Apache 8-K Apache Reports 2008 Financial and Operating Results

Exhibit 99.1

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

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

APACHE REPORTS 2008 FINANCIAL AND OPERATING RESULTS

     Houston, Feb. 19, 2009 — Apache Corporation (NYSE, Nasdaq: APA) today reported net income of $706 million or $2.09 per diluted common share for the year ended Dec. 31, 2008. Apache’s results include a $3.6-billion non-cash, after-tax reduction in the carrying value of its oil and gas properties stemming from significantly lower commodity prices at year-end 2008.

     Apache’s 2008 adjusted earnings,* which exclude the write-down and certain other items that impact the comparability of operating results, totaled $3.8 billion, or $11.22 per share. In 2007, Apache reported net income of $2.8 billion or $8.39 per share and adjusted earnings of $2.9 billion or $8.66 per share.

     In the fourth quarter, Apache reported a net loss of $2.9 billion, or $8.80 per common share, also reflecting the $3.6-billion non-cash, after-tax charge. Apache’s fourth-quarter adjusted earnings totaled $276 million, or 82 cents per share. In the prior-year period, Apache reported net income of $1.07 billion, or $3.19 per share and adjusted earnings of $1 billion or $2.92 per share.

     Cash from operations before changes in operating assets and liabilities* totaled $7.4 billion, up from $6.2 billion in 2007. Fourth-quarter cash from operations totaled $1.1 billion, down from $1.9 billion from the year-earlier period.

     “Certainly, the magnitude of the write-down is large; however, considering oil prices have collapsed from a peak of more than $140 per barrel for West Texas Intermediate at mid-year to less than $45 per barrel at year-end, it was not unexpected,” said G. Steven Farris, chairman and chief executive officer. “This is a non-cash event that we expect will have no impact on our operations or financial flexibility.”

     “The important news going forward is that Apache exited 2008 with a debt-to-capitalization ratio of 23 percent, more than $1.5 billion in available cash and short-term investments, and $2.3 billion in available credit facilities,” Farris said. “With a number of development projects coming on line in the first half of 2009, we are projecting production growth of 6 to 14 percent in 2009, depending on capital availability. We are striving to keep our discretionary spending in line with 2009 cash flow to retain our financial flexibility.”

     In 2008, production declined 5 percent to 534,000 barrels of oil equivalent per day as a result of the June 3 pipeline explosion and fire at Apache’s Varanus Island hub offshore Western Australia as well as the impact of two hurricanes in the Gulf of Mexico. Had those events not occurred, 2008 production would have increased 2 percent.

     Apache produced 1.6 billion cubic feet (Bcf) of natural gas and 265,000 barrels of liquid hydrocarbons per day in 2008, compared with 1.8 Bcf and 262,000 barrels per day in 2007. In the fourth quarter, Apache produced 1.5 Bcf of gas per day and 262,000 barrels of liquid hydrocarbons per day.

     Varanus Island production is expected to be near pre-incident levels in the first quarter, but significant production volumes remain off-line in the Gulf because repairs of third-party pipelines have not been completed.

     Apache replaced 122 percent of production in 2008, including 118 percent through drilling. However, 2008 proved reserves declined 2 percent to 2.4 billion barrels of oil equivalent as a result of a 2.6-percent negative reserve revision associated with low commodity prices at year-end. Absent the revisions, Apache would have recorded its 23rd consecutive year of reserve growth.

     Nearly all of the reserve revisions were in fields located in North America, including U.S. oil fields with long-lived reserves, fields subject to the Alberta government’s new royalty scheme, and high-cost shallow gas fields in Canada. The negative revisions in North America were partially offset by increased reserves from drilling in Egypt.

     Apache’s current 2009 exploration and development budget of $3.5 billion to $4 billion is based on cash-flow estimates that are predicated on benchmark prices of $4.50 per thousand cubic feet of gas and $40 per barrel of oil.

     “If the current downward trend in commodity prices continues, we may scale back spending even more, and our production growth likely will land in the bottom half of our projected range,” Farris said.

