Apache Corporation (APA) 2004年年度報告「NYSE」.pdf

1、Apache Corporation2004 Summary Annual ReportAt any time ofday,on any day ofthe week,365 daysa year,in locations around the world,Apache peopleare working on behalf of shareholders to find and pro-duce oil and natural gas.As part of the largest indus-try on Earth,Apache helps fuel economies and raise

2、living standards,operates in an environmentallyresponsible manner,and continues a 50-year tradi-tion of profitable growth.The Tarantula field,located about 60 miles off theLouisiana coast in the Gulf of Mexico,is one ofApaches newest assets,acquired in 2004 as the fieldwas about to commence producti

3、on.2:37amGulf of Mexico Apache Corporate ProfileApache Corporation&SubsidiariesMaking A DifferenceApache Corporation&SubsidiariesEstablished in 1954 with$250,000 of investor capital,Apache Corporation has grown tobecome one of the worlds top independent oil and gas exploration and production compani

4、eswith$15.5 billion in assets.Apaches U.S.operations are focused in some of the nations mostimportant producing basins,including the Outer Continental Shelf of the Gulf of Mexico,theAnadarko Basin of Oklahoma,the Permian Basin of West Texas and New Mexico,the Texas-Louisiana Gulf Coast and East Texa

5、s.In Canada,Apache is active in British Columbia,Alberta,Saskatchewan and the Northwest Territories.The company also has exploration and productionoperations in Australias offshore Carnarvon,Perth and Gippsland basins,Egypts Western Desert,the United Kingdom sector of the North Sea,China and Argenti

6、na.Apache urges all who share its commitment to education to support Fund for Teachers,aprogram that recognizes and encourages pre-kindergarten through 12th-grade teachers withgrants for summer travel;the Ucross Foundation,which provides Artist-in-Residence programs,meeting facilities for consensus-

7、building,and a model of land stewardship integrated with anopen-space initiative in Wyoming;and Springboard Educating the Future,which raises moneyto build one-room schools for young girls in Egypts rural communities.For more informationabout or to make a contribution to Fund for Teachers,please con

8、tact Karen Kovach-Webb,exec-utive director,2000 Post Oak Boulevard,Suite 100,Houston,Texas,77056,or e-mail her atsmilesfundforteachers.org.For more information or to make a contribution to the UcrossFoundation,please contact Michelle Sullivan,president,30 Big Red Lane,Clearmont,Wyoming,82835,or e-ma

9、il her at .For more information on Springboard,pleasecontact Dina Kohleffel,Apaches director of philanthropic programs,at 2000 Post Oak Boulevard,Suite 100,Houston,Texas,77056,or e-mail her at .200420032002Financial HighlightsRevenues$5,333$4,190$2,560Income attributable to common stock1,6631,116544

10、Diluted net income per common share5.033.431.80Cash from operations before changesin operating assets and liabilities(a):Net cash provided by operating activities$3,232$2,706$1,381Changes in operating assets and liabilities19395186Cash from operations before changes in operatingassets and liabilitie

11、s$3,425$2,801$1,567Total assets$15,502$12,416$9,460Long-term debt2,5882,3272,159Shareholders equity8,2046,5334,924Cash dividends paid per common share.26.21.19Operational HighlightsOil and gas capital expenditures(including acquisitions,gas gathering,transmission and processing facilities and goodwi

12、ll)$3,594$3,118$1,288Natural gas production(MMcf/d)1,2351,2171,080Oil and condensate production(Mbbls/d)242215161Proved reserves(MMboe)1,9371,6571,313Per-share results have been adjusted to reflect the five percent and 10 percent common stock dividends declaredin 2002 and 2001,respectively,and the t

13、wo-for-one stock split declared in 2003.(a)NON-GAAP FINANCIAL MEASURE:This annual report discusses Apaches cash from operations before changes in operating assets and liabilities.It is presented because management believes the information is useful for investors because it isused internally and wide

14、ly accepted by those following the oil and gas industry as a financial indicator of a companys 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

15、and production companies and is frequently included in published researchwhen 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 per-formance under GAAP and sho

16、uld not be considered as an alternative to cash flows from operating,investing,or financing activities.Performance HighlightsApache Corporation&SubsidiariesContents1Performance Highlights1A Record Year2 Letter to Shareholders3 Central Region5Gulf Coast Region7Egypt9Canada10U.K.North Sea12Australia14

17、China17Directors and Officers20Statement of Consolidated Operations21Statement of Consolidated Cash Flows22Consolidated Balance Sheet23Statement of Consolidated Shareholders Equity24Eleven-Year Statistical Summary26Oil and Gas Reserve Information28Future Net Cash Flows30Shareholder Information31Abbr

18、eviationsMcfThousand cubic feet(of gas)MMcfMillion cubic feetBcfBillion cubic feetTcfTrillion cubic feetBoeBarrel of oil equivalentMMboeMillion barrels of oil equivalentSix Mcf of gas is the energy equivalent of one barrel of oil.(dollars in millions,except per-common-share data)Year Ended December

19、312A Record YearApache Corporation&SubsidiariesEarnings($billions)Assets($billions)Net CashProvided byOperatingActivities($billions)Proved Reserves(MMboe)GASLIQUID HYDROCARBONSAnnual Production(MMboe)GASLIQUID HYDROCARBONSCapitalization($billions)EQUITYDEBT00 01 02 03 04 00 01 02 03 04 00 01 02 03 0

20、400 01 02 03 042.01.51.0.5200015001000500200150100501210864220151053.53.02.52.01.51.0.5200 01 02 03 0400 01 02 03 04 Fellow ShareholdersApache Corporation&SubsidiariesIn last years annual report,we noted that we would be celebrating the companys 50th anniversaryduring 2004.The year provided many opp

21、ortunities to recall and highlight the values that have fosteredApaches five decades of progress while remaining solidly focused on the present and future.It was alsoour best year ever:With record production and strong commodity prices,Apache earned$1.7 billion,up nearly 50 percent from 2003.To prov

22、ide perspective for new shareowners and employees,here are some comparisons:Apachesmid-February market capitalization of$19 billion is about 75,000 times the companys initial capitaliza-tion of$250,000.With adjustments for stock dividends and splits,our recent share price is about 1,400times the val

23、ue of Apache shares when they were first traded.As we observed Apaches anniversary,we were asked many questions,but the most commonqueries can be boiled down to three topics:Q.Did you think Apache would reach these levels?A.No.We had confidence in the future but we didnt have such dreams.We know now

24、 what we believed then,that growth is incremental.Q.Are you proud?A.No,not really.We are focused on the present and future challenges rather than past accomplishments.After all,personal pride has an aroma of arrogance and often leads to self-destruction.But yes,we are proud of the Apache people who

25、have risen to the challenges and opportunities they have faced and have grown as a result of the responsibilities they have embraced.Q.What are the principal elements that have served Apache so well?A.Our values,by a country mile.As Apache has grown over the past five decades,we have worked hard to

26、preserve the values integrity,respect for people and other cultures,an entrepreneurial spirit that have helped us build thecompany to last.When we say that we are“building Apache to last,”we mean that our strategies anddecisions are weighted toward the long term,not quarter-to-quarter results.We are

27、 making decisionstoday to benefit shareholders three to five years forward.Add to this Apaches sense of urgency,our peoples creativity and the credibility they have gainedfrom meeting their commitments and assuming new responsibilities.Thats what drives us.So,how did we do in 2004?And what are the c

28、hallenges and opportunitiesahead of us?When we reported to you last year,there was a significant amount of uncertainty for our industryand in the world.Unfortunately,many of the same issues that confronted us a year ago are still aroundtoday.Oil prices,fueled by increased demand,the weak U.S.dollar

29、and turmoil in the Middle East,remainstrong and volatile.Natural gas prices in North America,despite adequate levels of inventory in storage,3also remain strong(and volatile).It is widely recognized that reserve targetsin the United States continue to decline and the development of meaning-ful capac

30、ity to import liquefied natural gas(LNG)is still years away.It is difficult to predict when and how these conditions will change.Predicting the future is always tenuous;in the current environment,even foolhardy.We can say demand for crude oil and natural gas has never beengreater,and the outlook is

31、not likely to change in the foreseeable future.Many of the worlds emerging economies led by China and India,thetwo most populous countries,comprising a third of the worlds popula-tion are making important strides in improving their standards of livingand their appetites for energy appear insatiable.

