First-Quarter 2014 Financial Supplement - Apache Corporation

2014 1st Quarter

FINANCIAL SUPPLEMENT & Non-GAAP Reconciliations

Apache Corporation Table of Contents NOTICE TO INVESTORS .................................................................................................................

1

FINANCIALS AND SCHEDULES Statement of Consolidated Operations ........................................................................................... Production Information .................................................................................................................. Supplemental Production Information ........................................................................................... Price Information ............................................................................................................................ Supplemental Financial Information .............................................................................................. Summary of Capital Costs Incurred ............................................................................................... Summary Balance Sheet Information ............................................................................................

2 3 4 6 7 9 10

NON-GAAP RECONCILIATIONS Adjusted Earnings ........................................................................................................................... Cash From Operations ..................................................................................................................... Pre-tax and Cash Margins ...............................................................................................................

11 12 13

NOTICE TO INVESTORS This earnings report supplement contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended and, whenever possible, are identified by use of the words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and similar references to future periods. Any matters that are not historical facts are forward-looking and, accordingly, involve estimates, assumptions, risks and uncertainties, including, without limitation, our assumptions about the market prices of oil, natural gas, NGLs and other products or services, our commodity hedging arrangements, the supply and demand for oil, natural gas, NGLs and other products or services, production and reserve levels, drilling risks, economic and competitive conditions, the availability of capital resources, capital expenditure and other contractual obligations, and other factors discussed in our most recently filed Annual Report on Form 10-K, recent Quarterly Reports on Form 10-Q and recent Current Reports on Form 8-K, and amendments thereto, available 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. Unless otherwise required by law, we assume no duty to update these statements as of any future date. 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 release, such as resources, potential resources, reserves potential 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, 2013, available from Apache at www.apachecorp.com or 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 provided in this supplement includes financial measurements that are not required by, or presented in accordance with, generally accepted accounting principles (GAAP), including these measures: adjusted earnings, pre-tax margin, and cash from operations. These non-GAAP measures should not be considered as alternatives to GAAP measures, such as net income or cash from operating activities, and may be calculated differently from, and therefore may not be comparable to, similarly titled measures used at other companies. Reconciliation to the most directly comparable GAAP financial measure has been provided. None of the information contained in this document has been audited by any independent auditor. This supplemental document is prepared as a convenience for securities analysts and investors and may be useful as a reference tool. Apache intends to continue to publish this supplement in conjunction with our quarterly earnings release, but may elect to modify the format or discontinue publication at any time, without notice to securities analysts or investors.

1

APACHE CORPORATION STATEMENT OF CONSOLIDATED OPERATIONS (in millions, except per share data) 1Q14

4Q13

1Q13

REVENUES AND OTHER: Oil revenues ....................................................................................................................................................................................................................................................... $ 2,815 $ 2,842 $ 3,192 Gas revenues ...................................................................................................................................................................................................................................................... 646 579 681 NGL revenues .................................................................................................................................................................................................................................................... 186 179 148 Oil and gas production revenues .............................................................................................................................................................................................................................. 3,647 3,600 4,021 Derivative instrument gains (losses), net ................................................................................................................................................................................................................. (20) (124) (100) Other ........................................................................................................................................................................................................................................................................ 48 (30) 25 3,675 3,446 3,946

OPERATING EXPENSES: Depreciation, depletion and amortization: Oil and gas property and equipment Recurring ....................................................................................................................................................................................................................................................... 1,109 1,155 1,210 Additional ...................................................................................................................................................................................................................................................... 368 Other assets ........................................................................................................................................................................................................................................................ 97 110 102 Asset retirement obligation accretion ....................................................................................................................................................................................................................... 44 46 63 Lease operating expenses......................................................................................................................................................................................................................................... 597 589 722 Gathering and transportation .................................................................................................................................................................................................................................... 70 56 73 Taxes other than income .......................................................................................................................................................................................................................................... 181 212 229 General and administrative ...................................................................................................................................................................................................................................... 119 123 112 Acquisitions, divestitures & transition ..................................................................................................................................................................................................................... 2 33 Financing costs, net ................................................................................................................................................................................................................................................. 27 19 55 2,246

2,711

2,566

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES ............................................................................................................................................................. 1,429 735 1,380 Current income tax provision................................................................................................................................................................................................................................... 416 473 497 Deferred income tax provision ................................................................................................................................................................................................................................. 162 33 105 INCOME FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST ............................................................................................................................ 851 229 778 Income (loss) from discontinued operations, net of tax............................................................................................................................................................................................ (517) 1 (61) INCOME INCLUDING NONCONTROLLING INTEREST ........................................................................................................................................................................................... 334 230 717 Preferred stock dividends......................................................................................................................................................................................................................................... 19 Net income attributable to noncontrolling interest ................................................................................................................................................................................................... 98 56 NET INCOME ATTRIBUTABLE TO COMMON STOCK ............................................................................................................................................................................................ $ 236 $ 174 $ 698

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS Net income from continuing operations attributable to common shareholders ........................................................................................................................................................ 753 173 759 Net income (loss) from discontinued operations ...................................................................................................................................................................................................... (517) 1 (61) Net income attributable to common shareholders .................................................................................................................................................................................................... $ 236 $ 174 $ 698

BASIC NET INCOME (LOSS) PER COMMON SHARE: Basic net income from continuing operations per share ........................................................................................................................................................................................... $ 1.92 $ 0.43 $ 1.94 Basic net income (loss) from discontinued operations per share .............................................................................................................................................................................. (1.32) 0.01 (0.16) Basic net income per share ...................................................................................................................................................................................................................................... $ 0.60 $ 0.44 $ 1.78

