               
 

Exploration & Development Costs

               
   

United States

$      792

 

$      584

 

$ 2,768

 

$   1,623

 
   

Canada

208

 

267

 

817

 

860

 
     

North America

1,000

 

851

 

3,585

 

2,483

 
   

Egypt

222

 

247

 

896

 

757

 
   

Australia

131

 

223

 

576

 

624

 
   

North Sea

205

 

180

 

823

 

617

 
   

Argentina

101

 

73

 

346

 

240

 
   

Other International

12

 

-

 

61

 

20

 
     

International

671

 

723

 

2,702

 

2,258

 
     

Worldwide Exploration & Development Costs

$   1,671

 

$   1,574

 

$ 6,287

 

$   4,741

 
                       
 

Gathering, Transmission and Processing Facilities

               
   

United States

$        18

 

$           -

 

$      27

 

$           -

 
   

Canada

35

 

52

 

148

 

159

 
   

Egypt

37

 

71

 

111

 

182

 
   

Australia

90

 

60

 

345

 

162

 
   

Argentina

5

 

1

 

12

 

3

 
     

Total Gathering, Transmission and Processing

$      185

 

$      184

 

$    643

 

$      506

 
                       
 

Capitalized Interest

$        70

 

$        56

 

$    263

 

$      120

 
                       
 

Capital Expenditures, excluding acquisitions

$   1,926

 

$   1,814

 

$ 7,193

 

$   5,367

 
                       
 

Acquisitions

$   2,696

 

$   8,007

 

$ 3,189

 

$ 11,557

 
                       
 

(1) Accrual basis

               
                       

APACHE CORPORATION

 

SUMMARY BALANCE SHEET INFORMATION

 

(In millions)

 
                       
       

December 31,

 

December 31,

         
       

2011

 

2010

         
                       
 

Cash and Cash Equivalents

$      295

 

$      134

         
 

Other Current Assets

4,508

 

3,346

         
 

Property and Equipment, net

45,448

 

38,151

         
 

Goodwill

1,114

 

1,032

         
 

Other Assets

686

 

762

         
 

Total Assets

$ 52,051

 

$ 43,425

         
                       
 

Short-Term Debt

$      431

 

$        46

         
 

Other Current Liabilities

4,532

 

3,478

         
 

Long-Term Debt

6,785

 

8,095

         
 

Deferred Credits and Other Noncurrent Liabilities

11,310

 

7,429

         
 

Shareholders' Equity

28,993

 

24,377

         
 

Total Liabilities and Shareholders' Equity

$ 52,051

 

$ 43,425

         
                       
 

Common shares outstanding at end of period

384

 

382

         
                     

 

APACHE CORPORATION

 

PRODUCTION INFORMATION

 
                       
                       
       

For the Quarter

 

For the Year

 
       

Ended December 31,

 

Ended December 31,

 
       

2011

 

2010

 

2011

 

2010

 
                       

 OIL VOLUME - Barrels per day

               
 

Central

7,323

 

5,077

 

6,788

 

3,544

 
 

Permian

54,381

 

46,586

 

50,991

 

39,441

 
 

GOM Deepwater

6,507

 

3,328

 

6,022

 

2,311

 
 

GOM Shelf

47,918

 

46,767

 

46,097

 

44,836

 
 

GC Onshore

10,051

 

8,190

 

9,517

 

6,444

 
   

United States

126,180

 

109,948

 

119,415

 

96,576

 
 

Canada

14,882

 

15,557

 

14,252

 

14,581

 
   

North America

141,062

 

125,505

 

133,667

 

111,157

 
 

Egypt

 

103,908

 

107,238

 

103,912

 

99,122

 
 

Australia

38,169

 

38,738

 

38,228

 

45,908

 
 

North Sea

55,859

 

52,453

 

54,541

 

56,791

 
 

Argentina

9,655

 

10,382

 

9,597

 

9,956

 
   

International

207,591

 

208,811

 

206,278

 

211,777

 
     

Total

348,653

 

334,316

 

339,945

 

322,934

 
                       

 NATURAL GAS VOLUME - Mcf per day

               
 

Central

193,722

 

223,883

 

213,447

 

209,346

 
 

Permian

178,766

 