32、Whether their economiesmay or may not support their appetites is beyond present knowledge.The challenges for the energy industry the worlds largest andarguably most important sector are numerous.The most critical chal-lenge is continuing to find,develop and produce new oil and gas reservesto meet th

33、is ever-growing demand.Although your company is but a small part of the upstream sector,we believe Apache is an important spoke in the wheel.As a pureupstream producer,with no refineries,chemical plants or retail market-ing,our challenge is to continue to grow our production and reserves ina cost-ef

34、fective and environmentally compatible manner for the benefitof our shareholders and to help meet overall energy needs.In 2004,Apache increased its worldwide reserves 17 percent to 1.94billion barrels of oil equivalent.This marked our 19th consecutive year ofreserve growth.Apaches average daily prod

35、uction grew 7.4 percent forthe year on a barrel-of-oilequivalent basis.Our production has nowincreased in 25 of the last 26 years.Since 1999,Apaches production has more than doubled,from204,000 boe per day to 448,000 boe per day in 2004.We enter 2005 stronger,in terms of opportunities and financial

36、flexibil-ity,to meet the challenge of continued growth of production and reserves.We have a strong,diverse portfolio of drilling opportunities and,while exploration,developmentand acquisition expenditures totaled$3.4 billion in 2004,Apache ended the year with debt at 24 per-cent of capitalization,pr

37、oviding flexibility as we address the challenges ahead.We also increased thecommon stock dividend from an annual rate of 24 cents per share to 32 cents per share.Withadjustments for splits and stock dividends,the quarterly cash dividend has,since 2001,increasedeach year and doubled.As part of our ac

38、quisition from ExxonMobil in September,we farmed-in nearly 400,000 acres incentral Alberta,supplementing our existing 6.5 million gross acres of prospective properties in Canada.4Central Region Pumper Travis Carnes,an eight-year Apache veteran,makes hisrounds at the Northeast Drinkard Unit Satellite

39、 No.1,a pipeline gathering system formany ofthe wells flowing into the units central tank battery,which handles an aver-age of 2,000 barrels of oil,13 MMcf of natural gas and 9,700 barrels of water perday.Travis is responsible for 51 producing wells and 50 injection wells.By closelyregulating daily

40、injection rates and pressures,he increased his areas production by20 percent in 2004.Travisfather,Rickey,also is part of the Apache family,servingas a senior pumper working near Andrews,Texas.In the mature fields of the Permian Basin of West Texas and New Mexico,thesense of urgency,hard work and exp

41、erience of Apaches field personnel pay divi-dends every day.The Central Regions estimated proved reserves increased 20 percent in 2004through hard work by Travis and his fellow Apaches,acquisitions,and the regionsmost active drilling year ever.The region completed 268 of 283 wells drilled duringthe

42、year.Production averaged 202 MMcf of gas and 21,300 barrels of liquid hydro-carbons per day.Apaches transaction with ExxonMobil added 23 Permian Basin fields that haveextensive opportunities for production enhancements and drilling.At year-end,Apache had grown production at several fields,including

43、a sharp increase at theEastVealmoor Unit in Howard County,Texas.The 2005 Permian drilling program is spread among the newly acquired proper-ties and opportunities on Apaches sizable acreage base.Apache also is the third largest gas producer in Oklahoma and plans to continueits activity in establishe

44、d plays such as the Red Fork and Deep Springer,which havelong been a staple at Apache.The Central Region is expanding its developing GraniteWash play in the Texas Panhandleand,through new fracture stimulationmethods,has found an economic sec-ond-wind in several older fields locat-ed in East Texas.5:

45、00am Northeast Drinkard Unit,Lea County,New Mexico5The ExxonMobil acquisition also added produc-tion of approximately 8,000 barrels of oil and 7 MMcfof gas per day in the Permian Basin of West Texas andNew Mexico.We also acquired rights to 66,000 unde-veloped acres in the Permian Basin,where we curr

46、ent-ly produce approximately 24,000 barrels of oil and 53MMcf of gas per day.In the Gulf of Mexico,we added to our alreadysizable position with the acquisition of AnadarkoPetroleums Gulf of Mexico Outer Continental Shelfproperties,comprising 232 offshore blocks(664,000net acres),which should provide

47、 additional drillingopportunities in the years ahead.Morgan Stanleyacquired 20 MMboe of Anadarkos proved reserves.Apache acquired 60 MMboe and gained control ofthe underlying acreage and the potential upside.Apache is now the largest acreage holder on theShelf,where we operate 395 platforms.In Egypt

48、,we were awarded four new conces-sions in the Western Desert,where we are the largestoil producer and second-largest natural gas producer.These new concessions will add 1.7 milliongross prospective acres to our existing base of 14.3 million gross acres.With the appraisal and devel-opment of Apaches

49、Qasr discovery our largest ever we expect significant production growthlater in 2005.Discovery of the deep-Jurassic Qasr field,with estimated reserves of 2 trillion cubic feetof gas and 40 million barrels of condensate,provides encouragement that we will continue to findnew Jurassic fields in the We

50、stern Desert with significant gas and condensate potential.In the North Sea,we saw our labors at the Forties Field begin to bear fruit.Since taking over oper-ations in the second quarter of 2003,after acquiring the field from BP p.l.c.,we have steadily boostedoil production to 61,700 barrels per day

51、 in the fourth quarter of 2004.The Forties Field,which com-menced production in November 1975 and peaked at 500,000 barrels of oil a day in 1978,still has alot of life left in it.Ironically,at current oil prices and production,the field is generating more cash flowtoday than when production was at i

52、ts peak.In Australia,we had very good drilling success and have a strong portfolio for 2005.However,we did a poor job of planning our drilling program for 2004.We scheduled our exploration pro-gram ahead of our more reliable extension drilling program,and we will be playing catch-up in ouroil produc

53、tion all year.On the natural gas side,its a different story.With our John Brookes development due to comeon production in mid-2005,we should add approximately 60 MMcf of gas per day to our currentAustralian production,an increase approaching 50 percent.6Apache President and Chief Executive Officer G

54、.Steven Farris,left,reviews Gulf ofMexico drilling prospects with Gulf Coast Region Senior Staff Reservoir Engineer BillFetter,right,and Geologic Adviser Doug Webb.One of the most active drillers in the region,the company started 2005 with six drillingrigs operating in the Gulf,plus two onshore rigs

55、 and a barge rig operating on southLouisiana acreage.The Gulf Coast Region is Apaches largest with 2004 average daily production of 54,800barrels of liquid hydrocarbons and 445 MMcf of gas.Apache is the largest acreage holder and the second largest producer in Gulf waters to1,200 feet deep.The GulfC

56、oast Region also operates Apaches properties onshore along the Texas andLouisiana Gulf Coast,including more than 250,000 acres in South Louisiana.Acquisitions including the Anadarko transaction in 2004 and asset purchases from Shell andBP in 2003 are important because the Gulfs rapid decline rates r

57、equire Apache to replenish itsdrilling inventory.The Anadarko transaction was significant because it was a rare opportunity tobuy assets that had not been fully developed by an independent producer with an exploration-ori-ented Gulf strategy.7:36am Gulf Coast prospect meeting,Houston,Texas7Worldwide

58、,Apache has many opportunities,but the flip side ofhigher oil and gas prices has been a steady increase in costs.Servicecosts,drilling costs and steel costs have grown significantly over the pastyear.Unless these costs level out,we may reduce our drilling expendi-tures,as we did in 2001.This is the

59、case especially in the Lower 48 U.S.states,where reserve targets continue to decrease in size.Apache confronts the challenges of cyclical commodity prices andvolatile service costs through a disciplined approach to controlling costsand a measured approach to risk-taking.Supporting our culture are sy

60、s-tems that measure performance and ensure we are all speaking the samelanguage and focused on achieving the same goals.We have developed ways to complete cost-effective,prudent assetacquisitions even when prices are high.Often,we hedge production fromnewly acquired assets in order to protect acquis

61、ition economics in thecritical early years.Because of our strong balance sheet,however,wehave the ability to fund exploration and development activities withouthedging our base production.The benefits of higher prices flow to ourshareholders in the form of increased earnings.So,too,do the risks oflo

62、wer prices often experienced during our 50 years in the industry.We have developed a core-area portfolio that balances oil versusgas,long-lived reserves versus rapidly declining fields,and consistentproduction in mature basins together with opportunities for growththrough exploration.Apache allocate

63、s capital from our internally generated cash flow toeach segment of our portfolio based on our assessments of drillinginventory,a disciplined approach to future price expectations,andanticipated contributions to production.Then,we measure how effectiveweve been,in terms of rate of return,and how eff

64、icient weve been,measuredby the cost of finding new reserves.While Apaches values,culture and systems help us control manyfactors,there are other aspects of our business that are influenced byoutside forces beyond our control.The United States still suffers from the lack of a coherent energy poli-cy

65、,and the prospects for bipartisan legislation to correct this situationremain poor.With the potential of adequate LNG imports still three to fiveyears away,continued volatility in natural gas prices remains a certainty.The executive branch of government has proposed comprehensive legislation that wo

66、uldencourage development of alternative fuels,promote conservation,and provide access to prospec-tive domestic resources in an environmentally responsible manner.It is the very least that the nation8Apache Egypt General Manager and ExecutiveVice President Rodney J.Eichler visits a class in thefirst

67、school for girls built by the company in the vil-lage of Abu Sir,located about 10 miles south of theGiza Pyramids.In addition to fulfilling its mainmission of providing energy to drive the economyandraise living standards,Apache strives to be a good corporate citizen andan unofficial U.S.ambassador

68、wherever the company operates.Apache ishelping raise money to construct a number of schools aimed at providingeducational opportunities for Egyptian girls.Gross operated production in Egypt continued to rise during 2004,reach-ingarecord 107,100 barrels ofoil and 306 MMcfofgas per day in December.For

69、 the year,net production averaged 52,200 barrels of oil and 138 MMcf ofgas.An active drilling program and the Qasr gas development program sig-nal further growth in 2005.Thecompanys 2005 drilling program will target deep Jurassic gas/conden-sate structures like Qasr and shallow oil drilling programs

70、 at Khalda,Umbarka and East Bahariya.Apache currently is acquiring 1,300 squaremiles of 3-D seismic data,supplementing its existing inventory of 4,500square miles of 3-D data.This should provide additional opportunities in thehands of the companys skilled geologists and geophysicists.Apache added pr

71、oved reserves of more than 100 MMboe in Egypt in2004,including the companys share of 1.75 trillion cubic feet of gas reservesat Qasr,the largest discovery in its history.Production from the Qasr fielddevelopment program is expected to begin during summer 2005,rampingup to 150 MMcf and 5,000 barrels