DILUTED NET INCOME (LOSS) PER COMMON SHARE: Diluted net income from continuing operations per share ........................................................................................................................................................................................ $ 1.90 $ 0.43 $ 1.91 Diluted net income (loss) from discontinued operations per share ........................................................................................................................................................................... (1.30) (0.15) Diluted net income per share ................................................................................................................................................................................................................................... $ 0.60 $ 0.43 $ 1.76

WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: Basic ........................................................................................................................................................................................................................................................................ 394 399 392 Diluted ..................................................................................................................................................................................................................................................................... 396 401 408

DIVIDENDS DECLARED PER COMMON SHARE...................................................................................................................................................................................................... $ 0.25 $ 0.20 $ 0.20

2

APACHE CORPORATION PRODUCTION INFORMATION

1Q14 4Q13 1Q13 Oil Volume – b/d: Central ...................................................................................................................................................................................................................................................... 21,686 22,939 20,526 Permian .................................................................................................................................................................................................................................................... 88,327 77,703 67,900 Gulf of Mexico ......................................................................................................................................................................................................................................... 6,266 6,530 7,235 Gulf Coast ................................................................................................................................................................................................................................................ 10,975 10,397 9,977 GOM Shelf ............................................................................................................................................................................................................................................... 697 (27) 43,625 United States....................................................................................................................................................................................................................................... 127,951 117,542 149,263 Canada ...................................................................................................................................................................................................................................................... 17,589 16,570 17,176 North America .................................................................................................................................................................................................................................... 145,540 134,112 166,439 Egypt(1) ..................................................................................................................................................................................................................................................... 88,093 89,654 91,315 Australia ................................................................................................................................................................................................................................................... 16,825 16,760 20,001 North Sea.................................................................................................................................................................................................................................................. 59,092 64,996 68,462 International(1)..................................................................................................................................................................................................................................... 164,010 171,410 179,778 Total(1) .......................................................................................................................................................................................................................................... 309,550 305,522 346,217 Natural Gas Volume – Mcf/d: Central ...................................................................................................................................................................................................................................................... 260,298 264,786 277,025 Permian .................................................................................................................................................................................................................................................... 215,860 191,371 185,713 Gulf of Mexico ......................................................................................................................................................................................................................................... 16,123 11,378 31,136 Gulf Coast ................................................................................................................................................................................................................................................ 99,242 104,300 105,412 GOM Shelf ............................................................................................................................................................................................................................................... 1,162 11,167 254,405 United States....................................................................................................................................................................................................................................... 592,685 583,002 853,691 Canada ...................................................................................................................................................................................................................................................... 377,712 421,409 519,175 North America .................................................................................................................................................................................................................................... 970,397 1,004,411 1,372,866 Egypt(1) ..................................................................................................................................................................................................................................................... 377,357 352,616 365,612 Australia ................................................................................................................................................................................................................................................... 215,792 254,853 214,395 North Sea.................................................................................................................................................................................................................................................. 45,071 53,491 55,032 (1) International ..................................................................................................................................................................................................................................... 638,220 660,960 635,039 Total(1) .......................................................................................................................................................................................................................................... 1,608,617 1,665,371 2,007,905 Natural Gas Liquids (NGL) Volume – b/d: Central ...................................................................................................................................................................................................................................................... 24,455 26,083 19,517 Permian .................................................................................................................................................................................................................................................... 25,260 24,115 20,583 Gulf of Mexico ......................................................................................................................................................................................................................................... 828 740 887 Gulf Coast ................................................................................................................................................................................................................................................ 2,423 2,640 2,313 GOM Shelf ............................................................................................................................................................................................................................................... 92 824 5,999 United States....................................................................................................................................................................................................................................... 53,058 54,402 49,299 Canada ...................................................................................................................................................................................................................................................... 7,769 6,395 6,663 North America .................................................................................................................................................................................................................................... 60,827 60,797 55,962 (1) Egypt ..................................................................................................................................................................................................................................................... 233 North Sea.................................................................................................................................................................................................................................................. 1,091 1,301 1,494 International(1)..................................................................................................................................................................................................................................... 1,324 1,301 1,494 Total(1) .......................................................................................................................................................................................................................................... 62,151 62,098 57,456 BOE per day Central ...................................................................................................................................................................................................................................................... 89,524 93,153 86,215 Permian .................................................................................................................................................................................................................................................... 149,564 133,713 119,435 Gulf of Mexico ......................................................................................................................................................................................................................................... 9,781 9,167 13,311 Gulf Coast ................................................................................................................................................................................................................................................ 29,939 30,421 29,859 GOM Shelf ............................................................................................................................................................................................................................................... 982 2,658 92,024 United States....................................................................................................................................................................................................................................... 279,790 269,112 340,844 Canada ...................................................................................................................................................................................................................................................... 88,310 93,199 110,368 North America .................................................................................................................................................................................................................................... 368,100 362,311 451,212 Egypt(1) ..................................................................................................................................................................................................................................................... 151,219 148,423 152,250 Australia ................................................................................................................................................................................................................................................... 52,790 59,236 55,734 North Sea.................................................................................................................................................................................................................................................. 67,695 75,212 79,128 International(1)..................................................................................................................................................................................................................................... 271,704 282,871 287,112 Total(1) .......................................................................................................................................................................................................................................... 639,804 645,182 738,324

Total excluding noncontrolling interest ........................................................................................................................................................................................ 589,860 618,755 738,324

MBOE(1) ........................................................................................................................................................................................................................................................ 57,582 59,357 66,449 MBOE excluding noncontrolling interest ...................................................................................................................................................................................................... 53,087 56,926 66,449

Discontinued Operations - Argentina Oil (b/d) .................................................................................................................................................................................................................................................... 6,885 9,276 9,297 Gas (mcf/d)............................................................................................................................................................................................................................................... 141,352 190,799 188,259 NGL (b/d) ................................................................................................................................................................................................................................................. 1,287 1,653 2,822 BOE/d....................................................................................................................................................................................................................................................... 31,731 42,729 43,495

