Apache Corp. (NYSE:APA) Q4 2015 Earnings Conference Call - Final Transcript

Feb 25, 2016 • 02:00 pm ET

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Apache Corp. (NYSE:APA) Q4 2015 Earnings Conference Call - Final Transcript

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Operator
Operator

Good afternoon. My name is Kim and I will be your conference operator today. At this time, I would like to welcome everyone to the Apache Corporation Fourth Quarter and Full Year 2015 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, Investor Relations, you may begin your conference, sir.

Executive
Gary Clark

Good afternoon and thank you for joining us on Apache Corporation's fourth quarter 2015 earnings conference call. Speakers making prepared remarks on today's call will be Apache's CEO and President, John Christmann and CFO, Steve Riney. Also joining us in the room is Tim Sullivan, Executive Vice President of Operations. In conjunction with this morning's press release, I hope, you've had the opportunity to review our quarterly earnings supplement, which summarizes key financial and operational data for the fourth quarter and full year 2015 along with details regarding our 2016 production and capital spending outlook. We have revised and streamlined the structure and content of our earnings supplement and believe you will find it more useful.

Also, please note that we've changed our capital expenditure guidance convention to reflect a more comprehensive picture of our spending. Specifically, the 2016 capital spending range we provided in this morning's press release includes all exploration, development, gathering, transportation and processing expenditures. It also includes budgeted leasehold acquisition costs and capitalized interest and capitalized G&A. The only element of our 2016 program that our guidance will continue to exclude is capital attributable to our minority interest partner in Egypt. As a result of this guidance change, references made on today's call to 2015 and 2016 capital spending may not be directly comparable. Our earnings release, the accompanying financial tables and non-GAAP reconciliations along with our quarterly earnings supplement can all be found on our website at www.apachecorp.com/financial data. We also plan to post on our website a section which contains responses to any questions that arise on today's call for which we do not have readily available information to answer.

I'd like to remind everyone that today's discussions will contain forward-looking estimates and assumptions based on our current views and reasonable expectations. However, a number of factors could cause actual results to materially differ from what we discuss today. A full disclaimer is located with the supplemental data on our website. And I would now like to turn the call over to John

Executive
John Christmann

Thank you, Gary. Good afternoon and thank you for joining us today. I'd like to begin with a recap of the significant progress Apache made in 2015. I will then provide some highlights from our fourth quarter and full year results and conclude with some specific thoughts on what to expect for 2016.

Apache underwent a significant transition in 2015. While the external environment remains challenging, we entered 2016 better positioned to operate and thrive in a lower-for-longer commodity price environment. In addition to completing an extensive refocusing