Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 29, 2021 | Jun. 30, 2020 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-4300 | ||
Entity Registrant Name | APACHE CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 41-0747868 | ||
Entity Address, Address Line One | One Post Oak Central, 2000 Post Oak Boulevard, Suite 100 | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77056-4400 | ||
City Area Code | 713 | ||
Local Phone Number | 296-6000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5,095,687,766 | ||
Entity Common Stock, Shares Outstanding | 377,860,971 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement relating to the registrant’s 2021 annual meeting of stockholders are incorporated by reference in Part II and Part III of this Annual Report on Form 10-K. On January 4, 2021, the registrant (Apache) announced that its Board of Directors authorized Apache to proceed with the implementation of a holding company reorganization, in connection with which, Apache will create APA Corporation, a new holding company (APA). Upon completion of the holding company reorganization, Apache will be a wholly-owned subsidiary of APA, APA will be | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000006769 | ||
Nasdaq Global Select Market | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.625 par value | ||
Trading Symbol | APA | ||
Security Exchange Name | NASDAQ |
STATEMENT OF CONSOLIDATED OPERA
STATEMENT OF CONSOLIDATED OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
REVENUES AND OTHER: | |||
Derivative instrument losses, net | $ (223) | $ (35) | $ (17) |
Gain on divestitures, net | 32 | 43 | 23 |
Other | 64 | 54 | 53 |
Total revenues and other | 4,308 | 6,553 | 7,764 |
OPERATING EXPENSES: | |||
Lease operating expenses | 1,127 | 1,447 | 1,439 |
Taxes other than income | 123 | 207 | 215 |
Exploration | 274 | 805 | 503 |
General and administrative | 290 | 406 | 431 |
Transaction, reorganization, and separation | 54 | 50 | 28 |
Depreciation, depletion, and amortization | 1,772 | 2,680 | 2,405 |
Asset retirement obligation accretion | 109 | 107 | 108 |
Impairments | 4,501 | 2,949 | 511 |
Financing costs, net | 267 | 462 | 478 |
Total operating expenses | 9,148 | 9,561 | 6,806 |
NET INCOME (LOSS) BEFORE INCOME TAXES | (4,840) | (3,008) | 958 |
Current income tax provision | 176 | 660 | 894 |
Deferred income tax provision (benefit) | (112) | 14 | (222) |
NET INCOME (LOSS) INCLUDING NONCONTROLLING INTERESTS | (4,904) | (3,682) | 286 |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK | $ (4,860) | $ (3,553) | $ 40 |
NET INCOME (LOSS) PER COMMON SHARE: | |||
Basic (in USD per share) | $ (12.86) | $ (9.43) | $ 0.11 |
Diluted (in USD per share) | $ (12.86) | $ (9.43) | $ 0.11 |
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | |||
Basic (in shares) | 378 | 377 | 382 |
Diluted (in shares) | 378 | 377 | 384 |
Noncontrolling Interest, Egypt | |||
OPERATING EXPENSES: | |||
Net income (loss) attributable to noncontrolling interest | $ (121) | $ 167 | $ 245 |
Noncontrolling Interest, Altus | |||
OPERATING EXPENSES: | |||
Net income (loss) attributable to noncontrolling interest | 1 | (334) | 1 |
Oil and gas, excluding purchased | |||
REVENUES AND OTHER: | |||
Oil and gas production revenues | 4,037 | 6,315 | 7,348 |
OPERATING EXPENSES: | |||
Cost of goods and services sold | 274 | 306 | 348 |
Oil and gas, purchased | |||
REVENUES AND OTHER: | |||
Oil and gas production revenues | 398 | 176 | 357 |
OPERATING EXPENSES: | |||
Cost of goods and services sold | 357 | 142 | 340 |
Oil and gas | |||
REVENUES AND OTHER: | |||
Oil and gas production revenues | $ 4,435 | $ 6,491 | $ 7,705 |
STATEMENT OF CONSOLIDATED COMPR
STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net income (loss) including noncontrolling interests | $ (4,904) | $ (3,682) | $ 286 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | |||
Pension and postretirement benefit plan | (2) | 13 | 0 |
Share of equity method interests other comprehensive loss | 0 | (1) | 0 |
Other comprehensive income, net of tax | (2) | 12 | 0 |
COMPREHENSIVE INCOME (LOSS) INCLUDING NONCONTROLLING INTERESTS | (4,906) | (3,670) | 286 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK | (4,862) | (3,541) | 40 |
Redeemable Noncontrolling Interest - Altus Preferred Unit Limited Partners | |||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | |||
Comprehensive income (loss) attributable to noncontrolling interest | 76 | 38 | 0 |
Noncontrolling Interest, Egypt | |||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | |||
Comprehensive income (loss) attributable to noncontrolling interest | (121) | 167 | 245 |
Noncontrolling Interest, Altus | |||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX: | |||
Comprehensive income (loss) attributable to noncontrolling interest | $ 1 | $ (334) | $ 1 |
STATEMENT OF CONSOLIDATED CASH
STATEMENT OF CONSOLIDATED CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) including noncontrolling interests | $ (4,904) | $ (3,682) | $ 286 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Unrealized derivative instrument losses (gains), net | 87 | 44 | (103) |
Gain on divestitures, net | (32) | (43) | (23) |
Exploratory dry hole expense and unproved leasehold impairments | 211 | 676 | 351 |
Depreciation, depletion, and amortization | 1,772 | 2,680 | 2,405 |
Asset retirement obligation accretion | 109 | 107 | 108 |
Impairments | 4,501 | 2,949 | 511 |
Provision for (benefit from) deferred income taxes | (112) | 14 | (222) |
Loss (gain) from extinguishment of debt | (160) | 75 | 94 |
Other | 102 | 50 | 125 |
Changes in operating assets and liabilities: | |||
Receivables | 149 | 133 | 150 |
Inventories | 19 | (41) | (6) |
Drilling advances | (21) | (21) | (11) |
Deferred charges and other | (21) | 51 | 83 |
Accounts payable | (167) | (5) | 77 |
Accrued expenses | (163) | (84) | 5 |
Deferred credits and noncurrent liabilities | 18 | (36) | (53) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 1,388 | 2,867 | 3,777 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Additions to oil and gas property | (1,270) | (2,594) | (3,190) |
Additions to Altus gathering, processing, and transmission (GPT) facilities | (28) | (327) | (581) |
Leasehold and property acquisitions | (4) | (40) | (133) |
Contributions to Altus equity method interests | (327) | (501) | 0 |
Acquisition of Altus equity method interests | 0 | (671) | (91) |
Proceeds from asset divestitures | 166 | 718 | 138 |
Other | (3) | (31) | (87) |
NET CASH USED IN INVESTING ACTIVITIES | (1,466) | (3,446) | (3,944) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from Apache credit facility, net | 150 | 0 | 0 |
Proceeds from Altus credit facility | 228 | 396 | 0 |
Fixed rate debt borrowings | 1,238 | 989 | 992 |
Payments on fixed-rate debt | (1,243) | (1,150) | (1,370) |
Proceeds from Altus transaction | 0 | 0 | 628 |
Distributions to noncontrolling interest - Egypt | (91) | (305) | (345) |
Distributions to Altus Preferred Unit limited partners | (23) | 0 | 0 |
Redeemable noncontrolling interest - Altus Preferred Unit limited partners | 0 | 611 | 0 |
Dividends paid | (123) | (376) | (382) |
Treasury stock activity, net | 1 | 2 | (305) |
Other | (44) | (55) | (5) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 93 | 112 | (787) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 15 | (467) | (954) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 247 | 714 | 1,668 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 262 | 247 | 714 |
SUPPLEMENTARY CASH FLOW DATA: | |||
Interest paid, net of capitalized interest | 419 | 394 | 402 |
Income taxes paid, net of refunds | $ 212 | $ 649 | $ 867 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents ($24 and $6 related to Altus VIE) | $ 262 | $ 247 |
Receivables, net of allowance of $95 and $88 | 908 | 1,062 |
Other current assets (Note 5) ($5 and $5 related to Altus VIE) | 676 | 652 |
Total current assets | 1,846 | 1,961 |
Oil and gas, on the basis of successful efforts accounting: | ||
Proved properties | 41,217 | 40,540 |
Unproved properties and properties under development | 602 | 666 |
Gathering, processing, and transmission facilities ($206 and $203 related to Altus VIE) | 670 | 799 |
Other ($3 and $4 related to Altus VIE) | 1,140 | 1,140 |
Property and equipment, gross | 43,629 | 43,145 |
Less: Accumulated depreciation, depletion, and amortization ($13 and $1 related to Altus VIE) | (34,810) | (28,987) |
Property and equipment, net | 8,819 | 14,158 |
OTHER ASSETS: | ||
Equity method interests (Note 6) ($1,555 and $1,258 related to Altus VIE) | 1,555 | 1,258 |
Deferred charges and other ($5 and $4 related to Altus VIE) | 526 | 730 |
Total assets | 12,746 | 18,107 |
CURRENT LIABILITIES: | ||
Accounts payable | 444 | 695 |
Current debt (nil and $10 related to Altus VIE) | 2 | 11 |
Other current liabilities (Note 7) ($4 and $21 related to Altus VIE) | 862 | 1,149 |
Total current liabilities | 1,308 | 1,855 |
LONG-TERM DEBT (Note 9) ($624 and $396 related to Altus VIE) | 8,770 | 8,555 |
DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES: | ||
Income taxes | 215 | 346 |
Asset retirement obligation ($64 and $60 related to Altus VIE) | 1,888 | 1,811 |
Other ($144 and $107 related to Altus VIE) | 602 | 520 |
Total deferred credits and other noncurrent liabilities | 2,705 | 2,677 |
COMMITMENTS AND CONTINGENCIES (Note 11) | ||
REDEEMABLE NONCONTROLLING INTEREST - ALTUS PREFERRED UNIT LIMITED PARTNERS (Note 13) | 608 | 555 |
EQUITY (DEFICIT): | ||
Common stock, $0.625 par, 860,000,000 shares authorized, 418,429,375 and 417,026,863 shares issued, respectively | 262 | 261 |
Paid-in capital | 11,735 | 11,769 |
Accumulated deficit | (10,461) | (5,601) |
Treasury stock, at cost, 40,946,745 and 40,964,193 shares, respectively | (3,189) | (3,190) |
Accumulated other comprehensive income | 14 | 16 |
APACHE SHAREHOLDERS’ EQUITY (DEFICIT) | (1,639) | 3,255 |
TOTAL EQUITY (DEFICIT) | (645) | 4,465 |
TOTAL LIABILITIES AND EQUITY | $ 12,746 | $ 18,107 |
Common stock, par value (in USD per share) | $ 0.625 | $ 0.625 |
Common stock, shares authorized (in shares) | 860,000,000 | 860,000,000 |
Common stock, shares issued (in shares) | 418,429,375 | 417,026,863 |
Treasury stock, shares (in shares) | 40,946,745 | 40,964,193 |
Variable Interest Entity, Primary Beneficiary | ||
CURRENT ASSETS: | ||
Cash and cash equivalents ($24 and $6 related to Altus VIE) | $ 24 | $ 6 |
Receivables, net of allowance of $95 and $88 | 95 | 88 |
Other current assets (Note 5) ($5 and $5 related to Altus VIE) | 5 | 5 |
Oil and gas, on the basis of successful efforts accounting: | ||
Gathering, processing, and transmission facilities ($206 and $203 related to Altus VIE) | 206 | 203 |
Other ($3 and $4 related to Altus VIE) | 3 | 4 |
Less: Accumulated depreciation, depletion, and amortization ($13 and $1 related to Altus VIE) | (13) | (1) |
OTHER ASSETS: | ||
Equity method interests (Note 6) ($1,555 and $1,258 related to Altus VIE) | 1,555 | 1,258 |
Deferred charges and other ($5 and $4 related to Altus VIE) | 5 | 4 |
CURRENT LIABILITIES: | ||
Current debt (nil and $10 related to Altus VIE) | 0 | 10 |
Other current liabilities (Note 7) ($4 and $21 related to Altus VIE) | 4 | 21 |
LONG-TERM DEBT (Note 9) ($624 and $396 related to Altus VIE) | 624 | 396 |
DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES: | ||
Asset retirement obligation ($64 and $60 related to Altus VIE) | 64 | 60 |
Other ($144 and $107 related to Altus VIE) | 144 | 107 |
Noncontrolling Interest, Egypt | ||
EQUITY (DEFICIT): | ||
Noncontrolling interest | 925 | 1,137 |
Noncontrolling Interest, Altus | ||
EQUITY (DEFICIT): | ||
Noncontrolling interest | $ 69 | $ 73 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and cash equivalent | $ 262 | $ 247 |
Receivables net of allowance | 908 | 1,062 |
Other current assets (Note 5) ($5 and $5 related to Altus VIE) | 676 | 652 |
Gathering, processing, and transmission facilities ($206 and $203 related to Altus VIE) | 670 | 799 |
Other property and equipment | 1,140 | 1,140 |
Accumulated depreciation | 34,810 | 28,987 |
Equity method interests | 1,555 | 1,258 |
Deferred charges and other | 526 | 730 |
Current debt | 2 | 11 |
Other current liabilities | 862 | 1,149 |
Long-term debt | 8,770 | 8,555 |
Asset retirement obligation | 1,888 | 1,811 |
Other noncurrent liabilities | $ 602 | $ 520 |
Common stock, par value (in USD per share) | $ 0.625 | $ 0.625 |
Common stock, shares authorized (in shares) | 860,000,000 | 860,000,000 |
Common stock, shares issued (in shares) | 418,429,375 | 417,026,863 |
Treasury stock, shares (in shares) | 40,946,745 | 40,964,193 |
Variable Interest Entity, Primary Beneficiary | ||
Cash and cash equivalent | $ 24 | $ 6 |
Receivables net of allowance | 95 | 88 |
Other current assets (Note 5) ($5 and $5 related to Altus VIE) | 5 | 5 |
Gathering, processing, and transmission facilities ($206 and $203 related to Altus VIE) | 206 | 203 |
Other property and equipment | 3 | 4 |
Accumulated depreciation | 13 | 1 |
Equity method interests | 1,555 | 1,258 |
Deferred charges and other | 5 | 4 |
Current debt | 0 | 10 |
Other current liabilities | 4 | 21 |
Long-term debt | 624 | 396 |
Asset retirement obligation | 64 | 60 |
Other noncurrent liabilities | $ 144 | $ 107 |
STATEMENT OF CONSOLIDATED CHANG
STATEMENT OF CONSOLIDATED CHANGES IN EQUITY (DEFICIT) AND NONCONTROLLING INTEREST - USD ($) $ in Millions | Total | Common Stock | Paid-In Capital | Accumulated Deficit | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | APACHE SHAREHOLDERS’ EQUITY (DEFICIT) | Noncontrolling Interests | Noncontrolling Interest, Egypt | Noncontrolling Interest, Altus | Redeemable Noncontrolling Interest - Altus Preferred Unit Limited Partners |
Beginning balance at Dec. 31, 2017 | $ 0 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Distributions to Altus Preferred Unit limited partners | $ (345) | $ (345) | |||||||||
Ending balance at Dec. 31, 2018 | 0 | ||||||||||
Beginning balance at Dec. 31, 2017 | 8,791 | $ 259 | $ 12,128 | $ (2,088) | $ (2,887) | $ 4 | $ 7,416 | 1,375 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net loss attributable to common stock | 40 | 40 | 40 | ||||||||
Net income attributable to noncontrolling interest | $ 245 | $ 1 | |||||||||
Distributions to noncontrolling interest | (345) | (345) | |||||||||
Pension & Postretirement benefit plans, net of tax | 0 | ||||||||||
Common dividends | (380) | (380) | (380) | ||||||||
Common stock activity, net | (28) | 1 | (29) | (28) | |||||||
Treasury stock activity, net | (305) | (305) | (305) | ||||||||
Proceeds from Altus transaction | 628 | 222 | 222 | 406 | |||||||
Compensation expense | 160 | 160 | 160 | ||||||||
Other | 5 | 5 | 5 | ||||||||
Ending balance at Dec. 31, 2018 | 8,812 | 260 | 12,106 | (2,048) | (3,192) | 4 | 7,130 | 1,682 | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Issuance of Altus Preferred Units | 517 | ||||||||||
Net income attributable to Altus Preferred Unit limited partners | 38 | ||||||||||
Distributions to Altus Preferred Unit limited partners | (305) | (305) | |||||||||
Ending balance at Dec. 31, 2019 | 555 | 555 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net loss attributable to common stock | (3,553) | (3,553) | (3,553) | ||||||||
Net income attributable to noncontrolling interest | 167 | (334) | |||||||||
Distributions to noncontrolling interest | (305) | (305) | |||||||||
Pension & Postretirement benefit plans, net of tax | 13 | 13 | 13 | ||||||||
Common dividends | (376) | (376) | (376) | ||||||||
Common stock activity, net | (21) | 1 | (22) | (21) | |||||||
Compensation expense | 61 | 61 | 61 | ||||||||
Other | 1 | 2 | (1) | 1 | |||||||
Ending balance at Dec. 31, 2019 | 4,465 | 261 | 11,769 | (5,601) | (3,190) | 16 | 3,255 | 1,210 | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Net income attributable to Altus Preferred Unit limited partners | 76 | ||||||||||
Distributions to Altus Preferred Unit limited partners | (91) | (5) | (23) | ||||||||
Ending balance at Dec. 31, 2020 | 608 | 608 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net loss attributable to common stock | (4,860) | (4,860) | (4,860) | ||||||||
Net income attributable to noncontrolling interest | (121) | 1 | |||||||||
Distributions to noncontrolling interest | $ (91) | $ (5) | $ (23) | ||||||||
Pension & Postretirement benefit plans, net of tax | (2) | (2) | (2) | ||||||||
Common dividends | (38) | (38) | (38) | ||||||||
Common stock activity, net | (17) | 1 | (18) | (17) | |||||||
Compensation expense | 23 | 23 | 23 | ||||||||
Other | 0 | (1) | 1 | 0 | |||||||
Ending balance at Dec. 31, 2020 | $ (645) | $ 262 | $ 11,735 | $ (10,461) | $ (3,189) | $ 14 | $ (1,639) | $ 994 |
STATEMENT OF CONSOLIDATED CHA_2
STATEMENT OF CONSOLIDATED CHANGES IN EQUITY (DEFICIT) AND NONCONTROLLING INTEREST (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock, dividends, per share (in USD per share) | $ 0.10 | $ 1 | $ 1 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Apache Corporation (Apache or the Company) is an independent energy company that explores for, develops, and produces natural gas, crude oil, and natural gas liquids. The Company’s upstream business has exploration and production operations in three geographic areas: the United States (U.S.), Egypt, and offshore the U.K. in the North Sea (North Sea). Apache also has active exploration and planned appraisal operations ongoing in Suriname, as well as interests in other international locations that may, over time, result in reportable discoveries and development opportunities. Apache’s midstream business is operated by Altus Midstream Company (Nasdaq: ALTM) through its subsidiary Altus Midstream LP (collectively, Altus). Altus owns, develops, and operates a midstream energy asset network in the Permian Basin of West Texas. On January 4, 2021, Apache announced that its Board of Directors authorized the Company to proceed with the implementation of a holding company reorganization, in connection with which, Apache will create APA Corporation, a new holding company (APA). Upon completion of the holding company reorganization, Apache will be a wholly-owned subsidiary of APA, APA will be the successor issuer to Apache pursuant to Rule 12g-3(a) under the Exchange, and APA will replace Apache as the public company trading on the Nasdaq Global Select Market under the ticker symbol “APA” (the Holding Company Reorganization). The Holding Company Reorganization has not yet been implemented, but it is expected to be completed during the first half of 2021. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting policies used by Apache and its subsidiaries reflect industry practices and conform to accounting principles generally accepted in the U.S. (GAAP). The Company’s financial statements for prior periods include reclassifications that were made to conform to the current-year presentation. Significant accounting policies are discussed below. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Apache and its subsidiaries after elimination of intercompany balances and transactions. The Company’s undivided interests in oil and gas exploration and production ventures and partnerships are proportionately consolidated. The Company consolidates all other investments in which, either through direct or indirect ownership, it has more than a 50 percent voting interest or controls the financial and operating decisions. Noncontrolling interests represent third-party ownership in the net assets of a consolidated subsidiary of Apache and are reflected separately in the Company’s financial statements. Sinopec International Petroleum Exploration and Production Corporation (Sinopec) owns a one-third minority participation in Apache’s Egypt oil and gas business as a noncontrolling interest, which is reflected as a separate component of equity in the Company’s consolidated balance sheet. Additionally, third-party investors own a minority interest of approximately 21 percent of Altus Midstream Company (ALTM), which is reflected as a separate noncontrolling interest component of equity in Apache’s consolidated balance sheet. ALTM qualifies as a variable interest entity (VIE) under GAAP. Apache consolidates the activities of ALTM because it has concluded that it has a controlling financial interest in ALTM and is the primary beneficiary of the VIE. On June 12, 2019, Altus Midstream LP issued and sold Series A Cumulative Redeemable Preferred Units (the Preferred Units) through a private offering that admitted additional limited partners with separate rights for the Preferred Unit holders. Refer to Note 1 3 —Redeemable Noncontrolling Interest - Altus for further detail. Investments in which the Company holds less than 50 percent of the voting interest are typically accounted for under the equity method of accounting, with the balance recorded separately as “Equity method interests” in the Company’s consolidated balance sheet and as a component of “Other” under “Revenues and Other” in the Company’s statement of consolidated operations. Refer to Note 6—Equity Method Interests for further detail. Use of Estimates Preparation of financial statements in conformity with GAAP and disclosure of contingent assets and liabilities 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. The Company bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. The Company evaluates its estimates and assumptions on a regular basis. Actual results may differ from these estimates and assumptions used in preparation of the Company’s financial statements and changes in these estimates are recorded when known. Significant estimates with regard to these financial statements include the estimates of fair value for long-lived assets (see “Fair Value Measurements” and “Property and Equipment” sections in this Note 1 below), the fair value determination of acquired assets and liabilities (see Note 2—Acquisitions and Divestitures ), the assessment of asset retirement obligations (see Note 8—Asset Retirement Obligation ), the estimate of income taxes (see Note 10—Income Taxes ), and the estimate of proved oil and gas reserves and related present value estimates of future net cash flows therefrom (see Note 18—Supplemental Oil and Gas Disclosures (Unaudited) ). Fair Value Measurements Certain assets and liabilities are reported at fair value on a recurring basis in Apache’s consolidated balance sheet. Accounting Standards Codification (ASC) 820-10-35, “Fair Value Measurement” (ASC 820), 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). Recurring fair value measurements are presented in further detail in Note 4—Derivative Instruments and Hedging Activities , Note 9—Debt and Financing Costs , Note 12—Retirement and Deferred Compensation Plans , and Note 13—Redeemable Noncontrolling Interest - Altus . The Company also uses fair value measurements on a nonrecurring basis when certain qualitative assessments of its assets indicate a potential impairment. The following table presents a summary of asset impairments recorded in connection with fair value assessments: For the Year Ended December 31, 2020 2019 2018 (In millions) Oil and gas proved property $ 4,319 $ 1,484 $ 328 Gathering, processing, and transmission facilities 68 1,295 56 Equity method investment — — 113 Divested unproved properties and leasehold — 149 10 Goodwill 87 — — Inventory and other 27 21 4 Total Impairments $ 4,501 $ 2,949 $ 511 For the year ended December 31, 2020, the Company recorded asset impairments totaling $4.5 billion in connection with fair value assessments. Given the crude oil price collapse on lower demand and economic activity resulting from the coronavirus disease 2019 (COVID-19) global pandemic and related governmental actions, the Company assessed its oil and gas property and gathering, processing, and transmission (GPT) facilities for impairment based on the net book value of its assets as of March 31, 2020. The Company recorded proved property impairments totaling $3.9 billion, $354 million, and $7 million in the U.S., Egypt, and North Sea, respectively, all of which were impaired to their estimated fair values as a result of lower forecasted commodity prices, changes to planned development activity, and increasing market uncertainty. Impairments totaling $68 million were similarly recorded for GPT facilities in Egypt. These impairments are discussed in further detail below in “Property and Equipment - Oil and Gas Property” and “Property and Equipment - Gathering, Processing, and Transmission Facilities.” The Company also performed an interim impairment analysis of the goodwill related to its Egypt reporting unit. Reductions in estimated net present value of expected future cash flows from oil and gas properties resulted in implied fair values below the carrying values of the Company’s Egypt reporting unit. As a result of these assessments, the Company recognized non-cash impairments of the entire amount of recorded goodwill in the Egypt reporting unit of $87 million in the first quarter of 2020. During the remainder of 2020, the Company recorded additional proved property impairments totaling $20 million in Egypt, as well as $13 million for the early termination of drilling rig leases, $5 million for inventory revaluations, and $9 million of other asset impairments, all in the U.S. During the fourth quarter of 2019, following a material reduction to planned investment in Apache’s Alpine High development, the Company recorded impairments totaling $1.4 billion for its Alpine High proved properties and upstream infrastructure which were written down to their fair values. Altus separately assessed its long-lived infrastructure assets for impairment based on expected reductions to future throughput volumes from Alpine High. Altus subsequently recorded impairments totaling $1.3 billion on its GPT facilities. These impairments are discussed in further detail below in “Property and Equipment - Oil and Gas Property” and “Property and Equipment - Gathering, Processing, and Transmission Facilities.” Separate from the Company’s Alpine High and Altus impairments, Apache entered into agreements to sell certain of its assets in the western Anadarko Basin in Oklahoma and Texas. As a result of these agreements, a separate impairment analysis was performed for each of the assets within the disposal groups. The analyses were based on the agreed-upon proceeds less costs to sell for the transaction, a Level 1 fair value measurement. The carrying value of the net assets to be divested exceeded the fair value implied by the expected net proceeds, resulting in impairments in the second and fourth quarters of 2019 totaling $255 million, including $101 million on the Company’s proved properties, $149 million on its unproved properties, and $5 million on other working capital. For more information regarding this transaction, refer to Note 2—Acquisitions and Divestitures . For the year ended December 31, 2018, the Company recorded asset impairments totaling $511 million in connection with fair value assessments. Impairments totaling $328 million and $56 million were recorded for proved properties, and a gathering and processing facility in Oklahoma, respectively, which were written down to their fair values associated with U.S. assets to be divested. During the third quarter of 2018, Apache agreed to sell certain of its unproved properties offshore the U.K. in the North Sea. As a result, the Company performed a fair value assessment of the properties and recorded a $10 million impairment on the carrying values of the associated capitalized exploratory well costs. The fair value of the impaired assets was determined using the negotiated sales price, a Level 1 fair value measurement. Also in 2018, the Company recorded $113 million for the impairment of an equity method investment in the U.S. based on a negotiated sales price and $4 million for inventory write-downs in the U.S. for obsolescence. Cash and Cash Equivalents The Company considers all highly liquid short-term investments with a maturity of three months or less at the time of purchase to be cash equivalents. These investments are carried at cost, which approximates fair value. As of December 31, 2020 and 2019, the Company had $262 million and $247 million, respectively, of cash and cash equivalents, of which approximately $24 million and $6 million, respectively, was held by Altus. The Company had no restricted cash as of December 31, 2020 and 2019. Accounts Receivable and Allowance for Credit Losses Accounts receivable are stated at amortized cost net of an allowance for credit losses. The Company routinely assesses the collectability of its financial assets measured at amortized cost. In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, “Financial Instruments-Credit Losses.” The standard changes the impairment model for trade receivables, held-to-maturity debt securities, net investments in leases, loans, and other financial assets measured at amortized cost. This ASU requires the use of a new forward-looking “expected loss” model compared to the previous “incurred loss” model, resulting in accelerated recognition of credit losses. Apache adopted this update in the first quarter of 2020. This ASU primarily applies to the Company’s accounts receivable balances, of which the majority are received within a short-term period of one year or less. The Company monitors the credit quality of its counterparties through review of collections, credit ratings, and other analyses. The Company develops its estimated allowance for credit losses primarily using an aging method and analyses of historical loss rates as well as consideration of current and future conditions that could impact its counterparties’ credit quality and liquidity. The adoption and implementation of this ASU did not have a material impact on the Company’s financial statements. The following table presents changes to the Company’s allowance for credit loss: For the Year Ended December 31, 2020 2019 2018 (In millions) Allowance for credit loss at beginning of year $ 88 $ 92 $ 84 Additional provisions for the year 7 3 9 Uncollectible accounts written off, net of recoveries — (7) (1) Allowance for credit loss at end of year $ 95 $ 88 $ 92 Inventories Inventories consist principally of tubular goods and equipment and are stated at the lower of weighted-average cost or net realizable value. Oil produced but not sold, primarily in the North Sea, is also recorded to inventory and is stated at the lower of the cost to produce or net realizable value. Property and Equipment The carrying value of the Company’s property and equipment represents the cost incurred to acquire the property and equipment, including capitalized interest, net of any impairments. For business combinations, property and equipment cost is based on the fair values at the acquisition date. 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 suspended exploratory well costs are expensed. 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 multiplies the percentage of estimated proved reserves produced each quarter by the carrying value of associated proved oil and gas properties. The reserve base used to calculate depreciation for leasehold acquisition costs and the cost to acquire proved properties is the sum of proved developed reserves and proved undeveloped reserves. The reserve base used to calculate the depreciation for capitalized well costs is the sum of proved developed reserves only. 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 the carrying value of proved oil and gas properties may not be recoverable, 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 ASC 820. The expected future cash flows used for impairment reviews and related fair value calculations are typically based on judgmental assessments, a Level 3 fair value measurement. The significant decline in crude oil and natural gas prices, as well as longer-term commodity price outlooks, related to reduced demand for oil and natural gas as a result of the COVID-19 pandemic and related governmental actions indicated possible impairment of the Company’s proved and unproved oil and gas properties in early 2020. In addition to estimating risk-adjusted reserves and future production volumes, estimated future commodity prices are the largest driver in variability of undiscounted pre-tax cash flows. Expected cash flows were estimated based on management’s views of published West Texas Intermediate (WTI), Brent, and Henry Hub forward pricing as of the balance sheet dates. Other significant assumptions and inputs used to calculate estimated future cash flows include estimates for future development activity, exploration plans and remaining lease terms. A 10 percent discount rate, based on a market-based weighted-average cost of capital estimate, was applied to the undiscounted cash flow estimate to value all of the Company’s asset groups that were subject to impairment charges in 2020. Similar assumptions were applied to impairments recorded in 2019 and 2018. The following table represents non-cash impairments charges of the carrying value of the Company’s proved and unproved properties: For the Year Ended December 31, 2020 2019 2018 (In millions) Proved properties: U.S. $ 3,938 $ 1,484 $ 265 Egypt 374 — 63 North Sea 7 — — Total proved properties $ 4,319 $ 1,484 $ 328 Unproved properties: U.S. $ 92 $ 760 $ 96 Egypt 8 8 — North Sea 1 — 128 Total unproved properties $ 101 $ 768 $ 224 Proved properties impaired had aggregate fair values as of the most recent date of impairment of $1.9 billion and $628 million for 2020 and 2019, respectively. Unproved leasehold impairments are typically recorded as a component of “Exploration” expense in the Company’s statement of consolidated operations. However, in 2019, unproved impairments of $149 million were recorded as a component of “Impairments” in connection with an agreement to sell certain non-core leasehold properties in Oklahoma and Texas. In addition, in 2018, unproved impairments of $10 million were recorded as a component of “Impairments” in connection with an agreement to sell certain unproved properties in the North Sea. Gains and losses on divestitures of the Company’s oil and gas properties are recognized in the statement of consolidated operations upon closing of the transaction. Refer to Note 2—Acquisitions and Divestitures for more detail. Gathering, Processing, and Transmission Facilities GPT facilities totaled $670 million and $799 million at December 31, 2020 and 2019, respectively, with accumulated depreciation for these assets totaling $323 million and $310 million for the respective periods. GPT facilities are depreciated on a straight-line basis over the estimated useful lives of the assets. The estimation of useful life takes into consideration anticipated production lives from the fields serviced by the GPT assets, whether Apache-operated or third party-operated, as well as potential development plans by the Company for undeveloped acreage within or in close proximity to those fields. The Company assesses the carrying amount of its GPT facilities whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying amount of these facilities is more than the sum of the undiscounted cash flows, an impairment loss is recognized for the excess of the carrying value over its fair value. Apache assessed its long-lived infrastructure assets for impairment at March 31, 2020, and recorded an impairment of $68 million on its GPT facilities in Egypt during the first quarter of 2020. The fair values of the impaired assets, which were determined to be $46 million, were estimated using the income approach, which considers internal estimates based on future throughput volumes from applicable development concessions in Egypt and estimated costs to operate. These assumptions were applied based on throughput assumptions developed in relation to the oil and gas proved property impairment assessment as discussed above to develop future cash flow projections that were then discounted to estimated fair value, using a 10 percent discount rate, based on a market-based weighted-average cost of capital estimate. Apache has classified these non-recurring fair value measurements as Level 3 in the fair value hierarchy. As discussed under “Fair Value Measurements” above, the Company decided to materially reduce its planned investment in the Alpine High play during its fourth-quarter 2019 capital planning review. Altus management subsequently assessed its long-lived infrastructure assets for impairment given the expected reduction to future throughput volumes and recorded impairments of $1.3 billion on its gathering, processing, and transmission assets. The fair values of the impaired assets were determined to be $203 million as of the time of the impairment and were estimated using the income approach. The income approach 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 discount rates 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. During 2018, the Company recorded impairments of the entire net book value of certain GPT assets in the U.S. in the amount of $56 million associated with a proposed divestiture package. The costs of GPT assets sold or otherwise disposed of and associated accumulated depreciation are removed from Apache’s consolidated financial statements, and the resulting gain or loss is reflected in “Gain on divestitures” under “Revenues and Other” in the Company’s statement of consolidated operations. A $2 million loss was recorded on the sale of power generators during 2020, and no gain or loss on the sales of GPT facilities was recognized during 2019 or 2018. Other Property and Equipment Other property and equipment includes computer software and equipment, buildings, vehicles, furniture and fixtures, land, and other equipment. These assets are depreciated on a straight-line basis over the estimated useful lives of the assets, which range from 3 to 20 years. Other property and equipment totaled $1.1 billion at each of December 31, 2020 and 2019, with accumulated depreciation for these assets totaling $864 million and $817 million at December 31, 2020 and 2019, respectively. Asset Retirement Costs and Obligations The initial estimated asset retirement obligation related to property and equipment and subsequent revisions are recorded as a liability at fair value, with an offsetting asset retirement cost recorded as an increase to the associated property and equipment on the consolidated balance sheet. Revisions in estimated liabilities can result from changes in estimated inflation rates, changes in service and equipment costs and changes in the estimated timing of an asset’s retirement. Asset retirement costs are depreciated using a systematic and rational method similar to that used for the associated property and equipment. Accretion expense on the liability is recognized over the estimated productive life of the related assets. Capitalized Interest For significant projects, interest is capitalized as part of the historical cost of developing and constructing assets. Significant oil and gas investments in unproved properties actively being explored, significant exploration and development projects that have not commenced production, significant midstream development activities that are in progress, and investments in equity method affiliates that are undergoing the construction of assets that have not commenced principal operations qualify for interest capitalization. Interest is capitalized until the asset is ready for service. Capitalized interest is determined by multiplying the Company’s weighted-average borrowing cost on debt by the average amount of qualifying costs incurred. Once an asset subject to interest capitalization is completed and placed in service, the associated capitalized interest is expensed through depreciation. Goodwill Goodwill represents the excess of the purchase price of an entity over the estimated fair value of the assets acquired and liabilities assumed, and it is recorded in “Deferred charges and other” in the Company’s consolidated balance sheet. The Company assesses the carrying amount of goodwill by testing for impairment annually and when impairment indicators arise. The impairment test requires allocating goodwill and all other assets and liabilities to assigned reporting units. Apache assesses each country as a reporting unit, with Egypt being the only reporting unit to have associated goodwill. The fair value of the reporting unit is determined and compared to the book value of the reporting unit. If the fair value of the reporting unit is less than the book value, including goodwill, then goodwill is written down to its implied fair value through a charge to expense. When there is a disposal of a reporting unit or a portion of a reporting unit that constitutes a business, goodwill associated with that business is included in the carrying amount to determine the gain or loss on disposal. The amount of goodwill allocated to the carrying amount of a business can significantly impact the amount of gain or loss recognized on the sale of that business. The amount of goodwill to be included in that carrying amount is based on the relative fair value of the business to be disposed of and the portion of the reporting unit that will be retained. The following presents the changes to goodwill for the years ended 2020, 2019, and 2018: Egypt Total (In millions) Goodwill at December 31, 2017 $ 87 $ 87 Impairments — — Goodwill at December 31, 2018 87 87 Impairments — — Goodwill at December 31, 2019 87 87 Impairments (87) (87) Goodwill at December 31, 2020 $ — $ — Reductions in estimated net present value of expected future cash flows from oil and gas properties resulted in implied fair values below the carrying values of the Company’s Egypt reporting unit. As a result of these assessments, the Company recognized non-cash impairments of the entire amount of recorded goodwill in the Egypt reporting unit of $87 million. This goodwill impairment has been recorded in “Impairments” in the Company’s statement of consolidated operations. Commitments and Contingencies Accruals for loss contingencies arising from claims, assessments, litigation, environmental and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. These accruals are adjusted as additional information becomes available or circumstances change. For more information regarding loss contingencies, refer to Note 11—Commitments and Contingencies . Revenue Recognition The years ended 2019 and 2018 include the reclassification of $176 million and $357 million, respectively, from “Other” to “Purchased oil and gas sales,” both within “Revenues and Other” and the respective associated $142 million and $340 million purchased oil and gas costs from “Other” within “Revenues and Other” to “Purchased oil and gas costs” within “Operating Expenses” on the Company’s consolidated statement of operations to conform to the current-year presentation. Upstream The Company’s upstream oil and gas segments primarily generate revenue from contracts with customers from the sale of its crude oil, natural gas, and natural gas liquids production volumes. In addition to Apache-related production volumes, the Company also sells commodity volumes purchased from third-parties to fulfill sales obligations and commitments as the Company’s production fluctuates with potential operational issues and changes to development plans. Under these short-term commodity sales contracts, the physical delivery of each unit of quantity represents a single, distinct performance obligation on behalf of the Company. Contract prices are determined based on market-indexed prices, adjusted for quality, transportation, and other market-reflective differentials. Revenue is measured by allocating an entirely variable market price to each performance obligation and recognized at a point in time when control is transferred to the customer. The Company considers a variety of facts and circumstances in assessing the point of control transfer, including but not limited to: whether the purchaser can direct the use of the hydrocarbons, the transfer of significant risks and rewards, and the Company’s right to payment. Control typically transfers to customers upon the physical delivery at specified locations within each contract and the transfer of title. The Company’s Egypt operations are conducted pursuant to production sharing contracts under which the contractor partners (Contractors) pay all operating and capital costs for exploring and developing defined concessions. A percentage of the production, generally up to 40 percent, is available to Contractors to recover these operating and capital costs over contractually defined periods. The balance of the production is split among the Contractors and the Egyptian General Petroleum Corporation (EGPC) on a contractually defined basis. Additionally, the Contractors’ income taxes, which remain the liability of the Contractors under domestic law, are paid by EGPC on behalf of the Contractors out of EGPC’s production entitlement. Income taxes paid to the Arab Republic of Egypt on behalf of Apache as Contractor are recognized as oil and gas sales revenue and income tax expense and reflected as production and estimated reserves. Revenues related to Egypt’s tax volumes are considered revenue from a non-customer. Refer to Note 1 7 —Business Segment Information for a disaggregation of revenue |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES 2020 Activity During 2020, the Company completed leasehold and property acquisitions, primarily in the Permian Basin, for total cash consideration of $4 million. Also during 2020, the Company completed the sale of certain non-core assets and leasehold, primarily in the Permian Basin, in multiple transactions for total cash proceeds of $87 million, and recognized a gain of $13 million. 2019 Activity U.S. Divestitures In the third quarter of 2019, Apache completed the sale of non-core assets in the western Anadarko Basin of Oklahoma and Texas for aggregate cash proceeds of approximately $322 million and the assumption of asset retirement obligations of $49 million. These assets met the criteria to be classified as held for sale in the second quarter of 2019. Accordingly, the Company performed a fair value assessment of the assets and recorded impairments of $240 million to the carrying value of proved and unproved oil and gas properties, other fixed assets, and working capital. The transaction closed in the third quarter of 2019, and the Company recognized a $7 million loss in connection with the sale. In the second quarter of 2019, Apache completed the sale of certain non-core assets in Oklahoma that had a net carrying value of $206 million for aggregate cash proceeds of approximately $223 million. The Company recognized a $17 million gain in connection with the sale. During 2019, the Company also completed the sale of certain other non-core producing assets, GPT assets, and leasehold acreage, primarily in the Permian Basin, in multiple transactions for total cash proceeds of $73 million. The Company recognized a net gain of approximately $33 million upon closing of these transactions. Suriname Joint Venture Agreement In December 2019, Apache entered into a joint venture agreement with Total S.A. to explore and develop Block 58 offshore Suriname. Under the terms of the agreement, Apache and Total S.A. each hold a 50 percent working interest in Block 58. Pursuant to the agreement, Apache operated the drilling of the first four wells, the Maka Central-1, Sapakara West-1, Kwaskwasi-1, and Keskesi East-1, and subsequently transferred operatorship of Block 58 to Total S.A. on January 1, 2021. Apache will continue to operate the Keskesi exploration well until completion of drilling operations. In connection with the agreement, Apache received $100 million from Total S.A. upon closing in the fourth quarter of 2019 and $79 million upon satisfying certain closing conditions in the first quarter of 2020 for reimbursement of 50 percent of all costs incurred on Block 58 as of December 31, 2019. All proceeds were applied against the carrying value of the Company’s Suriname properties and associated inventory. The Company recognized a $19 million gain in the first quarter of 2020 associated with the transaction. Apache will also receive various other forms of consideration, including $5.0 billion of cash carry on Apache’s first $7.5 billion of appraisal and development capital, 25 percent cash carry on all of Apache’s appraisal and development capital beyond the first $7.5 billion, a $75 million cash payment upon achieving first oil production, and future contingent royalty payments from successful joint development projects. Leasehold, Property, and Other Acquisitions During 2019, the Company completed leasehold and property acquisitions, primarily in the Permian Basin, for total cash consideration of $40 million. As part of the Altus transaction described below, Apache contributed options (Pipeline Options) to acquire equity interests in five separate third-party pipeline projects (the Equity Method Interest Pipelines) to Altus Midstream and/or its subsidiaries. As of December 31, 2019, four of the five Pipeline Options had been exercised to acquire various ownership interests in the associated Equity Method Interest Pipelines. The fifth Pipeline Option to acquire an equity interest in a separate intra-basin NGL pipeline was not exercised and expired on March 2, 2020. For discussion of the Equity Method Interest Pipelines, refer to Note 6—Equity Method Interests . 2018 Activity Altus Transaction In November 2018, Apache completed a transaction with Altus Midstream Company to create a pure-play, Permian Basin midstream C-corporation anchored by the Company’s GPT assets at Alpine High. Pursuant to the agreement, the Company contributed certain Alpine High midstream assets and the Pipeline Options to Altus and/or its subsidiaries. Altus Midstream Company contributed approximately $628 million of cash, net of transaction expenses. The transaction was accounted for by Altus as a reverse recapitalization. Under this method of accounting, Altus Midstream Company was treated as the “acquired” company, and Apache’s contributed assets of approximately $1.1 billion remained at historical cost, with no goodwill or other intangible assets recorded. Apache owns an approximate 79 percent ownership interest in Altus. Apache fully consolidates the assets and liabilities of Altus in its consolidated financial statements, with a corresponding noncontrolling interest reflected separately. Apache recorded a noncontrolling interest of $406 million upon closing, which is reflected as a separate component of equity in the Company’s consolidated balance sheet. This represents approximately 21 percent third party ownership of the net assets in Altus at the time of the transaction. The cash contributions in excess of the noncontrolling interest were recognized as additional paid-in capital. Other Activity During 2018, the Company completed the sale of certain non-core assets and leasehold, primarily in the North Sea and Permian Basin, in multiple transactions for total cash proceeds of $138 million. The Company recognized gains of approximately $23 million during 2018 upon the closing of these transactions. During 2018, the Company completed leasehold and property acquisitions, primarily in the Permian Basin, for cash proceeds of $133 million. |