Production % Oil ........................................................................................................................................................................................................................................................ 48.38% 47.35% 46.89% % Liquids ................................................................................................................................................................................................................................................. 58.10% 56.98% 54.67%

Revenue % Oil ........................................................................................................................................................................................................................................................ 77.18% 78.96% 79.37% % Liquids ................................................................................................................................................................................................................................................. 82.28% 83.93% 83.06%

(1) Includes production volume per day attributable to noncontrolling interest in Egypt of: Oil (b/d) .................................................................................................................................................................................................................................................... 29,066 15,521 Gas (mcf/d)............................................................................................................................................................................................................................................... 124,799 65,437 NGL (b/d) ................................................................................................................................................................................................................................................. 78 BOE/d....................................................................................................................................................................................................................................................... 49,944 26,427 -

3

APACHE CORPORATION SUPPLEMENTAL PRODUCTION INFORMATION

Oil Volume - Barrels/day 1Q14

4Q13

Inc (Dec)

Total Liquids Volume - Barrels/day %

1Q14

4Q13

Inc (Dec)

Natural Gas Volume - Mcf/day %

1Q14

4Q13

Inc (Dec)

BOE per day %

Central ................................................................................................................................................................................................................................................................................................................................. 21,686 22,939 (1,253) -5% 46,141 49,022 (2,881) -6% 260,298 264,786 (4,488) -2% Permian................................................................................................................................................................................................................................................................................................................................ 88,327 77,703 10,624 14% 113,587 101,818 11,769 12% 215,860 191,371 24,489 13% Gulf Coast............................................................................................................................................................................................................................................................................................................................ 10,975 10,397 578 6% 13,398 13,037 361 3% 99,242 104,300 (5,058) -5%

1Q14

4Q13

Inc (Dec)

%

89,524 149,564 29,939

93,153 133,713 30,421

(3,629) 15,851 (482)

-4% 12% -2%

Canada ................................................................................................................................................................................................................................................................................................................................. 17,589 16,570 1,019 6% 25,358 22,965 2,393 10% 377,712 421,409 (43,697) -10% 88,310 N.A. Onshore....................................................................................................................................................................................................................................................................................................................... 138,577 127,609 10,968 9% 198,484 186,842 11,642 6% 953,112 981,866 (28,754) -3% 357,337

93,199 350,486

(4,889) 6,851

-5% 2%

Gulf of Mexico .................................................................................................................................................................................................................................................................................................................... 6,266 6,530 (264) -4% 7,094 7,270 (176) -2% 16,123 11,378 4,745 42% 9,781 GOM Shelf .......................................................................................................................................................................................................................................................................................................................... 697 (27) 724 NM 789 797 (8) -1% 1,162 11,167 (10,005) -90% 982 ............................................................................................................................................................................................................................................................................................................................................ ............................................................................................................................................................................................................................................................................................................................................. 145,540 134,112 11,428 9% 206,367 194,909 11,458 6% 970,397 1,004,411 (34,014) -3% 368,100 North America .....................................................................................................................................................................................................................................................................................................................

9,167 2,658 362,311

614 (1,676) 5,789

7% -63% 2%

North Sea ............................................................................................................................................................................................................................................................................................................................. 59,092 64,996 (5,904) -9% 60,183 66,297 (6,114) -9% 45,071 53,491 (8,420) -16% Australia .............................................................................................................................................................................................................................................................................................................................. 16,825 16,760 65 0% 16,825 16,760 65 0% 215,792 254,853 (39,061) -15% Egypt ................................................................................................................................................................................................................................................................................................................................... 88,093 89,654 (1,561) -2% 88,326 89,654 (1,328) -1% 377,357 352,616 24,741 7%

67,695 52,790 151,219

75,212 59,236 148,423

(7,517) (6,446) 2,796

-10% -11% 2%

International ........................................................................................................................................................................................................................................................................................................................ 164,010 171,410 (7,400) -4% 165,334 172,711 (7,377) -4% 638,220 660,960 (22,740) -3% 271,704 ............................................................................................................................................................................................................................................................................................................................................. ............................................................................................................................................................................................................................................................................................................................................ ............................................................................................................................................................................................................................................................................................................................................ Total .................................................................................................................................................................................................................................................................................................................................... 309,550 305,522 4,028 1% 371,701 367,620 4,081 1% 1,608,617 1,665,371 (56,754) -3% 639,804 ............................................................................................................................................................................................................................................................................................................................................ ............................................................................................................................................................................................................................................................................................................................................. ............................................................................................................................................................................................................................................................................................................................................ ............................................................................................................................................................................................................................................................................................................................................ Egypt - Noncontrolling Interest ............................................................................................................................................................................................................................................................................................ 29,066 15,521 13,545 87% 29,144 15,521 13,623 88% 124,799 65,437 59,362 91% 49,944

282,871 645,182

(11,167) (5,378)

-4% -1%

26,427

23,517

89%

Total Excluding Noncontrolling Interest .............................................................................................................................................................................................................................................................................. 280,484 290,001 (9,517) -3% 342,557 352,099 (9,542) -3% 1,483,818 1,599,934 (116,116) -7% 589,860

618,755

(28,895)

-5%

Discontinued Operations Argentina ............................................................................................................................................................................................................................................................................................................................. 6,885 9,276 (2,391) -26% 8,172 10,929 (2,757) -25% 141,352 190,799 (49,447) -26% 31,731

42,729

(10,998)

