Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | APA | |
Entity Registrant Name | APACHE CORP | |
Entity Central Index Key | 6,769 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 379,429,334 |
Statement of Consolidated Opera
Statement of Consolidated Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||
Oil and gas production revenues | ||||||
Oil and Gas Production Revenues | $ 1,439 | $ 1,606 | [1] | $ 3,912 | $ 5,256 | [1] |
Other | (6) | (75) | [1] | (30) | (53) | [1] |
Gain (loss) on divestitures | 5 | (5) | [1] | 21 | 204 | [1],[2] |
Total revenues and other | 1,438 | 1,526 | [1] | 3,903 | 5,407 | [1] |
OPERATING EXPENSES: | ||||||
Lease operating expenses | 382 | 450 | [1] | 1,119 | 1,398 | [1] |
Gathering and transportation | 51 | 58 | [1] | 155 | 163 | [1] |
Taxes other than income | 9 | 104 | [1] | 85 | 232 | [1] |
Exploration | 161 | 223 | [1] | 347 | 706 | [1] |
General and administrative | 102 | 89 | [1] | 298 | 284 | [1] |
Depreciation, depletion, and amortization: | ||||||
Depreciation, depletion and amortization | 648 | 872 | 1,995 | 2,492 | [2] | |
Asset retirement obligation accretion | 40 | 37 | [1] | 116 | 109 | [1],[2] |
Impairments | 836 | 3,903 | [1] | 1,009 | 6,327 | [1],[2] |
Transaction, reorganization, and separation | 12 | 0 | [1] | 36 | 120 | [1] |
Financing costs, net | 102 | 160 | [1] | 311 | 401 | [1] |
Total operating expenses | 2,343 | 5,896 | [1] | 5,471 | 12,232 | [1] |
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (905) | (4,370) | [1] | (1,568) | (6,825) | [1] |
Current income tax provision (benefit) | 150 | (270) | [1] | 284 | 578 | [1] |
Deferred income tax provision (benefit) | (529) | 19 | [1] | (755) | (1,299) | [1],[2] |
NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST | (526) | (4,119) | [1] | (1,097) | (6,104) | [1] |
Net loss from discontinued operations, net of tax | (33) | (17) | [1] | (33) | (135) | [1] |
NET LOSS INCLUDING NONCONTROLLING INTEREST | (559) | (4,136) | [1] | (1,130) | (6,239) | [1],[2] |
Net income attributable to noncontrolling interest | 48 | 7 | [1] | 93 | 98 | [1] |
NET LOSS ATTRIBUTABLE TO COMMON STOCK | (607) | (4,143) | [1] | (1,223) | (6,337) | [1] |
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS: | ||||||
Net loss from continuing operations attributable to common shareholders | (574) | (4,126) | [1] | (1,190) | (6,202) | [1] |
Net loss from discontinued operations | (33) | (17) | [1] | (33) | (135) | [1],[2] |
NET LOSS ATTRIBUTABLE TO COMMON STOCK | $ (607) | $ (4,143) | [1] | $ (1,223) | $ (6,337) | [1] |
NET LOSS PER COMMON SHARE: | ||||||
Basic net loss from continuing operations per share | $ (1.51) | $ (10.91) | [1] | $ (3.14) | $ (16.42) | [1] |
Basic net loss from discontinued operations per share | (0.09) | (0.04) | [1] | (0.08) | (0.36) | [1] |
Basic net loss per share | (1.60) | (10.95) | [1] | (3.22) | (16.78) | [1] |
DILUTED NET LOSS PER COMMON SHARE: | ||||||
Diluted net loss from continuing operations per share | (1.51) | (10.91) | [1] | (3.14) | (16.42) | [1] |
Diluted net loss from discontinued operations per share | (0.09) | (0.04) | [1] | (0.08) | (0.36) | [1] |
Diluted net loss per share | $ (1.60) | $ (10.95) | [1] | $ (3.22) | $ (16.78) | [1] |
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | ||||||
Basic (in shares) | 380 | 378 | [1] | 379 | 378 | [1] |
Diluted (in shares) | 380 | 378 | [1] | 379 | 378 | [1] |
DIVIDENDS DECLARED PER COMMON SHARE | $ 0.25 | $ 0.25 | $ 0.75 | $ 0.75 | ||
Oil and gas property and equipment [Member] | ||||||
Depreciation, depletion, and amortization: | ||||||
Depreciation, depletion and amortization | $ 610 | $ 793 | [1] | $ 1,875 | $ 2,247 | [1] |
Other assets [Member] | ||||||
Depreciation, depletion, and amortization: | ||||||
Depreciation, depletion and amortization | 38 | 79 | [1] | 120 | 245 | [1] |
Oil [Member] | ||||||
Oil and gas production revenues | ||||||
Oil and Gas Production Revenues | 1,117 | 1,238 | [1] | 3,057 | 4,149 | [1] |
Gas [Member] | ||||||
Oil and gas production revenues | ||||||
Oil and Gas Production Revenues | 263 | 318 | [1] | 695 | 941 | [1] |
Natural gas liquids [Member] | ||||||
Oil and gas production revenues | ||||||
Oil and Gas Production Revenues | $ 59 | $ 50 | [1] | $ 160 | $ 166 | [1] |
[1] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. | |||||
[2] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. |
Statement of Consolidated Cash
Statement of Consolidated Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | [2] | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net loss including noncontrolling interest | $ (1,130) | $ (6,239) | [1] | |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||
Loss from discontinued operations | 33 | 135 | [1] | |
Gain on divestitures | (21) | (204) | [1] | |
Exploratory dry hole expense and unproved leasehold impairments | 260 | 584 | ||
Depreciation, depletion, and amortization | 1,995 | 2,492 | ||
Asset retirement obligation accretion | 116 | 109 | [1] | |
Impairments | 1,009 | 6,327 | [1] | |
Deferred income tax benefit | (755) | (1,299) | [1] | |
Other | 126 | 80 | ||
Changes in operating assets and liabilities: | ||||
Receivables | 192 | 585 | ||
Inventories | (2) | 54 | ||
Drilling advances | (36) | 125 | ||
Deferred charges and other | 40 | (117) | ||
Accounts payable | (93) | (463) | ||
Accrued expenses | (67) | 109 | ||
Deferred credits and noncurrent liabilities | (33) | 102 | ||
NET CASH PROVIDED BY CONTINUING OPERATING ACTIVITIES | 1,634 | 2,380 | ||
NET CASH PROVIDED BY DISCONTINUED OPERATIONS | 0 | 113 | ||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 1,634 | 2,493 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Additions to oil and gas property | (1,281) | (3,562) | ||
Leasehold and property acquisitions | (169) | (254) | ||
Additions to gas gathering, transmission, and processing facilities | (33) | (113) | ||
Proceeds from sale of Kitimat LNG project | 0 | 854 | ||
Proceeds from sale of other oil and gas properties | 74 | 148 | ||
Other, net | 47 | (99) | ||
NET CASH USED IN CONTINUING INVESTING ACTIVITIES | (1,362) | (3,026) | ||
NET CASH PROVIDED BY DISCONTINUED OPERATIONS | 0 | 4,372 | ||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (1,362) | 1,346 | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Commercial paper and bank credit facilities, net | 0 | (1,570) | ||
Payment of fixed-rate debt | (1) | (939) | ||
Distributions to noncontrolling interest | (215) | (97) | ||
Dividends paid | (284) | (283) | ||
Other | (9) | 26 | ||
NET CASH USED IN FINANCING ACTIVITIES | (509) | (2,863) | ||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (237) | 976 | ||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 1,467 | [3] | 679 | |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 1,230 | 1,655 | ||
SUPPLEMENTARY CASH FLOW DATA: | ||||
Interest paid, net of capitalized interest | 345 | 385 | ||
Income taxes paid, net of refunds | $ 256 | $ 270 | ||
[1] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. | |||
[2] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. | |||
[3] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. |
Consolidated Balance Sheet (Una
Consolidated Balance Sheet (Unaudited) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 1,230 | $ 1,467 | [1] |
Receivables, net of allowance | 1,064 | 1,253 | [1] |
Inventories | 513 | 570 | [1] |
Drilling advances | 209 | 172 | [1] |
Prepaid assets and other | 256 | 290 | [1] |
Total current assets | 3,272 | 3,752 | [1] |
Oil and gas, on the basis of successful efforts accounting: | |||
Proved properties | 42,591 | 41,728 | [1] |
Unproved properties and properties under development, not being amortized | 2,061 | 2,277 | [1] |
Gathering, transmission and processing facilities | 886 | 1,052 | [1] |
Other | 1,102 | 1,093 | [1] |
Property and equipment, gross | 46,640 | 46,150 | [1] |
Less: Accumulated depreciation, depletion, and amortization | (27,178) | (25,312) | [1] |
Property and equipment, net | 19,462 | 20,838 | [1] |
OTHER ASSETS: | |||
Deferred charges and other | 415 | 910 | [1] |
Total assets | 23,149 | 25,500 | [1] |
CURRENT LIABILITIES: | |||
Accounts payable | 557 | 618 | [1] |
Other current liabilities (Note 5) | 1,071 | 1,223 | [1] |
Total current liabilities | 1,628 | 1,841 | [1] |
LONG-TERM DEBT | 8,721 | 8,716 | [1] |
DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES: | |||
Income taxes | 1,783 | 2,529 | [1] |
Asset retirement obligation | 2,742 | 2,562 | [1] |
Other | 326 | 362 | [1] |
Total deferred credits and other noncurrent liabilities | 4,851 | 5,453 | [1] |
COMMITMENTS AND CONTINGENCIES (Note 9) | |||
EQUITY: | |||
Common stock, $0.625 par, 860,000,000 shares authorized, 412,602,756 and 411,218,105 shares issued, respectively | 258 | 257 | [1] |
Paid-in capital | 12,421 | 12,619 | [1] |
Accumulated deficit | (3,203) | (1,980) | [1] |
Treasury stock, at cost, 33,173,422 and 33,183,930 shares, respectively | (2,888) | (2,889) | [1] |
Accumulated other comprehensive loss | (119) | (119) | [1] |
APACHE SHAREHOLDERS’ EQUITY | 6,469 | 7,888 | [1] |
Noncontrolling interest | 1,480 | 1,602 | [1] |
TOTAL EQUITY | 7,949 | 9,490 | [1] |
TOTAL LIABILITIES AND EQUITY | $ 23,149 | $ 25,500 | [1] |
[1] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. |
Consolidated Balance Sheet (Un5
Consolidated Balance Sheet (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.625 | $ 0.625 |
Common stock, shares authorized | 860,000,000 | 860,000,000 |
Common stock, shares issued | 412,602,756 | 411,218,105 |
Treasury stock, shares | 33,173,422 | 33,183,930 |
Statement of Consolidated Chang
Statement of Consolidated Changes in Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock [Member] | Paid-In Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Apache Shareholders' Equity [Member] | Non Controlling Interest [Member] | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Effect of change in accounting principle | Effect of change in accounting principle [Member] | $ (7,596) | $ 152 | $ (7,594) | $ (7,442) | $ (154) | ||||
Beginning Balance (Previously Reported [Member]) at Dec. 31, 2014 | 28,137 | $ 256 | 12,438 | 16,249 | $ (2,890) | $ (116) | 25,937 | 2,200 | |
Beginning Balance at Dec. 31, 2014 | 20,541 | 256 | 12,590 | 8,655 | (2,890) | (116) | 18,495 | 2,046 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | Previously Reported [Member] | (15,846) | ||||||||
Net income (loss) | (6,239) | [1],[2] | (6,337) | (6,337) | 98 | ||||
Distributions to noncontrolling interest | (97) | (97) | |||||||
Common dividends | (283) | (283) | (283) | ||||||
Other | 61 | 1 | 59 | 1 | 61 | ||||
Ending Balance at Sep. 30, 2015 | 13,983 | 257 | 12,649 | 2,035 | (2,889) | (116) | 11,936 | 2,047 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Effect of change in accounting principle | Effect of change in accounting principle [Member] | 5,262 | 152 | 5,173 | (3) | 5,322 | (60) | |||
Beginning Balance (Previously Reported [Member]) at Dec. 31, 2015 | 4,228 | 257 | 12,467 | (7,153) | (2,889) | (116) | 2,566 | 1,662 | |
Beginning Balance at Dec. 31, 2015 | 9,490 | [3] | 257 | 12,619 | (1,980) | (2,889) | (119) | 7,888 | 1,602 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | Previously Reported [Member] | (1,531) | ||||||||
Net income (loss) | (1,130) | (1,223) | (1,223) | 93 | |||||
Distributions to noncontrolling interest | (215) | (215) | |||||||
Common dividends | (284) | (284) | (284) | ||||||
Other | 88 | 1 | 86 | 1 | 88 | ||||
Ending Balance (Previously Reported [Member]) at Sep. 30, 2016 | 2,296 | ||||||||
Ending Balance at Sep. 30, 2016 | $ 7,949 | $ 258 | $ 12,421 | $ (3,203) | $ (2,888) | $ (119) | $ 6,469 | $ 1,480 | |
[1] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. | ||||||||
[2] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. | ||||||||
[3] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. |
Statement of Consolidated Chan7
Statement of Consolidated Changes in Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock, dividends, per share | $ 0.25 | $ 0.25 | $ 0.75 | $ 0.75 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company’s financial statements for prior periods include reclassifications that were made to conform to the current-period presentation. During the second quarter of 2015, Apache completed the sale of its Australian LNG business and oil and gas assets. Results of operations and consolidated cash flows for the divested Australia assets are reflected as discontinued operations in the Company’s financial statements for all periods presented. For more information regarding these divestitures, please refer to Note 3—Acquisitions and Divestitures. Recast Financial Information for Change in Accounting Principle In the second quarter of 2016, Apache voluntarily changed its method of accounting for its oil and gas exploration and development activities from the full cost method to the successful efforts method of accounting. As prescribed by the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 250 “Accounting Changes and Error Corrections,” the financial information for prior periods has been recast to reflect retrospective application of the successful efforts method of accounting in accordance with ASC 932 “Extractive Activities—Oil and Gas.” Although the full cost method of accounting for oil and gas exploration and development activities continues to be an accepted alternative, the successful efforts method of accounting is the generally preferred method of the U.S. Securities and Exchange Commission (SEC) and is more widely used in the industry such that the change improves comparability of the Company’s financial statements to its peers. The Company believes the successful efforts method provides a more representational depiction of assets and operating results. The successful efforts method also provides for the Company’s investments in oil and gas properties to be assessed for impairment in accordance with ASC 360 “Property, Plant, and Equipment” rather than valuations based on prices and costs prescribed under the full cost method as of the balance sheet date. For more detailed information regarding the effects of the change to the successful efforts method, please refer to Note 2—Change in Accounting Principle. The Company has recast certain historical information for all periods presented, including the Statement of Consolidated Operations, Statement of Consolidated Cash Flows, Consolidated Balance Sheet, Statement of Consolidated Changes in Equity, and related information in Notes 1, 2, 3, 4, 5, 7, 8, 10, 11, and 12. In the first quarter of 2016 , the Company retrospectively adopted a new accounting standard update ASU 2015-03 “ Simplifying the Presentation of Debt Issuance Costs, ” which requires debt issuance costs to be presented as a direct deduction from the carrying value of the associated debt liability, consistent with debt discounts. For more information regarding this update, please refer to Note 7—Debt and Financing Costs. As of September 30, 2016 , Apache’s significant accounting policies are consistent with those discussed in Note 1—Summary of Significant Accounting Policies to the consolidated financial statements contained in Apache’s Current Report on Form 8-K dated August 4, 2016, for the fiscal year ended December 31, 2015 . Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates with regard to these financial statements include the fair value determination of acquired assets and liabilities, the estimate of proved oil and gas reserves and related present value estimates of future net cash flows therefrom, the assessment of asset retirement obligations, the estimates of fair value for long-lived assets and goodwill, and the estimate of income taxes. Actual results could differ from those estimates. Fair Value Measurements Certain assets and liabilities are reported at fair value on a recurring basis in Apache’s consolidated balance sheet. ASC 820-10-35 provides a hierarchy that prioritizes and defines the types of inputs used to measure fair value. The fair value hierarchy gives the highest priority to Level 1 inputs, which consist of unadjusted quoted prices for identical instruments in active markets. Level 2 inputs consist of quoted prices for similar instruments. Level 3 valuations are derived from inputs that are significant and unobservable; hence, these valuations have the lowest priority. The valuation techniques that may be used to measure fair value include a market approach, an income approach, and a cost approach. A market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. An income approach uses valuation techniques to convert future amounts to a single present amount based on current market expectations, including present value techniques, option-pricing models, and the excess earnings method. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Apache also uses fair value measurements on a nonrecurring basis when certain qualitative assessments of its assets indicate a potential impairment. For the third quarter and nine-month period ended September 30, 2016, the Company recorded asset impairments totaling $951 million and $1.2 billion , respectively, in connection with fair value assessments. For the third quarter and nine-month period ended September 30, 2016, impairments totaling $470 million and $645 million , respectively, were recorded for oil and gas properties in the U.S. and Canada, as discussed in further detail below in “Oil and Gas Property.” During the second quarter of 2016, the Company also recorded an impairment of $105 million for gas gathering, transmission, and processing (GTP) assets. The fair values of the impaired assets were determined using an income approach, which considered internal estimates of future throughput volumes, processing rates, and costs. These assumptions were applied to develop future cash flow projections that were then discounted to estimated fair value, using a discount rate believed to be consistent with those applied by market participants. Apache has classified these non-recurring fair value measurements as Level 3 in the fair value hierarchy. The resulting fair value of $175 million was reflected in GTP assets. On September 15, 2016, U.K. Finance Act 2016 received Royal Assent, providing tax relief to exploration and production companies operating in the U.K. North Sea. Under the enacted legislation, the U.K. Petroleum Revenue Tax (PRT) rate was reduced to zero from the previously enacted 35 percent rate in effect from January 1, 2016. PRT expense ceased prospectively from that date. As a further result of this change, the Company reduced the recoverable PRT benefits that would have been realized from future abandonment activities by $481 million ( $289 million net of tax). This recoverable PRT benefit had an aggregate remaining value of $13 million as of September 30, 2016, which is recorded in “Deferred charges and other” on the consolidated balance sheet. The recoverable value of the PRT benefit was estimated using the income approach. The expected future cash flows used in the determination were based on anticipated spending and timing of planned future abandonment activities for applicable fields, considering all available information at the date of review. Apache has classified this fair value measurement as Level 3 in the fair value hierarchy. For the nine-month period ended September 30, 2015, the Company recorded asset impairments totaling $6.8 billion in connection with fair value assessments in the current low commodity price environment. Impairments totaling $6.3 billion were recorded for oil and gas properties, which were written down to their fair values. Also, for the nine-month period ended September 30, 2015, the Company recorded $210 million for the impairment of certain GTP assets, which were written down to their fair values, $163 million for the impairment of goodwill, $148 million for the impairment of an equity method investment, and $9 million for the impairment of inventory. Oil and Gas Property The Company follows the successful efforts method of accounting for its oil and gas property. Under this method of accounting, exploration costs such as exploratory geological and geophysical costs, delay rentals, and exploration overhead are expensed as incurred. All costs related to production, general corporate overhead, and similar activities are expensed as incurred. If an exploratory well provides evidence to justify potential development of reserves, drilling costs associated with the well are initially capitalized, or suspended, pending a determination as to whether a commercially sufficient quantity of proved reserves can be attributed to the area as a result of drilling. This determination may take longer than one year in certain areas depending on, among other things, the amount of hydrocarbons discovered, the outcome of planned geological and engineering studies, the need for additional appraisal drilling activities to determine whether the discovery is sufficient to support an economic development plan, and government sanctioning of development activities in certain international locations. At the end of each quarter, management reviews the status of all suspended exploratory well costs in light of ongoing exploration activities; in particular, whether the Company is making sufficient progress in its ongoing exploration and appraisal efforts or, in the case of discoveries requiring government sanctioning, whether development negotiations are underway and proceeding as planned. If management determines that future appraisal drilling or development activities are unlikely to occur, associated exploratory well costs are expensed as dry hole costs. Acquisition costs of unproved properties are assessed for impairment at least annually and are transferred to proved oil and gas properties to the extent the costs are associated with successful exploration activities. Significant undeveloped leases are assessed individually for impairment based on the Company’s current exploration plans. Unproved oil and gas properties with individually insignificant lease acquisition costs are amortized on a group basis over the average lease term at rates that provide for full amortization of unsuccessful leases upon lease expiration or abandonment. Costs of expired or abandoned leases are charged to exploration expense, while costs of productive leases are transferred to proved oil and gas properties. Costs of maintaining and retaining unproved properties, as well as amortization of individually insignificant leases and impairment of unsuccessful leases, are included in exploration costs in the statement of consolidated operations. Costs to develop proved reserves, including the costs of all development wells and related equipment used in the production of crude oil and natural gas, are capitalized. Depreciation of the cost of proved oil and gas properties is calculated using the unit-of-production (UOP) method. The UOP calculation amortizes the remaining historical capitalized costs of oil and gas properties based on the volumes produced. The reserve base used to calculate depreciation for property acquisition costs is the sum of proved developed reserves and proved undeveloped reserves. With respect to lease and well equipment costs, which include development costs and successful exploration drilling costs, the reserve base includes only proved developed reserves. Estimated future dismantlement, restoration and abandonment costs, net of salvage values, are included in the depreciable cost. Oil and gas properties are grouped for depreciation in accordance with ASC 932 “Extractive Activities - Oil and Gas.” The basis for grouping is a reasonable aggregation of properties with a common geological structural feature or stratigraphic condition, such as a reservoir or field. When circumstances indicate that proved oil and gas properties may be impaired, the Company compares unamortized capitalized costs to the expected undiscounted pre-tax future cash flows for the associated assets grouped at the lowest level for which identifiable cash flows are independent of cash flows of other assets. If the expected undiscounted pre-tax future cash flows, based on Apache’s estimate of future crude oil and natural gas prices, operating costs, anticipated production from proved reserves and other relevant data, are lower than the unamortized capitalized cost, the capitalized cost is reduced to fair value. Fair value is generally estimated using the income approach described in the ASC 820 “Fair Value Measurement.” If applicable, the Company utilizes accepted bids as the basis for determining fair value. The expected future cash flows used for impairment reviews and related fair value calculations are typically based on judgmental assessments of future production volumes, commodity prices, operating costs, and capital investment plans, considering all available information at the date of review. These assumptions are applied to develop future cash flow projections that are then discounted to estimated fair value, using a discount rate believed to be consistent with those applied by market participants. Apache has classified these fair value measurements as Level 3 in the fair value hierarchy. The following table represents non-cash impairments of the carrying value of the Company’s proved and unproved property and equipment for the third quarters and first nine months of 2016 and 2015 : Quarter Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In millions) Oil and Gas Property: Proved $ 355 $ 3,536 $ 423 $ 5,797 Unproved 114 199 222 515 Proved properties impaired during the second and third quarters of 2016 had aggregate fair values of $143 million and $163 million , respectively. Proved properties impaired during the first, second, and third quarters of 2015 had aggregate fair values of $1.2 billion , $516 million , and $1.9 billion , respectively. On the statement of consolidated operations, unproved impairments are recorded in exploration expense, and proved impairments are recorded in impairments. Gains and losses on significant divestitures are recognized in the statement of consolidated operations. New Pronouncements Issued But Not Yet Adopted In August 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-15, Statement of Cash Flows (Topic 230). ASU 2016-15 seeks to reduce the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the provisions of ASU 2016-15 and assessing the impact, if any, it may have on its statement of consolidated cash flows. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses.” The standard changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, held-to-maturity debt securities and loans, and requires entities to use a new forward-looking expected loss model that will result in the earlier recognition of allowance for losses. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for a fiscal year beginning after December 15, 2018, including interim periods within that fiscal year. The Company does not expect to adopt the guidance early. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is evaluating the new guidance and does not believe this standard will have a material impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, which seeks to simplify accounting for share-based payment transactions including income tax consequences, classification of awards as either equity or liabilities, and the classification on the statement of cash flows. The new standard requires the Company to recognize the income tax effects of awards in the income statement when the awards vest or are settled. The guidance is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted and if an entity early adopts the guidance in an interim period, any adjustments must be reflected as of the beginning of the fiscal year that includes that interim period. The Company is evaluating the new guidance and does not believe this standard will have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, a new lease standard requiring lessees to recognize lease assets and lease liabilities for most leases classified as operating leases under previous U.S. GAAP. The guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company will be required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. In May 2014, the FASB and the International Accounting Standards Board (IASB) issued a joint revenue recognition standard, ASU 2014-09. The new standard removes inconsistencies in existing standards, changes the way companies recognize revenue from contracts with customers, and increases disclosure requirements. The guidance requires companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. In March 2016, the FASB issued ASU 2016-08, which provides further clarification on the principal versus agent evaluation. The guidance is effective for annual and interim periods beginning after December 15, 2017. The standard is required to be adopted using either the full retrospective approach, with all prior periods presented adjusted, or the modified retrospective approach, with a cumulative adjustment to retained earnings on the opening balance sheet. The Company is currently evaluating the level of effort needed to implement the standard, the impact of adopting this standard on its consolidated financial statements, and whether to use the full retrospective approach or the modified retrospective approach. |
Change in Accounting Principle
Change in Accounting Principle | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Change in Accounting Principle | CHANGE IN ACCOUNTING PRINCIPLE During the second quarter of 2016, the Company voluntarily changed its method of accounting for oil and gas exploration and development activities from the full cost method to the successful efforts method. Accordingly, financial information for prior periods has been recast to reflect retrospective application of the successful efforts method. Under successful efforts, exploration expenditures such as exploratory dry holes, exploratory geological and geophysical costs, delay rentals, unproved impairments, and exploration overhead are charged against earnings, versus being capitalized under the full cost method of accounting. Successful efforts also provides for the assessment of potential property impairments under ASC 360 by comparing the net carrying value of oil and gas properties with associated projected undiscounted pre-tax future net cash flows. If the expected undiscounted pre-tax future net cash flows are lower than the unamortized capitalized costs, the capitalized cost is reduced to fair value. Under the full cost method of accounting, a write-down would be required if the net carrying value of oil and gas properties exceeds a full cost “ceiling,” using an unweighted arithmetic average of commodity prices in effect on the first day of each of the previous 12 months. In addition, gains or losses, if applicable, are generally recognized on the dispositions of oil and gas property and equipment under the successful efforts method, as opposed to an adjustment to the net carrying value of the remaining assets under the full cost method. Apache’s consolidated financial statements have been recast to reflect these differences. The following tables present the effects of the change to the successful efforts method in the statement of consolidated operations: Changes to the Statement of Consolidated Operations For the Quarter Ended September 30, 2016 Under Full Cost Changes As Reported Under Successful Efforts (In millions, except per share data) Oil revenues $ 1,058 $ 59 $ 1,117 Natural gas revenues 273 (10 ) 263 NGL revenues 59 — 59 Oil and gas production revenues 1,390 49 1,439 Other (5 ) (1 ) (6 ) Gain on divestiture 2 3 5 Exploration — 161 161 Depreciation, depletion, and amortization: Oil and Gas Property and Equipment Recurring 473 137 610 Additional 328 (328 ) — Impairments 481 355 836 Financing costs, net 92 10 102 Current income tax provision 101 49 150 Deferred income tax provision (benefit) (407 ) (122 ) (529 ) NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST (315 ) (211 ) (526 ) Net income (loss) attributable to noncontrolling interest 37 11 48 NET LOSS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS (352 ) (222 ) (574 ) Net income (loss) from discontinued operations (33 ) — (33 ) NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS (385 ) (222 ) (607 ) Per common share Basic net loss from continuing operations per share $ (0.96 ) $ (0.55 ) $ (1.51 ) Basic net loss from discontinued operations per share (0.06 ) — (0.09 ) Basic net loss per share $ (1.02 ) $ (0.55 ) $ (1.60 ) Diluted net loss from continuing operations per share $ (0.96 ) $ (0.55 ) $ (1.51 ) Diluted net loss from discontinued operations per share (0.06 ) — (0.09 ) Diluted net loss per share $ (1.02 ) $ (0.55 ) $ (1.60 ) Changes to the Statement of Consolidated Operations For the Quarter Ended September 30, 2015 Under Full Cost Changes* As Reported Under Successful Efforts (In millions, except per share data) Oil revenues $ 1,213 $ 25 $ 1,238 Natural gas revenues 309 9 318 NGL revenues 50 — 50 Oil and gas production revenues 1,572 34 1,606 Other (76 ) 1 (75 ) Loss on divestiture — (5 ) (5 ) Exploration — 223 223 General and administrative 86 3 89 Depreciation, depletion, and amortization: Oil and Gas Property and Equipment Recurring 829 (36 ) 793 Additional 5,721 (5,721 ) — Impairments 367 3,536 3,903 Financing costs, net 107 53 160 Current income tax benefit (84 ) (186 ) (270 ) Deferred income tax provision (benefit) (707 ) 726 19 NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST (5,551 ) 1,432 (4,119 ) Net income attributable to noncontrolling interest 9 (2 ) 7 NET LOSS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS (5,560 ) 1,434 (4,126 ) Net loss from discontinued operations (95 ) 78 (17 ) NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS (5,655 ) 1,512 (4,143 ) Per common share Basic net loss from continuing operations per share $ (14.70 ) $ 3.79 $ (10.91 ) Basic net loss from discontinued operations per share (0.25 ) 0.21 (0.04 ) Basic net loss per share $ (14.95 ) $ 4.00 $ (10.95 ) Diluted net loss from continuing operations per share $ (14.70 ) $ 3.79 $ (10.91 ) Diluted net loss from discontinued operations per share (0.25 ) 0.21 (0.04 ) Diluted net loss per share $ (14.95 ) $ 4.00 $ (10.95 ) Changes to the Statement of Consolidated Operations For the Nine Months Ended September 30, 2016 Under Full Cost Changes* As Reported Under Successful Efforts (In millions, except per share data) Oil revenues $ 2,915 $ 142 $ 3,057 Natural gas revenues 715 (20 ) 695 NGL revenues 160 — 160 Oil and gas production revenues 3,790 122 3,912 Other (33 ) 3 (30 ) Gain on divestiture 5 16 21 Exploration — 347 347 Depreciation, depletion, and amortization: Oil and Gas Property and Equipment Recurring 1,532 343 1,875 Additional 1,486 (1,486 ) — Impairments 587 422 1,009 Financing costs, net 272 39 311 Current income tax provision 162 122 284 Deferred income tax provision (benefit) (708 ) (47 ) (755 ) NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST (1,498 ) 401 (1,097 ) Net income (loss) attributable to noncontrolling interest (56 ) 149 93 NET LOSS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS (1,442 ) 252 (1,190 ) Net income (loss) from discontinued operations (33 ) — (33 ) NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS (1,475 ) 252 (1,223 ) Per common share Basic net loss from continuing operations per share $ (3.83 ) $ 0.69 $ (3.14 ) Basic net loss from discontinued operations per share (0.06 ) — (0.08 ) Basic net loss per share $ (3.89 ) $ 0.69 $ (3.22 ) Diluted net loss from continuing operations per share $ (3.83 ) $ 0.69 $ (3.14 ) Diluted net loss from discontinued operations per share (0.06 ) — (0.08 ) Diluted net loss per share $ (3.89 ) $ 0.69 $ (3.22 ) Changes to the Statement of Consolidated Operations For the Nine Months Ended September 30, 2015 Under Full Cost Changes* As Reported Under Successful Efforts (In millions, except per share data) Oil revenues $ 4,092 $ 57 $ 4,149 Natural gas revenues 904 37 941 NGL revenues 166 — 166 Oil and gas production revenues 5,162 94 5,256 Other (59 ) 6 (53 ) Gain on divestiture — 204 204 Exploration — 706 706 General and administrative 279 5 284 Depreciation, depletion, and amortization: Oil and Gas Property and Equipment Recurring 2,751 (504 ) 2,247 Additional 18,757 (18,757 ) — Impairments 367 5,960 6,327 Financing costs, net 240 161 401 Current income tax provision 496 82 578 Deferred income tax provision (benefit) (5,167 ) 3,868 (1,299 ) NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST (14,887 ) 8,783 (6,104 ) Net income attributable to noncontrolling interest 60 38 98 NET LOSS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS (14,947 ) 8,745 (6,202 ) Net loss from discontinued operations (959 ) 824 (135 ) NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS (15,906 ) 9,569 (6,337 ) Per common share Basic net loss from continuing operations per share $ (39.58 ) $ 23.16 $ (16.42 ) Basic net loss from discontinued operations per share (2.54 ) 2.18 (0.36 ) Basic net loss per share $ (42.12 ) $ 25.34 $ (16.78 ) Diluted net loss from continuing operations per share $ (39.58 ) $ 23.16 $ (16.42 ) Diluted net loss from discontinued operations per share (2.54 ) 2.18 (0.36 ) Diluted net loss per share $ (42.12 ) $ 25.34 $ (16.78 ) The following tables present the effects of the change to the successful efforts method in the statement of consolidated cash flows: Changes to the Statement of Consolidated Cash Flows For the Nine Months Ended September 30, 2016 Under Full Cost Changes* As Reported Under Successful Efforts (In millions) Net loss including noncontrolling interest $ (1,531 ) $ 401 $ (1,130 ) Gain on divestitures, net (5 ) (16 ) (21 ) Exploratory dry hole expense and unproved leasehold impairments — 260 260 Depreciation, depletion, and amortization 3,138 (1,143 ) 1,995 Impairments 587 422 1,009 Provision for (benefit from) deferred income taxes (708 ) (47 ) (755 ) Changes in operating assets and liabilities 3 (2 ) 1 Net cash provided by operating activities 1,759 (125 ) 1,634 Additions to oil and gas property (1,406 ) 125 (1,281 ) Net cash used in investing activities (1,487 ) 125 (1,362 ) NET INCREASE (DECREASE) IN CASH (237 ) — (237 ) BEGINNING CASH BALANCE 1,467 — 1,467 ENDING CASH BALANCE 1,230 — 1,230 Changes to the Statement of Consolidated Cash Flows For the Nine Months Ended September 30, 2015 Under Full Cost Changes* As Reported Under Successful Efforts (In millions) Net loss including noncontrolling interest $ (15,846 ) $ 9,607 $ (6,239 ) Loss from discontinued operations 959 (824 ) 135 Gain on divestitures, net — (204 ) (204 ) Exploratory dry hole expense and unproved leasehold impairments — 584 584 Depreciation, depletion, and amortization 21,753 (19,261 ) 2,492 Impairments 367 5,960 6,327 Provision for (benefit from) deferred income taxes (5,167 ) 3,868 (1,299 ) Changes in operating assets and liabilities 317 78 395 Net cash provided by operating activities - continuing operations 2,572 (192 ) 2,380 Net cash provided by operating activities - discontinued operations 150 (37 ) 113 Additions to oil and gas property (3,844 ) 282 (3,562 ) Net cash used in investing activities - continuing operations (3,308 ) 282 (3,026 ) Net cash provided by investing activities - discontinued operations 4,335 37 4,372 NET INCREASE (DECREASE) IN CASH 886 90 976 BEGINNING CASH BALANCE 769 (90 ) 679 ENDING CASH BALANCE 1,655 — 1,655 The following tables present the effects of the change to the successful efforts method in the consolidated balance sheet: Changes to the Consolidated Balance Sheet September 30, 2016 Under Full Cost Changes As Reported Under Successful Efforts (In millions) PROPERTY AND EQUIPMENT: Property and equipment - cost $ 95,107 $ (48,467 ) $ 46,640 Less: Accumulated depreciation, depletion, and amortization (82,717 ) 55,539 (27,178 ) PROPERTY AND EQUIPMENT, NET 12,390 7,072 19,462 TOTAL ASSETS 16,077 7,072 23,149 Deferred income taxes 364 1,419 1,783 Paid-in capital 12,279 142 12,421 Accumulated deficit (8,628 ) 5,425 (3,203 ) Accumulated other comprehensive loss (116 ) (3 ) (119 ) Noncontrolling interest 1,391 89 1,480 TOTAL EQUITY 2,296 5,653 7,949 Changes to the Consolidated Balance Sheet December 31, 2015 Under Full Cost Changes* As Reported Under Successful Efforts (In millions) PROPERTY AND EQUIPMENT: Property and equipment - cost $ 93,825 $ (47,675 ) $ 46,150 Less: Accumulated depreciation, depletion, and amortization (79,706 ) 54,394 (25,312 ) PROPERTY AND EQUIPMENT, NET 14,119 6,719 20,838 TOTAL ASSETS 18,781 6,719 25,500 Deferred income taxes 1,072 1,457 2,529 Paid-in capital 12,467 152 12,619 Accumulated deficit (1) (7,153 ) 5,173 (1,980 ) Accumulated other comprehensive loss (116 ) (3 ) (119 ) Noncontrolling interest 1,662 (60 ) 1,602 TOTAL EQUITY 4,228 5,262 9,490 *In conjunction with recasting the financial information for the adoption of the successful efforts method of accounting, we corrected certain immaterial errors in the North Sea pertaining to the improper calculation of deferred tax liabilities associated with capitalized interest under the full cost method. (1) The cumulative effect of the change to the successful efforts method on retained earnings (accumulated deficit) as of January 1, 2015 was a decrease of $7.6 billion . |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | ACQUISITIONS AND DIVESTITURES 2016 Activity Leasehold and Property Acquisitions During the third quarter and first nine months of 2016 , Apache completed $51 million and $169 million , respectively, of leasehold and property acquisitions primarily in our North America onshore and Egypt regions. Transaction, Reorganization, and Separation During the third quarter and first nine months of 2016 , Apache recorded $12 million and $36 million , respectively, in expense related to various asset transactions, company reorganization, and employee separation. 2015 Activity Yara Pilbara Holdings Pty Limited Sale In October 2015, Apache completed the sale of its 49 percent interest in Yara Pilbara Holdings Pty Limited (YPHPL) for total cash proceeds of $391 million . The investment in YPHPL was accounted for under the equity method of accounting, with the balance recorded as a component of “Deferred charges and other” in Apache’s consolidated balance sheet, and the results of operations recorded as a component of “Other” under “Revenue and other” in the Company’s statement of consolidated operations. As of September 30, 2015, Apache recognized an impairment of $148 million on the YPHPL equity investment based on negotiated sale proceeds. No additional gain or loss was recorded upon completion of the sale. Canada Divestiture In April 2015, Apache's subsidiaries completed the sale of its 50 percent interest in the Kitimat LNG project and upstream acreage in the Horn River and Liard natural gas basins to Woodside Petroleum Limited (Woodside). Proceeds at closing were $854 million , of which approximately $344 million were associated with LNG assets and $510 million were associated with upstream assets. The Kitimat LNG assets classified as held for sale as of December 31, 2014 were impaired $655 million in the fourth quarter of 2014. Apache recognized a $146 million gain on the sale of the upstream assets upon completion of the sale. Australia Divestitures Woodside Sale In April 2015, Apache’s subsidiaries completed the sale of its interest in the Wheatstone LNG project and associated upstream oil and gas assets to Woodside. Proceeds at closing were $2.8 billion , of which approximately $1.4 billion were associated with LNG assets and $1.4 billion were associated with the upstream assets. The Wheatstone LNG assets and associated upstream assets were impaired $833 million in the fourth quarter of 2014 and classified as held for sale on the consolidated balance sheet as of December 31, 2014. An additional impairment of approximately $49 million was recognized in the first quarter of 2015. During the third quarter of 2016, Apache recognized an additional $23 million loss on the sale related to post-closing adjustments. Consortium Sale In June 2015, Apache’s subsidiaries completed the sale of the Company’s Australian subsidiary Apache Energy Limited (AEL) to a consortium of private equity funds managed by Macquarie Capital Group Limited and Brookfield Asset Management Inc. Total proceeds of $1.9 billion included customary, post-closing adjustments for the period between the effective date, October 1, 2014, and closing. A loss of approximately $139 million was recognized for the sale of AEL. Upon closing of the sale of substantially all Australian operations, the associated results of operations for the divested Australian assets and the losses on disposal were classified as discontinued operations in all periods presented in this Quarterly Report on Form 10-Q. Sales and other operating revenues and loss from discontinued operations related to the Australia dispositions were as follows: For the Quarter Ended September 30, For the Nine Months Ended September 30, 2016 2015 2016 2015 (In millions) Revenues and other from discontinued operations $ — $ — $ — $ 288 Impairment on Woodside sale $ — $ — $ — $ (49 ) Loss on Woodside sale (23 ) — (23 ) — Loss on Consortium sale — — — (139 ) Income from divested Australian operations — — — 28 Income tax benefit (expense) — (17 ) — 25 Loss from Australian discontinued operations, net of tax $ (23 ) $ (17 ) $ (23 ) $ (135 ) Leasehold and Property Acquisitions During the third quarter and first nine months of 2015 , Apache completed $126 million and $254 million , respectively, of leasehold and property acquisitions primarily in our North America onshore regions. Transaction, Reorganization, and Separation During the first nine months of 2015 , Apache recorded $120 million in expense related to various asset transactions, company reorganization, and employee separation. |
Capitalized Exploratory Well Co
Capitalized Exploratory Well Costs | 9 Months Ended |
Sep. 30, 2016 | |
Extractive Industries [Abstract] | |
