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Last updated on April 17, 2014 at 21:23 EDT

Apache Achieves Record Fourth Quarter And 2012 Production; Fourth Quarter Production Averaged 800,000 BOEPD

February 14, 2013

HOUSTON, Feb. 14, 2013 /PRNewswire/ — Apache Corporation (NYSE, Nasdaq: APA) today reported record overall production for its fourth consecutive year, as well as record oil and liquids production. Average daily production during 2012 increased to 779,000 barrels of oil equivalent (boe) per day, up 5.4 percent compared with the prior year’s production, adjusted for dispositions. Oil and gas revenues were a record $16.9 billion, up from $16.8 billion in the prior year.

These results contributed to full-year 2012 earnings of $1.9 billion or $4.92 per diluted common share, compared with $4.5 billion or $11.47 per share in 2011. Excluding certain items that management believes affect the comparability of operating results, such as the impact of a ceiling test write-down due primarily to substantially weaker Canadian natural gas prices, Apache reported adjusted earnings* of $3.8 billion or $9.48 per share, compared with $4.7 billion or $11.83 per share in 2011. Cash from operations before changes in operating assets and liabilities* was $10.2 billion, sustaining the record level achieved the prior year even with lower average North American natural gas prices.

“Having deepened and strengthened our global portfolio of growth projects since 2010, we are accelerating our operational momentum,” said G. Steven Farris, chairman and chief executive officer. “Apache exited 2012 producing in excess of 800,000 boe per day, driven primarily by our North American oil production, which increased 12 percent during the year.

“We have an extensive pipeline of opportunities that will fuel our profitable growth for years to come. This includes more than 67,000 technically evaluated drilling locations in the onshore U.S. It also includes a robust group of world-class development projects throughout our global portfolio, including Wheatstone and Kitimat, our two liquefied natural gas projects with products indexed to crude oil prices.”

Apache has become the leading oil and gas driller in the Permian Basin, operating more rigs than any industry competitor. Apache also is among the most active oil and gas companies in the Central Region’s Anadarko Basin, as the company accelerates development of its horizontal drilling play inventory. Year-over-year production from these two regions increased 18 and 37 percent, respectively.

Earlier this month, a company subsidiary completed a transaction with Chevron Canada Ltd. to jointly build and operate the Kitimat LNG project, enhancing our efforts to move this project to sanction and monetize natural gas resources we discovered in the Horn River and Liard basins of northern British Columbia. The incremental resources targeted for monetization through Kitimat have the potential to triple Apache’s total proved reserves.

In fourth-quarter 2012 earnings totaled $649 million or $1.64 per diluted share, compared with $1.17 billion or $2.98 per share in the prior-year period. Adjusted earnings for the period were $907 million, or $2.27 per share, compared with $1.2 billion, or $2.94 per share in the same period for 2011. Production reached a new quarterly milestone, averaging 800,000 boe per day, and cash from operations totaled $2.77 billion, compared with $2.66 billion in the same period of the prior year.

Apache’s oil and natural gas liquids production was 51 percent of total volume in 2012 and contributed 81 percent of revenues reflecting the wide gap between global crude oil and North American natural gas prices.

During 2012 the company added 372 MMboe of reserves, or 131 percent of production, through discoveries and extensions and 73 MMboe through acquisitions for a reserve replacement rate of 156 percent, excluding revisions. Low prices throughout the year for Canadian natural gas resulted in a ceiling test write-down and were the primary driver of negative revisions totaling 299 MMboe. Apache ended the year with proved reserves of 2.9 billion boe, after producing 285 MMboe. The company invested $9.0 billion on exploration and development during the year.

Apache to webcast conference call

Apache Corporation will discuss its fiscal 2012 and fourth-quarter results at 1 p.m. Central time on Thursday, Feb. 14. The conference call will be webcast from Apache’s website www.apachecorp.com. The webcast replay will be archived on Apache’s website. The conference call will be available for delayed playback by telephone for one week beginning at approximately 4 p.m. on Feb. 14. To access the telephone playback, dial 855-859-2056 or 404-537-3406 for international calls. The conference access code is 84095210.

