Apache Corporation (APA) 2005年年度報告「NYSE」.pdf

1、2Apache Corporation2005 Summary Annual ReportEstablished in 1954 with$250,000 of investor capital,Apache Corporation(NYSE,Nasdaq:APA),with$19.3 billion in assets,hasgrown to become one of the worlds top independent oil and gas exploration and production companies.Apaches U.S.operations arefocused in

2、 some of the nations most important 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 Texas.InCanada,Apache is active in British Columbia,Alberta,Saskatchew

3、an and the Northwest Territories.The company also has explorationand production operations in the Carnarvon,Perth and Gipplsand basins offshore Australia,Egypts Western Desert,the UnitedKingdom sector of the North Sea,China and Argentina.Mission Our mission is to build a dynamic,global exploration a

4、nd production company to provide oil and natural gas for the purpose of advancing the quality of human lives.We will conduct our business from a foundation of integrity and respect for people,their cultures and traditions.We derive benefit from the Earth and take our environmental responsibility ser

5、iously.Profit from our growing business is the glue that unites Apache employees,partners,suppliers and shareholders in the fulfillment of our long-term mission.Values Conduct business with honesty and integrity.Respect and invest in our greatest asset:our people.Conduct business with respect for pe

6、ople,cultures and traditions.Foster an entrepreneurial spirit;expect and reward innovation and creativity.Drive to succeed with a sense of urgency.ABBREVIATIONSMcf Thousand cubic feet(of gas)MMcfMillion cubic feetBcfBillion cubic feetTcfTrillion cubic feetBoeBarrels of oil equivalentMMboeMillion bar

7、rels of oil equivalentMbblsThousand barrelsSix Mcf of gas is the energy equivalent of one barrel of oil.AP A C H ECO R P O R A T EP R O F I L ECO N T E N T SPerformance Highlights 1Letter to Shareholders 2U.S.Gulf Coast Region 5Central Region 7Canada 8Egypt 10North Sea 12Australia Region 15Making a

8、Difference 16Statement of Consolidated Operations 17Statement of Consolidated Cash Flows 18Consolidated Balance Sheet 19Statement of Consolidated ShareholdersEquity20Eleven-Year Statistcal Summary 22Oil and Gas Reserve Information 24Future Net Cash Flows 26Officers and Directors 27Shareholder Inform

9、ation281PE R F O R M A N C EHI G H L I G H T S2 20 00 05 520042003Financial HighlightsRevenues$7 7,5 58 84 4$5,333$4,190Income attributable to common stock2 2,6 61 18 81,6631,116Diluted net income per common share7 7.8 84 45.033.43Cash from operations before changes in operating assets and liabiliti

10、es(a):Net cash provided by operating activities$4 4,3 33 32 2$3,232$2,706Changes in operating assets and liabilities4 41 12 219395Cash from operations before changes in operatingassets and liabilities$4 4,7 74 44 4$3,425$2,801Total assets$1 19 9,2 27 72 2$15,502$12,416Long-term debt2 2,1 19 92 22,58

11、82,327Shareholdersequity1 10 0,5 54 41 18,2046,533Cash dividends paid per common share.3 34 4.26.21Operational HighlightsOil and gas capital expenditures(including acquisitions and gasgathering,transmission and processing facilities)$3 3,8 85 57 7$3,594$3,118Natural gas production(MMcf/d)1 1,2 26 64

12、 41,2351,217Oil and condensate production(Mbbls/d)2 24 44 4242215Proved reserves(MMboe)2 2,1 11 17 71,9371,657(a)NON-GAAP FINANCIAL MEASURE:The annual report discusses Apaches cash from operations before changes in operating assets and liabilities.It is presented becausemanagement believes the infor

13、mation is useful for investors because it is used internally and widely accepted by those following theoil and gas industry as a financial indicator of a companys ability to generate cash to internally fund exploration and developmentactivities,fund dividend programs,and service debt.It is also used

14、 by research analysts to value and compare oil and gas explo-ration and production companies,and is frequently included in published research when providing investment recommendations.Cash from operations before changes in operating assets and liabilities,therefore,is an additional measure of liquid

15、ity,but is not ameasure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating,invest-ing,or financing activities.(dollars in millions,except per-share data)Year Ended December 31,2The year 2005 was rewarding and challenging.Our people were mo

16、re than upto the challenge.Driven by record-high commodity prices,Apache earned arecord$2.6 billion or$7.84 per diluted share,up 56 percent from 2004.Cashfrom operations before changes in operating assets and liabilities*totaled$4.7billion,up 39 percent from 2004,also an all-time high.In the face of

17、 two of theworst hurricanes to strike the Gulf of Mexico in recorded history,the strength ofour portfolio approach could not be more apparent.Despite the hurricanes,Apache still managed to increase production 1.4 percent,making 2005 the 26thout of the last 27 years we have grown production.Hurricane

18、 damage to Apaches production facilities as well as to pipelines andshore facilities owned by others reduced annual companywide productionapproximately 5 percent from what it otherwise would have been.But strong per-formance in our other regions,fueled by our active worldwide drilling program 2,383

19、wells with a 91 percent success rate enabled Apache not only toincrease our production in 2005,but also to increase reserves by 9.3 percent to arecord 2.1 billion barrels of oil equivalent,the 20th consecutive annual increase.We replaced 216 percent of production,98 percent through the drill bit,add

20、ing 358 million barrels of oil equivalent.The 2005 additions alone equalApaches size in 1994,two years after we moved to Houston.Over the last threeyears,Apache has replaced 271 percent of its reserves two-thirds of whichcame through the drill bit,spread across our portfolio.During 2005,we invested$

21、3.4 billion on exploration and production capital,excluding a$547 million non-cash accrual for future abandonment liability.Apache has long believed in the importance of building a diversified portfo-FE L L O WSH A R E H O L D E R S500%400%300%200%100%2015105US CentralGulf RegionCanadaNorth SeaAustr

22、aliaEgyptCompanywideASSETS($BILLIONS)EARNINGS($BILLIONS)NET CASH PROVIDED BYOPERATING ACTIVITIES($BILLIONS)THREE-YEAR AVERAGE RESERVE REPLACEMENTORGANIC*TOTAL01 02 03 04 05 3.02.52.01.51.00.501 02 03 04 05 5432101 02 03 04 05*(Additions through drilling and revisions)divided by production*Cash from

23、operations before changes in operating assets and liabilities is a non-GAAP measure;see reconciliation,page 1.3lio of assets from which to grow.Twenty years ago,the company was almostexclusively a western Oklahoma gas producer.While weve remained very activein Western Oklahoma,we also decided to bui

24、ld Apache into a company with amuch broader scope.In seeking new areas,we pursue opportunities with thepotential to build a business for the long term,rather than taking a one-block,one-well approach.We are attracted to areas with a business environment thatis conducive to profitable growth through