CAPITALIZED EXPLORATORY WELL CO
CAPITALIZED EXPLORATORY WELL COSTS | 12 Months Ended |
Dec. 31, 2020 | |
Extractive Industries [Abstract] | |
CAPITALIZED EXPLORATORY WELL COSTS | CAPITALIZED EXPLORATORY WELL COSTS The following summarizes the changes in capitalized exploratory well costs for the years ended December 31, 2020, 2019, and 2018. Additions pending the determination of proved reserves excludes amounts capitalized and subsequently charged to expense within the same year. For the Year Ended December 31, 2020 2019 2018 (In millions) Capitalized well costs at beginning of year $ 141 $ 159 $ 350 Additions pending determination of proved reserves 226 286 602 Divestitures and other (38) (100) (82) Reclassifications to proved properties (56) (179) (647) Charged to exploration expense (76) (25) (64) Capitalized well costs at end of year $ 197 $ 141 $ 159 The following provides an aging of capitalized exploratory well costs and the number of projects for which exploratory well costs have been capitalized for a period greater than one year since the completion of drilling as of December 31: 2020 2019 2018 (In millions) Exploratory well costs capitalized for a period of one year or less $ 184 $ 108 $ 126 Exploratory well costs capitalized for a period greater than one year 13 33 33 Capitalized well costs at end of year $ 197 $ 141 $ 159 Number of projects with exploratory well costs capitalized for a period greater than one year 5 2 2 Suspended exploratory well costs capitalized for a period greater than one year since the completion of drilling at December 31, 2020, relate to onshore projects in Egypt. Drilling activity and testing has continued for these projects throughout 2020, and these projects are currently being evaluated for potential development. Suspended exploratory well costs capitalized for a period greater than one year since the completion of drilling at December 31, 2019, relate to separate onshore projects in the United States and Egypt. The costs related to the U.S. projects were charged to exploration expense in the current year based on management’s assessment and development efforts through year end. Suspended exploratory well costs capitalized for a period greater than one year since the completion of drilling at December 31, 2018, included $28 million related to exploratory drilling in Suriname. In December 2019, Apache entered into the joint venture agreement with Total S.A., pursuant to which Apache sold 50 percent of its ownership interest in Block 58 to Total S.A. Proceeds received from Total S.A. upon closing were applied against the carrying value of its Suriname properties. The following table summarizes aging by geographic area of those exploratory well costs that, as of December 31, 2020, have been capitalized for a period greater than one year, categorized by the year in which drilling was completed: Total 2019 2018 2017 and Prior (In millions) Egypt $ 13 $ 4 $ 9 $ — $ 13 $ 4 $ 9 $ — |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Objectives and Strategies Apache is exposed to fluctuations in crude oil and natural gas prices on the majority of its worldwide production, as well as transactions denominated in foreign currencies. The Company manages the variability in its cash flows by occasionally entering into derivative transactions on a portion of its crude oil and natural gas production and foreign currency transactions. The Company utilizes various types of derivative financial instruments, including forward contracts, futures contracts, swaps, and options, to manage fluctuations in cash flows resulting from changes in commodity prices or foreign currency values. Counterparty Risk The use of derivative instruments exposes the Company to credit loss in the event of nonperformance by the counterparty. To reduce the concentration of exposure to any individual counterparty, Apache utilizes a diversified group of investment-grade rated counterparties, primarily financial institutions, for its derivative transactions. As of December 31, 2020, the Company had derivative positions with six counterparties. The Company monitors counterparty creditworthiness on an ongoing basis; however, it cannot predict sudden changes in counterparties’ creditworthiness. In addition, even if such changes are not sudden, the Company may be limited in its ability to mitigate an increase in counterparty credit risk. Should one of these counterparties not perform, Apache may not realize the benefit of some of its derivative instruments resulting from changes in commodity prices, currency exchange rates, or interest rates. Derivative Instruments Commodity Derivative Instruments As of December 31, 2020, the Company had the following open natural gas financial basis swap contracts: Basis Swap Purchased Basis Swap Sold Production Period Settlement Index MMBtu Weighted Average Price Differential MMBtu Weighted Average Price Differential April—December 2021 NYMEX Henry Hub/IF Waha 37,580 $(0.43) — — April—December 2021 NYMEX Henry Hub/IF HSC — — 37,580 $(0.07) January—December 2022 NYMEX Henry Hub/IF Waha 43,800 $(0.45) — — January—December 2022 NYMEX Henry Hub/IF HSC — — 43,800 $(0.08) Embedded Derivatives Altus Preferred Units Embedded Derivative During the second quarter of 2019, Altus Midstream LP issued and sold Series A Cumulative Redeemable Preferred Units. Certain redemption features embedded within the Preferred Units require bifurcation and measurement at fair value. For further discussion of this derivative, see “Fair Value Measurements” below and Note 13—Redeemable Noncontrolling Interest - Altus . Pipeline Capacity Embedded Derivatives During the fourth quarter of 2019 and first quarter of 2020, Apache entered into separate agreements to assign a portion of its contracted capacity under an existing transportation agreement to third parties. Embedded in these agreements are arrangements under which Apache has the potential to receive payments calculated based on pricing differentials between Houston Ship Channel and Waha during calendar years 2020 and 2021. These features require bifurcation and measurement of the change in market values for each period. Unrealized gains or losses in the fair value of these features are recorded as “Derivative instrument losses, net” under “Revenues and Other” in the statement of consolidated operations. Any proceeds received will be deferred and reflected in income over the original tenure of the transportation agreement. Fair Value Measurements The following table presents the Company’s derivative assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements Using Quoted Price in Active Markets (Level 1) Significant Other Inputs (Level 2) Significant Unobservable Inputs Total Fair Value Netting (1) Carrying Amount (In millions) December 31, 2020 Assets: Commodity derivative instruments $ — $ 11 $ — $ 11 $ — $ 11 Liabilities: Pipeline capacity embedded derivatives — 53 — 53 — 53 Preferred Units embedded derivative — — 139 139 — 139 December 31, 2019 Assets: Pipeline capacity embedded derivative $ — $ 8 $ — $ 8 $ — $ 8 Foreign currency derivative instruments — 1 — 1 — 1 Liabilities: Preferred Units embedded derivative — — 103 103 — 103 (1) The derivative fair values are based on analysis of each contract on a gross basis, excluding the impact of netting agreements with counterparties. The fair values of the Company’s derivative instruments and pipeline capacity embedded derivatives are not actively quoted in the open market. The Company primarily uses a market approach to estimate the fair values of these derivatives on a recurring basis, utilizing futures pricing for the underlying positions provided by a reputable third party, a Level 2 fair value measurement. The fair value of the Preferred Units embedded derivative is calculated using an income approach, a Level 3 fair value measurement. The fair value determination is based on a range of factors, including expected future interest rates using the Black-Karasinski model, Altus’ imputed interest rate, interest rate volatility, the expected timing of periodic cash distributions, the estimated timing for the potential exercise of the exchange option, and anticipated dividend yields of the Preferred Units. As of the December 31, 2020 valuation date, the Company used the forward B-rated Energy Bond Yield curve to develop the following key unobservable inputs used to value this embedded derivative: Quantitative Information About Level 3 Fair Value Measurements Fair Value at December 31, 2020 Valuation Technique Significant Unobservable Inputs Range/Value (In millions) Preferred Units embedded derivative $ 139 Option Model Altus’ Imputed Interest Rate 7.32-11.73% Interest Rate Volatility 37.08% A one percent increase in the imputed interest rate assumption would significantly increase the value of the embedded derivative as of December 31, 2020, while a one percent decrease would lead to a similar decrease in value as of December 31, 2020. The assumed expected timing until exercise of the exchange option at December 31, 2020 was 5.45 years. Derivative Activity Recorded in the Consolidated Balance Sheet All derivative instruments are reflected as either assets or liabilities at fair value in the consolidated balance sheet. These fair values are recorded by netting asset and liability positions where counterparty master netting arrangements contain provisions for net settlement. The carrying value of the Company’s derivative assets and liabilities and their locations on the consolidated balance sheet are as follows: 2020 2019 (In millions) Current Assets: Other current assets $ 6 $ 2 Noncurrent Assets: Deferred charges and other 5 7 Total derivative assets $ 11 $ 9 Deferred Credits and Other Noncurrent Liabilities: Other $ 192 $ 103 Total derivative liabilities $ 192 $ 103 Derivative Activity Recorded in the Statement of Consolidated Operations The following table summarizes the effect of derivative instruments on the Company’s statement of consolidated operations: For the Year Ended December 31, 2020 2019 2018 (In millions) Realized: Commodity derivative instruments $ (135) $ 27 $ (81) Amortization of put premium, realized loss — — (39) Foreign currency derivative instruments (1) — — Treasury-lock — (18) — Realized gain (loss), net (136) 9 (120) Unrealized: Commodity derivative instruments 11 (44) 103 Pipeline capacity embedded derivatives (61) 8 — Foreign currency derivative instruments (1) 1 — Preferred Units embedded derivative (36) (9) — Unrealized gain (loss), net (87) (44) 103 Derivative instrument losses, net $ (223) $ (35) $ (17) Derivative instrument gains and losses are recorded in “Derivative instrument losses, net” under “Revenues and Other” in the Company’s statement of consolidated operations. Unrealized gains (losses) for derivative activity recorded in the statement of consolidated operations are reflected in the statement of consolidated cash flows separately as “Unrealized derivative instrument losses (gains), net” in “Adjustments to reconcile net loss to net cash provided by operating activities.” |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS | OTHER CURRENT ASSETS The following table provides detail of the Company’s other current assets as of December 31: 2020 2019 (In millions) Inventories $ 492 $ 502 Drilling advances 113 92 Prepaid assets and other 71 58 Total Other current assets $ 676 $ 652 |
EQUITY METHOD INTERESTS
EQUITY METHOD INTERESTS | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY METHOD INTERESTS | EQUITY METHOD INTERESTS As of December 31, 2020 and 2019, Apache, through its ownership of Altus, has the following equity method interests in four Permian Basin long-haul pipeline entities, which are accounted for under the equity method of accounting. For each of the equity method interests, Altus has the ability to exercise significant influence based on certain governance provisions and its participation in activities and decisions that impact the management and economic performance of the equity method interests. Interest 2020 2019 (In millions) Gulf Coast Express Pipeline LLC 16.0 % $ 284 $ 291 EPIC Crude Holdings, LP 15.0 % 176 163 Permian Highway Pipeline LLC 26.7 % 615 311 Shin Oak Pipeline (Breviloba, LLC) 33.0 % 480 493 Total Altus equity method interests $ 1,555 $ 1,258 As of December 31, 2020 and 2019, unamortized basis differences included in the equity method interest balances were $38 million and $30 million, respectively. These amounts represent differences in Altus’ initial costs paid to acquire the equity method interests and its initial underlying equity in the respective entities, as well as capitalized interest related to Permian Highway Pipeline (PHP) construction costs. Unamortized basis differences are amortized into equity income (loss) over the useful lives of the underlying pipeline assets when they are placed into service. The following table presents the activity in Altus’ equity method interests for the years ended December 31, 2020 and 2019: Gulf Coast Express Pipeline LLC EPIC Crude Holdings, LP Permian Highway Pipeline LLC Breviloba, LLC Total (In millions) Balance at December 31, 2018 $ 91 $ — $ — $ — $ 91 Acquisitions 15 52 162 442 671 Capital contributions 184 123 147 47 501 Distributions (16) (9) (25) Capitalized interest (1) — — 2 — 2 Equity income (loss), net 17 (11) — 13 19 Accumulated other comprehensive loss — (1) — — (1) Balance at December 31, 2019 291 163 311 493 1,258 Capital contributions 2 29 296 — 327 Distributions (51) — — (46) (97) Capitalized interest (1) — — 8 — 8 Equity income (loss), net 42 (16) — 33 59 Balance at December 31, 2020 $ 284 $ 176 $ 615 $ 480 $ 1,555 (1) Altus’ proportionate share of the PHP construction costs is funded with Altus’ revolving credit facility. Accordingly, Altus capitalized $8 million and $2 million of related interest expense during 2020 and 2019, respectively, which are included in the basis of the PHP equity interest. Summarized Combined Financial Information The following presents summarized information of combined statement of operations for Altus’ equity method interests (on a 100 percent basis): For the Year Ended December 31, 2020 2019 (1) 2018 (2) (In millions) Operating revenues $ 707 $ 302 $ 3 Operating income (loss) 331 121 (6) Net income (loss) 256 120 (6) Other comprehensive loss 3 (8) — (1) Although Altus’ interests in EPIC Crude Holdings, LP, Permian Highway Pipeline LLC, and Breviloba, LLC were acquired in March, May, and July 2019, respectively, the combined financial results are presented for the year ended December 31, 2019 for comparability. (2) Although Altus’ interest in Gulf Coast Express Pipeline LLC was acquired in December 2018, the combined financial results are presented for the year ended December 31, 2018 for comparability. The following presents summarized combined balance sheet information for Altus’ equity method interests (on a 100 percent basis) as of December 31: 2020 2019 (In millions) Current assets $ 260 $ 441 Noncurrent assets 7,678 6,435 Total assets $ 7,938 $ 6,876 Current liabilities $ 206 $ 478 Noncurrent liabilities 1,191 958 Equity 6,541 5,440 Total liabilities and equity $ 7,938 $ 6,876 |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
OTHER CURRENT LIABILITIES | OTHER CURRENT LIABILITIES The following table provides detail of the Company’s other current liabilities as of December 31: 2020 2019 (In millions) Accrued operating expenses $ 91 $ 143 Accrued exploration and development 167 319 Accrued gathering, processing, and transmission - Altus — 17 Accrued compensation and benefits 170 212 Accrued interest 140 135 Accrued income taxes 25 51 Current asset retirement obligation 56 47 Current operating lease liability 116 169 Other 97 56 Total Other current liabilities $ 862 $ 1,149 |
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION | 12 Months Ended |
Dec. 31, 2020 | |
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 Year Ended December 31, 2020 2019 (In millions) Asset retirement obligation at beginning of year $ 1,858 $ 1,932 Liabilities incurred 10 41 Liabilities divested (26) (56) Liabilities settled (30) (56) Accretion expense 109 107 Revisions in estimated liabilities 23 (110) Asset retirement obligation at end of year 1,944 1,858 Less current portion (56) (47) Asset retirement obligation, long-term $ 1,888 $ 1,811 The ARO liability reflects the estimated present value of the amount of dismantlement, removal, site reclamation, and similar activities associated with Apache’s oil and gas properties and other long-lived assets. The Company utilizes current retirement costs to estimate the expected cash outflows for retirement obligations. The Company estimates the ultimate productive life of the properties, a risk-adjusted discount rate, and an inflation factor in order to determine the current present value of this obligation. To the extent future revisions to these assumptions impact the present value of the existing ARO liability, a corresponding adjustment is made to the oil and gas property or other long-lived asset balance. During 2020 and 2019, the Company recorded $10 million and $41 million, respectively, in abandonment liabilities resulting from Apache’s exploration and development capital program. Liabilities settled primarily relate to individual properties, platforms, and facilities plugged and abandoned during the period. During 2020, approximately $23 million net abandonment costs were revised upward to reflect changes in estimates of timing and costs, primarily in the North Sea. During 2019, approximately $110 million net abandonment costs were revised downward to reflect changes in estimates of timing and costs, primarily in the North Sea. |
DEBT AND FINANCING COSTS
DEBT AND FINANCING COSTS | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
DEBT AND FINANCING COSTS | DEBT AND FINANCING COSTS Overview All of the Company’s debt is senior unsecured debt and has equal priority with respect to the payment of both principal and interest. All indentures for the notes and debentures described below place certain restrictions on the Company, including limits on Apache’s ability to incur debt secured by certain liens. Certain of these indentures also restrict the Company’s ability to enter into certain sale and leaseback transactions and give holders the option to require the Company to repurchase outstanding notes and debentures upon certain changes in control. None of the indentures contain prepayment obligations in the event of a decline in credit ratings. In August 2018, Apache closed an offering of $1.0 billion in aggregate principal amount of senior unsecured 4.375% notes due October 15, 2028. The notes are redeemable at any time, in whole or in part, at Apache’s option, subject to a make-whole premium. The net proceeds from the sale of the notes were used to purchase certain outstanding notes in cash tender offers, repay notes that matured in September 2018, and for general corporate purposes. Also in August 2018, Apache closed cash tender offers for certain outstanding notes. Apache accepted for purchase $731 million aggregate principal amount of certain notes covered by the tender offers. Apache paid holders an aggregate of approximately $828 million reflecting principal, the discount to par, early tender premium, and accrued and unpaid interest. The Company recorded a net loss of $94 million on extinguishment of debt, including $5 million of unamortized debt issuance costs and discount, in connection with the note purchases. On June 19, 2019, Apache closed offerings of $1.0 billion in aggregate principal amount of senior unsecured notes, comprised of $600 million in aggregate principal amount of 4.250% notes due January 15, 2030 and $400 million in aggregate principal amount of 5.350% notes due July 1, 2049. The notes are redeemable at any time, in whole or in part, at Apache’s option, subject to a make-whole premium. The net proceeds from the sale of the notes were used to purchase certain outstanding notes in cash tender offers and for general corporate purposes. On June 21, 2019, the Company closed cash tender offers for certain outstanding notes. Apache accepted for purchase $932 million aggregate principal amount of certain notes covered by the tender offers. Apache paid holders an aggregate of approximately $1.0 billion reflecting principal, the net premium to par, early tender premium, and accrued and unpaid interest. The Company recorded a net loss of $75 million on extinguishment of debt, including $7 million of unamortized debt issuance costs and discount, in connection with the note purchases. On August 17, 2020, the Company closed offerings of $1.25 billion in aggregate principal amount of senior unsecured notes, comprised of $500 million in aggregate principal amount of 4.625% notes due 2025 and $750 million in aggregate principal amount of 4.875% notes due 2027. The senior unsecured notes are redeemable at any time, in whole or in part, at Apache’s option, at the applicable redemption price. The net proceeds from the sale of the notes were used to purchase certain outstanding notes in cash tender offers, repay a portion of outstanding borrowings under the Company’s senior revolving credit facility, and for general corporate purposes. On August 18, 2020, the Company closed cash tender offers for certain outstanding notes. Apache accepted for purchase $644 million aggregate principal amount of certain notes covered by the tender offers. Apache paid holders an aggregate $644 million, reflecting principal, aggregate discount to par of $38 million, early tender premium of $32 million, and accrued and unpaid interest of $6 million. The Company recorded a net gain of $2 million on extinguishment of debt, including an acceleration of unamortized debt discount and issuance costs, in connection with the note purchases. During 2020, the Company purchased in the open market and canceled senior notes issued under its indentures in an aggregate principal amount of $588 million for an aggregate purchase price of $428 million in cash, including accrued interest and broker fees, reflecting a discount to par of an aggregate $168 million. These repurchases resulted in a $158 million net gain on extinguishment of debt. The net gain includes an acceleration of related discount and debt issuance costs. The repurchases were financed by borrowings under the Company’s revolving credit facility. The Company records gains and losses on extinguishment of debt in “Financing costs, net” in the Company’s statement of consolidated operations. The following table presents the carrying value of the Company’s debt: December 31, 2020 2019 (In millions) 3.625% notes due 2021 (1) $ — $ 293 3.25% notes due 2022 (2) 213 463 2.625% notes due 2023 (2) 123 181 4.625% notes due 2025 (2) 500 — 7.7% notes due 2026 79 79 7.95% notes due 2026 133 133 4.875% due 2027 (2) 750 — 4.375% notes due 2028 (2) 993 1,000 7.75% notes due 2029 (2)(3) 235 247 4.25% notes due 2030 (2) 580 600 6.0% notes due 2037 (2) 443 467 5.1% notes due 2040 (2) 1,333 1,499 5.25% notes due 2042 (2) 399 500 4.75% notes due 2043 (2) 1,133 1,413 4.25% notes due 2044 (2) 559 753 7.375% debentures due 2047 150 150 5.35% notes due 2049 (2) 390 400 7.625% debentures due 2096 39 39 Notes and debentures before unamortized discount and debt issuance costs (4) 8,052 8,217 Commercial paper — — Altus credit facility (5) 624 396 Apache credit facility (5) 150 — Finance lease obligations 38 48 Unamortized discount (35) (42) Debt issuance costs (57) (53) Total debt 8,772 8,566 Current maturities (2) (11) Long-term debt $ 8,770 $ 8,555 (1) On November 3, 2020, Apache redeemed the 3.625% senior notes due February 1, 2021, at a redemption price equal to 100 percent of their principal amount, plus accrued and unpaid interest to the redemption date. (2) These notes are redeemable, as a whole or in part, at Apache’s option, subject to a make-whole premium, except that the 7.75% notes due 2029 are only redeemable as whole for principal and accrued interest in the event of certain Canadian tax law changes. The remaining notes and debentures are not redeemable. (3) Assumed by Apache in August 2017 as permitted by terms of these notes originally issued by a subsidiary and guaranteed by Apache. (4) The fair values of the Company’s notes and debentures were $8.5 billion and $8.4 billion as of December 31, 2020 and 2019, respectively. 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). (5) The carrying amount of borrowings on credit facilities approximates fair value because the interest rates are variable and reflective of market rates. Maturities for the Company’s notes and debentures excluding discount and debt issuance costs as of December 31, 2020 are as follows: (In millions) 2021 $ — 2022 213 2023 123 2024 — 2025 500 Thereafter 7,216 Notes and debentures, excluding discounts and debt issuance costs $ 8,052 Uncommitted Lines of Credit The Company from time to time has and uses uncommitted credit and letter of credit facilities for working capital and credit support purposes. As of December 31, 2020 and 2019, there were no outstanding borrowings under these facilities. As of December 31, 2020, there were £34 million and $17 million in letters of credit outstanding under these facilities. As of December 31, 2019, there were £22 million and $3 million in letters of credit outstanding under these facilities. Unsecured Committed Bank Credit Facilities In March 2018, Apache entered into a revolving credit facility with commitments totaling $4.0 billion. In March 2019, the term of this facility was extended by one year to March 2024 (subject to Apache’s remaining one-year extension option) pursuant to Apache’s exercise of an extension option. The Company can increase commitments up to $5.0 billion by adding new lenders or obtaining the consent of any increasing existing lenders. The facility includes a letter of credit subfacility of up to $3.0 billion, of which $2.08 billion was committed as of December 31, 2020. The facility is for general corporate purposes and available committed borrowing capacity supports Apache’s commercial paper program. As of December 31, 2020, there were $150 million of borrowings and an aggregate of £633 million and $40 million in letters of credit outstanding under this facility. As of December 31, 2019, there were no borrowings or letters of credit outstanding under this facility. The £633 million in outstanding letters of credit were issued to support North Sea decommissioning obligations, the terms of which required such support after Standard & Poor’s reduced the Company’s credit rating from BBB to BB+ on March 26, 2020. At Apache’s option, the interest rate per annum for borrowings under the 2018 facility is either a base rate, as defined, plus a margin, or the London Inter-bank Offered Rate (LIBOR), plus a margin. The Company also pays quarterly a facility fee at a per annum rate on total commitments. The margins and the facility fee vary based upon the Company’s senior long-term debt rating. At December 31, 2020, the base rate margin was 0.5 percent, the LIBOR margin was 1.50 percent, and the facility fee was 0.25 percent. A commission is payable quarterly to lenders on the face amount of each outstanding letter of credit at a per annum rate equal to the LIBOR margin then in effect. Customary letter of credit fronting fees and other charges are payable to issuing banks. The financial covenants of the 2018 credit facility require the Company to maintain an adjusted debt-to-capital ratio of not greater than 60 percent at the end of any fiscal quarter. For purposes of this calculation, capital excludes the effects of non-cash write-downs, impairments, and related charges occurring after June 30, 2015. The 2018 facility’s negative covenants restrict the ability of the Company and its subsidiaries to create liens securing debt on its hydrocarbon-related assets, with exceptions for liens typically arising in the oil and gas industry; liens securing debt incurred to finance the acquisition, construction, improvement, or capital lease of assets, provided that such debt, when incurred, does not exceed the subject purchase price and costs, as applicable, and related expenses; liens on subsidiary assets located outside of the United States and Canada; and liens arising as a matter of law, such as tax and mechanics’ liens. Apache also may incur liens on assets if debt secured thereby does not exceed 15 percent of Apache’s consolidated net tangible assets, or approximately $1.7 billion as of December 31, 2020. Negative covenants also restrict Apache’s ability to merge with another entity unless it is the surviving entity, dispose of substantially all of its assets, and guarantee debt of non-consolidated entities in excess of the stated threshold. In November 2018, Altus Midstream LP entered into a revolving credit facility for general corporate purposes that matures in November 2023 (subject to Altus Midstream LP’s two, one-year extension options). The agreement for this facility, as amended, provides aggregate commitments from a syndicate of banks of $800 million. All aggregate commitments include a letter of credit subfacility of up to $100 million and a swingline loan subfacility of up to $100 million. Altus Midstream LP may increase commitments up to an aggregate $1.5 billion by adding new lenders or obtaining the consent of any increasing existing lenders. As of December 31, 2020 and December 31, 2019, there were $624 million and $396 million, respectively, of borrowings, and no letters of credit outstanding under this facility. The agreement for Altus Midstream LP’s credit facility, as amended, restricts distributions in respect of capital to Apache and other unit holders in certain circumstances. Unless the Leverage Ratio is less than or equal to 4.00:1.00, the agreement limits such distributions to $30 million per calendar year until either (i) the consolidated net income of Altus Midstream LP and its restricted subsidiaries, as adjusted pursuant to the agreement, for three consecutive calendar months equals or exceeds $350 million on an annualized basis or (ii) Altus Midstream LP has a specified senior long-term debt rating; in addition, before the occurrence of one of those two events, the Leverage Ratio must be less than or equal to 5.00:1.00. In no event can any distribution be made that would, after giving effect to it on a pro forma basis, result in a Leverage Ratio greater than (i) 5.00:1.00 or (ii) for a specified period after a qualifying acquisition, 5.50:1.00. The Leverage Ratio is the ratio of (1) the consolidated indebtedness of Altus Midstream LP and its restricted subsidiaries to (2) EBITDA (as defined in the agreement) of Altus Midstream LP and its restricted subsidiaries for the 12-month period ending immediately before the determination date. The Leverage Ratio as of December 31, 2020 was less than 4.00:1.00. The terms of Altus Midstream LP’s Series A Cumulative Redeemable Preferred Units also contain certain restrictions on distributions in respect of capital, including the common units held by Apache and any other units that rank junior to the Preferred Units with respect to distributions or distributions upon liquidation. Refer to Note 13—Redeemable Noncontrolling Interest - Altus for further information. In addition, the amount of any cash distributions to Altus Midstream LP by any entity in which it has an interest accounted for by the equity method is subject to such entity’s compliance with the terms of any debt or other agreements by which it may be bound, which in turn may impact the amount of funds available for distribution by Altus Midstream LP to its partners. The Altus Midstream LP credit facility is unsecured and is not guaranteed by Apache or any of Apache’s other subsidiaries. There are no clauses in either the agreement for Apache’s 2018 credit facility or for Altus Midstream LP’s 2018 credit facility that permit the lenders to accelerate payments or refuse to lend based on unspecified material adverse changes. These agreements do not have drawdown restrictions or prepayment obligations in the event of a decline in credit ratings. However, each agreement allows the lenders to accelerate payment maturity and terminate lending and issuance commitments for nonpayment and other breaches, and if a borrower or any of its subsidiaries defaults on other indebtedness in excess of the stated threshold, is insolvent, or has any unpaid, non-appealable judgment against it for payment of money in excess of the stated threshold. Lenders may also accelerate payment maturity and terminate lending and issuance commitments under the applicable agreement if Apache or Altus Midstream LP, as applicable, undergoes a specified change in control or any borrower has specified pension plan liabilities in excess of the stated threshold. Each of Apache and Altus Midstream LP was in compliance with the terms of its 2018 credit facility as of December 31, 2020. Commercial Paper Program Apache’s $3.5 billion commercial paper program, which is subject to market availability, facilitates Apache borrowing funds for up to 270 days. As a result of downgrades in the Company’s credit ratings during 2020, the Company does not expect that its commercial paper program will be cost competitive with its other financing alternatives and does not anticipate using it under such circumstances. As of December 31, 2020 and 2019, the Company had no commercial paper outstanding. Financing Costs, Net The following table presents the components of Apache’s financing costs, net: For the Year Ended December 31, 2020 2019 2018 (In millions) Interest expense $ 438 $ 430 $ 441 Amortization of debt issuance costs 8 7 9 Capitalized interest (12) (37) (44) Loss (gain) on extinguishment of debt (160) 75 94 Interest income (7) (13) (22) Financing costs, net $ 267 $ 462 $ 478 As of December 31, 2020, the Company had $57 million of debt issuance costs, which will be charged to interest expense over the life of the related debt issuances. Discount amortization of $7 million, $2 million, and $3 million was recorded as interest expense in 2020, 2019, and 2018, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income (loss) before income taxes is composed of the following: For the Year Ended December 31, 2020 2019 2018 (In millions) U.S. $ (4,581) $ (4,397) $ (723) Foreign (259) 1,389 1,681 Total $ (4,840) $ (3,008) $ 958 The total income tax provision consists of the following: For the Year Ended December 31, 2020 2019 2018 (In millions) Current income taxes: Federal $ (2) $ 1 $ (1) State — — — Foreign 178 659 895 176 660 894 Deferred income taxes: Federal — 67 (65) State — — 2 Foreign (112) (53) (159) (112) 14 (222) Total $ 64 $ 674 $ 672 The total income tax provision differs from the amounts computed by applying the U.S. statutory income tax rate to income (loss) before income taxes. A reconciliation of the tax on the Company’s income (loss) before income taxes and total tax expense is shown below: For the Year Ended December 31, 2020 2019 2018 (In millions) Income tax expense (benefit) at U.S. statutory rate $ (1,016) $ (631) $ 201 State income tax, less federal effect (1) — 1 2 Taxes related to foreign operations 97 328 436 Tax credits (13) (6) (13) Tax on deemed repatriation of foreign earnings — — 103 Foreign tax credits — — (336) Change in U.S. tax rate — — 161 Net change in tax contingencies 1 1 (2) Goodwill impairment 35 — — Sale of North Sea assets — — (30) Valuation allowances (1) 965 972 118 All other, net (5) 9 32 $ 64 $ 674 $ 672 (1) The change in state valuation allowance is included as a component of state income tax. The net deferred income tax liability reflects the net tax impact of temporary differences between the asset and liability amounts carried on the balance sheet under GAAP and amounts utilized for income tax purposes. The net deferred income tax liability consists of the following as of December 31: 2020 2019 (In millions) Deferred tax assets: U.S. and state net operating losses $ 2,306 $ 2,108 Capital losses 633 626 Tax credits and other tax incentives 33 32 Foreign tax credits 2,241 2,241 Accrued expenses and liabilities 93 97 Asset retirement obligation 654 618 Property & equipment 261 — Investment in Altus Midstream LP 76 107 Net interest expense limitation 252 162 Lease liability 79 108 Other 1 88 Total deferred tax assets 6,629 6,187 Valuation allowance (5,991) (4,959) Net deferred tax assets 638 1,228 Deferred tax liabilities: Deferred income — 1 Equity investments 4 — Property and equipment 750 1,432 Right-of-use asset 74 106 Other 13 6 Total deferred tax liabilities 841 1,545 Net deferred income tax liability $ 203 $ 317 Net deferred tax assets and liabilities are included in the consolidated balance sheet as of December 31 as follows: 2020 2019 (In millions) Assets: Deferred charges and other $ 12 $ 29 Liabilities: Income taxes 215 346 Net deferred income tax liability $ 203 $ 317 On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118) which provides guidance for the application of ASC Topic 740, Income Taxes, for the income tax effects of the Tax Cuts and Jobs Act (the TCJA). SAB 118 provides a measurement period which should not extend beyond 1 year of the enactment date of the TCJA. In 2018, the Company recorded an additional $103 million deferred tax expense attributable to the deemed repatriation of foreign earnings. This deferred tax expense combined with the provisional amount recorded in 2017 were fully offset by available foreign tax credits. The Company completed its analysis of the income tax effects of the TCJA in the fourth quarter of 2018. The Company has recorded an increase in valuation allowance against certain deferred tax assets, primarily driven by asset impairments. The Company has assessed the future potential to realize these deferred tax assets and has concluded that it is more likely than not that these deferred tax assets will not be realized based on current economic conditions and expectations for the future. In 2020, 2019, and 2018, the Company’s valuation allowance increased by $1.0 billion, $1.0 billion, and $131 million, respectively, as detailed in the table below: 2020 2019 2018 (In millions) Balance at beginning of year $ 4,959 $ 3,947 $ 3,816 State (1) 67 41 15 U.S. 960 971 124 Foreign 5 — (8) Balance at end of year $ 5,991 $ 4,959 $ 3,947 (1) Reported as a component of state income taxes. On December 31, 2020, the Company had net operating losses as follows: Amount Expiration (In millions) U.S. $ 8,859 2020 - Indefinite State 6,566 Various The Company has a U.S. net operating loss carryforward of $8.9 billion, which includes $186 million of net operating loss subject to annual limitation under Section 382 of the Internal Revenue Code (Code). Net operating losses generated in tax years beginning after 2017 are subject to an 80 percent taxable income limitation with indefinite carryover under the TCJA. The Company also has a net interest expense carryover of $1.1 billion under Section 163(j) of the Code subject to indefinite carryover, a U.S. capital loss carryforward of $1.8 billion, which has a five year carryover period expiring in 2023 and a Canadian capital loss carryforward of $836 million which has an indefinite carryover. The Company has recorded a full valuation allowance against the U.S. net operating losses, the state net operating losses, the net interest expense carryover, the U.S. capital loss, and the Canadian capital loss carryforward because it is more likely than not that these attributes will not be realized. On December 31, 2020, the Company had foreign tax credits as follows: Amount Expiration (In millions) Foreign tax credits $ 2,241 2025-2026 The Company has a $2.2 billion U.S. foreign tax credit carryforward. The Company has recorded a full valuation allowance against the U.S. foreign tax credits listed above because it is more likely than not that these attributes will expire unutilized. The Company accounts for income taxes in accordance with ASC Topic 740, “Income Taxes,” which prescribes a minimum recognition threshold a tax position must meet before being recognized in the financial statements. Tax positions generally refer to a position taken in a previously filed income tax return or expected to be included in a tax return to be filed in the future that is reflected in the measurement of current and deferred income tax assets and liabilities. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2020 2019 2018 (In millions) Balance at beginning of year $ 82 $ 24 $ 26 Additions based on tax positions related to prior year — 49 — Additions based on tax positions related to the current year 11 9 — Reductions for tax positions of prior years — — (2) Balance at end of year $ 93 $ 82 $ 24 The Company records interest and penalties related to unrecognized tax benefits as a component of income tax expense. Each quarter, the Company assesses the amounts provided for and, as a result, may increase or reduce the amount of interest and penalties. During each of the years ended December 31, 2020, 2019, and 2018, the Company recorded tax expense of $1 million for interest and penalties. At December 31, 2020, 2019, and 2018, the Company had an accrued liability for interest and penalties of $3 million, $2 million, and $1 million, respectively. In 2020, 2019, and 2018, the Company recorded an $11 million net increase, $58 million net increase, and a $2 million net reduction, respectively, in its reserve for uncertain tax positions. The Company is currently under IRS audit for the 2014 through 2017 tax years. Apache and its subsidiaries are subject to U.S. federal income tax as well as income tax in various states and foreign jurisdictions. The Company’s uncertain tax positions are related to tax years that may be subject to examination by the relevant taxing authority. Apache’s earliest open tax years in its key jurisdictions are as follows: Jurisdiction U.S. 2014 Egypt 2005 U.K. 2019 In 2020, the Company early adopted ASU 2019-12, “Simplifying the Accounting for Income Taxes.” The Company’s early adoption of ASU 2019-12 using the prospective transition approach did not result in a material impact on the consolidated financial statements. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Matters The Company is party to various legal actions arising in the ordinary course of business, including litigation and governmental and regulatory controls. As of December 31, 2020, the Company has an accrued liability of approximately $70 million for all legal contingencies that are deemed to be probable of occurring and can be reasonably estimated. The Company’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 the Company’s financial position, results of operations, or liquidity after consideration of recorded accruals. For material matters that the Company 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. Argentine Environmental Claims On March 12, 2014, the Company and its subsidiaries completed the sale of all of the Company’s subsidiaries’ operations and properties in Argentina to YPF Sociedad Anonima (YPF). As part of that sale, YPF assumed responsibility for all of the past, present, and future litigation in Argentina involving Company subsidiaries, except that Company subsidiaries have agreed to indemnify YPF for certain environmental, tax, and royalty obligations capped at an aggregate of $100 million. The indemnity is subject to specific agreed conditions precedent, thresholds, contingencies, limitations, claim deadlines, loss sharing, and other terms and conditions. On April 11, 2014, YPF provided its first notice of claims pursuant to the indemnity. Company subsidiaries have not paid any amounts under the indemnity but will continue to review and consider claims presented by YPF. Further, Company subsidiaries retain the right to enforce certain Argentina-related indemnification obligations against Pioneer Natural Resources Company (Pioneer) in an amount up to $45 million pursuant to the terms and conditions of stock purchase agreements entered in 2006 between Company subsidiaries and subsidiaries of Pioneer. Louisiana Restoration Louisiana surface owners often file lawsuits or assert claims against oil and gas companies, including the Company, claiming that operators and working interest owners in the chain of title are liable for environmental damages on the leased premises, including damages measured by the cost of restoration of the leased premises to its original condition, regardless of the value of the underlying property. From time to time, restoration lawsuits and claims are resolved by the Company for amounts that are not material to the Company, while new lawsuits and claims are asserted against the Company. With respect to each of the pending lawsuits and claims, the amount claimed is not currently determinable or is not material. Further, the overall exposure related to these lawsuits and claims is not currently determinable. While adverse judgments against the Company are possible, the Company intends to actively defend these lawsuits and claims. Starting in November of 2013 and continuing into 2020, several parishes in Louisiana have pending lawsuits against many oil and gas producers, including the Company. These cases were all removed to federal courts in Louisiana. Some of the cases have been remanded to state court with the remand orders being appealed. In these cases, the Parishes, as plaintiffs, allege that defendants’ oil and gas exploration, production, and transportation operations in specified fields were conducted in violation of the State and Local Coastal Resources Management Act of 1978, as amended, and applicable regulations, rules, orders, and ordinances promulgated or adopted thereunder by the Parish or the State of Louisiana. Plaintiffs allege that defendants caused substantial damage to land and water bodies located in the coastal zone of Louisiana. Plaintiffs seek, among other things, unspecified damages for alleged violations of applicable law within the coastal zone, the payment of costs necessary to clear, re-vegetate, detoxify, and otherwise restore the subject coastal zone as near as practicable to its original condition, and actual restoration of the coastal zone to its original condition. While adverse judgments against the Company might be possible, the Company intends to vigorously oppose these claims. Apollo Exploration Lawsuit 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 alleged damages in excess of $200 million (having previously claimed in excess of $1.1 billion) relating to purchase and sale agreements, mineral leases, and areas of mutual interest agreements concerning properties located in Hartley, Moore, Potter, and Oldham Counties, Texas. The Court entered final judgment in favor of the Company, ruling that the plaintiffs take nothing by their claims and awarding the Company its attorneys’ fees and costs incurred in defending the lawsuit. The plaintiffs’ appeal is pending. Australian Operations Divestiture Dispute Pursuant to a Sale and Purchase Agreement dated April 9, 2015 (Quadrant SPA), the Company and its subsidiaries divested their remaining Australian operations to Quadrant Energy Pty Ltd (Quadrant). Closing occurred on June 5, 2015. In April 2017, the Company filed suit against Quadrant for breach of the Quadrant SPA. In its suit, the Company seeks approximately AUD $80 million. In December 2017, Quadrant filed a defense of equitable set-off to the Company’s claim and a counterclaim seeking approximately AUD $200 million in the aggregate. The Company believes that Quadrant’s claims lack merit and will not have a material adverse effect on the Company’s financial position, results of operation, or liquidity. Canadian Operations Divestiture Dispute Pursuant to a Sale and Purchase Agreement dated July 6, 2017 (Paramount SPA), the Company and its subsidiaries divested their remaining Canadian operations to Paramount Resources LTD (Paramount). Closing occurred on August 16, 2017. On September 11, 2019, four ex-employees of Apache Canada on behalf of themselves and individuals employed by Apache Canada LTD on July 6, 2017, filed an Amended Statement of Claim in a matter styled Stephen Flesch et. al. v Apache Corporation et. al ., No. 1901-09160 Court of Queen’s Bench of Alberta against the Company and others seeking class certification and a finding that the Paramount SPA amounted to a Change of Control of the Company, entitling them to accelerated vesting under the Company’s equity plans. In the suit, the purported class seeks approximately $60 million USD and punitive damages. The Company believes that Plaintiffs’ claims lack merit and will not have a material adverse effect on the Company’s financial position, results of operation, or liquidity. California and Delaware Litigation On July 17, 2017, in three separate actions, San Mateo County, California, Marin County, California, and the City of Imperial Beach, California, all filed suit individually and on behalf of the people of the state of California against over 30 oil and gas companies alleging damages as a result of global warming. Plaintiffs seek unspecified damages and abatement under various tort theories. On December 20, 2017, in two separate actions, the City of Santa Cruz and Santa Cruz County and in a separate action on January 22, 2018, the City of Richmond, filed similar lawsuits against many of the same defendants. On November 14, 2018, the Pacific Coast Federation of Fishermen’s Associations, Inc. also filed a similar lawsuit against many of the same defendants. After removal of all such lawsuits to federal court, the district court remanded them back to state court. The remand decision, and further activity in the cases, has been stayed pending further appellate review. On September 10, 2020, the State of Delaware filed suit, individually and on behalf of the people of the State of Delaware, against over 25 oil and gas companies alleging damages as a result of global warming. Plaintiffs seek unspecified damages and abatement under various tort theories. The Company believes that it is not subject to jurisdiction of the California courts and that claims made against it in the Delaware litigation are baseless. The Company intends to challenge jurisdiction in California and to vigorously defend the Delaware lawsuit. Castex Lawsuit In a case styled Apache Corporation v. Castex Offshore, Inc., et. al. , Cause No. 2015-48580, in the 113th Judicial District Court of Harris County, Texas, Castex filed claims for alleged damages of approximately $200 million, relating to overspend on the Belle Isle Gas Facility upgrade, and the drilling of five sidetracks on the Potomac #3 well. After a jury trial, a verdict of approximately $60 million, plus fees, costs and interest was entered against the Company. The Company’s appeal is pending. Oklahoma Class Actions The Company is a party to two purported class actions in Oklahoma styled Bigie Lee Rhea v. Apache Corporation , Case No. 6:14-cv-00433-JH, and Albert Steven Allen v. Apache Corporation , Case No. CJ-2019-00219. The Rhea case has been certified and includes a class of royalty owners seeking damages in excess of $250 million for alleged breach of the implied covenant to market relating to post-production deductions and alleged NGL uplift value. The Allen case has not been certified and seeks to represent a group of owners who have allegedly received late royalty and other payments under Oklahoma statutes. The amount of this claim is not yet reasonably determinable. While adverse judgments against the Company are possible, the Company intends to vigorously defend these lawsuits and claims. Stockholder Lawsuits On February 23, 2021, a case captioned Plymouth County Retirement System v. Apache Corporation, et al. was filed in the United States District Court for the Southern District of Texas (Houston Division) against the Company and certain current and former officers. The complaint, which is a shareholder lawsuit styled as a class action (1) alleges that the Company intentionally used unrealistic assumptions regarding the amount and composition of available oil and gas in Alpine High; (2) alleges that the Company did not have the proper infrastructure in place to safely and/or economically drill and/or transport those resources even if they existed in the amounts purported; (3) alleges that these statements and omissions artificially inflated the value of the Company’s operations in the Permian Basin; and (4) alleges that, as a result, the Company’s public statements were materially false and misleading. Other lawsuits have followed with similar allegations. The Company believes that all plaintiffs’ claims lack merit and intends to vigorously defend these lawsuits. Environmental Matters The Company, as an owner or lessee and operator of oil and gas properties, is subject to various federal, state, local, and foreign country laws and regulations relating to discharge of materials into, and protection of, the environment. These laws and regulations may, among other things, impose liability on the lessee under an oil and gas lease for the cost of pollution clean-up resulting from operations and subject the lessee to liability for pollution damages. In some instances, the Company may be directed to suspend or cease operations in the affected area. The Company maintains insurance coverage, which it believes is customary in the industry, although the Company is not fully insured against all environmental risks. The Company manages its exposure to environmental liabilities on properties to be acquired by identifying existing problems and assessing the potential liability. The Company also conducts periodic reviews, on a Company-wide basis, to identify changes in its environmental risk profile. These reviews evaluate whether there is a probable liability, the amount, and the likelihood that the liability will be incurred. The amount of any potential liability is determined by considering, among other matters, incremental direct costs of any likely remediation and the proportionate cost of employees who are expected to devote a significant amount of time directly to any possible remediation effort. As it relates to evaluations of purchased properties, depending on the extent of an identified environmental problem, the Company may exclude a property from the acquisition, require the seller to remediate the property to the Company’s satisfaction, or agree to assume liability for the remediation of the property. The Company’s general policy is to limit any reserve additions to any incidents or sites that are considered probable to result in an expected remediation cost exceeding $300,000. Any environmental costs and liabilities that are not reserved for are treated as an expense when actually incurred. In the Company’s estimation, neither these expenses nor expenses related to training and compliance programs are likely to have a material impact on its financial condition. As of December 31, 2020, the Company had an undiscounted reserve for environmental remediation of approximately $2 million. On September 11, 2020, the Company received a Notice of Violation and Finding of Violation, and accompanying Clean Air Act Information Request, from the U.S. Environmental Protection Agency (EPA) following site inspections in April 2019 at several of the Company’s oil and natural gas production facilities in Lea and Eddy Counties, New Mexico. The notice and information request involve alleged emissions control and reporting violations. The Company is cooperating with the EPA and responding to the information request. The EPA has not commenced enforcement proceedings, and at this time the Company is unable to reasonably estimate whether such proceedings will result in monetary sanctions and, if so, whether they would be more or less than $100,000, exclusive of interest and costs. Additionally, on December 29, 2020, the Company received a Notice of Violation and Opportunity to Confer, and accompanying Clean Air Act Information Request, from the EPA relating to several of the Company’s oil and natural gas production facilities in Reeves County, Texas. The notice and information request involve alleged emissions control and reporting violations. The Company is cooperating with the EPA and responding to the information request. The EPA has not commenced enforcement proceedings, and at this time the Company is unable to reasonably estimate whether such proceedings will result in monetary sanctions and, if so, whether they would be more or less than $100,000, exclusive of interest and costs. The Company is not aware of any environmental claims existing as of December 31, 2020 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. Potential Asset Retirement Obligations In 2013, the Company sold its Gulf of Mexico Shelf operations and properties (Transferred Assets) to Fieldwood Energy LLC (Fieldwood). Under the terms of the purchase agreement, the Company received cash consideration of $3.75 billion and Fieldwood assumed $1.5 billion of discounted asset abandonment liabilities as of the disposition date. In respect of such abandonment liabilities, Fieldwood posted letters of credit in favor of the Company (Letters of Credit) and established a trust account (Trust A), which is funded by a 10 percent net profits interest depending on future oil prices and of which the Company is the beneficiary. On February 14, 2018, Fieldwood filed for protection under Chapter 11 of the U.S. Bankruptcy Code. In connection with the 2018 bankruptcy, Fieldwood confirmed a plan under which the Company agreed, inter alia, to accept bonds in exchange for certain of the Letters of Credit. Currently, the Company holds two bonds (Bonds) and the remaining Letters of Credit to secure Fieldwood’s asset retirement obligations (AROs) on the Transferred Assets as and when such abandonment and decommissioning obligations are required to be performed over the remaining life of the Transferred Assets. On August 3, 2020, Fieldwood again filed for protection under Chapter 11 of the U.S. Bankruptcy Code. Fieldwood has submitted a plan of reorganization, and the Company has been engaged in discussions with Fieldwood and other interested parties regarding such plan. If approved by the bankruptcy court, the submitted plan would separate the Transferred Assets into a standalone company, and proceeds of production of the Transferred Assets will be used for the AROs. If the proceeds of production are insufficient for such AROs, then Apache expects that it may be required by the relevant governmental authorities to perform such AROs, in which case it will apply the Bonds, remaining Letters of Credit, and Trust A to pay for the AROs. In addition, after such sources have been exhausted, Apache has agreed to provide a standby loan of up to $400 million for the new company to perform decommissioning, with such standby loan secured by a first and prior lien on the Transferred Assets. If the foregoing is insufficient, the Company may be forced to use available cash to cover any additional costs it incurs for performing such AROs. Leases and Contractual Obligations On January 1, 2019, Apache adopted ASU 2016-02, “Leases (Topic 842),” which requires lessees to recognize separate right-of-use (ROU) assets and lease liabilities for most leases classified as operating leases under previous GAAP. As allowed under the standard, the Company applied practical expedients permitting an entity the option to not evaluate under ASU 2016-02 those existing or expired land easements that were not previously accounted for as leases, as well as permitting an entity the option to carry forward its historical assessments of whether existing agreements contain a lease, classification of existing lease agreements, and treatment of initial direct lease costs. The Company determines if an arrangement is an operating or finance lease at the inception of each contract. If the contract is classified as an operating lease, Apache records an ROU asset and corresponding liability reflecting the total remaining present value of fixed lease payments over the expected term of the lease agreement. The expected term of the lease may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. If the Company’s lease does not provide an implicit rate in the contract, the Company uses its incremental borrowing rate when calculating the present value. In the normal course of business, Apache enters into various lease agreements for real estate, drilling rigs, vessels, aircrafts, and equipment related to its exploration and development activities, which are typically classified as operating leases under the provisions of the standard. ROU assets are reflected within “Deferred charges and other” within “Other” assets on the Company’s consolidated balance sheet, and the associated operating lease liabilities are reflected within “Other current liabilities” and “Other” within “Deferred Credits and Other Noncurrent Liabilities,” as applicable. Operating lease expense associated with ROU assets is recognized on a straight-line basis over the lease term. Lease expense is reflected on the statement of consolidated operations commensurate with the leased activities and nature of the services performed. Gross fixed operating lease expense, inclusive of amounts billable to partners and other working interest owners, was $149 million and $222 million in 2020 and 2019, respectively. Apache elected to exclude short-term leases (those with terms of 12 months or less) from the balance sheet presentation. Costs incurred for short-term leases, which is primarily related to drilling activities in Block 58 offshore Suriname, was $80 million and $18 million in 2020 and 2019, respectively. In addition, the Company periodically enters into finance leases that are similar to those leases classified as capital leases under previous GAAP. Finance lease assets are included in “Other” within “Property and Equipment” on the consolidated balance sheet, and the associated finance lease liabilities are reflected within “Current debt” and “Long-term debt,” as applicable. Depreciation on the Company’s finance lease asset was $2 million and $7 million in 2020 and 2019, respectively. Interest on the Company’s finance lease assets was $2 million and $3 million in 2020 and 2019, respectively. The following table represents the Company’s weighted average lease term and discount rate as of December 31, 2020: Operating Leases Finance Leases Weighted average remaining lease term 3.7 years 12.7 years Weighted average discount rate 4.2 % 4.4 % At December 31, 2020, contractual obligations for long-term operating leases, finance leases, and purchase obligations are as follows: Net Minimum Commitments (1) Operating Leases (2) Finance Leases (3) Purchase Obligations (4) (In millions) 2021 $ 120 $ 3 $ 236 2022 70 3 203 2023 33 3 203 2024 27 4 160 2025 7 4 159 Thereafter 25 29 600 Total future minimum payments 282 46 $ 1,561 Less: imputed interest (21) (8) N/A Total lease liabilities 261 38 N/A Current portion 116 2 N/A Non-current portion $ 145 $ 36 N/A (1) Excludes commitments for jointly owned fields and facilities for which the Company is not the operator. (2) Amounts represent future payments associated with oil and gas operations inclusive of amounts billable to partners and other working interest owners. Such payments may be capitalized as a component of oil and gas properties and subsequently depreciated, impaired, or written off as exploration expense. (3) Amounts represent the Company’s finance lease obligation related to the Company’s Midland, Texas regional office building. (4) Amounts represent any agreement to purchase goods or services that are enforceable and legally binding and that specify all significant terms. These include minimum commitments associated with take-or-pay contracts, NGL processing agreements, drilling work program commitments, and agreements to secure capacity rights on third-party pipelines. Amounts exclude certain product purchase obligations related to marketing and trading activities for which there are no minimum purchase requirements or the amounts are not fixed or determinable. Total costs incurred under take-or-pay and throughput obligations were $120 million, $111 million, and $132 million in 2020, 2019, and 2018, respectively. The lease liability reflected in the table above represents the Company’s fixed minimum payments that are settled in accordance with the lease terms. Actual lease payments during the period may also include variable lease components such as common area maintenance, usage-based sales taxes and rate differentials, or other similar costs that are not determinable at the inception of the lease. Gross variable lease payments, inclusive of amounts billable to partners and other working interest owners was $41 million and $78 million in 2020 and 2019, respectively. As a result of electing the transitional practical expedient to apply the provisions of the standard at its adoption date instead of the earliest comparative period presented, below are the required ASU Leases (Topic 840) disclosures for prior periods: Operating Leases (1) Finance Leases (2) (In millions) Year ended December 31, 2018 2019 $ 61 $ 1 2020-2021 64 3 2022-2023 53 4 2024 & Beyond 42 32 Total $ 220 $ 40 (1) Includes leases for buildings, facilities, and related equipment with varying expiration dates through 2042. Total rent expense, net of amounts capitalized and sublease income was $76 million in 2018. (2) This represents the Company’s capital lease obligation related to its Midland, Texas office building. The imputed interest rate necessary to reduce the net minimum lease payments to present value of the lease term is 4.4 percent, or $16 million as of December 31, 2018. |
RETIREMENT AND DEFERRED COMPENS
RETIREMENT AND DEFERRED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
RETIREMENT AND DEFERRED COMPENSATION PLANS | RETIREMENT AND DEFERRED COMPENSATION PLANS Apache Corporation provides retirement benefits to its U.S. employees through the use of multiple plans: a 401(k) savings plan, a money purchase retirement plan, a non-qualified retirement savings plan, and a non-qualified restorative retirement savings plan. The 401(k) savings plan provides participating employees the ability to elect to contribute up to 50 percent of eligible compensation, as defined, to the plan with the Company making matching contributions up to a maximum of 8 percent of each employee’s annual eligible compensation. In addition, the Company contributes 6 percent of each participating employee’s annual eligible compensation to a money purchase retirement plan. The 401(k) savings plan and the money purchase retirement plan are subject to certain annually-adjusted, government-mandated restrictions that limit the amount of employee and Company contributions. For certain eligible employees, the Company also provides a non-qualified retirement savings plan or a non-qualified restorative retirement savings plan. These plans allow the deferral of up to 50 percent of eligible employee’s base salary, up to 75 percent of each employee’s annual bonus (that accepts employee contributions) and the Company’s matching contributions in excess of the government mandated limitations imposed in the 401(k) savings plan and money purchase retirement plan. Vesting in the Company’s contributions in the 401(k) savings plan, the money purchase retirement plan, the non-qualified retirement savings plan and the non-qualified restorative retirement savings plan occurs at the rate of 20 percent for every completed year of employment. Upon a change in control of ownership of Apache Corporation, immediate and full vesting occurs. Additionally, Apache North Sea Limited maintains a separate retirement plan, as required under the laws of the U.K. The aggregate annual cost to Apache of all U.S. and international savings plans, the money purchase retirement plan, non-qualified retirement savings plan, and non-qualified restorative retirement savings plan was $43 million, $52 million, and $52 million for 2020, 2019, and 2018, respectively. Apache also provides a funded noncontributory defined benefit pension plan (U.K. Pension Plan) covering certain employees of the Company’s North Sea operations in the U.K. The plan provides defined pension benefits based on years of service and final salary. The plan applies only to employees who were part of BP North Sea’s pension plan as of April 2, 2003, prior to the acquisition of BP North Sea by the Company effective July 1, 2003. Additionally, the Company offers postretirement medical benefits to U.S. employees who meet certain eligibility requirements. Eligible participants receive medical benefits up until the age of 65 or at the date they become eligible for Medicare, provided the participant remits the required portion of the cost of coverage. The plan is contributory with participants’ contributions adjusted annually. The postretirement benefit plan does not cover benefit expenses once a covered participant becomes eligible for Medicare. The following tables set forth the benefit obligation, fair value of plan assets and funded status as of December 31, 2020, 2019, and 2018, and the underlying weighted average actuarial assumptions used for the U.K. Pension Plan and U.S. postretirement benefit plan. Apache uses a measurement date of December 31 for its pension and postretirement benefit plans. 2020 2019 2018 Pension Postretirement Pension Postretirement Pension Postretirement (In millions) Change in Projected Benefit Obligation Projected benefit obligation at beginning of year $ 199 $ 20 $ 187 $ 27 $ 216 $ 27 Service cost 3 1 3 2 4 2 Interest cost 4 — 5 1 5 1 Foreign currency exchange rates 8 — 7 — (11) — Actuarial losses (gains) 30 1 15 (9) (11) (2) Plan settlements — — (14) — (11) — Benefits paid (11) (4) (4) (2) (5) (3) Retiree contributions — 2 — 1 — 2 Projected benefit obligation at end of year 233 20 199 20 187 27 Change in Plan Assets Fair value of plan assets at beginning of year 228 — 208 — 238 — Actual return on plan assets 31 — 25 — (6) — Foreign currency exchange rates 9 — 8 — (13) — Employer contributions 5 2 5 1 5 2 Plan settlements — — (14) — (11) — Benefits paid (11) (4) (4) (2) (5) (4) Retiree contributions — 2 — 1 — 2 Fair value of plan assets at end of year 262 — 228 — 208 — Funded status at end of year $ 29 $ (20) $ 29 $ (20) $ 21 $ (27) Amounts recognized in Consolidated Balance Sheet Current liability $ — $ (2) $ — $ (2) $ — $ (2) Non-current asset (liability) 29 (18) 29 (18) 21 (25) $ 29 $ (20) $ 29 $ (20) $ 21 $ (27) Pre-tax Amounts Recognized in Accumulated Other Comprehensive Income (Loss) Accumulated gain (loss) $ (11) $ 16 $ (7) $ 19 $ (13) $ 10 Weighted Average Assumptions used as of December 31 Discount rate 1.40 % 2.06 % 2.10 % 3.00 % 2.90 % 4.13 % Salary increases 4.50 % N/A 4.30 % N/A 4.70 % N/A Expected return on assets 2.20 % N/A 2.20 % N/A 2.80 % N/A Healthcare cost trend Initial N/A 6.00 % N/A 6.25 % N/A 6.50 % Ultimate in 2025 N/A 5.00 % N/A 5.00 % N/A 5.00 % As of December 31, 2020, 2019, and 2018, the accumulated benefit obligation for the U.K. Pension Plan was $207 million, $181 million, and $167 million, respectively. Apache’s defined benefit pension plan assets are held by a non-related trustee who has been instructed to invest the assets in a blend of equity securities and low-risk debt securities. The Company intends that this blend of investments will provide a reasonable rate of return such that the benefits promised to members are provided. The U.K. Pension Plan policy is to target an ongoing funding level of 100 percent through prudent investments and includes policies and strategies such as investment goals, risk management practices, and permitted and prohibited investments. A breakout of previous allocations for plan asset holdings and the target allocation for the Company’s plan assets are summarized below: Target Percentage of 2020 2020 2019 Asset Category Equity securities: Overseas quoted equities 19 % 19 % 23 % Total equity securities 19 % 19 % 23 % Debt securities: U.K. government bonds 65 % 64 % 62 % U.K. corporate bonds 16 % 16 % 15 % Total debt securities 81 % 80 % 77 % Cash — 1 % — Total 100 % 100 % 100 % The plan’s assets do not include any direct ownership of equity or debt securities of Apache. The fair value of plan assets at December 31, 2020 and 2019 are based upon unadjusted quoted prices for identical instruments in active markets, which is a Level 1 fair value measurement. The following tables present the fair values of plan assets for each major asset category based on the nature and significant concentration of risks in plan assets at December 31, 2020 and 2019: December 31, 2020 2019 (In millions) Equity securities: Overseas quoted equities $ 49 $ 52 Total equity securities 49 52 Debt securities: U.K. government bonds 168 140 U.K. corporate bonds 43 35 Total debt securities 211 175 Cash 2 1 Fair value of plan assets $ 262 $ 228 The expected long-term rate of return on assets assumptions are derived relative to the yield on long-dated fixed-interest bonds issued by the U.K. government (gilts). For equities, outperformance relative to gilts is assumed to be 3.5 percent per year. The following tables set forth the components of the net periodic cost and the underlying weighted average actuarial assumptions used for the pension and postretirement benefit plans as of December 31, 2020, 2019, and 2018: 2020 2019 2018 Pension Postretirement Pension Postretirement Pension Postretirement (In millions) Components of Net Periodic Benefit Cost Service cost $ 3 $ 1 $ 3 $ 2 $ 4 $ 2 Interest cost 4 — 5 1 5 1 Expected return on assets (5) — (5) — (7) — Amortization of gain — (1) — (1) — — Settlement loss — — — — 1 — Net periodic benefit cost $ 2 $ — $ 3 $ 2 $ 3 $ 3 Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for the Years Ended December 31 Discount rate 2.10 % 3.00 % 2.90 % 4.13 % 2.60 % 3.44 % Salary increases 4.30 % N/A 4.70 % N/A 4.70 % N/A Expected return on assets 2.20 % N/A 2.80 % N/A 2.90 % N/A Healthcare cost trend Initial N/A 6.25 % N/A 6.50 % N/A 6.75 % Ultimate in 2025 N/A 5.00 % N/A 5.00 % N/A 5.00 % Apache expects to contribute approximately $5 million to its pension plan and $2 million to its postretirement benefit plan in 2021. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Pension Postretirement (In millions) 2021 $ 5 $ 2 2022 6 2 2023 7 2 2024 6 2 2025 6 2 Years 2026-2030 36 6 |
REDEMABLE NONCONTROLLING INTERE
REDEMABLE NONCONTROLLING INTEREST - ALTUS | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
REDEMABLE NONCONTROLLING INTEREST - ALTUS | REDEEMABLE NONCONTROLLING INTEREST - ALTUS Preferred Units Issuance On June 12, 2019, Altus Midstream LP issued and sold Preferred Units for an aggregate issue price of $625 million in a private offering exempt from the registration requirements of the Securities Act of 1933, as amended (the Closing). Altus Midstream LP received approximately $611 million in cash proceeds from the sale after deducting transaction costs and discounts to certain purchasers. Pursuant to the partnership agreement of Altus Midstream LP: • The Preferred Units bear quarterly distributions at a rate of 7 percent per annum, increasing to 10 percent per annum after the fifth anniversary of Closing and upon the occurrence of specified events. Altus Midstream LP may pay distributions in-kind for the first six quarters after the Preferred Units are issued. • The Preferred Units are redeemable at Altus Midstream LP’s option at any time in cash at a redemption price (the Redemption Price) equal to the greater of an 11.5 percent internal rate of return (increasing after the fifth anniversary of Closing to 13.75 percent) and a 1.3x multiple of invested capital. The Preferred Units will be redeemable at the holder’s option upon a change of control or liquidation of Altus Midstream LP and certain other events, including certain asset dispositions. • The Preferred Units will be exchangeable for shares of ALTM’s Class A common stock at the holder’s election after the seventh anniversary of Closing or upon the occurrence of specified events. Each Preferred Unit will be exchangeable for a number of shares of ALTM’s Class A common stock equal to the Redemption Price divided by the volume-weighted average trading price of ALTM’s Class A common stock on the Nasdaq Capital Market for the 20 trading days immediately preceding the second trading day prior to the applicable exchange date, less a 6 percent discount. • Each outstanding Preferred Unit has a liquidation preference equal to the Redemption Price payable before any amounts are paid in respect of Altus Midstream LP’s common units and any other units that rank junior to the Preferred Units with respect to distributions or distributions upon liquidation. • Preferred Units holders have rights to approve certain partnership business, financial, and governance-related matters. • Altus Midstream LP is restricted from declaring or making cash distributions on its common units until all required distributions on the Preferred Units have been paid. In addition, before the fifth anniversary of Closing, aggregate cash distributions on, and redemptions of, Altus Midstream LP’s common units are limited to $650 million of cash from ordinary course operations if permitted under its credit facility. Cash distributions on, and redemptions of, Altus Midstream LP’s common units also are subject to satisfaction of leverage ratio requirements specified in its partnership agreement. Classification The Preferred Units are accounted for on the Company’s consolidated balance sheets as a redeemable noncontrolling interest classified as temporary equity based on the terms of the Preferred Units, including the redemption rights with respect thereto. Initial Measurement Altus recorded the net transaction price of $611 million, calculated as the negotiated transaction price of $625 million, less issue discounts of $4 million and transaction costs totaling $10 million. Certain redemption features embedded within the terms of the Preferred Units require bifurcation and measurement at fair value. Altus bifurcated and recognized at fair value an embedded derivative related to the Preferred Units at inception of $94 million for a redemption option of the Preferred Unit holders. The derivative is reflected in “Other” within “Deferred Credits and Other Noncurrent Liabilities” on the Company’s consolidated balance sheet at its current fair value of $139 million as of December 31, 2020. The fair value of the embedded derivative, a Level 3 fair value measurement, was based on numerous factors including expected future interest rates using the Black-Karasinski model, Altus’ imputed interest rate, the timing of periodic cash distributions, and dividend yields of the Preferred Units. See Note 4—Derivative Instruments and Hedging Activities for more detail. The net transaction price was allocated to the preferred redeemable noncontrolling interest and the embedded features according to the associated initial fair value measurements as follows: June 12, 2019 (In millions) Redeemable noncontrolling interest - Altus Preferred Unit limited partners $ 517 Preferred Units embedded derivative 94 $ 611 Subsequent Measurement Altus applies a two-step approach to subsequent measurement of the redeemable noncontrolling interest related to the Preferred Units by first allocating a portion of the net income of Altus Midstream LP in accordance with the terms of the partnership agreement. An additional adjustment to the carrying value of the Preferred Unit redeemable noncontrolling interest at each period end may be recorded, if applicable. The amount of such adjustment is determined based upon the accreted value method to reflect the passage of time until the Preferred Units are exchangeable at the option of the holder. Pursuant to this method, the net transaction price is accreted using the effective interest method to the Redemption Price calculated at the seventh anniversary of the Closing. The total adjustment is limited to an amount such that the carrying amount of the Preferred Unit redeemable noncontrolling interest at each period end is equal to the greater of (a) the sum of (i) the carrying amount of the Preferred Units, plus (ii) the fair value of the embedded derivative liability and (b) the accreted value of the net transaction price. Activity related to the Preferred Units for the years ended December 31, 2020 and 2019 is as follows: Units Outstanding Financial Position (1) (In millions, except unit data) Redeemable noncontrolling interest — Preferred Units: at December 31, 2018 — $ — Issuance of Preferred Units, net 625,000 517 Distribution of in-kind additional Preferred Units 13,163 — Allocation of Altus Midstream net income N/A 38 Redeemable noncontrolling interest - Altus Preferred Unit limited partners: at December 31, 2019 638,163 555 Distribution of in-kind additional Preferred Units 22,531 — Cash distributions to Altus Preferred Unit limited partners — (23) Allocation of Altus Midstream LP net income N/A 76 Redeemable noncontrolling interest - Altus Preferred Unit limited partners: at December 31, 2020 660,694 608 Preferred Units embedded derivative 139 $ 747 (1) The Preferred Units are redeemable at Altus Midstream’s option at a redemption price (the Redemption Price), which as of December 31, 2020 was the greater of (i) an 11.5 percent internal rate of return and (ii) a 1.3 times multiple of invested capital. As of December 31, 2020, the Redemption Price would have been based on 1.3 times multiple of invested capital, which was $813 million and greater than using an 11.5 percent internal rate of return, which was $717 million. N/A - not applicable. Common Stock Outstanding The following table provides changes to the Company’s common shares outstanding for the years ended December 31, 2020, 2019, and 2018: For the Year Ended December 31, 2020 2019 2018 Balance, beginning of year 376,062,670 374,696,222 380,954,864 Shares issued for stock-based compensation plans: Treasury shares issued 17,448 31,701 2,454 Common shares issued 1,402,512 1,334,747 1,566,237 Treasury shares acquired — — (7,827,333) Balance, end of year 377,482,630 376,062,670 374,696,222 Net Income (Loss) per Common Share The following table provides a reconciliation of the components of basic and diluted net income (loss) per common share for the years ended December 31, 2020, 2019, and 2018: 2020 2019 2018 Loss Shares Per Share Loss Shares Per Share Income Shares Per Share (In millions, except per share amounts) Basic: Income (loss) attributable to common stock $ (4,860) 378 $ (12.86) $ (3,553) 377 $ (9.43) $ 40 382 $ 0.11 Effect of Dilutive Securities: Stock options and other $ — — $ — $ — — $ — $ — 2 $ — Diluted: Income (loss) attributable to common stock $ (4,860) 378 $ (12.86) $ (3,553) 377 $ (9.43) $ 40 384 $ 0.11 The diluted EPS calculation excludes options and restricted shares that were anti-dilutive totaling 4.5 million, 5.0 million, and 5.6 million for the years ended December 31, 2020, 2019, and 2018, respectively. The impact to net income (loss) attributable to common stock on an assumed conversion of the redeemable noncontrolling Preferred Units interest in Altus Midstream LP was anti-dilutive for the years ended December 31, 2020 and 2019. Stock Repurchase Program In 2013 and 2014, Apache’s Board of Directors 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 held negotiated transactions. The Company initiated the buyback program on June 10, 2013, and, through December 31, 2020, had repurchased a total of 40 million shares at an average price of $79.18 per share. During the fourth quarter of 2018, the Company’s Board of Directors authorized the purchase of up to 40 million additional shares of the Company’s common stock. The Company is not obligated to acquire any specific number of shares and did not purchase any shares during the year ended December 31, 2020. Common Stock Dividend In the first quarter of 2020, the Board of Directors approved a reduction in the Company’s quarterly dividends from $0.25 per share to $0.025 per share, effective for all dividends payable after March 12, 2020. For the year ended December 31, 2020, the Company declared common stock dividends of $0.10 per share. For each of the years ended December 31, 2019 and 2018, the Company declared common stock dividends of $1.00 per share. Stock Compensation Plans The Company maintains several stock-based compensation plans, which include stock options, restricted stock, and conditional restricted stock unit plans. On May 12, 2016, the Company’s shareholders approved the 2016 Omnibus Compensation Plan (the 2016 Plan), which is used to provide eligible employees with equity-based incentives by granting incentive stock options, non-qualified stock options, performance awards, restricted stock awards, restricted stock units, stock appreciation rights, cash awards, or any combination of the foregoing. As of December 31, 2020, 14.1 million shares were authorized and available for grant under the 2016 Plan. Previously approved plans remain in effect solely for the purpose of governing grants still outstanding that were issued prior to approval of the 2016 Plan. All new grants are issued from the 2016 Plan. In 2018, the Company began issuing cash-settled awards (phantom units) under the restricted stock and conditional restricted stock unit plans. The phantom units represent a hypothetical interest in the Company’s stock and, once vested, are settled in cash. Costs related to the plans are capitalized or expensed to “Lease operating expenses,” “Exploration,” or “General and administrative” in the Company’s statement of consolidated operations based on the nature of each employee’s activities. The following table summarizes the Company’s stock-settled and cash-settled compensation costs: For the Year Ended December 31, 2020 2019 2018 (In millions) Stock-settled and cash-settled compensation expensed $ 40 $ 110 $ 157 Stock-settled and cash-settled compensation capitalized 7 28 37 Total stock-settled and cash-settled compensation costs $ 47 $ 138 $ 194 Stock Options As of December 31, 2020, the Company had outstanding options to purchase shares of its common stock under the 2016 Plan, the 2011 Omnibus Equity Compensation Plan (the 2011 Plan), and the 2007 Omnibus Equity Compensation Plan (the 2007 Plan), (collectively, the Omnibus Plans). The Omnibus Plans were submitted to and approved by the Company’s shareholders. New shares of common stock will be issued for employee stock option exercises. Under the Omnibus Plans, the exercise price of each option equals the closing price of Apache’s common stock on the date of grant. Options granted become exercisable ratably over a three-year period and expire 10 years after granted. The following table summarizes stock option activity for the years ended December 31, 2020, 2019, and 2018: 2020 2019 2018 Shares Weighted Average Shares Weighted Average Shares Weighted Average (In thousands, except exercise price amounts) Outstanding, beginning of year 4,298 $ 75.24 4,872 $ 75.95 4,593 $ 83.36 Granted — — — — 812 45.93 Exercised — — — — (29) 41.79 Forfeited (37) 44.98 (80) 34.58 (121) 74.58 Expired (724) 92.14 (494) 88.82 (383) 104.21 Outstanding, end of year (1) 3,537 72.10 4,298 75.24 4,872 75.95 Expected to vest (2) 150 45.77 495 49.11 1,274 48.74 Exercisable, end of year (3) 3,387 73.26 3,803 78.64 3,598 85.59 (1) As of December 31, 2020, options outstanding had a weighted average remaining contractual life of 3.6 years and no intrinsic value. (2) As of December 31, 2020, options expected to vest had a weighted average remaining contractual life of 7.0 years and no intrinsic value. (3) As of December 31, 2020, options exercisable had a weighted average remaining contractual life of 3.4 years and no intrinsic value. The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing model, a Level 2 fair value measurement. The following table summarizes specific assumptions used in the Company’s valuation: 2020 2019 2018 Expected volatility N/A N/A 33.74% Expected dividend yields N/A N/A 2.16% Expected term (in years) N/A N/A 6 Risk-free rate N/A N/A 2.42% Weighted-average grant-date fair value N/A N/A $ 13.15 N/A - not applicable. Assumptions related to the expected volatilities are based on the Company’s historical volatility of its common stock and other factors. The expected dividend yield is based on historical yields on the date of grant. The expected term of stock options granted represents the period of time that the stock options are expected to be outstanding and is derived from historical exercise behavior, current trends, and values derived from lattice-based models. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. There were no options issued and no options exercised during the years ended December 31, 2020 and 2019. The intrinsic values of options exercised during the year ended December 31, 2018 was approximately $0.1 million. As of December 31, 2020, total compensation cost related to non-vested options not yet recognized was nil because they fully vest on January 5, 2021. Restricted Stock Units and Restricted Stock Phantom Units The Company has restricted stock unit and restricted stock phantom unit plans for eligible employees, including officers. The value of the stock-settled restricted stock unit awards is established by the market price on the date of grant and is recorded as compensation expense ratably over the vesting terms. The restricted stock phantom unit awards represent a hypothetical interest in either the Company’s stock or in ALTM’s common stock, as applicable, and, once vested, are settled in cash. Compensation expense related to the cash-settled awards is recorded as a liability and remeasured at the end of each reporting period over the applicable vesting term. The cash-settled awards compensation expense is recorded as a liability and remeasured at the end of each reporting period over the applicable vesting term. For the years ended December 31, 2020, 2019, and 2018, compensation costs charged to expense for the restricted stock units and restricted stock phantom units was $39 million, $104 million, and $101 million, respectively. As of December 31, 2020, 2019, and 2018, capitalized compensation costs for the restricted stock units and restricted stock phantom units were $6 million, $24 million, and $29 million, respectively. The following table summarizes stock-settled restricted stock unit activity for the years ended December 31, 2020, 2019, and 2018: 2020 2019 2018 Units Weighted Units Weighted Units Weighted (In thousands, except per share amounts) Non-vested, beginning of year 2,448 $ 46.65 3,153 $ 55.54 4,920 $ 56.67 Granted 1,352 24.60 1,479 36.81 608 45.59 Vested (3) (1,933) 48.65 (1,899) 53.99 (2,023) 55.10 Forfeited (315) 30.09 (285) 45.06 (352) 56.69 Non-vested, end of year (1)(2) 1,552 28.43 2,448 46.65 3,153 55.54 (1) As of December 31, 2020, there was $14 million of total unrecognized compensation cost related to 1,551,807 unvested stock-settled restricted stock units. (2) As of December 31, 2020, the weighted-average remaining life of unvested stock-settled restricted stock units is approximately 0.7 years. (3) The grant date fair values of the stock-settled awards vested during 2020, 2019, and 2018 were approximately $94 million, $103 million, and $111 million, respectively. The following table summarizes cash-settled restricted stock phantom unit activity for the years ended December 31, 2020, 2019, and 2018: For the Year Ended December 31, 2020 2019 2018 (In thousands) Non-vested, beginning of year 5,384 1,818 59 Adjustment for ALTM reverse stock split (1) (1,246) — — Granted (2) 3,462 4,831 1,973 Vested (1,618) (616) (38) Forfeited (1,559) (649) (176) Non-vested, end of year (3) 4,423 5,384 1,818 (1) On June 30, 2020, Altus executed a 1-for-20 reverse stock split of its outstanding common stock. Outstanding cash-settled awards are based on the per-share market price of ALTM stock. (2) Restricted stock phantom units granted during 2020 and 2019 included 3,378,486 and 3,401,477 awards, respectively, based on the per-share market price of Apache common stock and 83,239 and 1,429,135 awards, respectively, based on the per-share market price of ALTM common stock. The restricted stock phantom units granted during 2020 based on ALTM’s per-share market price reflect the 1-for-20 reverse stock split described above. (3) The outstanding liability for the unvested cash-settled restricted stock phantom units that had not been recognized as of December 31, 2020 was approximately $28 million. In January 2021, the Company awarded 1,354,349 restricted stock units and 4,360,656 restricted stock phantom units based on Apache’s weighted-average per-share market price of $16.18 under the 2016 Plan to eligible employees. Total compensation cost for the restricted stock units and the restricted stock phantom units, absent any forfeitures, is estimated to be $22 million and $71 million, respectively, and was calculated based on the per-share fair market value of a share of the Company’s common stock as of the grant date. Compensation cost will be recognized over a three-year vesting period for both plans. The phantom units will be classified as a liability and remeasured at the end of each reporting period based on the change in fair value of one share of the Company’s common stock. Also during January 2021, the Company awarded 56,836 restricted stock phantom units based on ALTM’s weighted-average per-share market price of $48.84. The restricted stock phantom units represent a hypothetical interest in ALTM’s common stock and, once vested, are settled in cash. Total compensation cost for these restricted stock phantom units, absent any forfeitures, is estimated to be $3 million and was calculated based on the fair market value of ALTM’s common stock as of the grant date. The restricted stock phantom units will be classified as a liability and remeasured at the end of each reporting period based on the change in fair value of one share of ALTM’s common stock. Performance Program To provide long-term incentives for the Company’s employees to deliver competitive shareholder returns, the Company makes annual grants of conditional restricted stock units to eligible employees. Apache has a performance program for certain eligible employees with payout for 50 percent of the shares based upon measurement of total shareholder return (TSR) of Apache common stock as compared to a designated peer group during a three-year performance period. Payout for the remaining 50 percent of the shares is based on performance and financial objectives as defined in the plan. The overall results of the objectives are calculated at the end of the award’s stated performance period and, if a payout is warranted, applied to the target number of restricted stock units awarded. The performance shares will immediately vest 50 percent at the end of the three-year performance period, with the remaining 50 percent vesting at the end of the following year. Grants from the performance programs outstanding at December 31, 2020, are as described below: • In January 2017, the Company’s Board of Directors approved the 2017 Performance Program, pursuant to the 2016 Plan. Eligible employees received initial stock-settled conditional restricted stock unit awards totaling 620,885 units. A total of 111,126 restricted stock units were outstanding as of December 31, 2020. The results for the performance period yielded a payout of 54 percent of target. • In January 2018, the Company’s Board of Directors approved the 2018 Performance Program, pursuant to the 2016 Plan. Eligible employees received initial cash-settled conditional phantom units totaling 931,049 units. A total of 704,483 phantom units were outstanding as of December 31, 2020. The results for the performance period yielded a payout of 23 percent of target. • In January 2019, the Company’s Board of Directors approved the 2019 Performance Program, pursuant to the 2016 Plan. Eligible employees received initial cash-settled conditional phantom units totaling 1,679,832 units. The actual amount of phantom units awarded will be between zero and 200 percent of target. A total of 1,301,893 phantom units were outstanding as of December 31, 2020, from which a minimum of zero to a maximum of 2,603,786 phantom units could be awarded. • In January 2020, the Company’s Board of Directors approved the 2020 Performance Program, pursuant to the 2016 Plan. Eligible employees received initial cash-settled conditional phantom units totaling 1,687,307 units. The actual amount of phantom units awarded will be between zero and 200 percent of target. A total of 1,410,404 phantom units were outstanding as of December 31, 2020, from which a minimum of zero to a maximum of 2,820,808 phantom units could be awarded. The fair value cost of the stock-settled awards was estimated on the date of grant and is recorded as compensation expense ratably over the applicable vesting term. The fair value of the cash-settled awards is remeasured at the end of each reporting period over the applicable vesting term. Compensation cost charged to expense under the performance programs was a credit of $8 million during 2020 and expenses of $24 million and $38 million during 2019 and 2018, respectively. Capitalized compensation costs under the performance programs was a credit of $1 million during 2020 and expenses of $3 million and $7 million during 2019 and 2018, respectively. The following table summarizes stock-settled conditional restricted stock unit activity for the year ended December 31, 2020: Units Weighted Average Grant- Date Fair Value (1) (In thousands) Non-vested, beginning of year 781 $ 52.69 Granted 18 62.31 Vested (445) 41.10 Forfeited (16) 56.66 Expired (227) 70.70 Non-vested, end of year (2)(3) 111 63.15 (1) The fair value of each conditional restricted stock unit award is estimated as of the date of grant using a Monte Carlo simulation with the following assumptions used for all grants made under the plan: (i) a three-year continuous risk-free interest rate; (ii) a constant volatility assumption based on the historical realized stock price volatility of the Company and the designated peer group; and (iii) the historical stock prices and expected dividends of the common stock of the Company and its designated peer group. (2) As of December 31, 2020, there was no unrecognized compensation cost related to 111,126 unvested stock-settled conditional restricted stock units. (3) As of December 31, 2020, the weighted-average remaining life of the unvested stock-settled conditional restricted stock units is approximately 0.0 years. The following table summarizes cash-settled conditional restricted stock unit activity for the year ended December 31, 2020: Units (In thousands) Non-vested, beginning of year 2,320 Granted 1,687 Vested (2) Forfeited (542) Expired (46) Non-vested, end of year (1) 3,417 (1) As of December 31, 2020, the outstanding liability for the unvested cash-settled conditional restricted stock units that had not been recognized was approximately $14 million. |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