About Apache

Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom North Sea, Australia and Argentina. Apache posts announcements, operational updates, investor information and copies of all press releases on its website, www.apachecorp.com.

Forward-looking statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and similar references to future periods. These statements include, but are not limited to, statements about future growth plans, expectations, and objectives for Apache’s operations including statements about our drilling plans, planned wells, and Wheatstone and Kitimat LNG projects. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances, whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See “Risk Factors” in our 2011 Form 10-K and our subsequent filings with the Securities and Exchange Commission for a discussion of risk factors that affect our business. Any forward-looking statement made by us in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development, or otherwise, except as may be required by law.

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 uses certain terms in this release, such as “resources,” 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 Dec. 31, 2011, and amendments thereto, 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.

*Adjusted earnings and cash from operations before changes in operating assets and liabilities are non-GAAP measures. Please see reconciliations below. For supplemental and non-GAAP information, please go to http://www.apachecorp.com/financialinfo.

                                                      APACHE CORPORATION
                                             STATEMENT OF CONSOLIDATED OPERATIONS
                                             (In millions, except per share data)

                                                                          For the Quarter              For the Year
                                                                        Ended December 31,         Ended December 31,
                                                                        ------------------         ------------------
                                                                          2012               2011             2012              2011
                                                                          ----               ----             ----              ----

    REVENUES AND OTHER:
                                  Oil and gas production revenues       $4,393             $4,295          $16,947           $16,810
                                  Other                                     (2)                 2              131                78
                                                                           ---
                                                                         4,391              4,297           17,078            16,888
                                                                         -----              -----           ------            ------

    COSTS AND EXPENSES:
                                   Depreciation, depletion and
                                   amortization
                                      Recurring                          1,380              1,111            5,183             4,095
                                      Additional                            28                 63            1,926               109
                                   Asset retirement obligation
                                   accretion                                60                 40              232               154
                                  Lease operating expenses                 790                659            2,968             2,605
                                  Gathering and transportation              68                 75              303               296
                                  Taxes other than income                  235                236              862               899
                                  General and administrative               147                132              531               459
                                  Merger, acquisitions & transition          2                  5               31                20
                                  Financing costs, net                      40                 35              165               158
                                                                         2,750              2,356           12,201             8,795
                                                                         -----              -----           ------             -----

    INCOME BEFORE INCOME TAXES                                           1,641              1,941            4,877             8,093
                                  Current income tax provision             506                571            2,235             2,263
                                  Deferred income tax provision            467                181              641             1,246
                                                                           ---

    NET INCOME                                                             668              1,189            2,001             4,584
                                  Preferred stock dividends                 19                 19               76                76
                                                                           ---

    INCOME ATTRIBUTABLE TO COMMON
     STOCK                                                       $649              $1,170         $1,925              $4,508
                                                                 ====              ======         ======              ======

    NET INCOME PER COMMON SHARE:
                                  Basic                                  $1.66              $3.05            $4.95            $11.75
                                  Diluted                                $1.64              $2.98            $4.92            $11.47

    WEIGHTED-AVERAGE NUMBER OF
     COMMON
       SHARES OUTSTANDING:
                                  Basic                                    391                384              389               384
                                  Diluted                                  407                400              391               400

    DIVIDENDS DECLARED PER COMMON
     SHARE                                                      $0.17               $0.15          $0.68               $0.60

                                                                                                                                APACHE CORPORATION
                                                                                                                         SUMMARY OF CAPITAL COSTS INCURRED
                                                                                                                                   (In millions)

                                                                                          For the Quarter                                       For the Year
                                                                                         Ended December 31,                                  Ended December 31,
                                                                                         ------------------                                  ------------------
                                                                                                                  2012                                                2011                                               2012                                                      2011
                                                                                                                  ----                                                ----                                               ----                                                      ----
    CAPITAL EXPENDITURES:
                     Exploration &
                     Development Costs
                    United States                                    $1,543                                                $792                                              $5,151                                             $2,768
                    Canada                                              131                                                 208                                                 590                                                817
                                         North America                                                           1,674                                               1,000                                              5,741                                                     3,585
                                                                                                                 -----                                               -----                                              -----                                                     -----
                    Egypt                                               265                                                 222                                               1,074                                                896
                    Australia                                           355                                                 131                                                 873                                                576
                    North Sea                                           183                                                 205                                                 886                                                823
                    Argentina                                            67                                                 101                                                 289                                                346
                     New Ventures -
                     International                                       14                                                  12                                                  98                                                 61
                                         International                                                             884                                                 671                                              3,220                                                     2,702
                                                                                                                   ---                                                 ---                                              -----                                                     -----
                                          Worldwide Exploration &
                                          Development Costs                                                     $2,558                                              $1,671                                             $8,961                                                    $6,287
                                                                                                                ------                                              ------                                             ------                                                    ------

