Apache 8-K Apache Records 2006 Earnings of $2.55 Billion or $7.64 Per Share; Production, Reserves, Cash from Operations Reach New Highs

Exhibit 99.1

CONTACTS:

(Media):	Tony Lentini	(713/296-6227)
	Bill Mintz	(713/296-7276)
(Investor):	Robert Dye	(713/296-6662)
	David Higgins	(713/296-6690)
(Web site):	www.apachecorp.com

FOR RELEASE AT 7:45 A.M. CENTRAL TIME

APACHE RECORDS 2006 EARNINGS OF $2.55 BILLION OR $7.64 PER SHARE;
PRODUCTION, RESERVES, CASH FROM OPERATIONS REACH NEW HIGHS

     Houston, Feb. 1, 2007 – Apache Corporation (NYSE, Nasdaq: APA) today reported 2006 earnings of $2.55 billion or $7.64 per diluted common share, down slightly from the record 2005 earnings of $2.62 billion or $7.84 per share, as record production mitigated the impact of rising industry costs and lower natural gas prices.

     Proved reserves climbed to a record 2.3 billion barrels of oil equivalent (boe), up 9 percent for the 21st consecutive annual increase. Cash from operations before changes in operating assets and liabilities totaled a record $5 billion in 2006, up from $4.7 billion in 2005. (Cash from operations before changes in operating assets and liabilities is a non-GAAP measure; see reconciliation below.)

     “The strength of our diversified portfolio enabled Apache to deliver another solid year of profitable growth,” said G. Steven Farris, president and chief executive officer.

     In the fourth quarter, Apache earned $519 million or $1.56 per share, down from $787 million or $2.35 per share in the prior-year period, reflecting substantially lower natural gas prices. Fourth-quarter cash from operations totaled $1.2 billion, down from $1.4 billion in the

year-earlier period. The fourth quarter was the ninth consecutive period in which Apache’s earnings exceeded $500 million and cash from operations surpassed $1 billion.

     Apache received $4.77 per thousand cubic feet (Mcf) of gas in the fourth quarter, down from $7.86 per Mcf in the prior-year period, and $54.51 per barrel of oil, up from $53.63 per barrel in the fourth quarter of 2005.

     Apache’s production averaged 501,131 boe per day during 2006, up 10 percent; 2006 was the first year for the company’s production to exceed one-half million equivalent barrels per day and the 27th increase in the past 28 years. Apache’s liquid hydrocarbon production averaged 236,286 barrels per day and natural gas output averaged 1.59 billion cubic feet per day.

     In the fourth quarter, Apache’s production averaged 533,000 boe per day, up from 433,000 boe per day in the prior-year period, when production was curtailed as a result of hurricane damage.

     Apache replaced 213 percent of its 2006 production, adding 390 million boe of proved reserves through drilling and acquisitions; half of the new reserves were added through the drillbit.

     The company invested $6.4 billion in acquisitions and exploration and development activities in 2006, while divesting $635 million worth of non-core properties.

     “Apache’s 2006 drilling results and acquisitions in the Permian Basin, Gulf of Mexico and Argentina provide strong momentum for continued growth in 2007,” Farris said. “Our seven core areas, each with a large acreage position, provide a basis for continued growth of production and reserves.

     “We expect production growth of 6 to 10 percent in 2007, excluding the impact of the recently announced $1 billion acquisition of Anadarko’s assets in the Permian Basin and any other acquisition and divestiture activity,” he said.

     “We have a deep inventory of identified drilling opportunities lined up for 2007, including a number of higher-risk, higher-reward exploration wells planned in Egypt, the North Sea, Australia and Canada,” Farris said.

     “While service costs have moderated somewhat from the unsustainable levels of 2006, a rebound in costs would require Apache to revisit its 2007 capital plans – especially in North America, which experienced the greatest cost increases,” he said.

     Apache Corporation discovers and produces oil and gas in the United States, Canada, the United Kingdom sector of the North Sea, Egypt, Australia and Argentina.

