Apache 1Q05 Earnings Rise 62%

Apache Corporation (NYSE, Nasdaq: APA) reported that higher oil and gas prices and strong production contributed to record first-quarter 2005 earnings of $559 million or $1.67 per diluted common share, up from $345 million or $1.05 per diluted common share in the first quarter of 2004.

Cash from operations before changes in operating assets and liabilities totaled $1 billion, up from $737 million in the year-earlier period. (This is a non-GAAP measure)

Production averaged 462,000 barrels of oil equivalent per day in the quarter, up 7 percent from the first quarter of 2004 and up slightly from last year's fourth quarter.

High oil and gas prices were a strong driver for first-quarter financial results. Apache received $46.05 per barrel of oil in the quarter, up 51 percent from the prior-year period; $27.68 per barrel of natural gas liquids, up 16 percent; and $5.30 per thousand cubic feet of gas, up 11 percent.

"We are off to a strong start in 2005, with record earnings," said G. Steven Farris, Apache's president, chief executive officer and chief operating officer. "Our successful drilling program in the first quarter and deep inventory of opportunities should contribute to Apache's financial and operating results in coming quarters."

     Recent operational highlights include:
     *  Apache drilled two significant discoveries in Egypt during the
        quarter.  The Syrah 1X wildcat, on the company's 100 percent-
        contractor-interest Khalda Concession, tested 46.5 million cubic feet
        (MMcf) of natural gas per day.  The Tanzanite 1X discovery, located
        onshore on Apache's 65 percent-contractor-interest West Mediterranean
        Concession, was tested in two separate Alam el Bueib (AEB) zones.  The
        first tested at a rate of 5,296 barrels of oil and 7 MMcf of gas per
        day and the second at a rate of 5,631 barrels of oil and 17 MMcf of
        gas per day.
     *  Apache has drilled 86 wells on Canadian acreage acquired last year in
        a farm-in from ExxonMobil.  Apache has tested 73 wells with productive
        capacity of 52 MMcf of gas per day.  The wells are expected to be
        brought on production as processing and transportation infrastructure
        becomes available.
     *  Apache's debt-to-capitalization ratio declined to 22.7 percent at the
        end of the first quarter, from 24 percent at year-end 2004.