     Strong production growth from several development projects is expected to more than offset generally declining production in North America that will be the result of lower capital spending.

• In Egypt, two additional gas processing trains began producing at the end of 2008 after several years of investment. The processing trains are expected to ramp up to net production of 100 million cubic feet (MMcf) and 5,000 barrels of condensate.

• In Australia, the 20,000-barrels-per-day (net) Van Gogh development remains on schedule with first production expected in the second quarter. The Pyrenees development remains on track for a first-quarter 2010 start-up with an additional 20,000 barrels per day (net).

• In the Gulf of Mexico, the Geauxpher field, a large gas discovery at Garden Banks 462, is projected to commence production in May at a net rate of 50 MMcf per day.

• In Canada, Apache completed seven horizontal wells at the Ootla shale gas play in the Horn River Basin during 2008. The last completed well utilized a 10-stage fracture stimulation and had gross estimated reserves of 7.4 Bcf. Apache plans to continue to develop the optimum strategy for Ootla well completions in 2009.

     “Apache entered this downturn with a low debt-to-capitalization ratio and nearly $4 billion in financial resources, providing us with significant staying power in an uncertain environment,” Farris said. “Right now, the most important thing is to protect our balance sheet by not outspending our operating cash flow.

     “We’ve been through ‘down’ cycles before. Although these periods are painful, they ultimately present excellent acquisition opportunities,” Farris said. “We are well-positioned entering 2009, with

projected production growth and ample liquidity to pursue transactions. I expect Apache will emerge an even stronger company when the cycle turns.”

Full-cost ceiling test

     Apache uses the full-cost method of accounting. The company is required to perform a calculation that establishes a ceiling on the carrying costs of its oil and gas properties in each country at the end of each quarter. The ceiling is the calculated present value of estimated future net cash flows from proved oil and gas reserves, using a 10-percent discount rate, plus the lower of the cost or fair value of unproved properties, net of related tax effects. The rules generally require pricing future production at oil and gas prices in effect at the end of the quarter. If the ceiling is exceeded, a non-cash write-down is required. The calculation does not allow for consideration of possible or probable reserves or expected future trends in commodity prices or drilling and service costs.

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

-end-

     NOTE: Apache will conduct a conference call to discuss its fourth-quarter and full-year 2008 results at 1 p.m. Central Time on Thursday, Feb. 19. 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. 19. To access the telephone playback, dial (719) 457-0820 and provide Apache’s confirmation code, 1248797.

     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)

	For the Quarter					For the Year
	Ended December 31,					Ended December 31,
	2008			2007		2008			2007
REVENUES AND OTHER:
Oil and gas production revenues	$	1,876,890		$	2,996,290	$	12,327,839		$	9,961,982
Other		60,044			23,085		61,911			37,770
		1,936,934			3,019,375		12,389,750			9,999,752
COSTS AND EXPENSES:
Depreciation, depletion and amortization
Recurring		667,393			624,975		2,516,437			2,347,791
Additional		5,333,821			—		5,333,821			—
Asset retirement obligation accretion		24,202			23,804		101,348			96,438
Lease operating expenses		520,083			454,553		1,909,625			1,652,855
Gathering and transportation		33,373			36,822		156,491			137,407
Taxes other than income		139,401			204,425		984,807			597,647
General and administrative		69,938			75,000		288,794			275,065
Financing costs, net		49,441			54,149		166,035			219,937
		6,837,652			1,473,728		11,457,358			5,327,140
INCOME BEFORE INCOME TAXES		(4,900,718	)		1,545,647		932,392			4,672,612
Current income tax provision		(39,259	)		286,270		1,456,382			970,728
Deferred income tax provision		(1,915,846	)		186,854		(1,235,944	)		889,526
NET INCOME		(2,945,613	)		1,072,523		711,954			2,812,358
Preferred stock dividends		1,420			1,420		5,680			5,680
INCOME ATTRIBUTABLE TO COMMON STOCK	$	(2,947,033	)	$	1,071,103	$	706,274		$	2,806,678
NET INCOME PER COMMON SHARE:
Basic	$	(8.80	)	$	3.22	$	2.11		$	8.45
Diluted	$	(8.80	)	$	3.19	$	2.09		$	8.39
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING		334,967			333,049		334,351			332,192