72、of condensate per day around year-end.11:00am Apache girls school,Abu Sir,Egypt9Senior Staff Production Engineer Ken Leong supervises coiled-tubing-nitrogen-fracture stimulation on a coalbedmethane(CBM)well in Apache Canadas Nevis Field.Nitrogen is pumped into the well under high pressure to crack(f

73、racture or“frac”)the coal,enabling gas to flow more freely.Kens main responsibility is maximizing production atNevis,Canadas largest coalbed methane field,which is now flowing 50 MMcf of CBM gas per day.During 2004,Apaches production in Canada averaged 327 MMcfofgas and 27,900 barrels ofliquid hydro

74、carbonsper day.Apaches newest acreage plays in Canada are four packages totaling 382,000 acres acquired in a farm-out fromExxonMobil.Apache plans to drill at least 250 wells over the first two years of the agreement.Apache earns itsinterest section-by-section,and the company is off to a fast start,w

75、ith 50 wells in the fourth quarter of 2004 anda similar number planned in the first quarter of 2005.The new acreage fits well with Apaches asset portfolio in Canada,which comprises large acreage plays withhigh working-interest ownership places such as Zama,Hatton,Provost and Nevis.The North and Sout

76、h GrantLands in the ExxonMobil farmout pro-vide additional CBM potential.At Zama,where Apache produces7,800 barrels of liquids and 75 MMcf ofgas per day,the company has 1.2million gross acres and 590 loca-tions in inventory.Many of the locations are shallow,low-production,slow-decline gas wellsthat

77、are inexpensive to drill.At Hatton,where current gross production is 80MMcf per day,Apache has 1,800 loca-tions in its inventory;at Nevis,withcurrent total production of 96 MMcfper day,Apache has 350,000 acres and610 locations in inventory.Provost,a674,000-acre play,is producing 75MMcf per day with

78、1,200 locations ininventory.3:12pmCoalbed methane well,Nevis Field,Alberta,Canada 10with the worlds largest appetite for energy can do,and we hope Congress can generate the politi-cal fortitude to look beyond opinion polls and do what is good for our country.Clearly,the industry and policymakers are

79、 no closer to providing transparency in the marketplace.Three years after the demise of Enron and the self-crippling of several natural gas marketing compa-nies(traders),little has changed that would ensure consumers that the prices they are paying for gasat the burner tip are not subject to manipul

80、ation.Although several gas traders have pleaded guilty to price manipulation,with others awaitingtrial,and many of the so-called leading firms in the marketing arena have paid hefty settlements,neither Congress nor the Federal Energy Regulatory Commission(FERC)has demanded transparen-cy in the marke

81、tplace.This is unfortunate because market integrity would benefit consumers andproducers alike.Mandatory reporting of energy market data,backed up by penalties for lying,wouldgo a long way toward remedying the situation.Throughout our history,outreach to others,inacts of responsibility and caring,ha

82、s been at the coreof Apaches value system.In all of our endeavors inthis critical arena,our co-workers and directors arefully involved.We support a wide variety of worthy institutionsand initiatives in the arts,education and communityservice in the communities in which we operate,nationally and inte

83、rnationally.The corporation iden-tifies some initiatives and some are selected by ourpeople,whose donations are matched by Apache.In2004,Apache supported 454 different causes.We alsosupport the volunteer efforts of our employees.Over Apaches 50 years of outreach,our highestpriority has been educatio

84、n.Our involvement ispredicated on the value of lifetime learning as a com-ponent of personal and societal wellbeing.Toadvance this goal,Apache,its directors,officers andemployees support a series of initiatives that sharecommon characteristics.The Ucross Foundation,which will celebrate its25th anniv

85、ersary in 2006,is best-known in the artsthrough more than 1,100 fellowships that havebeen granted for its Artists-in-Residence program.Three recipients have received Pulitzer Prizes,whilemany others have been recognized nationally andinternationally.11Projects Team Leader Ian Grant,right,and Operati

86、ons Supervisor,Maintenance,Paul Mansoninspect a newly refurbished gas turbine on Apaches Forties Field Delta Platform.The turbine powers acompressor,which is part of the gas lift system,circulating high-pressure gas down the producing wellsto assist in lifting oil up the well bore from the producing

87、 reservoir.Apaches experienced workforce istackling projects to extend the life of the largest field in the United Kingdom sector of the North Sea.Production increases at Forties the anchor ofApaches newest core area were driven by successfuldrilling and a maintenance program,which continues to impr

88、ove efficiency.Average daily productionof approximately 61,700 barrels per day in the fourth quarter of 2004 was more than 50 percent abovethe fourth quarter level in 2003.For the year,Apache averaged 52,800 barrels of oil per day.During 2004,Apache completed 12 of 17 wells drilled as part of a$362

89、million capital program,which also included$150 million of maintenance and operations capital.The completion of a gas and power ring and the installation of new electric generators during 2005will increase the efficiency of the field,cut consumption of diesel fuel and reduce emissions of green-house

90、 gases.Other projects include new control systems on all platforms,new cranes and increasedwater injection capacity.6:15pmDelta Platform,Forties Field,UK North Sea 12The land itself provides another element of the Ucross mission.The 22,000-acre ranch offers opportunities to study and improveconserva

91、tion and holistic land practices.Finally,Ucross offers a venue for discussions of issues importantto Wyoming,the West and the nation.At times,it has provided a set-ting to contemplate national energy policy,Wyomings future andother important topics.More recently,Ucross served as host for a project,f

92、unded byApache,two other responsible energy companies and the U.S.Department of Energy to provide baseline studies on coalbedmethane and its impact on water resources,particularly in the aridRocky Mountain region.Top scientists from Stanford University,theUniversity of Wyoming,and the Montana Bureau

93、 of Mines andGeology provided their expertise,and research results will be pub-lished this year by the Wyoming Geological Survey.In April,44 top minds from industry and academia will gath-er at Ucross for dialogue on imaging using controlled-sourceelectromagnetics potentially the most important deve

94、lopment inthe science of oil and gas exploration since the development ofthree-dimensional seismic in the 1980s.The idea for the four-dayforum,sponsored by the Society of Exploration Geophysicists,was originated by Mike Bahorich,an Apache executive vice pres-ident who is widely respected in the indu

95、stry for his own inno-vations in 3-D seismic and within Apache for his leadership indeveloping Apaches application of technology in our exploration and production activities.The goal at Ucross is to cast a reflection into the future from the cultural mirror of our livesand times.As you can see,we br

96、oadly define our commitment to education.Bringing this commitment back to a more familiar level,through the Fund for Teachers initia-tive we are now in our seventh year of providing summer sabbaticals and growth experiences forteachers from pre-kindergarten through high school.These teachers,chosen

97、for the creativity of pro-posals of their own design,return from their experiences motivated to transfer their enthusiasm andcommitment for lifetime learning to their bright-eyed pupils.Fund for Teachers and its predecessorshave created opportunities for more than 1,000 teachers,444 of them in 2004,

98、with awards of up to$5,000 each.Now in eight cities,the program is building an endowment and a network to supporta broader national effort.Please visit www.fundforteachers.org to learn more.Apaches directors have contributed,as have many of our people.Apache has set the pace bycontributing$10 millio

99、n.The company anticipates providing another$5 million to Fund forTeachers.In 2004,Houston-based Energy for Teachers gained commitments for more than$3 mil-lion,mainly from our colleagues in the oil and gas industry.13Marine Biologist Fiona Maxwell(foreground)checks thetracking tag on a Hawksbill Sea

100、 Turtle as it lays eggs on abeach near Apaches gas plant on Varanus Island.Meg Green,also a marine biologist,discusses the find with Joe Fry,a con-tract civil engineer working with the Apache Projects Team onthe installation of a new gas plant.Each day,Apache demonstrates that it can conduct oil and

101、gas operations at its Varanus Island hub in harmony with theunique environment of the island and its surrounding waters.Apache had an active year in Australia in 2004,completing16 of 31 wells and branching out from its base in theCarnarvon Basin to the Perth and Gippsland basins.Production averaged

102、118 MMcf of gas and 25,200 barrels ofoil per day in 2004.The Linda gas development and the Monet oil field com-menced production during 2004.In the Exmouth Sub-Basin,Apache drilled the Stickle and Harrison discoveries,which willbe integrated into the Ravensworth/Crosby oil development.Keys to succes

103、s in 2005 will be early development of new oilproduction from the Flag Sandstone formations near VaranusIsland and commencement of gas production from the JohnBrookes Field to fulfill the requirements of two new gas con-tracts that are expected to add approximately 60 MMcf perday to production.Apach

104、es 2005 drilling program is focusedin the Carnarvon Basin but also includes wells in the Perthand Gippsland basins.8:12pmTagging turtles on Varanus Island,Western Australia 14As Apache has grown,we have identified ways to translate our commitment to education over-seas,as well.In Egypt Apaches large

105、st international region we see a large and growing country with apopulation seeking to improve its standard of living.As the largest U.S.investor and third-largestoil and gas producer in Egypt,we have a significant direct and indirect impact on the nations econ-omy and welfare.The need for education

106、 is great.As we describe elsewhere in this report,many young Egyptian girls particularly in rural areas have not had an opportunity to attend school,to learn to read,write andperform basic arithmetic.On one of our board of directors trips to Egypt,we visit-ed a one-room school built for young girls

