Apache's Third-Quarter Production Exceeds 600,000 boe Per Day

HOUSTON, Oct 29, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- Apache Corporation (NYSE, Nasdaq: APA) today reported that for the first time average worldwide production surpassed 600,000 barrels of oil equivalent (boe) per day during the third quarter, increasing 3.4 percent from the second quarter and 19 percent from the prior-year period.

"Apache's regional growth drivers put the company on track for record production and solid financial results in 2009, and we will enter 2010 with strong momentum, including two development projects in Australia that should add 40,000 barrels of oil per day to worldwide output when they commence operations in the first half," said G. Steven Farris, chairman and chief executive officer.

The company produced 607,118 boe per day in the third quarter. Liquid hydrocarbons production averaged 297,997 barrels per day, up 2 percent from the second quarter. Gas production averaged 1.85 billion cubic feet per day, up 5 percent from the second quarter.

Apache reported net income of $441 million, or $1.30 per diluted common share, compared with $1.2 billion, or $3.52 per share, in the prior-year period. Third-quarter cash from operations before changes in operating assets and liabilities* totaled $1.3 billion, compared with $2.1 billion in the prior-year period.

Apache's third-quarter adjusted earnings,* which exclude certain items that impact the comparability of operating results, totaled $534 million, or $1.58 per share, compared to adjusted earnings of $1.1 billion, or $3.19 per share, in the prior-year period.

Apache had approximately $1.4 billion in cash at the end of the third quarter. Debt was 24.7 percent of total capitalization.

Third-quarter operational highlights included:

-- The Egypt Region achieved a new record for gross operated production of
290,452 boe per day, up 6 percent from the second quarter and 27 percent
from the prior-year period, driven by increased gas output from two new
processing trains at the Salam Gas Plant and increased oil production
from the Faghur Basin in the Khalda Offset Concession. Net production
was down slightly because higher oil prices and lower capital spending
reduced cost-recovery barrels under the terms of production-sharing
contracts.
-- In Australia, net gas production averaged a record 225 million cubic
feet (MMcf) per day.
-- At the Forties Field in the North Sea, record net production of 71,472
boe per day during the month of July contributed to the second-best
quarter since Apache took over operations in 2003. Third-quarter oil
output increased 13 percent from the second quarter to 67,288 barrels of
oil per day on strong drilling results and increased field efficiency.

-- The deepwater Geauxpher Field at Garden Banks Block 462 in the Gulf of
Mexico produced 98 MMcf per day during the third quarter; Apache's net
was 39 MMcf per day.





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