EXHIBIT 99.1
CONTACTS: | ||||
Media: | Bill Mintz Robert Dye | (713) 296-7276 (713) 296-6662 | ||
Investors: | Tom Chambers | (713) 296-6685 | ||
(Web site): | www.apachecorp.com |
FOR RELEASE AT 7:45 A.M. CENTRAL TIME
APACHE REPORTS RECORD 2009 PRODUCTION OF 583,000 BOE PER DAY, UP 9%
Adjusted earnings total $1.9 billion or $5.59 per share
Houston, Feb. 18, 2010 — Apache Corporation (NYSE, Nasdaq: APA) today reported that international growth fueled record 2009 production of 583,000 barrels of oil equivalent per day, up 9 percent from 2008.
“Although we reduced capital expenditures by about 40 percent from 2008 levels to achieve our goal of living within our cash flow, Apache increased production by 9 percent and ended 2009 with $2 billion in cash,” said G. Steven Farris, Apache’s chairman and chief executive officer. “In 2010, we anticipate continued growth of 5 to 10 percent as we ramp up drilling activity across our portfolio and commence production from earlier discoveries.”
“We are off to a fast start in 2010, with eight consecutive successful wells in the Gulf of Mexico and first oil production from our Van Gogh Field discovery in Western Australia,” Farris said. “Our portfolio is balanced in terms of geology, geography and commodity mix, and each of our regions has critical mass of highly prospective acreage, much of which is held by production.
“Apache’s balanced portfolio drove cash flow in 2009 as oil prices recovered,” he said. “While oil and natural gas liquids comprised 50 percent of Apache’s output, they provided 72 percent of revenues. We also shaved 20 percent off of our per-equivalent-barrel lifting costs.”
Apache reported fourth-quarter adjusted earnings,* which exclude certain items that impact the comparability of operating results, more than doubled to $664 million or $1.96 per diluted common share from $276 million or 82 cents per share in the prior-year period. For the year ending Dec. 31, Apache reported adjusted earnings of $1.9 billion or $5.59 per share compared with $3.8 billion or $11.22 per share in 2008.
Using generally accepted accounting principles (GAAP), Apache reported fourth-quarter net income of $583 million or $1.72 per share compared with a net loss of $2.9 billion, or $8.80 per share in the prior-year period. The year-earlier results included a $3.6-billion, non-cash, after-tax reduction in the carrying value of oil and gas properties stemming from significantly lower commodity prices. For the year ending Dec. 31, Apache reported a net loss of $292 million or 87 cents per share, which included a $1.98-billion, non-cash, after-tax reduction which was the result of lower commodity prices at the beginning of 2009. Apache reported net income of $706 million or $2.09 per share in 2008.
“We plan to continue to allocate capital based on our projected cash flow,” Farris said. “However, we have ample liquidity from our cash balances and committed credit facilities to pursue incremental opportunities, either through additional exploration or value-adding acquisitions.”
Drivers for 2010 growth include:
• | Production from Van Gogh as well as from Pyrenees, a second oil development in Australia expected to commence production in the first half; | ||
• | Increased activity in the Granite Wash play in Western Oklahoma and the Texas Panhandle; | ||
• | Year-round activity at the Horn River Basin shale play in British Columbia, and | ||
• | Continued exploration and development in Egypt, including new processing capacity that will increase oil production from earlier discoveries in the Faghur Basin. |
Cash from operations before changes in operating assets and liabilities* totaled $5 billion in 2009, down from $7.4 billion in 2008. Fourth-quarter cash from operations totaled $1.4 billion, up from $1.1 billion in the prior-year period.
“Cash flow came in ahead of our initial projections, which enabled Apache to invest $4.1 billion in total capital, including facilities capital and $300 million in tactical acquisitions, and end the year with slightly more cash on the balance sheet,” Farris said. “Right now, we plan to spend in the range of $6 billion to $6.5 billion on exploration and development, to be reviewed quarterly.”