APACHE CORPORATION
FINANCIAL INFORMATION
(In thousands)

	For the Quarter				For the Year
	Ended December 31,				Ended December 31,
	2008		2007		2008		2007
COSTS INCURRED: (1)
North America exploration and development	$	912,016	$	653,768	$	3,417,275	$	2,683,070
International exploration and development		663,119		601,543		2,595,376		2,027,167
	$	1,575,135	$	1,255,311	$	6,012,651	$	4,710,237
Oil and gas property acquisitions	$	—	$	—	$	149,517	$	1,050,018
(1)Includes noncash asset retirement costs and capitalized interest as follows:
Capitalized interest	$	19,823	$	15,400	$	73,553	$	69,457
Asset retirement costs	$	163,519	$	284,171	$	513,891	$	439,368

	December 31,		December 31,
	2008		2007
BALANCE SHEET DATA:
Cash and Cash Equivalents	$	1,181,450	$	125,823
Other Current Assets (2)		3,269,524		2,626,428
Property and Equipment, net		23,958,517		25,231,593
Restricted Cash		13,880		—
Goodwill		189,252		189,252
Other Assets		573,862		461,555
Total Assets	$	29,186,485	$	28,634,651
Current Liabilities	$	2,615,228	$	2,665,016
Long-Term Debt		4,808,975		4,011,605
Deferred Credits and Other Noncurrent Liabilities		5,253,561		6,580,051
Shareholders’ Equity		16,508,721		15,377,979
Total Liabilities and Shareholders’ Equity	$	29,186,485	$	28,634,651
Common shares outstanding at end of period		334,710		332,927

(2) Includes $792 million of six-month Treasury Bills maturing April 2, 2009.

APACHE CORPORATION
FINANCIAL INFORMATION

	For the Quarter					For the Year
	Ended December 31,					Ended December 31,
	2008			2007		2008		2007
FINANCIAL DATA(In thousands, except per share data):
Revenues and other	$	1,936,934		$	3,019,375	$	12,389,750	$	9,999,752
Income Attributable to Common Stock	$	(2,947,033	)	$	1,071,103	$	706,274	$	2,806,678
Basic Net Income Per Common Share	$	(8.80	)	$	3.22	$	2.11	$	8.45
Diluted Net Income Per Common Share	$	(8.80	)	$	3.19	$	2.09	$	8.39
Weighted Average Common Shares Outstanding		334,967			333,049		334,351		332,192
Diluted Shares Outstanding		334,967			335,780		337,191		334,596
PRODUCTION AND PRICING DATA:
OIL VOLUME — Barrels per day
United States		78,406			99,953		89,797		90,759
Canada		16,877			18,511		17,154		18,756
Egypt		74,705			62,266		66,753		60,735
Australia		8,140			12,207		8,249		13,778
North Sea		61,740			56,777		59,494		53,632
Argentina		12,610			11,957		12,409		11,440
Total		252,478			261,671		253,856		249,100
AVERAGE OIL PRICE PER BARREL
United States	$	56.03		$	78.78	$	83.70	$	66.48
Canada		49.18			82.02		93.53		68.29
Egypt		43.74			89.77		91.37		72.51
Australia		30.89			102.35		91.78		79.79
North Sea		55.17			86.67		95.76		70.93
Argentina		51.47			47.32		49.46		45.99
Total		50.69			83.00		87.80		68.84
NATURAL GAS VOLUME — Mcf per day
United States		582,629			772,789		679,876		769,596
Canada		343,489			393,847		352,731		388,211
Egypt		290,292			243,226		263,711		240,777
Australia		117,387			193,998		123,003		194,928
North Sea		2,737			2,175		2,637		1,933
Argentina		202,782			193,128		195,651		200,903
Total		1,539,316			1,799,163		1,617,609		1,796,348
AVERAGE NATURAL GAS PRICE PER MCF
United States	$	6.01		$	7.29	$	8.86	$	7.04
Canada		5.84			6.42		7.94		6.30
Egypt		4.13			5.13		5.25		4.60
Australia		1.86			2.07		2.10		1.89
North Sea		10.02			20.66		18.78		15.03
Argentina		1.85			1.60		1.61		1.17
Total		4.76			5.65		6.70		5.34
NGL VOLUME — Barrels per day
United States		4,052			7,778		5,986		7,702
Canada		2,165			2,383		2,076		2,246
Argentina		2,914			2,953		2,887		2,800
Total		9,131			13,114		10,949		12,748
AVERAGE NGL PRICE PER BARREL
United States	$	29.99		$	55.79	$	58.62	$	45.24
Canada		23.18			50.14		49.33		40.55
Argentina		34.96			45.25		37.83		37.78
Total		29.96			52.39		51.38		42.78