CAPITAL STOCK | REDEEMABLE NONCONTROLLING INTEREST - ALTUS Preferred Units Issuance On June 12, 2019, Altus Midstream LP issued and sold Preferred Units for an aggregate issue price of $625 million in a private offering exempt from the registration requirements of the Securities Act of 1933, as amended (the Closing). Altus Midstream LP received approximately $611 million in cash proceeds from the sale after deducting transaction costs and discounts to certain purchasers. Pursuant to the partnership agreement of Altus Midstream LP: • The Preferred Units bear quarterly distributions at a rate of 7 percent per annum, increasing to 10 percent per annum after the fifth anniversary of Closing and upon the occurrence of specified events. Altus Midstream LP may pay distributions in-kind for the first six quarters after the Preferred Units are issued. • The Preferred Units are redeemable at Altus Midstream LP’s option at any time in cash at a redemption price (the Redemption Price) equal to the greater of an 11.5 percent internal rate of return (increasing after the fifth anniversary of Closing to 13.75 percent) and a 1.3x multiple of invested capital. The Preferred Units will be redeemable at the holder’s option upon a change of control or liquidation of Altus Midstream LP and certain other events, including certain asset dispositions. • The Preferred Units will be exchangeable for shares of ALTM’s Class A common stock at the holder’s election after the seventh anniversary of Closing or upon the occurrence of specified events. Each Preferred Unit will be exchangeable for a number of shares of ALTM’s Class A common stock equal to the Redemption Price divided by the volume-weighted average trading price of ALTM’s Class A common stock on the Nasdaq Capital Market for the 20 trading days immediately preceding the second trading day prior to the applicable exchange date, less a 6 percent discount. • Each outstanding Preferred Unit has a liquidation preference equal to the Redemption Price payable before any amounts are paid in respect of Altus Midstream LP’s common units and any other units that rank junior to the Preferred Units with respect to distributions or distributions upon liquidation. • Preferred Units holders have rights to approve certain partnership business, financial, and governance-related matters. • Altus Midstream LP is restricted from declaring or making cash distributions on its common units until all required distributions on the Preferred Units have been paid. In addition, before the fifth anniversary of Closing, aggregate cash distributions on, and redemptions of, Altus Midstream LP’s common units are limited to $650 million of cash from ordinary course operations if permitted under its credit facility. Cash distributions on, and redemptions of, Altus Midstream LP’s common units also are subject to satisfaction of leverage ratio requirements specified in its partnership agreement. Classification The Preferred Units are accounted for on the Company’s consolidated balance sheets as a redeemable noncontrolling interest classified as temporary equity based on the terms of the Preferred Units, including the redemption rights with respect thereto. Initial Measurement Altus recorded the net transaction price of $611 million, calculated as the negotiated transaction price of $625 million, less issue discounts of $4 million and transaction costs totaling $10 million. Certain redemption features embedded within the terms of the Preferred Units require bifurcation and measurement at fair value. Altus bifurcated and recognized at fair value an embedded derivative related to the Preferred Units at inception of $94 million for a redemption option of the Preferred Unit holders. The derivative is reflected in “Other” within “Deferred Credits and Other Noncurrent Liabilities” on the Company’s consolidated balance sheet at its current fair value of $139 million as of December 31, 2020. The fair value of the embedded derivative, a Level 3 fair value measurement, was based on numerous factors including expected future interest rates using the Black-Karasinski model, Altus’ imputed interest rate, the timing of periodic cash distributions, and dividend yields of the Preferred Units. See Note 4—Derivative Instruments and Hedging Activities for more detail. The net transaction price was allocated to the preferred redeemable noncontrolling interest and the embedded features according to the associated initial fair value measurements as follows: June 12, 2019 (In millions) Redeemable noncontrolling interest - Altus Preferred Unit limited partners $ 517 Preferred Units embedded derivative 94 $ 611 Subsequent Measurement Altus applies a two-step approach to subsequent measurement of the redeemable noncontrolling interest related to the Preferred Units by first allocating a portion of the net income of Altus Midstream LP in accordance with the terms of the partnership agreement. An additional adjustment to the carrying value of the Preferred Unit redeemable noncontrolling interest at each period end may be recorded, if applicable. The amount of such adjustment is determined based upon the accreted value method to reflect the passage of time until the Preferred Units are exchangeable at the option of the holder. Pursuant to this method, the net transaction price is accreted using the effective interest method to the Redemption Price calculated at the seventh anniversary of the Closing. The total adjustment is limited to an amount such that the carrying amount of the Preferred Unit redeemable noncontrolling interest at each period end is equal to the greater of (a) the sum of (i) the carrying amount of the Preferred Units, plus (ii) the fair value of the embedded derivative liability and (b) the accreted value of the net transaction price. Activity related to the Preferred Units for the years ended December 31, 2020 and 2019 is as follows: Units Outstanding Financial Position (1) (In millions, except unit data) Redeemable noncontrolling interest — Preferred Units: at December 31, 2018 — $ — Issuance of Preferred Units, net 625,000 517 Distribution of in-kind additional Preferred Units 13,163 — Allocation of Altus Midstream net income N/A 38 Redeemable noncontrolling interest - Altus Preferred Unit limited partners: at December 31, 2019 638,163 555 Distribution of in-kind additional Preferred Units 22,531 — Cash distributions to Altus Preferred Unit limited partners — (23) Allocation of Altus Midstream LP net income N/A 76 Redeemable noncontrolling interest - Altus Preferred Unit limited partners: at December 31, 2020 660,694 608 Preferred Units embedded derivative 139 $ 747 (1) The Preferred Units are redeemable at Altus Midstream’s option at a redemption price (the Redemption Price), which as of December 31, 2020 was the greater of (i) an 11.5 percent internal rate of return and (ii) a 1.3 times multiple of invested capital. As of December 31, 2020, the Redemption Price would have been based on 1.3 times multiple of invested capital, which was $813 million and greater than using an 11.5 percent internal rate of return, which was $717 million. N/A - not applicable. Common Stock Outstanding The following table provides changes to the Company’s common shares outstanding for the years ended December 31, 2020, 2019, and 2018: For the Year Ended December 31, 2020 2019 2018 Balance, beginning of year 376,062,670 374,696,222 380,954,864 Shares issued for stock-based compensation plans: Treasury shares issued 17,448 31,701 2,454 Common shares issued 1,402,512 1,334,747 1,566,237 Treasury shares acquired — — (7,827,333) Balance, end of year 377,482,630 376,062,670 374,696,222 Net Income (Loss) per Common Share The following table provides a reconciliation of the components of basic and diluted net income (loss) per common share for the years ended December 31, 2020, 2019, and 2018: 2020 2019 2018 Loss Shares Per Share Loss Shares Per Share Income Shares Per Share (In millions, except per share amounts) Basic: Income (loss) attributable to common stock $ (4,860) 378 $ (12.86) $ (3,553) 377 $ (9.43) $ 40 382 $ 0.11 Effect of Dilutive Securities: Stock options and other $ — — $ — $ — — $ — $ — 2 $ — Diluted: Income (loss) attributable to common stock $ (4,860) 378 $ (12.86) $ (3,553) 377 $ (9.43) $ 40 384 $ 0.11 The diluted EPS calculation excludes options and restricted shares that were anti-dilutive totaling 4.5 million, 5.0 million, and 5.6 million for the years ended December 31, 2020, 2019, and 2018, respectively. The impact to net income (loss) attributable to common stock on an assumed conversion of the redeemable noncontrolling Preferred Units interest in Altus Midstream LP was anti-dilutive for the years ended December 31, 2020 and 2019. Stock Repurchase Program In 2013 and 2014, Apache’s Board of Directors 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 held negotiated transactions. The Company initiated the buyback program on June 10, 2013, and, through December 31, 2020, had repurchased a total of 40 million shares at an average price of $79.18 per share. During the fourth quarter of 2018, the Company’s Board of Directors authorized the purchase of up to 40 million additional shares of the Company’s common stock. The Company is not obligated to acquire any specific number of shares and did not purchase any shares during the year ended December 31, 2020. Common Stock Dividend In the first quarter of 2020, the Board of Directors approved a reduction in the Company’s quarterly dividends from $0.25 per share to $0.025 per share, effective for all dividends payable after March 12, 2020. For the year ended December 31, 2020, the Company declared common stock dividends of $0.10 per share. For each of the years ended December 31, 2019 and 2018, the Company declared common stock dividends of $1.00 per share. Stock Compensation Plans The Company maintains several stock-based compensation plans, which include stock options, restricted stock, and conditional restricted stock unit plans. On May 12, 2016, the Company’s shareholders approved the 2016 Omnibus Compensation Plan (the 2016 Plan), which is used to provide eligible employees with equity-based incentives by granting incentive stock options, non-qualified stock options, performance awards, restricted stock awards, restricted stock units, stock appreciation rights, cash awards, or any combination of the foregoing. As of December 31, 2020, 14.1 million shares were authorized and available for grant under the 2016 Plan. Previously approved plans remain in effect solely for the purpose of governing grants still outstanding that were issued prior to approval of the 2016 Plan. All new grants are issued from the 2016 Plan. In 2018, the Company began issuing cash-settled awards (phantom units) under the restricted stock and conditional restricted stock unit plans. The phantom units represent a hypothetical interest in the Company’s stock and, once vested, are settled in cash. Costs related to the plans are capitalized or expensed to “Lease operating expenses,” “Exploration,” or “General and administrative” in the Company’s statement of consolidated operations based on the nature of each employee’s activities. The following table summarizes the Company’s stock-settled and cash-settled compensation costs: For the Year Ended December 31, 2020 2019 2018 (In millions) Stock-settled and cash-settled compensation expensed $ 40 $ 110 $ 157 Stock-settled and cash-settled compensation capitalized 7 28 37 Total stock-settled and cash-settled compensation costs $ 47 $ 138 $ 194 Stock Options As of December 31, 2020, the Company had outstanding options to purchase shares of its common stock under the 2016 Plan, the 2011 Omnibus Equity Compensation Plan (the 2011 Plan), and the 2007 Omnibus Equity Compensation Plan (the 2007 Plan), (collectively, the Omnibus Plans). The Omnibus Plans were submitted to and approved by the Company’s shareholders. New shares of common stock will be issued for employee stock option exercises. Under the Omnibus Plans, the exercise price of each option equals the closing price of Apache’s common stock on the date of grant. Options granted become exercisable ratably over a three-year period and expire 10 years after granted. The following table summarizes stock option activity for the years ended December 31, 2020, 2019, and 2018: 2020 2019 2018 Shares Weighted Average Shares Weighted Average Shares Weighted Average (In thousands, except exercise price amounts) Outstanding, beginning of year 4,298 $ 75.24 4,872 $ 75.95 4,593 $ 83.36 Granted — — — — 812 45.93 Exercised — — — — (29) 41.79 Forfeited (37) 44.98 (80) 34.58 (121) 74.58 Expired (724) 92.14 (494) 88.82 (383) 104.21 Outstanding, end of year (1) 3,537 72.10 4,298 75.24 4,872 75.95 Expected to vest (2) 150 45.77 495 49.11 1,274 48.74 Exercisable, end of year (3) 3,387 73.26 3,803 78.64 3,598 85.59 (1) As of December 31, 2020, options outstanding had a weighted average remaining contractual life of 3.6 years and no intrinsic value. (2) As of December 31, 2020, options expected to vest had a weighted average remaining contractual life of 7.0 years and no intrinsic value. (3) As of December 31, 2020, options exercisable had a weighted average remaining contractual life of 3.4 years and no intrinsic value. The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing model, a Level 2 fair value measurement. The following table summarizes specific assumptions used in the Company’s valuation: 2020 2019 2018 Expected volatility N/A N/A 33.74% Expected dividend yields N/A N/A 2.16% Expected term (in years) N/A N/A 6 Risk-free rate N/A N/A 2.42% Weighted-average grant-date fair value N/A N/A $ 13.15 N/A - not applicable. Assumptions related to the expected volatilities are based on the Company’s historical volatility of its common stock and other factors. The expected dividend yield is based on historical yields on the date of grant. The expected term of stock options granted represents the period of time that the stock options are expected to be outstanding and is derived from historical exercise behavior, current trends, and values derived from lattice-based models. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. There were no options issued and no options exercised during the years ended December 31, 2020 and 2019. The intrinsic values of options exercised during the year ended December 31, 2018 was approximately $0.1 million. As of December 31, 2020, total compensation cost related to non-vested options not yet recognized was nil because they fully vest on January 5, 2021. Restricted Stock Units and Restricted Stock Phantom Units The Company has restricted stock unit and restricted stock phantom unit plans for eligible employees, including officers. The value of the stock-settled restricted stock unit awards is established by the market price on the date of grant and is recorded as compensation expense ratably over the vesting terms. The restricted stock phantom unit awards represent a hypothetical interest in either the Company’s stock or in ALTM’s common stock, as applicable, and, once vested, are settled in cash. Compensation expense related to the cash-settled awards is recorded as a liability and remeasured at the end of each reporting period over the applicable vesting term. The cash-settled awards compensation expense is recorded as a liability and remeasured at the end of each reporting period over the applicable vesting term. For the years ended December 31, 2020, 2019, and 2018, compensation costs charged to expense for the restricted stock units and restricted stock phantom units was $39 million, $104 million, and $101 million, respectively. As of December 31, 2020, 2019, and 2018, capitalized compensation costs for the restricted stock units and restricted stock phantom units were $6 million, $24 million, and $29 million, respectively. The following table summarizes stock-settled restricted stock unit activity for the years ended December 31, 2020, 2019, and 2018: 2020 2019 2018 Units Weighted Units Weighted Units Weighted (In thousands, except per share amounts) Non-vested, beginning of year 2,448 $ 46.65 3,153 $ 55.54 4,920 $ 56.67 Granted 1,352 24.60 1,479 36.81 608 45.59 Vested (3) (1,933) 48.65 (1,899) 53.99 (2,023) 55.10 Forfeited (315) 30.09 (285) 45.06 (352) 56.69 Non-vested, end of year (1)(2) 1,552 28.43 2,448 46.65 3,153 55.54 (1) As of December 31, 2020, there was $14 million of total unrecognized compensation cost related to 1,551,807 unvested stock-settled restricted stock units. (2) As of December 31, 2020, the weighted-average remaining life of unvested stock-settled restricted stock units is approximately 0.7 years. (3) The grant date fair values of the stock-settled awards vested during 2020, 2019, and 2018 were approximately $94 million, $103 million, and $111 million, respectively. The following table summarizes cash-settled restricted stock phantom unit activity for the years ended December 31, 2020, 2019, and 2018: For the Year Ended December 31, 2020 2019 2018 (In thousands) Non-vested, beginning of year 5,384 1,818 59 Adjustment for ALTM reverse stock split (1) (1,246) — — Granted (2) 3,462 4,831 1,973 Vested (1,618) (616) (38) Forfeited (1,559) (649) (176) Non-vested, end of year (3) 4,423 5,384 1,818 (1) On June 30, 2020, Altus executed a 1-for-20 reverse stock split of its outstanding common stock. Outstanding cash-settled awards are based on the per-share market price of ALTM stock. (2) Restricted stock phantom units granted during 2020 and 2019 included 3,378,486 and 3,401,477 awards, respectively, based on the per-share market price of Apache common stock and 83,239 and 1,429,135 awards, respectively, based on the per-share market price of ALTM common stock. The restricted stock phantom units granted during 2020 based on ALTM’s per-share market price reflect the 1-for-20 reverse stock split described above. (3) The outstanding liability for the unvested cash-settled restricted stock phantom units that had not been recognized as of December 31, 2020 was approximately $28 million. In January 2021, the Company awarded 1,354,349 restricted stock units and 4,360,656 restricted stock phantom units based on Apache’s weighted-average per-share market price of $16.18 under the 2016 Plan to eligible employees. Total compensation cost for the restricted stock units and the restricted stock phantom units, absent any forfeitures, is estimated to be $22 million and $71 million, respectively, and was calculated based on the per-share fair market value of a share of the Company’s common stock as of the grant date. Compensation cost will be recognized over a three-year vesting period for both plans. The phantom units will be classified as a liability and remeasured at the end of each reporting period based on the change in fair value of one share of the Company’s common stock. Also during January 2021, the Company awarded 56,836 restricted stock phantom units based on ALTM’s weighted-average per-share market price of $48.84. The restricted stock phantom units represent a hypothetical interest in ALTM’s common stock and, once vested, are settled in cash. Total compensation cost for these restricted stock phantom units, absent any forfeitures, is estimated to be $3 million and was calculated based on the fair market value of ALTM’s common stock as of the grant date. The restricted stock phantom units will be classified as a liability and remeasured at the end of each reporting period based on the change in fair value of one share of ALTM’s common stock. Performance Program To provide long-term incentives for the Company’s employees to deliver competitive shareholder returns, the Company makes annual grants of conditional restricted stock units to eligible employees. Apache has a performance program for certain eligible employees with payout for 50 percent of the shares based upon measurement of total shareholder return (TSR) of Apache common stock as compared to a designated peer group during a three-year performance period. Payout for the remaining 50 percent of the shares is based on performance and financial objectives as defined in the plan. The overall results of the objectives are calculated at the end of the award’s stated performance period and, if a payout is warranted, applied to the target number of restricted stock units awarded. The performance shares will immediately vest 50 percent at the end of the three-year performance period, with the remaining 50 percent vesting at the end of the following year. Grants from the performance programs outstanding at December 31, 2020, are as described below: • In January 2017, the Company’s Board of Directors approved the 2017 Performance Program, pursuant to the 2016 Plan. Eligible employees received initial stock-settled conditional restricted stock unit awards totaling 620,885 units. A total of 111,126 restricted stock units were outstanding as of December 31, 2020. The results for the performance period yielded a payout of 54 percent of target. • In January 2018, the Company’s Board of Directors approved the 2018 Performance Program, pursuant to the 2016 Plan. Eligible employees received initial cash-settled conditional phantom units totaling 931,049 units. A total of 704,483 phantom units were outstanding as of December 31, 2020. The results for the performance period yielded a payout of 23 percent of target. • In January 2019, the Company’s Board of Directors approved the 2019 Performance Program, pursuant to the 2016 Plan. Eligible employees received initial cash-settled conditional phantom units totaling 1,679,832 units. The actual amount of phantom units awarded will be between zero and 200 percent of target. A total of 1,301,893 phantom units were outstanding as of December 31, 2020, from which a minimum of zero to a maximum of 2,603,786 phantom units could be awarded. • In January 2020, the Company’s Board of Directors approved the 2020 Performance Program, pursuant to the 2016 Plan. Eligible employees received initial cash-settled conditional phantom units totaling 1,687,307 units. The actual amount of phantom units awarded will be between zero and 200 percent of target. A total of 1,410,404 phantom units were outstanding as of December 31, 2020, from which a minimum of zero to a maximum of 2,820,808 phantom units could be awarded. The fair value cost of the stock-settled awards was estimated on the date of grant and is recorded as compensation expense ratably over the applicable vesting term. The fair value of the cash-settled awards is remeasured at the end of each reporting period over the applicable vesting term. Compensation cost charged to expense under the performance programs was a credit of $8 million during 2020 and expenses of $24 million and $38 million during 2019 and 2018, respectively. Capitalized compensation costs under the performance programs was a credit of $1 million during 2020 and expenses of $3 million and $7 million during 2019 and 2018, respectively. The following table summarizes stock-settled conditional restricted stock unit activity for the year ended December 31, 2020: Units Weighted Average Grant- Date Fair Value (1) (In thousands) Non-vested, beginning of year 781 $ 52.69 Granted 18 62.31 Vested (445) 41.10 Forfeited (16) 56.66 Expired (227) 70.70 Non-vested, end of year (2)(3) 111 63.15 (1) The fair value of each conditional restricted stock unit award is estimated as of the date of grant using a Monte Carlo simulation with the following assumptions used for all grants made under the plan: (i) a three-year continuous risk-free interest rate; (ii) a constant volatility assumption based on the historical realized stock price volatility of the Company and the designated peer group; and (iii) the historical stock prices and expected dividends of the common stock of the Company and its designated peer group. (2) As of December 31, 2020, there was no unrecognized compensation cost related to 111,126 unvested stock-settled conditional restricted stock units. (3) As of December 31, 2020, the weighted-average remaining life of the unvested stock-settled conditional restricted stock units is approximately 0.0 years. The following table summarizes cash-settled conditional restricted stock unit activity for the year ended December 31, 2020: Units (In thousands) Non-vested, beginning of year 2,320 Granted 1,687 Vested (2) Forfeited (542) Expired (46) Non-vested, end of year (1) 3,417 (1) As of December 31, 2020, the outstanding liability for the unvested cash-settled conditional restricted stock units that had not been recognized was approximately $14 million. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Components of accumulated other comprehensive income (loss) include the following: As of December 31, 2020 2019 2018 (In millions) Share of equity method interests other comprehensive loss $ (1) $ (1) $ — Pension and postretirement benefit plan ( Note 12 ) 15 17 4 Accumulated other comprehensive income $ 14 $ 16 $ 4 |
MAJOR CUSTOMERS
MAJOR CUSTOMERS | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
MAJOR CUSTOMERS | MAJOR CUSTOMERS The Company is exposed to credit risk in the event of nonpayment by counterparties, a significant portion of which are concentrated in energy-related industries. The creditworthiness of customers and other counterparties is subject to continuing review, including the use of master netting agreements, where appropriate. During 2020, sales to EGPC and Vitol accounted for approximately 17 percent and 14 percent, respectively, of the Company’s worldwide crude oil, natural gas, and NGLs production revenues. During 2019, sales to BP and Sinopec, and their respective affiliates, each accounted for approximately 10 percent and 11 percent, respectively, of the Company’s worldwide crude oil, natural gas, and NGLs production revenues. During 2018, sales to BP, Sinopec, and EGPC, and their respective affiliates, each accounted for approximately 17 percent, 15 percent, and 10 percent, respectively, of the Company’s worldwide crude oil, natural gas, and NGLs production revenues. Management does not believe that the loss of any one of these customers would have a material adverse effect on the results of operations. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION As of December 31, 2020, Apache is engaged in exploration and production (Upstream) activities across three operating segments: Egypt, North Sea, and the U.S. Apache also has active exploration and planned appraisal operations ongoing in Suriname, as well as interests in other international locations that may, over time, result in reportable discoveries and development opportunities. Apache’s Upstream business explores for, develops, and produces natural gas, crude oil and natural gas liquids. During 2018, Apache established a new reporting segment for its U.S. midstream business separate from its upstream oil and gas development activities. The midstream business is operated by Altus, which owns, develops, and operates a midstream energy asset network in the Permian Basin of West Texas. Financial information for each segment is presented below: Egypt (1) North Sea U.S. Altus Midstream Intersegment Eliminations & Other Total (2) Upstream (In millions) 2020 Oil revenues $ 1,102 $ 795 $ 1,209 $ — $ — $ 3,106 Natural gas revenues 280 67 251 — — 598 Natural gas liquids revenues 8 21 304 — — 333 Oil, natural gas, and natural gas liquids production revenues 1,390 883 1,764 — — 4,037 Purchased oil and gas sales — — 394 4 — 398 Midstream service affiliate revenues — — — 145 (145) — 1,390 883 2,158 149 (145) 4,435 Operating Expenses: Lease operating expenses 424 305 400 — (2) 1,127 Gathering, processing, and transmission 38 50 291 38 (143) 274 Purchased oil and gas costs — — 354 3 — 357 Taxes other than income — — 108 15 — 123 Exploration 63 28 168 — 15 274 Depreciation, depletion, and amortization 601 380 779 12 — 1,772 Asset retirement obligation accretion — 73 32 4 — 109 Impairments 529 7 3,963 2 — 4,501 1,655 843 6,095 74 (130) 8,537 Operating Income (Loss) $ (265) $ 40 $ (3,937) $ 75 $ (15) (4,102) Other Income (Expense): Gain on divestitures, net 32 Derivative instrument losses, net (223) Other 64 General and administrative (290) Transaction, reorganization, and separation (54) Financing costs, net (267) Loss Before Income Taxes $ (4,840) Total Assets (3) $ 3,003 $ 2,220 $ 5,540 $ 1,786 $ 197 $ 12,746 Net Property and Equipment $ 1,955 $ 1,773 $ 4,760 $ 196 $ 135 $ 8,819 Additions to Net Property and Equipment $ 454 $ 215 $ 345 $ 12 $ 136 $ 1,162 Egypt (1) North Sea U.S. Altus Midstream Intersegment Eliminations & Other Total (2) Upstream (In millions) 2019 Oil revenues $ 1,969 $ 1,163 $ 2,098 $ — $ — $ 5,230 Natural gas revenues 295 90 293 — — 678 Natural gas liquids revenues 12 23 372 — — 407 Oil, natural gas, and natural gas liquids production revenues 2,276 1,276 2,763 — — 6,315 Purchased oil and gas sales — — 176 — — 176 Midstream service affiliate revenues — — — 136 (136) — 2,276 1,276 2,939 136 (136) 6,491 Operating Expenses: Lease operating expenses 484 320 645 — (2) 1,447 Gathering, processing, and transmission 40 45 299 56 (134) 306 Purchased oil and gas costs — — 142 — — 142 Taxes other than income — — 194 13 — 207 Exploration 100 2 688 — 15 805 Depreciation, depletion, and amortization 708 366 1,566 40 — 2,680 Asset retirement obligation accretion — 76 29 2 — 107 Impairments — — 1,648 1,301 — 2,949 1,332 809 5,211 1,412 (121) 8,643 Operating Income (Loss) $ 944 $ 467 $ (2,272) $ (1,276) $ (15) (2,152) Other Income (Expense): Gain on divestitures, net 43 Derivative instrument losses, net (35) Other 54 General and administrative (406) Transaction, reorganization, and separation (50) Financing costs, net (462) Loss Before Income Taxes $ (3,008) Total Assets (3) $ 3,700 $ 2,473 $ 10,388 $ 1,479 $ 67 $ 18,107 Net Property and Equipment $ 2,573 $ 1,956 $ 9,385 $ 206 $ 38 $ 14,158 Additions to Net Property and Equipment $ 454 $ 183 $ 1,696 $ 308 $ 93 $ 2,734 Egypt (1) North Sea U.S. Altus Midstream Intersegment Eliminations & Other Total (2) Upstream (In millions) 2018 Oil revenues $ 2,396 $ 1,179 $ 2,271 $ — $ — $ 5,846 Natural gas revenues 339 122 458 — — 919 Natural gas liquids revenues 13 20 550 — — 583 Oil, natural gas, and natural gas liquids production revenues 2,748 1,321 3,279 — — 7,348 Purchased oil and gas sales — — 357 — — 357 Midstream service affiliate revenues — — — 77 (77) — 2,748 1,321 3,636 77 (77) 7,705 Operating Expenses: Lease operating expenses 428 341 670 — — 1,439 Gathering, processing, and transmission 47 42 282 54 (77) 348 Purchased oil and gas costs — — 340 — — 340 Taxes other than income — — 207 8 — 215 Exploration 88 192 219 — 4 503 Depreciation, depletion, and amortization 745 375 1,266 19 — 2,405 Asset retirement obligation accretion — 75 32 1 — 108 Impairments 63 10 438 — — 511 1,371 1,035 3,454 82 (73) 5,869 Operating Income (Loss) $ 1,377 $ 286 $ 182 $ (5) $ (4) 1,836 Other Income (Expense): Gain on divestitures, net 23 Derivative instrument losses, net (17) Other 53 General and administrative (431) Transaction, reorganization, and separation (28) Financing costs, net (478) Income Before Income Taxes $ 958 Total Assets (3) $ 4,260 $ 2,456 $ 12,962 $ 1,857 $ 47 $ 21,582 Net Property and Equipment $ 2,856 $ 2,148 $ 12,145 $ 1,227 $ 45 $ 18,421 Additions to Net Property and Equipment $ 594 $ 223 $ 2,544 $ 545 $ 8 $ 3,914 (1) Includes revenue from non-customers for the years ended December 31, 2020, 2019, and 2018 of: For the Year Ended December 31, 2020 2019 2018 (In millions) Oil $ 95 $ 410 $ 592 Natural gas 14 40 58 Natural gas liquids — 1 2 (2) Includes a noncontrolling interest in Egypt and Altus Midstream. (3) Intercompany balances are excluded from total assets. |
SUPPLEMENTAL OIL AND GAS DISCLO
SUPPLEMENTAL OIL AND GAS DISCLOSURES (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Extractive Industries [Abstract] | |
Supplemental Oil and Gas Disclosures (Unaudited) | SUPPLEMENTAL OIL AND GAS DISCLOSURES (Unaudited) Oil and Gas Operations The following table sets forth revenue and direct cost information relating to the Company’s oil and gas exploration and production activities. Apache has no long-term agreements to purchase oil or gas production from foreign governments or authorities. United Egypt (1) North Sea Other Total (1) (In millions, except per boe) 2020 Oil and gas production revenues $ 1,764 $ 1,390 $ 883 $ — $ 4,037 Operating cost: Depreciation, depletion, and amortization (2) 726 540 377 — 1,643 Asset retirement obligation accretion 32 — 73 — 105 Lease operating expenses 400 424 305 — 1,129 Gathering, processing, and transmission 291 38 50 — 379 Exploration expenses 168 63 28 15 274 Impairments related to oil and gas properties 3,938 374 7 — 4,319 Production taxes (3) 106 — — — 106 Income tax (818) (22) 17 — (823) 4,843 1,417 857 15 7,132 Results of operations $ (3,079) $ (27) $ 26 $ (15) $ (3,095) 2019 Oil and gas production revenues $ 2,763 $ 2,276 $ 1,276 $ — $ 6,315 Operating cost: Depreciation, depletion, and amortization (2) 1,508 641 363 — 2,512 Asset retirement obligation accretion 29 — 76 — 105 Lease operating expenses 645 484 320 — 1,449 Gathering, processing, and transmission 299 40 45 — 384 Exploration expenses 688 100 2 15 805 Impairments related to oil and gas properties 1,633 — — — 1,633 Production taxes (3) 191 — — — 191 Income tax (468) 455 188 — 175 4,525 1,720 994 15 7,254 Results of operations $ (1,762) $ 556 $ 282 $ (15) $ (939) 2018 Oil and gas production revenues $ 3,279 $ 2,748 $ 1,321 $ — $ 7,348 Operating cost: Depreciation, depletion, and amortization (2) 1,206 688 371 — 2,265 Asset retirement obligation accretion 32 — 75 — 107 Lease operating expenses 670 428 341 — 1,439 Gathering, processing, and transmission 282 47 42 — 371 Exploration expenses 219 88 192 4 503 Impairments related to oil and gas properties 265 63 10 — 338 Production taxes (3) 203 — — — 203 Income tax 87 645 116 — 848 2,964 1,959 1,147 4 6,074 Results of operations $ 315 $ 789 $ 174 $ (4) $ 1,274 (1) Includes a noncontrolling interest in Egypt. (2) Reflects DD&A of capitalized costs of oil and gas properties and, therefore, does not agree with DD&A reflected on Note 17—Business Segment Information . (3) Reflects only amounts directly related to oil and gas producing properties and, therefore, does not agree with taxes other than income reflected on Note 17—Business Segment Information . Costs Incurred in Oil and Gas Property Acquisitions, Exploration, and Development Activities United Egypt (2) North Sea Other Total (2) (In millions) 2020 Acquisitions: Proved $ — $ 7 $ — $ — $ 7 Unproved 4 — — — 4 Exploration 8 102 68 150 328 Development 332 378 162 — 872 Costs incurred (1) $ 344 $ 487 $ 230 $ 150 $ 1,211 (1) Includes capitalized interest and asset retirement costs as follows: Capitalized interest $ — $ — $ — $ 3 $ 3 Asset retirement costs 9 — 29 — 38 2019 Acquisitions: Proved $ 3 $ 5 $ — $ — $ 8 Unproved 47 10 — — 57 Exploration 162 139 62 105 468 Development 1,500 374 119 3 1,996 Costs incurred (1) $ 1,712 $ 528 $ 181 $ 108 $ 2,529 (1) Includes capitalized interest and asset retirement costs as follows: Capitalized interest $ 23 $ — $ 5 $ 4 $ 32 Asset retirement costs 14 — (111) — (97) 2018 Acquisitions: Proved $ — $ 6 $ — $ — $ 6 Unproved 111 16 — — 127 Exploration 640 175 113 12 940 Development 1,791 457 133 — 2,381 Costs incurred (1) $ 2,542 $ 654 $ 246 $ 12 $ 3,454 (1) Includes capitalized interest and asset retirement costs as follows: Capitalized interest $ 23 $ — $ 11 $ 2 $ 36 Asset retirement costs 93 — (62) — 31 (2) Includes a noncontrolling interest in Egypt. Capitalized Costs The following table sets forth the capitalized costs and associated accumulated depreciation, depletion, and amortization relating to the Company’s oil and gas acquisition, exploration, and development activities: United Egypt (1) North Other Total (1) (In millions) 2020 Proved properties $ 20,343 $ 12,069 $ 8,805 $ — $ 41,217 Unproved properties 348 77 42 135 602 20,691 12,146 8,847 135 41,819 Accumulated DD&A (16,252) (10,290) (7,081) — (33,623) $ 4,439 $ 1,856 $ 1,766 $ 135 $ 8,196 2019 Proved properties $ 20,291 $ 11,614 $ 8,635 $ — $ 40,540 Unproved properties 509 109 10 38 666 20,800 11,723 8,645 38 41,206 Accumulated DD&A (11,783) (9,377) (6,700) — (27,860) $ 9,017 $ 2,346 $ 1,945 $ 38 $ 13,346 (1) Includes a noncontrolling interest in Egypt.. Oil and Gas Reserve Information Proved oil and gas reserves are those quantities of natural gas, crude oil, condensate, and NGLs, which by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations. Estimated proved developed oil and gas reserves can be expected to be recovered through existing wells with existing equipment and operating methods. The Company reports all estimated proved reserves held under production-sharing arrangements utilizing the “economic interest” method, which excludes the host country’s share of reserves. Estimated reserves that can be produced economically through application of improved recovery techniques are included in the “proved” classification when successful testing by a pilot project or the operation of an active, improved recovery program using reliable technology establishes the reasonable certainty for the engineering analysis on which the project or program is based. Economically producible means a resource that generates revenue that exceeds, or is reasonably expected to exceed, the costs of the operation. Reasonable certainty means a high degree of confidence that the quantities will be recovered. Reliable technology is a grouping of one or more technologies (including computational methods) that has been field-tested and has been demonstrated to provide reasonably certain results with consistency and repeatability in the formation being evaluated or in an analogous formation. In estimating its proved reserves, Apache uses several different traditional methods that can be classified in three general categories: (1) performance-based methods; (2) volumetric-based methods; and (3) analogy with similar properties. Apache will, at times, utilize additional technical analysis such as computer reservoir models, petrophysical techniques, and proprietary 3-D seismic interpretation methods to provide additional support for more complex reservoirs. Information from this additional analysis is combined with traditional methods outlined above to enhance the certainty of the Company’s reserve estimates. There are numerous uncertainties inherent in estimating quantities of proved reserves and projecting future rates of production and timing of development expenditures. The reserve data in the following tables only represent estimates and should not be construed as being exact. Crude Oil and Condensate United Egypt (1) North Total (1) (Thousands of barrels) Proved developed reserves: December 31, 2017 304,279 124,568 92,598 521,445 December 31, 2018 300,484 110,014 104,491 514,989 December 31, 2019 278,145 103,573 101,712 483,430 December 31, 2020 206,936 95,981 86,566 389,483 Proved undeveloped reserves: December 31, 2017 31,904 16,198 14,013 62,115 December 31, 2018 45,182 9,484 11,278 65,944 December 31, 2019 46,716 10,831 10,049 67,596 December 31, 2020 25,516 11,228 7,273 44,017 Total proved reserves: Balance December 31, 2017 336,183 140,766 106,611 583,560 Extensions, discoveries and other additions 61,976 22,473 15,682 100,131 Purchases of minerals in-place 140 — — 140 Revisions of previous estimates (14,334) (9,556) 10,613 (13,277) Production (38,252) (34,185) (17,137) (89,574) Sales of minerals in-place (47) — — (47) Balance December 31, 2018 345,666 119,498 115,769 580,933 Extensions, discoveries and other additions 52,297 21,039 9,017 82,353 Revisions of previous estimates (16,446) 4,752 5,132 (6,562) Production (38,344) (30,885) (18,157) (87,386) Sales of minerals in-place (18,312) — — (18,312) Balance December 31, 2019 324,861 114,404 111,761 551,026 Extensions, discoveries and other additions 17,858 17,855 5,275 40,988 Revisions of previous estimates (69,247) 2,541 (4,756) (71,462) Production (32,299) (27,591) (18,441) (78,331) Sales of minerals in-place (8,721) — — (8,721) Balance December 31, 2020 232,452 107,209 93,839 433,500 (1) Includes proved reserves of 36 MMbbls, 38 MMbbls, 40 MMbbls, and 47 MMbbls as of December 31, 2020, 2019, 2018, and 2017, respectively, attributable to a noncontrolling interest in Egypt. Natural Gas Liquids United Egypt (1) North Total (1) (Thousands of barrels) Proved developed reserves: December 31, 2017 171,005 685 2,025 173,715 December 31, 2018 197,574 502 1,938 200,014 December 31, 2019 158,794 667 2,317 161,778 December 31, 2020 150,599 716 2,053 153,368 Proved undeveloped reserves: December 31, 2017 29,559 39 353 29,951 December 31, 2018 33,796 60 631 34,487 December 31, 2019 23,569 90 660 24,319 December 31, 2020 15,141 126 320 15,587 Total proved reserves: Balance December 31, 2017 200,564 724 2,378 203,666 Extensions, discoveries and other additions 60,990 144 1,444 62,578 Purchases of minerals in-place 40 — — 40 Revisions of previous estimates (9,250) 31 (819) (10,038) Production (20,969) (337) (434) (21,740) Sales of minerals in-place (5) — — (5) Balance December 31, 2018 231,370 562 2,569 234,501 Extensions, discoveries and other additions 41,343 27 697 42,067 Revisions of previous estimates (32,569) 508 345 (31,716) Production (24,959) (340) (634) (25,933) Sales of minerals in-place (32,822) — — (32,822) Balance December 31, 2019 182,363 757 2,977 186,097 Extensions, discoveries and other additions 11,435 97 312 11,844 Revisions of previous estimates (469) 264 (207) (412) Production (27,133) (276) (709) (28,118) Sales of minerals in-place (456) — — (456) Balance December 31, 2020 165,740 842 2,373 168,955 (1) Includes proved reserves of 281 Mbbls, 252 Mbbls, 187 Mbbls, and 241 Mbbls as of December 31, 2020, 2019, 2018, and 2017, respectively, attributable to a noncontrolling interest in Egypt. Natural Gas United Egypt (1) North Total (1) (Millions of cubic feet) Proved developed reserves: December 31, 2017 1,347,009 540,667 83,342 1,971,018 December 31, 2018 1,626,403 476,132 95,347 2,197,882 December 31, 2019 945,938 433,382 106,329 1,485,649 December 31, 2020 1,052,756 409,035 68,159 1,529,950 Proved undeveloped reserves: December 31, 2017 297,226 47,255 11,063 355,544 December 31, 2018 267,090 33,006 15,804 315,900 December 31, 2019 115,040 24,704 16,604 156,348 December 31, 2020 76,504 12,572 8,341 97,417 Total proved reserves: Balance December 31, 2017 1,644,235 587,922 94,405 2,326,562 Extensions, discoveries and other additions 704,135 79,394 55,274 838,803 Purchases of minerals in-place 906 — — 906 Revisions of previous estimates (239,204) (38,892) (21,933) (300,029) Production (216,538) (119,286) (16,595) (352,419) Sales of minerals in-place (41) — — (41) Balance December 31, 2018 1,893,493 509,138 111,151 2,513,782 Extensions, discoveries and other additions 249,205 34,758 27,711 311,674 Revisions of previous estimates (509,753) 18,570 4,015 (487,168) Production (233,447) (104,380) (19,944) (357,771) Sales of minerals in-place (338,520) — — (338,520) Balance December 31, 2019 1,060,978 458,086 122,933 1,641,997 Extensions, discoveries and other additions 60,965 83,718 8,140 152,823 Revisions of previous estimates 215,166 (19,849) (33,541) 161,776 Production (205,594) (100,348) (21,032) (326,974) Sales of minerals in-place (2,255) — — (2,255) Balance December 31, 2020 1,129,260 421,607 76,500 1,627,367 (1) Includes proved reserves of 141 Bcf, 153 Bcf, 170 Bcf, and 196 Bcf as of December 31, 2020, 2019, 2018, and 2017, respectively, attributable to a noncontrolling interest in Egypt. Total Equivalent Reserves United Egypt (1) North Total (1) (Thousands barrels of oil equivalent) Proved developed reserves: December 31, 2017 699,786 215,364 108,513 1,023,663 December 31, 2018 769,125 189,871 122,320 1,081,316 December 31, 2019 594,595 176,470 121,751 892,816 December 31, 2020 532,994 164,870 99,979 797,843 Proved undeveloped reserves: December 31, 2017 111,001 24,112 16,210 151,323 December 31, 2018 123,493 15,045 14,543 153,081 December 31, 2019 89,458 15,038 13,476 117,972 December 31, 2020 53,408 13,449 8,983 75,840 Total proved reserves: Balance December 31, 2017 810,787 239,476 124,723 1,174,986 Extensions, discoveries and other additions 240,322 35,849 26,338 302,509 Purchases of minerals in-place 331 — — 331 Revisions of previous estimates (63,451) (16,007) 6,139 (73,319) Production (95,312) (54,402) (20,337) (170,051) Sales of minerals in-place (59) — — (59) Balance December 31, 2018 892,618 204,916 136,863 1,234,397 Extensions, discoveries and other additions 135,174 26,859 14,333 176,366 Revisions of previous estimates (133,974) 8,355 6,146 (119,473) Production (102,211) (48,622) (22,115) (172,948) Sales of minerals in-place (107,554) — — (107,554) Balance December 31, 2019 684,053 191,508 135,227 1,010,788 Extensions, discoveries and other additions 39,454 31,905 6,944 78,303 Revisions of previous estimates (33,854) (502) (10,554) (44,910) Production (93,698) (44,592) (22,655) (160,945) Sales of minerals in-place (9,553) — — (9,553) Balance December 31, 2020 586,402 178,319 108,962 873,683 (1) Includes include total proved reserves of 59 MMboe, 64 MMboe, 68 MMboe, and 80 MMboe as of December 31, 2020, 2019, 2018, and 2017, respectively, attributable to a noncontrolling interest in Egypt. During 2020, Apache added approximately 78 MMboe from extensions, discoveries, and other additions. The Company recorded 39 MMboe of exploration and development adds in the U.S., primarily in the Southern Midland Basin (26 MMboe) associated with the Wolfcamp and Spraberry drilling programs and the remainder in the Delaware Basin and Austin Chalk. The international operations contributed 39 MMboe of exploration and development adds during 2020, with Egypt contributing 32 MMboe from onshore exploration and appraisal activity primarily in the Khalda Area and Umbarka Area concessions. The North Sea contributed 7 MMboe from drilling success, primarily in the Beryl Field. The Company had combined downward revisions of previously estimated reserves of 45 MMboe. Downward revisions related to changes in product prices accounted for 70 MMboe, engineering and performance upward revisions accounted for 27 MMboe, and downward interest revisions accounted for 2 MMboe. The Company also sold 10 MMboe of proved reserves associated with U.S. divestitures, primarily related to Eastern Shelf and Magnet Withers/Pickett Ridge. During 2019, Apache added approximately 176 MMboe from extensions, discoveries, and other additions. The Company recorded 135 MMboe of exploration and development adds in the U.S., primarily associated with Woodford, Bone Springs, Spraberry, Barnett, and Wolfcamp drilling programs in the Permian Basin (129 MMboe) and various offset drilling activity in the Midcontinent region (6 MMboe). The Company’s international assets contributed 41 MMboe of exploration and development adds during 2019. Egypt contributed 27 MMboe from onshore exploration and appraisal activity in the Khalda Extension 2, Khalda, Khalda Extension 3, East Bahariya Extension 3, and West Kanayis concessions. The North Sea contributed 14 MMboe from drilling success in the Beryl and Forties fields. The Company had combined downward revisions of previously estimated reserves of 119 MMboe. Downward revisions related to changes in product prices accounted for 139 MMboe and engineering and performance upward revisions accounted for 20 MMboe. The Company also sold 107 MMboe of proved reserves associated with U.S. divestitures, primarily related to the sale of the Company’s Woodford-SCOOP and STACK plays and western Anadarko Basin assets. During 2018, Apache added approximately 303 MMboe from extensions, discoveries, and other additions. The Company recorded 240 MMboe of exploration and development adds in the U.S., primarily associated with Woodford, Bone Springs, Yeso, Barnett, and Wolfcamp drilling programs in the Permian Basin (217 MMboe) and Woodford and Austin Chalk drilling activity in the Midcontinent region (20 MMboe). The Company’s international assets contributed 62 MMboe of exploration and development adds during 2018. Egypt contributed 36 MMboe from onshore exploration and appraisal activity in the Khalda Extension 2, Khalda, Khalda Extension 3, Matruh, and West Kalabsha concessions. The North Sea contributed 26 MMboe from drilling success in the Beryl and Forties fields. The Company had combined downward revisions of previously estimated reserves of 73 MMboe. Downward revisions related to changes in product prices accounted for 24 MMboe, interest revisions accounted for 5 MMboe, and engineering and performance downward revisions accounted for 44 MMboe. Approximately 10 percent of the Company’s year-end 2020 estimated proved developed reserves are classified as proved not producing. These reserves relate to zones that are either behind pipe, or that have been completed but not yet produced, or zones that have been produced in the past, but are not now producing because of mechanical reasons. These reserves are considered to be a lower tier of reserves than producing reserves because they are frequently based on volumetric calculations rather than performance data. Future production associated with behind pipe reserves is scheduled to follow depletion of the currently producing zones in the same wellbores. Additional capital may have to be spent to access these reserves. The capital and economic impact of production timing are reflected in this Note 18, under “Future Net Cash Flows.” Future Net Cash Flows Future cash inflows as of December 31, 2020, 2019, and 2018 were calculated using an unweighted arithmetic average of oil and gas prices in effect on the first day of each month in the respective year, except where prices are defined by contractual arrangements. Operating costs, production and ad valorem taxes and future development costs are based on current costs with no escalation. Future development costs include abandonment and dismantlement costs. The following table sets forth unaudited information concerning future net cash flows for proved oil and gas reserves, net of income tax expense. Income tax expense has been computed using expected future tax rates and giving effect to tax deductions and credits available, under current laws, and which relate to oil and gas producing activities. This information does not purport to present the fair market value of the Company’s oil and gas assets, but does present a standardized disclosure concerning possible future net cash flows that would result under the assumptions used. United Egypt (1) North Total (1) (In millions) 2020 Cash inflows $ 12,537 $ 5,560 $ 4,122 $ 22,219 Production costs (6,244) (1,704) (2,388) (10,336) Development costs (1,555) (633) (2,448) (4,636) Income tax expense — (1,096) 316 (780) Net cash flows 4,738 2,127 (398) 6,467 10 percent discount rate (1,829) (437) 1,111 (1,155) Discounted future net cash flows (2) $ 2,909 $ 1,690 $ 713 $ 5,312 2019 Cash inflows $ 21,694 $ 8,306 $ 7,454 $ 37,454 Production costs (10,642) (1,847) (2,730) (15,219) Development costs (1,740) (707) (2,651) (5,098) Income tax expense (27) (1,930) (784) (2,741) Net cash flows 9,285 3,822 1,289 14,396 10 percent discount rate (4,003) (808) 297 (4,514) Discounted future net cash flows (2) $ 5,282 $ 3,014 $ 1,586 $ 9,882 2018 Cash inflows $ 29,906 $ 9,866 $ 9,206 $ 48,978 Production costs (13,699) (1,799) (2,588) (18,086) Development costs (2,150) (792) (2,714) (5,656) Income tax expense (19) (2,455) (1,352) (3,826) Net cash flows 14,038 4,820 2,552 21,410 10 percent discount rate (6,516) (1,066) (107) (7,689) Discounted future net cash flows (2) $ 7,522 $ 3,754 $ 2,445 $ 13,721 (1) Includes discounted future net cash flows of approximately $563 million , $1.0 billion, and $1.3 billion as of December 31, 2020, 2019, and 2018, respectively, attributable to a noncontrolling interest in Egypt. (2) Estimated future net cash flows before income tax expense, discounted at 10 percent per annum, totaled approximately $7.1 billion , $12.4 billion, and $16.9 billion as of December 31, 2020, 2019, and 2018, respectively. The following table sets forth the principal sources of change in the discounted future net cash flows: For the Year Ended December 31, 2020 2019 2018 (In millions) Sales, net of production costs $ (2,422) $ (4,291) $ (5,335) Net change in prices and production costs (5,753) (3,034) 3,902 Discoveries and improved recovery, net of related costs 751 2,042 3,889 Change in future development costs 20 (75) 47 Previously estimated development costs incurred during the period 576 983 910 Revision of quantities (418) (741) (648) Purchases of minerals in-place — — 6 Accretion of discount 1,236 1,693 1,216 Change in income taxes 1,533 720 (1,125) Sales of minerals in-place (104) (817) (1) Change in production rates and other 11 (319) 777 $ (4,570) $ (3,839) $ 3,638 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Apache and its subsidiaries after elimination of intercompany balances and transactions. The Company’s undivided interests in oil and gas exploration and production ventures and partnerships are proportionately consolidated. The Company consolidates all other investments in which, either through direct or indirect ownership, it has more than a 50 percent voting interest or controls the financial and operating decisions. Noncontrolling interests represent third-party ownership in the net assets of a consolidated subsidiary of Apache and are reflected separately in the Company’s financial statements. Sinopec International Petroleum Exploration and Production Corporation (Sinopec) owns a one-third minority participation in Apache’s Egypt oil and gas business as a noncontrolling interest, which is reflected as a separate component of equity in the Company’s consolidated balance sheet. Additionally, third-party investors own a minority interest of approximately 21 percent of Altus Midstream Company (ALTM), which is reflected as a separate noncontrolling interest component of equity in Apache’s consolidated balance sheet. ALTM qualifies as a variable interest entity (VIE) under GAAP. Apache consolidates the activities of ALTM because it has concluded that it has a controlling financial interest in ALTM and is the primary beneficiary of the VIE. On June 12, 2019, Altus Midstream LP issued and sold Series A Cumulative Redeemable Preferred Units (the Preferred Units) through a private offering that admitted additional limited partners with separate rights for the Preferred Unit holders. Refer to Note 1 3 —Redeemable Noncontrolling Interest - Altus for further detail. |