Capitalized Exploratory Well Costs | CAPITALIZED EXPLORATORY WELL COSTS The Company’s capitalized exploratory well costs were $283 million and $245 million at September 30, 2016 and December 31, 2015 , respectively. Exploratory well costs that have been capitalized for a period greater than one year since the completion of drilling were $32 million and $61 million at September 30, 2016 and December 31, 2015, respectively. The exploratory well costs that had been capitalized for a period greater than one year at December 31, 2015 were associated with the Aviat discovery in the North Sea and comprised exploration and appraisal activities. The wells associated with the Aviat discovery were reclassified as proved properties during the nine months ended September 30, 2016. The amount of exploratory well costs capitalized for a period greater than one year increased by $32 million during the second quarter as a result of exploration drilling in Suriname. No suspended exploratory well costs previously capitalized for greater than one year at December 31, 2015 were charged to dry hole expense during the nine months ended September 30, 2016 . |
Other Current Liabilities
Other Current Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Other Current Liabilities | OTHER CURRENT LIABILITIES The following table provides detail of our other current liabilities as of September 30, 2016 and December 31, 2015 : September 30, 2016 December 31, 2015 (In millions) Accrued operating expenses $ 117 $ 139 Accrued exploration and development 495 637 Accrued compensation and benefits 147 166 Accrued interest 109 144 Accrued income taxes 66 47 Current debt 1 1 Current asset retirement obligation 36 36 Other 100 53 Total other current liabilities $ 1,071 $ 1,223 |
Asset Retirement Obligation
Asset Retirement Obligation | 9 Months Ended |
Sep. 30, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation | ASSET RETIREMENT OBLIGATION The following table describes changes to the Company’s asset retirement obligation (ARO) liability for the nine -month period ended September 30, 2016 : (In millions) Asset retirement obligation at December 31, 2015 $ 2,598 Liabilities incurred 7 Liabilities acquired 34 Liabilities divested (1 ) Liabilities settled (35 ) Accretion expense 116 Revisions in estimated liabilities 59 Asset retirement obligation at September 30, 2016 2,778 Less current portion 36 Asset retirement obligation, long-term $ 2,742 |
Debt and Financing Costs
Debt and Financing Costs | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt and Financing Costs | DEBT AND FINANCING COSTS The following table presents the carrying amounts and estimated fair values of the Company’s outstanding debt as of September 30, 2016 and December 31, 2015 : September 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value (In millions) Commercial paper and committed bank facilities $ — $ — $ — $ — Notes and debentures 8,722 9,429 8,717 8,330 Total Debt $ 8,722 $ 9,429 $ 8,717 $ 8,330 The Company’s debt is recorded at the carrying amount, net of related unamortized discount and debt issuance costs, on its consolidated balance sheet. The carrying amount of the Company’s commercial paper, committed bank facilities, and uncommitted bank lines approximates fair value because the interest rates are variable and reflective of market rates. Apache uses a market approach to determine the fair value of its notes and debentures using estimates provided by an independent investment financial data services firm (a Level 2 fair value measurement). As of September 30, 2016 , the Company had a $3.5 billion five -year revolving credit facility that matures in June 2020 . Proceeds from borrowings may be used for general corporate purposes. Apache’s available borrowing capacity under this facility supports its $3.5 billion commercial paper program. The commercial paper program, which is subject to market availability, facilitates Apache borrowing funds for up to 270 days at competitive interest rates. As of September 30, 2016 , the Company had no debt outstanding under commercial paper, committed bank facilities, and uncommitted bank lines. As of September 30, 2016 , the Company had a £900 million letter of credit facility that matures in February 2019. The facility is available for letters of credit and loans to cash collateralize letter of credit obligations to the extent letters of credit are unavailable under the facility. As of September 30, 2016, a letter of credit for approximately £96 million was outstanding under this facility. In April 2015, the FASB issued ASU 2015-03 “Simplifying the Presentation of Debt Issuance Costs,” which requires debt issuance costs to be presented as a direct deduction from the carrying value of the associated debt liability. The Company adopted this update in the first quarter of 2016 and applied the changes retrospectively for all periods presented. At December 31, 2015 , the Company had debt issuance costs of $61 million classified as a long-term asset as a component of “deferred charges and other” on the balance sheet that have been netted against “long-term debt” in these unaudited interim financial statements. As of September 30, 2016 , long-term debt is presented net of debt issuance costs of $58 million . Financing Costs, Net The following table presents the components of Apache’s financing costs, net: For the Quarter Ended September 30, For the Nine Months Ended September 30, 2016 2015 2016 2015 (In millions) Interest expense $ 116 $ 120 $ 348 $ 371 Amortization of deferred loan costs 2 6 5 10 Capitalized interest (13 ) (3 ) (36 ) (12 ) Loss on extinguishment of debt — 39 — 39 Interest income (3 ) (2 ) (6 ) (7 ) Financing costs, net $ 102 $ 160 $ 311 $ 401 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company estimates its annual effective income tax rate for continuing operations in recording its quarterly provision for income taxes in the various jurisdictions in which the Company operates. Non-cash impairments of the carrying value of the Company’s oil and gas properties, statutory tax rate changes, and other significant or unusual items are recognized as discrete items in the quarter in which they occur. During the third quarter of 2016, Apache’s effective income tax rate was primarily impacted by non-cash impairments of the carrying value of the Company’s oil and gas properties, non-cash impairments of the Company’s PRT decommissioning asset, the impact of the change in U.K. statutory income tax rate, and an increase in the amount of valuation allowances on U.S. and Canadian deferred tax assets. On September 15, 2016, U.K. Finance Act 2016 received Royal Assent. Under the enacted legislation, the corporate income tax rate on North Sea oil and gas profits was reduced from 50 percent to 40 percent effective January 1, 2016. As a result of the enacted legislation in the third quarter of 2016, the Company recorded a deferred tax benefit of $235 million related to the remeasurement of the Company’s December 31, 2015 U.K. deferred income tax liability. During the third quarter of 2015, Apache’s effective tax rate was primarily impacted by non-cash impairments of the carrying value of the Company’s oil and gas properties and an increase in the amount of valuation allowances on Canadian deferred tax assets, U.S. foreign tax credits, and U.S. net operating loss carryforwards. Apache’s 2016 year-to-date effective tax rate was primarily impacted by non-cash impairments of the carrying value of the Company’s oil and gas properties, non-cash impairments of the Company’s PRT decommissioning asset, the impact of the change in U.K. statutory income tax rate, and an increase in the amount of valuation allowances on U.S. and Canadian deferred tax assets. Apache's 2015 year-to-date effective tax rate was primarily impacted by non-cash impairments of the carrying value of the Company’s oil and gas properties and an increase in the amount of valuation allowances on Canadian deferred tax assets, U.S. foreign tax credits, and U.S. net operating loss carryforwards, offset by a $414 million deferred tax benefit associated with a reduction in the U.K. statutory income tax rate from 62 percent to 50 percent . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Legal Matters Apache is party to various legal actions arising in the ordinary course of business, including litigation and governmental and regulatory controls. As of September 30, 2016 , the Company has an accrued liability of approximately $38 million for all legal contingencies that are deemed to be probable of occurring and can be reasonably estimated. Apache’s estimates are based on information known about the matters and its experience in contesting, litigating, and settling similar matters. Although actual amounts could differ from management’s estimate, none of the actions are believed by management to involve future amounts that would be material to Apache’s financial position, results of operations, or liquidity after consideration of recorded accruals. For material matters that Apache believes an unfavorable outcome is reasonably possible, the Company has disclosed the nature of the matter and a range of potential exposure, unless an estimate cannot be made at this time. It is management’s opinion that the loss for any other litigation matters and claims that are reasonably possible to occur will not have a material adverse effect on the Company’s financial position, results of operations, or liquidity. For additional information on each of the Legal Matters described below, please see Note 9—Commitments and Contingencies to the consolidated financial statements contained in Apache’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 . Argentine Environmental Claims and Argentina Tariff No material change in the status of the YPF Sociedad Anónima and Pioneer Natural Resources Company indemnities matters has occurred since the filing of Apache’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 . Louisiana Restoration As more fully described in Apache’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, numerous surface owners have filed claims or sent demand letters to various oil and gas companies, including Apache, claiming that, under either express or implied lease terms or Louisiana law, the companies are liable for damage measured by the cost of restoration of leased premises to their original condition as well as damages for contamination and cleanup. On or about September 29, 2016, in a case captioned The Parish of St. Bernard v. Atlantic Richfield Company et al, Docket No. 16-1228, in the 34 th Judicial District Court for the Parish of St Bernard, State of Louisiana plaintiff asserts coastal zone claims against the Company and various other oil and gas producers. The claims by St. Bernard Parish are similar to the claims filed previously in lawsuits filed by the Parish of Plaquemines against the Company and other oil and gas producers in the 25 th Judicial District Court for the Parish of Plaquemines, State of Louisiana (captioned Parish of Plaquemines v. Rozel Operating Company et al., Docket No. 60-996; Parish of Plaquemines v. Apache Oil Corporation et al., Docket No. 61-000; and Parish of Plaquemines v. HHE Energy Company et al., Docket No. 60-983). In Cameron Parish in the Parish’s 38 th Judicial District Court, (captioned Parish of Cameron v. BEPCO, L.P., et al. , Docket No. 10-19572; Parish of Cameron v. BP America Production Company et al. , Docket No. 10-19576; Parish of Cameron v. Apache Corporation (of Delaware) et al. , Docket No. 10-19579; Parish of Cameron v. Atlantic Richfield Company et al. , Docket No. 10-19577; Parish of Cameron v. Alpine Exploration Companies, Inc., et al. , Docket No. 10-19580; and Parish of Cameron v. Auster Oil and Gas, Inc., et al , Docket No. 10-19582) and in Vermillion Parish (captioned Keith Stutes, District Attorney for the 15th Judicial District of the State of Louisiana v. Gulfport Energy Corporation et al. , Docket No. 102156, in the 15th Judicial District Court, Parish of Vermilion, State of Louisiana). The cases in Vermillion Parish and in Cameron Parish have all been removed to the United States District Court for the Western District of Louisiana, subject to any effort by the plaintiffs to remand the proceedings to state court. The Louisiana Attorney general and Louisiana Department of Natural Resources have intervened in the coastal zone cases. No other material change in the status of these matters has occurred since the filing of Apache’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 . Apollo Exploration Lawsuit In a fourth amended petition filed on March 21, 2016, in a case captioned Apollo Exploration, LLC, Cogent Exploration, Ltd. Co. & SellmoCo, LLC v. Apache Corporation , Cause No. CV50538 in the 385 th Judicial District Court, Midland County, Texas, plaintiffs have reduced their alleged damages to approximately $500 million (having previously claimed in excess of $1.1 billion ) relating to certain purchase and sale agreements, mineral leases, and areas of mutual interest agreements concerning properties located in Hartley, Moore, Potter, and Oldham Counties, Texas. Apache believes that plaintiffs’ claims lack merit, and further that plaintiffs’ alleged damages, even as amended, are grossly inflated. Apache will vigorously oppose the claims. No other material change in the status of these matters has occurred since the filing of Apache’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 . Escheat Audits There has been no material change with respect to the review of the books and records of the Company and its subsidiaries and related entities by the State of Delaware, Department of Finance (Unclaimed Property), to determine compliance with the Delaware Escheat Laws, since the filing of Apache’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 . Burrup-Related Gas Supply Lawsuits In the cases captioned Radhika Oswal v. Australia and New Zealand Banking Group Limited (ANZ) et al. , No. SCI 2011 4653 and Pankaj Oswal v. Australia and New Zealand Banking Group Limited (ANZ) et al. , No. SCI 2012 01995, in the Supreme Court of Victoria, trial commenced on May 30, 2016. Apache Corporation, Apache Energy Limited (now known as Quadrant Energy Australia Limited), and Apache Northwest Pty Ltd (now known as Quadrant Northwest Pty Ltd) reached a settlement on confidential terms with each of the plaintiffs and related entities. All other remaining defendants then reached a settlement on confidential terms with each of the plaintiffs and related entities. Environmental Matters As of September 30, 2016 , the Company had an undiscounted reserve for environmental remediation of approximately $55 million . The Company is not aware of any environmental claims existing as of September 30, 2016 , that have not been provided for or would otherwise have a material impact on its financial position, results of operations, or liquidity. There can be no assurance, however, that current regulatory requirements will not change or past non-compliance with environmental laws will not be discovered on the Company’s properties. Apache Canada Ltd. (ACL) reported a produced water release from a water injection pipeline in a remote area of the Belloy Field that occurred on or about May 4, 2016 and a hydrogen sulfide and oil emulsion leak in the Zama area on or about September 17, 2016. The causes of these incidents remain under investigation. With respect to previous releases of produced water that occurred in the Zama area between October 3 and October 25, 2013 and in the Belloy Field on or about January 20, 2014, the Company has resolved all of the charges associated with these releases with the Crown and paid a fine of $350,000 . The Company does not expect the economic impact of any of these incidents to have a material effect on the Company’s financial position, results of operations, or liquidity. No other material change in the status of these matters has occurred since the filing of Apache’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 . Australian Operations Divestiture Dispute By a Sale and Purchase Agreement dated April 9, 2015 (“SPA”), the Company and its subsidiaries divested their remaining Australian operations to Viraciti Energy Pty Ltd, which has since been renamed Quadrant Energy Pty Ltd (“Quadrant”). Closing occurred on June 5, 2015. By letter dated June 6, 2016, Quadrant provided the Company with a one -year placeholder notice of claim under the SPA concerning tax and other issues totaling approximately $200 million in the aggregate. The Company is in the process of reviewing the issues raised by Quadrant and believes at this time that these matters will not have a material adverse effect on the Company’s financial position, results of operation, or liquidity. LNG Divestiture Dispute A number of disputes had arisen between the Company and Woodside Energy Ltd. (and all relevant Australian and Canadian subsidiaries) arising from Woodside’s purchase of the Wheatstone and Kitimat LNG projects and accompanying upstream oil and gas reserves from the Company and its subsidiaries. These disputes resulted in various lawsuits being filed in both the Supreme Court of Western Australia (Case Nos. 2315 of 2015, 2798 of 2015, 1504 of 2016, 1520 of 2016, and 1521 of 2016) and the Court of Queen’s Bench of Alberta, Calgary (Case No. 1601-12909) concerning or arising out of certain provisions of the Wheatstone and Kitimat sale and purchase agreements. In addition, certain other disputes under the parties’ sale and purchase agreements had been referred to the ICC International Centre for ADR for a third party expert determination. With respect to each of the matters pending in Western Australia, Alberta, and before the ICC, the Company and Woodside have reached a settlement on confidential terms such that the matters will be discontinued and/or dismissed and mutual releases have been provided by the Company and Woodside related to the foregoing matters in dispute. The amount of the settlement has been included in the Company’s accrued liabilities for legal contingencies as of September 30, 2016. |
Capital Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Capital Stock | CAPITAL STOCK Net Loss per Common Share A reconciliation of the components of basic and diluted net loss per common share for the quarters and nine months ended September 30, 2016 and 2015 is presented in the table below. For the Quarter Ended September 30, 2016 2015 Loss Shares Per Share Loss Shares Per Share (In millions, except per share amounts) Basic: Loss from continuing operations $ (574 ) 380 $ (1.51 ) $ (4,126 ) 378 $ (10.91 ) Loss from discontinued operations (33 ) 380 (0.09 ) (17 ) 378 (0.04 ) Loss attributable to common stock $ (607 ) 380 $ (1.60 ) $ (4,143 ) 378 $ (10.95 ) Effect of Dilutive Securities: Stock options and other $ — — $ — $ — — $ — Diluted: Loss from continuing operations $ (574 ) 380 $ (1.51 ) $ (4,126 ) 378 $ (10.91 ) Loss from discontinued operations (33 ) 380 (0.09 ) (17 ) 378 (0.04 ) Loss attributable to common stock $ (607 ) 380 $ (1.60 ) $ (4,143 ) 378 $ (10.95 ) For the Nine Months Ended September 30, 2016 2015 Loss Shares Per Share Loss Shares Per Share (In millions, except per share amounts) Basic: Loss from continuing operations $ (1,190 ) 379 $ (3.14 ) $ (6,202 ) 378 $ (16.42 ) Loss from discontinued operations (33 ) 379 (0.08 ) (135 ) 378 (0.36 ) Loss attributable to common stock $ (1,223 ) 379 $ (3.22 ) $ (6,337 ) 378 $ (16.78 ) Effect of Dilutive Securities: Stock options and other — — — — Diluted: Loss from continuing operations $ (1,190 ) 379 $ (3.14 ) $ (6,202 ) 378 $ (16.42 ) Loss from discontinued operations (33 ) 379 (0.08 ) (135 ) 378 (0.36 ) Loss attributable to common stock $ (1,223 ) 379 $ (3.22 ) $ (6,337 ) 378 $ (16.78 ) The diluted earnings per share calculation excludes options and restricted stock units that were anti-dilutive totaling 4.7 million and 10.4 million for the quarters ended September 30, 2016 and 2015 , respectively, and 6.5 million and 8.9 million for the nine months ended September 30, 2016 and 2015 , respectively. Common Stock Dividends For each of the quarters ended September 30, 2016 , and 2015 , Apache paid $95 million in dividends on its common stock. For the nine months ended September 30, 2016 and 2015 , the Company paid $284 million and $283 million , respectively. Stock Repurchase Program Apache’s Board of Directors has authorized the purchase of up to 40 million shares of the Company’s common stock. Shares may be purchased either in the open market or through privately negotiated transactions. The Company initiated the buyback program on June 10, 2013, and through December 31, 2015 , had repurchased a total of 32.2 million shares at an average price of $88.96 per share. The Company is not obligated to acquire any specific number of shares and has not purchased any shares during 2016. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION Apache is engaged in a single line of business. Both domestically and internationally, the Company explores for, develops, and produces natural gas, crude oil, and natural gas liquids. At September 30, 2016 , the Company had production in four reporting segments: the United States, Canada, Egypt, and offshore the United Kingdom in the North Sea (North Sea). Apache also pursues exploration interests in other areas that may, over time, result in reportable discoveries and development opportunities. Financial information for each country is presented below: United States Canada Egypt (1) North Sea Other International Total (4) (In millions) For the Quarter Ended September 30, 2016 Oil and Gas Production Revenues $ 524 $ 87 $ 581 $ 247 $ — $ 1,439 Operating Income (Loss) (2) $ (17 ) $ (466 ) $ 263 $ (455 ) $ (13 ) $ (688 ) Other Income (Expense): Gain on divestitures, net 5 Other (6 ) General and administrative (102 ) Transaction, reorganization, and separation (12 ) Financing costs, net (102 ) Loss From Continuing Operations Before Income Taxes $ (905 ) For the Nine Months Ended September 30, 2016 Oil and Gas Production Revenues $ 1,453 $ 243 $ 1,515 $ 701 $ — $ 3,912 Operating Income (Loss) (2) $ (283 ) $ (586 ) $ 525 $ (557 ) $ (13 ) $ (914 ) Other Income (Expense): Gain on divestitures, net 21 Other (30 ) General and administrative (298 ) Transaction, reorganization, and separation (36 ) Financing costs, net (311 ) Loss From Continuing Operations Before Income Taxes $ (1,568 ) Total Assets $ 12,299 $ 1,630 $ 5,320 $ 3,851 $ 49 $ 23,149 United States Canada Egypt (1) North Sea Other International Total (4) (In millions) For the Quarter Ended September 30, 2015 Oil and Gas Production Revenues $ 639 $ 116 $ 534 $ 317 $ — $ 1,606 Operating Income (Loss) (3) $ (3,582 ) $ (292 ) $ 67 $ (86 ) $ (148 ) $ (4,041 ) Other Income (Expense): Loss on divestitures, net (5 ) Other (75 ) General and administrative (89 ) Transaction, reorganization, and separation — Financing costs, net (160 ) Loss From Continuing Operations Before Income Taxes $ (4,370 ) For the Nine Months Ended September 30, 2015 Oil and Gas Production Revenues $ 2,066 $ 387 $ 1,790 $ 1,013 $ — $ 5,256 Operating Income (Loss) (3) $ (5,967 ) $ (464 ) $ 569 $ (160 ) $ (149 ) $ (6,171 ) Other Income (Expense): Gain on divestitures, net 204 Other (53 ) General and administrative (284 ) Transaction, reorganization, and separation (120 ) Financing costs, net (401 ) Loss From Continuing Operations Before Income Taxes $ (6,825 ) Total Assets $ 15,278 $ 3,627 $ 7,535 $ 4,359 $ 440 $ 31,239 (1) Includes a noncontrolling interest in Egypt. (2) Operating Income (Loss) consists of oil and gas production revenues less lease operating expenses, gathering and transportation costs, taxes other than income, exploration costs, depreciation, depletion, and amortization, asset retirement obligation accretion, and impairments. The operating income (loss) of U.S., Canada, and North Sea includes asset impairments totaling $47 million , $423 million , and $481 million , respectively, for the third quarter of 2016. The operating income (loss) of U.S., Canada, and North Sea includes asset impairments totaling $212 million , $433 million , and $586 million , respectively, for the first nine months of 2016. (3) The operating income (loss) of U.S., Canada, Egypt, North Sea, and Other International includes asset impairments totaling $3.5 billion , $237 million , $78 million , $105 million , and $148 million , respectively, for the third quarter of 2015. The operating income (loss) of U.S., Canada, Egypt, North Sea, and Other International include asset impairments totaling $5.9 billion , $291 million , $91 million , $372 million , and $148 million , respectively, for the first nine months of 2015. (4) Amounts for 2015 have been restated to exclude Australia discontinued operations. |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 9 Months Ended |