-end-

     NOTE: Apache will webcast its conference call live from its Web site, http://www.apachecorp.com at 1 p.m. Central Time on Thursday, Feb. 1. The webcast replay and podcast will be archived on Apache’s Web site and will be available for delayed playback by telephone for one week beginning at 5 p.m. on Feb. 1. To access the telephone playback, dial (719) 457-0820 and provide Apache’s confirmation code, 4792336.

     This news release contains certain “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995 including, without limitation, expectations, beliefs, plans and objectives regarding production, operating costs, exploration and acquisition activities. Any matters that are not historical facts are forward-looking and, accordingly, involve estimates, assumptions and uncertainties. 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.

APACHE CORPORATION
FINANCIAL INFORMATION
(In thousands, except per share data)

	For the Quarter						For the Year
	Ended December 31,						Ended December 31,
	2006			2005			2006			2005
REVENUES AND OTHER:
Oil and gas production revenues	$	1,966,013		$	2,004,363		$	8,074,253		$	7,457,291
Gain on China divestiture		—			—			173,545			—
Other		665			97,310			40,981			126,953
		1,966,678			2,101,673			8,288,779			7,584,244
OPERATING EXPENSES:
Depreciation, depletion and amortization		514,802			360,099			1,816,359			1,415,682
Asset retirement obligation accretion		24,663			13,704			88,931			53,720
Lease operating costs		396,574			271,879			1,362,374			1,040,475
Gathering and transportation costs		27,594			26,731			104,322			100,260
Severance and other taxes		121,458			144,085			553,978			453,258
General and administrative		59,690			45,812			211,334			198,272
Total operating expenses		1,144,781			862,310			4,137,298			3,261,667
OPERATING INCOME		821,897			1,239,363			4,151,481			4,322,577
FINANCING COSTS:
Interest expense		63,381			41,829			217,454			175,419
Amortization of deferred loan costs		518			522			2,048			3,748
Capitalized interest		(15,118	)		(14,335	)		(61,301	)		(56,988	)
Interest income		(3,203	)		(1,853	)		(16,315	)		(5,856	)
Net financing costs		45,578			26,163			141,886			116,323
INCOME BEFORE INCOME TAXES		776,319			1,213,200			4,009,595			4,206,254
Provision for income taxes		255,478			424,978			1,457,144			1,582,524
NET INCOME		520,841			788,222			2,552,451			2,623,730
Preferred stock dividends		1,420			1,420			5,680			5,680
INCOME ATTRIBUTABLE TO COMMON STOCK	$	519,421		$	786,802		$	2,546,771		$	2,618,050
BASIC NET INCOME PER COMMON SHARE	$	1.57		$	2.39		$	7.72		$	7.96
DILUTED NET INCOME PER COMMON SHARE	$	1.56		$	2.35		$	7.64		$	7.84
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING		330,417			329,859			330,083			328,929

APACHE CORPORATION
FINANCIAL INFORMATION
(In thousands)

	For the Quarter				For the Year
	Ended December 31,				Ended December 31,
	2006		2005		2006		2005
COSTS INCURRED: (1)
North America exploration and development	$	783,784	$	1,100,795	$	2,866,942	$	2,852,713
International exploration and development		319,902		219,841		1,104,456		1,104,612
	$	1,103,686	$	1,320,636	$	3,971,398	$	3,957,325
Oil and gas property acquisitions	$	58,690	$	3,402	$	2,473,081	$	53,392
(1)Includes asset retirement costs and capitalized interest as follows:
Capitalized interest	$	15,118	$	14,335	$	61,301	$	56,988
Asset retirement costs	$	14,904	$	469,963	$	390,612	$	546,669

	December 31,		December 31,
	2006		2005
BALANCE SHEET DATA:
Current Assets	$	2,458,753	$	2,162,077
Property and Equipment, net		21,346,252		16,791,340
Goodwill		189,252		189,252
Other Assets		219,047		129,127
Total Assets	$	24,213,304	$	19,271,796
Current Liabilities	$	3,826,493	$	2,186,564
Long-Term Debt		2,019,831		2,191,954
Deferred Credits and Other Noncurrent Liabilities		5,175,927		4,352,063
Shareholders’ Equity		13,191,053		10,541,215
Total Liabilities and Shareholders’ Equity	$	24,213,304	$	19,271,796
Common shares outstanding at end of period		330,737		330,121