25、grassroots drilling and acquisitionactivities.In each core area,our goal is to build critical mass that can eventual-ly support a sustainable program of lower-risk,repeatable drilling opportuni-ties,balanced by higher-risk,higher-reward exploration.Over the last 20 years,as we have extended our reac

26、h,we have established sixcore areas.The four regions outside the United States represent 62 percent ofour production and 58 percent of our reserves.We have good geographic diver-sity,with no single basin contributing more than 27 percent of reserves or pro-duction.In all of our core areas,we have la

27、rge and visible producing assets andbroad undeveloped acreage positions that provide running room for the future.We also have developed balance in our ratio of oil and gas production andreserves.Although there are times when one product is in greater demand thanthe other,over the years we have learn

28、ed that attempting to focus exclusively oneither oil or gas is short-term folly.We recognize that we are not clairvoyant andthat a balanced product mix gives us upside market potential to both.We believe a company must have several core competencies in order to sur-vive and grow over the long term.A

29、 company must be able to both explore andexploit its asset base and must be able to acquire properties and add value tothem.ExxonMobil did not attain its size by simply drilling wells.You dont haveto look past that companys name to recognize the importance ofacquisitions inbuilding size and scope.Ov

30、er the years,Apache has become well known foracquiring and exploiting properties,and more recently we are beginning to benoticed for our exploration capabilities.The positions that we now enjoy in allof our core areas give us opportunity to sustain that effort.Because of our quest in the early 1990s

31、 to build critical mass through acqui-sitions,Apache is often viewed as a company that can grow only through suchtransactions.In reality,in 2005 we were among the top five operators in termsof drilling activity in the Gulf of Mexico,Western Oklahoma,Western Australia,the United Kingdom North Sea and

32、 the Western Desert of Egypt.We wereamong the top 10 in drilling activity in Canada and West Texas.None of theseareas are small by any standard.Over the past five years,we have investedCAPITALIZATION($BILLIONS)ANNUAL PRODUCTION(MMBOE)PROVED RESERVES(MMBOE)200150100502500200015001000500151296301 02 0

33、3 04 05 01 02 03 04 05 GAS LIQUID HYDROCARBONSEQUITYDEBT 01 02 03 04 05 GAS LIQUID HYDROCARBONS4U.S.GU L FCO A S T5approximately$13.5 billion,with more than 65 percent of the total spent onexploration and development activities.During that five-year period,we havegrown production by 75 percent and r

34、eserves by 95 percent.Each area in which we operate meshes well with at least one of our core com-petencies.It is important to recognize what each area provides to the overallportfolio and not try to make it deliver something it is not capable of providing.Take,for example,the Gulf of Mexico Shelf.R

35、ecently,some investors have sug-gested that we consider leaving the Shelf and redeploying that capital into otherareas or into a share buyback program.From a strategic standpoint,the Shelffitswell in our portfolio and consistently delivers high returns on capital employed,as well as cash flow signif

36、icantly in excess of our exploration and developmentspending in the region,year in and year out.The high cash flow helps fuel othercore areas that have growth potential.We take advantage of what the Shelf givesus and do not push the envelope for the sake of growth.Apaches entry into the Gulf started

37、 in 1981 when we partnered with Shell OilCompany at a time when the U.S.government began encouraging independentsto enter the Gulf.Until that era,it was almost exclusively the majorsplayground.Through an innovative,tax-efficient investment structure,Apache partneredwith one of the premier companies

38、in the Gulf of Mexico in an initiative that fos-tered a very good working relationship with Shell that has lasted 25 years;werestill proud ofthis relationship today.It was the catalyst for our 1992 acquisition ofproperties from Shell,which added to our foothold in the Gulf.Then,in 1993,Apache acquir

39、ed a financially troubled independent that was overextended indeveloping its Gulfdiscoveries.We paid$171 million for the Hall-Houston assets,which brought not only producing fields,but also significant development proj-ects and a number of undeveloped blocks on which to explore.Our strategy early on

40、 was to exploit around our base of production whileusing our existing infrastructure to leverage the returns on what we found.Wehave stuck to that game plan,and it has been a very effective business model foradding properties and production.In 1999,we took a giant leap forward with the acquisition o

41、f a large portion ofShells Shelf oil and gas properties.We acquired 125 MMcf per day of natural gasproduction and 25,000 barrels per day of oil production,but more important,weacquired 64 blocks on which we could drill wells and add value.The Shell acquisi-tion enabled us to gain critical mass acros

42、s the Gulf and enhance efficiencies ofour operations.After the transaction,our span extended across both the Texas andProduction39.8 MMboeEstimated Proved Reserves387 MMboeWells Drilled/Productive114/88Gross Acreage2,782,098WHY WERE THERE:Exploitation potential from large acreage position and mature

43、 infrastructure plays to an Apache corecompetency High margins;rapid return on investment Excess cash flow funds international growth Deep Shelf exploration potentialPhoto Left Apache generates substantial cash flowand high returns through continued exploitation ofproducing assets acquired in the Gu

44、lf of Mexico.In2006,Apache plans to drill 72 wells on the OuterContinental Shelf.PRODUCTION(MMboe)24%18%PROVED RESERVES(MMboe)2005 PORTFOLIO GULF COAST REGION 165.92,117 6U.S.CE N T R A L7Louisiana Gulf of Mexico Shelf,with operated daily production of 270 MMcf of gas and30,000 barrels of oil from 1

45、31 platforms.Since 1999,our pace of growth in the Gulf has accelerated significantly.In 2000,weacquired properties from Occidental Petroleum;in 2003,from both BP and Shell;and,in 2004,we added all of Anadarko Petroleums Shelf assets in that companys strategicexit from the area.From 1999 through 2005

46、,we invested$2.4 billion on Gulf acquisi-tions and spent an additional$1.8 billion on exploration and development activities onthe properties we purchased over this period.The Gulf has been and remains animportant part of our overall portfolio;one that,given the departure by other compa-nies,represe

47、nts a strong Apache niche.How do we respond to suggestions that Apache exit the Gulf?We believe the facts inthe accompanying chart speak for themselves:Apaches acquisitions have returned136 percent ofour investment,and as a result ofcontinued exploitation at year-endthese properties still had proved

48、 reserves of 220 MMboe,64 percent of the originallyacquired total.In 2006,we plan to drill 72 wells on the Shelf all on propertiesacquired since the 1999 Shell transaction.While our Gulf Coast region was battling the challenges presented by the hurri-canes,the diversification we have developed over

49、the years paid great dividends.Each of Apaches other core areas stepped forward to take up the slack.In the United States,our Central Region which comprises 56 percent of ApachesU.S.reserves across large acreage positions in western Oklahoma,the Permian BasinProduction23.4 MMboeEstimated Proved Rese

50、rves502 MMboeWells Drilled/Productive364/352Gross Acreage1,722,640WHY WERE THERE:Exploitation potential from large acreage position and mature infrastructure plays to an Apache core competency Sustainable growth Long reserve life Experience,technology drive operational efficienciesPhoto Left The Cen