-26%

352,841 151,219

357,098 148,423

(4,257) 2,796

-1% 2%

% of Gross ........................................................................................................................................................................................................................................................................................................................... 44.4% 43.9% 44.3% 43.9% 41.0% 38.4% 42.9% Egypt Net Production Without Tax ...................................................................................................................................................................................................................................................................................... 65,510 65,808 (298) 0% 65,696 65,808 (112) 0% 287,552 270,492 17,060 6% 113,621

41.6% 110,890

2,731

2%

% of Gross ........................................................................................................................................................................................................................................................................................................................... 33.0% 32.2% 33.0% 32.2% 31.2% 29.5% 32.2%

31.1%

Egypt Daily Production Breakdown Egypt Gross Production ....................................................................................................................................................................................................................................................................................................... 198,619 204,089 (5,470) -3% 199,268 204,089 (4,821) -2% 921,440 918,056 3,384 0% Egypt Net Production With Tax ........................................................................................................................................................................................................................................................................................... 88,093 89,654 (1,561) -2% 88,326 89,654 (1,328) -1% 377,357 352,616 24,741 7%

4

APACHE CORPORATION SUPPLEMENTAL PRODUCTION INFORMATION

Oil Volume - Barrels/day 1Q14

1Q13

Inc (Dec)

Total Liquids Volume - Barrels/day %

1Q14

1Q13

Inc (Dec)

Natural Gas Volume - Mcf/day %

1Q14

1Q13

Inc (Dec)

BOE per day %

Central ................................................................................................................................................................................................................................................................................................................................. 21,686 20,526 1,160 6% 46,141 40,043 6,098 15% 260,298 277,025 (16,727) -6% Permian................................................................................................................................................................................................................................................................................................................................ 88,327 67,900 20,427 30% 113,587 88,483 25,104 28% 215,860 185,713 30,147 16% Gulf Coast............................................................................................................................................................................................................................................................................................................................ 10,975 9,977 998 10% 13,398 12,290 1,108 9% 99,242 105,412 (6,170) -6%

1Q14

1Q13

Inc (Dec)

%

89,524 149,564 29,939

86,215 119,435 29,859

3,309 30,129 80

4% 25% 0%

Canada ................................................................................................................................................................................................................................................................................................................................. 17,589 17,176 413 2% 25,358 23,839 1,519 6% 377,712 519,175 (141,463) -27% 88,310 N.A. Onshore....................................................................................................................................................................................................................................................................................................................... 138,577 115,579 22,998 20% 198,484 164,655 33,829 21% 953,112 1,087,325 (134,213) -12% 357,337

110,368 345,877

(22,058) 11,460

-20% 3%

Gulf of Mexico .................................................................................................................................................................................................................................................................................................................... 6,266 7,235 (969) -13% 7,094 8,122 (1,028) -13% 16,123 31,136 (15,013) -48% 9,781 GOM Shelf .......................................................................................................................................................................................................................................................................................................................... 697 43,625 (42,928) -98% 789 49,624 (48,835) -98% 1,162 254,405 (253,243) -100% 982 ............................................................................................................................................................................................................................................................................................................................................ ............................................................................................................................................................................................................................................................................................................................................ 145,540 166,439 (20,899) -13% 206,367 222,401 (16,034) -7% 970,397 1,372,866 (402,469) -29% 368,100 North America .....................................................................................................................................................................................................................................................................................................................

13,311 92,024 451,212

(3,530) (91,042) (83,112)

-27% -99% -18%

North Sea ............................................................................................................................................................................................................................................................................................................................. 59,092 68,462 (9,370) -14% 60,183 69,956 (9,773) -14% 45,071 55,032 (9,961) -18% Australia .............................................................................................................................................................................................................................................................................................................................. 16,825 20,001 (3,176) -16% 16,825 20,001 (3,176) -16% 215,792 214,395 1,397 1% Egypt ................................................................................................................................................................................................................................................................................................................................... 88,093 91,315 (3,222) -4% 88,326 91,315 (2,989) -3% 377,357 365,612 11,745 3%

67,695 52,790 151,219

79,128 55,734 152,250

(11,433) (2,944) (1,031)

-14% -5% -1%

International ........................................................................................................................................................................................................................................................................................................................ 164,010 179,778 (15,768) -9% 165,334 181,272 (15,938) -9% 638,220 635,039 3,181 1% 271,704 ............................................................................................................................................................................................................................................................................................................................................. ............................................................................................................................................................................................................................................................................................................................................ Total .................................................................................................................................................................................................................................................................................................................................... 309,550 346,217 (36,667) -11% 371,701 403,673 (31,972) -8% 1,608,617 2,007,905 (399,288) -20% 639,804 ............................................................................................................................................................................................................................................................................................................................................. ............................................................................................................................................................................................................................................................................................................................................ ............................................................................................................................................................................................................................................................................................................................................ Egypt - Noncontrolling interest ............................................................................................................................................................................................................................................................................................ 29,066 29,066 NM 29,144 29,144 NM 124,799 124,799 NM 49,944 Total Excluding Noncontrolling Interest .............................................................................................................................................................................................................................................................................. 280,484 346,217 (65,733) -19% 342,557 403,673 (61,116) -15% 1,483,818 2,007,905 (524,087) -26% 589,860

287,112 738,324

(15,408) (98,520)

-5% -13%

738,324

49,944 (148,464)

NM -20%

43,495

(11,764)

-27%

Discontinued Operations Argentina ............................................................................................................................................................................................................................................................................................................................. 6,885 9,297 (2,412) -26% 8,172 12,119 (3,947) -33% 141,352 188,259 (46,907) -25% 31,731 Egypt Daily Production Breakdown Egypt Gross Production ....................................................................................................................................................................................................................................................................................................... 198,619 199,174 (555) 0% 199,268 199,174 94 0% 921,440 914,635 6,805 1%

