Third-Quarter 2019
Financial & Operational Supplement
Notice to Investors
Certain statements in this earnings supplement contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 including, without limitation, expectations, beliefs, plans, and objectives regarding anticipated financial and operating results, asset divestitures, estimated reserves, drilling locations, capital expenditures, price estimates, typical well results and well profiles, type curve, and production and operating expense guidance included in this earnings supplement. 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 on Form 10-K, recently filed Quarterly Reports on Form 10-Q, recently filed Current Reports on Form 8-K available on our website, www.apachecorp.com, and in our other public filings and press releases. These forward-looking statements are based on Apache Corporation's (Apache) current expectations, estimates, and projections about the company, its industry, its management's beliefs, and certain assumptions made by management. No assurance can be given that such expectations, estimates, or projections will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results, or other expectations expressed in this earnings supplement, including, Apache's ability to meet its production targets, successfully manage its capital expenditures and to complete, test, and produce the wells and prospects identified in this earnings supplement, to successfully plan, secure necessary government approvals, finance, build, and operate the necessary infrastructure, and to achieve its production and budget expectations on its projects.
Whenever possible, these "forward-looking statements" are identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "continues," "could," "estimates," "expects," "guidance," "may," "might," "outlook," "possible," "potential," "projects," "should," "would," "will," and similar phrases, but the absence of these words does not mean that a statement is not forward-looking. Because such statements involve risks and uncertainties, Apache's actual results and performance may differ materially from the results expressed or implied by such forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. Unless legally required, we assume no duty to update these statements as of any future date. However, you should review carefully reports and documents that Apache files periodically with the Securities and Exchange Commission.
Cautionary Note to Investors: The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable, and possible reserves that meet the SEC's definitions for such terms. Apache may use certain terms in this earnings supplement, such as "resource," "resource potential," "net resource potential," "potential resource," "resource base," "identified resources," "potential net recoverable," "potential reserves," "unbooked resources," "economic resources," "net resources," "undeveloped resource," "net risked resources," "inventory," "upside," and other similar terms that the SEC guidelines strictly prohibit Apache from including in filings with the SEC. Such terms do not take into account the certainty of resource recovery, which is contingent on exploration success, technical improvements in drilling access, commerciality, and other factors, and are therefore not indicative of expected future resource recovery and should not be relied upon. Investors are urged to consider carefully the disclosure in Apache's Annual Report on Form 10-K for the fiscal year ended December 31, 2018 available from Apache at www.apachecorp.comor by writing Apache at: 2000 Post Oak Blvd., Suite 100, Houston, Texas 77056 (Attn: Corporate Secretary). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC's website at www.sec.gov.
Certain information may be provided in this earnings supplement that includes financial measurements that are not required by, or presented in accordance with, generally accepted accounting principles (GAAP). These non-GAAP measures should not be considered as alternatives to GAAP measures, such as net income, total debt or net cash provided by operating activities, and may be calculated differently from, and therefore may not be comparable to, similarly titled measures used at other companies. For a reconciliation to the most directly comparable GAAP financial measures, please refer to Apache's third quarter 2019 earnings release at www.apachecorp.comand "Non-GAAP Reconciliations" of this earnings supplement.
None of the information contained in this document has been audited by any independent auditor. This earnings supplement is prepared as a convenience for securities analysts and investors and may be useful as a reference tool. Apache may elect to modify the format or discontinue publication at any time, without notice to securities analysts or investors.