NON-GAAP FINANCIAL MEASURES:

The press release discusses Apache’s cash from operations before changes in operating assets and liabilities. 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,
	2006		2005		2006		2005
Net cash provided by operating activities	$	1,032,947	$	1,172,174	$	4,431,959	$	4,332,270
Changes in operating assets and liabilities		176,539		179,882		563,975		412,063
Cash from operations before changes in
operating assets and liabilities	$	1,209,486	$	1,352,056	$	4,995,934	$	4,744,333

APACHE CORPORATION
FINANCIAL INFORMATION

	For the Quarter				For the Year
	Ended December 31,				Ended December 31,
	2006		2005		2006		2005
FINANCIAL DATA(In thousands, except per share data):
Revenues and other	$	1,966,678	$	2,101,673	$	8,288,779	$	7,584,244
Income Attributable to Common Stock	$	519,421	$	786,802	$	2,546,771	$	2,618,050
Basic Net Income Per Common Share	$	1.57	$	2.39	$	7.72	$	7.96
Diluted Net Income Per Common Share	$	1.56	$	2.35	$	7.64	$	7.84
Weighted Average Common Shares Outstanding		330,417		329,859		330,083		328,929
Diluted Shares Outstanding		332,881		334,307		333,211		333,749
PRODUCTION AND PRICING DATA:
OIL VOLUME — Barrels per day
United States		74,413		49,677		66,832		66,268
Canada		19,504		23,310		20,715		22,499
Egypt		58,988		58,202		56,570		55,141
Australia		11,140		15,544		11,892		15,379
North Sea		59,060		67,036		58,544		65,488
Argentina		10,491		1,424		6,857		1,163
China		—		4,892		3,167		8,132
Total		233,596		220,085		224,577		234,070
AVERAGE OIL PRICE PER BARREL
United States	$	51.27	$	49.03	$	54.22	$	47.97
Canada		52.21		55.70		59.90		53.05
Egypt		57.81		54.80		63.60		53.69
Australia		57.19		56.31		68.25		57.61
North Sea		58.25		54.91		63.04		53.00
Argentina		39.24		38.82		42.79		37.54
China		—		54.82		62.73		44.24
Total		54.51		53.63		59.92		51.66
NATURAL GAS VOLUME — Mcf per day
United States		707,281		513,695		666,965		597,481
Canada		391,170		386,827		404,325		371,917
Egypt		230,968		197,972		217,601		165,710
Australia		200,883		130,823		186,119		123,295
North Sea		2,079		2,360		2,061		2,306
Argentina		188,310		3,030		111,994		3,114
Total		1,720,691		1,234,707		1,589,065		1,263,823
AVERAGE NATURAL GAS PRICE PER MCF
United States	$	6.32	$	9.07	$	6.54	$	7.22
Canada		5.68		10.12		6.09		7.29
Egypt		4.19		4.41		4.42		4.59
Australia		1.66		1.68		1.65		1.72
North Sea		10.19		13.60		10.64		9.17
Argentina		1.05		1.11		0.97		1.14
Total		4.77		7.86		5.17		6.35
NGL VOLUME — Barrels per day
United States		7,681		4,655		7,985		7,553
Canada		2,239		2,378		2,187		2,235
Argentina		2,676		—		1,537		—
Total		12,596		7,033		11,709		9,788
AVERAGE NGL PRICE PER BARREL
United States	$	34.83	$	39.75	$	38.54	$	32.44
Canada		31.31		40.56		35.40		31.07
Argentina		31.96		—		36.64		—
Total		33.59		40.02		37.70		32.13

APACHE CORPORATION
OIL & GAS RESERVE INFORMATION
For the Year Ended December 31, 2006