352,841

351,613

1,228

0%

Egypt Net Production With Tax ........................................................................................................................................................................................................................................................................................... 88,093 91,315 (3,222) -4% 88,326 91,315 (2,989) -3% 377,357 365,612 11,745 3% 151,219 % of Gross ........................................................................................................................................................................................................................................................................................................................... 44.4% 45.8% 44.3% 45.8% 41.0% 40.0% 42.9%

152,250 43.3%

(1,031)

-1%

Egypt Net Production Without Tax ...................................................................................................................................................................................................................................................................................... 65,510 63,919 1,591 2% 65,696 63,919 1,777 3% 287,552 262,171 25,381 10% 113,621 % of Gross ........................................................................................................................................................................................................................................................................................................................... 33.0% 32.1% 33.0% 32.1% 31.2% 28.7% 32.2%

107,614 30.6%

6,007

6%

5

APACHE CORPORATION PRICE INFORMATION

1Q14 4Q13 1Q13 Avg. Oil $/bbl: Central..................................................................................................................................................................................... $ 93.72 $ 92.67 $ 88.15 Permian ................................................................................................................................................................................... 93.76 93.44 82.78 Gulf of Mexico........................................................................................................................................................................ 101.44 95.04 110.47 Gulf Coast ............................................................................................................................................................................... 101.87 97.06 111.03 GOM Shelf .............................................................................................................................................................................. NM NM 111.67 United States (1) ................................................................................................................................................................... 94.84 93.36 94.45 Canada .................................................................................................................................................................................... 88.19 79.44 82.33 North America (1) ................................................................................................................................................................ 94.03 91.64 93.20 Egypt ....................................................................................................................................................................................... 106.70 108.56 110.99 Australia (1) .............................................................................................................................................................................. 112.26 114.06 112.35 North Sea (1)............................................................................................................................................................................. 106.60 107.08 110.53 International (1) .................................................................................................................................................................... 107.24 108.54 110.97 Total (1) ........................................................................................................................................................................... 101.03 101.12 102.42

Avg. Gas $/Mcf: Central..................................................................................................................................................................................... $ 5.20 $ 3.62 $ 3.73 Permian ................................................................................................................................................................................... 4.78 3.80 3.77 Gulf of Mexico........................................................................................................................................................................ 5.23 3.61 3.40 Gulf Coast ............................................................................................................................................................................... 4.93 3.69 3.55 GOM Shelf .............................................................................................................................................................................. NM NM 3.54 United States (1) ................................................................................................................................................................... 4.98 3.77 3.75 Canada .................................................................................................................................................................................... 4.38 3.34 3.23 North America (1) ................................................................................................................................................................ 4.75 3.59 3.56 Egypt ....................................................................................................................................................................................... 3.02 3.00 2.95 Australia .................................................................................................................................................................................. 4.42 4.15 4.94 North Sea ................................................................................................................................................................................ 10.69 10.58 10.00 International ....................................................................................................................................................................... 4.03 4.06 4.23 Total (1) ........................................................................................................................................................................... 4.46 3.78 3.77

Avg. NGL $/bbl: Central..................................................................................................................................................................................... $ 30.39 $ 28.34 $ 26.54 Permian ................................................................................................................................................................................... 31.46 29.90 25.71 Gulf of Mexico........................................................................................................................................................................ 32.00 35.80 34.68 Gulf Coast ............................................................................................................................................................................... 35.90 36.75 33.69 GOM Shelf .............................................................................................................................................................................. NM NM 28.87 United States ...................................................................................................................................................................... 30.81 29.50 26.96 Canada .................................................................................................................................................................................... 42.09 36.82 32.15 North America .................................................................................................................................................................... 32.25 30.27 27.58 Egypt ....................................................................................................................................................................................... 64.34 North Sea ................................................................................................................................................................................ 79.84 80.43 71.16 International ....................................................................................................................................................................... 77.11 80.43 71.16 Total............................................................................................................................................................................... 33.20 31.32 28.71

Discontinued Operations - Argentina Oil price ($/Bbl) ...................................................................................................................................................................... $ 72.70 $ 83.22 $ 75.36 Gas price ($/Mcf) .................................................................................................................................................................... 3.04 3.11 3.18 NGL price ($/Bbl) ................................................................................................................................................................... 24.57 17.68 30.28 (1)

Prices reflect the impact of financial derivative hedging activities.

6

APACHE CORPORATION SUPPLEMENTAL FINANCIAL INFORMATION (in millions, except per unit data)

LEASE OPERATING EXPENSE 1Q14 vs. 4Q13

1Q14 vs. 1Q13 Cost Boe Cost Boe $ 4Q13 LOE ........................................................................................................................................................................................................................... 589 $ 9.92 1Q13 LOE ........................................................................................................................................ $ 722 $ 10.86 Workover costs .................................................................................................................................................................................................................... 15 0.26 Power and fuel ........................................................................................................................... 18 0.28 Labor and overhead costs .................................................................................................................................................................................................... 10 0.17 Labor and overhead costs .......................................................................................................... 14 0.21 Power and fuel ..................................................................................................................................................................................................................... 8 0.14 Transportation ............................................................................................................................ 7 0.10 Repairs and maintenance ..................................................................................................................................................................................................... (8) (0.14) Repairs and maintenance ........................................................................................................... 6 0.09 Divestitures(1) ....................................................................................................................................................................................................................... (7) (0.09) Chemicals .................................................................................................................................. 5 0.08 Other .................................................................................................................................................................................................................................... (10) (0.18) Divestitures(1) ............................................................................................................................. (199) (1.47) Other decreased production ................................................................................................................................................................................................. 0.29 Other .......................................................................................................................................... 24 0.37 $ Other increased production ........................................................................................................ (0.15) 1Q14 LOE ........................................................................................................................................................................................................................... 597 $ 10.37 1Q14 LOE ........................................................................................................................................ $ 597 $ 10.37 (1)

Per-unit impact of divestitures is shown net of associated production.

