Apache reported net income of $443 million, or $1.31 per diluted common share, compared with $1.4 billion, or $4.28 per share, in the prior-year period. Second-quarter cash from operations before changes in operating assets and liabilities* totaled $1.26 billion, compared with $2.3 billion in the prior-year period.

Apache's second-quarter adjusted earnings,* which exclude certain items that impact the comparability of operating results, totaled $474 million, or $1.41 per share, compared to adjusted earnings of $1.44 billion, or $4.28 per share, in the prior-year period.

"The strength of Apache's geological and geographical diversity, along with our balanced product mix, fueled our second-quarter results," said G. Steven Farris, chairman and chief executive officer.

"Initial production from development projects in the Gulf of Mexico and the Western Desert of Egypt, combined with rebounding oil prices, more than offset the continuing deterioration of North American natural gas prices during the quarter," he said. "With continued drilling successes in Egypt, the Gulf and the North Sea, Apache has strong momentum going into the second half of the year."

Oil production comprised 48 percent of Apache's worldwide output, but 72 percent of oil and gas revenues. The company's oil and gas revenue per boe increased 19 percent from the first quarter. Apache received an average of $58.15 per barrel of oil, up 37 percent from the first quarter, and $3.48 per thousand cubic feet of gas, down 9 percent from the first quarter. Prices for both commodities were substantially below year-earlier levels.

"Our regions' focus on driving down lifting costs has resulted in lower costs on a boe basis for two quarters in a row, including a 6-percent decline from the first quarter to the second," Farris said.

   Recent drilling and operational highlights included:   --  The Falcon-1x discovery in Egypt's Matruh Concession tested 4,400       barrels per day from the Lower Cretaceous Alam El Buieb formation,       with production expected to commence in the third quarter. The well       also tested an aggregate of 46 million cubic feet of gas (MMcf) and       2,368 barrels of condensate per day from two other zones that will not       be produced until additional processing and transportation capacity is       developed.   --  The Hydra-5x, an appraisal well in Egypt's Shushan Concession, tested       21 MMcf and 3,744 barrels of condensate per day from the Jurassic       Upper Safa formation. The Hydra field is expected to be developed       after completion of a gas sales agreement with the Egyptian General       Petroleum Corp.   --  Three new horizontal wells in the Horn River shale gas play in       northeast British Columbia had initial gross production rates of about       16 MMcf per day each, strengthening estimates that individual wells in       the play potentially can recover about 10 billion cubic feet (Bcf) of       natural gas. Apache and EnCana each have a 50-percent interest in a       joint venture that holds approximately 425,000 acres at Horn River.   --  In the North Sea, the Forties Charlie 6-3 well commenced production at       a rate of 10,500 barrels per day. The well is the seventh development       well brought on production at Forties in 2009; its initial production       rate is the field's highest since 1994.   --  In Egypt, Apache ramped up production through two new processing       trains at the Salam gas plant and is expected to reach gross       production capacity of 200 MMcf and 10,000 barrels of condensate per       day during the third quarter.    --  The deepwater Geauxpher Field at Garden Banks Block 462 - in water       2,700 feet deep about 150 miles off the Louisiana coast in the Gulf of       Mexico - came on line May 15 and produced a total of 4.3 Bcf by June       30. The field is currently producing 105 MMcf per day from two wells.       Apache has a 40-percent interest in the field.    

"Apache's strong financial position - with debt at 25 percent of capitalization and $772 million of cash on the balance sheet - provides many avenues for continued growth, either through our deep inventory of drilling prospects or through acquisitions," Farris said.

Apache Corporation is an oil and gas exploration and production company with operations in the United States, Canada, Egypt, the United Kingdom North Sea, Australia and Argentina.

*Adjusted earnings and cash from operations before changes in operating assets and liabilities are non-GAAP measures. Please see reconciliations below.

NOTE: Apache will conduct a conference call to discuss its second-quarter results at 1 p.m. Central time on Thursday, July 30. The call will be webcast from Apache's Web site, http://www.apachecorp.com/. The webcast replay and podcast will be archived on Apache's Web site. The conference call will be available for playback by telephone for one week beginning at approximately 3 p.m. on July 30. To access the telephone playback, dial (719) 457-0820 and provide Apache's confirmation code, 4860120.