162,266

 

173,188

 

116,771

 
 

GOM Deepwater

48,144

 

35,883

 

52,193

 

28,368

 
 

GOM Shelf

335,434

 

355,669

 

341,253

 

320,360

 
 

GC Onshore

106,505

 

60,566

 

84,661

 

56,002

 
   

United States

862,571

 

838,267

 

864,742

 

730,847

 
 

Canada

631,122

 

593,523

 

632,550

 

396,005

 
   

North America

1,493,693

 

1,431,790

 

1,497,292

 

1,126,852

 
 

Egypt

 

355,091

 

368,350

 

365,418

 

374,858

 
 

Australia

189,852

 

191,585

 

185,079

 

199,729

 
 

North Sea

2,366

 

2,118

 

2,284

 

2,391

 
 

Argentina

221,523

 

198,513

 

212,311

 

184,830

 
   

International

768,832

 

760,566

 

765,092

 

761,808

 
     

Total

2,262,525

 

2,192,356

 

2,262,384

 

1,888,660

 
                       

 NGL VOLUME - Barrels per day

               
 

Central

5,566

 

1,045

 

2,268

 

659

 
 

Permian

12,256

 

12,740

 

11,799

 

7,559

 
 

GOM Deepwater

582

 

440

 

715

 

466

 
 

GOM Shelf

4,446

 

4,240

 

5,278

 

3,987

 
 

GC Onshore

2,556

 

1,254

 

2,051

 

1,106

 
   

United States

25,406

 

19,719

 

22,111

 

13,777

 
 

Canada

5,183

 

5,637

 

5,958

 

2,884

 
   

North America

30,589

 

25,356

 

28,069

 

16,661

 
 

Egypt

 

-

 

326

 

49

 

82

 
 

North Sea

-

 

-

 

4

 

-

 
 

Argentina

2,997

 

3,265

 

3,018

 

3,180

 
   

International

2,997

 

3,591

 

3,071

 

3,262

 
     

Total

33,586

 

28,947

 

31,140

 

19,923

 
                       

 BOE per day

               
 

Central

45,176

 

43,436

 

44,630

 

39,094

 
 

Permian

96,431

 

86,370

 

91,655

 

66,462

 
 

GOM Deepwater

15,114

 

9,749

 

15,436

 

7,505

 
 

GOM Shelf

108,270

 

110,284

 

108,251

 

102,217

 
 

GC Onshore

30,357

 

19,539

 

25,678

 

16,883

 
   

United States

295,348

 

269,378

 

285,650

 

232,161

 
 

Canada

125,252

 

120,115

 

125,636

 

83,466

 
   

North America

420,600

 

389,493

 

411,286

 

315,627

 
 

Egypt

 

163,090

 

168,956

 

164,864

 

161,680

 
 

Australia

69,812

 

70,669

 

69,074

 

79,196

 
 

North Sea

56,253

 

52,806

 

54,925

 

57,190

 
 

Argentina

49,572

 

46,733

 

48,000

 

43,941

 
   

International

338,727

 

339,164

 

336,863

 

342,007

 
     

Total

759,327

 

728,657

 

748,149

 

657,634

 
                     

 

APACHE CORPORATION

 

PRICE INFORMATION

 
                       
                       
       

For the Quarter

 

For the Year

 
       

Ended December 31,

 

Ended December 31,

 
       

2011

 

2010

 

2011

 

2010

 
                       

 AVERAGE OIL PRICE PER BARREL

               
 

Central

$            89.36

 

$            80.76

 

$            89.89

 

$            76.27

 
 

Permian

89.99

 

81.26

 

90.87

 

76.00

 
 

GOM Deepwater

112.77

 

85.32

 

106.75

 

79.68

 
 

GOM Shelf

115.70

 

85.59

 

108.92

 

78.88

 
 

GC Onshore

112.60

 

85.27

 

105.97

 

79.57

 
   

United States (1)

99.54

 

81.29

 

95.51

 

76.13

 
 

Canada

94.38

 

75.73

 

93.19

 

72.83

 
   

North America (1)

98.99

 

80.60

 

95.27

 

75.69

 
 

Egypt (1)

106.65

 

88.27

 

109.92

 

79.45

 
 

