Houston-based Apache Corp. (NYSE: APA) won't be lured into the latest M&A frenzy. "We like what we are doing," Raymond Plank, chairman, said at the company's annual meeting in May. "We like our employees and what they are doing with new technology. We like our poison pill and don't want to be vulnerable to some scalawag out there who offers us a 20% premium." The company's track record boasts several successes. In line with its "build it to last" philosophy, Apache has posted 19 consecutive years of reserve growth and 24 out of 25 years of steady production growth. Much of that comes from land acquisitions. "Land brings you value, [although] you don't see it at the time you buy it," said G. Steven Farris, chief executive officer. In first-quarter 2005 the company reported record earnings of $559 million, up from $345 million in first-quarter 2004. Production averaged 462,000 barrels of oil equivalent per day, up 7% from the same time last year. Apache also plans to drill 112 wells in the Gulf this year and 1,250 in Canada. In addition, executives announced plans to expand exploration activities in western Canada with ExxonMobil Corp. (NYSE: XOM). Apache will get about 650,000 acres to explore in Alberta along with the 370,000 acres it received under the original agreement. Apache will now drill and operate 145 new wells during a 36-month period. Plank spoke about a "people first" mentality that makes employees and stockholders high priorities at Apache. "There is no question that Apache is and has been successful," Plank said. "Our employees have a sense of urgency, self respect and competitiveness...so yes, I'm very proud of who I associate with. He added that as for the "Sarbanes-Oxley types who want to tell us how to run our company and how to best meet the needs of our shareholders," Apache can satisfy shareholders without SOX help. -Bertie Taylor
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