GENERAL AND ADMINISTRATIVE (G&A) EXPENSE 1Q14 vs. 4Q13

1Q14 vs. 1Q13 Cost Boe Cost Boe $ 4Q13 G&A .......................................................................................................................................................................................................................... 123 $ 2.06 1Q13 G&A ....................................................................................................................................... $ 112 $ 1.69 Decreased costs .................................................................................................................................................................................................................... (4) (0.07) Increased costs ........................................................................................................................... 7 0.09 Decreased production .......................................................................................................................................................................................................... 0.07 Decreased production ................................................................................................................ 0.28 $ 1Q14 G&A .......................................................................................................................................................................................................................... 119 $ 2.06 1Q14 G&A ....................................................................................................................................... $ 119 $ 2.06

Tables above include costs and BOE’s attributable to noncontrolling interest in Egypt but excluding Argentina discontinued operations.

7

APACHE CORPORATION SUPPLEMENTAL FINANCIAL INFORMATION (in millions, except per unit data)

TAXES OTHER THAN INCOME 1Q14

4Q13

1Q13

U.K. PRT ............................................................................................................................................................................................................................. $ 63 $ 109 $ 135 Severance taxes .................................................................................................................................................................................................................... 74 66 52 Ad valorem taxes ................................................................................................................................................................................................................. 40 25 33 Other .................................................................................................................................................................................................................................... 4 12 9 Total Taxes other than income .................................................................................................................................................................................... $ 181 $ 212 $ 229

Total Taxes other than income per boe ....................................................................................................................................................................... $ 3.15 $ 3.57 $ 3.44 GATHERING & TRANSPORTATION 1Q14

4Q13

1Q13

Canada ................................................................................................................................................................................................................................. $ 34 $ 36 $ 40 U.S. ...................................................................................................................................................................................................................................... 22 17 20 Egypt .................................................................................................................................................................................................................................... 10 11 10 North Sea ............................................................................................................................................................................................................................. 4 (8) 3 Total Gathering & Transportation............................................................................................................................................................................... $ 70 $ 56 $ 73

Total Gathering & Transportation per boe .................................................................................................................................................................. $ 1.19 $ 0.97 $ 1.10 FINANCING COSTS, NET 1Q14

4Q13

1Q13

Interest expense ................................................................................................................................................................................................................... $ 124 $ 131 $ 146 Amortization of deferred loan costs ..................................................................................................................................................................................... 2 2 2 Capitalized interest .............................................................................................................................................................................................................. (95) (95) (90) Gain on debt extinguishment ............................................................................................................................................................................................... (16) Interest income..................................................................................................................................................................................................................... (4) (3) (3) Financing costs, net ..................................................................................................................................................................................................... $ 27 $ 19 $ 55

Financing costs, net per boe ........................................................................................................................................................................................ $ 0.48 $ 0.33 $ 0.82 Tables above include costs and BOE’s attributable to noncontrolling interest in Egypt but excluding Argentina discontinued operations.

8

APACHE CORPORATION SUMMARY OF CAPITAL COSTS INCURRED (in millions)

1Q14

4Q13

1Q13

Exploration & Development Central ......................................................................................................................................................................................................... $ 339 $ 362 $ 360 Permian........................................................................................................................................................................................................ 784 734 533 Gulf of Mexico ............................................................................................................................................................................................ 124 130 50 GOM Shelf .................................................................................................................................................................................................. 17 177 Gulf Coast ................................................................................................................................................................................................... 94 60 67 New Ventures - U.S..................................................................................................................................................................................... 8 (1) 82 Total U.S. ............................................................................................................................................................................................. 1,349 1,302 1,269 Canada ......................................................................................................................................................................................................... 269 218 258 Total North America ............................................................................................................................................................................ 1,618 1,520 1,527 Egypt(1) ........................................................................................................................................................................................................ 320 353 262 Australia ...................................................................................................................................................................................................... 261 268 225 North Sea ..................................................................................................................................................................................................... 227 227 177 Argentina ..................................................................................................................................................................................................... 12 37 33 New Ventures - International ...................................................................................................................................................................... 1 (6) 5 Total Exploration & Development (1) ................................................................................................................................................... $ 2,439 $ 2,399 $ 2,229

Plugging & Abandonment Plugging & Abandonment - Cash ................................................................................................................................................................ $ 25 $ 45 $ 163 Asset Retirement Cost (ARC) - Accrual ..................................................................................................................................................... 3 45 (29) Asset Retirement Cost (ARC) - Acquired ................................................................................................................................................... 53 Total Plugging & Abandonment .......................................................................................................................................................... $ 28 $ 90 $ 187

Capitalized Interest(2) .......................................................................................................................................................................................... $ 86 $ 88 $ 86

Acquisitions ........................................................................................................................................................................................................ $ 2 $ 54 $ 227

Costs Incurred (3) ................................................................................................................................................................................................. $ 2,555 $ 2,631 $ 2,729

Gathering, Transmission & Processing Facilities U.S. .............................................................................................................................................................................................................. $ 45 $ 49 $ 18 Canada ......................................................................................................................................................................................................... 102 24 30 Egypt(1) ........................................................................................................................................................................................................ 15 25 19 Australia ...................................................................................................................................................................................................... 168 211 180 Argentina ..................................................................................................................................................................................................... 1 4 2 North Sea ..................................................................................................................................................................................................... 1 1 Acquisitions ................................................................................................................................................................................................. 5 83 Capitalized Interest ...................................................................................................................................................................................... 12 10 7 Total Gathering, Transmission & Processing Facilities(1) .................................................................................................................... $ 344 $ 329 $ 339

Total Oil & Gas Capital ...................................................................................................................................................................................... $ 2,899 $ 2,960 $ 3,068 (1)

Includes capital costs attributable to noncontrolling interest in Egypt.