Sep. 30, 2016 | |
Guarantees [Abstract] | |
Supplemental Guarantor Information | SUPPLEMENTAL GUARANTOR INFORMATION In December 1999, Apache Finance Canada issued approximately $300 million of publicly-traded notes due in 2029 . The notes are fully and unconditionally guaranteed by Apache. The following condensed consolidating financial statements are provided as an alternative to filing separate financial statements. Apache Finance Canada is 100 percent owned by Apache Corporation. As such, these condensed consolidating financial statements should be read in conjunction with Apache’s consolidated financial statements and the notes thereto, of which this note is an integral part. APACHE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS For the Quarter Ended September 30, 2016 Apache Corporation Apache Finance Canada All Other Subsidiaries of Apache Corporation Reclassifications & Eliminations Consolidated (In millions) REVENUES AND OTHER: Oil and gas production revenues $ 274 $ — $ 1,165 $ — $ 1,439 Equity in net income (loss) of affiliates (493 ) (205 ) — 698 — Other 5 7 (18 ) — (6 ) Gain (loss) on divestiture 3 — 2 — 5 (211 ) (198 ) 1,149 698 1,438 OPERATING EXPENSES: Lease operating expenses 74 — 308 — 382 Gathering and transportation 6 — 45 — 51 Taxes other than income 23 — (14 ) — 9 Exploration 58 — 103 — 161 General and administrative 87 — 15 — 102 Depreciation, depletion, and amortization 154 — 494 — 648 Asset retirement obligation accretion 5 — 35 — 40 Impairments — — 836 — 836 Transaction, reorganization, and separation 12 — — — 12 Financing costs, net 63 6 33 — 102 482 6 1,855 — 2,343 NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (693 ) (204 ) (706 ) 698 (905 ) Provision (benefit) for income taxes (119 ) 1 (261 ) — (379 ) NET INCOME (LOSS) FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST (574 ) (205 ) (445 ) 698 (526 ) Net loss from discontinued operations, net of tax (33 ) — — — (33 ) NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST (607 ) (205 ) (445 ) 698 (559 ) Net income attributable to noncontrolling interest — — 48 — 48 NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK $ (607 ) $ (205 ) $ (493 ) $ 698 $ (607 ) APACHE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS For the Quarter Ended September 30, 2015 Apache Corporation Apache Finance Canada All Other Subsidiaries of Apache Corporation Reclassifications & Eliminations Consolidated (In millions) REVENUES AND OTHER: Oil and gas production revenues $ 344 $ — $ 1,262 $ — $ 1,606 Equity in net income (loss) of affiliates (2,247 ) (92 ) — 2,339 — Other (62 ) 14 (27 ) — (75 ) Gain (loss) on divestiture (7 ) — 2 — (5 ) (1,972 ) (78 ) 1,237 2,339 1,526 OPERATING EXPENSES: Lease operating expenses 97 — 353 — 450 Gathering and transportation 9 — 49 — 58 Taxes other than income 30 — 74 — 104 Exploration 139 — 84 — 223 General and administrative 76 — 13 — 89 Depreciation, depletion, and amortization 257 — 615 — 872 Asset retirement obligation accretion 4 — 33 — 37 Impairments 2,177 — 1,726 — 3,903 Financing costs, net 160 10 (10 ) — 160 2,949 10 2,937 — 5,896 NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (4,921 ) (88 ) (1,700 ) 2,339 (4,370 ) Provision (benefit) for income taxes (785 ) 4 530 — (251 ) NET INCOME (LOSS) FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST (4,136 ) (92 ) (2,230 ) 2,339 (4,119 ) Net income (loss) from discontinued operations, net of tax (7 ) — (10 ) — (17 ) NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST (4,143 ) (92 ) (2,240 ) 2,339 (4,136 ) Net income attributable to noncontrolling interest — — 7 — 7 NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK $ (4,143 ) $ (92 ) $ (2,247 ) $ 2,339 $ (4,143 ) Apache Corporation Apache Finance Canada All Other Subsidiaries of Apache Corporation Reclassifications & Eliminations Consolidated (In millions) REVENUES AND OTHER: Oil and gas production revenues $ 761 $ — $ 3,151 $ — $ 3,912 Equity in net income (loss) of affiliates (677 ) (225 ) — 902 — Other 11 28 (69 ) — (30 ) Gain (loss) on divestiture 1 — 20 — 21 96 (197 ) 3,102 902 3,903 OPERATING EXPENSES: Lease operating expenses 218 — 901 — 1,119 Gathering and transportation 25 — 130 — 155 Taxes other than income 66 — 19 — 85 Exploration 184 — 163 — 347 General and administrative 250 — 48 — 298 Depreciation, depletion, and amortization 469 — 1,526 — 1,995 Asset retirement obligation accretion 14 — 102 — 116 Impairments 61 — 948 — 1,009 Transaction, reorganization, and separation 36 — — — 36 Financing costs, net 188 23 100 — 311 1,511 23 3,937 — 5,471 NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (1,415 ) (220 ) (835 ) 902 (1,568 ) Provision (benefit) for income taxes (225 ) 5 (251 ) — (471 ) NET INCOME (LOSS) FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST (1,190 ) (225 ) (584 ) 902 (1,097 ) Net loss from discontinued operations, net of tax (33 ) — — — (33 ) NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST (1,223 ) (225 ) (584 ) 902 (1,130 ) Net income attributable to noncontrolling interest — — 93 — 93 NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK $ (1,223 ) $ (225 ) $ (677 ) $ 902 $ (1,223 ) Apache Corporation Apache Finance Canada All Other Subsidiaries of Apache Corporation Reclassifications & Eliminations Consolidated (In millions) REVENUES AND OTHER: Oil and gas production revenues $ 1,143 $ — $ 4,113 $ — $ 5,256 Equity in net income (loss) of affiliates (3,664 ) (154 ) — 3,818 — Other (107 ) 40 (5 ) 19 (53 ) Gain (loss) on divestiture (36 ) — 240 — 204 (2,664 ) (114 ) 4,348 3,837 5,407 OPERATING EXPENSES: Lease operating expenses 329 — 1,069 — 1,398 Gathering and transportation 25 — 138 — 163 Taxes other than income 97 — 135 — 232 Exploration 399 — 307 — 706 General and administrative 214 — 51 19 284 Depreciation, depletion, and amortization 751 — 1,741 — 2,492 Asset retirement obligation accretion 11 — 98 — 109 Impairments 3,543 — 2,784 — 6,327 Transaction, reorganization, and separation 120 — — — 120 Financing costs, net 375 31 (5 ) — 401 5,864 31 6,318 19 12,232 NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (8,528 ) (145 ) (1,970 ) 3,818 (6,825 ) Provision (benefit) for income taxes (2,370 ) 9 1,640 — (721 ) NET INCOME (LOSS) FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST (6,158 ) (154 ) (3,610 ) 3,818 (6,104 ) Net income (loss) from discontinued operations, net of tax (179 ) — 44 — (135 ) NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST (6,337 ) (154 ) (3,566 ) 3,818 (6,239 ) Net income attributable to noncontrolling interest — — 98 — 98 NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK $ (6,337 ) $ (154 ) $ (3,664 ) $ 3,818 $ (6,337 ) APACHE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Nine Months Ended September 30, 2016 Apache Corporation Apache Finance Canada All Other Subsidiaries of Apache Corporation Reclassifications & Eliminations Consolidated (In millions) CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ 269 $ (1 ) $ 1,366 $ — $ 1,634 CASH FLOWS FROM INVESTING ACTIVITIES: Additions to oil and gas property (929 ) — (352 ) — (1,281 ) Leasehold and property acquisitions (98 ) — (71 ) — (169 ) Additions to gas gathering, transmission, and processing facilities (32 ) — (1 ) — (33 ) Proceeds from sale of other oil and gas properties 54 — 20 — 74 Investment in subsidiaries, net 824 — — (824 ) — Other (7 ) — 54 — 47 NET CASH USED IN INVESTING ACTIVITIES (188 ) — (350 ) (824 ) (1,362 ) CASH FLOWS FROM FINANCING ACTIVITIES: Intercompany borrowings — (23 ) (801 ) 824 — Payment of fixed-rate debt — — (1 ) — (1 ) Distributions to noncontrolling interest — — (215 ) — (215 ) Common stock activity, net — 24 (24 ) — — Dividends paid (284 ) — — — (284 ) Other 2 — (11 ) — (9 ) NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (282 ) 1 (1,052 ) 824 (509 ) NET DECREASE IN CASH AND CASH EQUIVALENTS (201 ) — (36 ) — (237 ) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 378 — 1,089 — 1,467 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 177 $ — $ 1,053 $ — $ 1,230 APACHE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Nine Months Ended September 30, 2015 Apache Corporation Apache Finance Canada All Other Subsidiaries of Apache Corporation Reclassifications & Eliminations Consolidated (In millions) CASH PROVIDED BY (USED IN) CONTINUING OPERATING ACTIVITIES $ (135 ) $ (25 ) $ 2,540 $ — $ 2,380 CASH PROVIDED BY DISCONTINUED OPERATIONS — — 113 — 113 CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (135 ) (25 ) 2,653 — 2,493 CASH FLOWS FROM INVESTING ACTIVITIES: Additions to oil and gas property (1,320 ) — (2,242 ) — (3,562 ) Leasehold and property acquisitions (243 ) — (11 ) — (254 ) Additions to gas gathering, transmission, and processing facilities (25 ) — (88 ) — (113 ) Proceeds from sale Kitimat LNG — — 854 — 854 Proceeds from sale of other oil and gas properties 8 — 140 — 148 Investment in subsidiaries, net 274 — — (274 ) — Other (16 ) — (83 ) — (99 ) NET CASH USED IN CONTINUING INVESTING ACTIVITIES (1,322 ) — (1,430 ) (274 ) (3,026 ) NET CASH PROVIDED BY DISCONTINUED OPERATIONS — — 4,372 — 4,372 NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (1,322 ) — 2,942 (274 ) 1,346 CASH FLOWS FROM FINANCING ACTIVITIES: Commercial paper and bank credit facilities, net (1,570 ) — — — (1,570 ) Payment of fixed-rate debt (939 ) — — — (939 ) Intercompany borrowings 4,431 (10 ) (4,695 ) 274 — Distributions to noncontrolling interest — — (97 ) — (97 ) Dividends paid (283 ) — — — (283 ) Other 2 35 (11 ) — 26 NET CASH PROVIDED BY (USED IN) CONTINUING FINANCING ACTIVITIES 1,641 25 (4,803 ) 274 (2,863 ) NET CASH USED IN DISCONTINUED OPERATIONS — — — — — NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 1,641 25 (4,803 ) 274 (2,863 ) NET INCREASE IN CASH AND CASH EQUIVALENTS 184 — 792 — 976 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 267 — 412 — 679 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 451 $ — $ 1,204 $ — $ 1,655 APACHE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET September 30, 2016 Apache Corporation Apache Finance Canada All Other Subsidiaries of Apache Corporation Reclassifications & Eliminations Consolidated (In millions) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 177 $ — $ 1,053 $ — $ 1,230 Receivables, net of allowance 311 — 753 — 1,064 Inventories 32 — 481 — 513 Drilling advances 5 — 204 — 209 Deferred tax asset (28 ) — 28 — — Prepaid assets and other 191 — 65 — 256 Intercompany receivable 5,418 — — (5,418 ) — 6,106 — 2,584 (5,418 ) 3,272 PROPERTY AND EQUIPMENT, NET 7,069 — 12,393 — 19,462 OTHER ASSETS: Intercompany receivable — — 12,034 (12,034 ) — Equity in affiliates 15,415 (1,289 ) 703 (14,829 ) — Deferred charges and other 95 1,000 320 (1,000 ) 415 $ 28,685 $ (289 ) $ 28,034 $ (33,281 ) $ 23,149 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 338 $ (13 ) $ 232 $ — $ 557 Other current liabilities 468 8 595 — 1,071 Intercompany payable — — 5,418 (5,418 ) — 806 (5 ) 6,245 (5,418 ) 1,628 LONG-TERM DEBT 8,424 297 — — 8,721 DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES: Intercompany payable 12,034 — — (12,034 ) — Income taxes (230 ) 5 2,008 — 1,783 Asset retirement obligation 280 — 2,462 — 2,742 Other 902 — 424 (1,000 ) 326 12,986 5 4,894 (13,034 ) 4,851 COMMITMENTS AND CONTINGENCIES APACHE SHAREHOLDERS’ EQUITY 6,469 (586 ) 15,415 (14,829 ) 6,469 Noncontrolling interest — — 1,480 — 1,480 TOTAL EQUITY 6,469 (586 ) 16,895 (14,829 ) 7,949 $ 28,685 $ (289 ) $ 28,034 $ (33,281 ) $ 23,149 APACHE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2015 Apache Corporation Apache Finance Canada All Other Subsidiaries of Apache Corporation Reclassifications & Eliminations Consolidated (In millions) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 378 $ — $ 1,089 $ — $ 1,467 Receivables, net of allowance 314 — 939 — 1,253 Inventories 34 — 536 — 570 Drilling advances 16 — 156 — 172 Prepaid assets and other 102 — 188 — 290 Intercompany receivable 5,212 — — (5,212 ) — 6,056 — 2,908 (5,212 ) 3,752 PROPERTY AND EQUIPMENT, NET 6,546 — 14,292 — 20,838 OTHER ASSETS: Intercompany receivable — — 10,744 (10,744 ) — Equity in affiliates 16,092 (807 ) 446 (15,731 ) — Deferred charges and other 96 1,001 813 (1,000 ) 910 $ 28,790 $ 194 $ 29,203 $ (32,687 ) $ 25,500 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 409 $ — $ 209 $ — $ 618 Other current liabilities 539 3 681 — 1,223 Intercompany payable — — 5,212 (5,212 ) — 948 3 6,102 (5,212 ) 1,841 LONG-TERM DEBT 8,418 298 — — 8,716 DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES: Intercompany payable 10,744 — — (10,744 ) — Income taxes (412 ) 4 2,937 — 2,529 Asset retirement obligation 271 — 2,291 — 2,562 Other 933 250 179 (1,000 ) 362 11,536 254 5,407 (11,744 ) 5,453 COMMITMENTS AND CONTINGENCIES APACHE SHAREHOLDERS’ EQUITY 7,888 (361 ) 16,092 (15,731 ) 7,888 Noncontrolling interest — — 1,602 — 1,602 TOTAL EQUITY 7,888 (361 ) 17,694 (15,731 ) 9,490 $ 28,790 $ 194 $ 29,203 $ (32,687 ) $ 25,500 |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates with regard to these financial statements include the fair value determination of acquired assets and liabilities, the estimate of proved oil and gas reserves and related present value estimates of future net cash flows therefrom, the assessment of asset retirement obligations, the estimates of fair value for long-lived assets and goodwill, and the estimate of income taxes. Actual results could differ from those estimates. |
Fair Value Measurements | Fair Value Measurements Certain assets and liabilities are reported at fair value on a recurring basis in Apache’s consolidated balance sheet. ASC 820-10-35 provides a hierarchy that prioritizes and defines the types of inputs used to measure fair value. The fair value hierarchy gives the highest priority to Level 1 inputs, which consist of unadjusted quoted prices for identical instruments in active markets. Level 2 inputs consist of quoted prices for similar instruments. Level 3 valuations are derived from inputs that are significant and unobservable; hence, these valuations have the lowest priority. The valuation techniques that may be used to measure fair value include a market approach, an income approach, and a cost approach. A market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. An income approach uses valuation techniques to convert future amounts to a single present amount based on current market expectations, including present value techniques, option-pricing models, and the excess earnings method. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Apache also uses fair value measurements on a nonrecurring basis when certain qualitative assessments of its assets indicate a potential impairment. For the third quarter and nine-month period ended September 30, 2016, the Company recorded asset impairments totaling $951 million and $1.2 billion , respectively, in connection with fair value assessments. For the third quarter and nine-month period ended September 30, 2016, impairments totaling $470 million and $645 million , respectively, were recorded for oil and gas properties in the U.S. and Canada, as discussed in further detail below in “Oil and Gas Property.” During the second quarter of 2016, the Company also recorded an impairment of $105 million for gas gathering, transmission, and processing (GTP) assets. The fair values of the impaired assets were determined using an income approach, which considered internal estimates of future throughput volumes, processing rates, and costs. These assumptions were applied to develop future cash flow projections that were then discounted to estimated fair value, using a discount rate believed to be consistent with those applied by market participants. Apache has classified these non-recurring fair value measurements as Level 3 in the fair value hierarchy. The resulting fair value of $175 million was reflected in GTP assets. On September 15, 2016, U.K. Finance Act 2016 received Royal Assent, providing tax relief to exploration and production companies operating in the U.K. North Sea. Under the enacted legislation, the U.K. Petroleum Revenue Tax (PRT) rate was reduced to zero from the previously enacted 35 percent rate in effect from January 1, 2016. PRT expense ceased prospectively from that date. As a further result of this change, the Company reduced the recoverable PRT benefits that would have been realized from future abandonment activities by $481 million ( $289 million net of tax). This recoverable PRT benefit had an aggregate remaining value of $13 million as of September 30, 2016, which is recorded in “Deferred charges and other” on the consolidated balance sheet. The recoverable value of the PRT benefit was estimated using the income approach. The expected future cash flows used in the determination were based on anticipated spending and timing of planned future abandonment activities for applicable fields, considering all available information at the date of review. Apache has classified this fair value measurement as Level 3 in the fair value hierarchy. For the nine-month period ended September 30, 2015, the Company recorded asset impairments totaling $6.8 billion in connection with fair value assessments in the current low commodity price environment. Impairments totaling $6.3 billion were recorded for oil and gas properties, which were written down to their fair values. Also, for the nine-month period ended September 30, 2015, the Company recorded $210 million for the impairment of certain GTP assets, which were written down to their fair values, $163 million for the impairment of goodwill, $148 million for the impairment of an equity method investment, and $9 million for the impairment of inventory. |
Oil and Gas Property | Oil and Gas Property The Company follows the successful efforts method of accounting for its oil and gas property. Under this method of accounting, exploration costs such as exploratory geological and geophysical costs, delay rentals, and exploration overhead are expensed as incurred. All costs related to production, general corporate overhead, and similar activities are expensed as incurred. If an exploratory well provides evidence to justify potential development of reserves, drilling costs associated with the well are initially capitalized, or suspended, pending a determination as to whether a commercially sufficient quantity of proved reserves can be attributed to the area as a result of drilling. This determination may take longer than one year in certain areas depending on, among other things, the amount of hydrocarbons discovered, the outcome of planned geological and engineering studies, the need for additional appraisal drilling activities to determine whether the discovery is sufficient to support an economic development plan, and government sanctioning of development activities in certain international locations. At the end of each quarter, management reviews the status of all suspended exploratory well costs in light of ongoing exploration activities; in particular, whether the Company is making sufficient progress in its ongoing exploration and appraisal efforts or, in the case of discoveries requiring government sanctioning, whether development negotiations are underway and proceeding as planned. If management determines that future appraisal drilling or development activities are unlikely to occur, associated exploratory well costs are expensed as dry hole costs. Acquisition costs of unproved properties are assessed for impairment at least annually and are transferred to proved oil and gas properties to the extent the costs are associated with successful exploration activities. Significant undeveloped leases are assessed individually for impairment based on the Company’s current exploration plans. Unproved oil and gas properties with individually insignificant lease acquisition costs are amortized on a group basis over the average lease term at rates that provide for full amortization of unsuccessful leases upon lease expiration or abandonment. Costs of expired or abandoned leases are charged to exploration expense, while costs of productive leases are transferred to proved oil and gas properties. Costs of maintaining and retaining unproved properties, as well as amortization of individually insignificant leases and impairment of unsuccessful leases, are included in exploration costs in the statement of consolidated operations. Costs to develop proved reserves, including the costs of all development wells and related equipment used in the production of crude oil and natural gas, are capitalized. Depreciation of the cost of proved oil and gas properties is calculated using the unit-of-production (UOP) method. The UOP calculation amortizes the remaining historical capitalized costs of oil and gas properties based on the volumes produced. The reserve base used to calculate depreciation for property acquisition costs is the sum of proved developed reserves and proved undeveloped reserves. With respect to lease and well equipment costs, which include development costs and successful exploration drilling costs, the reserve base includes only proved developed reserves. Estimated future dismantlement, restoration and abandonment costs, net of salvage values, are included in the depreciable cost. Oil and gas properties are grouped for depreciation in accordance with ASC 932 “Extractive Activities - Oil and Gas.” The basis for grouping is a reasonable aggregation of properties with a common geological structural feature or stratigraphic condition, such as a reservoir or field. When circumstances indicate that proved oil and gas properties may be impaired, the Company compares unamortized capitalized costs to the expected undiscounted pre-tax future cash flows for the associated assets grouped at the lowest level for which identifiable cash flows are independent of cash flows of other assets. If the expected undiscounted pre-tax future cash flows, based on Apache’s estimate of future crude oil and natural gas prices, operating costs, anticipated production from proved reserves and other relevant data, are lower than the unamortized capitalized cost, the capitalized cost is reduced to fair value. Fair value is generally estimated using the income approach described in the ASC 820 “Fair Value Measurement.” If applicable, the Company utilizes accepted bids as the basis for determining fair value. The expected future cash flows used for impairment reviews and related fair value calculations are typically based on judgmental assessments of future production volumes, commodity prices, operating costs, and capital investment plans, considering all available information at the date of review. These assumptions are applied to develop future cash flow projections that are then discounted to estimated fair value, using a discount rate believed to be consistent with those applied by market participants. Apache has classified these fair value measurements as Level 3 in the fair value hierarchy. The following table represents non-cash impairments of the carrying value of the Company’s proved and unproved property and equipment for the third quarters and first nine months of 2016 and 2015 : Quarter Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In millions) Oil and Gas Property: Proved $ 355 $ 3,536 $ 423 $ 5,797 Unproved 114 199 222 515 Proved properties impaired during the second and third quarters of 2016 had aggregate fair values of $143 million and $163 million , respectively. Proved properties impaired during the first, second, and third quarters of 2015 had aggregate fair values of $1.2 billion , $516 million , and $1.9 billion , respectively. On the statement of consolidated operations, unproved impairments are recorded in exploration expense, and proved impairments are recorded in impairments. Gains and losses on significant divestitures are recognized in the statement of consolidated operations. |