Apache ended 2009 with proved reserves of 2.37 billion barrels of oil equivalent. The company added 216 million barrels of oil equivalent (MMboe) through discoveries, extensions and acquisitions but excluding price-related downward revisions. Apache’s 2009 production was 213 MMboe. Apache spent $3.455 billion of exploration, development and acquisitions capital, excluding asset retirement obligations and capitalized interest.*
In 2009, Apache’s international production increased 21 percent. Net production in Egypt increased 38 percent as a result of additional gas and condensate processing capacity at the Qasr field and from the Phiops oil discovery in the Faghur Basin. In Australia, production increased 40 percent as output was restored at Varanus Island after the June 2008 explosion; production currently exceeds pre-incident levels. The North Sea Region recorded its second consecutive year of production growth.
Apache’s North American production declined slightly in 2009 as a result of curtailed drilling activity.
Fourth-quarter production increased 14 percent from the prior-year period to 589,799 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, updates and investor information, in addition to 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.
-end-
NOTE: Apache will conduct a conference call to discuss its fourth-quarter and full-year 2009 results at 1 p.m. Central Time on Thursday, Feb. 18. 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. 18. To access the telephone playback, dial (719) 457-0820 and provide Apache’s confirmation code, 4305154.
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 onForm 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.
APACHE CORPORATION
FINANCIAL INFORMATION
(In thousands, except per share data)
FINANCIAL INFORMATION
(In thousands, except per share data)
For the Quarter | For the Year | |||||||||||||||
Ended December 31, | Ended December 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
REVENUES AND OTHER: | ||||||||||||||||
Oil and gas production revenues | $ | 2,570,264 | $ | 1,876,890 | $ | 8,573,927 | $ | 12,327,839 | ||||||||
Other | (15,072 | ) | 60,044 | 40,899 | 61,911 | |||||||||||
2,555,192 | 1,936,934 | 8,614,826 | 12,389,750 | |||||||||||||
COSTS AND EXPENSES: | ||||||||||||||||
Depreciation, depletion and amortization | ||||||||||||||||
Recurring | 615,189 | 667,393 | 2,395,063 | 2,516,437 | ||||||||||||
Additional | — | 5,333,821 | 2,818,161 | 5,333,821 | ||||||||||||
Asset retirement obligation accretion | 25,541 | 24,202 | 104,815 | 101,348 | ||||||||||||
Lease operating expenses | 413,843 | 520,083 | 1,662,140 | 1,909,625 | ||||||||||||
Gathering and transportation | 39,649 | 33,373 | 142,699 | 156,491 | ||||||||||||
Taxes other than income | 192,225 | 139,401 | 579,436 | 984,807 | ||||||||||||
General and administrative | 85,440 | 69,938 | 343,883 | 288,794 | ||||||||||||
Financing costs, net | 60,812 | 49,441 | 242,238 | 166,035 | ||||||||||||
1,432,699 | 6,837,652 | 8,288,435 | 11,457,358 | |||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 1,122,493 | (4,900,718 | ) | 326,391 | 932,392 | |||||||||||