Australia (1)

109.53

 

87.14

 

111.22

 

77.32

 
 

North Sea (2)

104.64

 

78.43

 

104.09

 

76.66

 
 

Argentina

76.67

 

59.23

 

68.02

 

57.47

 
   

International (1, 2)

105.24

 

84.14

 

106.67

 

77.21

 
     

Total (1, 2)

102.71

 

82.81

 

102.19

 

76.69

 
                       

 AVERAGE NATURAL GAS PRICE PER MCF

               
 

Central

$              3.92

 

$              3.91

 

$              4.44

 

$              4.53

 
 

Permian

5.05

 

4.68

 

5.17

 

5.21

 
 

GOM Deepwater

3.48

 

3.93

 

4.06

 

4.35

 
 

GOM Shelf

3.86

 

4.25

 

4.42

 

4.76

 
 

GC Onshore

3.73

 

3.91

 

4.34

 

4.66

 
   

United States (1)

4.59

 

4.95

 

4.91

 

5.28

 
 

Canada (1)

4.15

 

4.08

 

4.47

 

4.48

 
   

North America (1)

4.40

 

4.59

 

4.72

 

5.00

 
 

Egypt

 

4.82

 

3.84

 

4.66

 

3.62

 
 

Australia

2.64

 

2.33

 

2.69

 

2.24

 
 

North Sea

20.49

 

23.12

 

22.25

 

18.64

 
 

Argentina

2.82

 

2.04

 

2.64

 

1.96

 
   

International

3.75

 

3.04

 

3.67

 

2.90

 
     

Total (1)

4.18

 

4.06

 

4.37

 

4.15

 
                       

 AVERAGE NGL PRICE PER BARREL

               
 

Central

$            29.96

 

$            50.32

 

$            38.67

 

$            47.67

 
 

Permian

39.09

 

43.78

 

47.88

 

39.49

 
 

GOM Deepwater

58.28

 

45.15

 

50.44

 

45.27

 
 

GOM Shelf

55.07

 

43.18

 

49.63

 

39.69

 
 

GC Onshore

56.08

 

53.18

 

58.51

 

55.98

 
   

United States

42.03

 

44.63

 

48.42

 

41.45

 
 

Canada

50.16

 

36.64

 

45.72

 

36.61

 
   

North America

43.41

 

42.85

 

47.85

 

40.62

 
 

Egypt

 

-

 

69.75

 

66.36

 

69.75

 
 

North Sea

-

 

-

 

65.45

 

-

 
 

Argentina

27.00

 

21.61

 

27.90

 

27.08

 
   

International

27.00

 

25.98

 

28.56

 

28.15

 
     

Total

41.95

 

40.76

 

45.95

 

38.58

 
                       
                       
 

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

       
 

(2)  Prices reflect the impact of the North Sea fixed-price oil sales contract.

       
                     

 

APACHE CORPORATION

 

NON-GAAP FINANCIAL MEASURES

 

(In millions, except per share data)

 
                     
                     

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

 

For the Year

 
     

Ended December 31,

 

Ended December 31,

 
     

2011

 

2010

 

2011

 

2010

 
                     

Income Attributable to Common Stock (GAAP)

$            1,170

 

$               670

 

$            4,508

 

$            3,000

 
                     

Adjustments:

               
 

U.K. tax rate increase impact

-

 

-

 

218

 

-

 
 

Oil and gas asset impairment of Chile, net of tax

60

 

-

 

60

 

-

 
 

Merger, acquisitions & transition, net of tax

4

 

109

 

13

 

120

 
 

Unrealized foreign currency fluctuation impact on deferred tax expense  

(5)

 

51

 

(73)

 

52

 
 

Deferred tax adjustments

 

(75)

 

-

 

(75)

 

-

 

Adjusted Earnings  (Non-GAAP)

$            1,154

 

$               830

 

$            4,651

 

$            3,172

 
                     

Net Income per Common Share - Diluted (GAAP)

$              2.98

 

$              1.77

 

$            11.47

 

$              8.46

 
                     

Adjustments:

               
 

U.K. tax rate increase impact

-

 

-

 

0.55

 

-

 
 

Oil and gas asset impairment of Chile, net of tax

0.15

 

-

 