New Pronouncements Issued But Not Yet Adopted | New Pronouncements Issued But Not Yet Adopted In August 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-15, Statement of Cash Flows (Topic 230). ASU 2016-15 seeks to reduce the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. The Company is currently evaluating the provisions of ASU 2016-15 and assessing the impact, if any, it may have on its statement of consolidated cash flows. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses.” The standard changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, held-to-maturity debt securities and loans, and requires entities to use a new forward-looking expected loss model that will result in the earlier recognition of allowance for losses. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for a fiscal year beginning after December 15, 2018, including interim periods within that fiscal year. The Company does not expect to adopt the guidance early. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is evaluating the new guidance and does not believe this standard will have a material impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, which seeks to simplify accounting for share-based payment transactions including income tax consequences, classification of awards as either equity or liabilities, and the classification on the statement of cash flows. The new standard requires the Company to recognize the income tax effects of awards in the income statement when the awards vest or are settled. The guidance is effective for fiscal years beginning after December 15, 2016. Early adoption is permitted and if an entity early adopts the guidance in an interim period, any adjustments must be reflected as of the beginning of the fiscal year that includes that interim period. The Company is evaluating the new guidance and does not believe this standard will have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, a new lease standard requiring lessees to recognize lease assets and lease liabilities for most leases classified as operating leases under previous U.S. GAAP. The guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company will be required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements. In May 2014, the FASB and the International Accounting Standards Board (IASB) issued a joint revenue recognition standard, ASU 2014-09. The new standard removes inconsistencies in existing standards, changes the way companies recognize revenue from contracts with customers, and increases disclosure requirements. The guidance requires companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. In March 2016, the FASB issued ASU 2016-08, which provides further clarification on the principal versus agent evaluation. The guidance is effective for annual and interim periods beginning after December 15, 2017. The standard is required to be adopted using either the full retrospective approach, with all prior periods presented adjusted, or the modified retrospective approach, with a cumulative adjustment to retained earnings on the opening balance sheet. The Company is currently evaluating the level of effort needed to implement the standard, the impact of adopting this standard on its consolidated financial statements, and whether to use the full retrospective approach or the modified retrospective approach. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Non-cash Impairments of Proved and Unproved Property and Equipment | The following table represents non-cash impairments of the carrying value of the Company’s proved and unproved property and equipment for the third quarters and first nine months of 2016 and 2015 : Quarter Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 (In millions) Oil and Gas Property: Proved $ 355 $ 3,536 $ 423 $ 5,797 Unproved 114 199 222 515 |
Change in Accounting Principle
Change in Accounting Principle (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Changes in Accounting Principles | The following tables present the effects of the change to the successful efforts method in the statement of consolidated operations: Changes to the Statement of Consolidated Operations For the Quarter Ended September 30, 2016 Under Full Cost Changes As Reported Under Successful Efforts (In millions, except per share data) Oil revenues $ 1,058 $ 59 $ 1,117 Natural gas revenues 273 (10 ) 263 NGL revenues 59 — 59 Oil and gas production revenues 1,390 49 1,439 Other (5 ) (1 ) (6 ) Gain on divestiture 2 3 5 Exploration — 161 161 Depreciation, depletion, and amortization: Oil and Gas Property and Equipment Recurring 473 137 610 Additional 328 (328 ) — Impairments 481 355 836 Financing costs, net 92 10 102 Current income tax provision 101 49 150 Deferred income tax provision (benefit) (407 ) (122 ) (529 ) NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST (315 ) (211 ) (526 ) Net income (loss) attributable to noncontrolling interest 37 11 48 NET LOSS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS (352 ) (222 ) (574 ) Net income (loss) from discontinued operations (33 ) — (33 ) NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS (385 ) (222 ) (607 ) Per common share Basic net loss from continuing operations per share $ (0.96 ) $ (0.55 ) $ (1.51 ) Basic net loss from discontinued operations per share (0.06 ) — (0.09 ) Basic net loss per share $ (1.02 ) $ (0.55 ) $ (1.60 ) Diluted net loss from continuing operations per share $ (0.96 ) $ (0.55 ) $ (1.51 ) Diluted net loss from discontinued operations per share (0.06 ) — (0.09 ) Diluted net loss per share $ (1.02 ) $ (0.55 ) $ (1.60 ) Changes to the Statement of Consolidated Operations For the Quarter Ended September 30, 2015 Under Full Cost Changes* As Reported Under Successful Efforts (In millions, except per share data) Oil revenues $ 1,213 $ 25 $ 1,238 Natural gas revenues 309 9 318 NGL revenues 50 — 50 Oil and gas production revenues 1,572 34 1,606 Other (76 ) 1 (75 ) Loss on divestiture — (5 ) (5 ) Exploration — 223 223 General and administrative 86 3 89 Depreciation, depletion, and amortization: Oil and Gas Property and Equipment Recurring 829 (36 ) 793 Additional 5,721 (5,721 ) — Impairments 367 3,536 3,903 Financing costs, net 107 53 160 Current income tax benefit (84 ) (186 ) (270 ) Deferred income tax provision (benefit) (707 ) 726 19 NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST (5,551 ) 1,432 (4,119 ) Net income attributable to noncontrolling interest 9 (2 ) 7 NET LOSS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS (5,560 ) 1,434 (4,126 ) Net loss from discontinued operations (95 ) 78 (17 ) NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS (5,655 ) 1,512 (4,143 ) Per common share Basic net loss from continuing operations per share $ (14.70 ) $ 3.79 $ (10.91 ) Basic net loss from discontinued operations per share (0.25 ) 0.21 (0.04 ) Basic net loss per share $ (14.95 ) $ 4.00 $ (10.95 ) Diluted net loss from continuing operations per share $ (14.70 ) $ 3.79 $ (10.91 ) Diluted net loss from discontinued operations per share (0.25 ) 0.21 (0.04 ) Diluted net loss per share $ (14.95 ) $ 4.00 $ (10.95 ) Changes to the Statement of Consolidated Operations For the Nine Months Ended September 30, 2016 Under Full Cost Changes* As Reported Under Successful Efforts (In millions, except per share data) Oil revenues $ 2,915 $ 142 $ 3,057 Natural gas revenues 715 (20 ) 695 NGL revenues 160 — 160 Oil and gas production revenues 3,790 122 3,912 Other (33 ) 3 (30 ) Gain on divestiture 5 16 21 Exploration — 347 347 Depreciation, depletion, and amortization: Oil and Gas Property and Equipment Recurring 1,532 343 1,875 Additional 1,486 (1,486 ) — Impairments 587 422 1,009 Financing costs, net 272 39 311 Current income tax provision 162 122 284 Deferred income tax provision (benefit) (708 ) (47 ) (755 ) NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST (1,498 ) 401 (1,097 ) Net income (loss) attributable to noncontrolling interest (56 ) 149 93 NET LOSS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS (1,442 ) 252 (1,190 ) Net income (loss) from discontinued operations (33 ) — (33 ) NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS (1,475 ) 252 (1,223 ) Per common share Basic net loss from continuing operations per share $ (3.83 ) $ 0.69 $ (3.14 ) Basic net loss from discontinued operations per share (0.06 ) — (0.08 ) Basic net loss per share $ (3.89 ) $ 0.69 $ (3.22 ) Diluted net loss from continuing operations per share $ (3.83 ) $ 0.69 $ (3.14 ) Diluted net loss from discontinued operations per share (0.06 ) — (0.08 ) Diluted net loss per share $ (3.89 ) $ 0.69 $ (3.22 ) Changes to the Statement of Consolidated Operations For the Nine Months Ended September 30, 2015 Under Full Cost Changes* As Reported Under Successful Efforts (In millions, except per share data) Oil revenues $ 4,092 $ 57 $ 4,149 Natural gas revenues 904 37 941 NGL revenues 166 — 166 Oil and gas production revenues 5,162 94 5,256 Other (59 ) 6 (53 ) Gain on divestiture — 204 204 Exploration — 706 706 General and administrative 279 5 284 Depreciation, depletion, and amortization: Oil and Gas Property and Equipment Recurring 2,751 (504 ) 2,247 Additional 18,757 (18,757 ) — Impairments 367 5,960 6,327 Financing costs, net 240 161 401 Current income tax provision 496 82 578 Deferred income tax provision (benefit) (5,167 ) 3,868 (1,299 ) NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST (14,887 ) 8,783 (6,104 ) Net income attributable to noncontrolling interest 60 38 98 NET LOSS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS (14,947 ) 8,745 (6,202 ) Net loss from discontinued operations (959 ) 824 (135 ) NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS (15,906 ) 9,569 (6,337 ) Per common share Basic net loss from continuing operations per share $ (39.58 ) $ 23.16 $ (16.42 ) Basic net loss from discontinued operations per share (2.54 ) 2.18 (0.36 ) Basic net loss per share $ (42.12 ) $ 25.34 $ (16.78 ) Diluted net loss from continuing operations per share $ (39.58 ) $ 23.16 $ (16.42 ) Diluted net loss from discontinued operations per share (2.54 ) 2.18 (0.36 ) Diluted net loss per share $ (42.12 ) $ 25.34 $ (16.78 ) The following tables present the effects of the change to the successful efforts method in the statement of consolidated cash flows: Changes to the Statement of Consolidated Cash Flows For the Nine Months Ended September 30, 2016 Under Full Cost Changes* As Reported Under Successful Efforts (In millions) Net loss including noncontrolling interest $ (1,531 ) $ 401 $ (1,130 ) Gain on divestitures, net (5 ) (16 ) (21 ) Exploratory dry hole expense and unproved leasehold impairments — 260 260 Depreciation, depletion, and amortization 3,138 (1,143 ) 1,995 Impairments 587 422 1,009 Provision for (benefit from) deferred income taxes (708 ) (47 ) (755 ) Changes in operating assets and liabilities 3 (2 ) 1 Net cash provided by operating activities 1,759 (125 ) 1,634 Additions to oil and gas property (1,406 ) 125 (1,281 ) Net cash used in investing activities (1,487 ) 125 (1,362 ) NET INCREASE (DECREASE) IN CASH (237 ) — (237 ) BEGINNING CASH BALANCE 1,467 — 1,467 ENDING CASH BALANCE 1,230 — 1,230 Changes to the Statement of Consolidated Cash Flows For the Nine Months Ended September 30, 2015 Under Full Cost Changes* As Reported Under Successful Efforts (In millions) Net loss including noncontrolling interest $ (15,846 ) $ 9,607 $ (6,239 ) Loss from discontinued operations 959 (824 ) 135 Gain on divestitures, net — (204 ) (204 ) Exploratory dry hole expense and unproved leasehold impairments — 584 584 Depreciation, depletion, and amortization 21,753 (19,261 ) 2,492 Impairments 367 5,960 6,327 Provision for (benefit from) deferred income taxes (5,167 ) 3,868 (1,299 ) Changes in operating assets and liabilities 317 78 395 Net cash provided by operating activities - continuing operations 2,572 (192 ) 2,380 Net cash provided by operating activities - discontinued operations 150 (37 ) 113 Additions to oil and gas property (3,844 ) 282 (3,562 ) Net cash used in investing activities - continuing operations (3,308 ) 282 (3,026 ) Net cash provided by investing activities - discontinued operations 4,335 37 4,372 NET INCREASE (DECREASE) IN CASH 886 90 976 BEGINNING CASH BALANCE 769 (90 ) 679 ENDING CASH BALANCE 1,655 — 1,655 The following tables present the effects of the change to the successful efforts method in the consolidated balance sheet: Changes to the Consolidated Balance Sheet September 30, 2016 Under Full Cost Changes As Reported Under Successful Efforts (In millions) PROPERTY AND EQUIPMENT: Property and equipment - cost $ 95,107 $ (48,467 ) $ 46,640 Less: Accumulated depreciation, depletion, and amortization (82,717 ) 55,539 (27,178 ) PROPERTY AND EQUIPMENT, NET 12,390 7,072 19,462 TOTAL ASSETS 16,077 7,072 23,149 Deferred income taxes 364 1,419 1,783 Paid-in capital 12,279 142 12,421 Accumulated deficit (8,628 ) 5,425 (3,203 ) Accumulated other comprehensive loss (116 ) (3 ) (119 ) Noncontrolling interest 1,391 89 1,480 TOTAL EQUITY 2,296 5,653 7,949 Changes to the Consolidated Balance Sheet December 31, 2015 Under Full Cost Changes* As Reported Under Successful Efforts (In millions) PROPERTY AND EQUIPMENT: Property and equipment - cost $ 93,825 $ (47,675 ) $ 46,150 Less: Accumulated depreciation, depletion, and amortization (79,706 ) 54,394 (25,312 ) PROPERTY AND EQUIPMENT, NET 14,119 6,719 20,838 TOTAL ASSETS 18,781 6,719 25,500 Deferred income taxes 1,072 1,457 2,529 Paid-in capital 12,467 152 12,619 Accumulated deficit (1) (7,153 ) 5,173 (1,980 ) Accumulated other comprehensive loss (116 ) (3 ) (119 ) Noncontrolling interest 1,662 (60 ) 1,602 TOTAL EQUITY 4,228 5,262 9,490 *In conjunction with recasting the financial information for the adoption of the successful efforts method of accounting, we corrected certain immaterial errors in the North Sea pertaining to the improper calculation of deferred tax liabilities associated with capitalized interest under the full cost method. (1) The cumulative effect of the change to the successful efforts method on retained earnings (accumulated deficit) as of January 1, 2015 was a decrease of $7.6 billion . |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Australia [Member] | Divestiture [Member] | |
Business Acquisition [Line Items] | |
Summary of Sales and Other Operating Revenue and Loss from Discontinued Operation Related to Disposition | Sales and other operating revenues and loss from discontinued operations related to the Australia dispositions were as follows: For the Quarter Ended September 30, For the Nine Months Ended September 30, 2016 2015 2016 2015 (In millions) Revenues and other from discontinued operations $ — $ — $ — $ 288 Impairment on Woodside sale $ — $ — $ — $ (49 ) Loss on Woodside sale (23 ) — (23 ) — Loss on Consortium sale — — — (139 ) Income from divested Australian operations — — — 28 Income tax benefit (expense) — (17 ) — 25 Loss from Australian discontinued operations, net of tax $ (23 ) $ (17 ) $ (23 ) $ (135 ) |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Detail of Other Current Liabilities | The following table provides detail of our other current liabilities as of September 30, 2016 and December 31, 2015 : September 30, 2016 December 31, 2015 (In millions) Accrued operating expenses $ 117 $ 139 Accrued exploration and development 495 637 Accrued compensation and benefits 147 166 Accrued interest 109 144 Accrued income taxes 66 47 Current debt 1 1 Current asset retirement obligation 36 36 Other 100 53 Total other current liabilities $ 1,071 $ 1,223 |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation | The following table describes changes to the Company’s asset retirement obligation (ARO) liability for the nine -month period ended September 30, 2016 : (In millions) Asset retirement obligation at December 31, 2015 $ 2,598 Liabilities incurred 7 Liabilities acquired 34 Liabilities divested (1 ) Liabilities settled (35 ) Accretion expense 116 Revisions in estimated liabilities 59 Asset retirement obligation at September 30, 2016 2,778 Less current portion 36 Asset retirement obligation, long-term $ 2,742 |
Debt and Financing Costs (Table
Debt and Financing Costs (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Carrying Amounts and Estimated Fair Values | The following table presents the carrying amounts and estimated fair values of the Company’s outstanding debt as of September 30, 2016 and December 31, 2015 : September 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value (In millions) Commercial paper and committed bank facilities $ — $ — $ — $ — Notes and debentures 8,722 9,429 8,717 8,330 Total Debt $ 8,722 $ 9,429 $ 8,717 $ 8,330 |
Components of Financing Costs, Net | The following table presents the components of Apache’s financing costs, net: For the Quarter Ended September 30, For the Nine Months Ended September 30, 2016 2015 2016 2015 (In millions) Interest expense $ 116 $ 120 $ 348 $ 371 Amortization of deferred loan costs 2 6 5 10 Capitalized interest (13 ) (3 ) (36 ) (12 ) Loss on extinguishment of debt — 39 — 39 Interest income (3 ) (2 ) (6 ) (7 ) Financing costs, net $ 102 $ 160 $ 311 $ 401 |
Capital Stock (Tables)
Capital Stock (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Reconciliation of the components of basic and diluted net loss per common share | A reconciliation of the components of basic and diluted net loss per common share for the quarters and nine months ended September 30, 2016 and 2015 is presented in the table below. For the Quarter Ended September 30, 2016 2015 Loss Shares Per Share Loss Shares Per Share (In millions, except per share amounts) Basic: Loss from continuing operations $ (574 ) 380 $ (1.51 ) $ (4,126 ) 378 $ (10.91 ) Loss from discontinued operations (33 ) 380 (0.09 ) (17 ) 378 (0.04 ) Loss attributable to common stock $ (607 ) 380 $ (1.60 ) $ (4,143 ) 378 $ (10.95 ) Effect of Dilutive Securities: Stock options and other $ — — $ — $ — — $ — Diluted: Loss from continuing operations $ (574 ) 380 $ (1.51 ) $ (4,126 ) 378 $ (10.91 ) Loss from discontinued operations (33 ) 380 (0.09 ) (17 ) 378 (0.04 ) Loss attributable to common stock $ (607 ) 380 $ (1.60 ) $ (4,143 ) 378 $ (10.95 ) For the Nine Months Ended September 30, 2016 2015 Loss Shares Per Share Loss Shares Per Share (In millions, except per share amounts) Basic: Loss from continuing operations $ (1,190 ) 379 $ (3.14 ) $ (6,202 ) 378 $ (16.42 ) Loss from discontinued operations (33 ) 379 (0.08 ) (135 ) 378 (0.36 ) Loss attributable to common stock $ (1,223 ) 379 $ (3.22 ) $ (6,337 ) 378 $ (16.78 ) Effect of Dilutive Securities: Stock options and other — — — — Diluted: Loss from continuing operations $ (1,190 ) 379 $ (3.14 ) $ (6,202 ) 378 $ (16.42 ) Loss from discontinued operations (33 ) 379 (0.08 ) (135 ) 378 (0.36 ) Loss attributable to common stock $ (1,223 ) 379 $ (3.22 ) $ (6,337 ) 378 $ (16.78 ) |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Financial Segment Information | Financial information for each country is presented below: United States Canada Egypt (1) North Sea Other International Total (4) (In millions) For the Quarter Ended September 30, 2016 Oil and Gas Production Revenues $ 524 $ 87 $ 581 $ 247 $ — $ 1,439 Operating Income (Loss) (2) $ (17 ) $ (466 ) $ 263 $ (455 ) $ (13 ) $ (688 ) Other Income (Expense): Gain on divestitures, net 5 Other (6 ) General and administrative (102 ) Transaction, reorganization, and separation (12 ) Financing costs, net (102 ) Loss From Continuing Operations Before Income Taxes $ (905 ) For the Nine Months Ended September 30, 2016 Oil and Gas Production Revenues $ 1,453 $ 243 $ 1,515 $ 701 $ — $ 3,912 Operating Income (Loss) (2) $ (283 ) $ (586 ) $ 525 $ (557 ) $ (13 ) $ (914 ) Other Income (Expense): Gain on divestitures, net 21 Other (30 ) General and administrative (298 ) Transaction, reorganization, and separation (36 ) Financing costs, net (311 ) Loss From Continuing Operations Before Income Taxes $ (1,568 ) Total Assets $ 12,299 $ 1,630 $ 5,320 $ 3,851 $ 49 $ 23,149 United States Canada Egypt (1) North Sea Other International Total (4) (In millions) For the Quarter Ended September 30, 2015 Oil and Gas Production Revenues $ 639 $ 116 $ 534 $ 317 $ — $ 1,606 Operating Income (Loss) (3) $ (3,582 ) $ (292 ) $ 67 $ (86 ) $ (148 ) $ (4,041 ) Other Income (Expense): Loss on divestitures, net (5 ) Other (75 ) General and administrative (89 ) Transaction, reorganization, and separation — Financing costs, net (160 ) Loss From Continuing Operations Before Income Taxes $ (4,370 ) For the Nine Months Ended September 30, 2015 Oil and Gas Production Revenues $ 2,066 $ 387 $ 1,790 $ 1,013 $ — $ 5,256 Operating Income (Loss) (3) $ (5,967 ) $ (464 ) $ 569 $ (160 ) $ (149 ) $ (6,171 ) Other Income (Expense): Gain on divestitures, net 204 Other (53 ) General and administrative (284 ) Transaction, reorganization, and separation (120 ) Financing costs, net (401 ) Loss From Continuing Operations Before Income Taxes $ (6,825 ) Total Assets $ 15,278 $ 3,627 $ 7,535 $ 4,359 $ 440 $ 31,239 (1) Includes a noncontrolling interest in Egypt. (2) Operating Income (Loss) consists of oil and gas production revenues less lease operating expenses, gathering and transportation costs, taxes other than income, exploration costs, depreciation, depletion, and amortization, asset retirement obligation accretion, and impairments. The operating income (loss) of U.S., Canada, and North Sea includes asset impairments totaling $47 million , $423 million , and $481 million , respectively, for the third quarter of 2016. The operating income (loss) of U.S., Canada, and North Sea includes asset impairments totaling $212 million , $433 million , and $586 million , respectively, for the first nine months of 2016. (3) The operating income (loss) of U.S., Canada, Egypt, North Sea, and Other International includes asset impairments totaling $3.5 billion , $237 million , $78 million , $105 million , and $148 million , respectively, for the third quarter of 2015. The operating income (loss) of U.S., Canada, Egypt, North Sea, and Other International include asset impairments totaling $5.9 billion , $291 million , $91 million , $372 million , and $148 million , respectively, for the first nine months of 2015. (4) Amounts for 2015 have been restated to exclude Australia discontinued operations. |
