Financial Performance of the Most Successful Companies in the Industry

Apache (ticker: APA) is an independent energy company that explores and produces

natural gas, crude oil, and natural gas liquids. The company has proved reserves of 1.9

billion barrels of oil equivalent mostly from North American regions, such as Gulf of

Mexico, the Gulf Coast of Texas and Louisiana, the Permian Basin in West Texas, the

Anadarko Basin in Oklahoma, and western Canada.

In 2004, Apache acquired more than two dozen mature US and Canadian fields from

Exxon Mobil for $347 million and Gulf of Mexico properties from Anadarko Petroleum

for $525 million (www.apachecorp.com). The table below shows the financial wealth being of the company.

Performance more

Growth of $10,000 08-19-05

Total Return%

2002

2003

2004

YTD

Stock

15.1

50.4

25.4

36.6

+/- Industry

16.5

8.3

-1.0

8.9

+/- S&P 500

37.2

21.7

14.5

34.9

Key Stats

Last Close (08-19-05) $68.80

Market Cap $Mil 22,120

Sales $Mil 5,845

Morningstar Style Box Large Core

Industry Oil & Gas

Sector Energy

Stock Type

Hard Assets

Morningstar Stock Grades

Growth

B+

Profitability

A

Financial Health

A

Key Financial Ratios:

Financial Ratio YEAR

2004 2003 2002

P/E ratio 10.0 12.1 15.1

Debt/equity 32.0% 36.0% 45.0%

ROI 22.89% 19.85% 5.91%

ROS 78.3% 75.1% 72.9%

Yield 25.40% 50.40% 15.10%

This stock has seen steadily growing revenue and remarkable earnings growth over the past three years. Apache’s