51、tral Regions broad acreage posi-tions in the Permian Basin,western Oklahoma andEast Texas provide consistent returns from low-riskdrilling opportunities and operating efficiencies.2005 PORTFOLIO CENTRAL REGION PRODUCTION(MMboe)14%24%PROVED RESERVES(MMboe)165.92,117 APACHE GULF OF MEXICO ACQUISITIONS

52、:1992-2005(millions)InvestmentAcquisitions ($2,899)Additional capital($2,536)Lease level income$6,295Net investment returned$1,040 136%Remaining Reserves270 MMboe(64%of original)Future net lease level income*$11.6 billionFuture net lease level income discounted 10 percent(SEC10)*$7.8 billion*After c

53、apital-based on current strip pricing8and East Texas increased production by 17 percent and reserves by 11 percent in 2005.Production was fueled by the regions most active drilling program in history 364 wellswith a 97 percent success rate.Our early 2006 acquisition from Amerada Hess of eightproduci

54、ng fields in the Permian Basin along with another active drilling program sets thestage for double-digit growth in the region in the year ahead.If a“resource play”is defined as a large acreage position,low-risk drilling opportunitiesand reliable production,then Apaches Canadian operations represent

55、a perfect fit.Fueled by our most active Canadian drilling program ever,the regions natural gasproduction increased 14 percent.Apache drilled 1,674 wells in Canada across our 7 mil-lion acres in 2005(mainly at Nevis,Hatton and on acreage acquired in the ExxonMobilfarm-in agreements of 2004 and 2005)a

56、dding proved reserves of 105 MMboe.Withacquisition and land costs rising in Canada,the farm-ins provided a way for Apache toearn acreage through drilling on 1,815 sections in Alberta with no upfront costs.ExxonMobil retains a carried interest in the fields.We will be developing this acreagethrough d

57、rilling for years to come.Apache is the leading company employing coiled-tubing drilling in Canada.Thislower-cost method enables Apache to undertake large-scale programs to drill shallowwells across our Canadian acreage.In 2005,Apache commenced production from the Midale carbon dioxide(CO2)enhanced

58、oil recovery project,which is expected to extend the life ofthe field by 25 yearsand provide an important environmental benefit by sequestering CO2transported fromthe Dakota Gasification Co.in Beulah,North Dakota.Internationally,Apaches Egyptian operations increased production by 10 percent in2005,f

59、ueled by the start-up ofour Qasr gas development and an active drilling program.Apache added 67 MMboe of proved reserves in 2005.The start-up of the Qasr gas development marks a milestone in Apaches history.Discovered by Apache in 2003,the Qasr gas/condensate field is the largest field everfound by

60、Apache more than 2 trillion cubic feet of gas and 50 million barrels of esti-mated recoverable reserves.Apaches 10.7 million acres across the vast Western Desert provides opportunity forgrowth over an extended period.At shallow depths,the Cretaceous Upper Bahariya forma-tion represents a sizable res

61、ource play with more than 150 million barrels of undevelopedpotential.Deeper intervals offer outstanding exploration potential in 30 to 40 conventionalreservoirs from lower Cretaceous to Jurassic that are within established producing trends.By year-end 2006,Apache expects to have nearly 9,000 square

62、 miles of 3-D seismicacross our extensive Western Desert acreage.This treasure trove of data in the hands ofProduction31.7 MMboeEstimated Proved Reserves565 MMboeWells Drilled/Productive1,674/1,551Gross Acreage6,993,051WHY WERE THERE:Large acreage position provides multi-year inventory for low-risk

63、drilling Extensive seismic database Exploitation opportunities that play to an Apache core competency Exploration upside Photo Right Apaches most active drilling programcontributed to a 14 percent increase in the CanadaRegions natural gas production in 2005.2005 PORTFOLIO CANADA REGION PRODUCTION(MM

64、boe)19%27%PROVED RESERVES(MMboe)165.92,117 9CA N A D A10Apaches technical teams is providing growth opportunities in Egypt for 2006and beyond.According to industry reporting service IHS,Apache drilled 16 ofthe 33 total discoveries made in Egypt in 2005.We plan to drill about 175 wellsin 2006,includi

65、ng 20 deep-Jurassic wells.In another transaction that closed in early 2006,Apache sold our undevelopedWest Mediterranean deepwater gas assets for$413 million.In our view,we receiveda good price for an asset that would have required$550 million ofadditional invest-ment and several years to bring onli

66、ne.Our highly skilled Apache Egypt technicalstaff will be able to concentrate on the long-term potential of our Western Desertcore holding.Apache had not booked deepwater West Med reserves.In the North Sea,production from Apaches Forties Field increased 24 percentand reserves increased 12 percent in

67、 2005 from 18 wells that added 45 million bar-rels.Since acquiring this field in 2003,Apache has invested$400 million to improveits efficiency and,as an added benefit,also reduced emissions ofgreenhouse gases.Forties is a legacy asset the largest field ever discovered in the UnitedKingdom sector oft

68、he North Sea,with cumulative production of2.6 billion bar-rels.Our revised assessment,using the latest reservoir modeling technology,indicates that the field originally contained oil in place of approximately 5 bil-lion barrels,about 800 million barrels above earlier estimates.Based on an esti-mated

69、 recovery factor of 60 percent,we think there may be an additional 300million to 400 million barrels of recoverable reserve potential at Forties.With the 3-D seismic survey completed in 2005,we now have three different 3-D surveys presenting snapshots at different times in the Forties Fields 30-year

70、history,giving Apaches geoscientists an opportunity to use“4-D”seismic analy-sis.(The fourth dimension is time.)Using each survey,Apaches experts trackedhow the seismic images changed over time,giving them a better sense of whereto pick the next drilling locations.In 2006,we plan to drill 14 wells a

71、t Forties,which should enable continued strong reserve growth;weve also slated a five-wellexploration program beyond Forties,including two high-potential wildcat wells.Our extensive acreage position in Australia provides further avenues for long-term growth,particularly in the Exmouth Basin,where we

72、 drilled five discover-ies in 2003 and 2004 with gross reserves totaling about 300 million barrels.Weare planning to begin an eight-well exploration program in 2006.In the shorter term,gas production will increase with commencement of theBurrup Fertilsers gas supply contract,which is contracted to a

73、dd 50 millioncubic feet per day.We are planning several Flag sandstone oil wells that provideProduction30.2 MMboeEstimated Proved Reserves271 MMboeWells Drilled/Productive121/104Gross Acreage10,668,548WHY WERE THERE:3-D seismic coverage leads to exploration success 16 of Egypts 33 discoveries record

74、ed in 2005 were drilled by Apache Resource play with large acreage position,extensive exploitation and exploration potential that fits with two Apache core competencies Egypts fourth-largest producer,largest U.S.investorPhoto Right Apache expects to have approximately9,000 square miles of 3-D seismi

75、c coverage in Egyptby year-end 2006,providing fodder for the companysskilled exploration teams.2005 PORTFOLIO EGYPT REGION PRODUCTION(MMboe)18%13%PROVED RESERVES(MMboe)165.92,117 11EG Y P T12additional oil production potential.Apache added proved reserves of 32 MMboe in Australia in 2005.In January

