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Crude oil represented 79 percent of our 2014 oil and gas production revenues and 51 percent of our equivalent production, compared to 80 and 48 percent, respectively, in the prior year. Lower realized prices reduced revenues $1.2 billion, while lower production volumes reduced revenues $604 million. Worldwide crude oil production from continuing operations decreased 18.0 Mb/d, however, when excluding production from asset divestitures during 2014 and 2013, crude oil production increased 17.0 Mb/d. This increase was driven by production growth of 20.1 Mb/d in our Permian region as a result of higher drilling and recompletion activity, partially offset by a decrease in production from the North Sea on natural decline. Natural Gas Revenues 2015 vs. 2014 Natural gas revenues of $1.2 billion for 2015 were $826 million lower than 2014, the result of a 31 percent decrease in realized prices and a 16 percent decrease in production volumes. Worldwide production decreased 209.4 MMcf/d, lowering revenues by $214 million. Realized prices in 2015 averaged $2.80 per Mcf, a decrease of $1.25 per Mcf compared to 2014, which decreased revenues by $612 million. Worldwide gas production from continuing operations decreased 16 percent. Excluding production from asset divestitures during 2015 and 2014, gas production decreased only 1 percent. This decrease was driven primarily by natural decline and well shut-ins in Egypt and Canada. This decrease was primarily offset by drilling and recompletion activity in North America onshore regions. 2014 vs. 2013 Natural gas revenues of $2.0 billion for 2014 were $283 million lower than 2013, the result of a 21 percent decrease in production volumes offset by a 10 percent increase in realized prices. Worldwide production decreased 345.9 MMcf/d, lowering revenues by $511.8 million. Realized prices in 2014 averaged $4.05 per Mcf, an increase of $0.37 per Mcf from 2013, which increased revenues by $229 million. Worldwide gas production from continuing operations decreased 21 percent. However, excluding production from asset divestitures during 2015 and 2014, gas production increased 14.2 MMcf/d. This increase was driven by production growth of 28.0 MMcf/d in the Permian region as a result of higher drilling and recompletion activity. Egypt’s net production increased 13.8 MMcf/d as a result of our successful drilling program with new wells coming on-line during 2014, and production from the North Sea increased 5 MMcf/d on stronger than expected well performance. NGL Revenues 2015 vs. 2014 NGL revenues totaled $227 million in 2015, a decrease of $441 million from 2014, the result of a 7 percent decrease in production volumes and a 63 percent decrease in realized prices. Worldwide production from continuing operations decreased 4.8 Mb/d, reducing revenues by $17 million. Realized prices in 2015 averaged $9.98 per barrel, a decrease of $17.30 per barrel, which reduced revenues by $424 million. 2014 vs. 2013 NGL revenues totaled $668 million in 2014, an increase of $16 million from 2013, the result of a 7 percent increase in production volumes partially offset by a 4 percent decrease in realized prices. Worldwide production from continuing operations increased 4.5 Mb/d, which added $44.9 million to revenues. This increase was primarily driven by drilling and recompletion activity in our North American onshore regions. Realized prices in 2014 averaged $27.28 per barrel, a decrease of $1.28 per barrel, which reduced revenues by $29.4 million.

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Apache 2015 Summary Annual Report  

Adapting to a changing environment

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