This news release contains certain "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 including, without limitation, expectations, beliefs, plans and objectives regarding production and exploration activities. Any matters that are not historical facts are forward-looking and, accordingly, involve estimates, assumptions, risks and uncertainties, including, without limitation, risks, uncertainties and other factors discussed in our most recently filed Annual Report on Form 10-K, on our Web site and in our other public filings and press releases. There is no assurance that Apache's expectations will be realized, and actual results may differ materially from those expressed in the forward-looking statements. We assume no duty to update these statements as of any future date.

   APA-F                                APACHE CORPORATION                            FINANCIAL INFORMATION                    (In thousands, except per share data)                                For the Quarter       For the Six Months                                Ended June 30,         Ended June 30,                                --------------         --------------                                2009       2008         2009        2008                                ----       ----         ----        ----   REVENUES AND OTHER:     Oil and gas      production revenues   $2,074,344 $3,904,118   $3,677,958  $7,082,067     Other                      19,034     (3,927)      49,245       5,865                                ------     ------       ------       -----                             2,093,378  3,900,191    3,727,203   7,087,932                             ---------  ---------    ---------   ---------    COSTS AND EXPENSES:     Depreciation, depletion      and amortization         Recurring             573,359    627,668    1,153,976   1,248,157         Additional                  -          -    2,818,161           -     Asset retirement      obligation accretion      26,483     25,679       53,221      52,176     Lease operating      expenses                 405,273    446,738      802,762     901,376     Gathering and      transportation            33,479     39,767       66,818      80,743     Taxes other than      income                   115,941    298,548      203,280     541,126     General and      administrative            90,905     78,872      175,951     161,295     Financing costs, net       61,155     39,050      119,742      83,303                                ------     ------      -------      ------                             1,306,595  1,556,322    5,393,911   3,068,176                             ---------  ---------    ---------   ---------    INCOME (LOSS) BEFORE    INCOME TAXES               786,783  2,343,869   (1,666,708)  4,019,756     Current income tax      provision                218,247    702,106      220,741   1,189,906     Deferred income tax      provision (benefit)      123,816    196,534     (575,229)    363,108                               -------    -------     --------     -------    NET INCOME (LOSS)           444,720  1,445,229   (1,312,220)  2,466,742     Preferred stock      dividends                  1,420      1,420        2,840       2,840                                 -----      -----        -----       -----    INCOME (LOSS)    ATTRIBUTABLE TO COMMON    STOCK                     $443,300 $1,443,809  $(1,315,060) $2,463,902                              ======== ==========  ===========  ==========    NET INCOME (LOSS)    PER COMMON SHARE:     Basic                       $1.32      $4.32       $(3.92)      $7.38                                 =====      =====       ======       =====     Diluted                     $1.31      $4.28       $(3.92)      $7.32                                 =====      =====       ======       =====    WEIGHTED AVERAGE COMMON    SHARES OUTSTANDING         335,637    334,208      335,372     333,801                               =======    =======      =======     =======                                 APACHE CORPORATION                             FINANCIAL INFORMATION                     (In thousands, except per share data)                                 For the Quarter        For the Six Months                                 Ended June 30,          Ended June 30,                                 --------------          --------------                                2009         2008        2009        2008                                ----         ----        ----        ----   FINANCIAL DATA:     Revenues and other     $2,093,378   $3,900,191  $3,727,203  $7,087,932                            ==========   ==========  ==========  ==========      Income (Loss)      Attributable to      Common Stock            $443,300   $1,443,809 $(1,315,060) $2,463,902                              ========   ========== ===========  ==========      Basic Net Income      (Loss) Per Common      Share                      $1.32        $4.32      $(3.92)      $7.38                                 =====        =====      ======       =====      Diluted Net Income      (Loss) Per Common      Share                      $1.31        $4.28      $(3.92)      $7.32                                 =====        =====      ======       =====      Weighted Average      Common Shares      Outstanding              335,637      334,208     335,372     333,801                               =======      =======     =======     =======      Diluted Shares      Outstanding              337,365      337,676     335,372     336,802                               =======      =======     =======     =======                                  June 30,    December 31,                                 2009         2008                                 ----         ----    BALANCE SHEET DATA:     Cash and Cash      