76、2006,Apache announced an expanded commitment to Argentinathrough the purchase of Pioneer Natural Resources assets in that country for$675 million.Although Argentina has suffered serious economic and political turmoil inrecent years,we believe this major hydrocarbon-producing area is right forApache

77、based on our experience from a small operation there over the last fiveyears;the countrys favorable geology and sizable remaining oil and gas reservepotential;Argentinas improving economy and increasing energy demand;recent government moves to relax prices controls on natural gas;and explo-ration up

78、side.Our exploitation core competency makes this transaction anexcellent fit for both Apache and Argentina.Summing up,after 51 years of growth,Apache is in an excellent position tocontinue the trend.We have:Large acreage positions and deep inventories of drilling prospects in proven oil and gas prod

79、ucing provinces;Several completed transactions that provide reserves and/or acreage under favorable economic terms(good relationships with a number ofother companies may provide additional opportunities);and An aggressive and contrarian culture that will continue to drive Apache forward.We have pres

80、ented Apaches strategy and outlook for continued growth.Now,we will discuss the factors that undermine our industrys ability to find anddevelop oil and gas to advance living standards.One lesson that hedge funds and other short-term players have learned is thatcapital can be moved across industries

81、and across international borders on amoments notice.Oil and gas producing nations including our own government should recognize this reality.There is a temptation to try to extract a greatershare of the revenue stream from oil and gas exploration and production compa-nies through taxes or contract t

82、erms.However,nations that succumb to such temp-tation will find fewer companies willing to invest in developing their resources.Less than 15 percent ofthe worlds oil and gas resources are in private hands.Theremainder is controlled by governments and state-owned oil companies.Theseentities must bala

83、nce their nationalistic urge to control the revenue stream with theneed to attract the capital and technical expertise to maximize their resources.Production24 MMboeEstimated Proved Reserves197 MMboeWells Drilled/Productive23/15Gross Acreage683,709WHY WERE THERE:Topside improvements drive increased

84、production New reservoir model increases estimate of original oil in place in a legacy field Exploration blocks provide new potential for growthPhoto Right Apache drilled 18 wells at the FortiesField in 2005 while increasing production by 24 per-cent and reserves by 12 percent.The company plansaddit

85、ional drilling at Forties as well as five explo-ration wells on other blocks.2005 PORTFOLIO NORTH SEA REGION PRODUCTION(MMboe)14%9%PROVED RESERVES(MMboe)165.92,117 13NO R T HSE A14AU S T R A L I A15In the United States,the chronic failure of political leadership to develop ener-gy policies that woul

86、d encourage and sustain domestic production has increasedprice volatility and our dependence on unstable regions of the world as well asexacerbated the trade deficit.Now,with a perceived“crisis”ofhigh prices and highdemand,Congress is once again considering policy solutions.Little good is likelyto e

87、merge as the politicians preen for television rather than confront the issues.Because the basis of our business is providing commodities that are essentialfor advancing standards of living,we have applied Apaches sense of urgencyand entrepreneurial culture to initiatives that share this same goal on

88、 a person-to-person basis.Our employees invest their own time and money(which is matched byApache)to support grassroots organizations in their communities throughoutthe world.In 2005,Apache supported 278 different causes from education tocommunity service to youth programs to the arts.Apache focuses

89、 its philanthropic activity on education and life-long learning,broadly defined.We support the Ucross Foundations artists in residence;holis-tic ranching and tree planting in Wyoming;Fund for Teacherssummer learningand exploration experiences for pre-kindergarten through high school teachers;and Spr

90、ingboardEducating the Futures girl-friendly schools in rural Egypt.To learn more about these please see page 16 of this report.We live in a world and operate in an industry that constantly presents unan-ticipated challenges.Our goal at Apache remains to build an enterprise that canprovide sustained

91、growth throughout commodity price cycles,hundred-yearstorms and other surprises.We believe that our portfolio of core areas and ourcapable,energetic employees provide the means to achieve that goal.Thanks forsticking with us.Production13.1 MMboeEstimated Proved Reserves189 MMboeWells Drilled/Product

92、ive36/16Gross Acreage10,903,580WHY WERE THERE:Large acreage position provides multi-year drilling inventory High-potential exploration acreage Strategic infrastructure provides operational niche and marketing advantage.Photo Left In Australia,Flag sandstone wells near thestrategic Varanus Island pro

93、cessing and transporta-tion hub provide production potential.Apache also isan active explorer in the Exmouth,Perth andGippsland basins.2005 PORTFOLIO AUSTRALIA REGION PRODUCTION(MMboe)8%9%PROVED RESERVES(MMboe)165.92,117 Raymond Plank Founder and Chairman of the Board G.Steven FarrisPresident,Chief

94、Executive Officer and Chief Operating Officer16Over Apaches 51-year history,we have remained committed to profitable growth and to stewardship of the Earth and the humanspirit.Through a diverse portfolio of highly focused,high-impact projects that share the common goal of advancing human potential,A

95、pache is proud to lend a hand and make a difference.A quarter century ago,several of us at Apache joined with others to establish the Ucross Foundationin Wyoming.The foundationis best-known in the arts through more than 1,100 fellowships that have been granted through its Artists-in-Residence progra

96、m.Alumni of this program have received Broadways Tony Awards,Pulitzer Prizes and other national and international recognition.Also in Wyoming,the 22,000-acre Ucross Ranch provides opportunities to study and improve conservation and holistic landpractices.And,in 2005,Apache launched a tree-planting i

97、nitiative that will benefit the environment by enhancing the natural sur-roundings and sequestering carbon dioxide.All of us recall a teacher who,at some time in our formative years,provided inspiration through caring,leadership and energy.Through Fund for Teachers,we are now in our eighth year of p

98、roviding summer sabbaticals and growth experiences for teachers frompre-kindergarten through high school across the nation.Teachers,chosen for the creativity of proposals of their own design,return from their experiences motivated to teach and trans-fer their enthusiasm and commitment for lifetime l

99、earning to their bright-eyed pupils.Fund for Teachers has created opportunitiesfor more than 2,000 teachers,486 of them in 2005,with awards of up to$5,000 each.A very special program pioneered by Apache in Egypt made significant progress in 2005.As the largest U.S.investor and fourth-largest oil and

100、 gas producer in Egypt,we have a significant direct and indirect impact on the nations economy and welfare and a com-mitment to help improve the standard of living of all Egyptians.Many young Egyptian girls particularly in rural areas have not had an opportunity to attend school,to learn to read,wri

101、teand perform basic arithmetic.To help reverse that trend,Egypt has launched a program to build one-room schools for girls.Our initiative,Springboard Educating the Future,is working with Egypts National Council for Childhood and Motherhood andthe Sawiris Foundation for Social Development to build sc