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 Year
	Ended December 31,						Ended December 31,
	2008			2007			2008			2007
Income Attributable to Common Stock (GAAP)	$	(2,947,033	)	$	1,071,103		$	706,274		$	2,806,678
Adjustments:
Foreign currency fluctuation impact on deferred tax expense		(272,206	)		46,469			(397,454	)		232,301
Canadian Federal tax rate reductions		—			(135,429	)		—			(145,503	)
Additional depletion, net of tax		3,647,745						3,647,745
Out-of-period tax adjustments		(152,170	)		—			(173,795	)		4,872
Adjusted Earnings (Non-GAAP)	$	276,336		$	982,143		$	3,782,770		$	2,898,348
Adjusted Earnings Per Share (Non-GAAP)
Basic	$	0.82		$	2.95		$	11.31		$	8.72
Diluted	$	0.82		$	2.92		$	11.22		$	8.66
Average Number of Common Shares
Basic		334,967			333,049			334,351			332,192
Diluted		336,986			335,780			337,191			334,596

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 Ended December 31,				For the Year Ended December 31,
	2008		2007		2008		2007
Net cash provided by operating activities	$	1,036,776	$	1,799,961	$	7,065,344	$	5,677,433
Changes in operating assets and liabilities		52,230		117,660		311,676		517,647
Cash from operations before changes in operating assets and liabilities	$	1,089,006	$	1,917,621	$	7,377,020	$	6,195,080

APACHE CORPORATION
OIL & GAS RESERVE INFORMATION
For the Year Ended December 31, 2008

OIL (Mbbl)

	Central			Gulf Coast			U.S.			Canada			Egypt			Australia			North Sea			Argentina			Total
Balance — Dec 31, 2007		371,299			180,315			551,615			177,955			94,608			76,729			204,717			28,086			1,133,710
Extensions		25,077			12,935			38,012			5,623			28,965			4,401			9,288			9,260			95,549
Purchases		506			1,412			1,918			7			—			—			—			—			1,925
Revisions		(29,085	)		(2,457	)		(31,542	)		(18,786	)		15,264			(1,576	)		(4,314	)		30			(40,924	)
Production		(14,741	)		(20,316	)		(35,057	)		(7,038	)		(24,431	)		(3,019	)		(21,776	)		(5,597	)		(96,918	)
Sales		(5,219	)		(4,963	)		(10,182	)		(2,016	)		—			—			—			—			(12,198	)
Balance — Dec 31, 2008		347,837			166,926			514,764			155,745			114,406			76,535			187,915			31,779			1,081,144

GAS (Mmcf)

