Apache 8-K Apache’s Second-quarter Net Income Surges to $1.4 Billion or $4.28 Per Share

Exhibit 99.1

CONTACTS:
(Media):	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’S SECOND-QUARTER NET INCOME SURGES
TO $1.4 BILLION OR $4.28 PER SHARE

     Houston, July 31, 2008 – Apache Corporation (NYSE, Nasdaq: APA) today reported that high crude oil and natural gas prices fueled record quarterly net income of $1.4 billion or $4.28 per diluted common share, a 128-percent increase from $632 million or $1.89 per share in the prior-year period.

     Second-quarter cash from operations before changes in operating assets and liabilities* totaled $2.3 billion, compared with $1.5 billion in the prior-year period, and surpassed the record of $1.9 billion set in the fourth quarter of 2007.

     Second-quarter production declined 3.6 percent from the prior-year period and 1 percent from the first quarter to 551,600 barrels of oil equivalent (boe) per day. The decline is primarily the result of an explosion that disrupted operations at the gas processing and transportation hub at Varanus Island in Australia as well as a strike at a refinery in Scotland that shut in production from all of the fields on the Forties Pipeline System, including Apache’s Forties Field.

     “The second quarter was highlighted by record financial results, continued exploration success, and sustained progress in delivering our pipeline of development projects,” said G. Steven Farris, Apache’s president and chief executive officer. “Despite the challenges we faced during the quarter, we remain positive about the long-term outlook. Driven by successful drilling programs and seven development projects that are expected to add 135,000 boe per day to worldwide net production over the next four years, we are confident Apache is entering a period of accelerating production growth in 2009-2012.”

Apache’s second-quarter net income surges to $1.4 billion or $4.28 per share
Page 2

     Drilling highlights included:

• The Geauxpher discovery in the deepwater Gulf of Mexico has estimated proved and probable reserves of 100 billion cubic feet. Apache has a 40 percent working interest in the field;

• The Heqet-2 well in Egypt tested 2,100 barrels per day from a depth of more than 14,000 feet;

• The Umbarka-174 well in Egypt tested 4,300 barrels per day;

• In Canada, two Ootla shale wells drilled by Apache’s partner EnCana added further support to the current estimated potential of 9-16 trillion cubic feet net to Apache, and

• Five wells drilled in the Forties Field in the North Sea during the first half of 2008 averaged an aggregate of 8,900 barrels per day in the second quarter. Apache has a 97 percent working interest in the Forties Field.

     In Egypt, Apache expects to commence production through the Salam gas plant expansion in October. The gas plant project – one element of Apache’s development pipeline – is forecasted to contribute additional net production of 100 million cubic feet (MMcf) of gas and 5,000 barrels of condensate per day by the end of the year.

     “At Varanus Island, we will resume partial gas sales over the next few days,” Farris said. “The initial rate is expected to be 110 MMcf per day; later in August, we expect production to increase to 220 MMcf per day.

     “We want to assure the citizens of Western Australia that Apache understands the hardship that they have experienced and that fully restoring production is our highest priority,” Farris said.

     “We are confident that Apache will overcome the temporary setbacks in Australia and the North Sea and will register its 29th annual production increase in the last 30 years,” Farris said.

     During the second quarter, Apache received an average of $110.32 per barrel of oil – up 72 percent from the prior-year period – and $8.09 per thousand cubic feet (Mcf) of gas, up 47 percent.

Apache’s second-quarter net income surges to $1.4 billion or $4.28 per share
Page 3

     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.

-end-

     *Adjusted earnings and cash from operations before changes in operating assets and liabilities are non-GAAP measures. Please see reconciliations below.

     NOTE: Apache will conduct a conference call to discuss its first-quarter results at 1 p.m. Central time on July 31, 2008. The call will be webcast from Apache’s Web site, http://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 July 31. To access the telephone playback, dial (719) 457-0820 and provide Apache’s confirmation code, 5011412.