102、hools in several ofEgypts rural provinces.We have applied Apaches tech-nical expertise and sense of urgency to the program,setting an initial goal to build 200 schools by the end of 2006.The program received an important boost in 2005,when U.S.first lady Laura Bush and Egyptian first lady Suzanne Mu

103、barak vis-ited an Apache-built school in Abu Sir,near Cairo.Mrs.Bush,inspired by the eager,enthusiastic students and teachers workingtogether,remarked that the school program should become a model throughout the Middle East.More recently,President Bushmentioned girlseducation as an important interna

104、tional development goal in his State of the Union address.To learn more about these Apache outreach initiatives,visit the following Web sites:www.ucrossfoundation.org;www.fund-forteachers.org;and www.springboarded.org.We invite you to join our employees,directors,friends and others to support thesew

105、orthy philanthropic programs.MA K I N GADI F F E R E N C E17Statement of Consolidated Operations(In thousands,except per-common-share data)For the Year Ended December 31,200520042003REVENUES AND OTHER:Oil and gas production revenues$7,457,291$5,308,017$4,198,920 Other 126,953 24,560(8,621)7,584,244

106、5,332,577 4,190,299OPERATING EXPENSES:Depreciation,depletion and amortization 1,415,682 1,222,152 1,073,286 Asset retirement obligation accretion 53,720 46,060 37,763 International impairments 12,813 Lease operating costs 1,040,475 864,378 699,663 Gathering and transportation costs 100,260 82,261 60

107、,460 Severance and other taxes 453,258 93,748 121,793 General and administrative 198,272 173,194 138,524 China litigation provision 71,216 Financing costs:Interest expense 175,419 168,090 169,090 Amortization of deferred loan costs 3,748 2,471 2,163 Capitalized interest(56,988)(50,748)(52,891)Intere

108、st income(5,856)(3,328)(3,290)3,377,990 2,669,494 2,259,374PREFERRED INTERESTS OF SUBSIDIARIES 8,668INCOME BEFORE INCOME TAXES 4,206,254 2,663,083 1,922,257 Provision for income taxes 1,582,524 993,012 827,004INCOME BEFORE CHANGE IN ACCOUNTING PRINCIPLE2,623,7301,670,0711,095,253 Cumulative effect o

109、f change in accounting principle,net of income tax (1,317)26,632NET INCOME 2,623,730 1,668,754 1,121,885 Preferred stock dividends 5,680 5,680 5,680INCOME ATTRIBUTABLE TO COMMON STOCK$2,618,050$1,663,074$1,116,205BASIC NET INCOME PER COMMON SHARE:Before change in accounting principle$7.96$5.10$3.38

110、Cumulative effect of change in accounting principle .08$7.96$5.10$3.46DILUTED NET INCOME PER COMMON SHARE:Before change in accounting principle$7.84$5.04$3.35 Cumulative effect of change in accounting principle (.01).08$7.84$5.03$3.4318Statement of Consolidated Cash Flows(In thousands)For the Year E

111、nded December 31,200520042003CASH FLOWS FROM OPERATING ACTIVITIES:Net income$2,623,730$1,668,754$1,121,885 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation,depletion and amortization1,415,6821,222,1521,073,286 Provision for deferred income taxes598,927444

112、,906546,357 Asset retirement obligation accretion53,72046,06037,763 Amortization of deferred loan costs3,7482,4712,163 International impairments12,813 Cumulative effect of change in accounting principle,net of income tax1,317(26,632)Other48,52639,69432,923 Changes in operating assets and liabilities

113、,net of effects of acquisitions:(Increase)decrease in receivables(504,038)(296,383)(94,295)(Increase)decrease in inventories11,295(659)(4,216)(Increase)decrease in drilling advances and other(144,154)(35,761)(19,881)(Increase)decrease in deferred charges and other(26,454)(35,328)(29,520)Increase(dec

114、rease)in accounts payable 97,447182,45468,176 Increase(decrease)in accrued expenses214,49128,43111,227 Increase(decrease)in advances from gas purchasers(22,108)(18,331)(16,246)Increase(decrease)in deferred credits and noncurrent liabilities(38,542)(18,258)(9,903)NET CASH PROVIDED BY OPERATING ACTIVI

115、TIES4,332,2703,231,5192,705,900CASH FLOWS FROM INVESTING ACTIVITIES:Additions to property and equipment(3,715,856)(2,456,488)(1,616,936)Acquisition of ExxonMobil properties(348,173)Acquisition of Anadarko properties(531,963)Acquisition of BP properties(1,140,156)Acquisition of Shell properties(203,0

116、33)Proceeds from sales of oil and gas properties79,6634,04258,944 Other(95,649)(78,431)(57,576)NET CASH USED IN INVESTING ACTIVITIES(3,731,842)(3,411,013)(2,958,757)CASH FLOWS FROM FINANCING ACTIVITIES:Long-term borrowings153,368544,8241,780,870 Payments on long-term debt(549,530)(283,400)(1,613,362

117、)Dividends paid(117,395)(90,369)(72,832)Common stock activity18,86421,595583,837 Treasury stock activity,net6,62012,4724,378 Cost of debt and equity transactions(861)(2,303)(5,417)Repurchase of preferred interests of subsidiaries(443,000)Other6,27354,265NET CASH PROVIDED BY(USED IN)FINANCING ACTIVIT

118、IES(482,661)257,084234,474NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS117,76777,590(18,383)CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR111,09333,50351,886CASH AND CASH EQUIVALENTS AT END OF YEAR$228,860$111,093$33,50319Consolidated Balance Sheet(In thousands)December 31,ASSETS20052004CURRENT

119、 ASSETS:Cash and cash equivalents$228,860$111,093 Receivables,net of allowance 1,444,545 939,736 Inventories 209,670 157,293 Drilling advances 146,047 82,889 Prepaid assets and other 132,955 57,771 2,162,077 1,348,782PROPERTY AND EQUIPMENT:Oil and gas,on the basis of full cost accounting:Proved prop

120、erties 23,836,789 19,933,041 Unproved properties and properties under development,not being amortized 795,706 777,690 Gas gathering,transmission and processing facilities 1,359,477 966,605 Other 312,970 284,069 26,304,942 21,961,405 Less:Accumulated depreciation,depletion and amortization(9,513,602)

121、(8,101,046)16,791,340 13,860,359OTHER ASSETS:Goodwill,net 189,252 189,252 Deferred charges and other 129,127 104,087$19,271,796$15,502,480LIABILITIES AND SHAREHOLDERS EQUITYCURRENT LIABILITIES:Accounts payable$714,598$542,074 Accrued operating expense 66,609 80,741 Accrued exploration and developmen

122、t 460,203 341,063 Accrued compensation and benefi ts 125,022 83,636 Accrued interest 32,564 32,575 Accrued income taxes 120,153 78,042 Current debt 274 Asset retirement obligation 93,557 Derivative instruments 256,115 21,273 Other 317,469 103,487 2,186,564 1,282,891LONG-TERM DEBT 2,191,954 2,588,390

