Apache Management Discusses Q2 2012 Results - Earnings Call Transcript

This morning, we reported earnings of $337 million or $0.86 per diluted share. Adjusted earnings, which excludes certain items that impact the comparability of results, totaled $821 million or $2.07 per diluted share. Cash flow from operations totaled $2.4 billion for the quarter.

On today's call, we will have 3 speakers making prepared remarks prior to taking questions. First, we will hear from Steve Farris, our Chairman and Chief Executive Officer; followed by Rod Eichler, President and Chief Operating Officer; and finally, Tom Chambers, Executive Vice President and Chief Financial Officer.

We prepared our quarterly supplemental data package for your use, which also includes a reconciliation of any non-GAAP numbers that we discuss such as adjusted earnings, cash flow from operations or pretax margins. This data package can be found on our website at www.apachecorp.com/financialdata.

Today's discussions may contain forward-looking estimates and assumptions, and no assurances can be given that those expectations will be realized. A full disclaimer is located with the supplemental data package on our website.

With that, I'll turn the call over to Steve.

G. Steven Farris

Thank you, Patrick, and good afternoon, everyone, and thank you for joining us today. I'm sure all of you have seen that in our recent Investor Day, we outlined our extensive oil and liquids drilling inventory in the onshore U.S. We have over 67,000 future drilling locations that have been technically assessed, and we also have 9 billion barrels of oil equivalent net un-booked inventory that is available to drive our growth in the years to come. And this inventory is already beginning to deliver meaningful results in our onshore.

During the second quarter, our Permian and Central regions grew net production at annualized base of 23% and 18%, respectively, and this was before the contribution of Cordillera assets that we acquired at the end of April. Obviously, not every quarter's going to be as good, but we're firmly on track to deliver the double-digit growth in these regions for the years to come, as we outlined in our Investor Day.

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