107、through a govern-ment initiative led by Mrs.Suzanne Mubarak,Egypts first lady,who is committed to the continued development of a modern,stable nation.Recognizing an important initiative and supported by seniormanagement and the board of directors,Apache people in Cairojumped in.Working in concert wi

108、th Egypts National Council forChildhood and Motherhood,we hired an architectural firmstaffed by impressive young Egyptian professionals and paid forconstruction of a prototype school in Abu Sir,about 10 milesfrom the famous Giza Pyramids.The school opened in October,with eager students andteachers t

109、rained in modern educational techniques,workingtogether in an airy,enthusiastic environment.Mrs.Mubarak ded-icated the school in December a memorable event for all of us.Also during 2004,we created the legal,financial and opera-tional structures and partnerships necessary to accelerate theconstructi

110、on of more schools.We have a new nonprofit organ-ization,Springboard Educating the Future,to accept contribu-tions in the United States to fund school construction in Egypt,and a strong partner in Egypt,the Sawiris Foundation.Already,we have donations from Apache directors,officers,co-workersand fri

111、ends to build several more schools.In 2005,we will con-tinue to build schools.We want to create a system that ultimate-ly will produce 1,000 one-room schools for 35,000 girls.Springboards Web site,pro-vides more information and photos of the school and its students.Apaches outreach in Egypt extends

112、to a project that we havenamed Nile Weavers,through which we seek to improve living15standards of Egyptian women by purchasing their handicrafts and distributing the products in theUnited States through volunteer groups.This effort has involved many of our people in Houston andCairo,and Nile Weavers

113、 products have made it to Florida,Minnesota,New Yorkand Texas.For more information,please visit on theInternet.Throughout this report,we have emphasized themes of individual initiative andinnovation at Apache.We find these ideas are vulnerable to increasing layers ofrules and regulations that seem t

114、o be aimed at introducing an adversarial relation-ship between American corporations,their boards of directors and investors.Apache has a 50-year record of forthright disclosure and a board of direc-tors of strong-minded men and women with varied experiences and a sharedcommitment to integrity and t

115、ransparency.With the active involvement of ourboard,we have built an organization that is firmly aligned with the interests ofour loyal shareholder base.We have grown the company and created sharehold-er wealth through good times and bad.However,we are beset and besieged by groups that have sprung u

116、p in thename of better corporate governance from the position of having held a mini-mum of$2,000 worth of Apache shares for a year.We question whether some ofthese groups know what industry we are in or the range of challenges we face,or even whether we deliver value for our shareholders.In the name

117、 of shareholder democracy,these groups either purposely orinadvertently erect barriers between boards and management as well as divertthe attention of companies away from strategic concerns and toward single-issuepolitical agendas that have little to do with corporate success(and much to dowith coun

118、terproductive harassment).These self-appointed,single-issue advocates sometimes influence the votes ofshareholders on a variety of governance issues.Please consider these proposalscarefully,and reflect on the broad vision required to guide a successful enterprise.Consider also,ourtrack record for cr

119、eating shareholder value,for safe,environmentally responsible operations,and forconducting Apaches affairs in an ethical,responsible and accountable manner.Providing leadership on the board of directors of a large corporation for the benefit of its share-holders,employees and communities is a seriou

120、s responsibility.It should not be,as the recentlyremoved head of the California Public Employees Retirement System asserted,a“bully pulpit”foradvancing political agendas.One matter submitted by the board of directors for a vote by our shareholders at our annualmeeting is the next stage in our succes

121、sful effort to align employees with shareholders in buildingshareholder value.In 2004,Apache employees were rewarded for driving a$9 billion increase in shareholder value overthe past four years.Approximately 1,900 Apache employees received shares when Apaches closing stock16Drillers work around the

122、 clock to complete an injection well on Apaches Zhao Dong Block.In the shallowwaters of Bohai Bay,China,some of the newest Apaches are building bridges and adapting to the companysculture and sense of urgency.With completion of the second phase of drilling at the Zhao Dong field,gross oil production

123、 reached25,000 barrels per day during the fourth quarter of 2004.Apaches fourth-quarter net production of 9,000barrels per day was about 13 percent higher than in the prior-year comparable period.For the year,Apacheaveraged 7,600 barrels per day.Apaches attention to safety,its focus on the bottom li

124、ne,and the lessons for the Chinese oil industry werethe subject of a September 2004 story in China Oil News.Chinese members of the crew were concernedwhen Apaches drilling supervisor abandoned efforts to recover drilling tools stuck in one ofthe wells,the jour-nal reported.“The drilling supervisor e

125、xplained that it wasnt worthwhile to spend$3 million to recover toolsworth$1.5 million.This made Chinese staff realize that costs and benefits should be the first priority.”9:06pmDrilling from ZhaoDong platform,Bohai Bay,China17price exceeded the threshold of$43.29 per share for 10 trading days in A

126、pril,and moreshares when the closing stock price exceeded the second threshold of$51.95 per share for10 days in October.(The goals reflected the impact of stock dividends and splits on the pre-split targets of$100 and$120 per share.)Ninety percent of the shares were awarded to non-executive employee

127、s.The awards will be distributed over a three-year period,so the ShareAppreciation Plan also serves as an effective retention tool.Recently,your board of directors voted to ask shareholders to approve a new planthat provides incentives for employees to double the share price again,from$54 pershare a

128、t the date of the board approval to$108 per share by the end of 2008,with aninterim goal to be achieved by the end of 2007.If both goals are achieved,the sharehold-er value of the company will have grown by an additional$18 billion.Like the programlaunched in 2000,this is an ambitious goal that will

129、 require more than hard work itwill require and motivate creativity and innovation by the Apache team.We believe ouremployees are up to the challenge;we ask for your support.While Apaches share price advanced in 2004 and our long-term performance con-tinues to compare positively with our peers and t

130、he major indexes,the share prices ofcompanies in our sector still trail the price-earnings ratios of the broader market.Much of the trading volume of our shares is the result of traders and speculatorsmoving in and out to profit from small moves in the market.Among the reasons for this:the cyclical

131、nature of commodity markets and concernsthat some technological development could substantially affect the worlds need for hydro-carbons.In our judgment,those who would base their decisions on such factors are,basi-cally,guessing.Against those factors,we would stake our 50-year history of finding an

132、d developingreserves and production a record of growth that reaches across the commodity price cycles and our assessments of the fundamental factors that are driving rising worldwide demandfor oil and gas.Shareholders who have stayed with Apache over the years have benefited substantiallyfrom this l

133、ong-term performance while many of the traders have missed the boat.Apaches 50th year was one of solid achievement on many fronts,made possible in large partby of the loyalty and support of our shareholders and employees over the decades.We believe thatour recent exploration successes,coupled with o

134、ur ability to acquire assets at prudent pricesthroughout the commodity cycles,show that we will be able to continue to add to shareholder valuein constructive ways.We hope you share our enthusiasm for the future.We appreciate your commitment and pledge ours to continuing to build Apache to last.Than

135、k you for being part of our present and future.Raymond PlankG.Steven FarrisChairman and FounderPresident,Chief Executive Officerand Chief Operating Officer.1810:35pm Raymond Plank in Houston,TexasAs Apache has grown from its modest beginnings in Minneapolis in 1954 to its currentworldwide operations

136、,Chairman and Founder Raymond Plank has continued to communi-cate with shareholders to connect investors to the strategy,culture and values that helpedbuild Apache and continue to drive the company.He is shown here at home at the end of theday,writing letters to shareholders.Its his regular routine.

137、Raymond continues to impress upon all Apaches that this is a shareholder-driven compa-ny.Through stock-based incentive programs,employees at all levels become Apache owners,forging an identity of interest with shareholders that helps spur performance.Whether addressing supply and demand or ethical i

138、ssues,Raymonds bluntness is leg-endary.He was the first to expose corruption in the Enron-dominated energy merchant-trading sector,taking on some of the most powerful,politically connected companies toexpose a flawed system that threatened the nations economic wellbeing.Raymonds boldness and tenacit

139、y echo across Apache as we build on our heritage andlook to the future.19Board of DirectorsCorporate OfficersFrederick M.Bohen(3)(5)Executive Vice President and Chief Operating Officer,The Rockefeller UniversityG.Steven Farris(1)President,Chief Executive Officer andChief Operating Officer,Apache Cor

140、porationRandolph M.Ferlic,M.D.(1)(2)Founder and Former President,Surgical Services of the Great Plains,P.C.Eugene C.Fiedorek(2)Private Investor,Former ManagingDirector,EnCap Investments L.C.A.D.Frazier,Jr.(3)(5)Chairman,WolfCreek Broadcasting,Inc.Patricia Albjerg Graham(4)Charles Warren Research Pro

141、fessorof the History of American Education,Harvard UniversityJohn A.Kocur(1)(3)Attorney at Law;Former Vice Chairmanof the Board,Apache CorporationGeorge D.Lawrence(1)(3)Private Investor;Former Chief Executive Officer,The Phoenix Resource Companies,Inc.F.H.Merelli(1)(2)Chairman of the Board,Chief Exe

142、cutive Officer and President,Cimarex Energy Co.Rodman D.Patton(2)Former Managing Director,Merrill Lynch Energy GroupCharles J.Pitman(4)Former Regional President-Middle East/Caspian/Egypt/India,BPAmoco plc;Sole Member,Shaker Mountain Energy Associates,LLCRaymond Plank(1)Chairman of the Board,Apache C

143、orporationJay A.Precourt(4)Chairman of the Board and Chief Executive Officer,Scissor Tail Energy LLC;Chairman of the Board,Hermes Consolidated,Inc.Raymond PlankChairman of the BoardG.Steven FarrisPresident,Chief ExecutiveOfficer and Chief Operating OfficerMichael S.BahorichExecutive Vice President-E