123、DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES:Income taxes 2,580,629 2,146,637 Advances from gas purchasers 68,768 90,876 Asset retirement obligation 1,362,358 932,004 Derivative instruments 152,430 31,417 Other 187,878 225,844 4,352,063 3,426,778COMMITMENTS AND CONTINGENCIESSHAREHOLDERS EQUITY:

124、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,336,997,053 and 334,912,505 shares issued,respectively 210,623 209,320 Paid-in capital 4,170,714 4

125、,106,182 Retained earnings 6,516,863 4,017,339 Treasury stock,at cost,6,875,823 and 7,455,002 shares,respectively(89,764)(97,325)Accumulated other comprehensive loss (365,608)(129,482)10,541,215 8,204,421$19,271,796$15,502,48020Statement of Consolidated Shareholders Equity(In thousands)Comprehensive

126、 IncomeSeries BPreferredStockCommonStockPaid-InCapitalBALANCE AT DECEMBER 31,2002$98,387$194,331$3,427,450 Comprehensive income(loss):Net income$1,121,885 Commodity hedges(39,007)Comprehensive income$1,082,878 Cash dividends:Preferred Common($.22 per share)Five percent common stock dividend 581 25,3

127、33 Common shares issued 12,906 579,107 Treasury shares issued,net 4,109 Other 2,008BALANCE AT DECEMBER 31,2003 98,387 207,818 4,038,007 Comprehensive income(loss):Net income$1,668,754 Commodity hedges 22,461 Comprehensive income$1,691,215 Cash dividends:Preferred Common($.28 per share)Five percent c

128、ommon stock dividend Common shares issued 1,502 56,660 Treasury shares issued,net 11,144 Other 371BALANCE AT DECEMBER 31,2004 98,387 209,320 4,106,182 Comprehensive income(loss):Net income$2,623,730 Commodity hedges(236,126)Comprehensive income$2,387,604 Cash dividends:Preferred Common($.36 per shar

129、e)Common shares issued 1,303 57,386 Treasury shares issued,net 7,003 Other 143BALANCE AT DECEMBER 31,2005$98,387$210,623$4,170,71421RetainedEarningsTreasuryStockAccumulatedOtherComprehensive Income(Loss)Total ShareholdersEquity$1,427,607$(110,559)$(112,936)$4,924,280 1,121,885 1,121,885 (39,007)(39,

130、007)(5,680)(5,680)(72,200)(72,200)(25,914)592,013 5,390 9,499 2,008 2,445,698(105,169)(151,943)6,532,798 1,668,754 1,668,754 22,461 22,461(5,680)(5,680)(91,433)(91,433)58,162 7,844 18,988 371 4,017,339(97,325)(129,482)8,204,421 2,623,730 2,623,730 (236,126)(236,126)(5,680)(5,680)(118,526)(118,526)58

131、,689 7,561 14,564 143$6,516,863$(89,764)$(365,608)$10,541,21522Eleven-Year Statistical Summary(In millions of dollars,except as otherwise indicated)2005200420032002Financial Data Oil and gas production revenues 7,457.35,308.04,198.92,559.8 Other126.924.6(8.6).1 Consolidated revenues7,584.25,332.64,1

132、90.32,559.9 Income(loss)attributable to common stock2,618.11,663.11,116.2543.5 Net cash provided by operating activities4,332.33,231.52,705.91,380.7 Oil and gas capital expenditures (including acquisitions)3,464.03,455.73,073.81,252.6 Total assets19,271.815,502.512,416.19,459.9 Long-term debt2,192.0

133、2,588.42,327.02,158.8 Shareholders equity10,541.28,204.46,532.84,924.3 Common shares outstanding at year-end330.1327.5324.5302.5 Amortization of oil and gas properties-recurring1,325.31,149.21,003.3783.6 Effective tax rate(benefi t)37.6%37.3%43.0%38.3%Future cash infl ows100,673.366,103.446,959.033,

134、806.4Shareholder Data Basic net income(loss)per common share 7.96 5.10 3.46 1.83 Cash dividends per common share.34.26.21.19 Shareholders equity per common share 31.63 24.75 19.83 15.95Operations Data Natural gas production(Bcf)461.3452.0444.3394.3 Oil,condensate and natural gas liquids production (

135、MMbbls)89.088.778.358.9 Total production(MMboe)165.9 164.1 152.3 124.6 Average price of natural gas(per Mcf)6.35 4.91 4.61 2.87 Average price of oil(per barrel)51.66 35.24 27.76 24.78 Oil,condensate and NGL reserves(MMbbls):Proved developed676.7662.7593.7414.4 Proved undeveloped299.2269.4250.2222.4

136、Natural gas reserves(Bcf):Proved developed4,775.93,844.13,541.03,206.5 Proved undeveloped2,072.12,183.91,335.0848.1 Total proved reserves(MMboe)2,117.21,936.71,656.51,312.5 Reserve life(in years)12.811.810.910.52320012000199919981997199619952,823.02,308.91,159.0773.5985.4835.8657.5(13.6)(6.9)2.7(0.7

137、)(4.4)1.2.32,809.42,302.01,161.7772.8981.0837.0657.8703.8693.1186.4(131.4)154.9121.420.21,905.01,517.4638.2471.5723.8490.5332.12,280.22,194.71,842.3649.1911.4939.91,133.18,933.77,482.05,502.53,996.14,138.63,432.42,681.52,244.42,193.31,879.71,343.31,501.41,235.71,072.14,418.53,754.62,669.41,801.81,72

138、9.21,518.51,091.8287.9285.6263.3225.8215.5208.0178.7760.2547.5415.6359.7358.9296.0288.439.7%40.1%41.7%(31.0)%40.1%39.3%39.0%20,584.939,081.914,951.66,502.78,559.911,427.46,455.7 2.44 2.54.75(.58).74.61.12.12.12.12.12.12.12.12 14.28 12.07 8.96 7.54 8.02 7.30 6.11411.5304.0239.5215.4222.2205.3210.657.