Use of Estimates | Use of Estimates Preparation of financial statements in conformity with GAAP and disclosure of contingent assets and liabilities 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. The Company bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. The Company evaluates its estimates and assumptions on a regular basis. Actual results may differ from these estimates and assumptions used in preparation of the Company’s financial statements and changes in these estimates are recorded when known. Significant estimates with regard to these financial statements include the estimates of fair value for long-lived assets (see “Fair Value Measurements” and “Property and Equipment” sections in this Note 1 below), the fair value determination of acquired assets and liabilities (see Note 2—Acquisitions and Divestitures ), the assessment of asset retirement obligations (see Note 8—Asset Retirement Obligation ), the estimate of income taxes (see Note 10—Income Taxes ), and the estimate of proved oil and gas reserves and related present value estimates of future net cash flows therefrom (see Note 18—Supplemental Oil and Gas Disclosures (Unaudited) ). |
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. Accounting Standards Codification (ASC) 820-10-35, “Fair Value Measurement” (ASC 820), 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). Recurring fair value measurements are presented in further detail in Note 4—Derivative Instruments and Hedging Activities , Note 9—Debt and Financing Costs , Note 12—Retirement and Deferred Compensation Plans , and Note 13—Redeemable Noncontrolling Interest - Altus . The Company also uses fair value measurements on a nonrecurring basis when certain qualitative assessments of its assets indicate a potential impairment. The following table presents a summary of asset impairments recorded in connection with fair value assessments: For the Year Ended December 31, 2020 2019 2018 (In millions) Oil and gas proved property $ 4,319 $ 1,484 $ 328 Gathering, processing, and transmission facilities 68 1,295 56 Equity method investment — — 113 Divested unproved properties and leasehold — 149 10 Goodwill 87 — — Inventory and other 27 21 4 Total Impairments $ 4,501 $ 2,949 $ 511 For the year ended December 31, 2020, the Company recorded asset impairments totaling $4.5 billion in connection with fair value assessments. Given the crude oil price collapse on lower demand and economic activity resulting from the coronavirus disease 2019 (COVID-19) global pandemic and related governmental actions, the Company assessed its oil and gas property and gathering, processing, and transmission (GPT) facilities for impairment based on the net book value of its assets as of March 31, 2020. The Company recorded proved property impairments totaling $3.9 billion, $354 million, and $7 million in the U.S., Egypt, and North Sea, respectively, all of which were impaired to their estimated fair values as a result of lower forecasted commodity prices, changes to planned development activity, and increasing market uncertainty. Impairments totaling $68 million were similarly recorded for GPT facilities in Egypt. These impairments are discussed in further detail below in “Property and Equipment - Oil and Gas Property” and “Property and Equipment - Gathering, Processing, and Transmission Facilities.” The Company also performed an interim impairment analysis of the goodwill related to its Egypt reporting unit. Reductions in estimated net present value of expected future cash flows from oil and gas properties resulted in implied fair values below the carrying values of the Company’s Egypt reporting unit. As a result of these assessments, the Company recognized non-cash impairments of the entire amount of recorded goodwill in the Egypt reporting unit of $87 million in the first quarter of 2020. During the remainder of 2020, the Company recorded additional proved property impairments totaling $20 million in Egypt, as well as $13 million for the early termination of drilling rig leases, $5 million for inventory revaluations, and $9 million of other asset impairments, all in the U.S. During the fourth quarter of 2019, following a material reduction to planned investment in Apache’s Alpine High development, the Company recorded impairments totaling $1.4 billion for its Alpine High proved properties and upstream infrastructure which were written down to their fair values. Altus separately assessed its long-lived infrastructure assets for impairment based on expected reductions to future throughput volumes from Alpine High. Altus subsequently recorded impairments totaling $1.3 billion on its GPT facilities. These impairments are discussed in further detail below in “Property and Equipment - Oil and Gas Property” and “Property and Equipment - Gathering, Processing, and Transmission Facilities.” Separate from the Company’s Alpine High and Altus impairments, Apache entered into agreements to sell certain of its assets in the western Anadarko Basin in Oklahoma and Texas. As a result of these agreements, a separate impairment analysis was performed for each of the assets within the disposal groups. The analyses were based on the agreed-upon proceeds less costs to sell for the transaction, a Level 1 fair value measurement. The carrying value of the net assets to be divested exceeded the fair value implied by the expected net proceeds, resulting in impairments in the second and fourth quarters of 2019 totaling $255 million, including $101 million on the Company’s proved properties, $149 million on its unproved properties, and $5 million on other working capital. For more information regarding this transaction, refer to Note 2—Acquisitions and Divestitures . For the year ended December 31, 2018, the Company recorded asset impairments totaling $511 million in connection with fair value assessments. Impairments totaling $328 million and $56 million were recorded for proved properties, and a gathering and processing facility in Oklahoma, respectively, which were written down to their fair values associated with U.S. assets to be divested. During the third quarter of 2018, Apache agreed to sell certain of its unproved properties offshore the U.K. in the North Sea. As a result, the Company performed a fair value assessment of the properties and recorded a $10 million impairment on the carrying values of the associated capitalized exploratory well costs. The fair value of the impaired assets was determined using the negotiated sales price, a Level 1 fair value measurement. Also in 2018, the Company recorded $113 million for the impairment of an equity method investment in the U.S. based on a negotiated sales price and $4 million for inventory write-downs in the U.S. for obsolescence. |
Cash and Cash Equivalents | Cash and Cash EquivalentsThe Company considers all highly liquid short-term investments with a maturity of three months or less at the time of purchase to be cash equivalents. These investments are carried at cost, which approximates fair value. |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit Losses Accounts receivable are stated at amortized cost net of an allowance for credit losses. The Company routinely assesses the collectability of its financial assets measured at amortized cost. In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, “Financial Instruments-Credit Losses.” The standard changes the impairment model for trade receivables, held-to-maturity debt securities, net investments in leases, loans, and other financial assets measured at amortized cost. This ASU requires the use of a new forward-looking “expected loss” model compared to the previous “incurred loss” model, resulting in accelerated recognition of credit losses. Apache adopted this update in the first quarter of 2020. This ASU primarily applies to the Company’s accounts receivable balances, of which the majority are received within a short-term period of one year or less. The Company monitors the credit quality of its counterparties through review of collections, credit ratings, and other analyses. The Company develops its estimated allowance for credit losses primarily using an aging method and analyses of historical loss rates as well as consideration of current and future conditions that could impact its counterparties’ credit quality and liquidity. The adoption and implementation of this ASU did not have a material impact on the Company’s financial statements. |
Inventories | Inventories Inventories consist principally of tubular goods and equipment and are stated at the lower of weighted-average cost or net realizable value. Oil produced but not sold, primarily in the North Sea, is also recorded to inventory and is stated at the lower of the cost to produce or net realizable value. |
Property and Equipment | Property and Equipment The carrying value of the Company’s property and equipment represents the cost incurred to acquire the property and equipment, including capitalized interest, net of any impairments. For business combinations, property and equipment cost is based on the fair values at the acquisition date. |
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 suspended exploratory well costs are expensed. 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 multiplies the percentage of estimated proved reserves produced each quarter by the carrying value of associated proved oil and gas properties. The reserve base used to calculate depreciation for leasehold acquisition costs and the cost to acquire proved properties is the sum of proved developed reserves and proved undeveloped reserves. The reserve base used to calculate the depreciation for capitalized well costs is the sum of proved developed reserves only. 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 the carrying value of proved oil and gas properties may not be recoverable, 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 ASC 820. The expected future cash flows used for impairment reviews and related fair value calculations are typically based on judgmental assessments, a Level 3 fair value measurement. The significant decline in crude oil and natural gas prices, as well as longer-term commodity price outlooks, related to reduced demand for oil and natural gas as a result of the COVID-19 pandemic and related governmental actions indicated possible impairment of the Company’s proved and unproved oil and gas properties in early 2020. In addition to estimating risk-adjusted reserves and future production volumes, estimated future commodity prices are the largest driver in variability of undiscounted pre-tax cash flows. Expected cash flows were estimated based on management’s views of published West Texas Intermediate (WTI), Brent, and Henry Hub forward pricing as of the balance sheet dates. Other significant assumptions and inputs used to calculate estimated future cash flows include estimates for future development activity, exploration plans and remaining lease terms. A 10 percent discount rate, based on a market-based weighted-average cost of capital estimate, was applied to the undiscounted cash flow estimate to value all of the Company’s asset groups that were subject to impairment charges in 2020. Similar assumptions were applied to impairments recorded in 2019 and 2018. The following table represents non-cash impairments charges of the carrying value of the Company’s proved and unproved properties: For the Year Ended December 31, 2020 2019 2018 (In millions) Proved properties: U.S. $ 3,938 $ 1,484 $ 265 Egypt 374 — 63 North Sea 7 — — Total proved properties $ 4,319 $ 1,484 $ 328 Unproved properties: U.S. $ 92 $ 760 $ 96 Egypt 8 8 — North Sea 1 — 128 Total unproved properties $ 101 $ 768 $ 224 Proved properties impaired had aggregate fair values as of the most recent date of impairment of $1.9 billion and $628 million for 2020 and 2019, respectively. Unproved leasehold impairments are typically recorded as a component of “Exploration” expense in the Company’s statement of consolidated operations. However, in 2019, unproved impairments of $149 million were recorded as a component of “Impairments” in connection with an agreement to sell certain non-core leasehold properties in Oklahoma and Texas. In addition, in 2018, unproved impairments of $10 million were recorded as a component of “Impairments” in connection with an agreement to sell certain unproved properties in the North Sea. |
Gathering, Processing, and Transmission Facilities | Gathering, Processing, and Transmission Facilities GPT facilities totaled $670 million and $799 million at December 31, 2020 and 2019, respectively, with accumulated depreciation for these assets totaling $323 million and $310 million for the respective periods. GPT facilities are depreciated on a straight-line basis over the estimated useful lives of the assets. The estimation of useful life takes into consideration anticipated production lives from the fields serviced by the GPT assets, whether Apache-operated or third party-operated, as well as potential development plans by the Company for undeveloped acreage within or in close proximity to those fields. The Company assesses the carrying amount of its GPT facilities whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying amount of these facilities is more than the sum of the undiscounted cash flows, an impairment loss is recognized for the excess of the carrying value over its fair value. Apache assessed its long-lived infrastructure assets for impairment at March 31, 2020, and recorded an impairment of $68 million on its GPT facilities in Egypt during the first quarter of 2020. The fair values of the impaired assets, which were determined to be $46 million, were estimated using the income approach, which considers internal estimates based on future throughput volumes from applicable development concessions in Egypt and estimated costs to operate. These assumptions were applied based on throughput assumptions developed in relation to the oil and gas proved property impairment assessment as discussed above to develop future cash flow projections that were then discounted to estimated fair value, using a 10 percent discount rate, based on a market-based weighted-average cost of capital estimate. Apache has classified these non-recurring fair value measurements as Level 3 in the fair value hierarchy. As discussed under “Fair Value Measurements” above, the Company decided to materially reduce its planned investment in the Alpine High play during its fourth-quarter 2019 capital planning review. Altus management subsequently assessed its long-lived infrastructure assets for impairment given the expected reduction to future throughput volumes and recorded impairments of $1.3 billion on its gathering, processing, and transmission assets. The fair values of the impaired assets were determined to be $203 million as of the time of the impairment and were estimated using the income approach. The income approach 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 discount rates 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. During 2018, the Company recorded impairments of the entire net book value of certain GPT assets in the U.S. in the amount of $56 million associated with a proposed divestiture package. The costs of GPT assets sold or otherwise disposed of and associated accumulated depreciation are removed from Apache’s consolidated financial statements, and the resulting gain or loss is reflected in “Gain on divestitures” under “Revenues and Other” in the Company’s statement of consolidated operations. A $2 million loss was recorded on the sale of power generators during 2020, and no gain or loss on the sales of GPT facilities was recognized during 2019 or 2018. |
Asset Retirement Costs and Obligations | Asset Retirement Costs and Obligations The initial estimated asset retirement obligation related to property and equipment and subsequent revisions are recorded as a liability at fair value, with an offsetting asset retirement cost recorded as an increase to the associated property and equipment on the consolidated balance sheet. Revisions in estimated liabilities can result from changes in estimated inflation rates, changes in service and equipment costs and changes in the estimated timing of an asset’s retirement. Asset retirement costs are depreciated using a systematic and rational method similar to that used for the associated property and equipment. Accretion expense on the liability is recognized over the estimated productive life of the related assets. |
Capitalized Interest | Capitalized Interest |
Goodwill | Goodwill Goodwill represents the excess of the purchase price of an entity over the estimated fair value of the assets acquired and liabilities assumed, and it is recorded in “Deferred charges and other” in the Company’s consolidated balance sheet. The Company assesses the carrying amount of goodwill by testing for impairment annually and when impairment indicators arise. The impairment test requires allocating goodwill and all other assets and liabilities to assigned reporting units. Apache assesses each country as a reporting unit, with Egypt being the only reporting unit to have associated goodwill. The fair value of the reporting unit is determined and compared to the book value of the reporting unit. If the fair value of the reporting unit is less than the book value, including goodwill, then goodwill is written down to its implied fair value through a charge to expense. |
Commitments and Contingencies | Commitments and ContingenciesAccruals for loss contingencies arising from claims, assessments, litigation, environmental and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. These accruals are adjusted as additional information becomes available or circumstances change. |
Revenue Recognition | Revenue Recognition The years ended 2019 and 2018 include the reclassification of $176 million and $357 million, respectively, from “Other” to “Purchased oil and gas sales,” both within “Revenues and Other” and the respective associated $142 million and $340 million purchased oil and gas costs from “Other” within “Revenues and Other” to “Purchased oil and gas costs” within “Operating Expenses” on the Company’s consolidated statement of operations to conform to the current-year presentation. Upstream The Company’s upstream oil and gas segments primarily generate revenue from contracts with customers from the sale of its crude oil, natural gas, and natural gas liquids production volumes. In addition to Apache-related production volumes, the Company also sells commodity volumes purchased from third-parties to fulfill sales obligations and commitments as the Company’s production fluctuates with potential operational issues and changes to development plans. Under these short-term commodity sales contracts, the physical delivery of each unit of quantity represents a single, distinct performance obligation on behalf of the Company. Contract prices are determined based on market-indexed prices, adjusted for quality, transportation, and other market-reflective differentials. Revenue is measured by allocating an entirely variable market price to each performance obligation and recognized at a point in time when control is transferred to the customer. The Company considers a variety of facts and circumstances in assessing the point of control transfer, including but not limited to: whether the purchaser can direct the use of the hydrocarbons, the transfer of significant risks and rewards, and the Company’s right to payment. Control typically transfers to customers upon the physical delivery at specified locations within each contract and the transfer of title. The Company’s Egypt operations are conducted pursuant to production sharing contracts under which the contractor partners (Contractors) pay all operating and capital costs for exploring and developing defined concessions. A percentage of the production, generally up to 40 percent, is available to Contractors to recover these operating and capital costs over contractually defined periods. The balance of the production is split among the Contractors and the Egyptian General Petroleum Corporation (EGPC) on a contractually defined basis. Additionally, the Contractors’ income taxes, which remain the liability of the Contractors under domestic law, are paid by EGPC on behalf of the Contractors out of EGPC’s production entitlement. Income taxes paid to the Arab Republic of Egypt on behalf of Apache as Contractor are recognized as oil and gas sales revenue and income tax expense and reflected as production and estimated reserves. Revenues related to Egypt’s tax volumes are considered revenue from a non-customer. Refer to Note 1 7 —Business Segment Information for a disaggregation of revenue by product and reporting segment. Altus Midstream The Company’s Altus Midstream segment is operated by ALTM, through its subsidiary, Altus Midstream LP (collectively, Altus). Altus generates revenue from contracts with customers from its gathering, compression, processing, and transmission services provided on Apache’s natural gas and natural gas liquid production volumes. Under these long-term commercial service contracts, providing the related service represents a single, distinct performance obligation on behalf of Altus that is satisfied over time. In accordance with the terms of these agreements, Altus receives a fixed fee for each contract year, subject to yearly fee escalation recalculations. Revenue is measured using the output method and recognized in the amount to which Altus has the right to invoice, as performance completed to date corresponds directly with the value to its customers. For the periods presented, Altus Midstream segment revenues were primarily attributable to sales between Altus and Apache, which are fully eliminated upon consolidation. Payment Terms and Contract Balances Payments under all contracts with customers are typically due and received within a short-term period of one year or less, after physical delivery of the product or service has been rendered. Receivables from contracts with customers, net of allowance for credit losses, totaled $670 million and $945 million as of December 31, 2020 and 2019, respectively. In accordance with the provisions of ASC 606, “Revenue from Contracts with Customers,” variable market prices for each short-term commodity sale are allocated entirely to each performance obligation as the terms of payment relate specifically to the Company’s efforts to satisfy its obligations. As such, the Company has elected the practical expedients available under the standard to not disclose the aggregate transaction price allocated to unsatisfied, or partially unsatisfied, performance obligations as of the end of the reporting period. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Apache periodically enters into derivative contracts to manage its exposure to commodity price, interest rate, and/or foreign exchange risk. These derivative contracts, which are generally placed with major financial institutions, may take the form of forward contracts, futures contracts, swaps, or options. |
Income Taxes | Income Taxes Apache records deferred tax assets and liabilities to account for the expected future tax consequences of events that have been recognized in the financial statements and tax returns. The Company routinely assesses the ability to realize its deferred tax assets. If the Company concludes that it is more likely than not that some or all of the deferred tax assets will not be realized, the tax asset is reduced by a valuation allowance. Numerous judgments and assumptions are inherent in the determination of future taxable income, including factors such as future operating conditions (particularly as related to prevailing oil and gas prices) and changing tax laws. |
Earnings Per Share | Earnings Per ShareThe Company’s basic earnings per share (EPS) amounts have been computed based on the weighted-average number of shares of common stock outstanding for the period. Diluted EPS reflects potential dilution, using the treasury stock method, which assumes that options were exercised and restricted stock was fully vested. The Company uses the “if-converted method” to determine the potential dilutive effect of an assumed exchange of the outstanding Preferred Units of Altus Midstream for shares of Altus’ common stock. |
Stock-Based Compensation | Stock-Based CompensationApache grants various types of stock-based awards including stock options, restricted stock, cash-settled restricted stock units, and performance-based awards. Stock compensation equity awards granted are valued on the date of grant and are expensed over the required vesting service period. Cash-settled awards are recorded as a liability based on the Company’s stock price and remeasured at the end of each reporting period over the vesting terms. The Company has elected to account for forfeitures as they occur rather than estimate expected forfeitures. |
Treasury Stock | Treasury Stock The Company follows the weighted-average-cost method of accounting for treasury stock transactions. |
New Pronouncements Issued But Not Yet Adopted | New Pronouncements Issued But Not Yet Adopted In October 2020, the FASB issued ASU 2020-10, “Codification Improvements,” which clarifies or improves disclosure requirements for various topics to align with Securities and Exchange Commission (SEC) regulations. This update is effective for the Company beginning in the first quarter of 2021 and will be applied retrospectively. The adoption and implementation of this ASU will not have a material impact on the Company’s financial statements. In August 2020, the FASB issued ASU 2020-06, “Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40)” to improve financial reporting associated with the accounting for convertible instruments and contracts in an entity’s own equity. This update is effective for the Company beginning in the first quarter of 2022, with early adoption permitted, using either the modified or fully retrospective method with a cumulative effect adjustment to the opening balance of retained earnings. The Company is evaluating the effect of adoption of the ASU and does not believe it will have a material impact on its financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Asset Impairments Recorded in Connection with Fair Value Assessment | The following table presents a summary of asset impairments recorded in connection with fair value assessments: For the Year Ended December 31, 2020 2019 2018 (In millions) Oil and gas proved property $ 4,319 $ 1,484 $ 328 Gathering, processing, and transmission facilities 68 1,295 56 Equity method investment — — 113 Divested unproved properties and leasehold — 149 10 Goodwill 87 — — Inventory and other 27 21 4 Total Impairments $ 4,501 $ 2,949 $ 511 |
Schedule of Allowance for Doubtful Accounts | The following table presents changes to the Company’s allowance for credit loss: For the Year Ended December 31, 2020 2019 2018 (In millions) Allowance for credit loss at beginning of year $ 88 $ 92 $ 84 Additional provisions for the year 7 3 9 Uncollectible accounts written off, net of recoveries — (7) (1) Allowance for credit loss at end of year $ 95 $ 88 $ 92 |
Schedule of Non-cash Impairments of Proved and Unproved Properties | The following table represents non-cash impairments charges of the carrying value of the Company’s proved and unproved properties: For the Year Ended December 31, 2020 2019 2018 (In millions) Proved properties: U.S. $ 3,938 $ 1,484 $ 265 Egypt 374 — 63 North Sea 7 — — Total proved properties $ 4,319 $ 1,484 $ 328 Unproved properties: U.S. $ 92 $ 760 $ 96 Egypt 8 8 — North Sea 1 — 128 Total unproved properties $ 101 $ 768 $ 224 |
Schedule of Goodwill | The following presents the changes to goodwill for the years ended 2020, 2019, and 2018: Egypt Total (In millions) Goodwill at December 31, 2017 $ 87 $ 87 Impairments — — Goodwill at December 31, 2018 87 87 Impairments — — Goodwill at December 31, 2019 87 87 Impairments (87) (87) Goodwill at December 31, 2020 $ — $ — |
CAPITALIZED EXPLORATORY WELL _2
CAPITALIZED EXPLORATORY WELL COSTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Extractive Industries [Abstract] | |
Capitalized Exploratory Well Costs, Roll Forward | The following summarizes the changes in capitalized exploratory well costs for the years ended December 31, 2020, 2019, and 2018. Additions pending the determination of proved reserves excludes amounts capitalized and subsequently charged to expense within the same year. For the Year Ended December 31, 2020 2019 2018 (In millions) Capitalized well costs at beginning of year $ 141 $ 159 $ 350 Additions pending determination of proved reserves 226 286 602 Divestitures and other (38) (100) (82) Reclassifications to proved properties (56) (179) (647) Charged to exploration expense (76) (25) (64) Capitalized well costs at end of year $ 197 $ 141 $ 159 |
Schedule of Aging of Capitalized Exploratory Well Costs | The following provides an aging of capitalized exploratory well costs and the number of projects for which exploratory well costs have been capitalized for a period greater than one year since the completion of drilling as of December 31: 2020 2019 2018 (In millions) Exploratory well costs capitalized for a period of one year or less $ 184 $ 108 $ 126 Exploratory well costs capitalized for a period greater than one year 13 33 33 Capitalized well costs at end of year $ 197 $ 141 $ 159 Number of projects with exploratory well costs capitalized for a period greater than one year 5 2 2 |
Schedule of Projects with Exploratory Well Costs Capitalized for More than One Year | The following table summarizes aging by geographic area of those exploratory well costs that, as of December 31, 2020, have been capitalized for a period greater than one year, categorized by the year in which drilling was completed: Total 2019 2018 2017 and Prior (In millions) Egypt $ 13 $ 4 $ 9 $ — $ 13 $ 4 $ 9 $ — |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | As of December 31, 2020, the Company had the following open natural gas financial basis swap contracts: Basis Swap Purchased Basis Swap Sold Production Period Settlement Index MMBtu Weighted Average Price Differential MMBtu Weighted Average Price Differential April—December 2021 NYMEX Henry Hub/IF Waha 37,580 $(0.43) — — April—December 2021 NYMEX Henry Hub/IF HSC — — 37,580 $(0.07) January—December 2022 NYMEX Henry Hub/IF Waha 43,800 $(0.45) — — January—December 2022 NYMEX Henry Hub/IF HSC — — 43,800 $(0.08) |
Schedule of Derivative Assets Measured at Fair Value | The following table presents the Company’s derivative assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements Using Quoted Price in Active Markets (Level 1) Significant Other Inputs (Level 2) Significant Unobservable Inputs Total Fair Value Netting (1) Carrying Amount (In millions) December 31, 2020 Assets: Commodity derivative instruments $ — $ 11 $ — $ 11 $ — $ 11 Liabilities: Pipeline capacity embedded derivatives — 53 — 53 — 53 Preferred Units embedded derivative — — 139 139 — 139 December 31, 2019 Assets: Pipeline capacity embedded derivative $ — $ 8 $ — $ 8 $ — $ 8 Foreign currency derivative instruments — 1 — 1 — 1 Liabilities: Preferred Units embedded derivative — — 103 103 — 103 (1) The derivative fair values are based on analysis of each contract on a gross basis, excluding the impact of netting agreements with counterparties. |
Schedule of Derivative Liabilities Measured at Fair Value | The following table presents the Company’s derivative assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements Using Quoted Price in Active Markets (Level 1) Significant Other Inputs (Level 2) Significant Unobservable Inputs Total Fair Value Netting (1) Carrying Amount (In millions) December 31, 2020 Assets: Commodity derivative instruments $ — $ 11 $ — $ 11 $ — $ 11 Liabilities: Pipeline capacity embedded derivatives — 53 — 53 — 53 Preferred Units embedded derivative — — 139 139 — 139 December 31, 2019 Assets: Pipeline capacity embedded derivative $ — $ 8 $ — $ 8 $ — $ 8 Foreign currency derivative instruments — 1 — 1 — 1 Liabilities: Preferred Units embedded derivative — — 103 103 — 103 (1) The derivative fair values are based on analysis of each contract on a gross basis, excluding the impact of netting agreements with counterparties. |
Schedule of Fair Value Measurement Inputs | As of the December 31, 2020 valuation date, the Company used the forward B-rated Energy Bond Yield curve to develop the following key unobservable inputs used to value this embedded derivative: Quantitative Information About Level 3 Fair Value Measurements Fair Value at December 31, 2020 Valuation Technique Significant Unobservable Inputs Range/Value (In millions) Preferred Units embedded derivative $ 139 Option Model Altus’ Imputed Interest Rate 7.32-11.73% Interest Rate Volatility 37.08% |
Schedule of Derivative Instruments on Consolidated Balance Sheet and Statement of Consolidated Operations | The carrying value of the Company’s derivative assets and liabilities and their locations on the consolidated balance sheet are as follows: 2020 2019 (In millions) Current Assets: Other current assets $ 6 $ 2 Noncurrent Assets: Deferred charges and other 5 7 Total derivative assets $ 11 $ 9 Deferred Credits and Other Noncurrent Liabilities: Other $ 192 $ 103 Total derivative liabilities $ 192 $ 103 Derivative Activity Recorded in the Statement of Consolidated Operations The following table summarizes the effect of derivative instruments on the Company’s statement of consolidated operations: For the Year Ended December 31, 2020 2019 2018 (In millions) Realized: Commodity derivative instruments $ (135) $ 27 $ (81) Amortization of put premium, realized loss — — (39) Foreign currency derivative instruments (1) — — Treasury-lock — (18) — Realized gain (loss), net (136) 9 (120) Unrealized: Commodity derivative instruments 11 (44) 103 Pipeline capacity embedded derivatives (61) 8 — Foreign currency derivative instruments (1) 1 — Preferred Units embedded derivative (36) (9) — Unrealized gain (loss), net (87) (44) 103 Derivative instrument losses, net $ (223) $ (35) $ (17) |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | The following table provides detail of the Company’s other current assets as of December 31: 2020 2019 (In millions) Inventories $ 492 $ 502 Drilling advances 113 92 Prepaid assets and other 71 58 Total Other current assets $ 676 $ 652 |
EQUITY METHOD INTERESTS (Tables
EQUITY METHOD INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Equity Method Investment Information | Interest 2020 2019 (In millions) Gulf Coast Express Pipeline LLC 16.0 % $ 284 $ 291 EPIC Crude Holdings, LP 15.0 % 176 163 Permian Highway Pipeline LLC 26.7 % 615 311 Shin Oak Pipeline (Breviloba, LLC) 33.0 % 480 493 Total Altus equity method interests $ 1,555 $ 1,258 The following table presents the activity in Altus’ equity method interests for the years ended December 31, 2020 and 2019: Gulf Coast Express Pipeline LLC EPIC Crude Holdings, LP Permian Highway Pipeline LLC Breviloba, LLC Total (In millions) Balance at December 31, 2018 $ 91 $ — $ — $ — $ 91 Acquisitions 15 52 162 442 671 Capital contributions 184 123 147 47 501 Distributions (16) (9) (25) Capitalized interest (1) — — 2 — 2 Equity income (loss), net 17 (11) — 13 19 Accumulated other comprehensive loss — (1) — — (1) Balance at December 31, 2019 291 163 311 493 1,258 Capital contributions 2 29 296 — 327 Distributions (51) — — (46) (97) Capitalized interest (1) — — 8 — 8 Equity income (loss), net 42 (16) — 33 59 Balance at December 31, 2020 $ 284 $ 176 $ 615 $ 480 $ 1,555 (1) Altus’ proportionate share of the PHP construction costs is funded with Altus’ revolving credit facility. Accordingly, Altus capitalized $8 million and $2 million of related interest expense during 2020 and 2019, respectively, which are included in the basis of the PHP equity interest. The following presents summarized information of combined statement of operations for Altus’ equity method interests (on a 100 percent basis): For the Year Ended December 31, 2020 2019 (1) 2018 (2) (In millions) Operating revenues $ 707 $ 302 $ 3 Operating income (loss) 331 121 (6) Net income (loss) 256 120 (6) Other comprehensive loss 3 (8) — (1) Although Altus’ interests in EPIC Crude Holdings, LP, Permian Highway Pipeline LLC, and Breviloba, LLC were acquired in March, May, and July 2019, respectively, the combined financial results are presented for the year ended December 31, 2019 for comparability. (2) Although Altus’ interest in Gulf Coast Express Pipeline LLC was acquired in December 2018, the combined financial results are presented for the year ended December 31, 2018 for comparability. The following presents summarized combined balance sheet information for Altus’ equity method interests (on a 100 percent basis) as of December 31: 2020 2019 (In millions) Current assets $ 260 $ 441 Noncurrent assets 7,678 6,435 Total assets $ 7,938 $ 6,876 Current liabilities $ 206 $ 478 Noncurrent liabilities 1,191 958 Equity 6,541 5,440 Total liabilities and equity $ 7,938 $ 6,876 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Detail of Other Current Liabilities | The following table provides detail of the Company’s other current liabilities as of December 31: 2020 2019 (In millions) Accrued operating expenses $ 91 $ 143 Accrued exploration and development 167 319 Accrued gathering, processing, and transmission - Altus — 17 Accrued compensation and benefits 170 212 Accrued interest 140 135 Accrued income taxes 25 51 Current asset retirement obligation 56 47 Current operating lease liability 116 169 Other 97 56 Total Other current liabilities $ 862 $ 1,149 |
ASSET RETIREMENT OBLIGATION (Ta
ASSET RETIREMENT OBLIGATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Changes to Asset Retirement Obligation | The following table describes changes to the Company’s asset retirement obligation (ARO) liability: For the Year Ended December 31, 2020 2019 (In millions) Asset retirement obligation at beginning of year $ 1,858 $ 1,932 Liabilities incurred 10 41 Liabilities divested (26) (56) Liabilities settled (30) (56) Accretion expense 109 107 Revisions in estimated liabilities 23 (110) Asset retirement obligation at end of year 1,944 1,858 Less current portion (56) (47) Asset retirement obligation, long-term $ 1,888 $ 1,811 |
DEBT AND FINANCING COSTS (Table
DEBT AND FINANCING COSTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table presents the carrying value of the Company’s debt: December 31, 2020 2019 (In millions) 3.625% notes due 2021 (1) $ — $ 293 3.25% notes due 2022 (2) 213 463 2.625% notes due 2023 (2) 123 181 4.625% notes due 2025 (2) 500 — 7.7% notes due 2026 79 79 7.95% notes due 2026 133 133 4.875% due 2027 (2) 750 — 4.375% notes due 2028 (2) 993 1,000 7.75% notes due 2029 (2)(3) 235 247 4.25% notes due 2030 (2) 580 600 6.0% notes due 2037 (2) 443 467 5.1% notes due 2040 (2) 1,333 1,499 5.25% notes due 2042 (2) 399 500 4.75% notes due 2043 (2) 1,133 1,413 4.25% notes due 2044 (2) 559 753 7.375% debentures due 2047 150 150 5.35% notes due 2049 (2) 390 400 7.625% debentures due 2096 39 39 Notes and debentures before unamortized discount and debt issuance costs (4) 8,052 8,217 Commercial paper — — Altus credit facility (5) 624 396 Apache credit facility (5) 150 — Finance lease obligations 38 48 Unamortized discount (35) (42) Debt issuance costs (57) (53) Total debt 8,772 8,566 Current maturities (2) (11) Long-term debt $ 8,770 $ 8,555 (1) On November 3, 2020, Apache redeemed the 3.625% senior notes due February 1, 2021, at a redemption price equal to 100 percent of their principal amount, plus accrued and unpaid interest to the redemption date. (2) These notes are redeemable, as a whole or in part, at Apache’s option, subject to a make-whole premium, except that the 7.75% notes due 2029 are only redeemable as whole for principal and accrued interest in the event of certain Canadian tax law changes. The remaining notes and debentures are not redeemable. (3) Assumed by Apache in August 2017 as permitted by terms of these notes originally issued by a subsidiary and guaranteed by Apache. (4) The fair values of the Company’s notes and debentures were $8.5 billion and $8.4 billion as of December 31, 2020 and 2019, respectively. 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). (5) The carrying amount of borrowings on credit facilities approximates fair value because the interest rates are variable and reflective of market rates. |
Schedule of Long Term Debt by Maturity | Maturities for the Company’s notes and debentures excluding discount and debt issuance costs as of December 31, 2020 are as follows: (In millions) 2021 $ — 2022 213 2023 123 2024 — 2025 500 Thereafter 7,216 Notes and debentures, excluding discounts and debt issuance costs $ 8,052 |
Components of Financing Costs, Net | The following table presents the components of Apache’s financing costs, net: For the Year Ended December 31, 2020 2019 2018 (In millions) Interest expense $ 438 $ 430 $ 441 Amortization of debt issuance costs 8 7 9 Capitalized interest (12) (37) (44) Loss (gain) on extinguishment of debt (160) 75 94 Interest income (7) (13) (22) Financing costs, net $ 267 $ 462 $ 478 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income (Loss) Before Income Taxes | Income (loss) before income taxes is composed of the following: For the Year Ended December 31, 2020 2019 2018 (In millions) U.S. $ (4,581) $ (4,397) $ (723) Foreign (259) 1,389 1,681 Total $ (4,840) $ (3,008) $ 958 |
Total Provision for Income Taxes | The total income tax provision consists of the following: For the Year Ended December 31, 2020 2019 2018 (In millions) Current income taxes: Federal $ (2) $ 1 $ (1) State — — — Foreign 178 659 895 176 660 894 Deferred income taxes: Federal — 67 (65) State — — 2 Foreign (112) (53) (159) (112) 14 (222) Total $ 64 $ 674 $ 672 |
Reconciliation of Tax of Income Before Income Taxes and Total Tax Expense | A reconciliation of the tax on the Company’s income (loss) before income taxes and total tax expense is shown below: For the Year Ended December 31, 2020 2019 2018 (In millions) Income tax expense (benefit) at U.S. statutory rate $ (1,016) $ (631) $ 201 State income tax, less federal effect (1) — 1 2 Taxes related to foreign operations 97 328 436 Tax credits (13) (6) (13) Tax on deemed repatriation of foreign earnings — — 103 Foreign tax credits — — (336) Change in U.S. tax rate — — 161 Net change in tax contingencies 1 1 (2) Goodwill impairment 35 — — Sale of North Sea assets — — (30) Valuation allowances (1) 965 972 118 All other, net (5) 9 32 $ 64 $ 674 $ 672 (1) The change in state valuation allowance is included as a component of state income tax. |
Net Deferred Tax Liability | The net deferred income tax liability consists of the following as of December 31: 2020 2019 (In millions) Deferred tax assets: U.S. and state net operating losses $ 2,306 $ 2,108 Capital losses 633 626 Tax credits and other tax incentives 33 32 Foreign tax credits 2,241 2,241 Accrued expenses and liabilities 93 97 Asset retirement obligation 654 618 Property & equipment 261 — Investment in Altus Midstream LP 76 107 Net interest expense limitation 252 162 Lease liability 79 108 Other 1 88 Total deferred tax assets 6,629 6,187 Valuation allowance (5,991) (4,959) Net deferred tax assets 638 1,228 Deferred tax liabilities: Deferred income — 1 Equity investments 4 — Property and equipment 750 1,432 Right-of-use asset 74 106 Other 13 6 Total deferred tax liabilities 841 1,545 Net deferred income tax liability $ 203 $ 317 Net deferred tax assets and liabilities are included in the consolidated balance sheet as of December 31 as follows: 2020 2019 (In millions) Assets: Deferred charges and other $ 12 $ 29 Liabilities: Income taxes 215 346 Net deferred income tax liability $ 203 $ 317 |
Summary of Valuation Allowance Against Certain Foreign Net Deferred Tax Assets and State Net Operating Losses | In 2020, 2019, and 2018, the Company’s valuation allowance increased by $1.0 billion, $1.0 billion, and $131 million, respectively, as detailed in the table below: 2020 2019 2018 (In millions) Balance at beginning of year $ 4,959 $ 3,947 $ 3,816 State (1) 67 41 15 U.S. 960 971 124 Foreign 5 — (8) Balance at end of year $ 5,991 $ 4,959 $ 3,947 (1) Reported as a component of state income taxes. |
Net Operating Losses | On December 31, 2020, the Company had net operating losses as follows: Amount Expiration (In millions) U.S. $ 8,859 2020 - Indefinite State 6,566 Various |
Schedule of Foreign Tax Credit Carryforward | On December 31, 2020, the Company had foreign tax credits as follows: Amount Expiration (In millions) Foreign tax credits $ 2,241 2025-2026 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2020 2019 2018 (In millions) Balance at beginning of year $ 82 $ 24 $ 26 Additions based on tax positions related to prior year — 49 — Additions based on tax positions related to the current year 11 9 — Reductions for tax positions of prior years — — (2) Balance at end of year $ 93 $ 82 $ 24 |
Key Jurisdictions of Company's Earliest Open Tax Years | Apache’s earliest open tax years in its key jurisdictions are as follows: Jurisdiction U.S. 2014 Egypt 2005 U.K. 2019 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease Cost | The following table represents the Company’s weighted average lease term and discount rate as of December 31, 2020: Operating Leases Finance Leases Weighted average remaining lease term 3.7 years 12.7 years Weighted average discount rate 4.2 % 4.4 % |
Operating Lease, Liability, Maturity | At December 31, 2020, contractual obligations for long-term operating leases, finance leases, and purchase obligations are as follows: Net Minimum Commitments (1) Operating Leases (2) Finance Leases (3) Purchase Obligations (4) (In millions) 2021 $ 120 $ 3 $ 236 2022 70 3 203 2023 33 3 203 2024 27 4 160 2025 7 4 159 Thereafter 25 29 600 Total future minimum payments 282 46 $ 1,561 Less: imputed interest (21) (8) N/A Total lease liabilities 261 38 N/A Current portion 116 2 N/A Non-current portion $ 145 $ 36 N/A (1) Excludes commitments for jointly owned fields and facilities for which the Company is not the operator. (2) Amounts represent future payments associated with oil and gas operations inclusive of amounts billable to partners and other working interest owners. Such payments may be capitalized as a component of oil and gas properties and subsequently depreciated, impaired, or written off as exploration expense. (3) Amounts represent the Company’s finance lease obligation related to the Company’s Midland, Texas regional office building. (4) Amounts represent any agreement to purchase goods or services that are enforceable and legally binding and that specify all significant terms. These include minimum commitments associated with take-or-pay contracts, NGL processing agreements, drilling work program commitments, and agreements to secure capacity rights on third-party pipelines. Amounts exclude certain product purchase obligations related to marketing and trading activities for which there are no minimum purchase requirements or the amounts are not fixed or determinable. Total costs incurred under take-or-pay and throughput obligations were $120 million, $111 million, and $132 million in 2020, 2019, and 2018, respectively. |