OIL
	U.S.		Canada			Egypt			Australia			North Sea			Argentina			China			Total
Balance — Dec 31, 2005	461,568			170,197			90,893			51,322			195,262			1,661			5,007			975,910
Extensions	12,354			18,430			18,535			23,517			21,777			3,422			3,386			101,421
Purchases	53,853			643			—			—			—			28,351			—			82,847
Revisions	(2,009	)		63			31			24			—			147			(19	)		(1,763	)
Production	(27,308	)		(8,359	)		(20,648	)		(4,341	)		(21,369	)		(3,064	)		(1,156	)		(86,245	)
Sales	(3,187	)		—			—			—			—			(724	)		(7,218	)		(11,129	)
Balance — Dec 31, 2006	495,271			180,974			88,811			70,522			195,670			29,793			—			1,061,041
GAS
	U.S.		Canada			Egypt			Australia			North Sea			Argentina			China			Total
Balance — Dec 31, 2005	2,566,187			2,366,592			1,080,357			824,817			7,475			2,594			—			6,848,022
Extensions	253,707			248,549			151,086			46,860			118			36,986			—			737,306
Purchases	195,552			1,500			—			—			—			484,707			—			681,759
Revisions	(74,225	)		(102,922	)		3,965			4			—			1,858			—			(171,320	)
Production	(243,441	)		(147,579	)		(79,424	)		(67,934	)		(753	)		(40,878	)		—			(580,009	)
Sales	(2,418	)		(421	)		—			—			—			—			—			(2,839	)
Balance — Dec 31, 2006	2,695,362			2,365,719			1,155,984			803,747			6,840			485,267			—			7,512,919
TOTAL BOE
	U.S.		Canada			Egypt			Australia			North Sea			Argentina			China			Total
Balance — Dec 31, 2005	889,266			564,629			270,953			188,792			196,508			2,093			5,007			2,117,248
Extensions	54,639			59,855			43,716			31,327			21,797			9,586			3,385			224,305
Purchases	86,445			893			—			—			—			109,135			—			196,473
Revisions	(14,381	)		(17,091	)		692			25			—			457			(19	)		(30,317	)
Production	(67,882	)		(32,956	)		(33,885	)		(15,663	)		(21,495	)		(9,877	)		(1,155	)		(182,913	)
Sales	(3,590	)		(70	)		—			—			—			(724	)		(7,218	)		(11,602	)
Balance — Dec 31, 2006	944,497			575,260			281,476			204,481			196,810			110,670			—			2,313,194
Net Change (Growth)	55,231			10,631			10,523			15,689			302			108,577			(5,007	)		195,946
2006 BOE Percentages	40.8	%		24.9	%		12.2	%		8.8	%		8.5	%		4.8	%		0.0	%		100.0	%
Production (BOE)
Oil	40.2	%		25.4	%		60.9	%		27.7	%		99.4	%		31.0	%					47.2	%
Gas	59.8	%		74.6	%		39.1	%		72.3	%		0.6	%		69.0	%					52.8	%
																						100.0	%

APACHE CORPORATION
OIL & GAS RESERVE INFORMATION
For the Year Ended December 31, 2006

Reserve Additions (BOE’s)
	U.S.		Canada			Egypt		Australia		North Sea		Argentina		China			Total
Extensions	54,639			59,855			43,716		31,327		21,797		9,586		3,385			224,305
Revisions	(14,381	)		(17,091	)		692		25		—		457		(19	)		(30,317	)
Purchases	86,445			893			—		—		—		109,135		—			196,473
Total Adds	126,703			43,657			44,408		31,352		21,797		119,178		3,366			390,461
Costs Incurred
	U.S.		Canada			Egypt		Australia		North Sea		Argentina		China			Total
Exploration & Development	1,763,234			1,103,708			461,281		185,819		329,498		115,570		12,288			3,971,398
Acquisitions	1,318,008			5,859			—		23,981		3,060		1,122,173		—			2,473,081
Total	3,081,242			1,109,567			461,281		209,800		332,558		1,237,743		12,288			6,444,479
Included in the costs incurred are the following:
Capitalized Interest	29,300			21,793			6,389		3,819		—		—		—			61,301
Asset Retirement Cost	348,057			25,301			—		2,108		—		15,146		—			390,612