Supplemental Guarantor Inform29
Supplemental Guarantor Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Guarantees [Abstract] | |
Supplemental Condensed Consolidating Statement of Operations | APACHE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS For the Quarter Ended September 30, 2016 Apache Corporation Apache Finance Canada All Other Subsidiaries of Apache Corporation Reclassifications & Eliminations Consolidated (In millions) REVENUES AND OTHER: Oil and gas production revenues $ 274 $ — $ 1,165 $ — $ 1,439 Equity in net income (loss) of affiliates (493 ) (205 ) — 698 — Other 5 7 (18 ) — (6 ) Gain (loss) on divestiture 3 — 2 — 5 (211 ) (198 ) 1,149 698 1,438 OPERATING EXPENSES: Lease operating expenses 74 — 308 — 382 Gathering and transportation 6 — 45 — 51 Taxes other than income 23 — (14 ) — 9 Exploration 58 — 103 — 161 General and administrative 87 — 15 — 102 Depreciation, depletion, and amortization 154 — 494 — 648 Asset retirement obligation accretion 5 — 35 — 40 Impairments — — 836 — 836 Transaction, reorganization, and separation 12 — — — 12 Financing costs, net 63 6 33 — 102 482 6 1,855 — 2,343 NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (693 ) (204 ) (706 ) 698 (905 ) Provision (benefit) for income taxes (119 ) 1 (261 ) — (379 ) NET INCOME (LOSS) FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST (574 ) (205 ) (445 ) 698 (526 ) Net loss from discontinued operations, net of tax (33 ) — — — (33 ) NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST (607 ) (205 ) (445 ) 698 (559 ) Net income attributable to noncontrolling interest — — 48 — 48 NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK $ (607 ) $ (205 ) $ (493 ) $ 698 $ (607 ) APACHE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS For the Quarter Ended September 30, 2015 Apache Corporation Apache Finance Canada All Other Subsidiaries of Apache Corporation Reclassifications & Eliminations Consolidated (In millions) REVENUES AND OTHER: Oil and gas production revenues $ 344 $ — $ 1,262 $ — $ 1,606 Equity in net income (loss) of affiliates (2,247 ) (92 ) — 2,339 — Other (62 ) 14 (27 ) — (75 ) Gain (loss) on divestiture (7 ) — 2 — (5 ) (1,972 ) (78 ) 1,237 2,339 1,526 OPERATING EXPENSES: Lease operating expenses 97 — 353 — 450 Gathering and transportation 9 — 49 — 58 Taxes other than income 30 — 74 — 104 Exploration 139 — 84 — 223 General and administrative 76 — 13 — 89 Depreciation, depletion, and amortization 257 — 615 — 872 Asset retirement obligation accretion 4 — 33 — 37 Impairments 2,177 — 1,726 — 3,903 Financing costs, net 160 10 (10 ) — 160 2,949 10 2,937 — 5,896 NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (4,921 ) (88 ) (1,700 ) 2,339 (4,370 ) Provision (benefit) for income taxes (785 ) 4 530 — (251 ) NET INCOME (LOSS) FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST (4,136 ) (92 ) (2,230 ) 2,339 (4,119 ) Net income (loss) from discontinued operations, net of tax (7 ) — (10 ) — (17 ) NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST (4,143 ) (92 ) (2,240 ) 2,339 (4,136 ) Net income attributable to noncontrolling interest — — 7 — 7 NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK $ (4,143 ) $ (92 ) $ (2,247 ) $ 2,339 $ (4,143 ) Apache Corporation Apache Finance Canada All Other Subsidiaries of Apache Corporation Reclassifications & Eliminations Consolidated (In millions) REVENUES AND OTHER: Oil and gas production revenues $ 761 $ — $ 3,151 $ — $ 3,912 Equity in net income (loss) of affiliates (677 ) (225 ) — 902 — Other 11 28 (69 ) — (30 ) Gain (loss) on divestiture 1 — 20 — 21 96 (197 ) 3,102 902 3,903 OPERATING EXPENSES: Lease operating expenses 218 — 901 — 1,119 Gathering and transportation 25 — 130 — 155 Taxes other than income 66 — 19 — 85 Exploration 184 — 163 — 347 General and administrative 250 — 48 — 298 Depreciation, depletion, and amortization 469 — 1,526 — 1,995 Asset retirement obligation accretion 14 — 102 — 116 Impairments 61 — 948 — 1,009 Transaction, reorganization, and separation 36 — — — 36 Financing costs, net 188 23 100 — 311 1,511 23 3,937 — 5,471 NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (1,415 ) (220 ) (835 ) 902 (1,568 ) Provision (benefit) for income taxes (225 ) 5 (251 ) — (471 ) NET INCOME (LOSS) FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST (1,190 ) (225 ) (584 ) 902 (1,097 ) Net loss from discontinued operations, net of tax (33 ) — — — (33 ) NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST (1,223 ) (225 ) (584 ) 902 (1,130 ) Net income attributable to noncontrolling interest — — 93 — 93 NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK $ (1,223 ) $ (225 ) $ (677 ) $ 902 $ (1,223 ) Apache Corporation Apache Finance Canada All Other Subsidiaries of Apache Corporation Reclassifications & Eliminations Consolidated (In millions) REVENUES AND OTHER: Oil and gas production revenues $ 1,143 $ — $ 4,113 $ — $ 5,256 Equity in net income (loss) of affiliates (3,664 ) (154 ) — 3,818 — Other (107 ) 40 (5 ) 19 (53 ) Gain (loss) on divestiture (36 ) — 240 — 204 (2,664 ) (114 ) 4,348 3,837 5,407 OPERATING EXPENSES: Lease operating expenses 329 — 1,069 — 1,398 Gathering and transportation 25 — 138 — 163 Taxes other than income 97 — 135 — 232 Exploration 399 — 307 — 706 General and administrative 214 — 51 19 284 Depreciation, depletion, and amortization 751 — 1,741 — 2,492 Asset retirement obligation accretion 11 — 98 — 109 Impairments 3,543 — 2,784 — 6,327 Transaction, reorganization, and separation 120 — — — 120 Financing costs, net 375 31 (5 ) — 401 5,864 31 6,318 19 12,232 NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (8,528 ) (145 ) (1,970 ) 3,818 (6,825 ) Provision (benefit) for income taxes (2,370 ) 9 1,640 — (721 ) NET INCOME (LOSS) FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST (6,158 ) (154 ) (3,610 ) 3,818 (6,104 ) Net income (loss) from discontinued operations, net of tax (179 ) — 44 — (135 ) NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST (6,337 ) (154 ) (3,566 ) 3,818 (6,239 ) Net income attributable to noncontrolling interest — — 98 — 98 NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK $ (6,337 ) $ (154 ) $ (3,664 ) $ 3,818 $ (6,337 ) |
Supplemental Condensed Consolidating Statement of Cash Flows | APACHE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Nine Months Ended September 30, 2016 Apache Corporation Apache Finance Canada All Other Subsidiaries of Apache Corporation Reclassifications & Eliminations Consolidated (In millions) CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ 269 $ (1 ) $ 1,366 $ — $ 1,634 CASH FLOWS FROM INVESTING ACTIVITIES: Additions to oil and gas property (929 ) — (352 ) — (1,281 ) Leasehold and property acquisitions (98 ) — (71 ) — (169 ) Additions to gas gathering, transmission, and processing facilities (32 ) — (1 ) — (33 ) Proceeds from sale of other oil and gas properties 54 — 20 — 74 Investment in subsidiaries, net 824 — — (824 ) — Other (7 ) — 54 — 47 NET CASH USED IN INVESTING ACTIVITIES (188 ) — (350 ) (824 ) (1,362 ) CASH FLOWS FROM FINANCING ACTIVITIES: Intercompany borrowings — (23 ) (801 ) 824 — Payment of fixed-rate debt — — (1 ) — (1 ) Distributions to noncontrolling interest — — (215 ) — (215 ) Common stock activity, net — 24 (24 ) — — Dividends paid (284 ) — — — (284 ) Other 2 — (11 ) — (9 ) NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (282 ) 1 (1,052 ) 824 (509 ) NET DECREASE IN CASH AND CASH EQUIVALENTS (201 ) — (36 ) — (237 ) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 378 — 1,089 — 1,467 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 177 $ — $ 1,053 $ — $ 1,230 APACHE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS For the Nine Months Ended September 30, 2015 Apache Corporation Apache Finance Canada All Other Subsidiaries of Apache Corporation Reclassifications & Eliminations Consolidated (In millions) CASH PROVIDED BY (USED IN) CONTINUING OPERATING ACTIVITIES $ (135 ) $ (25 ) $ 2,540 $ — $ 2,380 CASH PROVIDED BY DISCONTINUED OPERATIONS — — 113 — 113 CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (135 ) (25 ) 2,653 — 2,493 CASH FLOWS FROM INVESTING ACTIVITIES: Additions to oil and gas property (1,320 ) — (2,242 ) — (3,562 ) Leasehold and property acquisitions (243 ) — (11 ) — (254 ) Additions to gas gathering, transmission, and processing facilities (25 ) — (88 ) — (113 ) Proceeds from sale Kitimat LNG — — 854 — 854 Proceeds from sale of other oil and gas properties 8 — 140 — 148 Investment in subsidiaries, net 274 — — (274 ) — Other (16 ) — (83 ) — (99 ) NET CASH USED IN CONTINUING INVESTING ACTIVITIES (1,322 ) — (1,430 ) (274 ) (3,026 ) NET CASH PROVIDED BY DISCONTINUED OPERATIONS — — 4,372 — 4,372 NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (1,322 ) — 2,942 (274 ) 1,346 CASH FLOWS FROM FINANCING ACTIVITIES: Commercial paper and bank credit facilities, net (1,570 ) — — — (1,570 ) Payment of fixed-rate debt (939 ) — — — (939 ) Intercompany borrowings 4,431 (10 ) (4,695 ) 274 — Distributions to noncontrolling interest — — (97 ) — (97 ) Dividends paid (283 ) — — — (283 ) Other 2 35 (11 ) — 26 NET CASH PROVIDED BY (USED IN) CONTINUING FINANCING ACTIVITIES 1,641 25 (4,803 ) 274 (2,863 ) NET CASH USED IN DISCONTINUED OPERATIONS — — — — — NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 1,641 25 (4,803 ) 274 (2,863 ) NET INCREASE IN CASH AND CASH EQUIVALENTS 184 — 792 — 976 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 267 — 412 — 679 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 451 $ — $ 1,204 $ — $ 1,655 |
Supplemental Condensed Consolidating Balance Sheet | APACHE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET September 30, 2016 Apache Corporation Apache Finance Canada All Other Subsidiaries of Apache Corporation Reclassifications & Eliminations Consolidated (In millions) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 177 $ — $ 1,053 $ — $ 1,230 Receivables, net of allowance 311 — 753 — 1,064 Inventories 32 — 481 — 513 Drilling advances 5 — 204 — 209 Deferred tax asset (28 ) — 28 — — Prepaid assets and other 191 — 65 — 256 Intercompany receivable 5,418 — — (5,418 ) — 6,106 — 2,584 (5,418 ) 3,272 PROPERTY AND EQUIPMENT, NET 7,069 — 12,393 — 19,462 OTHER ASSETS: Intercompany receivable — — 12,034 (12,034 ) — Equity in affiliates 15,415 (1,289 ) 703 (14,829 ) — Deferred charges and other 95 1,000 320 (1,000 ) 415 $ 28,685 $ (289 ) $ 28,034 $ (33,281 ) $ 23,149 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 338 $ (13 ) $ 232 $ — $ 557 Other current liabilities 468 8 595 — 1,071 Intercompany payable — — 5,418 (5,418 ) — 806 (5 ) 6,245 (5,418 ) 1,628 LONG-TERM DEBT 8,424 297 — — 8,721 DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES: Intercompany payable 12,034 — — (12,034 ) — Income taxes (230 ) 5 2,008 — 1,783 Asset retirement obligation 280 — 2,462 — 2,742 Other 902 — 424 (1,000 ) 326 12,986 5 4,894 (13,034 ) 4,851 COMMITMENTS AND CONTINGENCIES APACHE SHAREHOLDERS’ EQUITY 6,469 (586 ) 15,415 (14,829 ) 6,469 Noncontrolling interest — — 1,480 — 1,480 TOTAL EQUITY 6,469 (586 ) 16,895 (14,829 ) 7,949 $ 28,685 $ (289 ) $ 28,034 $ (33,281 ) $ 23,149 APACHE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET December 31, 2015 Apache Corporation Apache Finance Canada All Other Subsidiaries of Apache Corporation Reclassifications & Eliminations Consolidated (In millions) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 378 $ — $ 1,089 $ — $ 1,467 Receivables, net of allowance 314 — 939 — 1,253 Inventories 34 — 536 — 570 Drilling advances 16 — 156 — 172 Prepaid assets and other 102 — 188 — 290 Intercompany receivable 5,212 — — (5,212 ) — 6,056 — 2,908 (5,212 ) 3,752 PROPERTY AND EQUIPMENT, NET 6,546 — 14,292 — 20,838 OTHER ASSETS: Intercompany receivable — — 10,744 (10,744 ) — Equity in affiliates 16,092 (807 ) 446 (15,731 ) — Deferred charges and other 96 1,001 813 (1,000 ) 910 $ 28,790 $ 194 $ 29,203 $ (32,687 ) $ 25,500 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable $ 409 $ — $ 209 $ — $ 618 Other current liabilities 539 3 681 — 1,223 Intercompany payable — — 5,212 (5,212 ) — 948 3 6,102 (5,212 ) 1,841 LONG-TERM DEBT 8,418 298 — — 8,716 DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES: Intercompany payable 10,744 — — (10,744 ) — Income taxes (412 ) 4 2,937 — 2,529 Asset retirement obligation 271 — 2,291 — 2,562 Other 933 250 179 (1,000 ) 362 11,536 254 5,407 (11,744 ) 5,453 COMMITMENTS AND CONTINGENCIES APACHE SHAREHOLDERS’ EQUITY 7,888 (361 ) 16,092 (15,731 ) 7,888 Noncontrolling interest — — 1,602 — 1,602 TOTAL EQUITY 7,888 (361 ) 17,694 (15,731 ) 9,490 $ 28,790 $ 194 $ 29,203 $ (32,687 ) $ 25,500 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Detail) - USD ($) $ in Millions | Jan. 01, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 |
Schedule Of Significant Accounting Policies [Line Items] | |||||||||
Asset impairment charges and unproved oil and gas leasehold impairments | $ 951 | $ 1,200 | $ 6,800 | ||||||
Asset impairments | 6,300 | ||||||||
U.K. Petroleum Revenue Tax rate | 0.00% | 35.00% | |||||||
Impairment charge of PRT benefits, before tax | 481 | ||||||||
Impairment charge of PRT benefits, net of tax | 289 | ||||||||
Remaining recoverable PRT benefits | 13 | 13 | |||||||
Oil and gas property, fair value disclosure | 163 | $ 143 | $ 1,900 | 163 | 1,900 | $ 516 | $ 1,200 | ||
Impairment of goodwill | 163 | ||||||||
Impairment of equity method investment | 148 | ||||||||
Impairment of inventory | 9 | ||||||||
Oil and Gas Properties, Proved [Member] | |||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||
Asset impairments | 355 | 3,536 | 423 | 5,797 | |||||
Oil and Gas Properties, Unproved [Member] | |||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||
Asset impairments | 114 | $ 199 | 222 | 515 | |||||
Gas Gathering, Transmission, and Processing Assets [Member] | |||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||
Asset impairments | $ 105 | $ 210 | |||||||
US and Canada [Member] | |||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||
Asset impairments | 470 | 645 | |||||||
Fair Value, Inputs, Level 3 [Member] | Gas Gathering, Transmission, and Processing Assets [Member] | |||||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||||
Property, plant and equipment, fair value | $ 175 | $ 175 |
Change in Accounting Principl31
Change in Accounting Principle - Statement of Consolidated Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||
Oil and Gas Production Revenues | $ 1,439 | $ 1,606 | [1] | $ 3,912 | $ 5,256 | [1] |
Other | (6) | (75) | [1] | (30) | (53) | [1] |
Gain (loss) on divestitures | 5 | (5) | [1] | 21 | 204 | [1],[2] |
Exploration | 161 | 223 | [1] | 347 | 706 | [1] |
General and administrative | 102 | 89 | [1] | 298 | 284 | [1] |
Depreciation, depletion and amortization | 648 | 872 | 1,995 | 2,492 | [2] | |
Impairments | 836 | 3,903 | [1] | 1,009 | 6,327 | [1],[2] |
Financing costs, net | 102 | 160 | [1] | 311 | 401 | [1] |
Current income tax provision (benefit) | 150 | (270) | [1] | 284 | 578 | [1] |
Deferred income tax provision (benefit) | (529) | 19 | [1] | (755) | (1,299) | [1],[2] |
NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST | (526) | (4,119) | [1] | (1,097) | (6,104) | [1] |
Net income attributable to noncontrolling interest | 48 | 7 | [1] | 93 | 98 | [1] |
Net loss from continuing operations attributable to common shareholders | (574) | (4,126) | [1] | (1,190) | (6,202) | [1] |
Net loss from discontinued operations, net of tax | (33) | (17) | [1] | (33) | (135) | [1] |
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ (607) | $ (4,143) | [1] | $ (1,223) | $ (6,337) | [1] |
Basic net loss from continuing operations per share | $ (1.51) | $ (10.91) | [1] | $ (3.14) | $ (16.42) | [1] |
Basic net loss from discontinued operations per share | (0.09) | (0.04) | [1] | (0.08) | (0.36) | [1] |
Basic net loss per share | (1.60) | (10.95) | [1] | (3.22) | (16.78) | [1] |
Diluted net loss from continuing operations per share | (1.51) | (10.91) | [1] | (3.14) | (16.42) | [1] |
Diluted net loss from discontinued operations per share | (0.09) | (0.04) | [1] | (0.08) | (0.36) | [1] |
Diluted net loss per share | $ (1.60) | $ (10.95) | [1] | $ (3.22) | $ (16.78) | [1] |
Oil and gas property and equipment, Recurring [Member] | ||||||
Depreciation, depletion and amortization | $ 610 | $ 793 | $ 1,875 | $ 2,247 | ||
Oil and gas property and equipment, Additional [Member] | ||||||
Depreciation, depletion and amortization | 0 | 0 | 0 | 0 | ||
Impairments | 836 | |||||
Under Full Cost [Member] | ||||||
Oil and Gas Production Revenues | 1,390 | 1,572 | 3,790 | 5,162 | ||
Other | (5) | (76) | (33) | (59) | ||
Gain (loss) on divestitures | 2 | 0 | 5 | 0 | ||
Exploration | 0 | 0 | 0 | 0 | ||
General and administrative | 86 | 279 | ||||
Depreciation, depletion and amortization | 3,138 | 21,753 | ||||
Impairments | 367 | 587 | 367 | |||
Financing costs, net | 92 | 107 | 272 | 240 | ||
Current income tax provision (benefit) | 101 | (84) | 162 | 496 | ||
Deferred income tax provision (benefit) | (407) | (707) | (708) | (5,167) | ||
NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST | (315) | (5,551) | (1,498) | (14,887) | ||
Net income attributable to noncontrolling interest | 37 | 9 | (56) | 60 | ||
Net loss from continuing operations attributable to common shareholders | (352) | (5,560) | (1,442) | (14,947) | ||
Net loss from discontinued operations, net of tax | (33) | (95) | (33) | (959) | ||
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ (385) | $ (5,655) | $ (1,475) | $ (15,906) | ||
Basic net loss from continuing operations per share | $ (0.96) | $ (14.70) | $ (3.83) | $ (39.58) | ||
Basic net loss from discontinued operations per share | (0.06) | (0.25) | (0.06) | (2.54) | ||
Basic net loss per share | (14.95) | (42.12) | ||||
Diluted net loss from continuing operations per share | (0.96) | (14.70) | (3.83) | (39.58) | ||
Diluted net loss from discontinued operations per share | (0.06) | (0.25) | (0.06) | (2.54) | ||
Diluted net loss per share | $ (1.02) | $ (14.95) | $ (3.89) | $ (42.12) | ||
Under Full Cost [Member] | Oil and gas property and equipment, Recurring [Member] | ||||||
Depreciation, depletion and amortization | $ 473 | $ 829 | $ 1,532 | $ 2,751 | ||
Under Full Cost [Member] | Oil and gas property and equipment, Additional [Member] | ||||||
Depreciation, depletion and amortization | 328 | 5,721 | 1,486 | 18,757 | ||
Impairments | 481 | |||||
Change from Full Cost Method to Successful Efforts Method [Member] | Changes [Member] | ||||||
Oil and Gas Production Revenues | 49 | 34 | 122 | 94 | ||
Other | (1) | 1 | 3 | 6 | ||
Gain (loss) on divestitures | 3 | (5) | 16 | 204 | ||
Exploration | 161 | 223 | 347 | 706 | ||
General and administrative | 3 | 5 | ||||
Depreciation, depletion and amortization | (1,143) | (19,261) | ||||
Impairments | 3,536 | 422 | 5,960 | |||
Financing costs, net | 10 | 53 | 39 | 161 | ||
Current income tax provision (benefit) | 49 | (186) | 122 | 82 | ||
Deferred income tax provision (benefit) | (122) | 726 | (47) | 3,868 | ||
NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST | (211) | 1,432 | 401 | 8,783 | ||
Net income attributable to noncontrolling interest | 11 | (2) | 149 | 38 | ||
Net loss from continuing operations attributable to common shareholders | (222) | 1,434 | 252 | 8,745 | ||
Net loss from discontinued operations, net of tax | 0 | 78 | 0 | 824 | ||
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ (222) | $ 1,512 | $ 252 | $ 9,569 | ||
Basic net loss from continuing operations per share | $ (0.55) | $ 3.79 | $ 0.69 | $ 23.16 | ||
Basic net loss from discontinued operations per share | 0 | 0.21 | 0 | 2.18 | ||
Basic net loss per share | (0.55) | 4 | 0.69 | 25.34 | ||
Diluted net loss from continuing operations per share | (0.55) | 3.79 | 0.69 | 23.16 | ||
Diluted net loss from discontinued operations per share | 0 | 0.21 | 0 | 2.18 | ||
Diluted net loss per share | $ (0.55) | $ 4 | $ 0.69 | $ 25.34 | ||
Change from Full Cost Method to Successful Efforts Method [Member] | Changes [Member] | Oil and gas property and equipment, Recurring [Member] | ||||||
Depreciation, depletion and amortization | $ 137 | $ (36) | $ 343 | $ (504) | ||
Change from Full Cost Method to Successful Efforts Method [Member] | Changes [Member] | Oil and gas property and equipment, Additional [Member] | ||||||
Depreciation, depletion and amortization | (328) | (5,721) | (1,486) | (18,757) | ||
Impairments | 355 | |||||
Oil [Member] | ||||||
Oil and Gas Production Revenues | 1,117 | 1,238 | [1] | 3,057 | 4,149 | [1] |
Oil [Member] | Under Full Cost [Member] | ||||||
Oil and Gas Production Revenues | 1,058 | 1,213 | 2,915 | 4,092 | ||
Oil [Member] | Change from Full Cost Method to Successful Efforts Method [Member] | Changes [Member] | ||||||
Oil and Gas Production Revenues | 59 | 25 | 142 | 57 | ||
Natural Gas [Member] | ||||||
Oil and Gas Production Revenues | 263 | 318 | [1] | 695 | 941 | [1] |
Natural Gas [Member] | Under Full Cost [Member] | ||||||
Oil and Gas Production Revenues | 273 | 309 | 715 | 904 | ||
Natural Gas [Member] | Change from Full Cost Method to Successful Efforts Method [Member] | Changes [Member] | ||||||