(2)

Capitalized interest includes Argentina discontinued operations of $3 million in each of the above quarters.

(3)

Includes capitalized G&A expense of $91 million, $81 million, and $105 million for 1Q14, 4Q13, and 1Q13, respectively.

9

APACHE CORPORATION SUMMARY BALANCE SHEET INFORMATION (in millions)

1Q14

4Q13

3Q13

2Q13

1Q13

Cash and cash equivalents .......................................................................................................................................................................................... $ 1,643 $ 1,906 $ 1,251 $ 184 $ 248 Other current assets ..................................................................................................................................................................................................... 3,820 4,460 4,765 4,574 4,600 Property and equipment, net ....................................................................................................................................................................................... 52,752 52,421 51,462 55,821 54,289 Goodwill ..................................................................................................................................................................................................................... 1,369 1,369 1,369 1,369 1,369 Other assets ................................................................................................................................................................................................................. 1,537 1,481 1,392 1,402 1,286 Total assets .......................................................................................................................................................................................................... $ 61,121 $ 61,637 $ 60,239 $ 63,350 $ 61,792

Short-term debt ........................................................................................................................................................................................................... $ - $ 53 $ 57 $ 478 $ 994 Other current liabilities ............................................................................................................................................................................................... 4,356 4,647 4,466 4,680 4,568 Long-term debt ........................................................................................................................................................................................................... 9,673 9,672 10,868 12,297 11,485 Deferred credits and other noncurrent liabilities ......................................................................................................................................................... 11,915 11,872 11,867 13,174 12,758 Apache shareholders' equity ....................................................................................................................................................................................... 33,082 33,396 32,981 32,721 31,987 Noncontrolling interest ............................................................................................................................................................................................... 2,095 1,997 Total liabilities and equity ................................................................................................................................................................................... $ 61,121 $ 61,637 $ 60,239 $ 63,350 $ 61,792

Common shares outstanding at end of period ............................................................................................................................................................. 390 396 404 389 392

% of total debt-to-capitalization .................................................................................................................................................................................. 22% 22% 25% 28% 28%

10

NON-GAAP RECONCILIATIONS

APACHE CORPORATION ADJUSTED EARNINGS (in millions, except per share data)

Reconciliation of income attributable to common stock to adjusted earnings: Our press release discusses Apache’s adjusted earnings. Adjusted earnings exclude certain items that management believes affect the comparability of operating results and are meaningful for the following reasons: 

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 above are the types of items management believes are frequently excluded by analysts when evaluating the operating trends and comparability of the company’s results.

1Q14

4Q13

1Q13

Income Attributable to Common Stock (GAAP) ..................................................................................................................................... $ 236 $ 174 $ 698

Adjustments: Argentina discontinued operations, net of tax ..................................................................................................................................... 517 (1) 61 Unrealized foreign currency fluctuation impact on deferred tax expense............................................................................................ 7 (25) (4) Acquisitions, divestitures & transition costs, net of tax ...................................................................................................................... 1 21 Oil & gas property write-downs, net of tax ......................................................................................................................................... 139 Deferred tax on distributed foreign earnings ....................................................................................................................................... 225 Deferred tax adjustments ..................................................................................................................................................................... (5) 23 11 Commodity derivative mark-to-market, net of tax .............................................................................................................................. (49) 54 31 Adjusted Earnings (Non-GAAP) ............................................................................................................................................................. $ 707 $ 610 $ 797

Net Income per Common Share – Diluted (GAAP) ................................................................................................................................. $ 0.60 $ 0.43 $ 1.76

Adjustments: Argentina discontinued operations, net of tax ..................................................................................................................................... 1.30 0.15 Unrealized foreign currency fluctuation impact on deferred tax expense............................................................................................ 0.02 (0.06) (0.01) Oil & gas property write-downs, net of tax ......................................................................................................................................... 0.35 Deferred tax on distributed foreign earnings ....................................................................................................................................... 0.56 Acquisitions, divestitures & transition costs, net of tax ...................................................................................................................... 0.05 Deferred tax adjustments ..................................................................................................................................................................... (0.01) 0.06 0.03 Commodity derivative mark-to-market, net of tax .............................................................................................................................. (0.13) 0.13 0.07 Adjusted Earnings Per Share – Diluted (Non-GAAP) ............................................................................................................................. $ 1.78 $ 1.52 $ 2.00

Total income tax provision (GAAP) ........................................................................................................................................................ $ 578 $ 506 $ 602 Tax impact on commodity derivative mark-to-market ........................................................................................................................ (27) 30 17 Unrealized foreign currency fluctuation impact on deferred tax expense ........................................................................................... (7) 25 4 Deferred tax adjustments ..................................................................................................................................................................... 5 (23) (11) Tax impact on acquisitions, divestitures & transition costs ................................................................................................................. 1 12 Tax effect of oil & gas property write-downs ..................................................................................................................................... 229 Deferred tax on distributed foreign earnings ....................................................................................................................................... (225) Total income tax provision, net of adjustments ....................................................................................................................................... $ 550 $ 554 $ 612

Effective Rate excluding Adjustments (Non-GAAP) .............................................................................................................................. 40.6% 45.4% 42.9%

11

NON-GAAP RECONCILIATIONS

APACHE CORPORATION CASH FROM OPERATIONS (in millions, except per share data)

Reconciliation of net cash provided by operating activities to cash from continuing operations before changes in operating assets and liabilities: Our press release discusses Apache’s cash from continuing 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 continuing 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 continuing operations before changes in operating assets and liabilities.