Finance Lease, Liability, Maturity | At December 31, 2020, contractual obligations for long-term operating leases, finance leases, and purchase obligations are as follows: Net Minimum Commitments (1) Operating Leases (2) Finance Leases (3) Purchase Obligations (4) (In millions) 2021 $ 120 $ 3 $ 236 2022 70 3 203 2023 33 3 203 2024 27 4 160 2025 7 4 159 Thereafter 25 29 600 Total future minimum payments 282 46 $ 1,561 Less: imputed interest (21) (8) N/A Total lease liabilities 261 38 N/A Current portion 116 2 N/A Non-current portion $ 145 $ 36 N/A (1) Excludes commitments for jointly owned fields and facilities for which the Company is not the operator. (2) Amounts represent future payments associated with oil and gas operations inclusive of amounts billable to partners and other working interest owners. Such payments may be capitalized as a component of oil and gas properties and subsequently depreciated, impaired, or written off as exploration expense. (3) Amounts represent the Company’s finance lease obligation related to the Company’s Midland, Texas regional office building. (4) Amounts represent any agreement to purchase goods or services that are enforceable and legally binding and that specify all significant terms. These include minimum commitments associated with take-or-pay contracts, NGL processing agreements, drilling work program commitments, and agreements to secure capacity rights on third-party pipelines. Amounts exclude certain product purchase obligations related to marketing and trading activities for which there are no minimum purchase requirements or the amounts are not fixed or determinable. Total costs incurred under take-or-pay and throughput obligations were $120 million, $111 million, and $132 million in 2020, 2019, and 2018, respectively. |
Long-term Purchase Commitment | At December 31, 2020, contractual obligations for long-term operating leases, finance leases, and purchase obligations are as follows: Net Minimum Commitments (1) Operating Leases (2) Finance Leases (3) Purchase Obligations (4) (In millions) 2021 $ 120 $ 3 $ 236 2022 70 3 203 2023 33 3 203 2024 27 4 160 2025 7 4 159 Thereafter 25 29 600 Total future minimum payments 282 46 $ 1,561 Less: imputed interest (21) (8) N/A Total lease liabilities 261 38 N/A Current portion 116 2 N/A Non-current portion $ 145 $ 36 N/A (1) Excludes commitments for jointly owned fields and facilities for which the Company is not the operator. (2) Amounts represent future payments associated with oil and gas operations inclusive of amounts billable to partners and other working interest owners. Such payments may be capitalized as a component of oil and gas properties and subsequently depreciated, impaired, or written off as exploration expense. (3) Amounts represent the Company’s finance lease obligation related to the Company’s Midland, Texas regional office building. (4) Amounts represent any agreement to purchase goods or services that are enforceable and legally binding and that specify all significant terms. These include minimum commitments associated with take-or-pay contracts, NGL processing agreements, drilling work program commitments, and agreements to secure capacity rights on third-party pipelines. Amounts exclude certain product purchase obligations related to marketing and trading activities for which there are no minimum purchase requirements or the amounts are not fixed or determinable. Total costs incurred under take-or-pay and throughput obligations were $120 million, $111 million, and $132 million in 2020, 2019, and 2018, respectively. |
Schedule of Future Minimum Lease Payments for Capital Leases | As a result of electing the transitional practical expedient to apply the provisions of the standard at its adoption date instead of the earliest comparative period presented, below are the required ASU Leases (Topic 840) disclosures for prior periods: Operating Leases (1) Finance Leases (2) (In millions) Year ended December 31, 2018 2019 $ 61 $ 1 2020-2021 64 3 2022-2023 53 4 2024 & Beyond 42 32 Total $ 220 $ 40 (1) Includes leases for buildings, facilities, and related equipment with varying expiration dates through 2042. Total rent expense, net of amounts capitalized and sublease income was $76 million in 2018. (2) This represents the Company’s capital lease obligation related to its Midland, Texas office building. The imputed interest rate necessary to reduce the net minimum lease payments to present value of the lease term is 4.4 percent, or $16 million as of December 31, 2018. |
Schedule of Future Minimum Leases Payments for Operating Leases | As a result of electing the transitional practical expedient to apply the provisions of the standard at its adoption date instead of the earliest comparative period presented, below are the required ASU Leases (Topic 840) disclosures for prior periods: Operating Leases (1) Finance Leases (2) (In millions) Year ended December 31, 2018 2019 $ 61 $ 1 2020-2021 64 3 2022-2023 53 4 2024 & Beyond 42 32 Total $ 220 $ 40 (1) Includes leases for buildings, facilities, and related equipment with varying expiration dates through 2042. Total rent expense, net of amounts capitalized and sublease income was $76 million in 2018. (2) This represents the Company’s capital lease obligation related to its Midland, Texas office building. The imputed interest rate necessary to reduce the net minimum lease payments to present value of the lease term is 4.4 percent, or $16 million as of December 31, 2018. |
RETIREMENT AND DEFERRED COMPE_2
RETIREMENT AND DEFERRED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Changes in Benefit Obligation, Fair Value of Plan Assets and Funded Status of Pension and Postretirement Benefit Plans | The following tables set forth the benefit obligation, fair value of plan assets and funded status as of December 31, 2020, 2019, and 2018, and the underlying weighted average actuarial assumptions used for the U.K. Pension Plan and U.S. postretirement benefit plan. Apache uses a measurement date of December 31 for its pension and postretirement benefit plans. 2020 2019 2018 Pension Postretirement Pension Postretirement Pension Postretirement (In millions) Change in Projected Benefit Obligation Projected benefit obligation at beginning of year $ 199 $ 20 $ 187 $ 27 $ 216 $ 27 Service cost 3 1 3 2 4 2 Interest cost 4 — 5 1 5 1 Foreign currency exchange rates 8 — 7 — (11) — Actuarial losses (gains) 30 1 15 (9) (11) (2) Plan settlements — — (14) — (11) — Benefits paid (11) (4) (4) (2) (5) (3) Retiree contributions — 2 — 1 — 2 Projected benefit obligation at end of year 233 20 199 20 187 27 Change in Plan Assets Fair value of plan assets at beginning of year 228 — 208 — 238 — Actual return on plan assets 31 — 25 — (6) — Foreign currency exchange rates 9 — 8 — (13) — Employer contributions 5 2 5 1 5 2 Plan settlements — — (14) — (11) — Benefits paid (11) (4) (4) (2) (5) (4) Retiree contributions — 2 — 1 — 2 Fair value of plan assets at end of year 262 — 228 — 208 — Funded status at end of year $ 29 $ (20) $ 29 $ (20) $ 21 $ (27) Amounts recognized in Consolidated Balance Sheet Current liability $ — $ (2) $ — $ (2) $ — $ (2) Non-current asset (liability) 29 (18) 29 (18) 21 (25) $ 29 $ (20) $ 29 $ (20) $ 21 $ (27) Pre-tax Amounts Recognized in Accumulated Other Comprehensive Income (Loss) Accumulated gain (loss) $ (11) $ 16 $ (7) $ 19 $ (13) $ 10 Weighted Average Assumptions used as of December 31 Discount rate 1.40 % 2.06 % 2.10 % 3.00 % 2.90 % 4.13 % Salary increases 4.50 % N/A 4.30 % N/A 4.70 % N/A Expected return on assets 2.20 % N/A 2.20 % N/A 2.80 % N/A Healthcare cost trend Initial N/A 6.00 % N/A 6.25 % N/A 6.50 % Ultimate in 2025 N/A 5.00 % N/A 5.00 % N/A 5.00 % |
Allocations for Plan Asset Holding and Target Allocation for Company's Plan Asset | A breakout of previous allocations for plan asset holdings and the target allocation for the Company’s plan assets are summarized below: Target Percentage of 2020 2020 2019 Asset Category Equity securities: Overseas quoted equities 19 % 19 % 23 % Total equity securities 19 % 19 % 23 % Debt securities: U.K. government bonds 65 % 64 % 62 % U.K. corporate bonds 16 % 16 % 15 % Total debt securities 81 % 80 % 77 % Cash — 1 % — Total 100 % 100 % 100 % |
Fair Values of Plan Assets for Each Major Asset Category Based on Nature and Significant Concentration of Risks in Plan Assets | The following tables present the fair values of plan assets for each major asset category based on the nature and significant concentration of risks in plan assets at December 31, 2020 and 2019: December 31, 2020 2019 (In millions) Equity securities: Overseas quoted equities $ 49 $ 52 Total equity securities 49 52 Debt securities: U.K. government bonds 168 140 U.K. corporate bonds 43 35 Total debt securities 211 175 Cash 2 1 Fair value of plan assets $ 262 $ 228 |
Components of Net Periodic Cost and Underlying Weighted Average Actuarial Assumptions Used for Pension and Postretirement Benefit Plans | The following tables set forth the components of the net periodic cost and the underlying weighted average actuarial assumptions used for the pension and postretirement benefit plans as of December 31, 2020, 2019, and 2018: 2020 2019 2018 Pension Postretirement Pension Postretirement Pension Postretirement (In millions) Components of Net Periodic Benefit Cost Service cost $ 3 $ 1 $ 3 $ 2 $ 4 $ 2 Interest cost 4 — 5 1 5 1 Expected return on assets (5) — (5) — (7) — Amortization of gain — (1) — (1) — — Settlement loss — — — — 1 — Net periodic benefit cost $ 2 $ — $ 3 $ 2 $ 3 $ 3 Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for the Years Ended December 31 Discount rate 2.10 % 3.00 % 2.90 % 4.13 % 2.60 % 3.44 % Salary increases 4.30 % N/A 4.70 % N/A 4.70 % N/A Expected return on assets 2.20 % N/A 2.80 % N/A 2.90 % N/A Healthcare cost trend Initial N/A 6.25 % N/A 6.50 % N/A 6.75 % Ultimate in 2025 N/A 5.00 % N/A 5.00 % N/A 5.00 % |
Expected Future Benefit Payment | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Pension Postretirement (In millions) 2021 $ 5 $ 2 2022 6 2 2023 7 2 2024 6 2 2025 6 2 Years 2026-2030 36 6 |
REDEMABLE NONCONTROLLING INTE_2
REDEMABLE NONCONTROLLING INTEREST - ALTUS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Preferred Units | The net transaction price was allocated to the preferred redeemable noncontrolling interest and the embedded features according to the associated initial fair value measurements as follows: June 12, 2019 (In millions) Redeemable noncontrolling interest - Altus Preferred Unit limited partners $ 517 Preferred Units embedded derivative 94 $ 611 Activity related to the Preferred Units for the years ended December 31, 2020 and 2019 is as follows: Units Outstanding Financial Position (1) (In millions, except unit data) Redeemable noncontrolling interest — Preferred Units: at December 31, 2018 — $ — Issuance of Preferred Units, net 625,000 517 Distribution of in-kind additional Preferred Units 13,163 — Allocation of Altus Midstream net income N/A 38 Redeemable noncontrolling interest - Altus Preferred Unit limited partners: at December 31, 2019 638,163 555 Distribution of in-kind additional Preferred Units 22,531 — Cash distributions to Altus Preferred Unit limited partners — (23) Allocation of Altus Midstream LP net income N/A 76 Redeemable noncontrolling interest - Altus Preferred Unit limited partners: at December 31, 2020 660,694 608 Preferred Units embedded derivative 139 $ 747 (1) The Preferred Units are redeemable at Altus Midstream’s option at a redemption price (the Redemption Price), which as of December 31, 2020 was the greater of (i) an 11.5 percent internal rate of return and (ii) a 1.3 times multiple of invested capital. As of December 31, 2020, the Redemption Price would have been based on 1.3 times multiple of invested capital, which was $813 million and greater than using an 11.5 percent internal rate of return, which was $717 million. N/A - not applicable. |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Common Stock Outstanding | The following table provides changes to the Company’s common shares outstanding for the years ended December 31, 2020, 2019, and 2018: For the Year Ended December 31, 2020 2019 2018 Balance, beginning of year 376,062,670 374,696,222 380,954,864 Shares issued for stock-based compensation plans: Treasury shares issued 17,448 31,701 2,454 Common shares issued 1,402,512 1,334,747 1,566,237 Treasury shares acquired — — (7,827,333) Balance, end of year 377,482,630 376,062,670 374,696,222 |
Reconciliation of Components of Basic and Diluted Net Income (Loss) Per Common Share | The following table provides a reconciliation of the components of basic and diluted net income (loss) per common share for the years ended December 31, 2020, 2019, and 2018: 2020 2019 2018 Loss Shares Per Share Loss Shares Per Share Income Shares Per Share (In millions, except per share amounts) Basic: Income (loss) attributable to common stock $ (4,860) 378 $ (12.86) $ (3,553) 377 $ (9.43) $ 40 382 $ 0.11 Effect of Dilutive Securities: Stock options and other $ — — $ — $ — — $ — $ — 2 $ — Diluted: Income (loss) attributable to common stock $ (4,860) 378 $ (12.86) $ (3,553) 377 $ (9.43) $ 40 384 $ 0.11 |
Description of Stock Based Compensation Plans and Related Costs | The following table summarizes the Company’s stock-settled and cash-settled compensation costs: For the Year Ended December 31, 2020 2019 2018 (In millions) Stock-settled and cash-settled compensation expensed $ 40 $ 110 $ 157 Stock-settled and cash-settled compensation capitalized 7 28 37 Total stock-settled and cash-settled compensation costs $ 47 $ 138 $ 194 |
Summary of Stock Options Activities | The following table summarizes stock option activity for the years ended December 31, 2020, 2019, and 2018: 2020 2019 2018 Shares Weighted Average Shares Weighted Average Shares Weighted Average (In thousands, except exercise price amounts) Outstanding, beginning of year 4,298 $ 75.24 4,872 $ 75.95 4,593 $ 83.36 Granted — — — — 812 45.93 Exercised — — — — (29) 41.79 Forfeited (37) 44.98 (80) 34.58 (121) 74.58 Expired (724) 92.14 (494) 88.82 (383) 104.21 Outstanding, end of year (1) 3,537 72.10 4,298 75.24 4,872 75.95 Expected to vest (2) 150 45.77 495 49.11 1,274 48.74 Exercisable, end of year (3) 3,387 73.26 3,803 78.64 3,598 85.59 (1) As of December 31, 2020, options outstanding had a weighted average remaining contractual life of 3.6 years and no intrinsic value. (2) As of December 31, 2020, options expected to vest had a weighted average remaining contractual life of 7.0 years and no intrinsic value. (3) As of December 31, 2020, options exercisable had a weighted average remaining contractual life of 3.4 years and no intrinsic value. |
Schedule of Assumptions Used | The following table summarizes specific assumptions used in the Company’s valuation: 2020 2019 2018 Expected volatility N/A N/A 33.74% Expected dividend yields N/A N/A 2.16% Expected term (in years) N/A N/A 6 Risk-free rate N/A N/A 2.42% Weighted-average grant-date fair value N/A N/A $ 13.15 N/A - not applicable. |
Schedule of Restricted Stock and Restricted Stock Units Activity | The following table summarizes stock-settled restricted stock unit activity for the years ended December 31, 2020, 2019, and 2018: 2020 2019 2018 Units Weighted Units Weighted Units Weighted (In thousands, except per share amounts) Non-vested, beginning of year 2,448 $ 46.65 3,153 $ 55.54 4,920 $ 56.67 Granted 1,352 24.60 1,479 36.81 608 45.59 Vested (3) (1,933) 48.65 (1,899) 53.99 (2,023) 55.10 Forfeited (315) 30.09 (285) 45.06 (352) 56.69 Non-vested, end of year (1)(2) 1,552 28.43 2,448 46.65 3,153 55.54 (1) As of December 31, 2020, there was $14 million of total unrecognized compensation cost related to 1,551,807 unvested stock-settled restricted stock units. (2) As of December 31, 2020, the weighted-average remaining life of unvested stock-settled restricted stock units is approximately 0.7 years. (3) The grant date fair values of the stock-settled awards vested during 2020, 2019, and 2018 were approximately $94 million, $103 million, and $111 million, respectively. The following table summarizes cash-settled restricted stock phantom unit activity for the years ended December 31, 2020, 2019, and 2018: For the Year Ended December 31, 2020 2019 2018 (In thousands) Non-vested, beginning of year 5,384 1,818 59 Adjustment for ALTM reverse stock split (1) (1,246) — — Granted (2) 3,462 4,831 1,973 Vested (1,618) (616) (38) Forfeited (1,559) (649) (176) Non-vested, end of year (3) 4,423 5,384 1,818 (1) On June 30, 2020, Altus executed a 1-for-20 reverse stock split of its outstanding common stock. Outstanding cash-settled awards are based on the per-share market price of ALTM stock. (2) Restricted stock phantom units granted during 2020 and 2019 included 3,378,486 and 3,401,477 awards, respectively, based on the per-share market price of Apache common stock and 83,239 and 1,429,135 awards, respectively, based on the per-share market price of ALTM common stock. The restricted stock phantom units granted during 2020 based on ALTM’s per-share market price reflect the 1-for-20 reverse stock split described above. (3) The outstanding liability for the unvested cash-settled restricted stock phantom units that had not been recognized as of December 31, 2020 was approximately $28 million. The following table summarizes stock-settled conditional restricted stock unit activity for the year ended December 31, 2020: Units Weighted Average Grant- Date Fair Value (1) (In thousands) Non-vested, beginning of year 781 $ 52.69 Granted 18 62.31 Vested (445) 41.10 Forfeited (16) 56.66 Expired (227) 70.70 Non-vested, end of year (2)(3) 111 63.15 (1) The fair value of each conditional restricted stock unit award is estimated as of the date of grant using a Monte Carlo simulation with the following assumptions used for all grants made under the plan: (i) a three-year continuous risk-free interest rate; (ii) a constant volatility assumption based on the historical realized stock price volatility of the Company and the designated peer group; and (iii) the historical stock prices and expected dividends of the common stock of the Company and its designated peer group. (2) As of December 31, 2020, there was no unrecognized compensation cost related to 111,126 unvested stock-settled conditional restricted stock units. (3) As of December 31, 2020, the weighted-average remaining life of the unvested stock-settled conditional restricted stock units is approximately 0.0 years. The following table summarizes cash-settled conditional restricted stock unit activity for the year ended December 31, 2020: Units (In thousands) Non-vested, beginning of year 2,320 Granted 1,687 Vested (2) Forfeited (542) Expired (46) Non-vested, end of year (1) 3,417 (1) As of December 31, 2020, the outstanding liability for the unvested cash-settled conditional restricted stock units that had not been recognized was approximately $14 million. |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | Components of accumulated other comprehensive income (loss) include the following: As of December 31, 2020 2019 2018 (In millions) Share of equity method interests other comprehensive loss $ (1) $ (1) $ — Pension and postretirement benefit plan ( Note 12 ) 15 17 4 Accumulated other comprehensive income $ 14 $ 16 $ 4 |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Financial Segment Information | Financial information for each segment is presented below: Egypt (1) North Sea U.S. Altus Midstream Intersegment Eliminations & Other Total (2) Upstream (In millions) 2020 Oil revenues $ 1,102 $ 795 $ 1,209 $ — $ — $ 3,106 Natural gas revenues 280 67 251 — — 598 Natural gas liquids revenues 8 21 304 — — 333 Oil, natural gas, and natural gas liquids production revenues 1,390 883 1,764 — — 4,037 Purchased oil and gas sales — — 394 4 — 398 Midstream service affiliate revenues — — — 145 (145) — 1,390 883 2,158 149 (145) 4,435 Operating Expenses: Lease operating expenses 424 305 400 — (2) 1,127 Gathering, processing, and transmission 38 50 291 38 (143) 274 Purchased oil and gas costs — — 354 3 — 357 Taxes other than income — — 108 15 — 123 Exploration 63 28 168 — 15 274 Depreciation, depletion, and amortization 601 380 779 12 — 1,772 Asset retirement obligation accretion — 73 32 4 — 109 Impairments 529 7 3,963 2 — 4,501 1,655 843 6,095 74 (130) 8,537 Operating Income (Loss) $ (265) $ 40 $ (3,937) $ 75 $ (15) (4,102) Other Income (Expense): Gain on divestitures, net 32 Derivative instrument losses, net (223) Other 64 General and administrative (290) Transaction, reorganization, and separation (54) Financing costs, net (267) Loss Before Income Taxes $ (4,840) Total Assets (3) $ 3,003 $ 2,220 $ 5,540 $ 1,786 $ 197 $ 12,746 Net Property and Equipment $ 1,955 $ 1,773 $ 4,760 $ 196 $ 135 $ 8,819 Additions to Net Property and Equipment $ 454 $ 215 $ 345 $ 12 $ 136 $ 1,162 Egypt (1) North Sea U.S. Altus Midstream Intersegment Eliminations & Other Total (2) Upstream (In millions) 2019 Oil revenues $ 1,969 $ 1,163 $ 2,098 $ — $ — $ 5,230 Natural gas revenues 295 90 293 — — 678 Natural gas liquids revenues 12 23 372 — — 407 Oil, natural gas, and natural gas liquids production revenues 2,276 1,276 2,763 — — 6,315 Purchased oil and gas sales — — 176 — — 176 Midstream service affiliate revenues — — — 136 (136) — 2,276 1,276 2,939 136 (136) 6,491 Operating Expenses: Lease operating expenses 484 320 645 — (2) 1,447 Gathering, processing, and transmission 40 45 299 56 (134) 306 Purchased oil and gas costs — — 142 — — 142 Taxes other than income — — 194 13 — 207 Exploration 100 2 688 — 15 805 Depreciation, depletion, and amortization 708 366 1,566 40 — 2,680 Asset retirement obligation accretion — 76 29 2 — 107 Impairments — — 1,648 1,301 — 2,949 1,332 809 5,211 1,412 (121) 8,643 Operating Income (Loss) $ 944 $ 467 $ (2,272) $ (1,276) $ (15) (2,152) Other Income (Expense): Gain on divestitures, net 43 Derivative instrument losses, net (35) Other 54 General and administrative (406) Transaction, reorganization, and separation (50) Financing costs, net (462) Loss Before Income Taxes $ (3,008) Total Assets (3) $ 3,700 $ 2,473 $ 10,388 $ 1,479 $ 67 $ 18,107 Net Property and Equipment $ 2,573 $ 1,956 $ 9,385 $ 206 $ 38 $ 14,158 Additions to Net Property and Equipment $ 454 $ 183 $ 1,696 $ 308 $ 93 $ 2,734 Egypt (1) North Sea U.S. Altus Midstream Intersegment Eliminations & Other Total (2) Upstream (In millions) 2018 Oil revenues $ 2,396 $ 1,179 $ 2,271 $ — $ — $ 5,846 Natural gas revenues 339 122 458 — — 919 Natural gas liquids revenues 13 20 550 — — 583 Oil, natural gas, and natural gas liquids production revenues 2,748 1,321 3,279 — — 7,348 Purchased oil and gas sales — — 357 — — 357 Midstream service affiliate revenues — — — 77 (77) — 2,748 1,321 3,636 77 (77) 7,705 Operating Expenses: Lease operating expenses 428 341 670 — — 1,439 Gathering, processing, and transmission 47 42 282 54 (77) 348 Purchased oil and gas costs — — 340 — — 340 Taxes other than income — — 207 8 — 215 Exploration 88 192 219 — 4 503 Depreciation, depletion, and amortization 745 375 1,266 19 — 2,405 Asset retirement obligation accretion — 75 32 1 — 108 Impairments 63 10 438 — — 511 1,371 1,035 3,454 82 (73) 5,869 Operating Income (Loss) $ 1,377 $ 286 $ 182 $ (5) $ (4) 1,836 Other Income (Expense): Gain on divestitures, net 23 Derivative instrument losses, net (17) Other 53 General and administrative (431) Transaction, reorganization, and separation (28) Financing costs, net (478) Income Before Income Taxes $ 958 Total Assets (3) $ 4,260 $ 2,456 $ 12,962 $ 1,857 $ 47 $ 21,582 Net Property and Equipment $ 2,856 $ 2,148 $ 12,145 $ 1,227 $ 45 $ 18,421 Additions to Net Property and Equipment $ 594 $ 223 $ 2,544 $ 545 $ 8 $ 3,914 (1) Includes revenue from non-customers for the years ended December 31, 2020, 2019, and 2018 of: For the Year Ended December 31, 2020 2019 2018 (In millions) Oil $ 95 $ 410 $ 592 Natural gas 14 40 58 Natural gas liquids — 1 2 (2) Includes a noncontrolling interest in Egypt and Altus Midstream. (3) Intercompany balances are excluded from total assets. |
SUPPLEMENTAL OIL AND GAS DISC_2
SUPPLEMENTAL OIL AND GAS DISCLOSURES (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Extractive Industries [Abstract] | |
Revenue and Direct Cost Information Relating to Company's Oil and Gas Exploration and Production Activities | The following table sets forth revenue and direct cost information relating to the Company’s oil and gas exploration and production activities. Apache has no long-term agreements to purchase oil or gas production from foreign governments or authorities. United Egypt (1) North Sea Other Total (1) (In millions, except per boe) 2020 Oil and gas production revenues $ 1,764 $ 1,390 $ 883 $ — $ 4,037 Operating cost: Depreciation, depletion, and amortization (2) 726 540 377 — 1,643 Asset retirement obligation accretion 32 — 73 — 105 Lease operating expenses 400 424 305 — 1,129 Gathering, processing, and transmission 291 38 50 — 379 Exploration expenses 168 63 28 15 274 Impairments related to oil and gas properties 3,938 374 7 — 4,319 Production taxes (3) 106 — — — 106 Income tax (818) (22) 17 — (823) 4,843 1,417 857 15 7,132 Results of operations $ (3,079) $ (27) $ 26 $ (15) $ (3,095) 2019 Oil and gas production revenues $ 2,763 $ 2,276 $ 1,276 $ — $ 6,315 Operating cost: Depreciation, depletion, and amortization (2) 1,508 641 363 — 2,512 Asset retirement obligation accretion 29 — 76 — 105 Lease operating expenses 645 484 320 — 1,449 Gathering, processing, and transmission 299 40 45 — 384 Exploration expenses 688 100 2 15 805 Impairments related to oil and gas properties 1,633 — — — 1,633 Production taxes (3) 191 — — — 191 Income tax (468) 455 188 — 175 4,525 1,720 994 15 7,254 Results of operations $ (1,762) $ 556 $ 282 $ (15) $ (939) 2018 Oil and gas production revenues $ 3,279 $ 2,748 $ 1,321 $ — $ 7,348 Operating cost: Depreciation, depletion, and amortization (2) 1,206 688 371 — 2,265 Asset retirement obligation accretion 32 — 75 — 107 Lease operating expenses 670 428 341 — 1,439 Gathering, processing, and transmission 282 47 42 — 371 Exploration expenses 219 88 192 4 503 Impairments related to oil and gas properties 265 63 10 — 338 Production taxes (3) 203 — — — 203 Income tax 87 645 116 — 848 2,964 1,959 1,147 4 6,074 Results of operations $ 315 $ 789 $ 174 $ (4) $ 1,274 (1) Includes a noncontrolling interest in Egypt. (2) Reflects DD&A of capitalized costs of oil and gas properties and, therefore, does not agree with DD&A reflected on Note 17—Business Segment Information . (3) Reflects only amounts directly related to oil and gas producing properties and, therefore, does not agree with taxes other than income reflected on Note 17—Business Segment Information . |
Costs Incurred in Oil and Gas Property Acquisitions, Exploration and Development Activities | Costs Incurred in Oil and Gas Property Acquisitions, Exploration, and Development Activities United Egypt (2) North Sea Other Total (2) (In millions) 2020 Acquisitions: Proved $ — $ 7 $ — $ — $ 7 Unproved 4 — — — 4 Exploration 8 102 68 150 328 Development 332 378 162 — 872 Costs incurred (1) $ 344 $ 487 $ 230 $ 150 $ 1,211 (1) Includes capitalized interest and asset retirement costs as follows: Capitalized interest $ — $ — $ — $ 3 $ 3 Asset retirement costs 9 — 29 — 38 2019 Acquisitions: Proved $ 3 $ 5 $ — $ — $ 8 Unproved 47 10 — — 57 Exploration 162 139 62 105 468 Development 1,500 374 119 3 1,996 Costs incurred (1) $ 1,712 $ 528 $ 181 $ 108 $ 2,529 (1) Includes capitalized interest and asset retirement costs as follows: Capitalized interest $ 23 $ — $ 5 $ 4 $ 32 Asset retirement costs 14 — (111) — (97) 2018 Acquisitions: Proved $ — $ 6 $ — $ — $ 6 Unproved 111 16 — — 127 Exploration 640 175 113 12 940 Development 1,791 457 133 — 2,381 Costs incurred (1) $ 2,542 $ 654 $ 246 $ 12 $ 3,454 (1) Includes capitalized interest and asset retirement costs as follows: Capitalized interest $ 23 $ — $ 11 $ 2 $ 36 Asset retirement costs 93 — (62) — 31 (2) Includes a noncontrolling interest in Egypt. The following table sets forth the capitalized costs and associated accumulated depreciation, depletion, and amortization relating to the Company’s oil and gas acquisition, exploration, and development activities: United Egypt (1) North Other Total (1) (In millions) 2020 Proved properties $ 20,343 $ 12,069 $ 8,805 $ — $ 41,217 Unproved properties 348 77 42 135 602 20,691 12,146 8,847 135 41,819 Accumulated DD&A (16,252) (10,290) (7,081) — (33,623) $ 4,439 $ 1,856 $ 1,766 $ 135 $ 8,196 2019 Proved properties $ 20,291 $ 11,614 $ 8,635 $ — $ 40,540 Unproved properties 509 109 10 38 666 20,800 11,723 8,645 38 41,206 Accumulated DD&A (11,783) (9,377) (6,700) — (27,860) $ 9,017 $ 2,346 $ 1,945 $ 38 $ 13,346 (1) Includes a noncontrolling interest in Egypt.. |
Proved Reserve Data | There are numerous uncertainties inherent in estimating quantities of proved reserves and projecting future rates of production and timing of development expenditures. The reserve data in the following tables only represent estimates and should not be construed as being exact. Crude Oil and Condensate United Egypt (1) North Total (1) (Thousands of barrels) Proved developed reserves: December 31, 2017 304,279 124,568 92,598 521,445 December 31, 2018 300,484 110,014 104,491 514,989 December 31, 2019 278,145 103,573 101,712 483,430 December 31, 2020 206,936 95,981 86,566 389,483 Proved undeveloped reserves: December 31, 2017 31,904 16,198 14,013 62,115 December 31, 2018 45,182 9,484 11,278 65,944 December 31, 2019 46,716 10,831 10,049 67,596 December 31, 2020 25,516 11,228 7,273 44,017 Total proved reserves: Balance December 31, 2017 336,183 140,766 106,611 583,560 Extensions, discoveries and other additions 61,976 22,473 15,682 100,131 Purchases of minerals in-place 140 — — 140 Revisions of previous estimates (14,334) (9,556) 10,613 (13,277) Production (38,252) (34,185) (17,137) (89,574) Sales of minerals in-place (47) — — (47) Balance December 31, 2018 345,666 119,498 115,769 580,933 Extensions, discoveries and other additions 52,297 21,039 9,017 82,353 Revisions of previous estimates (16,446) 4,752 5,132 (6,562) Production (38,344) (30,885) (18,157) (87,386) Sales of minerals in-place (18,312) — — (18,312) Balance December 31, 2019 324,861 114,404 111,761 551,026 Extensions, discoveries and other additions 17,858 17,855 5,275 40,988 Revisions of previous estimates (69,247) 2,541 (4,756) (71,462) Production (32,299) (27,591) (18,441) (78,331) Sales of minerals in-place (8,721) — — (8,721) Balance December 31, 2020 232,452 107,209 93,839 433,500 (1) Includes proved reserves of 36 MMbbls, 38 MMbbls, 40 MMbbls, and 47 MMbbls as of December 31, 2020, 2019, 2018, and 2017, respectively, attributable to a noncontrolling interest in Egypt. Natural Gas Liquids United Egypt (1) North Total (1) (Thousands of barrels) Proved developed reserves: December 31, 2017 171,005 685 2,025 173,715 December 31, 2018 197,574 502 1,938 200,014 December 31, 2019 158,794 667 2,317 161,778 December 31, 2020 150,599 716 2,053 153,368 Proved undeveloped reserves: December 31, 2017 29,559 39 353 29,951 December 31, 2018 33,796 60 631 34,487 December 31, 2019 23,569 90 660 24,319 December 31, 2020 15,141 126 320 15,587 Total proved reserves: Balance December 31, 2017 200,564 724 2,378 203,666 Extensions, discoveries and other additions 60,990 144 1,444 62,578 Purchases of minerals in-place 40 — — 40 Revisions of previous estimates (9,250) 31 (819) (10,038) Production (20,969) (337) (434) (21,740) Sales of minerals in-place (5) — — (5) Balance December 31, 2018 231,370 562 2,569 234,501 Extensions, discoveries and other additions 41,343 27 697 42,067 Revisions of previous estimates (32,569) 508 345 (31,716) Production (24,959) (340) (634) (25,933) Sales of minerals in-place (32,822) — — (32,822) Balance December 31, 2019 182,363 757 2,977 186,097 Extensions, discoveries and other additions 11,435 97 312 11,844 Revisions of previous estimates (469) 264 (207) (412) Production (27,133) (276) (709) (28,118) Sales of minerals in-place (456) — — (456) Balance December 31, 2020 165,740 842 2,373 168,955 (1) Includes proved reserves of 281 Mbbls, 252 Mbbls, 187 Mbbls, and 241 Mbbls as of December 31, 2020, 2019, 2018, and 2017, respectively, attributable to a noncontrolling interest in Egypt. Natural Gas United Egypt (1) North Total (1) (Millions of cubic feet) Proved developed reserves: December 31, 2017 1,347,009 540,667 83,342 1,971,018 December 31, 2018 1,626,403 476,132 95,347 2,197,882 December 31, 2019 945,938 433,382 106,329 1,485,649 December 31, 2020 1,052,756 409,035 68,159 1,529,950 Proved undeveloped reserves: December 31, 2017 297,226 47,255 11,063 355,544 December 31, 2018 267,090 33,006 15,804 315,900 December 31, 2019 115,040 24,704 16,604 156,348 December 31, 2020 76,504 12,572 8,341 97,417 Total proved reserves: Balance December 31, 2017 1,644,235 587,922 94,405 2,326,562 Extensions, discoveries and other additions 704,135 79,394 55,274 838,803 Purchases of minerals in-place 906 — — 906 Revisions of previous estimates (239,204) (38,892) (21,933) (300,029) Production (216,538) (119,286) (16,595) (352,419) Sales of minerals in-place (41) — — (41) Balance December 31, 2018 1,893,493 509,138 111,151 2,513,782 Extensions, discoveries and other additions 249,205 34,758 27,711 311,674 Revisions of previous estimates (509,753) 18,570 4,015 (487,168) Production (233,447) (104,380) (19,944) (357,771) Sales of minerals in-place (338,520) — — (338,520) Balance December 31, 2019 1,060,978 458,086 122,933 1,641,997 Extensions, discoveries and other additions 60,965 83,718 8,140 152,823 Revisions of previous estimates 215,166 (19,849) (33,541) 161,776 Production (205,594) (100,348) (21,032) (326,974) Sales of minerals in-place (2,255) — — (2,255) Balance December 31, 2020 1,129,260 421,607 76,500 1,627,367 (1) Includes proved reserves of 141 Bcf, 153 Bcf, 170 Bcf, and 196 Bcf as of December 31, 2020, 2019, 2018, and 2017, respectively, attributable to a noncontrolling interest in Egypt. Total Equivalent Reserves United Egypt (1) North Total (1) (Thousands barrels of oil equivalent) Proved developed reserves: December 31, 2017 699,786 215,364 108,513 1,023,663 December 31, 2018 769,125 189,871 122,320 1,081,316 December 31, 2019 594,595 176,470 121,751 892,816 December 31, 2020 532,994 164,870 99,979 797,843 Proved undeveloped reserves: December 31, 2017 111,001 24,112 16,210 151,323 December 31, 2018 123,493 15,045 14,543 153,081 December 31, 2019 89,458 15,038 13,476 117,972 December 31, 2020 53,408 13,449 8,983 75,840 Total proved reserves: Balance December 31, 2017 810,787 239,476 124,723 1,174,986 Extensions, discoveries and other additions 240,322 35,849 26,338 302,509 Purchases of minerals in-place 331 — — 331 Revisions of previous estimates (63,451) (16,007) 6,139 (73,319) Production (95,312) (54,402) (20,337) (170,051) Sales of minerals in-place (59) — — (59) Balance December 31, 2018 892,618 204,916 136,863 1,234,397 Extensions, discoveries and other additions 135,174 26,859 14,333 176,366 Revisions of previous estimates (133,974) 8,355 6,146 (119,473) Production (102,211) (48,622) (22,115) (172,948) Sales of minerals in-place (107,554) — — (107,554) Balance December 31, 2019 684,053 191,508 135,227 1,010,788 Extensions, discoveries and other additions 39,454 31,905 6,944 78,303 Revisions of previous estimates (33,854) (502) (10,554) (44,910) Production (93,698) (44,592) (22,655) (160,945) Sales of minerals in-place (9,553) — — (9,553) Balance December 31, 2020 586,402 178,319 108,962 873,683 (1) Includes include total proved reserves of 59 MMboe, 64 MMboe, 68 MMboe, and 80 MMboe as of December 31, 2020, 2019, 2018, and 2017, respectively, attributable to a noncontrolling interest in Egypt. |
Unaudited Information of Future Net Cash Flows For Oil and Gas Reserves, Net of Income Tax Expense | The following table sets forth unaudited information concerning future net cash flows for proved oil and gas reserves, net of income tax expense. Income tax expense has been computed using expected future tax rates and giving effect to tax deductions and credits available, under current laws, and which relate to oil and gas producing activities. This information does not purport to present the fair market value of the Company’s oil and gas assets, but does present a standardized disclosure concerning possible future net cash flows that would result under the assumptions used. United Egypt (1) North Total (1) (In millions) 2020 Cash inflows $ 12,537 $ 5,560 $ 4,122 $ 22,219 Production costs (6,244) (1,704) (2,388) (10,336) Development costs (1,555) (633) (2,448) (4,636) Income tax expense — (1,096) 316 (780) Net cash flows 4,738 2,127 (398) 6,467 10 percent discount rate (1,829) (437) 1,111 (1,155) Discounted future net cash flows (2) $ 2,909 $ 1,690 $ 713 $ 5,312 2019 Cash inflows $ 21,694 $ 8,306 $ 7,454 $ 37,454 Production costs (10,642) (1,847) (2,730) (15,219) Development costs (1,740) (707) (2,651) (5,098) Income tax expense (27) (1,930) (784) (2,741) Net cash flows 9,285 3,822 1,289 14,396 10 percent discount rate (4,003) (808) 297 (4,514) Discounted future net cash flows (2) $ 5,282 $ 3,014 $ 1,586 $ 9,882 2018 Cash inflows $ 29,906 $ 9,866 $ 9,206 $ 48,978 Production costs (13,699) (1,799) (2,588) (18,086) Development costs (2,150) (792) (2,714) (5,656) Income tax expense (19) (2,455) (1,352) (3,826) Net cash flows 14,038 4,820 2,552 21,410 10 percent discount rate (6,516) (1,066) (107) (7,689) Discounted future net cash flows (2) $ 7,522 $ 3,754 $ 2,445 $ 13,721 (1) Includes discounted future net cash flows of approximately $563 million , $1.0 billion, and $1.3 billion as of December 31, 2020, 2019, and 2018, respectively, attributable to a noncontrolling interest in Egypt. (2) Estimated future net cash flows before income tax expense, discounted at 10 percent per annum, totaled approximately $7.1 billion , $12.4 billion, and $16.9 billion as of December 31, 2020, 2019, and 2018, respectively. |
Principal Sources of Change In Discounted Future Net Cash Flows | The following table sets forth the principal sources of change in the discounted future net cash flows: For the Year Ended December 31, 2020 2019 2018 (In millions) Sales, net of production costs $ (2,422) $ (4,291) $ (5,335) Net change in prices and production costs (5,753) (3,034) 3,902 Discoveries and improved recovery, net of related costs 751 2,042 3,889 Change in future development costs 20 (75) 47 Previously estimated development costs incurred during the period 576 983 910 Revision of quantities (418) (741) (648) Purchases of minerals in-place — — 6 Accretion of discount 1,236 1,693 1,216 Change in income taxes 1,533 720 (1,125) Sales of minerals in-place (104) (817) (1) Change in production rates and other 11 (319) 777 $ (4,570) $ (3,839) $ 3,638 |
NATURE OF OPERATIONS (Details)
NATURE OF OPERATIONS (Details) | 12 Months Ended |
Dec. 31, 2020Area | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of geographical areas | 3 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2018 | |
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Asset impairments | $ 1,400,000,000 | $ 4,501,000,000 | $ 2,949,000,000 | $ 511,000,000 | |||
Goodwill impairment | 87,000,000 | 0 | 0 | ||||
Impairment for early termination of drilling rig leases | $ 13,000,000 | ||||||
Inventory write-downs | 5,000,000 | 4,000,000 | |||||
Other asset impairments | 9,000,000 | ||||||
Capitalized exploratory well costs, impairment | 10,000,000 | ||||||
Equity method investment | 0 | 0 | 113,000,000 | ||||
Cash and cash equivalent | 247,000,000 | 262,000,000 | 247,000,000 | ||||
Restricted cash | 0 | 0 | 0 | ||||
Oil and gas property impaired, fair value | 628,000,000 | 1,900,000,000 | 628,000,000 | ||||
Divested unproved properties and leasehold | 0 | 149,000,000 | 10,000,000 | ||||
Gathering, processing, and transmission facilities ($206 and $203 related to Altus VIE) | 799,000,000 | 670,000,000 | 799,000,000 | ||||
Other property and equipment | 1,140,000,000 | $ 1,140,000,000 | 1,140,000,000 | ||||
Percentage of production available to recover these operating and capital costs over contractually defined periods (up to) | 40.00% | ||||||
Receivables from contracts with customers, net of allowance for doubtful accounts | 945,000,000 | $ 670,000,000 | 945,000,000 | ||||
Restructuring cumulative cost incurred to date | 79,000,000 | ||||||
Transaction, reorganization, and separation | 54,000,000 | 50,000,000 | 28,000,000 | ||||
Egypt | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Goodwill impairment | 87,000,000 | 87,000,000 | 0 | 0 | |||
Employee Severance | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Transaction, reorganization, and separation | 51,000,000 | 26,000,000 | 6,000,000 | ||||
Consulting and Legal Fees | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Transaction, reorganization, and separation | 2,000,000 | 2,000,000 | 22,000,000 | ||||
Office closure | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Transaction, reorganization, and separation | 1,000,000 | ||||||
Employee Termination and Office Closures | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Transaction, reorganization, and separation | 15,000,000 | ||||||
Other restructuring | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Transaction, reorganization, and separation | 7,000,000 | ||||||
Oil and gas, purchased | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Oil and gas production revenues | 398,000,000 | 176,000,000 | 357,000,000 | ||||
Gathering, processing, and transmission | 357,000,000 | 142,000,000 | 340,000,000 | ||||
Oil and gas, purchased | Revision of Prior Period, Reclassification, Adjustment | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Oil and gas production revenues | 176,000,000 | 357,000,000 | |||||
Gathering, processing, and transmission | 142,000,000 | 340,000,000 | |||||
Alpine High Play | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Oil and gas property impaired, fair value | 203,000,000 | 203,000,000 | |||||
Oklahoma And Texas | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Asset impairments for property and equipment | $ 240,000,000 | 255,000,000 | |||||
(Loss) gain on sale of oil and gas properties | $ (7,000,000) | ||||||
Oil and gas proved property | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Asset impairments for property and equipment | $ 4,319,000,000 | 1,484,000,000 | 328,000,000 | ||||
Oil and gas proved property | Significant Unobservable Inputs (Level 3) | Measurement Input, Discount Rate | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Oil and gas properties, measurement inputs | 10.00% | ||||||
Oil and gas proved property | United States | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Asset impairments for property and equipment | 3,900,000,000 | $ 3,938,000,000 | 1,484,000,000 | 265,000,000 | |||
Oil and gas proved property | Egypt | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Asset impairments for property and equipment | 354,000,000 | 374,000,000 | 0 | 63,000,000 | |||
Oil and gas proved property | North Sea | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Asset impairments for property and equipment | 7,000,000 | 7,000,000 | 0 | 0 | |||
Oil and gas proved property | Oklahoma And Texas | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Asset impairments for property and equipment | 101,000,000 | ||||||
Gathering, processing, and transmission facilities | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Asset impairments for property and equipment | 56,000,000 | ||||||
Oil and gas property impaired, fair value | 46,000,000 | ||||||
Gathering, processing, and transmission facilities ($206 and $203 related to Altus VIE) | 799,000,000 | 670,000,000 | 799,000,000 | ||||
Accumulated depreciation | 310,000,000 | 323,000,000 | 310,000,000 | ||||
(Loss) gain on sale of oil and gas properties | 0 | 0 | |||||
Gathering, processing, and transmission facilities | Egypt | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Asset impairments | $ 68,000,000 | ||||||
Oil And Gas Properties, Unproved | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Asset impairments for property and equipment | 101,000,000 | 768,000,000 | 224,000,000 | ||||
Oil And Gas Properties, Unproved | United States | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Asset impairments for property and equipment | 92,000,000 | 760,000,000 | 96,000,000 | ||||
Oil And Gas Properties, Unproved | Egypt | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Asset impairments for property and equipment | 8,000,000 | 8,000,000 | 0 | ||||
Oil And Gas Properties, Unproved | North Sea | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Asset impairments for property and equipment | 1,000,000 | 0 | 128,000,000 | ||||
Divested unproved properties and leasehold | $ 10,000,000 | ||||||
Oil And Gas Properties, Unproved | Oklahoma And Texas | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Divested unproved properties and leasehold | 149,000,000 | ||||||
Oil And Gas Properties, Unproved | Oklahoma And Texas | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Asset impairments for property and equipment | 149,000,000 | ||||||
Other Working Capital | Oklahoma And Texas | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Asset impairments for property and equipment | 5,000,000 | ||||||
Power Generators | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
(Loss) gain on sale of oil and gas properties | (2,000,000) | ||||||
Other Property and Equipment | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Accumulated depreciation | 817,000,000 | $ 864,000,000 | 817,000,000 | ||||
Other Property and Equipment | Minimum | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Useful lives of gas gathering, transmission and processing facilities | 3 years | ||||||
Other Property and Equipment | Maximum | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Useful lives of gas gathering, transmission and processing facilities | 20 years | ||||||
ALTM | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Cash and cash equivalent | 6,000,000 | $ 24,000,000 | $ 6,000,000 | ||||
ALTM | Gathering, processing, and transmission facilities | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Asset impairments for property and equipment | $ 1,300,000,000 | ||||||
Apache Egypt | Sinopec | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Ownership percentage by noncontrolling owners | 33.33% | ||||||
ALTM | Third-party investors | |||||||
Schedule Of Significant Accounting Policies [Line Items] | |||||||
Ownership percentage by noncontrolling owners | 21.00% | 21.00% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Asset Impairments Recorded in Connection with Fair Value Assessments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Significant Accounting Policies [Line Items] | |||||
Equity method investment | $ 0 | $ 0 | $ 113 | ||
Divested unproved properties and leasehold | 0 | 149 | 10 | ||
Goodwill | 87 | 0 | 0 | ||
Inventory and other | 27 | 21 | 4 | ||
Impairments | $ 1,400 | 4,501 | 2,949 | 511 | |
Oil and gas proved property | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Tangible Asset Impairment Charges | $ 20 | 4,319 | 1,484 | 328 | |
Gathering, processing, and transmission facilities | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Tangible Asset Impairment Charges | $ 68 | $ 1,295 | $ 56 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Allowance for Credit Loss Roll-forward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for credit loss at beginning of year | $ 88 | $ 92 | $ 84 |
Accounts Receivable, Credit Loss Expense (Reversal) | 7 | 3 | 9 |
Accounts Receivable, Allowance For Credit Loss, Write-offs, Net Of Recoveries | 0 | (7) | (1) |
Allowance for credit loss at end of year | $ 95 | $ 88 | $ 92 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Non-Cash Impairments of Proved and Unproved Property and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Oil and gas proved property | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Asset impairments for property and equipment | $ 4,319 | $ 1,484 | $ 328 | |
Oil And Gas Properties, Unproved | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Asset impairments for property and equipment | 101 | 768 | 224 | |
U.S. | Oil and gas proved property | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Asset impairments for property and equipment | $ 3,900 | 3,938 | 1,484 | 265 |
U.S. | Oil And Gas Properties, Unproved | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Asset impairments for property and equipment | 92 | 760 | 96 | |
Egypt | Oil and gas proved property | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Asset impairments for property and equipment | 354 | 374 | 0 | 63 |
Egypt | Oil And Gas Properties, Unproved | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Asset impairments for property and equipment | 8 | 8 | 0 | |
North Sea | Oil and gas proved property | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Asset impairments for property and equipment | $ 7 | 7 | 0 | 0 |
North Sea | Oil And Gas Properties, Unproved | ||||
Schedule Of Significant Accounting Policies [Line Items] | ||||
Asset impairments for property and equipment | $ 1 | $ 0 | $ 128 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Changes to Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||||
Goodwill, Beginning Balance | $ 87 | $ 87 | $ 87 | $ 87 |
Impairments | (87) | 0 | 0 | |
Goodwill, Ending Balance | 0 | 87 | 87 | |
Egypt | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Beginning Balance | 87 | 87 | 87 | 87 |
Impairments | $ (87) | (87) | 0 | 0 |
Goodwill, Ending Balance | $ 0 | $ 87 | $ 87 |
ACQUISITIONS AND DIVESTITURES -
ACQUISITIONS AND DIVESTITURES - 2020 Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Leasehold and property acquisitions amount | $ 4 | $ 40 | $ 133 |
Proceeds from sale of oil and gas properties | 166 | 718 | 138 |
Permian Region | |||
Business Acquisition [Line Items] | |||
Leasehold and property acquisitions amount | 4 | 40 | $ 133 |