Current income tax provision (benefit) | 358,728 | (39,259 | ) | 841,899 | 1,456,382 | |||||||||||
Deferred income tax provision (benefit) | 177,959 | (1,915,846 | ) | (231,110 | ) | (1,235,944 | ) | |||||||||
NET INCOME (LOSS) | 585,806 | (2,945,613 | ) | (284,398 | ) | 711,954 | ||||||||||
Preferred stock dividends | 3,034 | 1,420 | 7,294 | 5,680 | ||||||||||||
INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK | $ | 582,772 | $ | (2,947,033 | ) | $ | (291,692 | ) | $ | 706,274 | ||||||
NET INCOME (LOSS) PER COMMON SHARE: | ||||||||||||||||
Basic | $ | 1.73 | $ | (8.80 | ) | $ | (0.87 | ) | $ | 2.11 | ||||||
Diluted | $ | 1.72 | $ | (8.80 | ) | $ | (0.87 | ) | $ | 2.09 | ||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 336,489 | 334,967 | 335,852 | 334,351 | ||||||||||||
DILUTED SHARES OUTSTANDING | 338,605 | 334,967 | 335,852 | 337,191 | ||||||||||||
APACHE CORPORATION
FINANCIAL INFORMATION
(In thousands)
FINANCIAL INFORMATION
(In thousands)
For the Quarter | For the Year | |||||||||||||||
Ended December 31, | Ended December 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
COSTS INCURRED: (1) | ||||||||||||||||
North America exploration and development | $ | 326,729 | $ | 912,016 | $ | 1,629,141 | $ | 3,417,275 | ||||||||
International exploration and development | 481,873 | 663,119 | 1,869,072 | 2,595,376 | ||||||||||||
Oil and gas property acquisitions | 52,129 | — | 310,472 | 149,517 | ||||||||||||
$ | 860,731 | $ | 1,575,135 | $ | 3,808,685 | $ | 6,162,168 | |||||||||
(1) | Includes noncash asset retirement costs and capitalized interest as follows: |
Capitalized interest | $ | 15,228 | $ | 19,823 | $ | 60,553 | $ | 73,553 | ||||||||
Asset retirement costs | $ | 71,476 | $ | 163,519 | $ | 292,939 | $ | 513,891 |
December 31, | December 31, | |||||||
2009 | 2008 | |||||||
BALANCE SHEET DATA: | ||||||||
Cash and Cash Equivalents | $ | 2,048,117 | $ | 1,181,450 | ||||
Short-term Investments | — | 791,999 | ||||||
Other Current Assets | 2,537,732 | 2,477,525 | ||||||
Property and Equipment, net | 22,900,615 | 23,958,517 | ||||||
Restricted Cash | — | 13,880 | ||||||
Goodwill | 189,252 | 189,252 | ||||||
Other Assets | 510,027 | 573,862 | ||||||
Total Assets | $ | 28,185,743 | $ | 29,186,485 | ||||
Short-term Debt | $ | 117,326 | $ | 112,598 | ||||
Other Current Liabilities | 2,275,232 | 2,407,837 | ||||||
Long-Term Debt | 4,950,390 | 4,808,975 | ||||||
Deferred Credits and Other Noncurrent Liabilities | 5,064,174 | 5,348,354 | ||||||
Shareholders’ Equity | 15,778,621 | 16,508,721 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 28,185,743 | $ | 29,186,485 | ||||
Common shares outstanding at end of period | 336,437 | 334,710 |
APACHE CORPORATION
FINANCIAL INFORMATION
FINANCIAL INFORMATION
For the Quarter | For the Year | |||||||||||||||
Ended December 31, | Ended December 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
PRODUCTION DATA: | ||||||||||||||||
OIL VOLUME — Barrels per day | ||||||||||||||||
Gulf Coast | 54,665 | 39,928 | 51,757 | 51,142 | ||||||||||||
Central | 38,325 | 38,478 | 37,376 | 38,655 | ||||||||||||
United States | 92,990 | 78,406 | 89,133 | 89,797 | ||||||||||||
Canada | 13,998 | 16,877 | 15,186 | 17,154 | ||||||||||||
