To be both a competent explorer and acquirer
Investors established Apache Corporation (Apache) in 1954 with only $250,000 capital to become an international oil and gas company listed in NYSE (APA)
Today, Apache has taken the world market leadership of the independent oil and gas companies.exploration and production companiese
In line with its corporate statement to be both a competent explorer and acquirer, Apache focuses in two dimensions:
– Geographically in concentrating operations only on 6 countries: USA, Canada, Argentina, Australia, Egypt and UK.
Despite this geographical concentration, Apache manages the risks in balancing its portfolio of assets between the countries, the geologic play and the commodities.
Apache‘s production reported in barrel of oil equivalent (boe) is shared between:
– Crude oil and natural gas liquids (NGL) 49%
– Natural gas 51%
From the six countries where Apache undertakes exploration and production, none of them represents more than 20% of the total company’s revenues.
In addition in these countries Apache combines the production of conventional and unconventional oil and gas to reduce its reliance on a single commodity.
In these countries, Apache invests wisely by exploration or acquisition to shift capital where it optimizes its assets yield management.
Since the 1990s, Apache’s strategy is to acquire and exploit properties in line with decades of exploitation expertise.
About 50% of the 5.439 Apache’s employees are located in USA, then in Canada, UK, Argentina, Egypt and Australia.
Apache Key Figures
– 2010 Revenues: $12 billion
– 2009 Revenues: $8,6 billion
-2008 Revenues: $12,3 billion
-2011 Earnings: $4,5 billion
– 2010 Earnings: $3 billion
– 2009 Earnings: $(0,29) billion
-2008 Earnings: $0,7 billion
– 2011 Capital Expenditure: $6,2 billion
– 2010 Capital Expenditure: $18,2 billion
-2009 Capital Expenditures: $4,1 billion
-2008 Capital Expenditures: $6,8 billion
Here the Capital Expenditures includes acquisitions, gas gathering, transmission and processing facilities and capitalized interest.
Apache Projects and Business Highlights
Today Apache’s market leadership remains concentrated on its talent to “acquire and exploit”.
Apache intends to continues to create value through more efficient operations to increase the recoverable reserves from the acquired properties.
– Reduce pipeline bottlenecks
– Add compression
– Adjust fluid levels
– Drill new wells
– Fix down hole equipment
Apache is all mobilized to “beat the curve”, meaning to stop or prevent the depletion curve as it was at the acquisition phase.
In that perspective Apache will expand its drilling operations in the:
– Liard Basin in northern British Columbia, Canada, one of the most prolific shale gas plays in North America.
– Bakken play in the western Williston Basin of Montana, USA
– Mississippian play in Kansas and Nebraska.
On the last five years, Apache identified nearly 77,000 drilling locations on 4 million net acres of leasehold containing an estimated resources potential of 20 billion boe.
Some of them performed in the Liard Basin have already revealed enough reserves to justify to double the Kitimat LNG project, still at feasibility study.
Overseas, the development of the Julimar and Brunello natural gas fields, offshore Western Australia illustrates how Apache is able to develop assets at minimum capital expenditure in connecting these fields to the neighboring Chevron Wheatstone LNG project and taking 13% shares of the whole project.