                     Gathering,
                     Transmission and
                     Processing
                     Facilities
                    United States                                       $18                                                 $18                                                 $75                                                $27
                    Canada                                               34                                                  35                                                 172                                                148
                    Egypt                                                18                                                  37                                                  33                                                111
                    Australia                                           103                                                  90                                                 441                                                345
                    Argentina                                             4                                                   5                                                  16                                                 12
                    North Sea                                             1                                                   -                                                   1                                                  -
                                          Total Gathering, Transmission and
                                          Processing                                                              $178                                                $185                                               $738                                                      $643
                                                                                                                  ----                                                ----                                               ----                                                      ----

                     Capitalized
                     Interest                                           $93                                                 $70                                                $334                                               $263
                                                                        ---

                     Capital
                     Expenditures,
                     excluding
                     Acquisitions                                    $2,829                                              $1,926                                             $10,033                                             $7,193
                                                                     ======

                    Acquisitions                                       $122                                              $2,696                                              $3,543                                             $3,189
                                                                       ====

                                                                                                                                APACHE CORPORATION
                                                                                                                         SUMMARY BALANCE SHEET INFORMATION
                                                                                                                                   (In millions)

                                                                                            December 31,                                        December 31,
                                                                                                                  2012                                                2011
                                                                                                                  ----                                                ----

                     Cash and Cash
                     Equivalents                                       $160                                                $295
                     Other Current
                     Assets                                           4,802                                               4,508
                     Property and
                     Equipment, net                                  53,280                                              45,448
                    Goodwill                                          1,289                                               1,114
                    Other Assets                                      1,206                                                 686
                    Total Assets                                    $60,737                                             $52,051
                                                                    =======

                    Short-Term Debt                                    $990                                                $431
                     Other Current
                     Liabilities                                      4,546                                               4,532
                    Long-Term Debt                                   11,355                                               6,785
                     Deferred Credits
                     and Other
                     Noncurrent
                     Liabilities                                     12,515                                              11,310
                     Shareholders'
                     Equity                                          31,331                                              28,993
                     Total Liabilities
                     and Shareholders'
                     Equity                                         $60,737                                             $52,051
                                                                    =======

                     Common shares
                     outstanding at end
                     of period                                          392                                                 384

                                                                                            APACHE CORPORATION
                                                                                          PRODUCTION INFORMATION

                                                                     For the Quarter                         For the Year
                                                                   Ended December 31,                     Ended December 31,
                                                                   ------------------                     ------------------
                                                                                     2012                                   2011                                   2012                                   2011
                                                                                     ----                                   ----                                   ----                                   ----

      OIL VOLUME - Barrels per day
                       Central                         21,026                                  7,323                                 14,151                                  6,788
                       Permian                         65,104                                 54,381                                 60,215                                 50,991
                       GOM Deepwater        8,355                                   6,507                                  6,848                                  6,022
                       GOM Shelf           44,752                                  47,780                                 42,873                                 46,031
                       GC Onshore          10,489                                  10,189                                 10,036                                  9,583
                        United
                        States            149,726                                 126,180                                134,123                                119,415
                       Canada                          17,377                                 14,882                                 15,830                                 14,252

                        North
                        America           167,103                                 141,062                                149,953                                133,667
                                          -------                                 -------                                -------                                -------
                       Egypt                          103,056                                103,908                                 99,756                                103,912
                       Australia                       26,483                                 38,169                                 28,884                                 38,228
                       North Sea           65,583                                  55,859                                 63,692                                 54,541
                       Argentina                        9,859                                  9,655                                  9,741                                  9,597