North America | 106,988 | 95,283 | 104,319 | 106,951 | ||||||||||||
Egypt | 95,970 | 74,705 | 92,139 | 66,753 | ||||||||||||
Australia | 9,918 | 8,140 | 9,779 | 8,249 | ||||||||||||
North Sea | 56,443 | 61,740 | 60,984 | 59,494 | ||||||||||||
Argentina | 10,632 | 12,610 | 11,505 | 12,409 | ||||||||||||
International | 172,963 | 157,195 | 174,407 | 146,905 | ||||||||||||
Total | 279,951 | 252,478 | 278,726 | 253,856 | ||||||||||||
NATURAL GAS VOLUME — Mcf per day | ||||||||||||||||
Gulf Coast | 386,679 | 267,730 | 366,565 | 374,528 | ||||||||||||
Central | 301,892 | 314,899 | 299,519 | 305,348 | ||||||||||||
United States | 688,571 | 582,629 | 666,084 | 679,876 | ||||||||||||
Canada | 334,526 | 343,489 | 359,235 | 352,731 | ||||||||||||
North America | 1,023,097 | 926,118 | 1,025,319 | 1,032,607 | ||||||||||||
Egypt | 382,780 | 290,292 | 362,618 | 263,711 | ||||||||||||
Australia | 204,860 | 117,387 | 183,617 | 123,003 | ||||||||||||
North Sea | 2,502 | 2,737 | 2,703 | 2,637 | ||||||||||||
Argentina | 170,474 | 202,782 | 184,557 | 195,651 | ||||||||||||
International | 760,616 | 613,198 | 733,495 | 585,002 | ||||||||||||
Total | 1,783,713 | 1,539,316 | 1,758,814 | 1,617,609 | ||||||||||||
NGL VOLUME — Barrels per day | ||||||||||||||||
Gulf Coast | 5,030 | 2,370 | 4,332 | 4,365 | ||||||||||||
Central | 2,066 | 1,682 | 1,804 | 1,621 | ||||||||||||
United States | 7,096 | 4,052 | 6,136 | 5,986 | ||||||||||||
Canada | 2,029 | 2,165 | 2,089 | 2,076 | ||||||||||||
North America | 9,125 | 6,217 | 8,225 | 8,062 | ||||||||||||
Argentina | 3,439 | 2,914 | 3,241 | 2,887 | ||||||||||||
Total | 12,564 | 9,131 | 11,466 | 10,949 | ||||||||||||
BOE per day | ||||||||||||||||
Gulf Coast | 124,141 | 86,919 | 117,183 | 117,930 | ||||||||||||
Central | 90,706 | 92,643 | 89,101 | 91,167 | ||||||||||||
United States | 214,847 | 179,562 | 206,284 | 209,097 | ||||||||||||
Canada | 71,782 | 76,290 | 77,147 | 78,018 | ||||||||||||
North America | 286,629 | 255,852 | 283,431 | 287,115 | ||||||||||||
Egypt | 159,766 | 123,087 | 152,575 | 110,704 | ||||||||||||
Australia | 44,061 | 27,705 | 40,382 | 28,750 | ||||||||||||
North Sea | 56,860 | 62,196 | 61,435 | 59,934 | ||||||||||||
Argentina | 42,483 | 49,322 | 45,505 | 47,904 | ||||||||||||
International | 303,170 | 262,310 | 299,897 | 247,292 | ||||||||||||
Total | 589,799 | 518,162 | 583,328 | 534,407 | ||||||||||||
APACHE CORPORATION
FINANCIAL INFORMATION
FINANCIAL INFORMATION
For the Quarter | For the Year | |||||||||||||||
Ended December 31, | Ended December 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
PRICING DATA: | ||||||||||||||||
AVERAGE OIL PRICE PER BARREL | ||||||||||||||||
Gulf Coast | $ | 74.39 | $ | 53.96 | $ | 60.22 | $ | 103.35 | ||||||||
Central | 68.29 | 52.86 | 54.15 | 89.04 | ||||||||||||
United States(1) | 70.75 | 56.03 | 59.06 | 83.70 | ||||||||||||
Canada | 70.10 | 49.18 | 56.16 | 93.53 | ||||||||||||
North America(1) | 70.66 | 54.81 | 58.64 | 85.28 | ||||||||||||
Egypt | 74.46 | 43.74 | 61.34 | 91.37 | ||||||||||||
Australia | 80.97 | 30.89 | 64.42 | 91.78 | ||||||||||||
North Sea | 74.82 | 55.17 | 60.91 | 95.76 | ||||||||||||
Argentina | 56.41 | 51.47 | 49.42 | 49.46 | ||||||||||||