     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 2007Form 10-K and on our Web site. 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)

	For the Quarter					For the Six Months
	Ended June 30,					Ended June 30,
	2008			2007		2008		2007
REVENUES AND OTHER:
Oil and gas production revenues	$	3,904,118		$	2,444,031	$	7,082,067	$	4,467,098
Other		(3,927	)		28,513		5,865		8,321
		3,900,191			2,472,544		7,087,932		4,475,419
COSTS AND EXPENSES:
Depreciation, depletion and amortization		627,668			591,107		1,248,157		1,122,020
Asset retirement obligation accretion		25,679			24,134		52,176		48,198
Lease operating expenses		446,738			406,667		901,376		788,774
Gathering and transportation		39,767			34,435		80,743		65,698
Taxes other than income		298,548			143,791		541,126		253,761
General and administrative		78,872			70,798		161,295		138,660
Financing costs, net		39,050			63,358		83,303		105,421
		1,556,322			1,334,290		3,068,176		2,522,532
INCOME BEFORE INCOME TAXES		2,343,869			1,138,254		4,019,756		1,952,887
Current income tax provision		702,106			297,058		1,189,906		483,580
Deferred income tax provision		196,534			207,658		363,108		342,820
NET INCOME		1,445,229			633,538		2,466,742		1,126,487
Preferred stock dividends		1,420			1,420		2,840		2,840
INCOME ATTRIBUTABLE TO COMMON STOCK	$	1,443,809		$	632,118	$	2,463,902	$	1,123,647
NET INCOME PER COMMON SHARE:
Basic	$	4.32		$	1.91	$	7.38	$	3.39
Diluted	$	4.28		$	1.89	$	7.32	$	3.37
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING		334,208			331,812		333,801		331,514

APACHE CORPORATION
FINANCIAL INFORMATION
(In thousands)

	For the Quarter				For the Six Months
	Ended June 30,				Ended June 30,
	2008		2007		2008		2007
COSTS INCURRED: (1)
North America exploration and development	$	801,279	$	641,261	$	1,544,635	$	1,382,036
International exploration and development		682,766		507,874		1,291,229		934,243
	$	1,484,045	$	1,149,135	$	2,835,864	$	2,316,279
Oil and gas property acquisitions	$	142,848	$	6,098	$	150,795	$	1,032,994

(1) Includes noncash asset retirement costs and capitalized interest as follows:

Capitalized interest	$	17,878	$	15,898	$	35,056	$	37,674
Asset retirement costs	$	86,434	$	52,007	$	171,506	$	126,828

	June 30,		December 31,
	2008		2007
BALANCE SHEET DATA:
Cash and Cash Equivalents	$	1,008,442	$	125,823
Other Current Assets		3,147,904		2,626,428
Property and Equipment, net		26,934,253		25,231,593
Restricted Cash		94,357		—
Goodwill		189,252		189,252
Other Assets		502,951		461,555
Total Assets	$	31,877,159	$	28,634,651
Current Liabilities	$	4,124,303	$	2,665,016
Long-Term Debt		3,912,136		4,011,605
Deferred Credits and Other Noncurrent Liabilities		7,326,251		6,580,051
Shareholders’ Equity		16,514,469		15,377,979
Total Liabilities and Shareholders’ Equity	$	31,877,159	$	28,634,651
Common shares outstanding at end of period		334,451		332,927