                        International     204,981                                 207,591                                202,073                                206,278
                                       Total          372,084                                348,653                                352,026                                339,945
                                                      =======                                =======                                =======                                =======

      NATURAL GAS VOLUME - Mcf per day
                       Central                        287,956                                193,722                                242,998                                213,447
                       Permian                        184,781                                178,766                                180,938                                173,188
                       GOM Deepwater       48,177                                  48,144                                 46,048                                 52,193
                       GOM Shelf          265,918                                 335,434                                291,356                                341,242
                       GC Onshore         103,722                                 106,505                                 92,759                                 84,672
                        United
                        States            890,554                                 862,571                                854,099                                864,742
                       Canada                         550,495                                631,122                                600,680                                632,550

                        North
                        America         1,441,049                               1,493,693                              1,454,779                              1,497,292
                                        ---------                               ---------                              ---------                              ---------
                       Egypt                          350,406                                355,091                                353,738                                365,418
                       Australia                      204,961                                189,852                                214,013                                185,079
                       North Sea           43,745                                   2,366                                 57,457                                  2,284
                       Argentina                      204,724                                221,523                                213,464                                212,311

                        International     803,836                                 768,832                                838,672                                765,092
                                       Total        2,244,885                              2,262,525                              2,293,451                              2,262,384
                                                    =========                              =========                              =========                              =========

      NGL VOLUME - Barrels per day
                       Central                         10,231                                  5,566                                  6,518                                  2,268
                       Permian                         21,997                                 12,256                                 17,966                                 11,799
                       GOM Deepwater        1,519                                     582                                  1,185                                    715
                       GOM Shelf            6,908                                   4,446                                  5,738                                  5,278
                       GC Onshore           2,229                                   2,556                                  2,120                                  2,051
                        United
                        States             42,884                                  25,406                                 33,527                                 22,111
                       Canada                           6,837                                  5,183                                  6,258                                  5,958

                        North
                        America            49,721                                  30,589                                 39,785                                 28,069
                                           ------                                  ------                                 ------                                 ------
                       Egypt                                -                                      -                                      -                                     49
                       North Sea            1,085                                       -                                  1,618                                      4
                       Argentina                        2,967                                  2,997                                  3,008                                  3,018

                        International       4,052                                   2,997                                  4,626                                  3,071
                                       Total           53,773                                 33,586                                 44,411                                 31,140
                                                       ======                                 ======                                 ======                                 ======

      BOE per day
                       Central                         79,250                                 45,176                                 61,169                                 44,630
                       Permian                        117,898                                 96,431                                108,338                                 91,655
                       GOM Deepwater       17,903                                  15,114                                 15,708                                 15,436
                       GOM Shelf           95,980                                 108,132                                 97,170                                108,183
                       GC Onshore          30,005                                  30,495                                 27,615                                 25,746
                        United
                        States            341,036                                 295,348                                310,000                                285,650
                       Canada                         115,963                                125,252                                122,201                                125,636

                        North
                        America           456,999                                 420,600                                432,201                                411,286
                                          -------                                 -------                                -------                                -------
                       Egypt                                                      161,458                                163,090                                158,713                                164,864
                       Australia                       60,643                                 69,812                                 64,552                                 69,074
                       North Sea           73,959                                  56,253                                 74,887                                 54,925
                       Argentina                       46,946                                 49,572                                 48,326                                 48,000

                        International     343,006                                 338,727                                346,478                                336,863
                                       Total          800,005                                759,327                                778,679                                748,149
                                                      =======                                =======                                =======                                =======

                                                                                APACHE CORPORATION
                                                                                 PRICE INFORMATION

                                                                  For the Quarter                 For the Year
                                                                Ended December 31,             Ended December 31,
                                                                ------------------             ------------------
                                                                               2012                           2011                           2012                           2011
                                                                               ----                           ----                           ----                           ----