144、xploration and ProductionTechnologyJohn A.CrumExecutive Vice President andManaging Director,Apache North Sea Ltd.Rodney J.EichlerExecutive Vice President andGeneral Manager,Apache Egypt CompaniesRoger B.PlankExecutive Vice President and Chief Financial OfficerFloyd R.PriceExecutive Vice President Eu

145、rasia,Latin America andNew VenturesJon A.JeppesenSenior Vice PresidentP.Anthony LannieSenior Vice President and General CounselJeffrey M.BenderVice President-Human ResourcesMichael J.BensonVice President-Security Thomas P.ChambersVice President Corporate PlanningJohn J.ChristmannVice President Busin

146、ess DevelopmentMatthew W.DundreaVice President and TreasurerRobert J.DyeVice President-Investor RelationsJanice K.HartrickVice President and AssociateGeneral CounselAnthony R.Lentini,Jr.Vice President-Public andInternational AffairsJanine J.McArdleVice President Oil and Gas MarketingThomas L.Mitchel

147、l Vice President and ControllerW.Kregg Olson Vice President CorporateReservoir EngineeringJon W.SauerVice President-TaxCheri L.Peper Corporate Secretary(1)Executive Committee(2)Audit Committee(3)Management,Development and Compensation Committee(4)Corporate Governance and Nominating Committee(5)Stock

148、 Option Plan Committee2021(In thousands,except per-common-share data)For the Year Ended December 31,200420032002REVENUES AND OTHER:Oil and gas production revenues$5,308,017$4,198,920$2,559,748 Other 24,560(8,621)125 5,332,577 4,190,299 2,559,873OPERATING EXPENSES:Depreciation,depletion and amortizat

149、ion 1,222,152 1,073,286 843,879 Asset retirement obligation accretion 46,060 37,763 International impairments 12,813 19,600 Lease operating costs 864,378 699,663 457,903 Gathering and transportation costs 82,261 60,460 38,567 Severance and other taxes 93,748 121,793 67,309 General and administrative

150、 173,194 138,524104,588 China litigation provision 71,216 Financing costs:Interest expense 168,090 169,090155,667 Amortization of deferred loan costs 2,471 2,1631,859 Capitalized interest (50,748)(52,891)(40,691)Interest income(3,328)(3,290)(4,002)2,669,494 2,259,3741,644,679PREFERRED INTERESTS OF S

151、UBSIDIARIES 8,66816,224INCOME BEFORE INCOME TAXES 2,663,083 1,922,257898,970 Provision for income taxes 993,012 827,004344,641INCOME BEFORE CHANGE IN ACCOUNTING PRINCIPLE1,670,071 1,095,253 554,329 Cumulative effect of change in accounting principle,net of income tax(1,317)26,632NET INCOME 1,668,754

152、 1,121,885 554,329 Preferred stock dividends5,6805,68010,815INCOME ATTRIBUTABLE TO COMMON STOCK$1,663,074$1,116,205$543,514BASIC NET INCOME PER COMMON SHARE:Before change in accounting principle$5.10$3.38$1.83 Cumulative effect of change in accounting principle .08$5.10$3.46$1.83DILUTED NET INCOME P

153、ER COMMON SHARE:Before change in accounting principle$5.04$3.35$1.80 Cumulative effect of change in accounting principle(.01).08$5.03$3.43$1.80 STATEMENT OF CONSOLIDATED OPERATIONS Apache Corporation&Subsidiaries22(In thousands)For the Year Ended December 31,200420032002CASH FLOWS FROM OPERATING ACT

154、IVITIES:Net income$1,668,754$1,121,885$554,329 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation,depletion and amortization1,222,1521,073,286843,879 Provision for deferred income taxes444,906546,357137,672 Asset retirement obligation accretion46,06037,763

155、Amortization of deferred loan costs2,4712,1631,859 International impairments12,81319,600 Cumulative effect of change in accounting principle,net of income tax1,317(26,632)Other39,69432,9239,531 Changes in operating assets and liabilities,net of effects of acquisitions:(Increase)decrease in receivabl

156、es(296,383)(94,295)(122,830)(Increase)decrease in inventories(659)(4,216)717(Increase)decrease in drilling advances and other(35,761)(19,881)(26,116)(Increase)decrease in deferred charges and other(35,328)(29,520)496 Increase(decrease)in accounts payable 182,45468,17632,219 Increase(decrease)in accr

157、ued expenses28,43111,227(16,595)Increase(decrease)in advances from gas purchasers(18,331)(16,246)(14,574)Increase(decrease)in deferred credits and noncurrent liabilities(18,258)(9,903)(39,469)NET CASH PROVIDED BY OPERATING ACTIVITIES3,231,5192,705,9001,380,718CASH FLOWS FROM INVESTING ACTIVITIES:Add

158、itions to property and equipment(2,456,488)(1,594,936)(1,037,368)Acquisition of ExxonMobil properties(348,173)Acquisition of Anadarko properties(531,963)Acquisition of BP properties(1,140,156)Acquisition of Shell properties(203,033)Acquisition of Louisiana properties(258,885)Acquisition of Occidenta

159、l properties(22,000)(11,000)Proceeds from sales of oil and gas properties4,04258,9447,043 Proceeds from short-term investments,net101,723 Other(78,431)(57,576)(37,520)NET CASH USED IN INVESTING ACTIVITIES(3,411,013)(2,958,757)(1,236,007)CASH FLOWS FROM FINANCING ACTIVITIES:Long-term borrowings544,82

160、41,780,8701,467,929 Payments on long-term debt(283,400)(1,613,362)(1,553,471)Dividends paid(90,369)(72,832)(68,879)Common stock activity21,595583,83730,708 Treasury stock activity,net12,4724,3781,991 Cost of debt and equity transactions(2,303)(5,417)(6,728)Repurchase of preferred interests of subsid

161、iaries(443,000)Other54,265 NET CASH PROVIDED BY(USED IN)FINANCING ACTIVITIES257,084234,474(128,450)NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS77,590(18,383)16,261CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR33,50351,88635,625CASH AND CASH EQUIVALENTS AT END OF YEAR$111,093$33,503$51,886STATE

162、MENT OF CONSOLIDATED CASH FLOWS Apache Corporation&Subsidiaries23(In thousands)December 31,ASSETS20042003CURRENT ASSETS:Cash and cash equivalents$111,093$33,503 Receivables,net of allowance 939,736 639,055 Inventories 157,293 125,867 Drilling advances 82,889 58,062 Prepaid assets and other 57,771 42

163、,585 1,348,782 899,072PROPERTY AND EQUIPMENT:Oil and gas,on the basis of full cost accounting:Proved properties 19,933,041 16,277,930 Unproved properties and properties under development,not being amortized 777,690 795,161 Gas gathering,transmission and processing facilities 966,605 828,169 Other 28

164、4,069 239,548 21,961,405 18,140,808 Less:Accumulated depreciation,depletion and amortization(8,101,046)(6,880,723)13,860,359 11,260,085OTHER ASSETS:Goodwill,net 189,252 189,252 Deferred charges and other 104,087 67,717$15,502,480$12,416,126LIABILITIES AND SHAREHOLDERS EQUITYCURRENT LIABILITIES:Accou

165、nts payable$542,074$300,598 Accrued operating expense 80,741 72,250 Accrued exploration and development 341,063 212,028 Accrued compensation and benefits 83,636 56,237 Accrued interest 32,575 32,621 Accrued income taxes 78,042 18,936 Derivative instruments21,273 63,542 Other 103,487 64,166 1,282,891

166、 820,378LONG-TERM DEBT 2,588,390 2,326,966DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES:Income taxes 2,146,637 1,697,238 Advances from gas purchasers 90,876 109,207 Asset retirement obligation 932,004 739,775 Derivative instruments 31,417 5,931 Other 225,844 183,833 3,426,778 2,735,984COMMITMENT

167、S AND CONTINGENCIESSHAREHOLDERS EQUITY:Preferred stock,no par value,5,000,000 shares authorized Series B,5.68%Cumulative Preferred Stock,100,000 shares issued and outstanding98,38798,387 Common stock,$0.625 par,430,000,000 shares authorized,334,912,505 and 332,509,478 shares issued,respectively 209,

168、320 207,818 Paid-in capital 4,106,182 4,038,007 Retained earnings 4,017,339 2,445,698 Treasury stock,at cost,7,455,002 and 8,012,302 shares,respectively(97,325)(105,169)Accumulated other comprehensive loss(129,482)(151,943)8,204,421 6,532,798$15,502,480$12,416,126CONSOLIDATED BALANCE SHEET Apache Co

169、rporation&Subsidiaries24(In thousands)Comprehensive IncomeSeries BPreferredStockSeries CPreferredStockCommonStockPaid-InCapitalRetainedEarningsTreasuryStockAccumulatedOtherComprehensive Income(Loss)Total ShareholdersEquityBALANCE AT DECEMBER 31,2001$98,387$208,207$185,288$2,803,825$1,336,478$(111,88

170、5)$(101,817)$4,418,483 Comprehensive income(loss):Net income$554,329 554,329 554,329 Currency translation adjustments 5,328 5,328 5,328 Commodity hedges(16,322)(16,322)(16,322)Marketable securities(125)(125)(125)Comprehensive income$543,210 Cash dividends:Preferred (10,815)(10,815)Common($.19 per sh

