Apache Corp. (NYSE:APA) Q4 2014 Earnings Conference Call - Final Transcript

Feb 12, 2015 • 02:00 pm ET


Apache Corp. (NYSE:APA) Q4 2014 Earnings Conference Call - Final Transcript


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Good afternoon. My name is Kelly, and I will be your conference operator today. At this time, I would like to welcome everyone to the 2014 Fourth Quarter and Year-End Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question-and-answer session. [Operator Instructions]

Thank you. Gary Clark, Vice President of Investor Relations. You may begin your conference.

Gary T. Clark

Great. Thank you, Kelly. Good afternoon, everyone and thank you for joining us for Apache Corporation's fourth quarter 2014 earnings conference call. Speakers making prepared remarks on today's call will be Apache CEO and President, John Christmann; and Interim CFO, Anthony Lannie. Also joining us in the room are Tom Voytovich, Executive Vice President and COO of International; and Steve Riney, who will officially take over as Apache's new CFO later this month. We are delighted to have Steve on Board and look forward to hearing from him on next quarter's conference call.

In conjunction with this morning's press release, I hope you've had the opportunity to review our quarterly earnings supplement which summarizes our operational activities and well highlights across various Apache operating regions. The supplement also includes information on our capital expenditures for the quarter, as well as a chart that illustrates cash sources and uses and reconciles Apache's change in net debt during 2014.

Our earnings release, the accompanying financial tables and non-GAAP reconciliations and our quarterly earnings supplement can all be found on our website at www.apachecorp.com. I'd like to remind everybody that today's discussion will contain forward-looking estimates and assumptions based on our current views and most reasonable expectations. However, a number of factors could cause actual results to differ materially from what we discussed today. A full disclaimer is located with the supplemental data on our website.

This morning we reported a fourth quarter 2014 loss of $4.8 billion or $12.78 per diluted share. These results contain several non-cash charges primarily related to the impact of declining oil and gas prices, acreage impairments, the announced disposition of our LNG assets and changes in foreign tax estimates and assumptions.

Adjusted earnings, which excludes certain items that impact the comparability of results totaled $404 million or $1.07 per diluted share. Cash flow from operations before changes in working capital totaled $2.1 billion during the quarter.

Worldwide reported net production averaged 673,000 barrels of oil equivalent per day, with liquids production constituting 62% of that total. On a pro forma basis, which excludes assets that have been divested, non-controlling interests, and tax barrels in Egypt, our fourth quarter worldwide production was 609,000 barrels of oil equivalent per day. This represents an 8% increase from the third quarter and a 12% increase from the same period a year ago.

I would now like to turn the call over to John Christmann.

John J. Christmann

Thank you, Gary. Good afternoon and thank you for joining us today. I would like to start by saying a few words about our long-time Chairman, CEO