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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 3, 2000
APACHE CORPORATION
(Exact name of registrant as specified in Charter)
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DELAWARE 1-4300 41-0747868
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification Number)
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2000 POST OAK BOULEVARD
SUITE 100
HOUSTON, TEXAS 77056-4400
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (713) 296-6000
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ITEM 5. OTHER EVENTS
On February 3, 2000, Apache Corporation announced earnings for the fourth
quarter and year 1999. Apache issued a press release, dated February 3, 2000,
which is listed under Item 7 as Exhibit 99.1 and incorporated herein by
reference.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) EXHIBITS.
EXHIBIT NO. DESCRIPTION
99.1* Press Release, dated February 3, 2000, "Apache Reports
Record Earnings of $1.73 per Share in 1999".
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* filed herewith
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
APACHE CORPORATION
Date: February 16, 2000 /s/ Z. S. Kobiashvili
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Z. S. Kobiashvili
Vice President and General Counsel
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INDEX TO EXHIBITS
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EXHIBIT NO. DESCRIPTION
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99.1* Press Release, dated February 3, 2000, "Apache Reports
Record Earnings of $1.73 per Share in 1999".
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* filed herewith
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EXHIBIT 99.1
CONTACTS:
(MEDIA): TONY LENTINI (713/296-6227)
BILL MINTZ (713/296-7276)
(INVESTOR): ROBERT DYE (713/296-6662)
(WEB SITE): www.apachecorp.com
FOR RELEASE AT 7:30 A.M. CENTRAL TIME
APACHE REPORTS RECORD EARNINGS OF $1.73 PER SHARE IN 1999
41 PERCENT HIGHER PRODUCTION, STRONG PRICES FUEL FOURTH-QUARTER EARNINGS OF 81
CENTS PER SHARE
Houston (Feb. 3, 2000) - Apache Corporation (NYSE: APA) today reported that
higher oil and natural gas production and strong prices during 1999 contributed
to record net income of $1.73 per share, or $186.4 million, compared with a net
loss of $1.34 per share, or $131.4 million, in the prior year.
Cash from operations surged 74 percent, rising to $727.6 million, or $6.74
per share, compared to $419.2 million, or $4.28 per share, in 1998. Revenues
increased 49 percent to $1.3 billion in 1999, from $875.7 million a year
earlier.
In the fourth quarter of 1999, net income was a record 81 cents per share,
or $92.5 million, compared to a net loss of $1.64 per share, or $160.6 million,
in the prior-year period. The fourth-quarter 1998 results included an after-tax,
non-cash charge of $158.1 million that reflected the impact of lower oil and gas
prices on the book value of Apache's oil and gas reserves in the United States.
Fourth-quarter cash from operations nearly tripled, climbing to $266.6
million from $92.7 million in the comparable 1998 period. Revenues increased 125
percent to $445.8 million, from $198 million in 1998.
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APACHE FOURTH QUARTER EARNINGS - ADD1
In the fourth quarter, oil production rose 60 percent to 108,600 barrels of
oil per day and gas production increased 27 percent to 731 million cubic feet
(MMcf) per day. Natural gas liquids (NGL) production in the fourth quarter
increased 44 percent to 5,300 barrels per day. Apache received $22.99 per barrel
of oil in the fourth quarter, up from $10.88 in the prior year period, and $2.42
per thousand cubic feet (Mcf) of gas, up from $1.84 in the fourth quarter of
1998. NGL prices rose 47 percent to $11.16 per barrel.
Apache achieved several operational and financial milestones in 1999.
Production rose for the 22nd consecutive year, with oil volumes increasing
25 percent to an average of 91,000 barrels per day. Natural gas production
averaged 656 MMcf per day, an increase of 11 percent. NGL production rose 37
percent to 3,900 barrels per day.
Reserves reached a new high for the 12th consecutive year, up 32 percent to
807 million barrels of oil equivalent. Apache added 310 million barrels of oil
equivalent through acquisitions, drilling and revisions at a worldwide finding
cost of $5.80 per barrel.