171、are)(56,565)(56,565)Five percent common stock dividend 395,820(395,820)Common shares issued 1,240 26,044 27,284 Conversion of Series C Preferred Stock (208,207)7,803 200,404 Treasury shares issued,net 666 1,326 1,992 Other 691 691BALANCE AT DECEMBER 31,2002 98,387 194,331 3,427,450 1,427,607(110,559

172、)(112,936)4,924,280 Comprehensive income(loss):Net income$1,121,885 1,121,885 1,121,885 Commodity hedges(39,007)(39,007)(39,007)Comprehensive income$1,082,878 Cash dividends:Preferred (5,680)(5,680)Common($.22 per share)(72,200)(72,200)Five percent common stock dividend58125,333(25,914)Common shares

173、 issued 12,906 579,107 592,013 Treasury shares issued,net 4,109 5,390 9,499 Other 2,008 2,008BALANCE AT DECEMBER 31,2003 98,387 207,818 4,038,007 2,445,698(105,169)(151,943)6,532,798 Comprehensive income(loss):Net income$1,668,754 1,668,754 1,668,754 Commodity hedges 22,461 22,461 22,461 Comprehensi

174、ve income$1,691,215 Cash dividends:Preferred (5,680)(5,680)Common($.28 per share)(91,433)(91,433)Five percent common stock dividend Common shares issued 1,502 56,660 58,162 Treasury shares issued,net 11,144 7,844 18,988 Other 371 371BALANCE AT DECEMBER 31,2004$98,387$209,320$4,106,182$4,017,339$(97,

175、325)$(129,482)$8,204,421STATEMENT OF CONSOLIDATED SHAREHOLDERS EQUITY25(In thousands)Comprehensive IncomeSeries BPreferredStockSeries CPreferredStockCommonStockPaid-InCapitalRetainedEarningsTreasuryStockAccumulatedOtherComprehensive Income(Loss)Total ShareholdersEquityBALANCE AT DECEMBER 31,2001$98,

176、387$208,207$185,288$2,803,825$1,336,478$(111,885)$(101,817)$4,418,483 Comprehensive income(loss):Net income$554,329 554,329 554,329 Currency translation adjustments 5,328 5,328 5,328 Commodity hedges(16,322)(16,322)(16,322)Marketable securities(125)(125)(125)Comprehensive income$543,210 Cash dividen

177、ds:Preferred (10,815)(10,815)Common($.19 per share)(56,565)(56,565)Five percent common stock dividend 395,820(395,820)Common shares issued 1,240 26,044 27,284 Conversion of Series C Preferred Stock (208,207)7,803 200,404 Treasury shares issued,net 666 1,326 1,992 Other 691 691BALANCE AT DECEMBER 31,

178、2002 98,387 194,331 3,427,450 1,427,607(110,559)(112,936)4,924,280 Comprehensive income(loss):Net income$1,121,885 1,121,885 1,121,885 Commodity hedges(39,007)(39,007)(39,007)Comprehensive income$1,082,878 Cash dividends:Preferred (5,680)(5,680)Common($.22 per share)(72,200)(72,200)Five percent comm

179、on stock dividend58125,333(25,914)Common shares issued 12,906 579,107 592,013 Treasury shares issued,net 4,109 5,390 9,499 Other 2,008 2,008BALANCE AT DECEMBER 31,2003 98,387 207,818 4,038,007 2,445,698(105,169)(151,943)6,532,798 Comprehensive income(loss):Net income$1,668,754 1,668,754 1,668,754 Co

180、mmodity hedges 22,461 22,461 22,461 Comprehensive income$1,691,215 Cash dividends:Preferred (5,680)(5,680)Common($.28 per share)(91,433)(91,433)Five percent common stock dividend Common shares issued 1,502 56,660 58,162 Treasury shares issued,net 11,144 7,844 18,988 Other 371 371BALANCE AT DECEMBER

181、31,2004$98,387$209,320$4,106,182$4,017,339$(97,325)$(129,482)$8,204,421 Apache Corporation&Subsidiaries26(In millions of dollars,except as otherwise indicated)Restated for PoolingAs Originally ReportedBefore Restatement for Pooling200420032002200120001999199819971996199519941994Financial Data Oil an

182、d gas production revenues 5,308.04,198.92,559.82,823.02,308.91,159.0773.5985.4835.8657.5 542.4 497.5 Other24.6(8.6).1(13.6)(6.9)2.7(0.7)(4.4)1.2.3 10.0 7.9 Consolidated revenues5,332.64,190.32,559.92,809.42,302.01,161.7772.8981.0837.0657.8 552.4 505.4 Income(loss)attributable to common stock1,663.11

183、,116.2543.5703.8693.1186.4(131.4)154.9121.420.2 45.6 42.8 Net cash provided by operating activities3,231.52,705.91,380.71,905.01,517.4638.2471.5723.8490.5332.1 357.8 335.6 Oil and gas capital expenditures (including acquisitions)3,455.73,073.81,252.62,280.22,194.71,842.3649.1911.4939.91,133.1524.948

184、2.5 Total assets15,502.512,416.19,459.98,933.77,482.05,502.53,996.14,138.63,432.42,681.5 2,036.6 1,879.0 Long-term debt2,588.42,327.02,158.82,244.42,193.31,879.71,343.31,501.41,235.71,072.1 719.0 657.5 Shareholders equity8,204.46,532.84,924.34,418.53,754.62,669.41,801.81,729.21,518.51,091.8 891.1 81

185、6.2 Common shares outstanding at year-end327.5324.5302.5287.9285.6263.3225.8215.5208.0178.7 160.9 141.9 Amortization of oil and gas properties-recurring1,149.21,003.3783.6760.2547.5415.6359.7358.9296.0288.4 249.3 224.1 Effective tax rate(benefit)37.3%43.0%38.3%39.7%40.1%41.7%(31.0)%40.1%39.3%39.0%31

186、.7%33.5%Future cash inflows66,103.446,959.033,806.420,584.939,081.914,951.66,502.78,559.911,427.46,455.7 4,101.1 3,564.6Shareholder Data Basic net income(loss)per common share 5.10 3.46 1.83 2.44 2.54.75(.58).74.61.12.28.30 Cash dividends per common share.26.21.19.12.12.12.12.12.12.12.12.12 Sharehol

187、ders equity per common share 24.75 19.83 15.95 14.28 12.07 8.96 7.54 8.02 7.30 6.11 5.54 5.75Operations Data Natural gas production(Bcf)452.0444.3394.3411.5304.0239.5215.4222.2205.3210.6 176.4 155.9 Oil,condensate and natural gas liquids production(MMbbls)88.778.358.957.044.634.727.725.220.219.114.5

188、13.6 Total production(MMboe)164.1 152.3 124.6 125.6 95.2 74.6 63.6 62.2 54.4 54.2 43.9 39.6 Average price of natural gas(per Mcf)4.91 4.61 2.87 3.70 3.64 2.16 1.93 2.28 2.03 1.58 1.78 1.83 Average price of oil(per barrel)35.24 27.76 24.78 23.18 27.41 18.45 12.70 19.24 20.94 17.21 15.76 15.77 Oil,con

189、densate and NGL reserves(MMbbls):Proved developed662.7593.7414.4411.8354.0302.0178.0203.1183.2137.5 100.0 89.4 Proved undeveloped269.4250.2222.4187.6168.5113.273.070.752.132.8 10.6 10.5 Natural gas reserves(Bcf):Proved developed3,844.13,541.03,206.53,203.82,664.81,873.71,450.11,554.31,435.31,298.5 1

190、,184.9 910.3 Proved undeveloped2,183.91,335.0848.1801.5718.9477.9722.1317.5190.0203.4 131.2 106.0 Total proved reserves(MMboe)1,936.71,656.51,312.51,266.91,086.4807.2613.0585.7506.2420.6 330.0 269.3 Reserve life(in years)11.810.910.510.111.410.89.69.49.37.8 7.5 6.8ELEVEN-YEAR STATISTICAL SUMMARY27(I

191、n millions of dollars,except as otherwise indicated)Restated for PoolingAs Originally ReportedBefore Restatement for Pooling200420032002200120001999199819971996199519941994Financial Data Oil and gas production revenues 5,308.04,198.92,559.82,823.02,308.91,159.0773.5985.4835.8657.5 542.4 497.5 Other2

192、4.6(8.6).1(13.6)(6.9)2.7(0.7)(4.4)1.2.3 10.0 7.9 Consolidated revenues5,332.64,190.32,559.92,809.42,302.01,161.7772.8981.0837.0657.8 552.4 505.4 Income(loss)attributable to common stock1,663.11,116.2543.5703.8693.1186.4(131.4)154.9121.420.2 45.6 42.8 Net cash provided by operating activities3,231.52

193、,705.91,380.71,905.01,517.4638.2471.5723.8490.5332.1 357.8 335.6 Oil and gas capital expenditures (including acquisitions)3,455.73,073.81,252.62,280.22,194.71,842.3649.1911.4939.91,133.1524.9482.5 Total assets15,502.512,416.19,459.98,933.77,482.05,502.53,996.14,138.63,432.42,681.5 2,036.6 1,879.0 Lo

194、ng-term debt2,588.42,327.02,158.82,244.42,193.31,879.71,343.31,501.41,235.71,072.1 719.0 657.5 Shareholders equity8,204.46,532.84,924.34,418.53,754.62,669.41,801.81,729.21,518.51,091.8 891.1 816.2 Common shares outstanding at year-end327.5324.5302.5287.9285.6263.3225.8215.5208.0178.7 160.9 141.9 Amo