Permian Region | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||
Business Acquisition [Line Items] | |||
Proceeds from sale of oil and gas properties | 87 | 73 | |
Gain (loss) on sale of oil and gas properties | $ 13 | $ 33 |
ACQUISITIONS AND DIVESTITURES_2
ACQUISITIONS AND DIVESTITURES - 2019 Activity (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019USD ($)equity_option | Mar. 31, 2020USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)equity_option | Dec. 31, 2018USD ($) | |
Business Acquisition [Line Items] | |||||||
Proceeds from sale of oil and gas properties | $ 166 | $ 718 | $ 138 | ||||
Leasehold and property acquisitions amount | 4 | $ 40 | 133 | ||||
Number of joint venture equity options exercised | equity_option | 4 | 4 | |||||
Number of joint venture equity options | equity_option | 5 | 5 | |||||
OKLAHOMA | |||||||
Business Acquisition [Line Items] | |||||||
Gain (loss) on sale of oil and gas properties | $ 19 | ||||||
Permian Region | |||||||
Business Acquisition [Line Items] | |||||||
Leasehold and property acquisitions amount | 4 | $ 40 | $ 133 | ||||
Block 58 Offshore Suriname | |||||||
Business Acquisition [Line Items] | |||||||
Ownership percentage by noncontrolling owners | 50.00% | 50.00% | |||||
Proceeds received from joint venture | $ 100 | ||||||
Proceeds from joint venture agreement, for reimbursement of cost incurred | $ 79 | ||||||
Joint venture agreement, percentage of costs incurred for reimbursement | 50.00% | ||||||
Proceeds expected to receive from joint venture | $ 5,000 | $ 5,000 | |||||
Carrying cash consideration | $ 7,500 | $ 7,500 | |||||
Percentage of consideration carried on appraisal and development capital | 25.00% | 25.00% | |||||
Additional cash payment to receive upon achieving first production | $ 75 | ||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Oklahoma And Texas | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from sale of oil and gas properties | $ 322 | ||||||
Asset retirement obligation assumed | 49 | ||||||
Asset impairments for property and equipment | 240 | $ 255 | |||||
Gain (loss) on sale of oil and gas properties | $ (7) | ||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | OKLAHOMA | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from sale of oil and gas properties | $ 223 | ||||||
Gain (loss) on sale of oil and gas properties | 17 | ||||||
Property and equipment, net | $ 206 | ||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Permian Region | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from sale of oil and gas properties | 87 | 73 | |||||
Gain (loss) on sale of oil and gas properties | $ 13 | $ 33 |
ACQUISITIONS AND DIVESTITURES_3
ACQUISITIONS AND DIVESTITURES - 2018 Activity (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||||
Leasehold and property acquisitions amount | $ 4 | $ 40 | $ 133 | |
North Sea and Premian Regions | ||||
Business Acquisition [Line Items] | ||||
Proceeds from sale of certain non-core assets | 138 | |||
Gain on sale of non-core assets | 23 | |||
Permian Region | ||||
Business Acquisition [Line Items] | ||||
Leasehold and property acquisitions amount | 4 | 40 | $ 133 | |
Noncontrolling Interest, Altus | ||||
Business Acquisition [Line Items] | ||||
Noncontrolling interest | $ 406 | $ 69 | $ 73 | |
ALTM | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage by parent | 79.00% | |||
Altus Midstream LP | KAAC | ||||
Business Acquisition [Line Items] | ||||
Proceeds from contribution | $ 628 | |||
Assets contributed | $ 1,100 | |||
Third-party investors | ALTM | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage by noncontrolling owners | 21.00% | 21.00% |
CAPITALIZED EXPLORATORY WELL _3
CAPITALIZED EXPLORATORY WELL COSTS - Capitalized Exploratory Well Costs Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Capitalized Exploratory Well Costs that are Pending Determination of Proved Reserves [Roll Forward] | |||
Capitalized well costs at beginning of year | $ 141 | $ 159 | $ 350 |
Additions pending determination of proved reserves | 226 | 286 | 602 |
Divestitures and other | (38) | (100) | (82) |
Reclassifications to proved properties | (56) | (179) | (647) |
Charged to exploration expense | (76) | (25) | (64) |
Capitalized well costs at end of year | $ 197 | $ 141 | $ 159 |
CAPITALIZED EXPLORATORY WELL _4
CAPITALIZED EXPLORATORY WELL COSTS - Aging of Suspended Well Balances (Details) $ in Millions | Dec. 31, 2020USD ($)Project | Dec. 31, 2019USD ($)Project | Dec. 31, 2018USD ($)Project | Dec. 31, 2017USD ($) |
Extractive Industries [Abstract] | ||||
Exploratory well costs capitalized for a period of one year or less | $ 184 | $ 108 | $ 126 | |
Exploratory well costs capitalized for a period greater than one year | 13 | 33 | 33 | |
Capitalized exploratory well costs | $ 197 | $ 141 | $ 159 | $ 350 |
Number of projects with exploratory well costs capitalized for a period greater than one year | Project | 5 | 2 | 2 |
CAPITALIZED EXPLORATORY WELL _5
CAPITALIZED EXPLORATORY WELL COSTS - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory well costs capitalized for a period greater than one year | $ 13 | $ 33 | $ 33 |
Block 58 Offshore Suriname | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Ownership percentage by noncontrolling owners | 50.00% | ||
SURINAME | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory well costs capitalized for a period greater than one year | $ 28 |
CAPITALIZED EXPLORATORY WELL _6
CAPITALIZED EXPLORATORY WELL COSTS - Aging by Geographic Area of Exploratory Well Costs Capitalized Greater than One Year (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory well costs capitalized for a period greater than one year | $ 13 | $ 33 | $ 33 |
2019 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory well costs capitalized for a period greater than one year | 4 | ||
2018 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory well costs capitalized for a period greater than one year | 9 | ||
2017 and Prior | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory well costs capitalized for a period greater than one year | 0 | ||
Egypt | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory well costs capitalized for a period greater than one year | 13 | ||
Egypt | 2019 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory well costs capitalized for a period greater than one year | 4 | ||
Egypt | 2018 | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory well costs capitalized for a period greater than one year | 9 | ||
Egypt | 2017 and Prior | |||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||
Exploratory well costs capitalized for a period greater than one year | $ 0 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020Counterparty | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Number of derivative counterparties | 6 |
Expected timing until exercise of exchange option | 5 years 5 months 12 days |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Instruments (Details) - Natural Gas MMBTU in Thousands | 12 Months Ended |
Dec. 31, 2020$ / MMBTUMMBTU | |
Basis Swap Purchased | April to December 2021 | NYMEX Henry Hub/IF Waha | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative, nonmonetary notional amount (in MMBtu) | MMBTU | 37,580 |
Weighted average price differential | $ / MMBTU | (0.43) |
Basis Swap Purchased | January to December 2022 | NYMEX Henry Hub/IF Waha | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative, nonmonetary notional amount (in MMBtu) | MMBTU | 43,800 |
Weighted average price differential | $ / MMBTU | (0.45) |
Basis Swap Sold | April to December 2021 | NYMEX Henry Hub/IF HSC | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative, nonmonetary notional amount (in MMBtu) | MMBTU | 37,580 |
Weighted average price differential | $ / MMBTU | (0.07) |
Basis Swap Sold | January to December 2022 | NYMEX Henry Hub/IF HSC | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative, nonmonetary notional amount (in MMBtu) | MMBTU | 43,800 |
Weighted average price differential | $ / MMBTU | (0.08) |
DERIVATIVE INSTRUMENTS AND HE_5
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Assets and Liabilities Measured at Fair Value (Details) - Recurring - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Commodity Derivative Instruments | ||
Derivative [Line Items] | ||
Derivative asset, fair value | $ 11 | |
Derivative asset, netting | 0 | |
Derivative asset | 11 | $ 9 |
Derivative liability | 192 | 103 |
Commodity Derivative Instruments | Quoted Price in Active Markets (Level 1) | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 0 | |
Commodity Derivative Instruments | Significant Other Inputs (Level 2) | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 11 | |
Commodity Derivative Instruments | Significant Unobservable Inputs (Level 3) | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 0 | |
Pipeline capacity embedded derivatives | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 8 | |
Derivative asset, netting | 0 | |
Derivative asset | 8 | |
Derivative liability, fair value | 53 | |
Derivative liability, netting | 0 | |
Derivative liability | 53 | |
Pipeline capacity embedded derivatives | Quoted Price in Active Markets (Level 1) | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 0 | |
Derivative liability, fair value | 0 | |
Pipeline capacity embedded derivatives | Significant Other Inputs (Level 2) | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 8 | |
Derivative liability, fair value | 53 | |
Pipeline capacity embedded derivatives | Significant Unobservable Inputs (Level 3) | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 0 | |
Derivative liability, fair value | 0 | |
Preferred Units embedded derivative | ||
Derivative [Line Items] | ||
Derivative liability, fair value | 139 | 103 |
Derivative liability, netting | 0 | 0 |
Derivative liability | 139 | 103 |
Preferred Units embedded derivative | Quoted Price in Active Markets (Level 1) | ||
Derivative [Line Items] | ||
Derivative liability, fair value | 0 | 0 |
Preferred Units embedded derivative | Significant Other Inputs (Level 2) | ||
Derivative [Line Items] | ||
Derivative liability, fair value | 0 | 0 |
Preferred Units embedded derivative | Significant Unobservable Inputs (Level 3) | ||
Derivative [Line Items] | ||
Derivative liability, fair value | $ 139 | 103 |
Foreign currency derivative instruments | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 1 | |
Derivative asset, netting | 0 | |
Derivative asset | 1 | |
Foreign currency derivative instruments | Quoted Price in Active Markets (Level 1) | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 0 | |
Foreign currency derivative instruments | Significant Other Inputs (Level 2) | ||
Derivative [Line Items] | ||
Derivative asset, fair value | 1 | |
Foreign currency derivative instruments | Significant Unobservable Inputs (Level 3) | ||
Derivative [Line Items] | ||
Derivative asset, fair value | $ 0 |
DERIVATIVE INSTRUMENTS AND HE_6
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Fair Value Measurement Inputs (Details) - Significant Unobservable Inputs (Level 3) | Dec. 31, 2020$ / MMBTU |
Measurement Input, Risk Free Interest Rate | Minimum | |
Embedded Derivative [Line Items] | |
Preferred Units embedded derivative | 0.0732 |
Measurement Input, Risk Free Interest Rate | Maximum | |
Embedded Derivative [Line Items] | |
Preferred Units embedded derivative | 0.1173 |
Measurement Input Interest Rate Volatility | |
Embedded Derivative [Line Items] | |
Preferred Units embedded derivative | 0.3708 |
DERIVATIVE INSTRUMENTS AND HE_7
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Assets and Liabilities and Locations on Consolidated Balance Sheet (Details) - Recurring - Commodity Derivative Instruments - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 11 | $ 9 |
Derivative liability | 192 | 103 |
Current Assets: Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 6 | 2 |
Noncurrent Assets: Deferred charges and other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 5 | 7 |
Deferred Credits and Other Noncurrent Liabilities: Other | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 192 | $ 103 |
DERIVATIVE INSTRUMENTS AND HE_8
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Activities Recorded in the Statement of Consolidated Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized gain (loss), net | $ (136) | $ 9 | $ (120) |
Unrealized gain (loss), net | (87) | (44) | 103 |
Derivative instrument losses, net | (223) | (35) | (17) |
Commodity Derivative Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized gain (loss), net | (135) | 27 | (81) |
Unrealized gain (loss), net | 11 | (44) | 103 |
Amortization of put premium, realized loss | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized gain (loss), net | 0 | 0 | (39) |
Foreign currency derivative instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized gain (loss), net | (1) | 0 | 0 |
Unrealized gain (loss), net | (1) | 1 | 0 |
Treasury-lock | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Realized gain (loss), net | 0 | (18) | 0 |
Pipeline capacity embedded derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized gain (loss), net | (61) | 8 | 0 |
Preferred Units embedded derivative | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized gain (loss), net | $ (36) | $ (9) | $ 0 |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Inventories | $ 492 | $ 502 |
Drilling advances | 113 | 92 |
Prepaid assets and other | 71 | 58 |
Total Other current assets | $ 676 | $ 652 |
EQUITY METHOD INTERESTS - Summa
EQUITY METHOD INTERESTS - Summary of Investments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Equity Method Investments [Line Items] | |||
Equity method interests | $ 1,555 | $ 1,258 | |
Shin Oak Pipeline (Breviloba, LLC) | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method interests | 493 | ||
ALTM | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method interests | $ 1,555 | 1,258 | $ 91 |
ALTM | Gulf Coast Express Pipeline LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest | 16.00% | ||
Equity method interests | $ 284 | 291 | 91 |
ALTM | EPIC Crude Holdings, LP | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest | 15.00% | ||
Equity method interests | $ 176 | 163 | 0 |
ALTM | Permian Highway Pipeline LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest | 26.70% | ||
Equity method interests | $ 615 | 311 | 0 |
ALTM | Shin Oak Pipeline (Breviloba, LLC) | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest | 33.00% | ||
Equity method interests | $ 480 | $ 493 | $ 0 |
EQUITY METHOD INTERESTS - Addit
EQUITY METHOD INTERESTS - Additional Information (Details) - ALTM $ in Millions | Dec. 31, 2020USD ($)entity | Dec. 31, 2019USD ($)entity |
Schedule of Equity Method Investments [Line Items] | ||
Number of long-haul pipeline entities | entity | 4 | 4 |
Difference between carrying amount and underlying equity amount | $ | $ 38 | $ 30 |
EQUITY METHOD INTERESTS - Rollf
EQUITY METHOD INTERESTS - Rollforward Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Movement In Equity Method Interests [Roll Forward] | |||
Equity method interest, beginning balance | $ 1,258 | ||
Acquisitions | 0 | $ 671 | $ 91 |
Capital contributions | 327 | 501 | 0 |
Equity method interest, ending balance | 1,555 | 1,258 | |
Shin Oak Pipeline (Breviloba, LLC) | |||
Movement In Equity Method Interests [Roll Forward] | |||
Equity method interest, beginning balance | 493 | ||
Equity method interest, ending balance | 493 | ||
ALTM | |||
Movement In Equity Method Interests [Roll Forward] | |||
Equity method interest, beginning balance | 1,258 | 91 | |
Acquisitions | 671 | ||
Capital contributions | 327 | 501 | |
Distributions | (97) | (25) | |
Capitalized interest | 8 | 2 | |
Equity income (loss), net | 59 | 19 | |
Accumulated other comprehensive loss | (1) | ||
Equity method interest, ending balance | 1,555 | 1,258 | 91 |
ALTM | Gulf Coast Express Pipeline LLC | |||
Movement In Equity Method Interests [Roll Forward] | |||
Equity method interest, beginning balance | 291 | 91 | |
Acquisitions | 15 | ||
Capital contributions | 2 | 184 | |
Distributions | (51) | (16) | |
Capitalized interest | 0 | 0 | |
Equity income (loss), net | 42 | 17 | |
Accumulated other comprehensive loss | 0 | ||
Equity method interest, ending balance | 284 | 291 | 91 |
ALTM | EPIC Crude Holdings, LP | |||
Movement In Equity Method Interests [Roll Forward] | |||
Equity method interest, beginning balance | 163 | 0 | |
Acquisitions | 52 | ||
Capital contributions | 29 | 123 | |
Distributions | 0 | ||
Capitalized interest | 0 | 0 | |
Equity income (loss), net | (16) | (11) | |
Accumulated other comprehensive loss | (1) | ||
Equity method interest, ending balance | 176 | 163 | 0 |
ALTM | Permian Highway Pipeline LLC | |||
Movement In Equity Method Interests [Roll Forward] | |||
Equity method interest, beginning balance | 311 | 0 | |
Acquisitions | 162 | ||
Capital contributions | 296 | 147 | |
Distributions | 0 | ||
Capitalized interest | 8 | 2 | |
Equity income (loss), net | 0 | 0 | |
Accumulated other comprehensive loss | 0 | ||
Equity method interest, ending balance | 615 | 311 | 0 |
ALTM | Shin Oak Pipeline (Breviloba, LLC) | |||
Movement In Equity Method Interests [Roll Forward] | |||
Equity method interest, beginning balance | 493 | 0 | |
Acquisitions | 442 | ||
Capital contributions | 0 | 47 | |
Distributions | (46) | (9) | |
Capitalized interest | 0 | 0 | |
Equity income (loss), net | 33 | 13 | |
Accumulated other comprehensive loss | 0 | ||
Equity method interest, ending balance | $ 480 | $ 493 | $ 0 |
EQUITY METHOD INTERESTS - Sum_2
EQUITY METHOD INTERESTS - Summary of Combined Statement of Operations Equity Method Interests (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||
Operating revenues | $ 4,308 | $ 6,553 | $ 7,764 |
Operating income (loss) | (4,102) | (2,152) | 1,836 |
Net income (loss) | (4,904) | (3,682) | 286 |
Other comprehensive loss | (2) | 12 | 0 |
Equity Method Investment, Nonconsolidated Investee | |||
Schedule of Equity Method Investments [Line Items] | |||
Operating revenues | 707 | 302 | 3 |
Operating income (loss) | 331 | 121 | (6) |
Net income (loss) | 256 | 120 | (6) |
Other comprehensive loss | $ 3 | $ (8) | $ 0 |
EQUITY METHOD INTERESTS - Sum_3
EQUITY METHOD INTERESTS - Summary of Combined Statement of Balance Sheet Equity Method Interests (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | ||||
Current assets | $ 1,846 | $ 1,961 | ||
Total assets | 12,746 | 18,107 | $ 21,582 | |
Current liabilities | 1,308 | 1,855 | ||
Equity | (645) | 4,465 | $ 8,812 | $ 8,791 |
TOTAL LIABILITIES AND EQUITY | 12,746 | 18,107 | ||
Equity Method Investment, Nonconsolidated Investee | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Current assets | 260 | 441 | ||
Noncurrent assets | 7,678 | 6,435 | ||
Total assets | 7,938 | 6,876 | ||
Current liabilities | 206 | 478 | ||
Noncurrent liabilities | 1,191 | 958 | ||
Equity | 6,541 | 5,440 | ||
TOTAL LIABILITIES AND EQUITY | $ 7,938 | $ 6,876 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accrued operating expenses | $ 91 | $ 143 |
Accrued exploration and development | 167 | 319 |
Accrued gathering, processing, and transmission - Altus | 0 | 17 |
Accrued compensation and benefits | 170 | 212 |
Accrued interest | 140 | 135 |
Accrued income taxes | 25 | 51 |
Current asset retirement obligation | 56 | 47 |
Current operating lease liability | 116 | 169 |
Other | 97 | 56 |
Total Other current liabilities | $ 862 | $ 1,149 |
ASSET RETIREMENT OBLIGATION - S
ASSET RETIREMENT OBLIGATION - Schedule of changes to Asset Retirement Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Asset retirement obligation at beginning of year | $ 1,858 | $ 1,932 |
Liabilities incurred | 10 | 41 |
Liabilities divested | (26) | (56) |
Liabilities settled | (30) | (56) |
Accretion expense | 109 | 107 |
Revisions in estimated liabilities | 23 | (110) |
Asset retirement obligation at end of year | 1,944 | 1,858 |
Less current portion | (56) | (47) |
Asset retirement obligation, long-term | $ 1,888 | $ 1,811 |
ASSET RETIREMENT OBLIGATION - A
ASSET RETIREMENT OBLIGATION - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Additional abandonment liabilities associated with its drilling and development program | $ 10 | $ 41 |
Revisions in estimated liabilities | $ (23) | $ 110 |
DEBT AND FINANCING COSTS - Addi
DEBT AND FINANCING COSTS - Additional Information (Details) | Aug. 18, 2020USD ($) | Jun. 21, 2019USD ($) | Mar. 31, 2019USD ($) | Nov. 30, 2018USD ($)contract | Aug. 31, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2020GBP (£) | Aug. 17, 2020USD ($) | Mar. 26, 2020GBP (£) | Dec. 31, 2019GBP (£) | Jun. 19, 2019USD ($) | Mar. 31, 2018USD ($) |
Debt Instrument [Line Items] | ||||||||||||||
Loss (gain) from extinguishment of debt | $ (160,000,000) | $ 75,000,000 | $ 94,000,000 | |||||||||||
Unamortized discount | 35,000,000 | 42,000,000 | ||||||||||||
Debt issuance costs | 57,000,000 | 53,000,000 | ||||||||||||
Discount of debt amortization | 7,000,000 | 2,000,000 | $ 3,000,000 | |||||||||||
Commercial paper | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 3,500,000,000 | |||||||||||||
Period for borrowing funds | 270 days | |||||||||||||
Short-term debt outstanding | $ 0 | 0 | ||||||||||||
Altus Midstream LP | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt leverage ratio (less than) | 4 | 4 | ||||||||||||
Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt repurchased principle amount | $ 932,000,000 | $ 731,000,000 | ||||||||||||
Extinguishment of debt amount | 1,000,000,000 | 828,000,000 | ||||||||||||
Loss (gain) from extinguishment of debt | 75,000,000 | 94,000,000 | ||||||||||||
Unamortized debt issuance costs and discount | $ 7,000,000 | 5,000,000 | ||||||||||||
Apache credit facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit outstanding | $ 150,000,000 | 0 | ||||||||||||
Apache credit facility | Revolving Credit Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit facility, committed amount | $ 4,000,000,000 | |||||||||||||
Debt extension term | 1 year | |||||||||||||
Quarterly facility fees at per annum rate | 0.25% | |||||||||||||
Maximum potential lien on assets located in specified regions | $ 1,700,000,000 | |||||||||||||
Apache credit facility | Revolving Credit Facility | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt-to-capital ratio | 0.60 | |||||||||||||
Percentage of liens of companies consolidated asset | 15.00% | 15.00% | ||||||||||||
Apache credit facility | Revolving Credit Facility | Base Rate | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Margin percentage | 0.50% | |||||||||||||
Apache credit facility | Revolving Credit Facility | LIBOR | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Margin percentage | 1.50% | |||||||||||||
Unsecured Debt | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt instrument, face amount | $ 1,250,000,000 | $ 1,000,000,000 | ||||||||||||
Unsecured Debt | 4.375% notes due 2028 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt offering, aggregate principal amount | $ 1,000,000,000 | |||||||||||||
Debt interest rate | 4.375% | 4.375% | 4.375% | |||||||||||
Unsecured Debt | 4.250% Notes Due January 15, 2030 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt interest rate | 4.25% | |||||||||||||
Debt instrument, face amount | $ 600,000,000 | |||||||||||||
Unsecured Debt | 5.350% Notes Due July 1, 2049 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt interest rate | 5.35% | |||||||||||||
Debt instrument, face amount | $ 400,000,000 | |||||||||||||
Unsecured Debt | 4.625% Senior Notes Due In 2025 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt interest rate | 4.625% | |||||||||||||
Debt instrument, face amount | $ 500,000,000 | |||||||||||||
Unsecured Debt | 4.875% Senior Notes Due In 2027 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt interest rate | 4.875% | |||||||||||||
Debt instrument, face amount | $ 750,000,000 | |||||||||||||
Senior Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt repurchased principle amount | $ 644,000,000 | $ 588,000,000 | ||||||||||||
Loss (gain) from extinguishment of debt | 2,000,000 | (158,000,000) | ||||||||||||
Discount to par of debt repurchase | 38,000,000 | 168,000,000 | ||||||||||||
Debt instrument, repurchase early tender premium | 32,000,000 | |||||||||||||
Debt repurchase, accrued and unpaid interest | $ 6,000,000 | |||||||||||||
Debt instrument repurchase program | $ 428,000,000 | |||||||||||||
Line of Credit | Altus Midstream LP | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt covenant leverage ratio | 5 | 5 | ||||||||||||
Incentive distribution | $ 30,000,000 | |||||||||||||
Adjusted pursuant agreement consecutive equals or exceeds | $ 350,000,000 | |||||||||||||
Line of Credit | Altus Midstream LP | Maximum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt covenant leverage ratio | 5.50 | 5.50 | ||||||||||||
Line of Credit | Altus Midstream LP | Minimum | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Debt covenant leverage ratio | 4 | 4 | ||||||||||||
Line of Credit | Revolving Credit Facility | Altus Midstream LP | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Letters of credit outstanding, amount | $ 0 | 0 | ||||||||||||
Debt extension term | 1 year | |||||||||||||
Line of credit facility maximum borrowing capacity | $ 800,000,000 | |||||||||||||
Line of credit facility, number of extension options | contract | 2 | |||||||||||||
Line of credit facility, maximum borrowing capacity, if adding new lenders | $ 1,500,000,000 | |||||||||||||
Line of Credit | Letter of Credit | Altus Midstream LP | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit facility maximum borrowing capacity | 100,000,000 | |||||||||||||
Line of Credit | Swingline Loan Subfacility | Altus Midstream LP | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit facility maximum borrowing capacity | $ 100,000,000 | |||||||||||||
Line of Credit | Uncommitted Lines of Credit | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit outstanding | 0 | 0 | ||||||||||||
Line of Credit | Uncommitted Lines of Credit | Letter of Credit | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Letters of credit outstanding, amount | 17,000,000 | 3,000,000 | £ 34,000,000 | £ 22,000,000 | ||||||||||
Line of Credit | Apache credit facility | Revolving Credit Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit facility maximum borrowing capacity | $ 5,000,000,000 | |||||||||||||
Line of Credit | Apache credit facility | Letter of Credit | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Letters of credit outstanding, amount | 40,000,000 | £ 633,000,000 | £ 633,000,000 | £ 0 | ||||||||||
Line of credit facility, committed amount | 2,080,000,000 | |||||||||||||
Line of credit facility maximum borrowing capacity | 3,000,000,000 | |||||||||||||
Line of Credit | Altus credit facility | Revolving Credit Facility | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit outstanding | 624,000,000 | 396,000,000 | ||||||||||||
Line of Credit | Altus credit facility | Revolving Credit Facility | Altus Midstream LP | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Line of credit outstanding | $ 624,000,000 | $ 396,000,000 |
DEBT AND FINANCING COSTS - Sche
DEBT AND FINANCING COSTS - Schedule of Debt (Details) - USD ($) $ in Millions | Nov. 03, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2018 |
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 8,052 | $ 8,217 | ||
Finance lease obligations | 38 | 48 | ||
Unamortized discount | (35) | (42) | ||
Debt issuance costs | (57) | (53) | ||
Total debt | 8,772 | 8,566 | ||
Current maturities | (2) | (11) | ||
Long-term debt | 8,770 | 8,555 | ||
Apache credit facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility | 150 | 0 | ||
Notes and debentures before unamortized discount and debt issuance costs | ||||
Debt Instrument [Line Items] | ||||
Debt fair value | 8,500 | 8,400 | ||
Unsecured Debt | 3.625% notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 0 | 293 | ||
Debt interest rate | 3.625% | |||
Redemption price, percentage of principal amount redeemed | 100.00% | |||
Unsecured Debt | 3.25% notes due 2022 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 213 | 463 | ||
Debt interest rate | 3.25% | |||
Unsecured Debt | 2.625% notes due 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 123 | 181 | ||
Debt interest rate | 2.625% | |||
Unsecured Debt | 4.625% notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 500 | 0 | ||
Debt interest rate | 4.625% | |||
Unsecured Debt | 7.7% notes due 2026 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 79 | 79 | ||
Debt interest rate | 7.70% | |||
Unsecured Debt | 7.95% notes due 2026 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 133 | 133 | ||
Debt interest rate | 7.95% | |||
Unsecured Debt | 4.875% notes due 2027 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 750 | 0 | ||
Debt interest rate | 4.875% | |||
Unsecured Debt | 4.375% notes due 2028 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 993 | 1,000 | ||
Debt interest rate | 4.375% | 4.375% | ||
Unsecured Debt | 7.75% notes due in 2029 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 235 | 247 | ||
Debt interest rate | 7.75% | |||
Unsecured Debt | 4.25% notes due 2030 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 580 | 600 | ||
Debt interest rate | 4.25% | |||
Unsecured Debt | 6.0% notes due 2037 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 443 | 467 | ||
Debt interest rate | 6.00% | |||
Unsecured Debt | 5.1% notes due 2040 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 1,333 | 1,499 | ||
Debt interest rate | 5.10% | |||
Unsecured Debt | 5.25% notes due 2042 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 399 | 500 | ||
Debt interest rate | 5.25% | |||
Unsecured Debt | 4.75% notes due 2043 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 1,133 | 1,413 | ||
Debt interest rate | 4.75% | |||
Unsecured Debt | 4.25% notes due 2044 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 559 | 753 | ||
Debt interest rate | 4.25% | |||
Unsecured Debt | 7.375% debentures due 2047 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 150 | 150 | ||
Debt interest rate | 7.375% | |||
Unsecured Debt | 5.35% notes due 2049 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 390 | 400 | ||
Debt interest rate | 5.35% | |||
Unsecured Debt | 7.625% debentures due 2096 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 39 | 39 | ||
Debt interest rate | 7.625% | |||
Commercial paper | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 0 | 0 | ||
Line of Credit | Altus credit facility | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility | $ 624 | $ 396 |
DEBT AND FINANCING COSTS - Sc_2
DEBT AND FINANCING COSTS - Schedule of Long Term Debt by Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
2021 | $ 0 | |
2022 | 213 | |
2023 | 123 | |
2024 | 0 | |
2025 | 500 | |
Thereafter | 7,216 | |
Notes and debentures, excluding discounts and debt issuance costs | $ 8,052 | $ 8,217 |
DEBT AND FINANCING COSTS - Comp
DEBT AND FINANCING COSTS - Components of Financing Costs, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |||
Interest expense | $ 438 | $ 430 | $ 441 |
Amortization of debt issuance costs | 8 | 7 | 9 |
Capitalized interest | (12) | (37) | (44) |
Loss (gain) on extinguishment of debt | (160) | 75 | 94 |
Interest income | (7) | (13) | (22) |
Financing costs, net | $ 267 | $ 462 | $ 478 |
INCOME TAXES - Income (Loss) Be
INCOME TAXES - Income (Loss) Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (4,581) | $ (4,397) | $ (723) |
Foreign | (259) | 1,389 | 1,681 |
NET INCOME (LOSS) BEFORE INCOME TAXES | $ (4,840) | $ (3,008) | $ 958 |
INCOME TAXES - Total Provision
INCOME TAXES - Total Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current income taxes: | |||
Federal | $ (2) | $ 1 | $ (1) |
State | 0 | 0 | 0 |
Foreign | 178 | 659 | 895 |
Total current income taxes | 176 | 660 | 894 |
Deferred income taxes: | |||
Federal | 0 | 67 | (65) |
State | 0 | 0 | 2 |
Foreign | (112) | (53) | (159) |
Total deferred income taxes | (112) | 14 | (222) |
Total | $ 64 | $ 674 | $ 672 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Tax of Income Before Income Taxes and Total Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) at U.S. statutory rate | $ (1,016) | $ (631) | $ 201 |
State income tax, less federal effect | 0 | 1 | 2 |
Taxes related to foreign operations | 97 | 328 | 436 |
Tax credits | (13) | (6) | (13) |
Tax on deemed repatriation of foreign earnings | 0 | 0 | 103 |
Foreign tax credits | 0 | 0 | (336) |
Change in U.S. tax rate | 0 | 0 | 161 |
Net change in tax contingencies | 1 | 1 | (2) |
Goodwill impairment | 35 | 0 | 0 |
Sale of North Sea assets | 0 | 0 | (30) |
Valuation allowances | 965 | 972 | 118 |
All other, net | (5) | 9 | 32 |
Total | $ 64 | $ 674 | $ 672 |
INCOME TAXES - Net Deferred Tax
INCOME TAXES - Net Deferred Tax Liability (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||||
U.S. and state net operating losses | $ 2,306 | $ 2,108 | ||
Capital losses | 633 | 626 | ||
Tax credits and other tax incentives | 33 | 32 | ||
Foreign tax credits | 2,241 | 2,241 | ||
Accrued expenses and liabilities | 93 | 97 | ||
Asset retirement obligation | 654 | 618 | ||
Property & equipment | 261 | 0 | ||
Investment in Altus Midstream LP | 76 | 107 | ||
Net interest expense limitation | 252 | 162 | ||
Lease liability | 79 | 108 | ||
Other | 1 | 88 | ||
Total deferred tax assets | 6,629 | 6,187 | ||
Valuation allowance | (5,991) | (4,959) | $ (3,947) | $ (3,816) |
Net deferred tax assets | 638 | 1,228 | ||
Deferred tax liabilities: | ||||
Deferred income | 0 | 1 | ||
Equity investments | 4 | 0 | ||
Property and equipment | 750 | 1,432 | ||
Right-of-use asset | 74 | 106 | ||
Other | 13 | 6 | ||
Total deferred tax liabilities | 841 | 1,545 | ||
Net deferred income tax liability | $ 203 | $ 317 |
INCOME TAXES - Net Deferred T_2
INCOME TAXES - Net Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Deferred charges and other | $ 12 | $ 29 |
Liabilities: | ||
Income taxes | 215 | 346 |
Net deferred income tax liability | $ 203 | $ 317 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax [Line Items] | |||
Measurement period adjustment, additional deferred tax expense under the Act | $ 103 | ||
Increase (decrease) of valuation allowances | $ 1,000 | $ 1,000 | 131 |
Net interest expense carryforward | 1,100 | ||
Capital losses | 633 | 626 | |
Foreign tax credit carryforward, amount | 2,241 | 2,241 | |
Tax expense recorded for interest and penalties | 1 | 1 | 1 |
Accrued for payment of interest and penalties | 3 | 2 | 1 |
(Reduction) increase reserve for uncertain tax positions related to the current year | 11 | $ 58 | $ 2 |
U.S. | |||
Income Tax [Line Items] | |||
Operating loss carryforwards | 8,859 | ||
Operating loss carryforwards subject to annual limitation | 186 | ||
Capital losses | $ 1,800 | ||
Capital loss carryforward carryover period | 5 years | ||
Canada | |||
Income Tax [Line Items] | |||
Capital losses | $ 836 |
INCOME TAXES - Summary of Valua
INCOME TAXES - Summary of Valuation Allowance Against Certain Foreign Net Deferred Tax Assets and State Net Operating Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in Valuation Allowance of Deferred Tax Assets [Roll Forward] | |||
Balance at beginning of year | $ 4,959 | $ 3,947 | $ 3,816 |
State | 67 | 41 | 15 |
U.S. | 960 | 971 | 124 |
Foreign | 5 | 0 | (8) |
Balance at end of year | $ 5,991 | $ 4,959 | $ 3,947 |
INCOME TAXES - Net Operating Lo
INCOME TAXES - Net Operating Losses (Details) $ in Millions | Dec. 31, 2020USD ($) |
U.S. | |
Schedule Of Income Tax [Line Items] | |
Net operating losses | $ 8,859 |
State | |
Schedule Of Income Tax [Line Items] | |
Net operating losses | $ 6,566 |
INCOME TAXES - Schedule of Fore
INCOME TAXES - Schedule of Foreign Tax Credit Carryforward (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Foreign tax credit carryforward, amount | $ 2,241 | $ 2,241 |
INCOME TAXES - Reconciliation_2
INCOME TAXES - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Balance at beginning of year | $ 93 | $ 82 | $ 24 | $ 26 |
Additions based on tax positions related to prior year | 0 | 49 | 0 | |
Additions based on tax positions related to the current year | 11 | 9 | 0 | |
Reductions for tax positions of prior years | 0 | 0 | (2) | |
Balance at end of year | $ 93 | $ 82 | $ 24 | $ 26 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) $ in Millions | Sep. 10, 2020defendant | Sep. 11, 2019USD ($)plaintiff | Dec. 20, 2017Action | Jul. 17, 2017Actiondefendant | Mar. 21, 2016USD ($) | Mar. 20, 2016USD ($) | Dec. 31, 2020USD ($)Action | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2013USD ($) | Aug. 03, 2020USD ($) | Dec. 31, 2017AUD ($) | Apr. 30, 2017AUD ($) | Mar. 12, 2014USD ($) |
Commitment And Contingencies [Line Items] | ||||||||||||||
Accrued liability for legal contingencies | $ 70,000,000 | |||||||||||||
Environmental tax and royalty obligations | $ 100,000,000 | |||||||||||||
Retain right of obligations | 45,000,000 | |||||||||||||
Number of plaintiffs | plaintiff | 4 | |||||||||||||
Maximum cost considered to be recognized for additional reserve | 300,000 | |||||||||||||
Undiscounted reserve for environmental remediation | 2,000,000 | |||||||||||||
Standby loan agreed to provide related to ARO | $ 400,000,000 | |||||||||||||
Fixed operating lease expenses | 149,000,000 | $ 222,000,000 | ||||||||||||
Short-term lease expense | 80,000,000 | 18,000,000 | ||||||||||||
Financing costs, net | 267,000,000 | 462,000,000 | $ 478,000,000 | |||||||||||
Variable lease payment | 41,000,000 | 78,000,000 | ||||||||||||
Assets Held Under Finance Leases | ||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||
Depreciation | 2,000,000 | 7,000,000 | ||||||||||||
Financing costs, net | 2,000,000 | $ 3,000,000 | ||||||||||||
Apollo Exploration Lawsuit | ||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||
Loss contingency damages sought value | $ 200,000,000 | |||||||||||||
Canadian Operations Divestiture Dispute | ||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||
Loss contingency punitive damages | $ 60,000,000 | |||||||||||||
California Litigation | ||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||
Number of actions filed | Action | 2 | 3 | ||||||||||||
Number of defendants | defendant | 30 | |||||||||||||
Delaware Litigation | ||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||
Number of defendants | defendant | 25 | |||||||||||||
Castex Lawsuit | ||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||
Loss contingency damages sought value | 200,000,000 | |||||||||||||
Loss contingency estimate of possible loss | 60,000,000 | |||||||||||||
Oklahoma Class Actions | ||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||
Loss contingency damages sought value | $ 250,000,000 | |||||||||||||
Number of actions filed | Action | 2 | |||||||||||||
Apache Australia Operation | Australian Operations Divestiture Dispute | ||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||
Gain contingency, unrecorded amount | $ 80 | |||||||||||||
Loss contingency estimate of possible loss | $ 200 | |||||||||||||
Gulf Of Mexico Shelf Operations And Properties | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||
Proceeds from sale of operations and properties | $ 3,750,000,000 | |||||||||||||
Discounted asset abandonment liabilities assumed | $ 1,500,000,000 | |||||||||||||
Percentage of net profits interest for funding trust account | 10.00% | |||||||||||||
Minimum | Apollo Exploration Lawsuit | ||||||||||||||
Commitment And Contingencies [Line Items] | ||||||||||||||
Loss contingency damages sought value | $ 1,100,000,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Company's Weighted Average Lease Term and Discount Rate related to Leases (Details) | Dec. 31, 2020 |
Accounting Policies [Abstract] | |
Operating leases, weighted average remaining lease term | 3 years 8 months 12 days |
Finance leases, weighted average remaining lease term | 12 years 8 months 12 days |
Operating leases, weighted average discount rate | 4.20% |
Finance leases, weighted average discount rate | 4.40% |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Leases | |||
2021 | $ 120 | ||
2022 | 70 | ||
2023 | 33 | ||
2024 | 27 | ||
2025 | 7 | ||
Thereafter | 25 | ||
Total future minimum payments | 282 | ||
Less: imputed interest | (21) | ||
Total lease liabilities | 261 | ||
Current portion | 116 | $ 169 | |
Non-current portion | 145 | ||
Finance Leases | |||
2021 | 3 | ||
2022 | 3 | ||
2023 | 3 | ||
2024 | 4 | ||
2025 | 4 | ||
Thereafter | 29 | ||
Total future minimum payments | 46 | ||
Less: imputed interest | (8) | ||
Total lease liabilities | 38 | 48 | |
Current portion | 2 | ||
Non-current portion | 36 | ||
Purchase Obligations | |||
2021 | 236 | ||
2022 | 203 | ||
2023 | 203 | ||
2024 | 160 | ||
2025 | 159 | ||
Thereafter | 600 | ||
Total future minimum payments | 1,561 | ||
Total costs under take or pay and throughout obligation | $ 120 | $ 111 | $ 132 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:DeferredCostsAndOtherAssets | us-gaap:DeferredCostsAndOtherAssets | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Schedule of ASU Leases (Topic 840) disclosures for prior periods (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Operating Leases | |
2019 | $ 61 |
2020-2021 | 64 |
2022-2023 | 53 |
2024 & Beyond | 42 |
Total | 220 |
Finance Leases | |
2019 | 1 |
2020-2021 | 3 |
2022-2023 | 4 |
2024 & Beyond | 32 |
Total | 40 |
Net rental expenses | $ 76 |
Capital leases imputed interest rate | 4.40% |
Capital lease imputed interest rate amount | $ 16 |
RETIREMENT AND DEFERRED COMPE_3
RETIREMENT AND DEFERRED COMPENSATION PLANS - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Portion of employee's salary, employee contributions under non-qualified retirement savings plan | 50.00% | ||
Maximum percentage of compensation contributed by the company | 8.00% | ||
Percentage of additional contribution to money purchase retirement plan | 6.00% | ||
Maximum percentage of eligible compensation contributed by the participating employees | 50.00% | ||
Portion of employee's annual bonus, employee contributions under non-qualified retirement savings plan, vested | 75.00% | ||
Portion occurring as money purchase retirement plan and the non-qualified retirement/savings plan, vested | 20.00% | ||
Annual cost of retirement benefit plans | $ 43 | $ 52 | $ 52 |
Targeted ongoing funding level of pension plan policy, percent | 100.00% | ||
Outperformance relative to gilts for equities | 3.50% | ||
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation for pension plans | $ 207 | $ 181 | $ 167 |
Expected contribution towards pension and postretirement plan | 5 | ||
Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected contribution towards pension and postretirement plan | $ 2 |
RETIREMENT AND DEFERRED COMPE_4
RETIREMENT AND DEFERRED COMPENSATION PLANS - Changes in Benefit Obligation, Fair Value of Plan Assets and Funded Status of Pension and Postretirement Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in Plan Assets | |||
Fair value of plan assets at beginning of year | $ 228 | ||
Fair value of plan assets at end of year | 262 | $ 228 | |
Pension Benefits | |||
Change in Projected Benefit Obligation | |||
Projected benefit obligation at beginning of year | 199 | 187 | $ 216 |
Service cost | 3 | 3 | 4 |
Interest cost | 4 | 5 | 5 |
Foreign currency exchange rates | 8 | 7 | (11) |
Actuarial losses (gains) | 30 | 15 | (11) |
Plan settlements | 0 | (14) | (11) |
Benefits paid | (11) | (4) | (5) |
Retiree contributions | 0 | 0 | 0 |
Projected benefit obligation at end of year | 233 | 199 | 187 |
Change in Plan Assets | |||
Fair value of plan assets at beginning of year | 228 | 208 | 238 |
Actual return on plan assets | 31 | 25 | (6) |
Foreign currency exchange rates | 9 | 8 | (13) |
Employer contributions | 5 | 5 | 5 |
Plan settlements | 0 | (14) | (11) |
Benefits paid | (11) | (4) | (5) |
Retiree contributions | 0 | 0 | 0 |
Fair value of plan assets at end of year | 262 | 228 | 208 |
Funded status at end of year | 29 | 29 | 21 |
Amounts recognized in Consolidated Balance Sheet | |||
Current liability | 0 | 0 | 0 |
Non-current asset | 29 | 29 | 21 |
Amounts recognized in Consolidated Balance Sheet | 29 | 29 | 21 |
Pre-tax Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | |||
Accumulated gain (loss) | $ (11) | $ (7) | $ (13) |
Weighted Average Assumptions used as of December 31 | |||
Discount rate | 1.40% | 2.10% | 2.90% |
Salary increases | 4.50% | 4.30% | 4.70% |
Expected return on assets | 2.20% | 2.20% | 2.80% |
Postretirement Benefits | |||
Change in Projected Benefit Obligation | |||
Projected benefit obligation at beginning of year | $ 20 | $ 27 | $ 27 |
Service cost | 1 | 2 | 2 |
Interest cost | 0 | 1 | 1 |
Foreign currency exchange rates | 0 | 0 | 0 |
Actuarial losses (gains) | 1 | (9) | (2) |
Plan settlements | 0 | 0 | 0 |
Benefits paid | (4) | (2) | (3) |
Retiree contributions | 2 | 1 | 2 |
Projected benefit obligation at end of year | 20 | 20 | 27 |
Change in Plan Assets | |||
Fair value of plan assets at beginning of year | 0 | 0 | 0 |
Actual return on plan assets | 0 | 0 | 0 |
Foreign currency exchange rates | 0 | 0 | 0 |
Employer contributions | 2 | 1 | 2 |
Plan settlements | 0 | 0 | 0 |
Benefits paid | (4) | (2) | (4) |
Retiree contributions | 2 | 1 | 2 |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded status at end of year | (20) | (20) | (27) |
Amounts recognized in Consolidated Balance Sheet | |||
Current liability | (2) | (2) | (2) |
Non-current liability | (18) | (18) | (25) |
Amounts recognized in Consolidated Balance Sheet | (20) | (20) | (27) |
Pre-tax Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | |||
Accumulated gain (loss) | $ 16 | $ 19 | $ 10 |
Weighted Average Assumptions used as of December 31 | |||
Discount rate | 2.06% | 3.00% | 4.13% |
Healthcare cost trend | |||
Initial | 6.00% | 6.25% | 6.50% |
Ultimate in 2025 | 5.00% | 5.00% | 5.00% |
RETIREMENT AND DEFERRED COMPE_5
RETIREMENT AND DEFERRED COMPENSATION PLANS - Allocations for Plan Asset Holding and Target Allocation for Company's Plan Asset (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 100.00% | |
Percentage of Plan Assets at Year-End | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 19.00% | |
Percentage of Plan Assets at Year-End | 19.00% | 23.00% |
Overseas quoted equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 19.00% | |
Percentage of Plan Assets at Year-End | 19.00% | 23.00% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 81.00% | |
Percentage of Plan Assets at Year-End | 80.00% | 77.00% |
U.K. government bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 65.00% | |
Percentage of Plan Assets at Year-End | 64.00% | 62.00% |
U.K. corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 16.00% | |
Percentage of Plan Assets at Year-End | 16.00% | 15.00% |
Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 0.00% | |
Percentage of Plan Assets at Year-End | 1.00% | 0.00% |
RETIREMENT AND DEFERRED COMPE_6
RETIREMENT AND DEFERRED COMPENSATION PLANS - Fair Values of Plan Assets for Each Major Asset Category Based on Nature and Significant Concentration of Risks in Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 262 | $ 228 |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 49 | 52 |
Overseas quoted equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 49 | 52 |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 211 | 175 |
U.K. government bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 168 | 140 |
U.K. corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 43 | 35 |
Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 2 | $ 1 |
RETIREMENT AND DEFERRED COMPE_7
RETIREMENT AND DEFERRED COMPENSATION PLANS - Components of Net Periodic Cost and Underlying Weighted Average Actuarial Assumptions Used for Pension and Postretirement Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for the Years Ended December 31 | |||
Salary increases | 4.30% | 4.70% | 4.70% |
Expected return on assets | 2.20% | 2.80% | 2.90% |
Pension Benefits | |||
Components of Net Periodic Benefit Cost | |||
Service cost | $ 3 | $ 3 | $ 4 |
Interest cost | 4 | 5 | 5 |
Expected return on assets | (5) | (5) | (7) |
Amortization of gain | 0 | 0 | 0 |
Settlement loss | 0 | 0 | 1 |
Net periodic benefit cost | $ 2 | $ 3 | $ 3 |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for the Years Ended December 31 | |||
Discount rate | 2.10% | 2.90% | 2.60% |
Postretirement Benefits | |||
Components of Net Periodic Benefit Cost | |||
Service cost | $ 1 | $ 2 | $ 2 |
Interest cost | 0 | 1 | 1 |
Expected return on assets | 0 | 0 | 0 |
Amortization of gain | (1) | (1) | 0 |
Settlement loss | 0 | 0 | 0 |
Net periodic benefit cost | $ 0 | $ 2 | $ 3 |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost for the Years Ended December 31 | |||
Discount rate | 3.00% | 4.13% | 3.44% |
Healthcare cost trend | |||
Initial | 6.25% | 6.50% | 6.75% |
Ultimate in 2025 | 5.00% | 5.00% | 5.00% |
RETIREMENT AND DEFERRED COMPE_8
RETIREMENT AND DEFERRED COMPENSATION PLANS - Expected Future Benefit Payment (Details) $ in Millions | Dec. 31, 2020USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | $ 5 |
2022 | 6 |
2023 | 7 |
2024 | 6 |
2025 | 6 |
Years 2026-2030 | 36 |
Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | 2 |
2022 | 2 |
2023 | 2 |
2024 | 2 |
2025 | 2 |
Years 2026-2030 | $ 6 |
REDEMABLE NONCONTROLLING INTE_3
REDEMABLE NONCONTROLLING INTEREST - ALTUS - Additional Information (Details) $ in Millions | Jun. 12, 2019USD ($)qtr | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Class of Stock [Line Items] | ||||
Redeemable noncontrolling interest - Altus Preferred Unit limited partners | $ 0 | $ 611 | $ 0 | |
Altus Midstream LP | ||||
Class of Stock [Line Items] | ||||
Preferred Units, redemption terms, internal rate of return | 11.50% | |||
Preferred Units embedded derivative | $ 94 | $ 139 | ||
Altus Midstream LP | Redeemable Noncontrolling Interest - Altus Preferred Unit Limited Partners | ||||
Class of Stock [Line Items] | ||||
Aggregate issue price of Preferred Units | 625 | |||
Redeemable noncontrolling interest - Altus Preferred Unit limited partners | $ 611 | |||
Preferred Units, quarterly distribution rate per annum | 7.00% | |||
Preferred Units, increased quarterly distribution rate per annum upon specified events | 10.00% | |||