2
3Q 2019 Key Metrics
3Q 2019 | |||
Reported Production | 451 Mboe/d | ||
Adjusted Production(1) | 391 Mboe/d | ||
Cost Incurred in Oil and Gas Property | $646 Million | ||
Upstream Capital Investment(2) | $590 Million | ||
Net Cash Provided by Operating Activities | $635 Million | ||
Adjusted EBITDAX(2) | $905 Million | ||
Earnings Per Share | ($0.45) | ||
Adjusted Earnings Per Share(2) | ($0.29) | ||
(1) Excludes production attributable to Egypt tax barrels and noncontrolling interest. | |||
(2) For a reconciliation to the most directly comparable GAAP financial measure please refer to the Non-GAAP Reconciliations. |
3
Highlights
On trackto meet 2019 upstream capital
investment budget of ~$2.4 billion
At current strip, anticipate 2020 budget
10 - 20% below2019 upstream capital investment
2ndGarten well in North Sea encountered | Drilling 1stWell |
~1,200 feet of net pay |
Significantly exceeded | Offshore Suriname |
pre-drill estimates | Block 58 |
Adjusted production of
391 MBOE/D
Exceeded guidance of 373 - 383 Mboe/d
Operational & organizational initiatives
targeting annual cost savings
of at least $150 million
4
Permian Oil Production
2019 Production Guidance Update (Mbo/d)
- 4Q'19E approximately 100 Mbo/d (lower end of prior guidance range)
- Combination of unplanned downtime, delay in completions and well maintenance timing
99 | 98 | 95 | 100 | |||||
92 | ||||||||
90 | 90 | |||||||
85 | ||||||||
85 | ||||||||
4Q'17 | 1Q'18 | 2Q'18 | 3Q'18 | 4Q'18 | 1Q'19 | 2Q'19 | 3Q'19 | 4Q'19E |
4Q'17 | 1Q'18 | 2Q'18 | 3Q'18 | 4Q'18 | 1Q'19 | 2Q'19 | 3Q'19 | 4Q'19E |
5
Alpine High Production
2019 Production Guidance Update (Mboe/d)
- Reduced 4Q guidance by 5% due to reduced activity and lower than expected production from our recent Blackfoot pad
120 | •4Q guidance assumes no deferrals and 100% ethane recovery | ||||
100 | 94 - 96 | ||||
80 | 70 | 76 | |||
60 | 58 | 49 | |||
40 | |||||
20 | Deferred Production Volume Impact | ||||
0 | 4Q'18 | 1Q'19 | 2Q'19 | 3Q'19 | 4Q'19E |
'18 | 1Q'19 | 2Q'19E | 3Q'19E | 4Q'19E |
6
International Production
2019 Production Guidance Update (Mboe/d)
Quarterly
- No change to prior guidance for 4Q'19 & FY 2019
145 | |||
132 | 132 - 135 | ||
125 | |||
North Sea Seasonal | |||
TAR Impact | |||
1Q'19 | 2Q'19 | 3Q'19 | 4Q'19E |
Annual
134 | 133 - 134 |
2018 | 2019E |
Note: Includes North Sea production and Egypt adjusted production. This excludes production attributable to Egypt tax barrels and noncontrolling interest.
7
3Q Results
8
3Q 2019 Global Portfolio
Balanced Portfolio Aligns Returns Focus & Strategic Objectives
UNITED STATES
265,910 BOE/D
Reported Production
38% / 35% / 27%
Oil / Gas / NGL
48 Gross, 47 Net
Drilled & Completed Wells(1)
10
Avg Rigs
GLOBAL
450,644 BOE/D | 51% / 33% / 16% | 64 Gross, 63 Net | 20 |
Reported Production | Oil / Gas / NGL | Drilled & Completed Wells(1) | Avg Rigs |
UK North Sea | ||
United States | Egypt | |
April 2015 | JuneSuriname | September 2016 |
INTERNATIONAL
184,734 BOE/D
Reported Production
70% / 29% / 1%
Oil / Gas / NGL
16 Gross, 16 Net
Drilled & Completed Wells(1)
10
Avg Rigs
(1) Includes operated wells completed but not necessarily placed onto production.
9
3Q Permian Summary
Midland Basin
- Averaged 3 rigs, 2 frac crews and placed 20 wells on production
- Strong results from Lower Cline test well at Azalea (Driver Schrock pad)
- Average30-day IP: 1,269 Mboe/d (72% oil)
- Core inventory to expand upon successfulfollow-on tests
Other Delaware Basin
- Averaged 2 rigs and placed 9 wells on production
- Strong results from 2 pads at Dixieland and Palmillo pad in New Mexico
Alpine High
- Averaged 5 rigs, 1 frac crew and placed 15 wells on production
- Average drilling & completions costs per foot down 28% and 41%through end of third quarter, compared to 2017
- Operated wells completed but not necessarily placed onto production.