	Central			Gulf Coast			U.S.			Canada			Egypt			Australia			North Sea			Argentina			Total
Balance — Dec 31, 2007		1,590,351			1,108,697			2,699,048			2,333,528			1,182,883			1,147,494			6,304			503,460			7,872,717
Extensions		173,272			73,828			247,100			192,974			109,488			151,308			362			114,851			816,083
Purchases		21,844			5,707			27,551			1,757			—			—			—			—			29,308
Revisions		(139,269	)		(36,565	)		(175,834	)		(134,563	)		175,125			(238	)		(116	)		(330	)		(135,956	)
Production		(111,756	)		(137,079	)		(248,835	)		(129,099	)		(96,518	)		(45,019	)		(965	)		(71,608	)		(592,044	)
Sales		(4,642	)		(7,206	)		(11,848	)		(61,235	)		—			—			—			—			(73,083	)
Balance — Dec 31, 2008		1,529,800			1,007,382			2,537,182			2,203,362			1,370,978			1,253,545			5,585			546,373			7,917,025

TOTAL BOE (Mboe)

	Central			Gulf Coast			U.S.			Canada			Egypt			Australia			North Sea			Argentina			Total
Balance — Dec 31, 2007		636,357			365,097			1,001,454			566,878			291,756			267,978			205,767			111,996			2,445,829
Extensions		53,956			25,240			79,196			37,785			47,212			29,619			9,348			28,402			231,562
Purchases		4,147			2,363			6,510			300			—			—			—			—			6,810
Revisions		(52,297	)		(8,551	)		(60,848	)		(41,213	)		44,451			(1,616	)		(4,332	)		(25	)		(63,583	)
Production		(33,366	)		(43,162	)		(76,527	)		(28,556	)		(40,517	)		(10,522	)		(21,937	)		(17,532	)		(195,591	)
Sales		(5,993	)		(6,164	)		(12,157	)		(12,222	)		—			—			—			—			(24,379	)
Balance — Dec 31, 2008		602,804			334,823			937,628			522,972			342,902			285,459			188,846			122,841			2,400,648
Net Change (Growth)		(33,553	)		(30,274	)		(63,826	)		(43,906	)		51,146			17,481			(16,921	)		10,845			(45,181	)
Ending Reserves %		25.1	%		14.0	%		39.1	%		21.8	%		14.3	%		11.9	%		7.9	%		5.1	%		100.0	%
2008 Production %		17.1	%		22.1	%		39.1	%		14.6	%		20.7	%		5.4	%		11.2	%		9.0	%		100.0	%
Production (BOE)
Oil		44.2	%		47.1	%		45.8	%		24.6	%		60.3	%		28.7	%		99.3	%		31.9	%		49.6	%
Gas		55.8	%		52.9	%		54.2	%		75.3	%		39.7	%		71.3	%		0.7	%		68.1	%		50.4	%
		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

APACHE CORPORATION
OIL & GAS RESERVES AND COSTS INCURRED
For the Year Ended December 31, 2008

Reserve Additions (BOE’s)

	Central			Gulf Coast			U.S.			Canada			Egypt		Australia			North Sea			Argentina			Chile		Total
Extensions		53,956			25,240			79,196			37,785			47,212		29,619			9,348			28,402			—		231,562
Revisions		(52,297	)		(8,551	)		(60,848	)		(41,213	)		44,451		(1,616	)		(4,332	)		(25	)		—		(63,583	)
Purchases		4,147			2,363			6,510			300			—		—			—			—			—		6,810
Total Adds		5,806			19,052			24,858			(3,128	)		91,663		28,003			5,016			28,377			—		174,789

Costs Incurred

	Central		Gulf Coast		U.S.		Canada		Egypt		Australia			North Sea		Argentina		Chile		Total
Exploration & Development		824,598		1,758,331		2,582,929		834,346		860,448		881,570			471,759		354,142		27,457		6,012,651
Acquisitions		132,394		12,685		145,079		4,938		—		(500	)		—		—		—		149,517
Total		956,992		1,771,016		2,728,008		839,284		860,448		881,070			471,759		354,142		27,457		6,162,168
Included in the costs incurred are the following:
Capitalized Interest		8,350		11,917		20,267		12,313		7,646		8,636			703		23,988		—		73,553
Asset Retirement Cost		14,959		364,230		379,189		116,967		—		(6,746	)		11,817		12,664		—		513,891