      AVERAGE OIL PRICE PER BARREL
                       Central                         $82.55                         $89.36                         $86.48                         $89.89
                       Permian                          81.40                          89.99                          88.18                          90.87
                       GOM Deepwater       103.06                            112.77                         105.17                         106.75
                       GOM Shelf           105.27                            115.70                         108.52                         108.92
                       GC Onshore          105.21                            112.66                         107.83                         105.98
                        United
                        States (1)          91.01                             99.54                          94.98                          95.51
                       Canada                           82.08                          94.38                          84.89                          93.19
                        North
                        America (1)         90.08                             98.99                          93.91                          95.27
                       Egypt(1)                        107.80                         106.65                         110.92                         109.92
                       Australia(1)        111.34                            109.53                         115.22                         111.22
                       North Sea(1)        106.17                            104.64                         107.97                         104.09
                       Argentina                        74.53                          76.67                          75.89                          68.02
                        International
                         (1)               106.14                            105.24                         108.92                         106.67
                                       Total(1)         98.93                         102.71                         102.53                         102.19

      AVERAGE NATURAL GAS PRICE PER MCF
                       Central                          $3.79                          $3.92                          $3.26                          $4.44
                       Permian                           3.75                           5.05                           3.34                           5.17
                       GOM Deepwater         3.48                              3.48                           2.99                           4.06
                       GOM Shelf             3.51                              3.86                           3.01                           4.42
                       GC Onshore            3.47                              3.73                           2.92                           4.34
                        United
                        States (1)           4.05                              4.59                           3.74                           4.91
                       Canada (1)            4.03                              4.15                           3.42                           4.47
                        North
                        America (1)          4.04                              4.40                           3.61                           4.72
                       Egypt                                                   4.02                           4.82                           3.90                           4.66
                       Australia                         4.88                           2.64                           4.55                           2.69
                       North Sea            10.11                             20.49                           8.95                          22.25
                       Argentina                         2.98                           2.82                           2.87                           2.64
                        International        4.30                              3.75                           4.15                           3.67
                                        Total
                                         (1)             4.14                           4.18                           3.80                           4.37

      AVERAGE NGL PRICE PER BARREL
                       Central                         $27.06                         $29.96                         $27.48                         $38.67
                       Permian                          29.95                          39.09                          32.97                          47.88
                       GOM Deepwater        32.34                             58.28                          33.06                          50.44
                       GOM Shelf            28.17                             55.07                          32.04                          49.63
                       GC Onshore           36.60                             56.08                          40.04                          58.51
                        United
                        States              29.40                             42.03                          32.19                          48.42
                       Canada                           33.59                          50.16                          34.63                          45.72
                        North
                        America             29.98                             43.41                          32.57                          47.85
                       Egypt                                                      -                              -                              -                          66.36
                       North Sea            94.42                                 -                          77.11                          65.45
                       Argentina                        22.76                          27.00                          21.55                          27.90
                        International       41.96                             27.00                          40.98                          28.56
                                       Total            30.88                          41.95                          33.45                          45.95

    (1)  Prices reflect the impact of financial derivative hedging activities.

                                                        APACHE CORPORATION
                                                   NON-GAAP FINANCIAL MEASURES
                                               (In millions, except per share data)

    Reconciliation of income attributable to common stock to adjusted earnings:
    ---------------------------------------------------------------------------
    The 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 below are the types of items
                                                 management believes are frequently excluded by analysts
                                                 when evaluating the operating trends and comparability of
                                                 the company's results.

                                                                For the Quarter
                                                                                               For the Year
                                                                Ended December 31,
                                                                                            Ended December 31,
                                                                                            ------------------
                                                                   2012                2011                 2012                 2011
                                                                   ----                ----                 ----                 ----

    Income Attributable to Common Stock (GAAP)            $649              $1,170              $1,925               $4,508

    Adjustments:
                                                 Canada and
                                                 other oil &
                                                 gas
                                                 property
                                                 write-
                                                 down, net
                                                 of tax              18                  60                1,427                   60
                                                 Deferred tax
                                                 adjustments        226                 (75)                 226                  (75)
                                                 U.K. income
                                                 tax
                                                 adjustments          -                   -                  118                  218
                                                 Commodity
                                                 derivative
                                                 mark-to-
                                                 market, net
                                                 of tax              51                             -                   51                    -
                                                 Merger,
                                                 acquisitions
                                                 &
                                                 transition,
                                                 net of tax           2                   4                   19                   13
                                                 Unrealized
                                                 foreign
                                                 currency
                                                 fluctuation
                                                 impact on
                                                 deferred
                                                 tax expense        (39)                 (5)                   1                  (73)
    Adjusted Earnings  (Non-GAAP)                         $907              $1,154              $3,767               $4,651
                                                          ====              ======              ======               ======