International | 73.84 | 48.19 | 60.58 | 89.63 | ||||||||||||
Total (1) | 72.63 | 50.69 | 59.85 | 87.80 | ||||||||||||
AVERAGE NATURAL GAS PRICE PER MCF | ||||||||||||||||
Gulf Coast | $ | 4.46 | $ | 6.95 | $ | 4.14 | $ | 9.77 | ||||||||
Central | 4.88 | 4.55 | 3.93 | 8.13 | ||||||||||||
United States(1) | 4.92 | 6.01 | 4.34 | 8.86 | ||||||||||||
Canada(1) | 4.60 | 5.84 | 4.17 | 7.94 | ||||||||||||
North America(1) | 4.81 | 5.95 | 4.28 | 8.55 | ||||||||||||
Egypt | 3.50 | 4.13 | 3.70 | 5.25 | ||||||||||||
Australia | 2.34 | 1.86 | 1.99 | 2.10 | ||||||||||||
North Sea | 18.07 | 10.02 | 13.15 | 18.78 | ||||||||||||
Argentina | 2.09 | 1.85 | 1.96 | 1.61 | ||||||||||||
International | 2.92 | 2.97 | 2.87 | 3.43 | ||||||||||||
Total(1) | 4.00 | 4.76 | 3.69 | 6.70 | ||||||||||||
AVERAGE NGL PRICE PER BARREL | ||||||||||||||||
Gulf Coast | $ | 44.61 | $ | 36.58 | $ | 33.92 | $ | 61.30 | ||||||||
Central | 39.45 | 20.70 | 30.87 | 51.39 | ||||||||||||
United States | 43.11 | 29.99 | 33.02 | 58.62 | ||||||||||||
Canada | 33.28 | 23.18 | 25.54 | 49.33 | ||||||||||||
North America | 40.92 | 27.62 | 31.12 | 56.23 | ||||||||||||
Argentina | 25.95 | 34.96 | 18.76 | 37.83 | ||||||||||||
Total | 36.82 | 29.96 | 27.63 | 51.38 |
(1) | Prices reflect the impact of financial derivative hedging activities. |
APACHE CORPORATION
FINANCIAL INFORMATION
(In thousands, except per share data)
FINANCIAL INFORMATION
(In thousands, 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 | For the Year | |||||||||||||||
Ended December 31, | Ended December 31, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Income (Loss) Attributable to Common Stock (GAAP) | $ | 582,772 | $ | (2,947,033 | ) | $ | (291,692 | ) | $ | 706,274 | ||||||
Adjustments: | ||||||||||||||||
Foreign currency fluctuation impact on deferred tax expense | 81,551 | (272,206 | ) | 197,724 | (397,454 | ) | ||||||||||
Additional depletion, net of tax | — | 3,647,745 | 1,981,398 | 3,647,745 | ||||||||||||
Out-of-period tax adjustments | — | (152,170 | ) | — | (173,795 | ) | ||||||||||
Adjusted Earnings (Non-GAAP) | $ | 664,323 | $ | 276,336 | $ | 1,887,430 | $ | 3,782,770 | ||||||||
Adjusted Earnings Per Share (Non-GAAP) | ||||||||||||||||
Basic | $ | 1.97 | $ | 0.82 | $ | 5.62 | $ | 11.31 | ||||||||
Diluted | $ | 1.96 | $ | 0.82 | $ | 5.59 | $ | 11.22 | ||||||||
Average Number of Common Shares | ||||||||||||||||
Basic | 336,489 | 334,967 | 335,852 | 334,351 | ||||||||||||
Diluted | 338,605 | 336,986 | 337,737 | 337,191 | ||||||||||||
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, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Net cash provided by operating activities | $ | 1,544,172 | $ | 1,036,776 | $ | 4,223,643 | $ | 7,065,344 | ||||||||
Changes in operating assets and liabilities | (97,593 | ) | 52,230 | 761,499 | 311,676 | |||||||||||
Cash from operations before changes in operating assets and liabilities | $ | 1,446,579 | $ | 1,089,006 | $ | 4,985,142 | $ | 7,377,020 | ||||||||
APACHE CORPORATION
OIL & GAS RESERVE INFORMATION
For the Year Ended December 31, 2009
OIL & GAS RESERVE INFORMATION
For the Year Ended December 31, 2009
OIL (Mbbl)
U.S. | Canada | Egypt | Australia | North Sea | Argentina | Total | ||||||||||||||||||||||
