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Apache Corp. Reports Operating Results (10-Q)

November 08, 2011 | About:
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10qk

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Apache Corp. (APA) filed Quarterly Report for the period ended 2011-09-30.

Apache Corp. has a market cap of $40.17 billion; its shares were traded at around $104.63 with a P/E ratio of 9.3 and P/S ratio of 3.3. The dividend yield of Apache Corp. stocks is 0.6%. Apache Corp. had an annual average earning growth of 15.2% over the past 10 years. GuruFocus rated Apache Corp. the business predictability rank of 2.5-star.

Highlight of Business Operations:

Apaches steady commitment to building a portfolio of high-quality core assets with a diversity of geologic and geographic risk, product mix and reserve life drove our financial performance in the third quarter of 2011. Record third-quarter 2011 production and higher prices relative to the prior-year quarter delivered earnings of $983 million, or $2.50 per diluted common share, for the quarter, an increase of 28 percent from $765 million in the third quarter of 2010. Earnings for the first nine months of 2011 rose $1 billion from the comparable 2010 period to $3.3 billion, or $8.49 per diluted common share. Adjusted earnings for the quarter and first nine months of 2011, which exclude the impact of the U.K. tax rate increase and foreign currency benefits, were $1.2 billion and $3.5 billion, or $2.95 and $8.89 per diluted common share, respectively. For the comparable 2010 periods, adjusted earnings were $797 million and $2.3 billion, or $2.20 and $6.75 per diluted common share. Adjusted earnings is not a financial measure prepared in accordance with generally accepted accounting principles in the United States (GAAP). For a description of adjusted earnings and a reconciliation of adjusted earnings to income attributable to common stock, the most directly comparable GAAP financial measure, please see Results of Operations Non-GAAP Measures Adjusted Earnings below.

Financial derivative hedging activities and the North Sea fixed-price sales contract decreased oil revenues $82 million and $301 million for the 2011 third quarter and nine-month period, respectively, and $6 million and $33 million for the comparative 2010 periods.

Reflects a per-barrel decrease of $2.58 and $3.27 from derivative activities and the North Sea fixed-price sales contract for the 2011 third quarter and nine-month period, respectively, and a decrease of $.20 and $.37 from derivative activities for the comparative 2010 periods.

Crude Oil Revenues Crude oil revenues for the first nine months of 2011 totaled $9.4 billion, nearly $2.9 billion higher than the comparative 2010 period, the result of a 37-percent increase in average realized prices and a six-percent increase in worldwide production. Crude oil accounted for 75 percent of oil and gas production revenues and 45 percent of worldwide production, compared with 75 percent and 50 percent, respectively, in the 2010 period. Higher realized prices added $2.4 billion to the increase in revenues, while higher production volumes contributed an additional $499 million.

Net cash provided by operating activities for the first nine months of 2011 totaled $7.2 billion, up $2.4 billion from the first nine months of 2010. The increase reflects the impact of higher oil and gas revenues (up $3.8 billion), with higher commodity prices contributing $2.6 billion, and a 17-percent increase in daily equivalent production adding another $1.2 billion. This increase was partially offset by higher income tax payments in the first nine months of 2011 as compared to the 2010 period.

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