In the fourth quarter, Apache recorded net income of $507 million, or $1.52 per share, up 90 percent on a per-share basis from the year-earlier period. Apache earned $260 million, or 80 cents per share, in the fourth quarter of 2003.
"We added 467 million barrels of oil equivalent from a capital investment of $3.4 billion, which fueled 7 percent production growth," said G. Steven Farris, president, chief executive officer and chief operating officer. "With that growth and strong commodity prices, Apache turned in a very good year. We enter 2005 with record production and a strong portfolio of drilling opportunities across our core areas."
Apache's 2004 operational and financial highlights included:
In the fourth quarter, Apache's production of 461,000 boe per day was up slightly from the third quarter despite the lingering effects from Hurricane Ivan in the Gulf of Mexico, which curtailed production by an estimated 9,700 barrels of oil and 34 million cubic feet (MMcf) of gas per day during the quarter.
Apache's fourth-quarter financial results also included $44 million in other income - business interruption insurance for reimbursement for production lost because of the storm. Apache expects to file an additional claim for production curtailments continuing into 2005. Apache also incurred $12 million in additional expenses related to storm damage.
A change in accounting rules concerning stock-based compensation has reduced the earlier projected fourth-quarter expense associated with achievement of goals in Apache's share appreciation plan to less than 1 cent per share. More than 1,900 employees were awarded shares of Apache stock after the company's share price doubled over the four-year term of the plan, which ended on Dec. 31, 2004. Non-executive employees were awarded more than 90 percent of the incentives.
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