- Reported global production of 542,000 barrels of oil equivalent (boe) per day.

- Delivered onshore North American production of 306,000 boe per day and raised 2015 guidance to 307,000 to 309,000 boe per day, a more than 2 percent pro forma increase over 2014.

- Achieved international and offshore production growth of 5 percent sequentially, averaging 180,000 boe per day (adjusted for divestitures, Egypt tax barrels and noncontrolling interest), and raised 2015 guidance to 172,000 to 174,000 boe per day, a 10 to 12 percent pro forma increase over 2014.

- Realized significant exploration success in the U.K. North Sea with discoveries representing estimated net reserves of 50 million to more than 70 million boe.

HOUSTON, Nov. 5, 2015 - Apache Corporation (NYSE, Nasdaq: APA) today announced a third-quarter 2015 net loss of $5.7 billion, or $14.95 per diluted common share, which includes an after-tax ceiling test write down of $3.7 billion resulting from current low commodity price levels and a $1.5 billion charge related to an increase in the valuation allowance on deferred tax assets. When adjusted for these and certain additional items that impact the comparability of results, Apache's third-quarter net loss totaled $21 million, or $0.05 per share. Net cash provided by continuing operating activities was approximately $835 million and adjusted EBITDA from continuing operations was $830 million.

"Apache continues to demonstrate resiliency in today's low commodity price environment," said John J. Christmann, IV, Apache's chief executive officer and president. "Our third-quarter production volumes once again exceeded expectations and continue to do so on a significantly lower capital program. This is a testament to the quality of our assets and the efforts of our teams in every region. We have made significant improvements in our capital investment process, and we are relentlessly focused on improving capital efficiency. We are also seeing great progress on our costs, as both operating and G&A are down considerably since the end of last year."

Debt and liquidity

After paying down $900 million of long-term debt in the third quarter, the company reported debt of $8.8 billion as of Sept. 30, 2015. Apache has no maturities before 2018 and only $700 million of debt maturing before 2021. The company has access to available liquidity of more than $5 billion, including cash on hand and available borrowing capacity under its committed credit facility of $3.5 billion. The credit facility matures in June 2020 and supports a commercial paper program of the same size. Since the end of the third quarter, Apache has signed agreements to sell certain non-upstream assets for cash proceeds of approximately $500 million, further strengthening the company's cash position and financial flexibility.

Capital expenditures and capital guidance update

Apache's financial strength and liquidity are sustained through disciplined capital budgeting. The 2015 capital program has been significantly reduced from 2014 levels. Capital expenditures in the third quarter (excluding leasehold acquisitions, capitalized interest, Egypt noncontrolling interest, and spending on divested LNG and associated assets) were $762 million, down 16 percent from the second quarter. For the first nine months of the year, they totaled $2.9 billion, and the company remains on track to spend within its guidance range.

Third-quarter operational highlights

Apache operated an average of 28 rigs worldwide and drilled 111 gross operated wells, 92 of which were North American onshore. Highlights across Apache's operating regions include:

• Permian - Apache operated 10 rigs in the Permian and completed 65 gross operated wells during the third quarter, up from 53 well completions in the second quarter. Production averaged 170,000 boe per day, only 1 percent lower than the second quarter despite significant planned and unplanned facilities downtime.
  • Delaware Basin - Apache averaged four rigs and targeted the Bone Spring and Wolfcamp formations in the Pecos Bend and Waha areas. The company completed 22 wells using only one frac crew, and completed well costs continue to decline significantly, now averaging below $5-million.
  • Midland Basin - Apache averaged three rigs during the quarter, all targeting its southern Midland focus areas in Midland, Upton, Reagan and Glasscock counties. The company completed 25 wells during the quarter and directed its drilling activity primarily to Wolfcamp and Spraberry targets in the Wildfire area of Midland County and in the Powell Miller area of northern Reagan County. Completion costs in the Barnhart area, where 17 wells remain to be completed, have dropped 44 percent to approximately $2.7 million due to a combination of price decreases and significant design changes.
  • Central Basin Platform/NW Shelf - Apache averaged three rigs during the quarter, two of which were targeting the Yeso formation in its Cedar Lake play in Eddy County, where completed well costs have decreased nearly 50 percent since late 2014. Two notable wells, the Hummingbird #1H and #2H, were drilled and placed on production at average 30-day rates of 816 boe per day and 722 boe per day, respectively. With average completed well costs of only $2.6 million, these wells are expected to deliver very strong rates of return.
• Midcontinent (formerly Central) - During the quarter, Apache continued to operate two rigs in the Midcontinent, where it primarily targeted the Woodford/SCOOP and Marmaton plays. The company brought online two notable wells, one each in the Marmaton and Woodford plays. The Apache 21-11-21 targeting the Marmaton produced at an average 30-day rate of 1,686 boe per day, and the Truman 28-6-6 #1H targeting the Woodford produced an average 30-day rate of 1,949 boe per day.
• Gulf Coast (Eagle Ford) - Apache primarily focused on optimizing well completions in Area A of its Eagle Ford position. Eight wells were completed and placed on production during the quarter, with average 30-day rates that are in line with the company's published type curve. Late in the third quarter, after successfully improving the production rates and cost efficiencies in Area A, Apache resumed drilling with one rig.
• Canada - The company is primarily focused on advancing its programs in the liquids-rich Duvernay and Montney plays. In the Duvernay, Apache placed its first well pad online in October and achieved strong test results from seven wells that averaged 2,188 boe per day per well. During the upcoming drilling season, Apache is planning to run up to two rigs in the Duvernay and one in the Montney.
• Egypt - Gross production was up 4 percent sequentially on strong drilling results in the Ptah and Berenice oil fields. During the quarter, these fields generated peak production of more than 26,000 boe per day. This performance, coupled with other recent successful exploration and development wells, have enabled the company to exceed its prior peak gross production rate from early 2012. As a result, Apache became the largest oil and natural gas producer in Egypt on a gross operated basis during the third quarter.
• North Sea - Production increased 6 percent, or more than 4,200 boe compared to the second quarter of 2015. The increase was driven by strong contribution from new wells and record third-quarter production efficiency, or uptime, of 92 percent. Apache recently announced two exploratory discoveries in the Beryl Area, along with a large exploratory discovery at its Seagull prospect, which lies 50 miles south of the Forties field. These discoveries, coupled with other recent drilling successes, are estimated to ultimately increase net reserves by 50 million to more than 70 million barrels of oil equivalent, or almost half the proved reserves booked in the region as of 2014 year-end.