139、044.634.727.725.220.219.1 125.6 95.2 74.6 63.6 62.2 54.4 54.2 3.70 3.64 2.16 1.93 2.28 2.03 1.58 23.18 27.41 18.45 12.70 19.24 20.94 17.21411.8354.0302.0178.0203.1183.2137.5187.6168.5113.273.070.752.132.83,203.82,664.81,873.71,450.11,554.31,435.31,298.5801.5718.9477.9722.1317.5190.0203.41,266.91,086

140、.4807.2613.0585.7506.2420.610.111.410.89.69.49.37.824(Thousands of barrels)Crude Oil,Condensate and Natural Gas Liquids UnitedStatesCanadaEgyptAustraliaNorthSeaOtherIntlTotalProved developed reserves:December 31,2002240,88089,55451,16231,7461,033414,375 December 31,2003265,13591,50154,88126,999147,8

141、807,293593,689 December 31,2004320,75287,91457,08418,919172,2605,721662,650 December 31,2005313,58087,01259,19722,550189,3854,966676,690Total proved reserves:Balance December 31,2002333,422163,63974,79152,24812,665636,765 Extensions,discoveries and other additions 35,37815,64915,09011,71214,48964092

142、,958 Purchases of minerals in-place48,886574309144,071193,840 Revisions of previous estimates95312648(2)(113)1,498 Production(28,098)(9,776)(17,356)(11,165)(10,680)(1,230)(78,305)Sales of properties(1,176)(1,692)(2,868)Balance December 31,2003389,365168,40673,17353,102147,88011,962843,888 Extensions

143、,discoveries and other additions26,6001,10626,86510,42245,261186110,440 Purchases of minerals in-place84,37516538984,929 Revisions of previous estimates(13,588)(1,207)(2,955)2(4)(348)(18,100)Production(27,867)(10,209)(19,099)(9,214)(19,338)(2,982)(88,709)Sales of properties(408)(408)Balance December

144、 31,2004458,477158,26177,98454,312174,1888,818932,040 Extensions,discoveries and other additions 27,05516,53137,4312,62344,9771,307129,924 Purchases of minerals in-place2,0201,8743,894 Revisions of previous estimates4,0392,591(4,396)1(65)2,170 Production(26,945)(9,028)(20,126)(5,613)(23,904)(3,392)(

145、89,008)Sales of properties(3,078)(32)(3,110)Balance December 31,2005461,568170,19790,89351,322195,2626,668975,910Oil and Gas Reserve InformationProved oil and gas reserve quantities are based on estimates prepared by the Companys engineers in accordance with Rule 4-10 of Regulation S-X.The Company e

146、ngages 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 internal projections.During this review,they prepare independent proje

147、ctions 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 fi elds,international properties and new wells drilled during the year.During 2005,2004,and 2003,t

148、heir review covered 74,79 and 78 percent of the 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 development expenditures.The following reserve data only represen

149、t estimates and should not be construed as being exact.25(Millions of cubic feet)(Thousand barrels of oil equivalent)Natural GasUnitedStatesCanadaEgyptAustraliaNorthSeaOtherIntlTotalMboeTotal1,444,6771,255,068246,529256,7903,4693,206,533948,7971,565,8551,411,877337,844218,7453,9022,7503,540,9731,183

150、,8511,722,8031,479,271474,028158,7896,8042,3643,844,0591,303,3271,711,0601,799,102605,687649,9727,4752,5944,775,8901,472,6721,784,0931,338,751370,667557,6563,4694,054,6361,312,538113,552387,533217,455127,5161052,084848,245234,333391,5104,51038,6384,423439,081267,0196,073(8,177)4,29212,1891,863(242,7

151、82)(116,263)(41,447)(40,537)(626)(2,607)(444,262)(152,349)(23,054)(671)(196)(23,921)(6,855)2,029,3921,605,683550,967683,2733,9022,7514,875,9681,656,549291,303542,779452,50954,2723,5751,0071,345,445334,681268,38617,27312285,671132,54153,816(61,695)(18,572)11(26,449)(22,508)(236,660)(119,669)(50,412)(

152、43,228)(685)(1,395)(452,049)(164,050)(657)(657)(518)2,405,5801,984,371934,492694,3186,8042,3646,027,9291,936,695388,844526,876241,420175,5021,4411,3501,335,433352,49617,7925,74923,5417,81823,470(13,717)(35,071)7217(25,229)(2,035)(218,080)(135,749)(60,484)(45,003)(842)(1,137)(461,295)(165,890)(51,419

153、)(938)(52,357)(11,836)2,566,1872,366,5921,080,357824,8177,4752,5946,848,0222,117,24826Future Net Cash FlowsFuture cash infl ows are based on year-end oil and gas prices except in those instances where future natural gas or oil sales are covered by physical contract terms providing for higher or lowe

154、r 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 net cash fl ows for oil and gas reserves,net of income tax expense.Income tax expense has been c

155、omputed 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 present the fair market value of the Companys oil and gas assets,but does present a standardi

156、zed disclosure concerning possible future net cash fl ows that would result under the assumptions used.(In thousands)United StatesCanada(1)EgyptAustraliaNorth SeaOtherInternationalTotal2005Cash infl ows$47,315,554$29,305,244$8,545,414$4,298,054$10,879,416$329,658$100,673,340Production costs(10,164,9

157、38)(7,299,065)(972,441)(1,132,858)(6,345,449)(64,770)(25,979,521)Development costs(2,355,717)(1,189,550)(1,072,391)(537,257)(650,721)(37,858)(5,843,494)Income tax expense(11,098,793)(6,232,460)(2,307,759)(715,294)(1,355,266)(45,652)(21,755,224)Net cash fl ows 23,696,106 14,584,169 4,192,823 1,912,64

158、5 2,527,980 181,378 47,095,10110 percent discount rate(11,617,808)(7,868,888)(1,537,495)(723,140)(787,319)(32,102)(22,566,752)Discounted future net cash fl ows(2)$12,078,298$6,715,281$2,655,328$1,189,505$1,740,661$149,276$24,528,3492004Cash infl ows$32,557,246$17,140,078$6,233,328$3,065,332$6,783,41

159、4$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)(617,244)(42,314)(12,677,697)Net cash fl ows 15,40

160、8,844 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 fl ows(2)$7,994,598$3,464,970$1,862,255$760,185$1,079,696$134,374$15,296,0782003Cash infl ows$23,117,256$12,533,19

161、7$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)(2,595,286)(997,847)(433,667)(195,756)(59,616)(9,11

162、6,561)Net cash fl ows 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 fl ows(2)$5,895,183$3,083,122$1,332,051$711,363$577,553$178,572$11,777,844(1)Included in th

163、e estimated future net cash fl ows 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

164、cash fl ows before income tax expense,discounted at 10 percent per annum,totaled approximately$35.9 billion,$22.2 billion and$16.4 billion as of December 31,2005,2004 and 2003,respectively.BO A R DO FDI R E C T O R SFrederick M.Bohen(3)(5)Former Executive Vice President and Chief Operating Officer,T

165、he Rockefeller UniversityG.Steven Farris(1)President,Chief Executive Officer and Chief Operating Officer,Apache CorporationRandolph 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 Managing Director,EnCap Investment

166、s L.C.A.D.Frazier,Jr.(3)(5)Chairman,WolfCreek Broadcasting,Inc.Patricia Albjerg Graham(4)Charles Warren Research Professorof the History of American Education,Harvard UniversityJohn A.Kocur(1)(3)Attorney at Law;Former Vice Chairman ofthe Board,Apache CorporationGeorge D.Lawrence(1)(3)Private Investo

167、r;Former ChiefExecutive Officer,The Phoenix ResourceCompanies,Inc.F.H.Merelli(1)(2)Chairman of the Board,Chief ExecutiveOfficer and President,Cimarex Energy Co.Rodman D.Patton(2)Former Managing Director,Merrill Lynch Energy GroupCharles J.Pitman(4)Former Regional President-MiddleEast/Caspian/Egypt/I