    Net Income per Common Share -Diluted
     (GAAP)                                              $1.64               $2.98               $4.92               $11.47

    Adjustments:
                                                 Canada and
                                                 other oil &
                                                 gas
                                                 property
                                                 write-
                                                 down, net
                                                 of tax            0.04                0.15                 3.53                 0.15
                                                 Deferred tax
                                                 adjustments       0.56               (0.19)                0.56                (0.19)
                                                 U.K. income
                                                 tax
                                                 adjustments          -                   -                 0.30                 0.55
                                                 Commodity
                                                 derivative
                                                 mark-to-
                                                 market, net
                                                 of tax            0.13                             -                 0.13                    -
                                                 Merger,
                                                 acquisitions
                                                 &
                                                 transition,
                                                 net of tax                     -                0.01                 0.04                 0.03
                                                 Unrealized
                                                 foreign
                                                 currency
                                                 fluctuation
                                                 impact on
                                                 deferred
                                                 tax expense      (0.10)              (0.01)                             -                (0.18)
    Adjusted Earnings Per Share - Diluted
     (Non-GAAP)                                          $2.27               $2.94               $9.48               $11.83
                                                         =====               =====               =====               ======

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

                                                                For the Quarter
                                                                                               For the Year
                                                                Ended December 31,
                                                                                            Ended December 31,
                                                                                            ------------------
                                                                   2012                2011                 2012                 2011
                                                                   ----                ----                 ----                 ----
    Net cash provided by operating activities                    $2,082              $2,782                          $8,504               $9,953
    Changes in operating assets and
     liabilities                                                    685                (118)               1,705                  281
                                                                    ---                ----                -----                  ---
                                                                 $2,767              $2,664              $10,209              $10,234
    Cash from operations before changes in operating
     assets and liabilities
                                                                                                                                  ===

                                                                                          APACHE CORPORATION
                                                                                    OIL & GAS RESERVES INFORMATION
                                                                                 For the Year Ended December 31, 2012

     OIL (Mbbl)
                                                       U.S.             Canada                        Egypt             Australia           North Sea          Argentina           Total
                                                       ----            ------                         -----            ---------           ---------           ---------           -----
     Balance -Dec
     31, 2011                                  634,014        141,591             128,035                      67,945             169,405              20,587           1,161,577
                  Extensions and Discoveries                   84,656              18,935                      36,188               6,277                 346               1,133           147,535
                  Purchases                                    15,942                 188                           -                 276               2,143                   -            18,549
                  Revisions                                    (7,474)             (4,577)                     (3,678)                (66)               (928)                671           (16,052)
                  Production                                  (49,089)             (5,792)                    (36,511)            (10,571)            (23,312)             (3,565)         (128,840)
                  Sales                                          (144)                  -                           -                   -                   -                   -              (144)
     Balance -Dec
     31, 2012                                  677,905        150,345             124,034                      63,861             147,654              18,826           1,182,625
                                               =======        =======             =======                      ======             =======              ======           =========

     NGL's (Mbbl)
                                                       U.S.             Canada                        Egypt             Australia           North Sea          Argentina           Total
                                                       ----            ------                         -----            ---------           ---------           ---------           -----
     Balance -Dec
     31, 2011                                  160,033         31,450     -                             -                           9,262               7,153             207,898
                  Extensions and Discoveries                   71,965               7,655               -                               -                 246                   -            79,866
                  Purchases                                       230                   9               -                               -                 231                   -               470
                  Revisions                                    (4,559)             (2,569)              -                               -              (6,329)               (169)          (13,626)
                  Production                                  (12,272)             (2,291)              -                               -                (592)             (1,101)          (16,256)
     Balance -Dec
     31, 2012                                  215,397         34,254                   -               -                           2,818               5,883             258,352
                                               =======         ======                 ===              ===                          =====               =====             =======