Oil and Gas Production Revenues | (10) | 9 | (20) | 37 | ||
Natural Gas Liquids [Member] | ||||||
Oil and Gas Production Revenues | 59 | 50 | [1] | 160 | 166 | [1] |
Natural Gas Liquids [Member] | Under Full Cost [Member] | ||||||
Oil and Gas Production Revenues | 59 | 50 | 160 | 166 | ||
Natural Gas Liquids [Member] | Change from Full Cost Method to Successful Efforts Method [Member] | Changes [Member] | ||||||
Oil and Gas Production Revenues | $ 0 | $ 0 | $ 0 | $ 0 | ||
[1] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. | |||||
[2] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. |
Change in Accounting Principl32
Change in Accounting Principle - Statement of Consolidated Cash Flow (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||||
Net loss including noncontrolling interest | $ (559) | $ (4,136) | [1] | $ (1,130) | $ (6,239) | [1],[2] | |
Loss from discontinued operations | 33 | 17 | [1] | 33 | 135 | [1],[2] | |
Gain on divestitures | (5) | 5 | [1] | (21) | (204) | [1],[2] | |
Exploratory dry hole expense and unproved leasehold impairments | 260 | 584 | [2] | ||||
Depreciation, depletion, and amortization | 648 | 872 | 1,995 | 2,492 | [2] | ||
Impairments | 836 | 3,903 | [1] | 1,009 | 6,327 | [1],[2] | |
Deferred income tax benefit | (529) | 19 | [1] | (755) | (1,299) | [1],[2] | |
Other Operating Activities, Cash Flow Statement | 1 | 395 | |||||
NET CASH PROVIDED BY CONTINUING OPERATING ACTIVITIES | 1,634 | 2,380 | [2] | ||||
NET CASH PROVIDED BY DISCONTINUED OPERATIONS | 0 | 113 | [2] | ||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 1,634 | 2,493 | [2] | ||||
Additions to oil and gas property | (1,281) | (3,562) | [2] | ||||
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | (1,362) | (3,026) | [2] | ||||
NET CASH PROVIDED BY DISCONTINUED OPERATIONS | 0 | 4,372 | [2] | ||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (1,362) | 1,346 | [2] | ||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (237) | 976 | [2] | ||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 1,467 | [3] | 679 | [2] | |||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 1,230 | 1,655 | [2] | 1,230 | 1,655 | [2] | |
Under Full Cost [Member] | |||||||
Net loss including noncontrolling interest | (1,531) | (15,846) | |||||
Loss from discontinued operations | 959 | ||||||
Gain on divestitures | (2) | 0 | (5) | 0 | |||
Exploratory dry hole expense and unproved leasehold impairments | 0 | 0 | |||||
Depreciation, depletion, and amortization | 3,138 | 21,753 | |||||
Impairments | 367 | 587 | 367 | ||||
Deferred income tax benefit | (407) | (707) | (708) | (5,167) | |||
Other Operating Activities, Cash Flow Statement | 3 | 317 | |||||
NET CASH PROVIDED BY CONTINUING OPERATING ACTIVITIES | 2,572 | ||||||
NET CASH PROVIDED BY DISCONTINUED OPERATIONS | 150 | ||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 1,759 | ||||||
Additions to oil and gas property | (1,406) | (3,844) | |||||
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | (3,308) | ||||||
NET CASH PROVIDED BY DISCONTINUED OPERATIONS | 4,335 | ||||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (1,487) | ||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (237) | 886 | |||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 1,467 | 769 | |||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 1,230 | 1,655 | 1,230 | 1,655 | |||
Change from Full Cost Method to Successful Efforts Method [Member] | Changes [Member] | |||||||
Net loss including noncontrolling interest | 401 | 9,607 | |||||
Loss from discontinued operations | (824) | ||||||
Gain on divestitures | (3) | 5 | (16) | (204) | |||
Exploratory dry hole expense and unproved leasehold impairments | 260 | 584 | |||||
Depreciation, depletion, and amortization | (1,143) | (19,261) | |||||
Impairments | 3,536 | 422 | 5,960 | ||||
Deferred income tax benefit | (122) | 726 | (47) | 3,868 | |||
Other Operating Activities, Cash Flow Statement | (2) | 78 | |||||
NET CASH PROVIDED BY CONTINUING OPERATING ACTIVITIES | (192) | ||||||
NET CASH PROVIDED BY DISCONTINUED OPERATIONS | (37) | ||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | (125) | ||||||
Additions to oil and gas property | 125 | 282 | |||||
Net Cash Provided by (Used in) Investing Activities, Continuing Operations | 282 | ||||||
NET CASH PROVIDED BY DISCONTINUED OPERATIONS | 37 | ||||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 125 | ||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 0 | 90 | |||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 0 | (90) | |||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 0 | $ 0 | $ 0 | $ 0 | |||
[1] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. | ||||||
[2] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. | ||||||
[3] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. |
Change in Accounting Principl33
Change in Accounting Principle - Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Property and equipment - cost | $ 46,640 | $ 46,150 | [1] | ||
Less: Accumulated depreciation, depletion, and amortization | (27,178) | (25,312) | [1] | ||
Property and equipment, net | 19,462 | 20,838 | [1] | ||
Total Assets | 23,149 | 25,500 | [1] | $ 31,239 | |
Other current liabilities | 1,071 | 1,223 | [1] | ||
Income taxes | 1,783 | 2,529 | [1] | ||
Paid-in capital | 12,421 | 12,619 | [1] | ||
Accumulated deficit | (3,203) | (1,980) | [1] | ||
Accumulated other comprehensive loss | (119) | (119) | [1] | ||
Noncontrolling interest | 1,480 | 1,602 | [1] | ||
TOTAL EQUITY | 7,949 | 9,490 | [1] | $ 13,983 | $ 20,541 |
Under Full Cost [Member] | |||||
Property and equipment - cost | 95,107 | 93,825 | |||
Less: Accumulated depreciation, depletion, and amortization | (82,717) | (79,706) | |||
Property and equipment, net | 12,390 | 14,119 | |||
Total Assets | 16,077 | 18,781 | |||
Income taxes | 364 | 1,072 | |||
Paid-in capital | 12,279 | 12,467 | |||
Accumulated deficit | (8,628) | (7,153) | |||
Accumulated other comprehensive loss | (116) | (116) | |||
Noncontrolling interest | 1,391 | 1,662 | |||
TOTAL EQUITY | 2,296 | 4,228 | 28,137 | ||
Change from Full Cost Method to Successful Efforts Method [Member] | Changes [Member] | |||||
Property and equipment - cost | (48,467) | (47,675) | |||
Less: Accumulated depreciation, depletion, and amortization | 55,539 | 54,394 | |||
Property and equipment, net | 7,072 | 6,719 | |||
Total Assets | 7,072 | 6,719 | |||
Income taxes | 1,419 | 1,457 | |||
Paid-in capital | 142 | 152 | |||
Accumulated deficit | 5,425 | 5,173 | $ (7,600) | ||
Accumulated other comprehensive loss | (3) | (3) | |||
Noncontrolling interest | 89 | (60) | |||
TOTAL EQUITY | $ 5,653 | $ 5,262 | |||
[1] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. |
Acquisitions and Divestitures -
Acquisitions and Divestitures - 2016 Activity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||
Business Combinations [Abstract] | ||||||
Leasehold and property acquisitions | $ 51 | $ 126 | $ 169 | $ 254 | [1] | |
Transaction, reorganization, and separation | $ 12 | $ 0 | [2] | $ 36 | $ 120 | [2] |
[1] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. | |||||
[2] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. |
Acquisitions and Divestitures35
Acquisitions and Divestitures - 2015 Activity (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Oct. 31, 2015 | Jun. 30, 2015 | Apr. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Sep. 30, 2015 | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Percentage of ownership | 100.00% | 100.00% | |||||||||
Impairment of equity method investment | $ 148 | ||||||||||
Proceeds from sale of Kitimat LNG project | $ 0 | 854 | [1] | ||||||||
Impairments | $ 836 | $ 3,903 | [2] | 1,009 | 6,327 | [1],[2] | |||||
Leasehold and property acquisitions | 51 | 126 | 169 | 254 | [1] | ||||||
Transaction, reorganization, and separation | $ 12 | $ 0 | [2] | $ 36 | $ 120 | [2] | |||||
Australia [Member] | Woodside Sale [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Proceeds from divestitures | $ 2,800 | ||||||||||
Australia [Member] | Consortium Sale [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Proceeds from divestitures | $ 1,900 | ||||||||||
Gain (loss) on disposal | $ (139) | ||||||||||
Upstream Assets [Member] | Canada [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Gain (loss) on disposal | 146 | ||||||||||
Upstream Assets [Member] | Australia [Member] | Woodside Sale [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Proceeds from divestitures | 1,400 | ||||||||||
LNG Assets [Member] | Australia [Member] | Woodside Sale [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Proceeds from divestitures | $ 1,400 | ||||||||||
Wheatstone LNG [Member] | Australia [Member] | Oil and gas property and equipment [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Impairments | $ 49 | ||||||||||
Gain (loss) on disposal | $ (23) | ||||||||||
Yara Pilbara Holdings Pty Limited [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Percentage of ownership | 49.00% | 49.00% | |||||||||
Proceeds from Sale of Equity Method Investments | $ 391 | ||||||||||
Impairment of equity method investment | $ 148 | ||||||||||
Kitimat LNG [Member] | Canada [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Percentage of ownership | 50.00% | ||||||||||
Proceeds from sale of Kitimat LNG project | $ 854 | ||||||||||
Impairments | $ 655 | ||||||||||
Kitimat LNG [Member] | Upstream Assets [Member] | Canada [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Proceeds from sale of Kitimat LNG project | 510 | ||||||||||
Kitimat LNG [Member] | LNG Assets [Member] | Canada [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Proceeds from sale of Kitimat LNG project | $ 344 | ||||||||||
Wheatstone LNG [Member] | Australia [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Impairments | $ 833 | ||||||||||
[1] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. | ||||||||||
[2] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. |
Acquisitions and Divestitures36
Acquisitions and Divestitures - Summary of Sales and Other Operating Revenue and Loss From Discontinued Operation Related to Disposition - Australia Divestitures (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Impairments | $ (836) | $ (3,903) | [1] | $ (1,009) | $ (6,327) | [1],[2] | |
Loss from Australian discontinued operations, net of tax | (33) | (17) | [1] | (33) | (135) | [1] | |
Australia [Member] | Divestiture [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Revenues and other from discontinued operations | 288 | ||||||
Income from divested Australian operations | 28 | ||||||
Income tax benefit (expense) | (17) | 25 | |||||
Loss from Australian discontinued operations, net of tax | (23) | $ (17) | (23) | (135) | |||
Woodside Sale [Member] | Australia [Member] | Divestiture [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Impairments | (49) | ||||||
Gain (loss) on disposal | $ (23) | $ (23) | |||||
Consortium Sale [Member] | Australia [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Gain (loss) on disposal | $ (139) | ||||||
Consortium Sale [Member] | Australia [Member] | Divestiture [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Gain (loss) on disposal | $ (139) | ||||||
[1] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. | ||||||
[2] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. |
Capitalized Exploratory Well 37
Capitalized Exploratory Well Costs (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | |
Extractive Industries [Abstract] | |||
Capitalized exploratory well costs | $ 283,000,000 | $ 245,000,000 | |
Capitalized exploratory well costs that have been capitalized for period greater than one year | 32,000,000 | $ 61,000,000 | |
Increase of capitalized exploratory well costs that have been capitalized for a period greater than one year | $ 32,000,000 | $ 0 |
Other Current Liabilities - Det
Other Current Liabilities - Details of Other Current Liabilities (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |||
Accrued operating expenses | $ 117 | $ 139 | |
Accrued exploration and development | 495 | 637 | |
Accrued compensation and benefits | 147 | 166 | |
Accrued interest | 109 | 144 | |
Accrued income taxes | 66 | 47 | |
Current debt | 1 | 1 | |
Current asset retirement obligation | 36 | 36 | |
Other | 100 | 53 | |
Total other current liabilities | $ 1,071 | $ 1,223 | [1] |
[1] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. |
Asset Retirement Obligation - A
Asset Retirement Obligation - Asset Retirement Obligation (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Asset retirement obligation at the beginning of period | $ 2,598 | ||
Liabilities incurred | 7 | ||
Liabilities acquired | 34 | ||
Liabilities divested | (1) | ||
Liabilities settled | (35) | ||
Accretion expense | 116 | ||
Revisions in estimated liabilities | 59 | ||
Asset retirement obligation at the end of period | 2,778 | ||
Less current portion | 36 | $ 36 | |
Asset retirement obligation, long-term | $ 2,742 | $ 2,562 | [1] |
[1] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. |
Debt and Financing Costs - Summ
Debt and Financing Costs - Summary of Carrying Amounts and Estimated Fair Values (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 9,429 | $ 8,330 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 8,722 | 8,717 |
Notes and Debentures [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 9,429 | 8,330 |
Notes and Debentures [Member] | Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 8,722 | 8,717 |
Commercial Paper [Member] | Commercial Paper and Committed Bank Facilities [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | 0 | 0 |
Commercial Paper [Member] | Commercial Paper and Committed Bank Facilities [Member] | Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | $ 0 | $ 0 |
Debt and Financing Costs - Addi
Debt and Financing Costs - Additional Information (Detail) | 9 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2016GBP (£) | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |||
Debt instrument term | 5 years | ||
Letters of credit outstanding, amount | £ | £ 96,000,000 | ||
Debt issuance costs | $ 61,000,000 | ||
Long-term debt | $ 58,000,000 | ||
Commercial Paper [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument term | 270 days | ||
Debt instrument, face amount | $ 3,500,000,000 | ||
Letter of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | £ | £ 900,000,000 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility maximum borrowing capacity | $ 3,500,000,000 | ||
Credit facility maturity date | Jun. 30, 2020 |
Debt and Financing Costs - Comp
Debt and Financing Costs - Components of Financing Costs, Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||
Debt Disclosure [Abstract] | ||||||
Interest expense | $ 116 | $ 120 | $ 348 | $ 371 | ||
Amortization of deferred loan costs | 2 | 6 | 5 | 10 | ||
Capitalized interest | (13) | (3) | (36) | (12) | ||
Loss on extinguishment of debt | 0 | 39 | 0 | 39 | ||
Interest income | (3) | (2) | (6) | (7) | ||
Financing costs, net | $ 102 | $ 160 | [1] | $ 311 | $ 401 | [1] |
[1] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - Her Majesty's Revenue and Customs (HMRC) [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | ||||
Effective income tax rate | 40.00% | 50.00% | 62.00% | |
Deferred foreign tax benefit | $ 235 | $ 414 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Jun. 06, 2016 | Mar. 21, 2016 | Mar. 20, 2016 | Sep. 30, 2016 |
Commitment And Contingencies [Line Items] | ||||
Accrued liability for legal contingencies | $ 38,000,000 | |||
Undiscounted reserve for environmental remediation | 55,000,000 | |||
Apollo Exploration Lawsuit [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Plaintiffs alleged damages | $ 500,000,000 | |||
Environmental Matters [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Fine paid | $ 350,000 | |||
Minimum [Member] | Apollo Exploration Lawsuit [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Plaintiffs alleged damages | $ 1,100,000,000 | |||
Australian Operations [Member] | Australian Operations Divestiture Dispute [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Placeholder notice of claim period | 1 year | |||
Divestiture of business, tax and other issues contingency amount | $ 200,000,000 |
Capital Stock - Net Income (los
Capital Stock - Net Income (loss) Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||
Basic: | ||||||
Loss from continuing operations | $ (574) | $ (4,126) | $ (1,190) | $ (6,202) | ||
Loss from discontinued operations | (33) | (17) | (33) | (135) | ||
NET LOSS ATTRIBUTABLE TO COMMON STOCK | $ (607) | $ (4,143) | [1] | $ (1,223) | $ (6,337) | [1] |
Loss from continuing operations, shares | 380 | 378 | 379 | 378 | ||
Loss from discontinued operations, shares | 380 | 378 | 379 | 378 | ||
Loss attributable to common stock, shares | 380 | 378 | [1] | 379 | 378 | [1] |
Basic loss from continuing operations, per share | $ (1.51) | $ (10.91) | [1] | $ (3.14) | $ (16.42) | [1] |
Basic loss from discontinued operations, per share | (0.09) | (0.04) | [1] | (0.08) | (0.36) | [1] |
Basic net loss per share | $ (1.60) | $ (10.95) | [1] | $ (3.22) | $ (16.78) | [1] |
Diluted: | ||||||
Loss from continuing operations | $ (574) | $ (4,126) | $ (1,190) | $ (6,202) | ||
Loss from discontinued operations | (33) | (17) | (33) | (135) | ||
Loss attributable to common stock | $ (607) | $ (4,143) | $ (1,223) | $ (6,337) | ||
Loss from continuing operations, shares | 380 | 378 | 379 | 378 | ||
Loss from discontinued operations, shares | 380 | 378 | 379 | 378 | ||
Loss attributable to common stock, shares | 380 | 378 | [1] | 379 | 378 | [1] |
Diluted loss from continuing operations, per share | $ (1.51) | $ (10.91) | [1] | $ (3.14) | $ (16.42) | [1] |
Diluted loss from discontinued operations, per share | (0.09) | (0.04) | [1] | (0.08) | (0.36) | [1] |
Diluted net loss per share | $ (1.60) | $ (10.95) | [1] | $ (3.22) | $ (16.78) | [1] |
[1] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 31 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Equity [Abstract] | |||||
Options and restricted stock, anti-dilutive | 4,700,000 | 10,400,000 | 6,500,000 | 8,900,000 | |
Dividends, Common stock | $ 95 | $ 95 | $ 284 | $ 283 | |
Common stock share purchase, shares | 40,000,000 | 40,000,000 | |||
Common stock share repurchase, shares | 32,200,000 | ||||
Common stock share repurchase, per share | $ 88.96 |
Business Segment Information -
Business Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2016Segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 4 |
Business Segment Information 48
Business Segment Information - Financial Segment Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | [3] | |||
Segment Reporting Information [Line Items] | ||||||||
Oil and Gas Production Revenues | $ 1,439 | $ 1,606 | [1] | $ 3,912 | $ 5,256 | [1] | ||
Operating Income (Loss) | (688) | (4,041) | (914) | (6,171) | ||||
Other Income (Expense): | ||||||||
Gain on divestitures, net | 5 | (5) | [1] | 21 | 204 | [1],[2] | ||
Other | (6) | (75) | (30) | (53) | ||||
General and administrative | (102) | (89) | [1] | (298) | (284) | [1] | ||
Transaction, reorganization, and separation | (12) | 0 | [1] | (36) | (120) | [1] | ||
Financing costs, net | (102) | (160) | [1] | (311) | (401) | [1] | ||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (905) | (4,370) | [1] | (1,568) | (6,825) | [1] | ||
Total Assets | 23,149 | 31,239 | 23,149 | 31,239 | $ 25,500 | |||
Asset impairments | 6,300 | |||||||
Operating Segments [Member] | U.S. [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Oil and Gas Production Revenues | 524 | 639 | 1,453 | 2,066 | ||||
Operating Income (Loss) | (17) | (3,582) | (283) | (5,967) | ||||
Other Income (Expense): | ||||||||
Total Assets | 12,299 | 15,278 | 12,299 | 15,278 | ||||
Asset impairments | 47 | 3,500 | 212 | 5,900 | ||||
Operating Segments [Member] | Canada [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Oil and Gas Production Revenues | 87 | 116 | 243 | 387 | ||||
Operating Income (Loss) | (466) | (292) | (586) | (464) | ||||
Other Income (Expense): | ||||||||
Total Assets | 1,630 | 3,627 | 1,630 | 3,627 | ||||
Asset impairments | 423 | 237 | 433 | 291 | ||||
Operating Segments [Member] | Egypt [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Oil and Gas Production Revenues | 581 | 534 | 1,515 | 1,790 | ||||
Operating Income (Loss) | 263 | 67 | 525 | 569 | ||||
Other Income (Expense): | ||||||||
Total Assets | 5,320 | 7,535 | 5,320 | 7,535 | ||||
Asset impairments | 78 | 91 | ||||||
Operating Segments [Member] | North Sea [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Oil and Gas Production Revenues | 247 | 317 | 701 | 1,013 | ||||
Operating Income (Loss) | (455) | (86) | (557) | (160) | ||||
Other Income (Expense): | ||||||||
Total Assets | 3,851 | 4,359 | 3,851 | 4,359 | ||||
Asset impairments | 481 | 105 | 586 | 372 | ||||
Other International [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Oil and Gas Production Revenues | 0 | 0 | 0 | 0 | ||||
Operating Income (Loss) | (13) | (148) | (13) | (149) | ||||
Other Income (Expense): | ||||||||
Total Assets | $ 49 | 440 | $ 49 | 440 | ||||
Asset impairments | $ 148 | $ 148 | ||||||
[1] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. | |||||||
[2] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. | |||||||
[3] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. |
Supplemental Guarantor Inform49
Supplemental Guarantor Information - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 1999 | |
Condensed Financial Statements, Captions [Line Items] | ||
Equity ownership percentage | 100.00% | |
Notes Due 2029 [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Publicly traded notes | $ 300 | |
Publicly-traded notes maturity date | 2,029 |
Supplemental Guarantor Inform50
Supplemental Guarantor Information - Supplemental Condensed Consolidating Statement of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||
REVENUES AND OTHER: | ||||||
Oil and Gas Production Revenues | $ 1,439 | $ 1,606 | [1] | $ 3,912 | $ 5,256 | [1] |
Equity in net income (loss) of affiliates | 0 | 0 | 0 | 0 | ||
Other | (6) | (75) | [1] | (30) | (53) | [1] |
Gain on divestitures, net | 5 | (5) | [1] | 21 | 204 | [1],[2] |
Total revenues and other | 1,438 | 1,526 | [1] | 3,903 | 5,407 | [1] |
OPERATING EXPENSES: | ||||||
Lease operating expenses | 382 | 450 | [1] | 1,119 | 1,398 | [1] |
Gathering and transportation | 51 | 58 | [1] | 155 | 163 | [1] |
Taxes other than income | 9 | 104 | [1] | 85 | 232 | [1] |
Exploration | 161 | 223 | [1] | 347 | 706 | [1] |
General and administrative | 102 | 89 | [1] | 298 | 284 | [1] |
Depreciation, depletion, and amortization | 648 | 872 | 1,995 | 2,492 | [2] | |
Asset retirement obligation accretion | 40 | 37 | [1] | 116 | 109 | [1],[2] |
Impairments | 836 | 3,903 | [1] | 1,009 | 6,327 | [1],[2] |
Transaction, reorganization, and separation | 12 | 0 | [1] | 36 | 120 | [1] |
Financing costs, net | 102 | 160 | [1] | 311 | 401 | [1] |
Total operating expenses | 2,343 | 5,896 | [1] | 5,471 | 12,232 | [1] |