Apache replaced 416 percent of its production in 1999. Proved oil reserves
increased 65 percent to 415 million barrels and gas reserves increased 8 percent
to 2.4 trillion cubic feet. The company's estimated reserve life increased to
10.8 years from 9.6 years at the end of 1998.
Although Apache spent $1.8 billion on acquisitions and exploration and
development activities, its debt as a percentage of total capitalization fell to
41.4 percent at the end of 1999, from 43 percent at the end of 1998.
"Apache's goal of building a company that can grow over full-cycle
economics is paying off," said Raymond Plank, chairman and chief executive
officer. "With oil prices at 10-year highs, we are reaping the benefits of our
strategy of growing through acquisitions in North America and through
exploration drilling in parts of Canada and our international core areas."
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APACHE FOURTH QUARTER EARNINGS - ADD 2
"We are pleased with our progress in 1999," said G. Steven Farris,
president and chief operating officer, "and, with a full-year benefit of the
acquisitions we made last year, plus a very active exploration program planned
for Canada, Egypt, Australia and Poland, we are off to a fast start in 2000."
Apache Corporation is a large oil and gas independent with operations in
North America, Egypt, Western Australia, Poland and People's Republic of China.
Its common shares are traded on the New York and Chicago stock exchanges.
-end-
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APACHE CORPORATION
FINANCIAL INFORMATION
(In thousands, except per share data)
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FOR THE QUARTER FOR THE YEAR
ENDED DECEMBER 31, ENDED DECEMBER 31,
----------------------------- -----------------------------
1999 1998 1999 1998
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FINANCIAL DATA:
Revenues $ 445,763 $ 197,959 $ 1,300,505 $ 875,715
============ ============ ============ ============
Income (Loss) Attributable to Common Stock $ 92,531 $ (160,600) $ 186,406 $ (131,391)
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Basic Net Income (Loss) Per Common Share $ .81 $ (1.64) $ 1.73 $ (1.34)
============ ============ ============ ============
Diluted Net Income (Loss) Per Common Share $ .80 $ (1.64) $ 1.72 $ (1.34)
============ ============ ============ ============
Weighted Average Common Shares 114,055 97,765 107,936 98,066
============ ============ ============ ============
PRODUCTION AND PRICING DATA:
NATURAL GAS VOLUME - MCF PER DAY
United States 504,276 397,969 461,444 432,059
Canada 98,831 120,021 99,791 105,871
Australia 89,381 55,477 76,220 50,624
Egypt 38,943 3,242 15,916 1,554
Ivory Coast -- -- 2,749 --
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Total 731,431 576,709 656,120 590,108
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AVERAGE NATURAL GAS PRICE PER MCF
United States $ 2.57 $ 1.99 $ 2.31 $ 2.11
Canada 2.02 1.53 1.73 1.36
Australia 1.52 1.48 1.51 1.51
Egypt 3.67 2.03 3.45 1.91
Ivory Coast -- -- 1.72 --
Total 2.42 1.84 2.16 1.92
OIL VOLUME - BARRELS PER DAY
United States 54,294 30,319 45,556 34,067
Canada 5,851 2,160 3,053 2,090
Australia 12,760 10,261 10,624 8,838
Egypt 35,717 25,271 31,751 27,911
Ivory Coast -- -- 37 --
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Total 108,622 68,011 91,021 72,906
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AVERAGE OIL PRICE PER BARREL
United States $ 21.77 $ 10.87 $ 17.94 $ 12.63
Canada 24.03 10.94 19.35 12.55
Australia 24.60 11.42 19.70 13.07
Egypt 24.10 10.66 18.63 12.57
Ivory Coast -- -- 15.68 --
Total 22.99 10.88 18.43 12.66
NGL VOLUME - BARRELS PER DAY
United States 4,558 3,025 3,308 2,267
Canada 704 625 630 616
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Total 5,262 3,650 3,938 2,883
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NGL PRICE PER BARREL
United States $ 10.98 $ 7.99 $ 9.37 $ 8.38