APACHE CORPORATION
FINANCIAL INFORMATION

	For the Quarter				For the Six Months
	Ended June 30,				Ended June 30,
	2008		2007		2008		2007
FINANCIAL DATA(In thousands, except per share data):
Revenues and other	$	3,900,191	$	2,472,544	$	7,087,932	$	4,475,419
Income Attributable to Common Stock	$	1,443,809	$	632,118	$	2,463,902	$	1,123,647
Basic Net Income Per Common Share	$	4.32	$	1.91	$	7.38	$	3.39
Diluted Net Income Per Common Share	$	4.28	$	1.89	$	7.32	$	3.37
Weighted Average Common Shares Outstanding		334,208		331,812		333,801		331,514
Diluted Shares Outstanding		337,676		333,906		336,802		333,595
PRODUCTION AND PRICING DATA:
OIL VOLUME — Barrels per day
United States		100,049		91,060		100,364		82,901
Canada		17,746		19,036		17,547		19,034
Egypt		64,886		59,890		63,718		60,129
Australia		8,367		16,071		8,894		14,117
North Sea		56,570		55,209		57,670		54,445
Argentina		12,067		11,282		12,146		11,041
Total		259,685		252,548		260,339		241,667
AVERAGE OIL PRICE PER BARREL
United States	$	97.64	$	60.08	$	90.59	$	58.21
Canada		119.16		63.75		106.33		58.71
Egypt		126.20		68.65		112.28		62.65
Australia		133.79		74.96		116.78		71.54
North Sea		121.10		66.59		108.23		61.57
Argentina		50.12		45.78		47.61		43.26
Total		110.32		64.12		99.76		60.21
NATURAL GAS VOLUME — Mcf per day
United States		758,524		801,778		751,269		770,974
Canada		357,828		389,218		359,289		386,136
Egypt		233,793		234,466		238,385		238,951
Australia		129,531		196,249		160,355		195,608
North Sea		2,507		1,944		2,556		1,917
Argentina		197,284		216,187		181,209		207,263
Total		1,679,467		1,839,842		1,693,063		1,800,849
AVERAGE NATURAL GAS PRICE PER MCF
United States	$	10.62	$	7.29	$	9.50	$	7.13
Canada		9.63		6.79		8.59		6.62
Egypt		6.26		4.48		5.72		4.26
Australia		2.17		1.79		2.14		1.78
North Sea		21.90		13.39		19.05		10.90
Argentina		1.39		1.02		1.60		1.08
Total		8.09		5.51		7.25		5.37
NGL VOLUME — Barrels per day
United States		7,231		8,060		7,236		7,631
Canada		1,868		2,113		2,052		2,172
Argentina		2,905		2,816		2,812		2,726
Total		12,004		12,989		12,100		12,529
AVERAGE NGL PRICE PER BARREL
United States	$	65.27	$	42.10	$	61.32	$	38.78
Canada		59.26		39.28		56.05		35.29
Argentina		32.31		36.06		39.98		33.68
Total		56.36		40.33		55.46		37.06

APACHE CORPORATION
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 excludes certain items that management believes affect the comparability of operating results. The following provides the reasons adjusted earnings is a meaningful measure:

• 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 Six Months
	Ended June 30,					Ended June 30,
	2008		2007			2008			2007
Income Attributable to Common Stock (GAAP)	$	1,443,809	$	632,118		$	2,463,902		$	1,123,647
Adjustments:
Foreign currency fluctuation impact on deferred tax expense		281		68,256			(12,079	)		70,652
Impact of Canadian Federal tax rate reductions		—		(17,685	)		—			(17,074	)
Adjusted Earnings (Non-GAAP)	$	1,444,090	$	682,689		$	2,451,823		$	1,177,225
Adjusted Earnings Per Share (Non-GAAP)
Basic	$	4.32	$	2.06		$	7.35		$	3.55
Diluted	$	4.28	$	2.04		$	7.28		$	3.53
Average Number of Common Shares
Basic		334,208		331,812			333,801			331,514
Diluted		337,676		333,906			336,802			333,595

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 Six Months
	Ended June 30,				Ended June 30,
	2008		2007		2008		2007
Net cash provided by operating activities	$	1,929,509	$	1,386,446	$	3,737,913	$	2,450,005
Changes in operating assets and liabilities		390,240		80,575		426,520		209,476
Cash from operations before changes in operating assets and liabilities	$	2,319,749	$	1,467,021	$	4,164,433	$	2,659,481