     Oil & NGL's
                                                       U.S.             Canada                        Egypt             Australia           North Sea          Argentina           Total
                                                       ----            ------                         -----            ---------           ---------           ---------           -----
     Balance -Dec
     31, 2011                                  794,047        173,041             128,035                      67,945             178,667              27,740           1,369,475
                  Extensions and Discoveries                  156,621              26,590                      36,188               6,277                 592               1,133           227,401
                  Purchases                                    16,172                 197                           -                 276               2,374                   -            19,019
                  Revisions                                   (12,033)             (7,146)                     (3,678)                (66)             (7,257)                502           (29,678)
                  Production                                  (61,361)             (8,083)                    (36,511)            (10,571)            (23,904)             (4,666)         (145,096)
                  Sales                                          (144)                  -                           -                   -                   -                   -              (144)
     Balance -Dec
     31, 2012                                  893,302        184,599             124,034                      63,861             150,472              24,709           1,440,977
                                               =======        =======             =======                      ======             =======              ======           =========

     GAS (MMcf)
                                                       U.S.             Canada                        Egypt             Australia           North Sea          Argentina           Total
                                                       ----            ------                         -----            ---------           ---------           ---------           -----
     Balance -Dec
     31, 2011                                2,976,211      3,547,511             982,966                   1,569,584             108,442             537,559           9,722,273
                  Extensions and Discoveries                  365,863             252,130                      55,967             176,969              16,397               2,623           869,949
                  Purchases                                   313,885               2,503                           -               1,745               8,494                   -           326,627
                  Revisions                                  (156,840)         (1,443,989)                    (13,974)                101                   -                 496        (1,614,206)
                  Production                                 (312,600)           (219,849)                   (129,468)            (78,329)            (21,029)            (78,128)         (839,403)
                  Sales                                          (612)               (422)                          -                   -                   -                   -            (1,034)
     Balance -Dec
     31, 2012                                3,185,907      2,137,884             895,491                   1,670,070             112,304             462,550           8,464,206
                                             =========      =========             =======                   =========             =======             =======           =========

     TOTAL BOE
     (Mboe)
                                                       U.S.             Canada                        Egypt             Australia           North Sea          Argentina           Total
                                                       ----            ------                         -----            ---------           ---------           ---------           -----
     Balance -Dec
     31, 2011                                1,290,082        764,293             291,863                     329,542             196,741             117,333           2,989,854
                  Extensions and Discoveries                  217,598              68,612                      45,516              35,772               3,325               1,570           372,393
                  Purchases                                    68,486                 614                           -                 567               3,790                   -            73,457
                  Revisions                                   (38,173)           (247,811)                     (6,007)                (49)             (7,257)                585          (298,712)
                  Production                                 (113,461)            (44,725)                    (58,089)            (23,626)            (27,409)            (17,687)         (284,997)
                  Sales                                          (246)                (70)                          -                   -                   -                   -              (316)
     Balance -Dec
     31, 2012                                1,424,286        540,913             273,283                     342,206             169,190             101,801           2,851,679
                                             =========        =======             =======                     =======             =======             =======           =========

     Proved
     developed
     reserves:
                  Oil + NGL's (Mbbls)                         629,345             101,691                     106,746              29,053             122,073              20,852         1,009,760
                  Gas (Mboe)                                  392,264             289,109                     115,073              99,342              15,554              60,843           972,185
     Balance -Dec
     31, 2012
     (Mboe)                                  1,021,609        390,800             221,819                     128,395             137,627              81,695           1,981,945
                                             =========        =======             =======                     =======             =======              ======           =========

                                                                                                   APACHE CORPORATION
                                                                                              OIL & GAS RESERVES AND COSTS
                                                                                          For the Year Ended December 31, 2012

    Reserve Additions (Mboe)
                                                                                                U.S.      Canada        Egypt     Australia   North Sea       Argentina          Other               Total
                                                                                               ----       ------       -----     ---------    ---------       ---------         -----               -----