Canada 12.31 5.73 9.64 6.32
Total 11.16 7.60 9.42 7.94
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APACHE CORPORATION
FINANCIAL INFORMATION
(In thousands, except per share data)
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FOR THE QUARTER FOR THE YEAR
ENDED DECEMBER 31, ENDED DECEMBER 31,
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1999 1998 1999 1998
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REVENUES:
Oil and gas production revenues $ 398,324 $ 168,432 $ 1,142,336 $ 759,038
Gathering, processing and marketing revenues 50,106 28,523 155,562 117,395
Other revenues (2,667) 1,004 2,607 (718)
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Total revenues 445,763 197,959 1,300,505 875,715
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OPERATING EXPENSES:
Depreciation, depletion and amortization:
Recurring 129,834 92,203 442,844 382,807
Additional -- 243,178 -- 243,178
Lease operating costs 54,440 46,390 191,161 182,912
Severance and other taxes 10,350 6,653 32,400 28,642
Gathering, processing and marketing costs 49,741 27,881 153,367 114,471
Administrative, selling and other 16,209 6,705 53,894 40,731
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Total operating expenses 260,574 423,010 873,666 992,741
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OPERATING INCOME 185,189 (225,051) 426,839 (117,026)
FINANCING COSTS:
Interest expense 35,400 29,205 132,986 119,703
Amortization of deferred loan costs 1,538 1,081 4,854 4,496
Capitalized interest (13,568) (13,008) (53,231) (49,279)
Interest income (947) (823) (2,343) (4,383)
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Net financing costs 22,423 16,455 82,266 70,537
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INCOME (LOSS) BEFORE INCOME TAXES 162,766 (241,506) 344,573 (187,563)
Provision (benefit) for income taxes 65,289 (82,326) 143,718 (58,176)
------------ ------------ ------------ ------------
NET INCOME (LOSS) 97,477 (159,180) 200,855 (129,387)
Preferred stock dividends 4,946 1,420 14,449 2,004
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INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK $ 92,531 $ (160,600) $ 186,406 $ (131,391)
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BASIC NET INCOME (LOSS) PER COMMON SHARE $ .81 $ (1.64) $ 1.73 $ (1.34)
============ ============ ============ ============
WEIGHTED AVERAGE COMMON SHARES 114,055 97,765 107,936 98,066
============ ============ ============ ============
CASH FROM OPERATIONS:
Net income (loss) $ 97,477 $ (159,180) $ 200,855 $ (129,387)
Depreciation, depletion and amortization 129,834 335,381 442,844 625,985
Amortization of deferred loan costs 1,538 1,081 4,854 4,496
Deferred income taxes 35,582 (84,627) 77,494 (81,856)
Other 2,156 -- 1,533 --
------------ ------------ ------------ ------------
$ 266,587 $ 92,655 $ 727,580 $ 419,238
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APACHE CORPORATION
FINANCIAL INFORMATION
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FOR THE QUARTER FOR THE YEAR
ENDED DECEMBER 31, ENDED DECEMBER 31,
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1999 1998 1999 1998
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CAPITALIZED COSTS INCURRED (IN THOUSANDS):
North America exploration and development $ 111,666 $ 64,013 $ 263,167 $ 292,507
International exploration and development 45,515 73,182 146,514 248,913
Acquisitions 497,445 40,156 1,391,206 58,402
Capitalized interest 13,568 13,008 53,231 49,279
Property sales (5,489) 1,042 (155,226) (141,449)
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DECEMBER 31, DECEMBER 31,
1999 1998
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BALANCE SHEET DATA (IN THOUSANDS):
Total debt $ 1,885,808 $ 1,358,758
Shareholders' equity $ 2,669,425 $ 1,801,833
Common shares outstanding at end of period 113,996 97,769
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