2015 outlook and guidance update

Despite a significantly reduced capital program, production volumes have shown tremendous resiliency; as a result, Apache is again raising 2015 production-guidance ranges. The company is increasing its full-year 2015 North American onshore production guidance to a range of 307,000 to 309,000 boe per day, which is up from prior guidance of 305,000 to 308,000 boe per day. On a pro forma basis, this represents more than 2 percent year-over-year growth. Internationally, Apache delivered strong third-quarter production growth through record production efficiency in the North Sea, sustained solid base performance and better-than-expected contributions from new wells. These results enable the company to raise its full-year 2015 international and offshore pro forma production guidance to 172,000 to 174,000 boe per day, up from a previous range of 164,000 to 168,000 boe per day. This represents substantial year-over-year growth of 10 to 12 percent.

"2015 has been a year of tremendous change and progress for Apache," Christmann remarked. "In addition to significantly improving our operational efficiencies, we have established a portfolio of leading positions in areas where we have best-in-class operating capabilities and a financial foundation that provides the strength and flexibility to take full advantage of a potentially lower-for-longer commodity cycle.

"As we turn to 2016, prudent capital allocation will continue to be our primary focus as we strive to spend within cash flows, enhance our returns and grow value for our shareholders. Longer-term, we have great confidence in the potential inherent in our portfolio. Our extensive, high-quality position in North American resource plays will continue to be the driver of our long-term growth. Our recent exploration successes in the North Sea and Egypt demonstrate the quality of our international assets and underpin their potential to sustain free cash flows for an extended period of time. It has been an extensive effort, and there is still more to do, but Apache is well-positioned for the future."

Conference call

Apache Corporation (NYSE, Nasdaq: APA) will host a conference call Thursday, Nov. 5, 2015, to discuss its third-quarter 2015 financial results. The call will begin at 1 p.m. Central time (2 p.m. Eastern time). To access the live audio webcast, please visit Apache's website at www.apachecorp.com.

A replay of the conference call will be available for seven days following the call. The number for the replay is 855-859-2056 or 404-537-3406 for international calls. The conference access code is 31407581.

Sign up for email alerts to be reminded of the webcast at http://investor.apachecorp.com/alerts.cfm.

Additional Information

Additional information follows, including reconciliations of adjusted earnings, adjusted EBITDA, and net debt (non-GAAP financial measures) to GAAP measures and information regarding pro forma production. Apache's quarterly supplement is available at www.apachecorp.com/financialdata.

About Apache

Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt and the United Kingdom. Apache posts announcements, operational updates, investor information and copies of all press releases on its website, www.apachecorp.com, and on its Media and Investor Center mobile application, which is available for free download from the Apple App Store and the Google Play Store.

Non-GAAP financial measures

Apache's financial information includes information prepared in conformity with generally accepted accounting standards (GAAP) as well as non-GAAP information. It is management's intent to provide non-GAAP financial information to enhance understanding of our consolidated financial information as prepared in accordance with GAAP. Adjusted earnings, adjusted EBITDA, and net debt are non-GAAP measures. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply that more emphasis should be placed on the non-GAAP measure.

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," "guidance" and similar references to future periods. These statements include, but are not limited to, statements about future plans, expectations and objectives for Apache's operations, including statements about our capital plans, drilling plans, production expectations, asset sales and monetizations. 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 2014 Form 10-K filed 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 may use certain terms in this earnings release operations supplement, such as "resources," "potential resources," "resource potential," "estimated net reserves," "recoverable reserves," 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, 2014, available from Apache at www.apachecorp.com or by writing Apache at: 2000 Post Oak Blvd., Suite 100, Houston, TX 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.

Website: www.apachecorp.com

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