REGION STATS
254,432 BOE/D
Reported Production
37% / 35% / 28%
Oil / Gas / NGL
47 Gross, 46 Net
Drilled & Completed Wells(1)
10
Avg Rigs
NET PRODUCTION MBOE/D
260 | 248 | 254 | |
222 | 236 | 226 | |
220 |
180
140
100
3Q18 | 4Q18 | 1Q19 | 2Q19 | 3Q19 |
10
Well Highlights: Midland Basin
MIDLAND BASIN
M i d l a n d | G l a s s c o c k |
1
U p t o n
2
R e a g a n
PAD | FORMATION | AREA | COUNTY | LATERAL | AVG 30-DAY | AVG 30-DAY IP | OIL | ||||||||
(FT) | IP/WELL | BOEPD/1,000 FT | |||||||||||||
1 | Driver Schrock (11 Wells) | Wolfcamp, | Azalea | Midland | 7,252 | 1,037 BOE/D | 143 | 77% | |||||||
Spraberry, Cline | |||||||||||||||
2 | Aldwell (5 Wells) | Wolfcamp | Hartgrove | Reagan | 9,939 | 1,154 BOE/D | 116 | 79% | |||||||
11
Well Highlights: Other Delaware Basin
OTHER DELAWARE BASIN
4
1, 2, 3
PAD / WELL | FORMATION | AREA | COUNTY | LATERAL | AVG 30-DAY | AVG 30-DAY IP | Oil % | |
(FT) | IP/WELL | BOEPD/1,000 FT | ||||||
1 | Jackson (2 Wells) | Wolfcamp | Dixieland | Reeves | 4,615 | 1,685 BOE/D | 367 | 44% |
2 | Lee (2 Wells) | Wolfcamp | Dixieland | Reeves | 4,568 | 1,540 BOE/D | 336 | 43% |
3 | Bragg 407AH | Wolfcamp | Dixieland | Reeves | 4,426 | 1,403 BOE/D | 317 | 48% |
4 | Palmillo 21 Pad (4 Wells) | Bone Spring | Palm | Eddy | 4,568 | 1,167 BOE/D | 255 | 72% |
12
3Q Egypt Summary
REGION HIGHLIGHTS
- Second well brought online in Cobra field (East Bahariya concession)
- Cobra-2well flowing at 3,000 BOPD from the lower Bahariya formation
- Follow-upto exploration success (Bolt-150X)
- Matruh BasinBiruni-1X well tested at 5,000 BOPD
- Currently drilling an offset and have future expansion potential
- Recent exploration successes adds to future production potential
- Shushan BasinAnti-1X well tested at 47 MMCFD and 1,685 BCPD
- High quality gas condensate discovery (Barakat Deep - 01X)
- Close proximity to new gas infrastructure
- De-risksnumerous Paleozoic prospects in the area
Well Name | Basin | 30-Day Average IP | Oil | Program Success Rate | |
Berenice 11 | Faghur | 6,220 Boe/d | 99% | ||
Ptah 19 | Faghur | 2,283 Boe/d | 92% | 71% | |
Ptah 31 | Faghur | 1,969 Boe/d | 92% | (10 out of 14) | |
Herunefer W-13 | Matruh | 1,555 Boe/d | 94% | ||
- Operated wells completed but not necessarily placed onto production.
- Excludes tax barrels and noncontrolling interest.
REGION STATS
130,934 BOE/D
Reported Production
64% / 35% / 1%
Oil / Gas / NGL
14 Gross, 14 Net
Drilled & Completed Wells(1)
7
Avg Rigs
ADJUSTED PRODUCTION MBOE/D (2)
100 | |||
78 | 74 | 79 | |
80 | 72 | 72 | |
60
40
20
0
3Q18 | 4Q18 | 1Q19 | 2Q19 | 3Q19 |
13
3Q North Sea Summary
REGION HIGHLIGHTS
- Impressive results fromBK-7 well at Buckland
- Gross rates of over11,500 BOPD(APA 59% WI)
- Additionalup-hole potential
- 2ndGarten well expected online in late 4Q 2019
- Contains approximately1,200 feet of net paycompared to 700 feet from initial Garten discovery
- 1stGarten well currently ~6,400 BOE per day (on production for nearly one year)
- High quality gas condensate well at Storr expected online in November
Well Name | Basin | 30-Day | Oil | Working | Program Success | |
Average IP | Interest | Rate | ||||
BK-7 | Beryl | 11,700 Boe/d | 83% | 59% | 100% | |
(1) Operated wells completed but not necessarily placed onto production.
