TULSA, Okla., Nov. 6 /PRNewswire-FirstCall/ -- Apco Oil and Gas International
Inc. (Nasdaq: APAGF) today announced that for the three and nine-month periods
ended Sept. 30, 2009, it generated unaudited net income attributable to Apco
of $6.3 million and $16.7 million, or $0.21 and $0.57 per share, compared with
net income of $5.7 million and $19.4 million for the comparable periods in
2008.
The quarter-to-quarter increase in net income is due to higher operating
revenues and lower exploration expense which combined to more than offset
increases in other operating costs including depreciation expense, provincial
production taxes, other operating expense and lower investment income.
Apco's operating revenues increased by $1.4 million in third-quarter 2009
compared with the same period a year ago. Revenues during the 2009 quarter
were higher due to the benefits of increased oil, natural gas and LPG sales
volumes and higher natural gas sales prices which were offset by lower average
oil and LPG sales prices.
Total sales volumes of 641,588 barrels of oil equivalent (BOE) for the quarter
applicable to Apco's consolidated interest was 18 percent above the comparable
544,019 BOE in the third quarter of 2008.
Oil sales volumes increased 10 percent during the quarter, reflecting
continued successful drilling in the Neuquen basin properties and increased
condensate production associated with greater natural gas production.
Natural gas sales volumes increased 32 percent due to well connections and
production facility enhancements in the Tierra del Fuego properties that
allowed for greater volumes of gas to be delivered compared to the prior-year
quarter.
Total costs and operating expenses in the third quarter of 2009 were
relatively flat compared with the same period a year ago. The decrease
reflects lower exploration activity including the absence of $2.1 million in
exploration expenses for dry-hole and seismic expense recorded in
third-quarter 2008.
Lower exploration expenses offset the combination of higher depreciation,
depletion and amortization expense, increased provincial production taxes,
greater foreign exchange losses and increased other operating expense for the
quarter.
Additionally, Apco experienced lower equity income from its 40.803 percent
interest in Petrolera Entre Lomas S.A. ("Petrolera"). Petrolera's net income
was lower primarily due to greater operating costs and expenses attributable
to operations in the Entre Lomas and Bajada del Palo concessions.
Total sales volumes applicable to Apco's equity interest were 488,878 BOE,
reflecting a three percent increase compared to 475,424 BOE in the prior-year
quarter. On a BOE basis, a six percent increase in oil sales volumes during
the quarter was partially offset by lower natural gas and LPG volumes.
The $2.6 million decrease in net income for the first nine months of 2009,
compared with the same period in 2008, is the result of higher costs and
expenses, lower investment income and a decrease in average oil and LPG
prices. These factors combined to more than offset the benefit of increases
in oil and natural gas sales volumes.
Total sales volumes applicable to Apco's consolidated interest of 1.8 million
BOE for the first nine months of 2009 increased 13 percent compared to 1.6
million BOE in the third quarter of 2008. Oil sales volumes increased nine
percent and natural gas volumes were up by 19 percent year-to-date due to the
same factors that affected the quarter variances.
For the first nine months of 2009, total investment income decreased by $2.1
million due to lower interest and other income and lower equity income from
Argentine investments. Year-to-date, total sales volumes applicable to Apco's
equity interest of 1.5 million BOE increased seven percent compared to 1.4
million BOE in the prior-year.
2009 Capital Program
During the first nine months of 2009, capital expenditures of $13 million have
been invested primarily for development drilling in the Entre Lomas and Bajada
del Palo concessions, along with a seventh productive well in the Agua Amarga
exploration permit.
"Successful drilling in our Neuquen basin properties, including our first
horizontal well in the Bajada del Palo concession, continues to provide
increased oil volumes," said Thomas Bueno, Apco's president and chief
operating officer.
"The addition of the Agua Amarga and Bajada del Palo properties has allowed
our technical staff to apply lessons learned in Entre Lomas to new areas that
are providing significant contributions to increased oil volumes," Bueno
added.
Apco Oil and Gas International Inc.
Summary of Earnings
(In Thousands of Dollars Except Per Share Amounts)
2009 2008
---- ----
Three months ended September 30
-------------------------------
Operating revenue 19,059 17,675
----------------- ------ ------
Costs and operating expenses 14,701 14,818
---------------------------- ------ ------
Investment income 3,585 4,151
----------------- ----- -----
Net income 6,319 5,727
---------- ----- -----
Per share 0.21 0.19
--------- ---- ----
2009 2008
---- ----
Nine months ended September 30
------------------------------
Operating revenue 52,134 50,780
----------------- ------ ------
Costs and operating expenses 40,871 39,592
---------------------------- ------ ------
Investment income 10,359 12,420
----------------- ------ ------
Net income 16,731 19,368
---------- ------ ------
Per share 0.57 0.66
--------- ---- ----
About Apco (NASDAQ:APAGF)
Apco is an international oil and gas exploration and production company with
interests in seven oil and gas concessions and one exploration permit in
Argentina. More information is available at www.apcooilandgas.com. Go to
http://www.b2i.us/irpass.asp?BzID=1671&to=ea&s=0 to join our e-mail list.
Contact: Kelly Swan
Media Relations
(918) 573-4944
Thomas Bueno
Investor Relations
(918) 573-2570
Apco's reports, filings, and other public announcements may contain or
incorporate by reference statements that do not directly or exclusively relate
to historical facts. Such statements are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995. You
typically can identify forward-looking statements by the use of
forward-looking words, such as "anticipate," believe," "could," "continue,"
"estimate," "expect," "forecast," "may," "plan," "potential," "project,"
"schedule," "will," and other similar expressions. These statements are based
on our present intentions and our assumptions about future events and are
subject to risks, uncertainties, and other factors. In addition to any
assumptions, risks, uncertainties or other factors referred to specifically in
connection with such statements, other factors not specifically referenced
could cause our actual results to differ materially from the results expressed
or implied in any forward-looking statements. Those factors include, among
others:
-- availability of supplies (including the uncertainties inherent in
assessing, estimating, acquiring and developing future oil and natural
gas reserves), market demand, volatility of prices, and the
availability
and cost of capital;
-- inflation, interest rates, fluctuation in foreign currency exchange
rates, and general economic conditions (including the current economic
slowdown and the disruption of credit markets and the impact of these
events on our customers and suppliers);
-- the strength and financial resources of our competitors;
-- development of alternative energy sources;
-- the impact of operational and development hazards;
-- costs of, changes in, or the results of laws, government regulations
(including proposed climate change legislation), environmental
liabilities and litigation;
-- political conditions in Argentina and other parts of the world;
-- the failure to renew participation in hydrocarbon concessions granted
by
the Argentine government on reasonable terms;
-- risks associated with future weather conditions;
-- acts of terrorism; and
-- additional risks described in our filings with the Securities and
Exchange Commission.
Given the uncertainties and risk factors that could cause our actual results
to differ materially from those contained in any forward-looking statement, we
caution investors not to unduly rely on our forward-looking statements. In
addition to causing our actual results to differ, the factors listed above may
cause our intentions to change. Such changes in our intentions may also cause
our results to differ. We disclaim any obligation to and do not intend to
publicly update or revise any forward-looking statements or changes to our
intentions, whether as a result of new information, future events or
otherwise.
SOURCE Apco Oil and Gas International Inc.
Kelly Swan, Media Relations, +1-918-573-4944, or Thomas Bueno, Investor
Relations, +1-918-573-2570, both of Apco Oil and Gas International Inc.