    Extensions and Discoveries                                                                             217,598       68,612      45,516       35,772            3,325            1,570                      -      372,393
    Purchases                                                                        68,486       614            -          567       3,790            -                -           73,457
                                                                Additions excluding
                                                                revisions                                  286,084       69,226      45,516       36,339            7,115            1,570                      -      445,850
                                                                                                                         ------      ------       ------            -----            -----                    ---          ---
    Revisions                                                                                              (38,173)    (247,811)     (6,007)         (49)          (7,257)             585                      -     (298,712)
                                                               Total                                       247,911     (178,585)     39,509       36,290             (142)           2,155                      -      147,138
                                                                                                                        =======      ======       ======            =====             ====                    ===          ===

    Capital Cost Information (Non-
     GAAP) (in millions)
                                                                                                U.S.      Canada        Egypt     Australia   North Sea       Argentina          Other               Total
                                                                                               ----       ------       -----     ---------    ---------       ---------         -----               -----
    Exploration & Development, excluding Capitalized Interest
     and Asset Retirement Cost (ARC) (1)
                                                       $5,151                          $590                 $1,074                     $873                          $886             $289                    $98       $8,961
    Acquisitions, excluding ARC - Acquired
                                                               Proved                                        1,071            5          28            4               59                -                      -        1,167
                                                               Unproved                                      2,329            -           -            -               26                -                      -        2,355
         Total                                                                       $8,551      $595       $1,102         $877        $971         $289              $98          $12,483
                                                                                     ======      ====       ======         ====        ====         ====              ===          =======

    (1)  Includes capital spending of $1.1 billion for leasehold and $365 million for seismic.

    Reconciliation of Exploration and Development Costs to Exploration and Development Costs, excluding Capitalized Interest and Asset Retirement Cost, a Non-GAAP Financial Measure
    --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    Presented below is a reconciliation of exploration and development costs (GAAP) to exploration and development costs, excluding capitalized interest and asset retirement cost (Non-GAAP).  Management believes exploration and development costs, excluding
     capitalized interest and asset retirement cost is a more accurate reflection of the expenditures during the current year.

                                                                                                U.S.      Canada        Egypt     Australia   North Sea       Argentina          Other               Total
                                                                                               ----       ------       -----     ---------    ---------       ---------         -----               -----

    Exploration & Development
     Costs (in millions)                                                             $5,834      $873       $1,090       $1,064        $948         $318              $98          $10,225
                                                               Less: Capitalized Interest                     (215)         (38)        (16)         (12)             (24)             (11)                     -         (316)
                                                               Less: ARC                                      (468)        (245)          -         (179)             (38)             (18)                     -         (948)
                                                                                                              ----         ----         ---         ----              ---              ---                    ---

                                                                  Total Adds                                $5,151         $590      $1,074         $873             $886             $289                    $98       $8,961
                                                                                                            ======         ====      ======         ====             ====             ====                    ===

    Reconciliation of Total Acquisition Costs to Acquisitions, excluding Asset Retirement Cost - Acquired, a Non-GAAP Financial Measure
    -----------------------------------------------------------------------------------------------------------------------------------

    Presented below is a reconciliation of total acquisition costs (GAAP) to acquisitions, excluding asset retirement cost - acquired (Non-GAAP).  Management believes acquisitions, excluding asset retirement cost - acquired is a more accurate reflection of the
     costs of acquisitions during the current year.

                                                                                                U.S.      Canada        Egypt     Australia   North Sea       Argentina          Other               Total
                                                                                               ----       ------       -----     ---------    ---------       ---------         -----               -----

    Total Acquisition Costs (in
     millions)
                                                               Proved                                       $1,076           $5         $28          $32             $110  $             -               $      -       $1,251
                                                               Unproved                                      2,329            -           -            -               26                                       -        2,355
    Less: ARC - Acquired                                                                 (5)        -            -          (28)        (51)           -                -              (84)
                                                                                        ---       ---          ---          ---         ---          ---              ---              ---

                                                                Acquisitions,
                                                                excluding ARC
                                                                -Acquired                      $3,400           $5          $28          $4          $85  $             -         $      -                 $3,522
                                                               ==============                  ======          ===          ===         ===          ===  ===============         ========

APA-F

SOURCE Apache Corporation


Source: PR Newswire