REGION STATS
53,800 BOE/D
Reported Production
82% / 15% / 3%
Oil / Gas / NGL
2 Gross, 2 Net
Drilled & Completed Wells(1)
3
Avg Rigs
NET PRODUCTION MBOE/D
100
80
63 6660
60 | 51 | 54 |
40
20
0
3Q18 | 4Q18 | 1Q19 | 2Q19 | 3Q19 |
14
Offshore Suriname: High-Impact Oil Exploration
- Block 58 comprises 1.4 MM acres in an active hydrocarbon system
- Acquired in June 2015, 100% Apache owned
- 3-Dseismic surveys & processing completed
- Multiple plays with more than50 significant prospectsmapped to date
- On trend with Exxon's Stabroek block
- To date > 6 billion barrels of recoverable resource announced
- Apache began drilling first Block 58 well on September 24th(Maka Central #1)
- Exercised option to drill two additional wells with theNoble Sam Croft
- Expanded exploration phase timeline
Ranger
Stabroek Area
Exxon Discoveries
Pacora | ||||
Payara | ||||
Liza | Yellowtail | |||
Snoek | ||||
Tripletail | ||||
Hammerhead | Longtail | |||
Block 53 | ||||
Tilapia | Turbot | |||
Haimara | 0.87 MM Acres* | |||
Pluma | APA WI: 45% | |||
Block 58 | ||||
Guyana | 1.44 MM Acres | |||
APA WI: 100% |
Offshore
Suriname
Offshore
*Gross acres
15
3Q 2019 Operating Cash Margins
Brent Oil Price Exposure and Premium NGL / Gas Prices Drives Strong International Margins
$60 | Egypt | North Sea | Permian | ||||
$50 | |||||||
$50 / Boe | |||||||
$45 / Boe | |||||||
$40 | |||||||
$35 | $33 | ||||||
$30 | |||||||
Per Boe | |||||||
Per Boe | $26 / Boe | ||||||
$20 | $16 | ||||||
$17 / Boe |
Per Boe
$10 | $10 / Boe | $10 / Boe |
$0
Operating Cash Margin(1) | Avg Realization | Cash Operating Cost |
(1) Operating cash margins calculated as price realizations less lease operating expenses, gathering, processing, & transmission costs, and taxes other than income.
16
4Q 2019 Guidance
(1) Excludes dry hole expense and unproved leasehold impairments.
17
2019 Guidance
- Refer to glossary of referenced terms for definition of Upstream Capital Investment.
- Represents combination of 100% Altus Midstream Company operating expense and Apache upstream GPT costs.
- Excludes dry hole expense and unproved leasehold impairments.
(4) Excludes loss on debt extinguishment of $75 million that occurred in 2Q 2019. | 18 |
Appendix
19
Framework for Long-Term Value Creation
BALANCED PORTFOLIO APPROACH
Exploration / Development
Conventional / Unconventional
Oil / Liquids Rich Gas / Lean Gas
OPERATIONAL FLEXIBILITY
Actively Manage Capital Allocation to Reflect Commodity Price Environment
FREE CASH FLOW GENERATION
Capital Discipline, Long-TermReturns-Focused Investment
RETURN OF CAPITAL
Plan for Increasing Returns to Investors - Debt Reduction, Dividends and Share Repurchases
SUSTAINABLE, MODERATE PRODUCTION GROWTH
Prioritize Returns / Growth is an Outcome
EXPLORATION TO PROVIDE LONG-TERM OPPORTUNITY
Suriname / Egypt / North Sea / U.S. Onshore
20
Glossary of Referenced Terms
- Upstream Capital Investment: Includes exploration, development, gathering, processing, and transmission capital, capitalized overhead, and settled asset retirement obligations, and excludes capitalized interest, non-cash asset retirement additions and revisions, and Egypt noncontrolling interest, in each case associated with Apache's upstream business.
