Apache Corporation reported that production set a new annual record, averaging nearly 658,000 barrels of oil equivalent per day for the 12-month period ending Dec. 31, 2010, up 13 percent from the prior year. Liquids production increased 18 percent, and this, combined with higher oil prices, drove Apache to record earnings of $3.0 billion for 2010.

"The results for 2010 were outstanding, and the possibilities for future profitable growth are numerous and encouraging. Apache's accomplishments this past year and past quarter reflect the company's operating and financial discipline, with our relentless focus on rate of return, cash generation, and operating and cost oversight. This enables us to optimize existing assets and execute on major transactions, whether they be deliberate or opportunistic. During the year we expanded our global portfolio with acquisitions in the Permian Basin, Canada, the Gulf of Mexico, and Egypt," said G. Steven Farris , Apache's chairman and chief executive officer.

Highlights during 2010 include: • 25 percent reserve growth, replacing 344 percent of production; 102 percent through drilling • Record annual production for North America and international • Most active acquisition year in Apache's history with over $11 billion in transactions • Van Gogh and Pyrenees, two oil fields offshore Western Australia, commenced production in February 2010, reaching payout by October and December, respectively • Purchased 51 percent equity interest in the proposed Kitimat LNG Terminal•Established new regions in the deepwater Gulf of Mexico, Gulf Onshore and Permian Basin, and expanded in Egypt, Canada, and the Gulf of Mexico Shelf.

"In 2011 we will realize a full 12 months of ownership from these newly acquired assets, as well as development and production from our legacy asset base. We also have a number of longer-term growth projects in the pipeline, including LNG developments at Kitimat (Canada) and Wheatstone (Australia) and new exploration ventures in more frontier hydrocarbon basins," he said.

"Apache's diverse asset mix, which balances oil and gas properties in North American and international basins, helped to deliver record results despite low natural gas prices. This is a testament to the effectiveness of Apache's balanced portfolio model," Farris said.

In early 2011 political changes swept through Egypt, with many issues remaining unresolved. Apache's Egyptian operations are located in remote areas of the country, and these events did not disrupt the company's oil and gas production. Apache believes that Egypt will continue to foster an environment that values foreign investment and the development of its ample resource base, and wishes the best for the people of Egypt during this time of transition.

Tags: Apache Corporation