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (905) | (4,370) | [1] | (1,568) | (6,825) | [1] |
Provision (benefit) for income taxes | (379) | (251) | (471) | (721) | ||
NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST | (526) | (4,119) | [1] | (1,097) | (6,104) | [1] |
Net loss from discontinued operations, net of tax | (33) | (17) | [1] | (33) | (135) | [1] |
NET LOSS INCLUDING NONCONTROLLING INTEREST | (559) | (4,136) | [1] | (1,130) | (6,239) | [1],[2] |
Net income attributable to noncontrolling interest | 48 | 7 | [1] | 93 | 98 | [1] |
NET LOSS ATTRIBUTABLE TO COMMON STOCK | (607) | (4,143) | [1] | (1,223) | (6,337) | [1] |
Reclassifications & Eliminations [Member] | ||||||
REVENUES AND OTHER: | ||||||
Oil and Gas Production Revenues | 0 | 0 | 0 | 0 | ||
Equity in net income (loss) of affiliates | 698 | 2,339 | 902 | 3,818 | ||
Other | 0 | 0 | 0 | 19 | ||
Gain on divestitures, net | 0 | 0 | 0 | 0 | ||
Total revenues and other | 698 | 2,339 | 902 | 3,837 | ||
OPERATING EXPENSES: | ||||||
Lease operating expenses | 0 | 0 | 0 | 0 | ||
Gathering and transportation | 0 | 0 | 0 | 0 | ||
Taxes other than income | 0 | 0 | 0 | 0 | ||
Exploration | 0 | 0 | 0 | 0 | ||
General and administrative | 0 | 0 | 0 | 19 | ||
Depreciation, depletion, and amortization | 0 | 0 | 0 | 0 | ||
Asset retirement obligation accretion | 0 | 0 | 0 | 0 | ||
Impairments | 0 | 0 | 0 | 0 | ||
Transaction, reorganization, and separation | 0 | 0 | 0 | |||
Financing costs, net | 0 | 0 | 0 | 0 | ||
Total operating expenses | 0 | 0 | 0 | 19 | ||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 698 | 2,339 | 902 | 3,818 | ||
Provision (benefit) for income taxes | 0 | 0 | 0 | 0 | ||
NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST | 698 | 2,339 | 902 | 3,818 | ||
Net loss from discontinued operations, net of tax | 0 | 0 | 0 | 0 | ||
NET LOSS INCLUDING NONCONTROLLING INTEREST | 698 | 2,339 | 902 | 3,818 | ||
Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 | ||
NET LOSS ATTRIBUTABLE TO COMMON STOCK | 698 | 2,339 | 902 | 3,818 | ||
Apache Corporation [Member] | ||||||
REVENUES AND OTHER: | ||||||
Oil and Gas Production Revenues | 274 | 344 | 761 | 1,143 | ||
Equity in net income (loss) of affiliates | (493) | (2,247) | (677) | (3,664) | ||
Other | 5 | (62) | 11 | (107) | ||
Gain on divestitures, net | 3 | (7) | 1 | (36) | ||
Total revenues and other | (211) | (1,972) | 96 | (2,664) | ||
OPERATING EXPENSES: | ||||||
Lease operating expenses | 74 | 97 | 218 | 329 | ||
Gathering and transportation | 6 | 9 | 25 | 25 | ||
Taxes other than income | 23 | 30 | 66 | 97 | ||
Exploration | 58 | 139 | 184 | 399 | ||
General and administrative | 87 | 76 | 250 | 214 | ||
Depreciation, depletion, and amortization | 154 | 257 | 469 | 751 | ||
Asset retirement obligation accretion | 5 | 4 | 14 | 11 | ||
Impairments | 0 | 2,177 | 61 | 3,543 | ||
Transaction, reorganization, and separation | 12 | 36 | 120 | |||
Financing costs, net | 63 | 160 | 188 | 375 | ||
Total operating expenses | 482 | 2,949 | 1,511 | 5,864 | ||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (693) | (4,921) | (1,415) | (8,528) | ||
Provision (benefit) for income taxes | (119) | (785) | (225) | (2,370) | ||
NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST | (574) | (4,136) | (1,190) | (6,158) | ||
Net loss from discontinued operations, net of tax | (33) | (7) | (33) | (179) | ||
NET LOSS INCLUDING NONCONTROLLING INTEREST | (607) | (4,143) | (1,223) | (6,337) | ||
Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 | ||
NET LOSS ATTRIBUTABLE TO COMMON STOCK | (607) | (4,143) | (1,223) | (6,337) | ||
Apache Finance Canada [Member] | ||||||
REVENUES AND OTHER: | ||||||
Oil and Gas Production Revenues | 0 | 0 | 0 | 0 | ||
Equity in net income (loss) of affiliates | (205) | (92) | (225) | (154) | ||
Other | 7 | 14 | 28 | 40 | ||
Gain on divestitures, net | 0 | 0 | 0 | 0 | ||
Total revenues and other | (198) | (78) | (197) | (114) | ||
OPERATING EXPENSES: | ||||||
Lease operating expenses | 0 | 0 | 0 | 0 | ||
Gathering and transportation | 0 | 0 | 0 | 0 | ||
Taxes other than income | 0 | 0 | 0 | 0 | ||
Exploration | 0 | 0 | 0 | 0 | ||
General and administrative | 0 | 0 | 0 | 0 | ||
Depreciation, depletion, and amortization | 0 | 0 | 0 | 0 | ||
Asset retirement obligation accretion | 0 | 0 | 0 | 0 | ||
Impairments | 0 | 0 | 0 | 0 | ||
Transaction, reorganization, and separation | 0 | 0 | 0 | |||
Financing costs, net | 6 | 10 | 23 | 31 | ||
Total operating expenses | 6 | 10 | 23 | 31 | ||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (204) | (88) | (220) | (145) | ||
Provision (benefit) for income taxes | 1 | 4 | 5 | 9 | ||
NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST | (205) | (92) | (225) | (154) | ||
Net loss from discontinued operations, net of tax | 0 | 0 | 0 | 0 | ||
NET LOSS INCLUDING NONCONTROLLING INTEREST | (205) | (92) | (225) | (154) | ||
Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 | ||
NET LOSS ATTRIBUTABLE TO COMMON STOCK | (205) | (92) | (225) | (154) | ||
All Other Subsidiaries of Apache Corporation [Member] | ||||||
REVENUES AND OTHER: | ||||||
Oil and Gas Production Revenues | 1,165 | 1,262 | 3,151 | 4,113 | ||
Equity in net income (loss) of affiliates | 0 | 0 | 0 | 0 | ||
Other | (18) | (27) | (69) | (5) | ||
Gain on divestitures, net | 2 | 2 | 20 | 240 | ||
Total revenues and other | 1,149 | 1,237 | 3,102 | 4,348 | ||
OPERATING EXPENSES: | ||||||
Lease operating expenses | 308 | 353 | 901 | 1,069 | ||
Gathering and transportation | 45 | 49 | 130 | 138 | ||
Taxes other than income | (14) | 74 | 19 | 135 | ||
Exploration | 103 | 84 | 163 | 307 | ||
General and administrative | 15 | 13 | 48 | 51 | ||
Depreciation, depletion, and amortization | 494 | 615 | 1,526 | 1,741 | ||
Asset retirement obligation accretion | 35 | 33 | 102 | 98 | ||
Impairments | 836 | 1,726 | 948 | 2,784 | ||
Transaction, reorganization, and separation | 0 | 0 | 0 | |||
Financing costs, net | 33 | (10) | 100 | (5) | ||
Total operating expenses | 1,855 | 2,937 | 3,937 | 6,318 | ||
LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (706) | (1,700) | (835) | (1,970) | ||
Provision (benefit) for income taxes | (261) | 530 | (251) | 1,640 | ||
NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST | (445) | (2,230) | (584) | (3,610) | ||
Net loss from discontinued operations, net of tax | 0 | (10) | 0 | 44 | ||
NET LOSS INCLUDING NONCONTROLLING INTEREST | (445) | (2,240) | (584) | (3,566) | ||
Net income attributable to noncontrolling interest | 48 | 7 | 93 | 98 | ||
NET LOSS ATTRIBUTABLE TO COMMON STOCK | $ (493) | $ (2,247) | $ (677) | $ (3,664) | ||
[1] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. | |||||
[2] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. |
Supplemental Guarantor Inform51
Supplemental Guarantor Information - Supplemental Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||||
Condensed Financial Statements, Captions [Line Items] | |||||||
CASH PROVIDED BY (USED IN) CONTINUING OPERATING ACTIVITIES | $ 1,634 | $ 2,380 | [1] | ||||
CASH PROVIDED BY DISCONTINUED OPERATIONS | 0 | 113 | [1] | ||||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 1,634 | 2,493 | [1] | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Additions to oil and gas property | (1,281) | (3,562) | [1] | ||||
Leasehold and property acquisitions | $ (51) | $ (126) | (169) | (254) | [1] | ||
Additions to gas gathering, transmission, and processing facilities | (33) | (113) | [1] | ||||
Proceeds from sale of Kitimat LNG project | 0 | 854 | [1] | ||||
Proceeds from sale of other oil and gas properties | 74 | 148 | [1] | ||||
Investment in subsidiaries, net | 0 | 0 | |||||
Other | 47 | (99) | |||||
NET CASH USED IN CONTINUING INVESTING ACTIVITIES | (1,362) | (3,026) | [1] | ||||
NET CASH PROVIDED BY DISCONTINUED OPERATIONS | 0 | 4,372 | [1] | ||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (1,362) | 1,346 | [1] | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Commercial paper and bank credit facilities, net | 0 | (1,570) | [1] | ||||
Intercompany borrowings | 0 | 0 | |||||
Payment of fixed-rate debt | (1) | (939) | [1] | ||||
Distributions to noncontrolling interest | (215) | (97) | [1] | ||||
Common stock activity, net | 0 | ||||||
Dividends paid | (284) | (283) | [1] | ||||
Other | (9) | 26 | [1] | ||||
NET CASH PROVIDED BY (USED IN) CONTINUING FINANCING ACTIVITIES | (2,863) | ||||||
NET CASH USED IN DISCONTINUED OPERATIONS | 0 | ||||||
NET CASH USED IN FINANCING ACTIVITIES | (509) | (2,863) | [1] | ||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (237) | 976 | [1] | ||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 1,467 | [2] | 679 | [1] | |||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 1,230 | 1,655 | [1] | 1,230 | 1,655 | [1] | |
Reclassifications & Eliminations [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
CASH PROVIDED BY (USED IN) CONTINUING OPERATING ACTIVITIES | 0 | ||||||
CASH PROVIDED BY DISCONTINUED OPERATIONS | 0 | ||||||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 0 | 0 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Additions to oil and gas property | 0 | 0 | |||||
Leasehold and property acquisitions | 0 | 0 | |||||
Additions to gas gathering, transmission, and processing facilities | 0 | 0 | |||||
Proceeds from sale of Kitimat LNG project | 0 | ||||||
Proceeds from sale of other oil and gas properties | 0 | 0 | |||||
Investment in subsidiaries, net | (824) | (274) | |||||
Other | 0 | 0 | |||||
NET CASH USED IN CONTINUING INVESTING ACTIVITIES | (274) | ||||||
NET CASH PROVIDED BY DISCONTINUED OPERATIONS | 0 | ||||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (824) | (274) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Commercial paper and bank credit facilities, net | 0 | ||||||
Intercompany borrowings | 824 | 274 | |||||
Payment of fixed-rate debt | 0 | 0 | |||||
Distributions to noncontrolling interest | 0 | 0 | |||||
Common stock activity, net | 0 | ||||||
Dividends paid | 0 | 0 | |||||
Other | 0 | 0 | |||||
NET CASH PROVIDED BY (USED IN) CONTINUING FINANCING ACTIVITIES | 274 | ||||||
NET CASH USED IN DISCONTINUED OPERATIONS | 0 | ||||||
NET CASH USED IN FINANCING ACTIVITIES | 824 | 274 | |||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 0 | 0 | |||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 0 | 0 | |||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 0 | 0 | 0 | 0 | |||
Apache Corporation [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
CASH PROVIDED BY (USED IN) CONTINUING OPERATING ACTIVITIES | (135) | ||||||
CASH PROVIDED BY DISCONTINUED OPERATIONS | 0 | ||||||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 269 | (135) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Additions to oil and gas property | (929) | (1,320) | |||||
Leasehold and property acquisitions | (98) | (243) | |||||
Additions to gas gathering, transmission, and processing facilities | (32) | (25) | |||||
Proceeds from sale of Kitimat LNG project | 0 | ||||||
Proceeds from sale of other oil and gas properties | 54 | 8 | |||||
Investment in subsidiaries, net | 824 | 274 | |||||
Other | (7) | (16) | |||||
NET CASH USED IN CONTINUING INVESTING ACTIVITIES | (1,322) | ||||||
NET CASH PROVIDED BY DISCONTINUED OPERATIONS | 0 | ||||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (188) | (1,322) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Commercial paper and bank credit facilities, net | (1,570) | ||||||
Intercompany borrowings | 0 | 4,431 | |||||
Payment of fixed-rate debt | 0 | (939) | |||||
Distributions to noncontrolling interest | 0 | 0 | |||||
Common stock activity, net | 0 | ||||||
Dividends paid | (284) | (283) | |||||
Other | 2 | 2 | |||||
NET CASH PROVIDED BY (USED IN) CONTINUING FINANCING ACTIVITIES | 1,641 | ||||||
NET CASH USED IN DISCONTINUED OPERATIONS | 0 | ||||||
NET CASH USED IN FINANCING ACTIVITIES | (282) | 1,641 | |||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (201) | 184 | |||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 378 | 267 | |||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 177 | 451 | 177 | 451 | |||
Apache Finance Canada [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
CASH PROVIDED BY (USED IN) CONTINUING OPERATING ACTIVITIES | (25) | ||||||
CASH PROVIDED BY DISCONTINUED OPERATIONS | 0 | ||||||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (1) | (25) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Additions to oil and gas property | 0 | 0 | |||||
Leasehold and property acquisitions | 0 | 0 | |||||
Additions to gas gathering, transmission, and processing facilities | 0 | 0 | |||||
Proceeds from sale of Kitimat LNG project | 0 | ||||||
Proceeds from sale of other oil and gas properties | 0 | 0 | |||||
Investment in subsidiaries, net | 0 | 0 | |||||
Other | 0 | 0 | |||||
NET CASH USED IN CONTINUING INVESTING ACTIVITIES | 0 | ||||||
NET CASH PROVIDED BY DISCONTINUED OPERATIONS | 0 | ||||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 0 | 0 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Commercial paper and bank credit facilities, net | 0 | ||||||
Intercompany borrowings | (23) | (10) | |||||
Payment of fixed-rate debt | 0 | 0 | |||||
Distributions to noncontrolling interest | 0 | 0 | |||||
Common stock activity, net | 24 | ||||||
Dividends paid | 0 | 0 | |||||
Other | 0 | 35 | |||||
NET CASH PROVIDED BY (USED IN) CONTINUING FINANCING ACTIVITIES | 25 | ||||||
NET CASH USED IN DISCONTINUED OPERATIONS | 0 | ||||||
NET CASH USED IN FINANCING ACTIVITIES | 1 | 25 | |||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 0 | 0 | |||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 0 | 0 | |||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 0 | 0 | 0 | 0 | |||
All Other Subsidiaries of Apache Corporation [Member] | |||||||
Condensed Financial Statements, Captions [Line Items] | |||||||
CASH PROVIDED BY (USED IN) CONTINUING OPERATING ACTIVITIES | 2,540 | ||||||
CASH PROVIDED BY DISCONTINUED OPERATIONS | 113 | ||||||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 1,366 | 2,653 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Additions to oil and gas property | (352) | (2,242) | |||||
Leasehold and property acquisitions | (71) | (11) | |||||
Additions to gas gathering, transmission, and processing facilities | (1) | (88) | |||||
Proceeds from sale of Kitimat LNG project | 854 | ||||||
Proceeds from sale of other oil and gas properties | 20 | 140 | |||||
Investment in subsidiaries, net | 0 | 0 | |||||
Other | 54 | (83) | |||||
NET CASH USED IN CONTINUING INVESTING ACTIVITIES | (1,430) | ||||||
NET CASH PROVIDED BY DISCONTINUED OPERATIONS | 4,372 | ||||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (350) | 2,942 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Commercial paper and bank credit facilities, net | 0 | ||||||
Intercompany borrowings | (801) | (4,695) | |||||
Payment of fixed-rate debt | (1) | 0 | |||||
Distributions to noncontrolling interest | (215) | (97) | |||||
Common stock activity, net | (24) | ||||||
Dividends paid | 0 | 0 | |||||
Other | (11) | (11) | |||||
NET CASH PROVIDED BY (USED IN) CONTINUING FINANCING ACTIVITIES | (4,803) | ||||||
NET CASH USED IN DISCONTINUED OPERATIONS | 0 | ||||||
NET CASH USED IN FINANCING ACTIVITIES | (1,052) | (4,803) | |||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (36) | 792 | |||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 1,089 | 412 | |||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 1,053 | $ 1,204 | $ 1,053 | $ 1,204 | |||
[1] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. | ||||||
[2] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. |
Supplemental Guarantor Inform52
Supplemental Guarantor Information - Supplemental Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ 1,230 | $ 1,467 | [1] | $ 1,655 | [2] | $ 679 | [2] |
Receivables, net of allowance | 1,064 | 1,253 | [1] | ||||
Inventories | 513 | 570 | [1] | ||||
Drilling advances | 209 | 172 | [1] | ||||
Deferred tax asset | 0 | ||||||
Prepaid assets and other | 256 | 290 | [1] | ||||
Intercompany receivable | 0 | 0 | |||||
Total current assets | 3,272 | 3,752 | [1] | ||||
PROPERTY AND EQUIPMENT, NET | 19,462 | 20,838 | [1] | ||||
OTHER ASSETS: | |||||||
Intercompany receivable | 0 | 0 | |||||
Equity in affiliates | 0 | 0 | |||||
Deferred charges and other | 415 | 910 | [1] | ||||
Total assets | 23,149 | 25,500 | [1] | 31,239 | |||
CURRENT LIABILITIES: | |||||||
Accounts payable | 557 | 618 | [1] | ||||
Other current liabilities | 1,071 | 1,223 | [1] | ||||
Intercompany payable | 0 | 0 | |||||
Total current liabilities | 1,628 | 1,841 | [1] | ||||
LONG-TERM DEBT | 8,721 | 8,716 | [1] | ||||
DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES: | |||||||
Intercompany payable | 0 | 0 | |||||
Income taxes | 1,783 | 2,529 | [1] | ||||
Asset retirement obligation | 2,742 | 2,562 | [1] | ||||
Other | 326 | 362 | [1] | ||||
Total deferred credits and other noncurrent liabilities | 4,851 | 5,453 | [1] | ||||
COMMITMENTS AND CONTINGENCIES (Note 9) | |||||||
APACHE SHAREHOLDERS’ EQUITY | 6,469 | 7,888 | [1] | ||||
Noncontrolling interest | 1,480 | 1,602 | [1] | ||||
TOTAL EQUITY | 7,949 | 9,490 | [1] | 13,983 | 20,541 | ||
TOTAL LIABILITIES AND EQUITY | 23,149 | 25,500 | [1] | ||||
Reclassifications & Eliminations [Member] | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |||
Receivables, net of allowance | 0 | 0 | |||||
Inventories | 0 | 0 | |||||
Drilling advances | 0 | 0 | |||||
Deferred tax asset | 0 | ||||||
Prepaid assets and other | 0 | 0 | |||||
Intercompany receivable | (5,418) | (5,212) | |||||
Total current assets | (5,418) | (5,212) | |||||
PROPERTY AND EQUIPMENT, NET | 0 | 0 | |||||
OTHER ASSETS: | |||||||
Intercompany receivable | (12,034) | (10,744) | |||||
Equity in affiliates | (14,829) | (15,731) | |||||
Deferred charges and other | (1,000) | (1,000) | |||||
Total assets | (33,281) | (32,687) | |||||
CURRENT LIABILITIES: | |||||||
Accounts payable | 0 | 0 | |||||
Other current liabilities | 0 | 0 | |||||
Intercompany payable | (5,418) | (5,212) | |||||
Total current liabilities | (5,418) | (5,212) | |||||
LONG-TERM DEBT | 0 | 0 | |||||
DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES: | |||||||
Intercompany payable | (12,034) | (10,744) | |||||
Income taxes | 0 | 0 | |||||
Asset retirement obligation | 0 | 0 | |||||
Other | (1,000) | (1,000) | |||||
Total deferred credits and other noncurrent liabilities | (13,034) | (11,744) | |||||
COMMITMENTS AND CONTINGENCIES (Note 9) | |||||||
APACHE SHAREHOLDERS’ EQUITY | (14,829) | (15,731) | |||||
Noncontrolling interest | 0 | 0 | |||||
TOTAL EQUITY | (14,829) | (15,731) | |||||
TOTAL LIABILITIES AND EQUITY | (33,281) | (32,687) | |||||
Apache Corporation [Member] | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | 177 | 378 | 451 | 267 | |||
Receivables, net of allowance | 311 | 314 | |||||
Inventories | 32 | 34 | |||||
Drilling advances | 5 | 16 | |||||
Deferred tax asset | (28) | ||||||
Prepaid assets and other | 191 | 102 | |||||
Intercompany receivable | 5,418 | 5,212 | |||||
Total current assets | 6,106 | 6,056 | |||||
PROPERTY AND EQUIPMENT, NET | 7,069 | 6,546 | |||||
OTHER ASSETS: | |||||||
Intercompany receivable | 0 | 0 | |||||
Equity in affiliates | 15,415 | 16,092 | |||||
Deferred charges and other | 95 | 96 | |||||
Total assets | 28,685 | 28,790 | |||||
CURRENT LIABILITIES: | |||||||
Accounts payable | 338 | 409 | |||||
Other current liabilities | 468 | 539 | |||||
Intercompany payable | 0 | 0 | |||||
Total current liabilities | 806 | 948 | |||||
LONG-TERM DEBT | 8,424 | 8,418 | |||||
DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES: | |||||||
Intercompany payable | 12,034 | 10,744 | |||||
Income taxes | (230) | (412) | |||||
Asset retirement obligation | 280 | 271 | |||||
Other | 902 | 933 | |||||
Total deferred credits and other noncurrent liabilities | 12,986 | 11,536 | |||||
COMMITMENTS AND CONTINGENCIES (Note 9) | |||||||
APACHE SHAREHOLDERS’ EQUITY | 6,469 | 7,888 | |||||
Noncontrolling interest | 0 | 0 | |||||
TOTAL EQUITY | 6,469 | 7,888 | |||||
TOTAL LIABILITIES AND EQUITY | 28,685 | 28,790 | |||||
Apache Finance Canada [Member] | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |||
Receivables, net of allowance | 0 | 0 | |||||
Inventories | 0 | 0 | |||||
Drilling advances | 0 | 0 | |||||
Deferred tax asset | 0 | ||||||
Prepaid assets and other | 0 | 0 | |||||
Intercompany receivable | 0 | 0 | |||||
Total current assets | 0 | 0 | |||||
PROPERTY AND EQUIPMENT, NET | 0 | 0 | |||||
OTHER ASSETS: | |||||||
Intercompany receivable | 0 | 0 | |||||
Equity in affiliates | (1,289) | (807) | |||||
Deferred charges and other | 1,000 | 1,001 | |||||
Total assets | (289) | 194 | |||||
CURRENT LIABILITIES: | |||||||
Accounts payable | (13) | 0 | |||||
Other current liabilities | 8 | 3 | |||||
Intercompany payable | 0 | 0 | |||||
Total current liabilities | (5) | 3 | |||||
LONG-TERM DEBT | 297 | 298 | |||||
DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES: | |||||||
Intercompany payable | 0 | 0 | |||||
Income taxes | 5 | 4 | |||||
Asset retirement obligation | 0 | 0 | |||||
Other | 0 | 250 | |||||
Total deferred credits and other noncurrent liabilities | 5 | 254 | |||||
COMMITMENTS AND CONTINGENCIES (Note 9) | |||||||
APACHE SHAREHOLDERS’ EQUITY | (586) | (361) | |||||
Noncontrolling interest | 0 | 0 | |||||
TOTAL EQUITY | (586) | (361) | |||||
TOTAL LIABILITIES AND EQUITY | (289) | 194 | |||||
All Other Subsidiaries of Apache Corporation [Member] | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | 1,053 | 1,089 | $ 1,204 | $ 412 | |||
Receivables, net of allowance | 753 | 939 | |||||
Inventories | 481 | 536 | |||||
Drilling advances | 204 | 156 | |||||
Deferred tax asset | 28 | ||||||
Prepaid assets and other | 65 | 188 | |||||
Intercompany receivable | 0 | 0 | |||||
Total current assets | 2,584 | 2,908 | |||||
PROPERTY AND EQUIPMENT, NET | 12,393 | 14,292 | |||||
OTHER ASSETS: | |||||||
Intercompany receivable | 12,034 | 10,744 | |||||
Equity in affiliates | 703 | 446 | |||||
Deferred charges and other | 320 | 813 | |||||
Total assets | 28,034 | 29,203 | |||||
CURRENT LIABILITIES: | |||||||
Accounts payable | 232 | 209 | |||||
Other current liabilities | 595 | 681 | |||||
Intercompany payable | 5,418 | 5,212 | |||||
Total current liabilities | 6,245 | 6,102 | |||||
LONG-TERM DEBT | 0 | 0 | |||||
DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES: | |||||||
Intercompany payable | 0 | 0 | |||||
Income taxes | 2,008 | 2,937 | |||||
Asset retirement obligation | 2,462 | 2,291 | |||||
Other | 424 | 179 | |||||
Total deferred credits and other noncurrent liabilities | 4,894 | 5,407 | |||||
COMMITMENTS AND CONTINGENCIES (Note 9) | |||||||
APACHE SHAREHOLDERS’ EQUITY | 15,415 | 16,092 | |||||
Noncontrolling interest | 1,480 | 1,602 | |||||
TOTAL EQUITY | 16,895 | 17,694 | |||||
TOTAL LIABILITIES AND EQUITY | $ 28,034 | $ 29,203 | |||||
[1] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. | ||||||
[2] | Financial information for 2015 has been recast to reflect retrospective application of the successful efforts method of accounting. See Note 1. |