- CROIC (Cash Return On Invested Capital): Calculated with the numerator as cash flow from operations before changes in working capital, excluding Egypt noncontrolling interest, with financing costs added back; and the denominator as average debt plus average
Apache shareholders' equity. - Net Debt: Total debt (long-term and short-term) less cash and cash equivalents.
- Free Cash Flow: Excess cash flow from operations before working capital changes after upstream capital investment, distributions to noncontrolling interest and dividend payments. The impacts of ALTM are excluded from this definition, as future development of the ALTM midstream assets is expected to be separately funded by ALTM.
- Cash Flow Neutrality: Free Cash Flow equal to zero.
In addition to the terms above, a list of commonly used definitions and abbreviations can be found in Apache's Form 10-K for the year ended December 31, 2018.
21
Upstream Capital Investment
($ in Millions) | 1Q19 | 2Q19 | 3Q19 | |||||||||
Permian…….………………………………….. | $ | 415 | $ | 426 | $ | 388 | ||||||
MidCon / Gulf Coast….………………….. | 18 | 12 | 1 | |||||||||
Gulf of Mexico………………………………. | 12 | 16 | 31 | |||||||||
United States…..…….…………… | 445 | 454 | 420 | |||||||||
Egypt (Apache's interest only)………. | 88 | 71 | 65 | |||||||||
North Sea……………………………………… | 62 | 62 | 83 | |||||||||
Other ………………………………………….... | 2 | 2 | 22 | |||||||||
Upstream Capital Investment Total…………… | $ | 597 | $ | 589 | $ | 590 | ||||||
For a reconciliation of Cost Incurred to Upstream Capital Investment please refer to the Non-GAAP Reconciliations.
22
Open Commodity Derivative Positions
As of October 30, 2019
Oil Basis Hedges
Weighted | ||||||
BBL | Average Price | |||||
Production Period | Index | (per day) | Differential | |||
October- December 2019 | Midland/WTI | 15,000 | (3.72) | |||
Natural Gas Basis Hedges | ||||||
Weighted | ||||||
MMBtu | Average Price | |||||
Production Period | Index | (per day) | Differential | |||
October-December 2019 | Waha/NYMEX | 40,000 | (0.45) |
23
Egypt: Production Detail
2Q 2019 | 3Q 2019 | ||||||||||||
Liquids | Gas | Liquids | Gas | ||||||||||
(Bbls/d) | (Mcf/d) | Boe/d | (Bbls/d) | (Mcf/d) | Boe/d | ||||||||
Gross Production | 200,374 | 729,378 | 321,937 | 189,118 | 673,065 | 301,296 | |||||||
Reported Production | 84,659 | 277,552 | 130,917 | 85,005 | 275,569 | 130,934 | |||||||
% Gross | 42% | 38% | 41% | 45% | 41% | 43% | |||||||
Less: Tax Barrels | 17,470 | 37,093 | 23,652 | 17,536 | 35,175 | 23,399 | |||||||
Net Production Excluding Tax Barrels | 67,189 | 240,459 | 107,265 | 67,469 | 240,394 | 107,535 | |||||||
% Gross | 34% | 33% | 33% | 36% | 36% | 36% | |||||||
Less: Noncontrolling Interest | 22,397 | 80,153 | 35,755 | 22,490 | 80,131 | 35,845 | |||||||
Adjusted Production | 44,792 | 160,306 | 71,510 | 44,979 | 160,263 | 71,690 | |||||||
% Gross | 22% | 22% | 22% | 24% | 24% | 24% | |||||||
2017 | 2018 | 2019 | |||||||||||
MBOE/D | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | ||
Gross Production | 328 | 334 | 339 | 334 | 330 | 342 | 338 | 335 | 332 | 322 | 301 | ||
Reported Production | 171 | 162 | 158 | 160 | 154 | 154 | 153 | 136 | 145 | 131 | 131 | ||
Adjusted Production | 88 | 89 | 87 | 82 | 80 | 80 | 78 | 74 | 79 | 72 | 72 | ||
Brent Oil Benchmark Pricing | $53 | $48 | $51 | $61 | $67 | $75 | $76 | $69 | $64 | $68 | $62 |
24
Non - GAAP Reconciliations
25
Non - GAAP Reconciliation
Adjusted Earnings
Reconciliation of Income Attributable to Common Stock to Adjusted Earnings
Our presentation of adjusted earnings and adjusted earnings per share are non-GAAP measures because they exclude the effect of certain items included in Income Attributable to Common Stock. Management believes that adjusted earnings and adjusted earnings per share provides relevant and useful information, which is widely used by analysts, investors and competitors in our industry as well as by our management in assessing the Company's operational trends and comparability of results to our peers.