195、rtization of oil and gas properties-recurring1,149.21,003.3783.6760.2547.5415.6359.7358.9296.0288.4 249.3 224.1 Effective tax rate(benefit)37.3%43.0%38.3%39.7%40.1%41.7%(31.0)%40.1%39.3%39.0%31.7%33.5%Future cash inflows66,103.446,959.033,806.420,584.939,081.914,951.66,502.78,559.911,427.46,455.7 4,

196、101.1 3,564.6Shareholder Data Basic net income(loss)per common share 5.10 3.46 1.83 2.44 2.54.75(.58).74.61.12.28.30 Cash dividends per common share.26.21.19.12.12.12.12.12.12.12.12.12 Shareholders equity per common share 24.75 19.83 15.95 14.28 12.07 8.96 7.54 8.02 7.30 6.11 5.54 5.75Operations Dat

197、a Natural gas production(Bcf)452.0444.3394.3411.5304.0239.5215.4222.2205.3210.6 176.4 155.9 Oil,condensate and natural gas liquids production(MMbbls)88.778.358.957.044.634.727.725.220.219.114.513.6 Total production(MMboe)164.1 152.3 124.6 125.6 95.2 74.6 63.6 62.2 54.4 54.2 43.9 39.6 Average price o

198、f natural gas(per Mcf)4.91 4.61 2.87 3.70 3.64 2.16 1.93 2.28 2.03 1.58 1.78 1.83 Average price of oil(per barrel)35.24 27.76 24.78 23.18 27.41 18.45 12.70 19.24 20.94 17.21 15.76 15.77 Oil,condensate and NGL reserves(MMbbls):Proved developed662.7593.7414.4411.8354.0302.0178.0203.1183.2137.5 100.0 8

199、9.4 Proved undeveloped269.4250.2222.4187.6168.5113.273.070.752.132.8 10.6 10.5 Natural gas reserves(Bcf):Proved developed3,844.13,541.03,206.53,203.82,664.81,873.71,450.11,554.31,435.31,298.5 1,184.9 910.3 Proved undeveloped2,183.91,335.0848.1801.5718.9477.9722.1317.5190.0203.4 131.2 106.0 Total pro

200、ved reserves(MMboe)1,936.71,656.51,312.51,266.91,086.4807.2613.0585.7506.2420.6 330.0 269.3 Reserve life(in years)11.810.910.510.111.410.89.69.49.37.8 7.5 6.8 Apache Corporation&Subsidiaries28(Thousands of barrels)(Millions of cubic feet)(Thousand barrelsof oil equivalent)Crude Oil,Condensate and Na

201、tural Gas LiquidsNatural GasUnitedStatesCanadaEgyptAustraliaNorthSeaOtherIntlTotalUnitedStatesCanadaEgyptAustraliaNorthSeaOtherIntlTotalMboeTotalProved developed reserves:December 31,2001230,01776,25059,18845,628699411,7821,407,5611,148,516338,707307,5091,5243,203,817945,751 December 31,2002240,8808

202、9,55451,16231,7461,033414,3751,444,6771,255,068246,529256,7903,4693,206,533948,797 December 31,2003265,13591,50154,88126,999147,8807,293593,689 1,565,8551,411,877337,844218,7453,9022,7503,540,9731,183,851 December 31,2004320,75287,91457,08418,919172,2605,721662,6501,722,8031,479,271474,028158,7896,8

203、042,3643,844,0591,303,327Total proved reserves:Balance December 31,2001321,437136,90580,98659,0031,057599,3881,675,7941,301,882453,233571,6892,7334,005,3311,266,943 Extensions,discoveries and other additions20,08231,36618,2274,22111,79385,689102,05070,0666,12328,9433,355210,537120,779 Purchases of m

204、inerals in place7,1095,05512,164154,45966,113220,57248,926 Revisions of previous estimates6,630159(8,140)10640(1,205)37,94420,900(37,480)223721,4232,366 Production(21,790)(9,846)(15,977)(11,082)(225)(58,920)(183,708)(120,210)(44,769)(42,998)(2,656)(394,341)(124,644)Sales of properties(46)(305)(351)(

205、2,446)(6,440)(8,886)(1,832)Balance December 31,2002333,422163,63974,79152,24812,665636,7651,784,0931,338,751370,667557,6563,4694,054,6361,312,538 Extensions,discoveries and other additions35,37815,64915,09011,71214,48964092,958113,552387,533217,455127,5161052,084848,245234,333 Purchases of minerals

206、in place48,886574309144,071193,840391,5104,51038,6384,423439,081267,019 Revisions of previous estimates95312648(2)(113)1,498 6,073(8,177)4,29212,1891,863 Production(28,098)(9,776)(17,356)(11,165)(10,680)(1,230)(78,305)(242,782)(116,263)(41,447)(40,537)(626)(2,607)(444,262)(152,349)Sales of propertie

207、s(1,176)(1,692)(2,868)(23,054)(671)(196)(23,921)(6,855)Balance December 31,2003389,365168,40673,17353,102147,88011,962843,8882,029,3921,605,683550,967683,2733,9022,7514,875,9681,656,549 Extensions,discoveries and other additions26,6001,10626,86510,42245,261186110,440291,303542,779452,50954,2723,5751

208、,0071,345,445334,681 Purchases of minerals in place84,37516538984,929268,38617,27312285,671132,541 Revisions of previous estimates(13,588)(1,207)(2,955)2(4)(348)(18,100)53,816(61,695)(18,572)11(26,449)(22,508)Production(27,867)(10,209)(19,099)(9,214)(19,338)(2,982)(88,709)(236,660)(119,669)(50,412)(

209、43,228)(685)(1,395)(452,049)(164,050)Sales of properties(408)(408)(657)(657)(518)Balance December 31,2004458,477158,26177,98454,312174,1888,818932,0402,405,5801,984,371934,492694,3186,8042,3646,027,9291,936,695 Proved oil and gas reserve quantities are based on estimates prepared by the Companys eng

210、ineers in accordance with Rule 4-10 of Regulation S-X.The Company engages Ryder Scott Company,L.P.Petroleum Consultants,as independent petroleum engineers,to review the Companys estimates of proved hydrocarbon liquid and gas reserves and provide an opinion letter on the reasonableness of Apaches int

211、ernal projections.During this review,they prepare independent projections for each reviewed property and determine if the Companys estimates are within engineering tolerance by geographical area.The independent reviews typically cover a large percentage of major value fields,international properties

212、,and new wells drilled during the year.During 2004,2003 and 2002,their review covered 79,78 and 68 percent of Apaches estimated reserve value,respectively.There are numerous uncertainties inherent in estimating quantities of proved reserves and projecting future rates of production and timing of dev

213、elopment expenditures.The following reserve data only represent estimates and should not be construed as being exact.OIL AND GAS RESERVE INFORMATION Apache Corporation&Subsidiaries29(Thousands of barrels)(Millions of cubic feet)(Thousand barrelsof oil equivalent)Crude Oil,Condensate and Natural Gas

214、LiquidsNatural GasUnitedStatesCanadaEgyptAustraliaNorthSeaOtherIntlTotalUnitedStatesCanadaEgyptAustraliaNorthSeaOtherIntlTotalMboeTotalProved developed reserves:December 31,2001230,01776,25059,18845,628699411,7821,407,5611,148,516338,707307,5091,5243,203,817945,751 December 31,2002240,88089,55451,16

215、231,7461,033414,3751,444,6771,255,068246,529256,7903,4693,206,533948,797 December 31,2003265,13591,50154,88126,999147,8807,293593,689 1,565,8551,411,877337,844218,7453,9022,7503,540,9731,183,851 December 31,2004320,75287,91457,08418,919172,2605,721662,6501,722,8031,479,271474,028158,7896,8042,3643,8

216、44,0591,303,327Total proved reserves:Balance December 31,2001321,437136,90580,98659,0031,057599,3881,675,7941,301,882453,233571,6892,7334,005,3311,266,943 Extensions,discoveries and other additions20,08231,36618,2274,22111,79385,689102,05070,0666,12328,9433,355210,537120,779 Purchases of minerals in

217、 place7,1095,05512,164154,45966,113220,57248,926 Revisions of previous estimates6,630159(8,140)10640(1,205)37,94420,900(37,480)223721,4232,366 Production(21,790)(9,846)(15,977)(11,082)(225)(58,920)(183,708)(120,210)(44,769)(42,998)(2,656)(394,341)(124,644)Sales of properties(46)(305)(351)(2,446)(6,4

218、40)(8,886)(1,832)Balance December 31,2002333,422163,63974,79152,24812,665636,7651,784,0931,338,751370,667557,6563,4694,054,6361,312,538 Extensions,discoveries and other additions35,37815,64915,09011,71214,48964092,958113,552387,533217,455127,5161052,084848,245234,333 Purchases of minerals in place48

219、,886574309144,071193,840391,5104,51038,6384,423439,081267,019 Revisions of previous estimates95312648(2)(113)1,498 6,073(8,177)4,29212,1891,863 Production(28,098)(9,776)(17,356)(11,165)(10,680)(1,230)(78,305)(242,782)(116,263)(41,447)(40,537)(626)(2,607)(444,262)(152,349)Sales of properties(1,176)(1

220、,692)(2,868)(23,054)(671)(196)(23,921)(6,855)Balance December 31,2003389,365168,40673,17353,102147,88011,962843,8882,029,3921,605,683550,967683,2733,9022,7514,875,9681,656,549 Extensions,discoveries and other additions26,6001,10626,86510,42245,261186110,440291,303542,779452,50954,2723,5751,0071,345,