168、ndia,BP Amoco plc;Sole Member,ShakerMountain Energy Associates,LLCRaymond Plank(1)Founder and Chairman of the BoardApache CorporationJay A.Precourt(4)Chairman of the Board,HermesConsolidated,Inc.(1)Executive Committee(2)Audit Committee(3)Management Development and Compensation Committee(4)Corporate

169、Governance and Nominating Committee(5)Stock Option Plan CommitteeRaymond PlankFounder andChairman of the BoardG.Steven FarrisPresident,Chief Executive Officer andChief Operating OfficerMichael S.BahorichExecutive Vice President-Exploration and ProductionTechnologyJohn A.CrumExecutive Vice President

170、andManaging Director,Apache North Sea Ltd.Rodney J.EichlerExecutive Vice President and General Manager,Apache Egypt CompaniesRoger B.PlankExecutive Vice President andChief Financial OfficerFloyd R.PriceExecutive Vice President-Eurasia,Latin Americaand New VenturesJon A.JeppesenSenior Vice PresidentP

171、.Anthony LannieSenior Vice President andGeneral CounselJeffrey M.BenderVice President-Human ResourcesMichael J.BensonVice President-Security Thomas P.ChambersVice President-Corporate PlanningJohn J.ChristmannVice President-Business DevelopmentMatthew W.DundreaVice President and TreasurerRobert J.Dye

172、Vice President-Investor RelationsJanice K.HartrickVice President and AssociateGeneral CounselAnthony R.Lentini,Jr.Vice President-Public and International AffairsJanine J.McArdleVice President-Oil and Gas MarketingThomas L.MitchellVice President and ControllerW.Kregg OlsonVice President-Corporate Res

173、ervoirEngineeringJon W.SauerVice President-TaxCheri L.PeperCorporate SecretaryCO R P O R A T EOF F I C E R S2728SH A R E H O L D E RIN F O R M A T I O NStock DataThe Company has paid cash dividends on its common stock for 41 consecu-tive years through December 31,2005.Future dividend payments willde

174、pend upon the Companys level of earnings,financial requirements andother relevant factors.Apache common stock is listed on the New York and Chicago stockexchanges and the NASDAQ National Market(symbol APA).At December 31,2005,the Companys shares of common stock outstanding were held byapproximately

175、7,500 shareholders of record and 219,000 beneficial owners.Also listed on the New 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 AccountantsE

176、rnst&Young LLPFive Houston Center1401 McKinney Street,Suite 1200Houston,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 cer

177、tificates,dividendchecks,duplicate mailings or change of address should be directed to thestock transfer agent.Shareholders may access account information on thewebsite:http:/.Dividend Reinvestment PlanShareholders of record may invest their dividends automatically in addition-al shares ofApache com

178、mon stock at the market price.Participants may alsoinvest up to an additional$25,000 in Apache shares each quarter through thisservice.All bank service fees and brokerage commissions on purchases arepaid by Apache.A prospectus describing the terms of the Plan and an author-ization form may be obtain

179、ed from the Companys stock transfer agent,WellsFargo Bank,N.A.Direct RegistrationShareholders of record may hold their shares of Apache common stock inbook-entry form.This eliminates costs related to safekeeping or replacingpaper stock certificates.In addition,shareholders of record may request elec

180、-tronic movement of book-entry shares between their account with theCompanys stock transfer agent and their broker.Stock certificates may beconverted to book-entry shares at any time.Questions regarding this servicemay be directed to the Companys stock transfer agent,Wells Fargo Bank,N.A.Annual Meet

181、ingApache will hold its annual meeting of shareholders on Thursday,May 4,2006,at 10 a.m.in the Ballroom,Hilton Houston Post Oak,2001 Post OakBoulevard,Houston,Texas.Apache plans to web cast the annual meeting live;connect through the Apache web site:http:/Stock Held in“Street Name”The Company mainta

182、ins a direct mailing list to ensure that shareholders withstock held in brokerage accounts receive information on a timely basis.Shareholders wishing to be added to this list should direct their requests toApaches Public and International Affairs Department,2000 Post OakBoulevard,Suite 100,Houston,T

183、exas,77056-4400,by calling(713)296-6157or by registering on Apaches Web site:http:/.Form 10-K RequestShareholders and other persons interested in obtaining,without cost,a copyof the Companys Form 10-K filed with the Securities and ExchangeCommission may do so by writing to Cheri L.Peper,Corporate Se

184、cretary,2000 Post Oak Boulevard,Suite 100,Houston,Texas,77056-4400.Investor RelationsShareholders,brokers,securities analysts or portfolio managers seekinginformation about the Company are welcome to contact Robert J.Dye,VicePresident of Investor Relations,at(713)296-6662.Members of the news media a

185、nd others seeking information about theCompany should contact Apaches Public and International AffairsDepartment at(713)296-6107.Web site:http:/Visit Apaches all-new Web site at .New features include:Charts and graphics plotting Apaches performance relative to its peers and to oil and gas prices.Exp

186、lore!An online magazine with articles and features on Apache,our people,the regions and countries in which we operate,our business and the industry.White papers and editorials by Founder and Chairman Raymond Plank and other Apache leaders.Weekly Energy Perspective(in Explore!),which provides a brief

187、 but detailed look at all the various factors that affect energy supply and prices,Apache and the energy business in general.With maps,chartsand graphs that show all the trends on a single page,plus different topic reports each week covering various aspects of the energy busi-ness,from coalbed metha

188、ne to the impact of political developments in Iran.A cleaner,simpler,more user-friendly environment.Multiple feedback opportunities to ask questions,share thoughts or solve problems.Energy 101,a reference guide on the energy industry.DividendsPrice Rangeper ShareHighLowDeclared Paid2005First Quarter

189、$65.90$47.45$.08$.08Second Quarter67.9951.52.08.08Third Quarter78.6064.85.10.08Fourth Quarter75.9559.36.10.102004First Quarter$43.49$36.79$.06$.06Second Quarter45.9938.53.06.06Third Quarter51.0042.45.08.06Fourth Quarter55.1647.77.08.08This summary annual report contains certain“forward-looking state

190、ments”as defined by the PrivateSecurities Litigation Reform Act of 1995,including,without limitation,expectations,beliefs,plans and objec-tives regarding Apaches capital expenditures and exploration and development plans,and the future prices ofcrude oil and natural gas.Among the important factors t

191、hat could cause actual results to differ materially fromthose indicated by such forward-looking statements are delays and difficulties in completing acquisitions anddeveloping currently owned properties,the failure of exploratory drilling to result in commercial wells,delaysdue to the limited availa

192、bility of drilling equipment and personnel,fluctuations in oil and gas prices,generaleconomic conditions and the risk factors detailed from time to time in Apaches periodic reports and registra-tion statements filed with the Securities and Exchange Commission.A Ap pa ac ch he e C Co or rp po or ra at ti io on nOne Post Oak Central2000 Post Oak Boulevard,Suite 100Houston,Texas 77056-