Management uses adjusted earnings and adjusted earnings per share to evaluate our operating and financial performance because it eliminates the impact of certain items that management does not consider to be representative of the Company's on-going business operations. As a performance measure, adjusted earnings may be useful to investors in facilitating comparisons to others in the Company's industry because certain items can vary substantially in the oil and gas industry from company to company depending upon accounting methods, book value of assets, capital structure and asset sales and other divestitures, among other factors. Management believes excluding these items facilitates investors and analysts in evaluating and comparing the underlying operating and financial performance of our business from period to period by eliminating differences caused by the existence and timing of certain expense and income items that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted earnings and adjusted earnings per share may not be comparable to similar measures of other companies in our industry.
*The income tax effect of the reconciling items are calculated based on the statutory rate of the jurisdiction in which the discrete item resides.
26
Non - GAAP Reconciliation
Adjusted EBITDAX
Reconciliation of Net Cash Provided by Operating Activities to Adjusted EBITDAX
Management believes EBITDAX, or earnings before income tax expense, interest expense, depreciation, amortization and exploration expense is a widely accepted financial indicator, and useful for investors, to assess a company's ability to incur and service debt, fund capital expenditures, and make distributions to shareholders. We define adjusted EBITDAX, a non-GAAP financial measure, as EBITDAX adjusted for certain items presented in the accompanying reconciliation. Management uses adjusted EBITDAX to evaluate our ability to fund our capital expenditures, debt services and other operational requirements and to compare our results from period to period by eliminating the impact of certain items that management does not consider to be representative of the Company's on-going operations. Management also believes adjusted EBITDAX facilitates investors and analysts in evaluating and comparing EBITDAX from period to period by eliminating differences caused by the existence and timing of certain operating expenses that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted EBITDAX may not be comparable to similar measures of other companies in our industry.
($ in millions)
27
Non - GAAP Reconciliation
Regional Cash Flows
Reconciliation of Net Cash Provided by Operating Activities to Cash Flows from Continuing Operations before Changes in Operating Assets and Liabilities
Cash flows from continuing operations before changes in operating assets and liabilities is a non-GAAP financial measure. Apache uses it internally and provides the information because management believes it is useful for investors 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 flows 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.
(1) Includes non-controlling interest in Egypt.
28
Non - GAAP Reconciliation
Cash Flow From Operations Before Changes in Operating Assets and Liabilities
Reconciliation of Net Cash Provided by Operating Activities to Cash Flows from Operations before Changes in Operating Assets and Liabilities
Cash flows from operations before changes in operating assets and liabilities is a non-GAAP financial measure. Apache uses it internally and provides the information because management believes it is useful for investors 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 flows 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.
($ in millions)
(1) Includes non-controlling interest in Egypt.
29
Non - GAAP Reconciliation
Net Debt
Reconciliation of Debt to Net Debt
Net debt, or outstanding debt obligations less cash and cash equivalents, is a non-GAAP financial measure. Management uses net debt as a measure of the Company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand.
($ in millions)
30
Non - GAAP Reconciliation
Upstream Capital Investment
Reconciliation of Costs Incurred to Upstream Capital Investment
Management believes the presentation of upstream capital investments is useful for investors to assess Apache's expenditures related to our upstream capital activity. We define capital investments as costs incurred for oil and gas activities, adjusted to exclude asset retirement obligation revisions and liabilities incurred, capitalized interest, and certain exploration expenses, while including amounts paid during the period for abandonment and decommissioning expenditures. Upstream capital expenditures attributable to a one-third noncontrolling interest in Egypt are also excluded. Management believes this provides a more accurate reflection of Apache's cash expenditures related to upstream capital activity and is consistent with how we plan our capital budget.
($ in millions)
31
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Apache Corporation published this content on 30 October 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2019 21:41:00 UTC