Equivalents             $771,557   $1,181,450     Short-term Investments          -      791,999     Other Current Assets    2,713,528    2,477,525     Property and      Equipment, net        22,290,308   23,958,517     Restricted Cash                 -       13,880     Goodwill                  189,252      189,252     Other Assets              437,282      573,862                               -------      -------     Total Assets          $26,401,927  $29,186,485                           ===========  ===========      Current Liabilities    $1,808,355   $2,520,435     Long-Term Debt          4,954,667    4,808,975     Deferred Credits and      Other Noncurrent      Liabilities            4,680,210    5,348,354     Shareholders' Equity   14,958,695   16,508,721                            ----------   ----------     Total Liabilities      and Shareholders'      Equity               $26,401,927  $29,186,485                           ===========  ===========      Common shares      outstanding at end      of period                335,747      334,710                                   For the Quarter        For the Six Months                                 Ended June 30,          Ended June 30,                                 --------------          --------------                                 2009         2008        2009        2008                                 ----         ----        ----        ----    COSTS INCURRED: (1)     North America      exploration and      development             $376,497     $801,279    $881,813  $1,544,635     International      exploration and      development              506,229      682,766     993,011   1,291,229                               -------      -------     -------   ---------                              $882,726   $1,484,045  $1,874,824  $2,835,864                              ========   ==========  ==========  ==========      Oil and gas property      acquisitions            $188,480     $142,848    $248,505    $150,795                              ========     ========    ========    ========    (1) Includes noncash asset retirement costs and capitalized interest as       follows:         Capitalized interest  $14,972      $17,878     $30,981     $35,056         Asset retirement          costs                $34,098      $86,434     $93,703    $171,506                            APACHE CORPORATION                        FINANCIAL INFORMATION                               For the Quarter    For the Six Months                              Ended June 30,      Ended June 30,                              --------------      --------------                              2009      2008      2009      2008                              ----      ----      ----      ----    PRODUCTION AND PRICING DATA:    OIL VOLUME - Barrels per day      United States           88,530   100,049    87,642   100,364     Canada                  15,833    17,746    16,090    17,547                             ------    ------    ------    ------       North America        104,363   117,795   103,732   117,911                            -------   -------   -------   -------     Egypt                   95,359    64,886    89,475    63,718     Australia               10,478     8,367     9,164     8,894     North Sea               59,688    56,570    60,089    57,670     Argentina               11,948    12,067    12,192    12,146                             ------    ------    ------    ------       International        177,473   141,890   170,920   142,428                            -------   -------   -------   -------         Total              281,836   259,685   274,652   260,339                            =======   =======   =======   =======     AVERAGE OIL PRICE PER BARREL      United States           $57.00    $97.64    $49.95    $90.59     Canada                   55.17    119.16     46.49    106.33       North America          56.72    100.88     49.41     92.93     Egypt                    60.30    126.20     51.90    112.28     Australia                63.01    133.79     49.74    116.78     North Sea                58.77    121.10     51.51    108.23     Argentina                46.17     50.12     46.73     47.61       International          58.99    118.14     51.28    105.41         Total                58.15    110.32     50.57     99.76     NATURAL GAS VOLUME - Mcf per day      United States          662,834   758,524   637,894   751,269     Canada                 373,796   357,828   365,551   359,289                            -------   -------   -------   -------       North America      1,036,630 1,116,352 1,003,445 1,110,558                          --------- --------- --------- ---------     Egypt                  376,737   233,793   347,443   238,385     Australia              161,069   129,531   151,607   160,355     North Sea                2,645     2,507     2,663     2,556     Argentina              192,542   197,284   192,250   181,209                            -------   -------   -------   -------       International        732,993   563,115   693,963   582,505                            -------   -------   -------   -------         Total            1,769,623 1,679,467 1,697,408 1,693,063                          ========= ========= ========= =========     AVERAGE NATURAL GAS PRICE PER MCF      United States            $3.88    $10.62     $4.21     $9.50     Canada                    3.86      9.63      4.26      8.59       North America           3.88     10.30      4.23      9.21     Egypt                     3.85      6.26      3.73      5.72     Australia                 1.82      2.17      1.71      2.14     North Sea                12.24     21.90      9.82     19.05     Argentina                 1.89      1.39      1.94      1.60       International           2.92      3.69      2.82      