1Q14

4Q13

1Q13

Net cash provided by operating activities (GAAP)............................................................................................................................... $ 2,293 $ 2,477 $ 2,621 Less: Discontinued operations....................................................................................................................................................... (82) (28) (64) Net cash provided by operating activities excluding discontinued operations ................................................................................................................................................................. 2,211 2,449 2,557 Changes in operating assets and liabilities ............................................................................................................................................ 11 (408) (262)

Cash from continuing operations before changes in operating assets & liabilities.......................................................................................................................................................... $ 2,222 $ 2,041 $ 2,295

12

NON-GAAP RECONCILIATIONS

APACHE CORPORATION PRE-TAX AND CASH MARGINS (in millions, except per unit data) Reconciliation of Non-GAAP Margin Disclosure: Apache calculates both pre-tax and cash margins inclusive of amounts attributable to noncontrolling interest in Egypt and excluding Argentina discontinued operations. Management believes that a cash margin is more representative of the Company’s performance, as non-cash items (DD&A and Asset Retirement Obligation Accretion) distort the actual funds generated during the period. 1Q14 4Q13 (In millions)

Pre-Tax Margin 1Q14 4Q13 (Per BOE)

Cash Margin 1Q14 4Q13 (Per BOE)

REVENUES AND OTHER Oil and gas production revenues .............................................................................................................................................................................................................................. $ 3,647 $ 3,600 $ 63.33 $ 60.65 $ 63.33 $ 60.65 Realized derivative instrument gains (losses), net .................................................................................................................................................................................................... (96) (40) (1.66) (0.67) (1.66) (0.67) Unrealized derivative instrument gains (losses), net ................................................................................................................................................................................................ 76 (84) 1.31 (1.41) Other ....................................................................................................................................................................................................................................................................... 48 (30) 0.84 (0.51) 0.84 (0.51) $ 3,675 $ 3,446 $ 63.82 $ 58.06 $ 62.51 $ 59.47

COSTS AND EXPENSES Depreciation, depletion and amortization: Oil and gas property Recurring............................................................................................................................................................................................................................................... $ 1,109 $ 1,155 $ 19.26 $ 19.45 $ - $ Additional.............................................................................................................................................................................................................................................. 368 6.20 Other assets .................................................................................................................................................................................................................................................... 97 110 1.68 1.85 Asset retirement obligation accretion ....................................................................................................................................................................................................................... 44 46 0.77 0.77 Lease operating costs ............................................................................................................................................................................................................................................... 597 589 10.37 9.92 10.37 9.92 Gathering and transportation costs ........................................................................................................................................................................................................................... 70 56 1.19 0.97 1.19 0.97 Taxes other than income .......................................................................................................................................................................................................................................... 181 212 3.15 3.57 3.15 3.57 General and administrative ...................................................................................................................................................................................................................................... 119 123 2.06 2.06 2.06 2.06 Acquisitions, divestitures & transition ..................................................................................................................................................................................................................... 2 33 0.04 0.55 0.04 0.55 Financing costs, net ................................................................................................................................................................................................................................................. 27 19 0.48 0.33 0.48 0.33 $ 2,246 $ 2,711 $ 39.00 $ 45.67 $ 17.29 $ 17.40

$ 1,429 $ 735 INCOME BEFORE INCOME TAXES .........................................................................................................................................................................................................................

$ 24.82 $ 12.39 $ 45.22 $ 42.07 MARGINS .......................................................................................................................................................................................................................................................................

Barrels of equivalent production (MBOE) ............................................................................................................................................................................................................... 57,582 59,357 57,582 59,357 1Q14 1Q13 (In millions)

Pre-Tax Margin 1Q14 1Q13 (Per BOE)

Cash Margin 1Q14 1Q13 (Per BOE)

REVENUES AND OTHER Oil and gas production revenues .............................................................................................................................................................................................................................. $ 3,647 $ 4,021 $ 63.33 $ 60.51 $ 63.33 $ 60.51 Realized derivative instrument gains (losses), net .................................................................................................................................................................................................... (96) (52) (1.66) (0.79) (1.66) (0.79) Unrealized derivative instrument gains (losses), net ................................................................................................................................................................................................ 76 (48) 1.31 (0.71) Other ....................................................................................................................................................................................................................................................................... 48 25 0.84 0.37 0.84 0.37 $ 3,675 $ 3,946 $ 63.82 $ 59.38 $ 62.51 $ 60.09

COSTS AND EXPENSES Depreciation, depletion and amortization: Oil and gas property Recurring............................................................................................................................................................................................................................................... $ 1,109 $ 1,210 $ 19.26 $ 18.21 $ - $ Other assets .................................................................................................................................................................................................................................................... 97 102 1.68 1.54 Asset retirement obligation accretion ....................................................................................................................................................................................................................... 44 63 0.77 0.95 Lease operating costs ............................................................................................................................................................................................................................................... 597 722 10.37 10.86 10.37 10.86 Gathering and transportation costs ........................................................................................................................................................................................................................... 70 73 1.19 1.10 1.19 1.10 Taxes other than income .......................................................................................................................................................................................................................................... 181 229 3.15 3.44 3.15 3.44 General and administrative ...................................................................................................................................................................................................................................... 119 112 2.06 1.69 2.06 1.69 Acquisitions, divestitures & transition ..................................................................................................................................................................................................................... 2 0.04 0.04 Financing costs, net ................................................................................................................................................................................................................................................. 27 55 0.48 0.82 0.48 0.82 $ 2,246 $ 2,566 $ 39.00 $ 38.61 $ 17.29 $ 17.91

$ 1,429 $ 1,380 INCOME BEFORE INCOME TAXES .........................................................................................................................................................................................................................

$ 24.82 $ 20.77 $ 45.22 $ 42.18 MARGINS .......................................................................................................................................................................................................................................................................

Barrels of equivalent production (MBOE) ............................................................................................................................................................................................................... 57,582 66,449 57,582 66,449

13