Balance — Dec 31, 2008 | 476,689 | 144,443 | 114,406 | 76,535 | 187,915 | 24,193 | 1,024,181 | |||||||||||||||||||||
Extensions and Discoveries | 20,555 | 432 | 41,104 | 3,574 | 6,056 | 3,728 | 75,449 | |||||||||||||||||||||
Purchases | 9,969 | — | — | — | — | — | 9,969 | |||||||||||||||||||||
Revisions | 12,976 | (4,246 | ) | (6,286 | ) | 1,901 | 2 | (202 | ) | 4,145 | ||||||||||||||||||
Production | (32,534 | ) | (5,543 | ) | (33,631 | ) | (3,569 | ) | (22,259 | ) | (4,199 | ) | (101,735 | ) | ||||||||||||||
Sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Balance — Dec 31, 2009 | 487,655 | 135,086 | 115,593 | 78,441 | 171,714 | 23,520 | 1,012,009 | |||||||||||||||||||||
NGL’s (Mbbl)
U.S. | Canada | Egypt | Australia | North Sea | Argentina | Total | ||||||||||||||||||||||
Balance — Dec 31, 2008 | 38,075 | 11,302 | — | — | — | 7,586 | 56,963 | |||||||||||||||||||||
Extensions and Discoveries | (2,913 | ) | 1,407 | — | — | — | 1,137 | (369 | ) | |||||||||||||||||||
Purchases | 3,054 | — | — | — | — | — | 3,054 | |||||||||||||||||||||
Revisions | 5 | (258 | ) | — | — | — | 29 | (224 | ) | |||||||||||||||||||
Production | (2,239 | ) | (763 | ) | — | — | — | (1,183 | ) | (4,185 | ) | |||||||||||||||||
Sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Balance — Dec 31, 2009 | 35,982 | 11,688 | — | — | — | 7,569 | 55,239 | |||||||||||||||||||||
Oil & NGL’s
U.S. | Canada | Egypt | Australia | North Sea | Argentina | Total | ||||||||||||||||||||||
Balance — Dec 31, 2008 | 514,764 | 155,745 | 114,406 | 76,535 | 187,915 | 31,779 | 1,081,144 | |||||||||||||||||||||
Extensions and Discoveries | 17,642 | 1,839 | 41,104 | 3,574 | 6,056 | 4,865 | 75,080 | |||||||||||||||||||||
Purchases | 13,023 | — | — | — | — | — | 13,023 | |||||||||||||||||||||
Revisions | 12,981 | (4,504 | ) | (6,286 | ) | 1,901 | 2 | (173 | ) | 3,921 | ||||||||||||||||||
Production | (34,773 | ) | (6,306 | ) | (33,631 | ) | (3,569 | ) | (22,259 | ) | (5,382 | ) | (105,920 | ) | ||||||||||||||
Sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Balance — Dec 31, 2009 | 523,637 | 146,774 | 115,593 | 78,441 | 171,714 | 31,089 | 1,067,248 | |||||||||||||||||||||
GAS (MMcf)
U.S. | Canada | Egypt | Australia | North Sea | Argentina | Total | ||||||||||||||||||||||
Balance — Dec 31, 2008 | 2,537,182 | 2,203,361 | 1,370,978 | 1,253,545 | 5,585 | 546,374 | 7,917,025 | |||||||||||||||||||||
Extensions and Discoveries | 150,668 | 340,278 | 2,142 | 174,883 | 252 | 50,714 | 718,937 | |||||||||||||||||||||
Purchases | 47,782 | 35 | — | — | — | — | 47,817 | |||||||||||||||||||||
Revisions | (54,591 | ) | (107,205 | ) | (81,623 | ) | 33 | — | (2,395 | ) | (245,781 | ) | ||||||||||||||||
Production | (243,120 | ) | (131,121 | ) | (132,356 | ) | (67,020 | ) | (986 | ) | (67,364 | ) | (641,967 | ) | ||||||||||||||
Sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Balance — Dec 31, 2009 | 2,437,921 | 2,305,348 | 1,159,141 | 1,361,441 | 4,851 | 527,329 | 7,796,031 | |||||||||||||||||||||
TOTAL BOE (Mboe)
U.S. | Canada | Egypt | Australia | North Sea | Argentina | Total | ||||||||||||||||||||||
Balance — Dec 31, 2008 | 937,628 | 522,972 | 342,902 | 285,459 | 188,846 | 122,841 | 2,400,648 | |||||||||||||||||||||