221、445334,681 Purchases of minerals in place84,37516538984,929268,38617,27312285,671132,541 Revisions of previous estimates(13,588)(1,207)(2,955)2(4)(348)(18,100)53,816(61,695)(18,572)11(26,449)(22,508)Production(27,867)(10,209)(19,099)(9,214)(19,338)(2,982)(88,709)(236,660)(119,669)(50,412)(43,228)(68

222、5)(1,395)(452,049)(164,050)Sales of properties(408)(408)(657)(657)(518)Balance December 31,2004458,477158,26177,98454,312174,1888,818932,0402,405,5801,984,371934,492694,3186,8042,3646,027,9291,936,695 30Future cash inflows are based on year-end oil and gas prices except in those instances where futu

223、re natural gas or oil sales are covered by physical contract terms providing for higher or lower amounts.Operating costs,production and ad valorem taxes and future development costs are based on current costs with no escalation.The following table sets forth unaudited information concerning future n

224、et cash flows for oil and gas reserves,net of income tax expense.Income tax expense has been computed using expected future tax rates and giving effect to tax deductions and credits available,under current laws,and which relate to oil and gas producing activities.This information does not purport to

225、 present the fair market value of the Companys oil and gas assets,but does present a standardized disclosure concerning possible future net cash flows that would result under the assumptions used.(In thousands)United StatesCanada(1)EgyptAustraliaNorth SeaOtherInternationalTotal2004Cash inflows$32,55

226、7,246$17,140,078$6,233,328$3,065,332$6,783,414$323,963$66,103,361Production costs(8,185,633)(7,451,626)(818,876)(891,117)(4,098,870)(89,280)(21,535,402)Development costs(1,620,421)(584,160)(596,249)(422,045)(569,435)(25,220)(3,817,530)Income tax expense(7,342,348)(2,461,911)(1,790,617)(423,263)(617,

227、244)(42,314)(12,677,697)Net cash flows 15,408,844 6,642,381 3,027,586 1,328,907 1,497,865 167,149 28,072,73210 percent discount rate(7,414,246)(3,177,411)(1,165,331)(568,722)(418,169)(32,775)(12,776,654)Discounted future net cash flows(2)$7,994,598$3,464,970$1,862,255$760,185$1,079,696$134,374$15,29

228、6,0782003Cash inflows$23,117,256$12,533,197$3,999,829$2,737,289$4,193,438$378,032$46,959,041Production costs(6,012,893)(3,049,847)(545,505)(658,132)(2,622,103)(63,384)(12,951,864)Development costs(1,152,182)(451,491)(397,493)(397,206)(593,778)(17,431)(3,009,581)Income tax expense(4,834,389)(2,595,28

229、6)(997,847)(433,667)(195,756)(59,616)(9,116,561)Net cash flows 11,117,792 6,436,573 2,058,984 1,248,284 781,801 237,601 21,881,03510 percent discount rate(5,222,609)(3,353,451)(726,933)(536,921)(204,248)(59,029)(10,103,191)Discounted future net cash flows(2)$5,895,183$3,083,122$1,332,051$711,363$577

230、,553$178,572$11,777,8442002Cash inflows$17,550,514$9,597,042$3,820,016$2,436,477$402,311$33,806,360Production costs(4,442,214)(1,955,401)(501,511)(463,282)(61,905)(7,424,313)Development costs(662,686)(312,194)(421,454)(235,318)(19,600)(1,651,252)Income tax expense(3,875,478)(2,288,073)(963,906)(482,

231、883)(59,164)(7,669,504)Net cash flows 8,570,136 5,041,374 1,933,145 1,254,994 261,642 17,061,29110 percent discount rate(4,170,620)(2,633,601)(651,524)(373,032)(80,894)(7,909,671)Discounted future net cash flows(2)$4,399,516$2,407,773$1,281,621$881,962$180,748$9,151,620(1)Included in the estimated f

232、uture net cash flows are Canadian provincial tax credits expected to be realized beyond the date at which the legislation,under its provisions,could be repealed.To date,the Canadian provincial government has not indicated an intention to repeal this legislation.(2)Estimated future net cash flows bef

233、ore income tax expense,discounted at 10 percent per annum,totaled approximately$22.2 billion,$16.4 billion and$13.2 billion as of December 31,2004,2003 and 2002,respectively.FUTURE NET CASH FLOWS Apache Corporation&SubsidiariesStock DataDividendsPrice Range*per Share*HighLowDeclared Paid2004First Qu

234、arter$43.49$36.79$.0600$.0600Second Quarter45.9938.53.0600.0600Third Quarter57.0042.45.0800.0600Fourth Quarter55.1647.77.0800.08002003First Quarter$32.15$26.26$.0500$.0475Second Quarter34.6028.13.0500.0500Third Quarter35.0430.41.0600.0500Fourth Quarter41.6834.05.0600.0600*Per-share prices and divide

235、nd amounts have been adjusted to reflect the effects of the two-for-onestock split in 2003.The Company has paid cash dividends on its common stock for40 consecutive years through December 31,2004.Future divi-dend payments will depend upon the Companys level of earn-ings,financial requirements and ot

236、her relevant factors.Apache common stock is listed on the New York and Chicagostock exchanges and the NASDAQ National Market(symbolAPA).At December 31,2004,the Companys shares of commonstock outstanding were held by approximately 8,000 sharehold-ers of record and 226,000 beneficial owners.Also liste

237、d on theNew York Stock Exchange are:Apache Finance Canadas 7.75%notes,due 2029(symbol APA 29)Corporate OfficesOne Post Oak Central2000 Post Oak BoulevardSuite 100Houston,Texas 77056-4400(713)296-6000Independent Public AccountantsErnst&Young LLPFive Houston Center1401 McKinney Street,Suite 1200Housto

238、n,Texas 77010-2007Stock Transfer Agent and RegistrarWells Fargo Bank,N.A.Attn:Shareowner ServicesP.O.Box 64854South St.Paul,Minnesota 55164-0854(651)450-4064 or(800)468-9716Communications concerning the transfer of shares,lost certifi-cates,dividend checks,duplicate mailings or change of addressshou

239、ld be directed to the stock transfer agent.Shareholders mayaccess account information on the web site:http:/.Dividend Reinvestment PlanShareholders of record may invest their dividends automaticallyin additional shares of Apache common stock at the marketprice.Participants also may invest up to an a

240、dditional$25,000 inApache shares each quarter through this service.All bank servicefees and brokerage commissions on purchases are paid byApache.A prospectus describing the terms of the Plan and anauthorization form may be obtained from the Companys stocktransfer agent,Wells Fargo Bank,N.A.Direct Re

241、gistrationShareholders of record may hold their shares of Apache com-mon stock in book-entry form.This eliminates costs related tosafekeeping or replacing paper stock certificates.In addition,shareholders of record may request electronic movement ofbook-entry shares between their account with the Co

242、mpanysstock transfer agent and their broker.Stock certificates may beconverted to book-entry shares at any time.Questions regard-ing this service may be directed to the Companys stock transferagent,Wells Fargo Bank,N.A.Annual MeetingApache will hold its annual meeting of shareholders onThursday,May

243、5,2005,at 10 a.m.in the Ballroom,HiltonHouston Post Oak(formerly Doubletree Hotel Houston PostOak),2001 Post Oak Boulevard,Houston,Texas.Apache plans towebcast the annual meeting live;connect through the Apacheweb site:http:/Stock Held in“Street Name”The Company maintains a direct mailing list to en

244、sure thatshareholders with stock held in brokerage accounts receiveinformation on a timely basis.Shareholders wishing to be addedto this list should direct their requests to Apaches Public andInternational Affairs Department,2000 Post Oak Boulevard,Suite100,Houston,Texas,77056-4400,by calling(713)29

245、6-6157 or byregistering on Apaches web site:Form 10-K RequestShareholders and other persons interested in obtaining,withoutcost,a copy of the Companys Form 10-K filed with theSecurities and Exchange Commission may do so by writing toCheri L.Peper,Corporate Secretary,2000 Post Oak Boulevard,Suite 100

246、,Houston,Texas,77056-4400.Investor RelationsShareholders,brokers,securities analysts or portfolio managersseeking information about the Company are welcome to contactRobert J.Dye,Vice President of Investor Relations,at(713)296-6662.Members of the news media and others seeking informa-tion about the

247、Company should contact Apaches Public andInternational Affairs Department at(713)296-6107.Web site:http:/Shareholder Information31This annual report contains certain“forward-looking statements”as defined by the Private Securities Litigation ReformAct of 1995,including,without limitation,expectations

248、,beliefs,plans and objectives regarding Apaches capital expendi-tures and exploration and development plans,and the future prices of crude oil and natural gas.Among the importantfactors that could cause actual results to differ materially from those indicated by such forward-looking statementsare de

249、lays and difficulties in completing acquisitions and developing currently owned properties,the failure ofexploratory drilling to result in commercial wells,delays due to the limited availability of drilling equipment and per-sonnel,fluctuations in oil and gas prices,general economic conditions and t

250、he risk factors detailed from time to time inApaches periodic reports and registration statements filed with the Securities and Exchange Commission.Design:John Weaver Design,Houston,TexasPhotography:Jeff Heger PhotographyPrinting:Western Lithograph32Apache CorporationOne Post Oak Central2000 Post Oak BoulevardSuite 100Houston,Texas 77056-4400Web site:http:/