3.51         Total                 3.48      8.09      3.65      7.25     NGL VOLUME - Barrels per day     United States            5,483     7,231     5,198     7,236     Canada                   2,052     1,868     2,082     2,052                              -----     -----     -----     -----       North America          7,535     9,099     7,280     9,288     Argentina                3,091     2,905     3,114     2,812                              -----     -----     -----     -----         Total               10,626    12,004    10,394    12,100                             ======    ======    ======    ======     AVERAGE NGL PRICE PER BARREL      United States           $27.36    $65.27    $25.90    $61.32     Canada                   24.23     59.26     22.40     56.05       North America          26.50     64.04     24.90     60.15     Argentina                15.91     32.31     16.51     39.98         Total                23.42     56.36     22.39     55.46                              APACHE CORPORATION                         FINANCIAL INFORMATION                 (In thousands, except per share data)    NON-GAAP FINANCIAL MEASURES:    Reconciliation of income attributable to common stock to adjusted   earnings:   --------------------------------------------------------------------------   The press release discusses Apache's adjusted earnings.  Adjusted earnings   exclude certain items that management believes affect the comparability of   operating results and are meaningful for the following reasons:    -- Management uses adjusted earnings to evaluate the company's operational      trends and performance relative to other oil and gas producing      companies.    -- Management believes this presentation may be useful to investors who      follow the practice of some industry analysts who adjust reported      company earnings for items that may obscure underlying fundamentals and      trends.    -- The reconciling items below are the types of items management believes      are frequently excluded by analysts when evaluating the operating      trends and comparability of the company's results.                            For the Quarter       For the Six Months                           Ended June 30,         Ended June 30,                           --------------         --------------                           2009       2008        2009        2008                           ----       ----        ----        ----   Income (Loss)    Attributable to    Common Stock    (GAAP)              $443,300 $1,443,809 $(1,315,060) $2,463,902    Adjustments:     Foreign      currency      fluctuation      impact on      deferred tax      expense             31,164        281      26,350     (12,079)     Additional      depletion, net      of tax                   -          -   1,981,398           -                             ---        ---   ---------         ---   Adjusted    Earnings  (Non-    GAAP)               $474,464 $1,444,090    $692,688  $2,451,823                        ======== ==========    ========  ==========    Adjusted Earnings    Per Share (Non-GAAP)        Basic               $1.41      $4.32       $2.07       $7.35                           =====      =====       =====       =====       Diluted             $1.41      $4.28       $2.05       $7.28                           =====      =====       =====       =====    Average Number of    Common Shares        Basic             335,637    334,208     335,372     333,801                         =======    =======     =======     =======       Diluted           337,365    337,676     337,198     336,802                         =======    =======     =======     =======      Reconciliation of net cash provided by operating activities to cash from   operations before changes in operating assets and liabilities:   --------------------------------------------------------------------------    The press release discusses Apache's cash from operations before changes   in operating assets and liabilities.  It is presented because management   believes the information is useful for investors because it is used   internally and widely accepted by those following the oil and gas   industry as a financial indicator of a company's ability to generate cash   to internally fund exploration and development activities, fund dividend   programs, and service debt.  It is also used by research analysts to   value and compare oil and gas exploration and production companies, and   is frequently included in published research when providing investment   recommendations.  Cash from operations before changes in operating   assets and liabilities, therefore, is an additional measure of   liquidity, but is not a measure of financial performance under GAAP and   should not be considered as an alternative to cash flows from operating,   investing, or financing activities.     The following table reconciles net cash provided by operating activities   to cash from operations before changes in operating assets and   liabilities.                           For the Quarter       For the Six Months                           Ended June 30,         Ended June 30,                           2009       2008        2009        2008                           ----       ----        ----        ----   Net cash provided    by operating    activities          $823,513 $1,929,509  $1,366,729  $3,737,913   Changes in    operating assets    and liabilities      436,071    390,240     875,914     426,520                         -------    -------     -------     -------   Cash from operations    before changes in    operating      assets and      liabilities     $1,259,584 $2,319,749  $2,242,643  $4,164,433                      ========== ==========  ==========  ==========  

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