OREANDA-NEWS. November 19, 2014. Apache Corporation (NYSE, Nasdaq: APA) announced that non-cash charges resulted in a third-quarter 2014 net loss of USD1.3 billion or USD 3.50 per diluted common share.

Adjusted earnings, which exclude certain items that impact the comparability of results, totaled USD 528 million or USD 1.38 per share. Net cash provided by operating activities totaled approximately USD 1.9 billion in the third quarter of 2014, with cash from operations before changes in operating assets and liabilities totaling USD 2.1 billion.

Apache's third-quarter net loss was the result of three non-cash charges:

An USD 814 million U.S. deferred tax charge related to the company's change in policy and outlook regarding the permanent reinvestment of its foreign earnings;

A USD 249 million income tax expense related to the repatriation of cash from its Egyptian operations during the third quarter; and

A USD 1 billion after-tax reduction in the carrying value of its oil and gas properties driven by lower oil and natural gas liquids price realizations and the previously announced deep water sale.

"Our North American onshore regions delivered another strong quarter as we continued to execute our strategy to profitably grow North American liquids production," said G. Steven Farris, Apache chairman, chief executive officer and president. "Liquids production increased 5 percent from the second quarter and 15 percent from the prior-year quarter when adjusted for asset sales.

"We are excited about the progress we have made in North America thus far in 2014, particularly in the Permian and Eagle Ford. Our Permian Region continues to deliver impressive liquids growth increasing 26 percent from the prior year quarter," Farris said. "In our Eagle Ford program we spud 29 wells during the quarter and have now ramped to 10 rigs.  We anticipate this region will be a key contributor to profitable liquids growth going forward."

Apache is advancing its unconventional resource capabilities and high-grading its North American onshore portfolio. During the third quarter, the company opportunistically invested \\$521 million in new leasehold and property acquisitions. In addition, the company is currently marketing non-core North American asset packages as part of its portfolio high-grading initiative and continues to acquire acreage in key growth areas.

"Our international businesses also delivered during the quarter with strong drilling results in Egypt, first oil production from Balnaves in Australia and a successful turnaround season in the North Sea," Farris said. "We have built premier businesses in each of these regions and remain highly committed to the strategic separation of these assets. We will provide an update as material events unfold."

During the quarter, Apache returned capital to shareholders through the purchase of an additional 5.7 million shares of its common stock on the open market. This brings total shares repurchased as of Sept. 30 to approximately 32 million of the 40 million shares authorized. Apache continues to see share buy-backs as an attractive use of capital.