0.15

 

-

 
 

Merger, acquisitions & transition, net of tax

0.01

 

0.29

 

0.03

 

0.33

 
 

Unrealized foreign currency fluctuation impact on deferred tax expense  

(0.01)

 

0.13

 

(0.18)

 

0.15

 
 

Deferred tax adjustments

 

(0.19)

 

-

 

(0.19)

 

-

 

Adjusted Earnings Per Share - Diluted (Non-GAAP)

$              2.94

 

$              2.19

 

$            11.83

 

$              8.94

 
                     
                     
                     
                     

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,

 
     

2011

 

2010

 

2011

 

2010

 

Net cash provided by operating activities

$            2,782

 

$            1,926

 

$            9,953

 

$            6,726

 

Changes in operating assets and liabilities

(118)

 

55

 

281

 

642

 

Cash from operations before changes in

               
 

operating assets and liabilities

$            2,664

 

$            1,981

 

$          10,234

 

$            7,368

 
                   

 

APACHE CORPORATION

 

OIL & GAS RESERVES INFORMATION

 

For the Year Ended December 31, 2011

 
                     
                     
 

OIL (Mbbl)

               
     

U.S.

Canada

Egypt

Australia

North Sea

Argentina

Total

 
 

Balance - Dec 31, 2010

636,854

147,147

127,127

66,136

154,368

20,645

1,152,277

 
   

Extensions and Discoveries

45,676

16,712

45,021

15,762

332

3,230

126,733

 
   

Purchases

5,097

705

-

-

34,612

-

40,414

 
   

Revisions

(8,904)

(17,117)

(6,185)

-

-

215

(31,991)

 
   

Production

(43,586)

(5,203)

(37,928)

(13,953)

(19,907)

(3,503)

(124,080)

 
   

Sales

(1,123)

(653)

-

-

-

-

(1,776)

 
 

Balance - Dec 31, 2011

634,014

141,591

128,035

67,945

169,405

20,587

1,161,577

 
                     
 

NGL's (Mbbl)

               
     

U.S.

Canada

Egypt

Australia

North Sea

Argentina

Total

 
 

Balance - Dec 31, 2010

122,161

27,843

-

-

-

6,454

156,458

 
   

Extensions and Discoveries

43,915

5,890

18

-

72

1,784

51,679

 
   

Purchases

586

47

-

-

9,191

-

9,824

 
   

Revisions

1,713

774

-

-

-

17

2,504

 
   

Production

(8,072)

(2,173)

(18)

-

(1)

(1,102)

(11,366)

 
   

Sales

(270)

(931)

-

-

-

-

(1,201)

 
 

Balance - Dec 31, 2011

160,033

31,450

-

-

9,262

7,153

207,898

 
                     
 

Oil & NGL's

               
     

U.S.

Canada

Egypt

Australia

North Sea

Argentina

Total

 
 

Balance - Dec 31, 2010

759,015

174,990

127,127

66,136

154,368

27,099

1,308,735

 
   

Extensions and Discoveries

89,591

22,602

45,039

15,762

404

5,014

178,412

 
   

Purchases

5,683

752

-

-

43,803

-

50,238

 
   

Revisions

(7,191)

(16,343)

(6,185)

-

-

232

(29,487)

 
   

Production

(51,658)

(7,376)

(37,946)

(13,953)

(19,908)

(4,605)

(135,446)

 
   

Sales

(1,393)

(1,584)

-

-

-

-

(2,977)

 
 

Balance - Dec 31, 2011

794,047

173,041

128,035

67,945

178,667

27,740

1,369,475

 
                     
 

GAS (MMcf)

               
     

U.S.

Canada

Egypt

Australia

North Sea

Argentina

Total

 
 

Balance - Dec 31, 2010

3,272,985

3,491,967

1,076,917

1,488,498

4,144

532,671

9,867,182

 
   

Extensions and Discoveries

169,506

505,049

77,049

148,640

475

81,274

981,993

 
   

Purchases

67,595

8,838

-

-

104,658

-

181,091

 
   

Revisions

(7,716)

(133,359)

(37,623)

-

-

1,107

(177,591)

 
   

Production

(315,631)

(230,880)

(133,377)

(67,554)

(835)

(77,493)

(825,770)

 
   

Sales

(210,528)

(94,104)

-

-

-

-

(304,632)

 
 

Balance - Dec 31, 2011

2,976,211

3,547,511

982,966

1,569,584

108,442

537,559

9,722,273

 
                     
                     
 

TOTAL BOE (Mboe)

               
     

U.S.