Extensions and Discoveries | 42,754 | 58,552 | 41,461 | 32,721 | 6,098 | 13,317 | 194,903 | |||||||||||||||||||||
Purchases | 20,987 | 6 | — | — | — | — | 20,993 | |||||||||||||||||||||
Revisions | 3,883 | (22,373 | ) | (19,890 | ) | 1,907 | 2 | (572 | ) | (37,043 | ) | |||||||||||||||||
Production | (75,294 | ) | (28,160 | ) | (55,690 | ) | (14,739 | ) | (22,423 | ) | (16,609 | ) | (212,915 | ) | ||||||||||||||
Sales | — | — | — | — | — | — | — | |||||||||||||||||||||
Balance — Dec 31, 2009 | 929,958 | 530,997 | 308,783 | 305,348 | 172,523 | 118,977 | 2,366,586 | |||||||||||||||||||||
Net Change | (7,670 | ) | 8,025 | (34,119 | ) | 19,889 | (16,323 | ) | (3,864 | ) | (34,062 | ) | ||||||||||||||||
2009 BOE Percentage | 39.3 | % | 22.4 | % | 13.1 | % | 12.9 | % | 7.3 | % | 5.0 | % | 100.0 | % | ||||||||||||||
2009 Production Percentage | 35.4 | % | 13.2 | % | 26.2 | % | 6.9 | % | 10.5 | % | 7.8 | % | 100.0 | % | ||||||||||||||
Production (BOE) | ||||||||||||||||||||||||||||
Oil + NGL’s | 46.2 | % | 22.4 | % | 60.4 | % | 24.2 | % | 99.3 | % | 32.4 | % | 49.7 | % | ||||||||||||||
Gas | 53.8 | % | 77.6 | % | 39.6 | % | 75.8 | % | 0.7 | % | 67.6 | % | 50.3 | % | ||||||||||||||
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||
APACHE CORPORATION
OIL & GAS RESERVES AND COSTS
For the Year Ended December 31, 2009
OIL & GAS RESERVES AND COSTS
For the Year Ended December 31, 2009
Reserve Additions (Mboe)
U.S. | Canada | Egypt | Australia | North Sea | Argentina | Chile | Total | |||||||||||||||||||||||||
Extensions and Discoveries | 42,754 | 58,552 | 41,461 | 32,721 | 6,098 | 13,317 | — | 194,903 | ||||||||||||||||||||||||
Revisions | 3,883 | (22,373 | ) | (19,890 | ) | 1,907 | 2 | (572 | ) | — | (37,043 | ) | ||||||||||||||||||||
Purchases | 20,987 | 6 | — | — | — | — | — | 20,993 | ||||||||||||||||||||||||
Total Adds | 67,624 | 36,185 | 21,571 | 34,628 | 6,100 | 12,745 | — | 178,853 | ||||||||||||||||||||||||
Capital Cost Information (in thousands)
U.S. | Canada | Egypt | Australia | North Sea | Argentina | Chile | Total | |||||||||||||||||||||||||
Exploration & Development, excluding Capitalized Interest & Asset Retirement Cost (1) | $ | 928,415 | 412,059 | 675,748 | 602,734 | 375,204 | 139,804 | 10,757 | $ | 3,144,721 | ||||||||||||||||||||||
Acquisitions | 195,966 | 13,182 | 39,000 | 37,835 | — | 24,489 | — | 310,472 | ||||||||||||||||||||||||
$ | 1,124,381 | 425,241 | 714,748 | 640,569 | 375,204 | 164,293 | 10,757 | $ | 3,455,193 | |||||||||||||||||||||||
(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 | $ | 1,124,805 | 504,336 | 683,136 | 656,283 | 375,485 | 143,411 | 10,757 | $ | 3,498,213 | ||||||||||||||||||||||
Less: Capitalized Interest | (14,666 | ) | (11,936 | ) | (7,388 | ) | (15,423 | ) | (281 | ) | (10,859 | ) | — | (60,553 | ) | |||||||||||||||||
Less: Asset Retirement Cost | (181,724 | ) | (80,341 | ) | — | (38,126 | ) | — | 7,252 | — | (292,939 | ) | ||||||||||||||||||||
Exploration, Development, excluding Capitalized Interest & Asset Retirement Cost | $ | 928,415 | 412,059 | 675,748 | 602,734 | 375,204 | 139,804 | 10,757 | $ | 3,144,721 | ||||||||||||||||||||||