Canada

Egypt

Australia

North Sea

Argentina

Total

 
 

Balance - Dec 31, 2010

1,304,513

756,983

306,613

314,219

155,059

115,878

2,953,265

 
   

Extensions and Discoveries

117,842

106,778

57,882

40,534

483

18,559

342,078

 
   

Purchases

16,949

2,225

-

-

61,246

-

80,420

 
   

Revisions

(8,477)

(38,570)

(12,456)

-

-

417

(59,086)

 
   

Production

(104,263)

(45,856)

(60,176)

(25,211)

(20,047)

(17,521)

(273,074)

 
   

Sales

(36,482)

(17,267)

-

-

-

-

(53,749)

 
 

Balance - Dec 31, 2011

1,290,082

764,293

291,863

329,542

196,741

117,333

2,989,854

 
                     
                     
 

Proved developed reserves:

               
   

Oil + NGL's (Mbbls)

535,741

105,102

105,840

35,725

145,743

21,940

950,091

 
   

Gas (Mboe)

369,328

351,467

116,811

112,603

17,505

74,522

1,042,236

 
 

Balance - Dec 31, 2011 (Mboe)

905,069

456,569

222,651

148,328

163,248

96,462

1,992,327

 
                   

 

APACHE CORPORATION

 

OIL & GAS RESERVES AND COSTS

 

For the Year Ended December 31, 2011

 
                     
   

Reserve Additions (Mboe)

                 
   

U.S.

Canada

Egypt

Australia

North Sea

Argentina

Other

Total

 
                     

Extensions and Discoveries

117,842

106,778

57,882

40,534

483

18,559

-

342,078

 

Purchases

16,949

2,225

-

-

61,246

-

-

80,420

 
 

Additions excluding revisions

134,791

109,003

57,882

40,534

61,729

18,559

-

422,498

 

Revisions

(8,477)

(38,570)

(12,456)

-

-

417

-

(59,086)

 
 

Total

126,314

70,433

45,426

40,534

61,729

18,976

-

363,412

 
                     
                     

Capital Cost Information (Non-GAAP) (in millions)

                 
   

U.S.

Canada

Egypt

Australia

North Sea

Argentina

Other

Total

 

Exploration & Development, excluding Capitalized 

                 

Interest and Asset Retirement Cost (ARC) (1)

$   2,768

$      817

$     896

$       576

$         823

$         346

$    61

$   6,287

 

Acquisitions, excluding ARC - Acquired (2)

                 
 

Proved

318

-

(12)

-

1,857

-

-

2,163

 
 

Unproved

116

33

2

48

476

-

13

688

 

    Total

$   3,202

$      850

$     886

$       624

$      3,156

$         346

$    74

$   9,138

 
                     
                     
                     
                     

(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

Other

Total

 
                     

Exploration & Development Costs (in millions)

$   3,250

$   1,092

$     914

$       715

$         959

$         358

$    61

$   7,349

 
 

Less: Capitalized Interest

(152)

(47)

(18)

(14)

-

(12)

-

(243)

 
 

Less: ARC

(330)

(228)

-

(125)

(136)

-

-

(819)

 
                     
 

  Total Adds

$   2,768

$      817

$     896

$       576

$         823

$         346

$    61

$   6,287

 
                     
                     

(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

Other

Total

 
                     

Total Acquisition Costs (in millions)

                 
 

Proved

$      368

$         -

$      (12)

$          -

$      2,399

$           -

$     -

$   2,755

 
 

Unproved

116

33

2

48

476

 

13

688

 

Less: ARC - Acquired

(50)

-

-

-

(542)

-

-

(592)

 
                     
 

Acquisitions, excluding ARC - Acquired

$      434

$        33

$      (10)

$         48

$      2,333

$           -

$    13

$   2,851

 
                   

 

APA-F

SOURCE Apache Corporation

News Provided by Acquire Media

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