Preferred Units, distribution in-kind, number of quarters after issuance | qtr | 6 | |||
Preferred Units, redemption terms, internal rate of return | 11.50% | |||
Preferred Units, redemption terms, internal rate of return after fifth anniversary of closing | 13.75% | |||
Preferred Units, redemption terms, multiple of invested capital | 1.3 | 1.3 | ||
Preferred Units, exchangeable, number of preceding trading days | 20 days | |||
Preferred Units, exchangeable, discount percentage | 6.00% | |||
Maximum amount of distributions to common unit holders | $ 650 | |||
Issue discount | 4 | |||
Transaction costs | 10 | |||
Preferred Units embedded derivative | $ 94 |
REDEMABLE NONCONTROLLING INTE_4
REDEMABLE NONCONTROLLING INTEREST - ALTUS - Schedule of Preferred Units (Details) - Altus Midstream LP - USD ($) $ in Millions | Dec. 31, 2020 | Jun. 12, 2019 |
Class of Stock [Line Items] | ||
Preferred Units embedded derivative | $ 139 | $ 94 |
Redeemable Noncontrolling Interest - Altus Preferred Unit Limited Partners | ||
Class of Stock [Line Items] | ||
Redeemable noncontrolling interest - Altus Preferred Unit limited partners | 517 | |
Preferred Units embedded derivative | 94 | |
Transaction price, net | $ 611 |
REDEMABLE NONCONTROLLING INTE_5
REDEMABLE NONCONTROLLING INTEREST - ALTUS - Activity Related to Preferred Units (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Jun. 12, 2019 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Beginning balance | $ 555 | ||
Ending balance | 608 | $ 555 | |
Redeemable Noncontrolling Interest - Altus Preferred Unit Limited Partners | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Beginning balance | 555 | 0 | |
Issuance of Altus Preferred Units | 517 | ||
Allocation of Altus Midstream LP net income | 76 | 38 | |
Ending balance | 608 | $ 555 | |
Altus Midstream LP | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Preferred Units embedded derivative | 139 | $ 94 | |
Redeemable noncontrolling interest, net of embedded derivative liability | $ 747 | ||
Preferred Units, redemption terms, internal rate of return | 11.50% | ||
Preferred units, invested capital | $ 813 | ||
Preferred units, redemption price | $ 717 | ||
Altus Midstream LP | Redeemable Noncontrolling Interest - Altus Preferred Unit Limited Partners | |||
Movement In Preferred Units [Roll Forward] | |||
Preferred Units: beginning of period (in shares) | 638,163 | 0 | |
Issuance of Preferred Units, net (in shares) | 625,000 | ||
Distribution of in-kind additional Preferred Units (in shares) | 22,531 | 13,163 | |
Cash distributions to Altus Preferred Unit limited partners (in shares) | 0 | ||
Preferred Units: end of period (in shares) | 660,694 | 638,163 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||
Beginning balance | $ 555 | $ 0 | |
Issuance of Altus Preferred Units | 517 | ||
Distribution of in-kind additional Preferred Units | 0 | 0 | |
Cash distributions to Altus Preferred Unit limited partners | (23) | ||
Allocation of Altus Midstream LP net income | 76 | 38 | |
Ending balance | $ 608 | $ 555 | |
Preferred Units embedded derivative | $ 94 | ||
Preferred Units, redemption terms, internal rate of return | 11.50% | ||
Preferred Units, redemption terms, multiple of invested capital | 1.3 | 1.3 |
CAPITAL STOCK - Common Stock Ou
CAPITAL STOCK - Common Stock Outstanding (Details) - shares | 12 Months Ended | 91 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | |
Movement In Common Stock Outstanding [Roll Forward] | ||||
Balance, beginning of year (in shares) | 376,062,670 | 374,696,222 | 380,954,864 | |
Shares issued for stock-based compensation plans: | ||||
Treasury shares issued (in shares) | 17,448 | 31,701 | 2,454 | |
Common shares issued (in shares) | 1,402,512 | 1,334,747 | 1,566,237 | |
Treasury shares acquired (in shares) | 0 | 0 | (7,827,333) | (40,000,000) |
Balance, end of year (in shares) | 377,482,630 | 376,062,670 | 374,696,222 | 377,482,630 |
CAPITAL STOCK - Net Income Per
CAPITAL STOCK - Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basic: | |||
Net loss attributable to common stock | $ (4,860) | $ (3,553) | $ 40 |
Weighted average number of shares outstanding, basic (in shares) | 378 | 377 | 382 |
Basic net income (loss) per share (in USD per share) | $ (12.86) | $ (9.43) | $ 0.11 |
Effect of Dilutive Securities: | |||
Stock options and other, shares (in shares) | 0 | 0 | 2 |
Stock options and other, per share (in USD per share) | $ 0 | $ 0 | $ 0 |
Diluted: | |||
Income (loss) attributable to common stock | $ (4,860) | $ (3,553) | $ 40 |
Weighted average number of shares outstanding, diluted (in shares) | 378 | 377 | 384 |
Diluted net income (loss) per share (in USD per share) | $ (12.86) | $ (9.43) | $ 0.11 |
CAPITAL STOCK - Additional Info
CAPITAL STOCK - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | 91 Months Ended | ||||
Jan. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options and restricted stock, anti-dilutive (in shares) | 4,500,000 | 5,000,000 | 5,600,000 | |||||
Common stock share purchase, shares (in shares) | 40,000,000 | 40,000,000 | 40,000,000 | |||||
Treasury shares acquired (in shares) | 0 | 0 | 7,827,333 | 40,000,000 | ||||
Common stock share repurchase price (in USD per share) | $ 79.18 | |||||||
Common stock, quarterly dividend (in USD per share) | $ 0.025 | $ 0.25 | ||||||
Common stock, dividends, per share (in USD per share) | $ 0.10 | $ 1 | $ 1 | |||||
Shares authorized and available for grant (in shares) | 14,100,000 | 14,100,000 | ||||||
Shares Issued in the period (in shares) | 0 | 0 | ||||||
Shares exercised in the period (in shares) | 0 | 0 | (29,000) | |||||
Intrinsic value of options exercised | $ 0.1 | |||||||
Stock-settled and cash-settled compensation expensed | $ 40 | $ 110 | 157 | |||||
Stock-settled and cash-settled compensation capitalized | 7 | 28 | 37 | |||||
Stock Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total compensation cost related to non-vested awards not yet recognized | 0 | $ 0 | ||||||
Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total compensation cost related to non-vested awards not yet recognized | 14 | 14 | ||||||
Stock-settled and cash-settled compensation expensed | 39 | 104 | 101 | |||||
Stock-settled and cash-settled compensation capitalized | $ 6 | $ 24 | $ 29 | |||||
Awards granted during period (in shares) | 1,352,000 | 1,479,000 | 608,000 | |||||
Weighted average grant date fair value per share (in USD per share) | $ 24.60 | $ 36.81 | $ 45.59 | |||||
Restricted Stock | Subsequent Event | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Period in which stock options become exercisable | 3 years | |||||||
Total compensation cost related to non-vested awards not yet recognized | $ 22 | |||||||
Awards granted during period (in shares) | 1,354,349 | |||||||
Weighted average grant date fair value per share (in USD per share) | $ 16.18 | |||||||
Restricted Stock | Subsequent Event | ALTM | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Weighted average grant date fair value per share (in USD per share) | $ 48.84 | |||||||
Phantom Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total compensation cost related to non-vested awards not yet recognized | $ 28 | $ 28 | ||||||
Awards granted during period (in shares) | 3,462,000 | 4,831,000 | 1,973,000 | |||||
Phantom Units | Subsequent Event | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total compensation cost related to non-vested awards not yet recognized | $ 71 | |||||||
Awards granted during period (in shares) | 4,360,656 | |||||||
Phantom Units | Subsequent Event | ALTM | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total compensation cost related to non-vested awards not yet recognized | $ 3 | |||||||
Awards granted during period (in shares) | 56,836 | |||||||
In or after 2016 | Stock Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Period in which stock options become exercisable | 3 years | |||||||
Period in which stock options expires after grant date | 10 years |
CAPITAL STOCK - Description of
CAPITAL STOCK - Description of Stock Based Compensation Plans and Related Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | |||
Stock-settled and cash-settled compensation expensed | $ 40 | $ 110 | $ 157 |
Stock-settled and cash-settled compensation capitalized | 7 | 28 | 37 |
Total stock-settled and cash-settled compensation costs | $ 47 | $ 138 | $ 194 |
CAPITAL STOCK - Summary of Stoc
CAPITAL STOCK - Summary of Stock Options Activities (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, beginning of year, Shares (in shares) | 4,298,000 | 4,872,000 | 4,593,000 |
Granted, Shares (in shares) | 0 | 0 | 812,000 |
Exercised, Shares (in shares) | 0 | 0 | (29,000) |
Forfeited, Shares (in shares) | (37,000) | (80,000) | (121,000) |
Expired, Shares (in shares) | (724,000) | (494,000) | (383,000) |
Outstanding, end of year, Shares (in shares) | 3,537,000 | 4,298,000 | 4,872,000 |
Expected to vest, Shares (in shares) | 150,000 | 495,000 | 1,274,000 |
Exercisable, end of year, Shares (in shares) | 3,387,000 | 3,803,000 | 3,598,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Outstanding, beginning of year, weighted average exercise price (in USD per share) | $ 75.24 | $ 75.95 | $ 83.36 |
Granted, weighted average exercise price (in USD per share) | 0 | 0 | 45.93 |
Exercised, weighted average exercise price (in USD per share) | 0 | 0 | 41.79 |
Forfeited, weighted average exercise price (in USD per share) | 44.98 | 34.58 | 74.58 |
Expired, weighted average exercise price (in USD per share) | 92.14 | 88.82 | 104.21 |
Outstanding, end of year, weighted average exercise price (in USD per share) | 72.10 | 75.24 | 75.95 |
Expected to vest, weighted average exercise price (in USD per share) | 45.77 | 49.11 | 48.74 |
Exercisable, end of year, weighted average exercise price (in USD per share) | $ 73.26 | $ 78.64 | $ 85.59 |
Weighted average remaining contractual life for options outstanding | 3 years 7 months 6 days | ||
Aggregate intrinsic value for options outstanding | $ 0 | ||
Weighted average remaining contractual life for expected to vest | 7 years | ||
Aggregate intrinsic value for expected to vest | $ 0 | ||
Weighted average remaining contractual life for exercisable | 3 years 4 months 24 days | ||
Aggregate intrinsic value for exercisable | $ 0 |
CAPITAL STOCK - Schedule of Ass
CAPITAL STOCK - Schedule of Assumptions Used (Details) - Stock Option | 12 Months Ended |
Dec. 31, 2018$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 33.74% |
Expected dividend yields | 2.16% |
Expected term (in years) | 6 years |
Risk-free rate | 2.42% |
Weighted-average grant-date fair value (in USD per share) | $ 13.15 |
CAPITAL STOCK - Schedule of Res
CAPITAL STOCK - Schedule of Restricted Stock Activities (Details) $ / shares in Units, $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | |
Weighted Average Grant-Date Fair Value | ||||
Total fair value of restricted stock awards vested | $ | $ 94 | $ 103 | $ 111 | |
Altus Midstream LP | ||||
Weighted Average Grant-Date Fair Value | ||||
Reverse stock split ratio | 0.05 | |||
Restricted Stock | ||||
Units | ||||
Non-vested, beginning balance (in shares) | 2,448,000 | 2,448,000 | 3,153,000 | 4,920,000 |
Granted, Shares (in shares) | 1,352,000 | 1,479,000 | 608,000 | |
Vested, Shares (in shares) | (1,933,000) | (1,899,000) | (2,023,000) | |
Forfeited, Shares (in shares) | (315,000) | (285,000) | (352,000) | |
Non-vested, ending balance (in shares) | 1,552,000 | 2,448,000 | 3,153,000 | |
Weighted Average Grant-Date Fair Value | ||||
Non-vested Beginning Balance, Weighted Average Grant Date Fair Value (in USD per share) | $ / shares | $ 46.65 | $ 46.65 | $ 55.54 | $ 56.67 |
Granted, Weighted Average Grant-Date Fair Value (in USD per share) | $ / shares | 24.60 | 36.81 | 45.59 | |
Vested, Weighted Average Grant-Date Fair Value (in USD per share) | $ / shares | 48.65 | 53.99 | 55.10 | |
Forfeited, Weighted Average Grant-Date Fair Value (in USD per share) | $ / shares | 30.09 | 45.06 | 56.69 | |
Non-vested Ending Balance, Weighted Average Grant Date Fair Value (in USD per share) | $ / shares | $ 28.43 | $ 46.65 | $ 55.54 | |
Total compensation cost related to non-vested awards not yet recognized | $ | $ 14 | |||
Unvested restricted stock units (in shares) | 1,551,807 | |||
Weighted-average remaining life of unvested restricted stock units | 8 months 12 days | |||
Phantom Units | ||||
Units | ||||
Non-vested, beginning balance (in shares) | 5,384,000 | 5,384,000 | 1,818,000 | 59,000 |
Reverse stock split (in shares) | (1,246,000) | 0 | 0 | |
Granted, Shares (in shares) | 3,462,000 | 4,831,000 | 1,973,000 | |
Vested, Shares (in shares) | (1,618,000) | (616,000) | (38,000) | |
Forfeited, Shares (in shares) | (1,559,000) | (649,000) | (176,000) | |
Non-vested, ending balance (in shares) | 4,423,000 | 5,384,000 | 1,818,000 | |
Weighted Average Grant-Date Fair Value | ||||
Total compensation cost related to non-vested awards not yet recognized | $ | $ 28 | |||
Phantom Units Issued Based on Per-Share Market Price of Apache Common Stock | ||||
Units | ||||
Granted, Shares (in shares) | 3,378,486 | 3,401,477 | ||
Phantom Units Issued Based on Per-Share Market Price of ALTM Common Stock | ||||
Units | ||||
Granted, Shares (in shares) | 83,239 | 1,429,135 |
CAPITAL STOCK - Performance Pro
CAPITAL STOCK - Performance Program Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2019 | Jan. 31, 2018 | Jan. 31, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares authorized and available for grant (in shares) | 14,100,000 | |||||||
Compensation expense | $ 40 | $ 110 | $ 157 | |||||
Stock-settled and cash-settled compensation capitalized | $ 7 | $ 28 | $ 37 | |||||
Phantom Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awards granted during period (in shares) | 3,462,000 | 4,831,000 | 1,973,000 | |||||
Phantom Units | Subsequent Event | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awards granted during period (in shares) | 4,360,656 | |||||||
Performance Program | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares allocation percentage | 50.00% | |||||||
Shares vesting period | 3 years | |||||||
Compensation expense | $ 8 | $ 24 | $ 38 | |||||
Stock-settled and cash-settled compensation capitalized | $ 1 | $ 3 | $ 7 | |||||
Performance Program | Vesting, Tranche One | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares vesting percentage | 50.00% | |||||||
Performance Program | Vesting, Tranche Two | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares vesting percentage | 50.00% | |||||||
2017 Performance Program | Conditional Restricted Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awards granted during period (in shares) | 620,885 | |||||||
Shares paid out as percentage of target | 54.00% | |||||||
Total awards, outstanding (in shares) | 111,126 | |||||||
2018 Performance Program | Phantom Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awards granted during period (in shares) | 931,049 | |||||||
Shares paid out as percentage of target | 23.00% | |||||||
Total awards, outstanding (in shares) | 704,483 | |||||||
2019 Performance Program | Phantom Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awards granted during period (in shares) | 1,679,832 | |||||||
Total awards, outstanding (in shares) | 1,301,893 | |||||||
2019 Performance Program | Phantom Units | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares awarded of target | 0.00% | |||||||
Shares authorized and available for grant (in shares) | 0 | |||||||
2019 Performance Program | Phantom Units | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares awarded of target | 200.00% | |||||||
Shares authorized and available for grant (in shares) | 2,603,786 | |||||||
2020 Performance Program | Phantom Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Awards granted during period (in shares) | 1,687,307 | |||||||
Total awards, outstanding (in shares) | 1,410,404 | |||||||
2020 Performance Program | Phantom Units | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares awarded of target | 0.00% | |||||||
Shares authorized and available for grant (in shares) | 0 | |||||||
2020 Performance Program | Phantom Units | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of shares awarded of target | 200.00% | |||||||
Shares authorized and available for grant (in shares) | 2,820,808 | |||||||
2021 Performance Program | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares allocation percentage | 50.00% | |||||||
2021 Performance Program | Subsequent Event | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares allocation percentage | 50.00% | |||||||
Shares vesting period | 3 years | |||||||
Shares vesting percentage | 50.00% | |||||||
2021 Performance Program | Phantom Units | Subsequent Event | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Initial number of share to be awarded | 1,911,517 | |||||||
2021 Performance Program | Phantom Units | Monte Carlo Simulation | Subsequent Event | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Weighted average grant date fair value per share (in USD per share) | $ 23.73 | |||||||
2021 Performance Program | Phantom Units | Fair Market Value At Grant Date | Subsequent Event | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares allocation percentage | 50.00% | |||||||
Weighted average grant date fair value per share (in USD per share) | $ 16.18 | |||||||
2021 Performance Program | Phantom Units | Minimum | Subsequent Event | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Ultimate number of share to be awarded | 0 | |||||||
2021 Performance Program | Phantom Units | Maximum | Subsequent Event | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Ultimate number of share to be awarded | 3,823,034 |
CAPITAL STOCK - Schedule of Per
CAPITAL STOCK - Schedule of Performance Program Activities (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Weighted Average Grant-Date Fair Value | |||
Expired, weighted average exercise price (in USD per share) | $ 92.14 | $ 88.82 | $ 104.21 |
Employee-related liabilities, current | $ 170 | $ 212 | |
Performance Program | Stock-settled conditional restricted stock unit | |||
Units | |||
Non-vested, beginning balance (in shares) | 781,000 | ||
Granted, Shares (in shares) | 18,000 | ||
Vested, Shares (in shares) | (445,000) | ||
Forfeited, Shares (in shares) | (16,000) | ||
Expired, Shares (in shares) | (227,000) | ||
Non-vested, ending balance (in shares) | 111,126 | 781,000 | |
Weighted Average Grant-Date Fair Value | |||
Non-vested Beginning Balance, Weighted Average Grant Date Fair Value (in USD per share) | $ 52.69 | ||
Granted, Weighted Average Grant-Date Fair Value (in USD per share) | 62.31 | ||
Vested, Weighted Average Grant-Date Fair Value (in USD per share) | 41.10 | ||
Forfeited, Weighted Average Grant-Date Fair Value (in USD per share) | 56.66 | ||
Expired, weighted average exercise price (in USD per share) | 70.70 | ||
Non-vested Ending Balance, Weighted Average Grant Date Fair Value (in USD per share) | $ 63.15 | $ 52.69 | |
Fair value of restricted stock, risk-free interest rate, period | 3 years | ||
Total compensation cost related to non-vested awards not yet recognized | $ 0 | ||
Weighted-average remaining life of unvested restricted stock units | 0 years | ||
Performance Program | Cash-settled conditional restricted stock unit | |||
Units | |||
Non-vested, beginning balance (in shares) | 2,320,000 | ||
Granted, Shares (in shares) | 1,687,000 | ||
Vested, Shares (in shares) | (2,000) | ||
Forfeited, Shares (in shares) | (542,000) | ||
Expired, Shares (in shares) | (46,000) | ||
Non-vested, ending balance (in shares) | 3,417,000 | 2,320,000 | |
Weighted Average Grant-Date Fair Value | |||
Employee-related liabilities, current | $ 14 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Equity [Abstract] | |||
Share of equity method interests other comprehensive loss | $ (1) | $ (1) | $ 0 |
Pension and postretirement benefit plan (Note 12) | 15 | 17 | 4 |
Accumulated other comprehensive income | $ 14 | $ 16 | $ 4 |
MAJOR CUSTOMERS (Details)
MAJOR CUSTOMERS (Details) - Customer Concentration Risk - Oil and Gas Production Revenues | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Egyptian General Petroleum Corporation | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 17.00% | 10.00% | |
Vitol | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 14.00% | ||
BP plc | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 10.00% | 17.00% | |
China Petroleum & Chemical Corporation (Sinopec) | |||
Revenue, Major Customer [Line Items] | |||
Concentration risk percentage | 11.00% | 15.00% |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 3 |
BUSINESS SEGMENT INFORMATION _2
BUSINESS SEGMENT INFORMATION - Financial Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Expenses: | ||||
Lease operating expenses | $ 1,127 | $ 1,447 | $ 1,439 | |
Taxes other than income | 123 | 207 | 215 | |
Exploration | 274 | 805 | 503 | |
Depreciation, depletion, and amortization | 1,772 | 2,680 | 2,405 | |
Asset retirement obligation accretion | 109 | 107 | 108 | |
Impairments | $ 1,400 | 4,501 | 2,949 | 511 |
Total operating expenses | 8,537 | 8,643 | 5,869 | |
Operating Income (Loss) | (4,102) | (2,152) | 1,836 | |
Other Income (Expense): | ||||
Gain on divestitures, net | 32 | 43 | 23 | |
Derivative instrument losses, net | (223) | (35) | (17) | |
Other | 64 | 54 | 53 | |
General and administrative | (290) | (406) | (431) | |
Transaction, reorganization, and separation | (54) | (50) | (28) | |
Financing costs, net | (267) | (462) | (478) | |
NET INCOME (LOSS) BEFORE INCOME TAXES | (4,840) | (3,008) | 958 | |
Total assets | 18,107 | 12,746 | 18,107 | 21,582 |
Net Property and Equipment | 14,158 | 8,819 | 14,158 | 18,421 |
Additions to Net Property and Equipment | 2,734 | 1,162 | 2,734 | 3,914 |
Operating Segments | Egypt | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 0 | 0 | 0 | |
Operating Expenses: | ||||
Lease operating expenses | 424 | 484 | 428 | |
Taxes other than income | 0 | 0 | 0 | |
Exploration | 63 | 100 | 88 | |
Depreciation, depletion, and amortization | 601 | 708 | 745 | |
Asset retirement obligation accretion | 0 | 0 | 0 | |
Impairments | 529 | 0 | 63 | |
Total operating expenses | 1,655 | 1,332 | 1,371 | |
Operating Income (Loss) | (265) | 944 | 1,377 | |
Other Income (Expense): | ||||
Total assets | 3,700 | 3,003 | 3,700 | 4,260 |
Net Property and Equipment | 2,573 | 1,955 | 2,573 | 2,856 |
Additions to Net Property and Equipment | 454 | 454 | 454 | 594 |
Operating Segments | North Sea | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 0 | 0 | 0 | |
Operating Expenses: | ||||
Lease operating expenses | 305 | 320 | 341 | |
Taxes other than income | 0 | 0 | 0 | |
Exploration | 28 | 2 | 192 | |
Depreciation, depletion, and amortization | 380 | 366 | 375 | |
Asset retirement obligation accretion | 73 | 76 | 75 | |
Impairments | 7 | 0 | 10 | |
Total operating expenses | 843 | 809 | 1,035 | |
Operating Income (Loss) | 40 | 467 | 286 | |
Other Income (Expense): | ||||
Total assets | 2,473 | 2,220 | 2,473 | 2,456 |
Net Property and Equipment | 1,956 | 1,773 | 1,956 | 2,148 |
Additions to Net Property and Equipment | 183 | 215 | 183 | 223 |
Operating Segments | U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 0 | 0 | 0 | |
Operating Expenses: | ||||
Lease operating expenses | 400 | 645 | 670 | |
Taxes other than income | 108 | 194 | 207 | |
Exploration | 168 | 688 | 219 | |
Depreciation, depletion, and amortization | 779 | 1,566 | 1,266 | |
Asset retirement obligation accretion | 32 | 29 | 32 | |
Impairments | 3,963 | 1,648 | 438 | |
Total operating expenses | 6,095 | 5,211 | 3,454 | |
Operating Income (Loss) | (3,937) | (2,272) | 182 | |
Other Income (Expense): | ||||
Total assets | 10,388 | 5,540 | 10,388 | 12,962 |
Net Property and Equipment | 9,385 | 4,760 | 9,385 | 12,145 |
Additions to Net Property and Equipment | 1,696 | 345 | 1,696 | 2,544 |
Operating Segments | Altus Midstream | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 145 | 136 | 77 | |
Operating Expenses: | ||||
Lease operating expenses | 0 | 0 | 0 | |
Taxes other than income | 15 | 13 | 8 | |
Exploration | 0 | 0 | 0 | |
Depreciation, depletion, and amortization | 12 | 40 | 19 | |
Asset retirement obligation accretion | 4 | 2 | 1 | |
Impairments | 2 | 1,301 | 0 | |
Total operating expenses | 74 | 1,412 | 82 | |
Operating Income (Loss) | 75 | (1,276) | (5) | |
Other Income (Expense): | ||||
Total assets | 1,479 | 1,786 | 1,479 | 1,857 |
Net Property and Equipment | 206 | 196 | 206 | 1,227 |
Additions to Net Property and Equipment | 308 | 12 | 308 | 545 |
Intersegment Eliminations & Other | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | (145) | (136) | (77) | |
Operating Expenses: | ||||
Lease operating expenses | (2) | (2) | 0 | |
Taxes other than income | 0 | 0 | 0 | |
Exploration | 15 | 15 | 4 | |
Depreciation, depletion, and amortization | 0 | 0 | 0 | |
Asset retirement obligation accretion | 0 | 0 | 0 | |
Impairments | 0 | 0 | 0 | |
Total operating expenses | (130) | (121) | (73) | |
Operating Income (Loss) | (15) | (15) | (4) | |
Other Income (Expense): | ||||
Total assets | 67 | 197 | 67 | 47 |
Net Property and Equipment | 38 | 135 | 38 | 45 |
Additions to Net Property and Equipment | $ 93 | 136 | 93 | 8 |
Oil and gas, excluding purchased | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 4,037 | 6,315 | 7,348 | |
Operating Expenses: | ||||
Gathering, processing, and transmission | 274 | 306 | 348 | |
Oil and gas, excluding purchased | Operating Segments | Egypt | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 1,390 | 2,276 | 2,748 | |
Operating Expenses: | ||||
Gathering, processing, and transmission | 38 | 40 | 47 | |
Oil and gas, excluding purchased | Operating Segments | North Sea | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 883 | 1,276 | 1,321 | |
Operating Expenses: | ||||
Gathering, processing, and transmission | 50 | 45 | 42 | |
Oil and gas, excluding purchased | Operating Segments | U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 1,764 | 2,763 | 3,279 | |
Operating Expenses: | ||||
Gathering, processing, and transmission | 291 | 299 | 282 | |
Oil and gas, excluding purchased | Operating Segments | Altus Midstream | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 0 | 0 | 0 | |
Operating Expenses: | ||||
Gathering, processing, and transmission | 38 | 56 | 54 | |
Oil and gas, excluding purchased | Intersegment Eliminations & Other | ||||
Operating Expenses: | ||||
Gathering, processing, and transmission | (143) | (134) | (77) | |
Oil and gas, purchased | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 398 | 176 | 357 | |
Operating Expenses: | ||||
Gathering, processing, and transmission | 357 | 142 | 340 | |
Oil and gas, purchased | Operating Segments | Egypt | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 0 | 0 | 0 | |
Operating Expenses: | ||||
Gathering, processing, and transmission | 0 | 0 | 0 | |
Oil and gas, purchased | Operating Segments | North Sea | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 0 | 0 | 0 | |
Operating Expenses: | ||||
Gathering, processing, and transmission | 0 | 0 | 0 | |
Oil and gas, purchased | Operating Segments | U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 394 | 176 | 357 | |
Operating Expenses: | ||||
Gathering, processing, and transmission | 354 | 142 | 340 | |
Oil and gas, purchased | Operating Segments | Altus Midstream | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 4 | 0 | 0 | |
Operating Expenses: | ||||
Gathering, processing, and transmission | 3 | 0 | 0 | |
Oil and gas, purchased | Intersegment Eliminations & Other | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 0 | 0 | 0 | |
Operating Expenses: | ||||
Gathering, processing, and transmission | 0 | 0 | 0 | |
Oil and gas | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 4,435 | 6,491 | 7,705 | |
Oil and gas | Operating Segments | Egypt | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 1,390 | 2,276 | 2,748 | |
Oil and gas | Operating Segments | North Sea | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 883 | 1,276 | 1,321 | |
Oil and gas | Operating Segments | U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 2,158 | 2,939 | 3,636 | |
Oil and gas | Operating Segments | Altus Midstream | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 149 | 136 | 77 | |
Oil and gas | Intersegment Eliminations & Other | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | (145) | (136) | (77) | |
Oil | ||||
Other Income (Expense): | ||||
Revenue from non-customers | 95 | 410 | 592 | |
Oil | Oil and gas, excluding purchased | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 3,106 | 5,230 | 5,846 | |
Oil | Oil and gas, excluding purchased | Operating Segments | Egypt | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 1,102 | 1,969 | 2,396 | |
Oil | Oil and gas, excluding purchased | Operating Segments | North Sea | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 795 | 1,163 | 1,179 | |
Oil | Oil and gas, excluding purchased | Operating Segments | U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 1,209 | 2,098 | 2,271 | |
Oil | Oil and gas, excluding purchased | Operating Segments | Altus Midstream | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 0 | 0 | 0 | |
Oil | Oil and gas, excluding purchased | Intersegment Eliminations & Other | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 0 | 0 | 0 | |
Natural Gas | ||||
Other Income (Expense): | ||||
Revenue from non-customers | 14 | 40 | 58 | |
Natural Gas | Oil and gas, excluding purchased | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 598 | 678 | 919 | |
Natural Gas | Oil and gas, excluding purchased | Operating Segments | Egypt | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 280 | 295 | 339 | |
Natural Gas | Oil and gas, excluding purchased | Operating Segments | North Sea | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 67 | 90 | 122 | |
Natural Gas | Oil and gas, excluding purchased | Operating Segments | U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 251 | 293 | 458 | |
Natural Gas | Oil and gas, excluding purchased | Operating Segments | Altus Midstream | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 0 | 0 | 0 | |
Natural Gas | Oil and gas, excluding purchased | Intersegment Eliminations & Other | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 0 | 0 | 0 | |
Natural Gas Liquids | ||||
Other Income (Expense): | ||||
Revenue from non-customers | 0 | 1 | 2 | |
Natural Gas Liquids | Oil and gas, excluding purchased | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 333 | 407 | 583 | |
Natural Gas Liquids | Oil and gas, excluding purchased | Operating Segments | Egypt | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 8 | 12 | 13 | |
Natural Gas Liquids | Oil and gas, excluding purchased | Operating Segments | North Sea | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 21 | 23 | 20 | |
Natural Gas Liquids | Oil and gas, excluding purchased | Operating Segments | U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 304 | 372 | 550 | |
Natural Gas Liquids | Oil and gas, excluding purchased | Operating Segments | Altus Midstream | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | 0 | 0 | 0 | |
Natural Gas Liquids | Oil and gas, excluding purchased | Intersegment Eliminations & Other | ||||
Segment Reporting Information [Line Items] | ||||
Oil and gas production revenues | $ 0 | $ 0 | $ 0 |
SUPPLEMENTAL OIL AND GAS DISC_3
SUPPLEMENTAL OIL AND GAS DISCLOSURES (Unaudited) - Revenue and Direct Cost Information Relating to Company's Oil and Gas Exploration and Production Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | |||
Asset retirement obligation accretion | $ 109 | $ 107 | $ 108 |
Lease operating expenses | 1,127 | 1,447 | 1,439 |
Oil and Gas, Exploration and Production | |||
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | |||
Oil and gas production revenues | 4,037 | 6,315 | 7,348 |
Depreciation, depletion, and amortization | 1,643 | 2,512 | 2,265 |
Asset retirement obligation accretion | 105 | 105 | 107 |
Lease operating expenses | 1,129 | 1,449 | 1,439 |
Gathering, processing, and transmission | 379 | 384 | 371 |
Exploration expenses | 274 | 805 | 503 |
Impairments related to oil and gas properties | 4,319 | 1,633 | 338 |
Production taxes | 106 | 191 | 203 |
Income tax | (823) | 175 | 848 |
Operating costs | 7,132 | 7,254 | 6,074 |
Results of operations | (3,095) | (939) | 1,274 |
Oil and Gas, Exploration and Production | United States | |||
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | |||
Oil and gas production revenues | 1,764 | 2,763 | 3,279 |
Depreciation, depletion, and amortization | 726 | 1,508 | 1,206 |
Asset retirement obligation accretion | 32 | 29 | 32 |
Lease operating expenses | 400 | 645 | 670 |
Gathering, processing, and transmission | 291 | 299 | 282 |
Exploration expenses | 168 | 688 | 219 |
Impairments related to oil and gas properties | 3,938 | 1,633 | 265 |
Production taxes | 106 | 191 | 203 |
Income tax | (818) | (468) | 87 |
Operating costs | 4,843 | 4,525 | 2,964 |
Results of operations | (3,079) | (1,762) | 315 |
Oil and Gas, Exploration and Production | Egypt | |||
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | |||
Oil and gas production revenues | 1,390 | 2,276 | 2,748 |
Depreciation, depletion, and amortization | 540 | 641 | 688 |
Asset retirement obligation accretion | 0 | 0 | 0 |
Lease operating expenses | 424 | 484 | 428 |
Gathering, processing, and transmission | 38 | 40 | 47 |
Exploration expenses | 63 | 100 | 88 |
Impairments related to oil and gas properties | 374 | 0 | 63 |
Production taxes | 0 | 0 | 0 |
Income tax | (22) | 455 | 645 |
Operating costs | 1,417 | 1,720 | 1,959 |
Results of operations | (27) | 556 | 789 |
Oil and Gas, Exploration and Production | North Sea | |||
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | |||
Oil and gas production revenues | 883 | 1,276 | 1,321 |
Depreciation, depletion, and amortization | 377 | 363 | 371 |
Asset retirement obligation accretion | 73 | 76 | 75 |
Lease operating expenses | 305 | 320 | 341 |
Gathering, processing, and transmission | 50 | 45 | 42 |
Exploration expenses | 28 | 2 | 192 |
Impairments related to oil and gas properties | 7 | 0 | 10 |
Production taxes | 0 | 0 | 0 |
Income tax | 17 | 188 | 116 |
Operating costs | 857 | 994 | 1,147 |
Results of operations | 26 | 282 | 174 |
Oil and Gas, Exploration and Production | Other International | |||
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | |||
Oil and gas production revenues | 0 | 0 | 0 |
Depreciation, depletion, and amortization | 0 | 0 | 0 |
Asset retirement obligation accretion | 0 | 0 | 0 |
Lease operating expenses | 0 | 0 | 0 |
Gathering, processing, and transmission | 0 | 0 | 0 |
Exploration expenses | 15 | 15 | 4 |
Impairments related to oil and gas properties | 0 | 0 | 0 |
Production taxes | 0 | 0 | 0 |
Income tax | 0 | 0 | 0 |
Operating costs | 15 | 15 | 4 |
Results of operations | $ (15) | $ (15) | $ (4) |
SUPPLEMENTAL OIL AND GAS DISC_4
SUPPLEMENTAL OIL AND GAS DISCLOSURES (Unaudited) - Costs Incurred in Oil and Gas Property Acquisitions, Exploration and Development Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | |||
Proved | $ 7 | $ 8 | $ 6 |
Unproved | 4 | 57 | 127 |
Exploration | 328 | 468 | 940 |
Development | 872 | 1,996 | 2,381 |
Costs incurred | 1,211 | 2,529 | 3,454 |
Capitalized interest | 3 | 32 | 36 |
Asset retirement costs | 38 | (97) | 31 |
United States | |||
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | |||
Proved | 0 | 3 | 0 |
Unproved | 4 | 47 | 111 |
Exploration | 8 | 162 | 640 |
Development | 332 | 1,500 | 1,791 |
Costs incurred | 344 | 1,712 | 2,542 |
Capitalized interest | 0 | 23 | 23 |
Asset retirement costs | 9 | 14 | 93 |
Egypt | |||
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | |||
Proved | 7 | 5 | 6 |
Unproved | 0 | 10 | 16 |
Exploration | 102 | 139 | 175 |
Development | 378 | 374 | 457 |
Costs incurred | 487 | 528 | 654 |
Capitalized interest | 0 | 0 | 0 |
Asset retirement costs | 0 | 0 | 0 |
North Sea | |||
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | |||
Proved | 0 | 0 | 0 |
Unproved | 0 | 0 | 0 |
Exploration | 68 | 62 | 113 |
Development | 162 | 119 | 133 |
Costs incurred | 230 | 181 | 246 |
Capitalized interest | 0 | 5 | 11 |
Asset retirement costs | 29 | (111) | (62) |
Other International | |||
Results of Operations for Oil and Gas Producing Activities, by Geographic Area [Line Items] | |||
Proved | 0 | 0 | 0 |
Unproved | 0 | 0 | 0 |
Exploration | 150 | 105 | 12 |
Development | 0 | 3 | 0 |
Costs incurred | 150 | 108 | 12 |
Capitalized interest | 3 | 4 | 2 |
Asset retirement costs | $ 0 | $ 0 | $ 0 |
SUPPLEMENTAL OIL AND GAS DISC_5
SUPPLEMENTAL OIL AND GAS DISCLOSURES (Unaudited) - Capitalized Costs (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Reserve Quantities [Line Items] | ||
Proved properties | $ 41,217 | $ 40,540 |
Unproved properties | 602 | 666 |
Capitalized costs, gross | 41,819 | 41,206 |
Accumulated DD&A | (33,623) | (27,860) |
Capitalized costs, net | 8,196 | 13,346 |
United States | ||
Reserve Quantities [Line Items] | ||
Proved properties | 20,343 | 20,291 |
Unproved properties | 348 | 509 |
Capitalized costs, gross | 20,691 | 20,800 |
Accumulated DD&A | (16,252) | (11,783) |
Capitalized costs, net | 4,439 | 9,017 |
Egypt | ||
Reserve Quantities [Line Items] | ||
Proved properties | 12,069 | 11,614 |
Unproved properties | 77 | 109 |
Capitalized costs, gross | 12,146 | 11,723 |
Accumulated DD&A | (10,290) | (9,377) |
Capitalized costs, net | 1,856 | 2,346 |
North Sea | ||
Reserve Quantities [Line Items] | ||
Proved properties | 8,805 | 8,635 |
Unproved properties | 42 | 10 |
Capitalized costs, gross | 8,847 | 8,645 |
Accumulated DD&A | (7,081) | (6,700) |
Capitalized costs, net | 1,766 | 1,945 |
Other International | ||
Reserve Quantities [Line Items] | ||
Proved properties | 0 | 0 |
Unproved properties | 135 | 38 |
Capitalized costs, gross | 135 | 38 |
Accumulated DD&A | 0 | 0 |
Capitalized costs, net | $ 135 | $ 38 |
SUPPLEMENTAL OIL AND GAS DISC_6
SUPPLEMENTAL OIL AND GAS DISCLOSURES (Unaudited) - Oil and Gas Reserve Information (Details) MBoe in Thousands | 12 Months Ended | |||
Dec. 31, 2020MBoeMBblsMMcf | Dec. 31, 2019MBoeMBblsMMcf | Dec. 31, 2018MBoeMMcfMBbls | Dec. 31, 2017MBoeMMcfMBbls | |
Reserve Quantities [Line Items] | ||||
Proved developed reserves | 797,843 | 892,816 | 1,081,316 | 1,023,663 |
Proved undeveloped reserves | 75,840 | 117,972 | 153,081 | 151,323 |
Proved Developed and Undeveloped Reserves [Roll Forward] | ||||
Beginning balance | 1,010,788 | 1,234,397 | 1,174,986 | |
Extensions, discoveries and other additions | 78,303 | 176,366 | 302,509 | |
Purchases of minerals in-place | 331 | |||
Revisions of previous estimates | (44,910) | (119,473) | (73,319) | |
Production | (160,945) | (172,948) | (170,051) | |
Sales of minerals in-place | (9,553) | (107,554) | (59) | |
Ending balance | 873,683 | 1,010,788 | 1,234,397 | |
United States | ||||
Reserve Quantities [Line Items] | ||||
Proved developed reserves | 532,994 | 594,595 | 769,125 | 699,786 |
Proved undeveloped reserves | 53,408 | 89,458 | 123,493 | 111,001 |
Proved Developed and Undeveloped Reserves [Roll Forward] | ||||
Beginning balance | 684,053 | 892,618 | 810,787 | |
Extensions, discoveries and other additions | 39,454 | 135,174 | 240,322 | |
Purchases of minerals in-place | 331 | |||
Revisions of previous estimates | (33,854) | (133,974) | (63,451) | |
Production | (93,698) | (102,211) | (95,312) | |
Sales of minerals in-place | (9,553) | (107,554) | (59) | |
Ending balance | 586,402 | 684,053 | 892,618 | |
Egypt | ||||
Reserve Quantities [Line Items] | ||||
Proved developed reserves | 164,870 | 176,470 | 189,871 | 215,364 |
Proved undeveloped reserves | 13,449 | 15,038 | 15,045 | 24,112 |
Proved Developed and Undeveloped Reserves [Roll Forward] | ||||
Beginning balance | 191,508 | 204,916 | 239,476 | |
Extensions, discoveries and other additions | 31,905 | 26,859 | 35,849 | |
Purchases of minerals in-place | 0 | |||
Revisions of previous estimates | (502) | 8,355 | (16,007) | |
Production | (44,592) | (48,622) | (54,402) | |
Sales of minerals in-place | 0 | 0 | 0 | |
Ending balance | 178,319 | 191,508 | 204,916 | |
North Sea | ||||
Reserve Quantities [Line Items] | ||||
Proved developed reserves | 99,979 | 121,751 | 122,320 | 108,513 |
Proved undeveloped reserves | 8,983 | 13,476 | 14,543 | 16,210 |
Proved Developed and Undeveloped Reserves [Roll Forward] | ||||
Beginning balance | 135,227 | 136,863 | 124,723 | |
Extensions, discoveries and other additions | 6,944 | 14,333 | 26,338 | |
Purchases of minerals in-place | 0 | |||
Revisions of previous estimates | (10,554) | 6,146 | 6,139 | |
Production | (22,655) | (22,115) | (20,337) | |
Sales of minerals in-place | 0 | 0 | 0 | |
Ending balance | 108,962 | 135,227 | 136,863 | |
Noncontrolling Interests | Egypt | ||||
Proved Developed and Undeveloped Reserves [Roll Forward] | ||||
Proved developed reserves (Energy) | MBoe | 59 | 64 | 68 | 80 |
Crude Oil and Condensate | ||||
Reserve Quantities [Line Items] | ||||
Proved developed reserves | 389,483 | 483,430 | 514,989 | 521,445 |
Proved undeveloped reserves | 44,017 | 67,596 | 65,944 | 62,115 |
Proved Developed and Undeveloped Reserves [Roll Forward] | ||||
Beginning balance | 551,026 | 580,933 | 583,560 | |
Extensions, discoveries and other additions | 40,988 | 82,353 | 100,131 | |
Purchases of minerals in-place | 140 | |||
Revisions of previous estimates | (71,462) | (6,562) | (13,277) | |
Production | (78,331) | (87,386) | (89,574) | |
Sales of minerals in-place | (8,721) | (18,312) | (47) | |
Ending balance | 433,500 | 551,026 | 580,933 | |
Crude Oil and Condensate | United States | ||||
Reserve Quantities [Line Items] | ||||
Proved developed reserves | 206,936 | 278,145 | 300,484 | 304,279 |
Proved undeveloped reserves | 25,516 | 46,716 | 45,182 | 31,904 |
Proved Developed and Undeveloped Reserves [Roll Forward] | ||||
Beginning balance | 324,861 | 345,666 | 336,183 | |
Extensions, discoveries and other additions | 17,858 | 52,297 | 61,976 | |
Purchases of minerals in-place | 140 | |||
Revisions of previous estimates | (69,247) | (16,446) | (14,334) | |
Production | (32,299) | (38,344) | (38,252) | |
Sales of minerals in-place | (8,721) | (18,312) | (47) | |
Ending balance | 232,452 | 324,861 | 345,666 | |
Crude Oil and Condensate | Egypt | ||||
Reserve Quantities [Line Items] | ||||
Proved developed reserves | 95,981 | 103,573 | 110,014 | 124,568 |
Proved undeveloped reserves | 11,228 | 10,831 | 9,484 | 16,198 |
Proved Developed and Undeveloped Reserves [Roll Forward] | ||||
Beginning balance | 114,404 | 119,498 | 140,766 | |
Extensions, discoveries and other additions | 17,855 | 21,039 | 22,473 | |
Purchases of minerals in-place | 0 | |||
Revisions of previous estimates | 2,541 | 4,752 | (9,556) | |
Production | (27,591) | (30,885) | (34,185) | |
Sales of minerals in-place | 0 | 0 | 0 | |
Ending balance | 107,209 | 114,404 | 119,498 | |
Crude Oil and Condensate | North Sea | ||||
Reserve Quantities [Line Items] | ||||
Proved developed reserves | 86,566 | 101,712 | 104,491 | 92,598 |
Proved undeveloped reserves | 7,273 | 10,049 | 11,278 | 14,013 |
Proved Developed and Undeveloped Reserves [Roll Forward] | ||||
Beginning balance | 111,761 | 115,769 | 106,611 | |
Extensions, discoveries and other additions | 5,275 | 9,017 | 15,682 | |
Purchases of minerals in-place | 0 | |||
Revisions of previous estimates | (4,756) | 5,132 | 10,613 | |
Production | (18,441) | (18,157) | (17,137) | |
Sales of minerals in-place | 0 | 0 | 0 | |
Ending balance | 93,839 | 111,761 | 115,769 | |
Crude Oil and Condensate | Noncontrolling Interests | Egypt | ||||
Reserve Quantities [Line Items] | ||||
Proved developed reserves | 36,000 | 38,000 | 40,000 | 47,000 |
Natural Gas Liquids | ||||
Reserve Quantities [Line Items] | ||||
Proved developed reserves | 153,368 | 161,778 | 200,014 | 173,715 |
Proved undeveloped reserves | 15,587 | 24,319 | 34,487 | 29,951 |
Proved Developed and Undeveloped Reserves [Roll Forward] | ||||
Beginning balance | 186,097 | 234,501 | 203,666 | |
Extensions, discoveries and other additions | 11,844 | 42,067 | 62,578 | |
Purchases of minerals in-place | 40 | |||
Revisions of previous estimates | (412) | (31,716) | (10,038) | |
Production | (28,118) | (25,933) | (21,740) | |
Sales of minerals in-place | (456) | (32,822) | (5) | |
Ending balance | 168,955 | 186,097 | 234,501 | |
Natural Gas Liquids | United States | ||||
Reserve Quantities [Line Items] | ||||
Proved developed reserves | 150,599 | 158,794 | 197,574 | 171,005 |
Proved undeveloped reserves | 15,141 | 23,569 | 33,796 | 29,559 |
Proved Developed and Undeveloped Reserves [Roll Forward] | ||||
Beginning balance | 182,363 | 231,370 | 200,564 | |
Extensions, discoveries and other additions | 11,435 | 41,343 | 60,990 | |
Purchases of minerals in-place | 40 | |||
Revisions of previous estimates | (469) | (32,569) | (9,250) | |
Production | (27,133) | (24,959) | (20,969) | |
Sales of minerals in-place | (456) | (32,822) | (5) | |
Ending balance | 165,740 | 182,363 | 231,370 | |
Natural Gas Liquids | Egypt | ||||
Reserve Quantities [Line Items] | ||||
Proved developed reserves | 716 | 667 | 502 | 685 |
Proved undeveloped reserves | 126 | 90 | 60 | 39 |
Proved Developed and Undeveloped Reserves [Roll Forward] | ||||
Beginning balance | 757 | 562 | 724 | |
Extensions, discoveries and other additions | 97 | 27 | 144 | |
Purchases of minerals in-place | 0 | |||
Revisions of previous estimates | 264 | 508 | 31 | |
Production | (276) | (340) | (337) | |
Sales of minerals in-place | 0 | 0 | 0 | |
Ending balance | 842 | 757 | 562 | |
Natural Gas Liquids | North Sea | ||||
Reserve Quantities [Line Items] | ||||
Proved developed reserves | 2,053 | 2,317 | 1,938 | 2,025 |
Proved undeveloped reserves | 320 | 660 | 631 | 353 |
Proved Developed and Undeveloped Reserves [Roll Forward] | ||||
Beginning balance | 2,977 | 2,569 | 2,378 | |
Extensions, discoveries and other additions | 312 | 697 | 1,444 | |
Purchases of minerals in-place | 0 | |||
Revisions of previous estimates | (207) | 345 | (819) | |
Production | (709) | (634) | (434) | |
Sales of minerals in-place | 0 | 0 | 0 | |
Ending balance | 2,373 | 2,977 | 2,569 | |
Natural Gas Liquids | Noncontrolling Interests | Egypt | ||||
Reserve Quantities [Line Items] | ||||
Proved developed reserves | 281 | 252 | 187 | 241 |
Natural Gas | ||||
Reserve Quantities [Line Items] | ||||
Proved developed reserves | MMcf | 1,529,950 | 1,485,649 | 2,197,882 | 1,971,018 |
Proved undeveloped reserves | MMcf | 97,417 | 156,348 | 315,900 | 355,544 |
Proved Developed and Undeveloped Reserves [Roll Forward] | ||||
Beginning balance | MMcf | 1,641,997 | 2,513,782 | 2,326,562 | |
Extensions, discoveries and other additions | MMcf | 152,823 | 311,674 | 838,803 | |
Purchases of minerals in-place | MMcf | 906 | |||
Revisions of previous estimates | MMcf | 161,776 | (487,168) | (300,029) | |
Production | MMcf | (326,974) | (357,771) | (352,419) | |
Sales of minerals in-place | MMcf | (2,255) | (338,520) | (41) | |
Ending balance | MMcf | 1,627,367 | 1,641,997 | 2,513,782 | |
Natural Gas | United States | ||||
Reserve Quantities [Line Items] | ||||
Proved developed reserves | MMcf | 1,052,756 | 945,938 | 1,626,403 | 1,347,009 |
Proved undeveloped reserves | MMcf | 76,504 | 115,040 | 267,090 | 297,226 |
Proved Developed and Undeveloped Reserves [Roll Forward] | ||||
Beginning balance | MMcf | 1,060,978 | 1,893,493 | 1,644,235 | |
Extensions, discoveries and other additions | MMcf | 60,965 | 249,205 | 704,135 | |
Purchases of minerals in-place | MMcf | 906 | |||
Revisions of previous estimates | MMcf | 215,166 | (509,753) | (239,204) | |
Production | MMcf | (205,594) | (233,447) | (216,538) | |
Sales of minerals in-place | MMcf | (2,255) | (338,520) | (41) | |
Ending balance | MMcf | 1,129,260 | 1,060,978 | 1,893,493 | |
Natural Gas | Egypt | ||||
Reserve Quantities [Line Items] | ||||
Proved developed reserves | MMcf | 409,035 | 433,382 | 476,132 | 540,667 |
Proved undeveloped reserves | MMcf | 12,572 | 24,704 | 33,006 | 47,255 |
Proved Developed and Undeveloped Reserves [Roll Forward] | ||||
Beginning balance | MMcf | 458,086 | 509,138 | 587,922 | |
Extensions, discoveries and other additions | MMcf | 83,718 | 34,758 | 79,394 | |
Purchases of minerals in-place | 0 | |||
Revisions of previous estimates | (19,849) | 18,570 | (38,892) | |
Production | (100,348) | (104,380) | (119,286) | |
Sales of minerals in-place | 0 | 0 | 0 | |
Ending balance | MMcf | 421,607 | 458,086 | 509,138 | |
Natural Gas | North Sea | ||||
Reserve Quantities [Line Items] | ||||
Proved developed reserves | MMcf | 68,159 | 106,329 | 95,347 | 83,342 |
Proved undeveloped reserves | MMcf | 8,341 | 16,604 | 15,804 | 11,063 |
Proved Developed and Undeveloped Reserves [Roll Forward] | ||||
Beginning balance | MMcf | 122,933 | 111,151 | 94,405 | |
Extensions, discoveries and other additions | MMcf | 8,140 | 27,711 | 55,274 | |
Purchases of minerals in-place | 0 | |||
Revisions of previous estimates | (33,541) | 4,015 | (21,933) | |
Production | (21,032) | (19,944) | (16,595) | |
Sales of minerals in-place | 0 | 0 | 0 | |
Ending balance | MMcf | 76,500 | 122,933 | 111,151 | |
Natural Gas | Noncontrolling Interests | Egypt | ||||
Reserve Quantities [Line Items] | ||||
Proved developed reserves | MMcf | 141,000 | 153,000 | 170,000 | 196,000 |
SUPPLEMENTAL OIL AND GAS DISC_7
SUPPLEMENTAL OIL AND GAS DISCLOSURES (Unaudited) - Additional Information (Details) - MBoe MBoe in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reserve Quantities [Line Items] | |||
Addition from extensions, discoveries, and other additions | 78 | 176 | 303 |
Revision of previous estimate | (45) | (119) | (73) |
Percentage of estimated proved developed reserves classified as proved not producing | 10.00% | ||
North America | |||
Reserve Quantities [Line Items] | |||
Addition from extensions, discoveries, and other additions | 39 | 135 | 240 |
Southern Midland Basin | |||
Reserve Quantities [Line Items] | |||
Addition from extensions, discoveries, and other additions | 26 | ||
International Regions | |||
Reserve Quantities [Line Items] | |||
Addition from extensions, discoveries, and other additions | 39 | 41 | 62 |
Egypt | |||
Reserve Quantities [Line Items] | |||
Addition from extensions, discoveries, and other additions | 32 | 27 | 36 |
North Sea | |||
Reserve Quantities [Line Items] | |||
Addition from extensions, discoveries, and other additions | 7 | 14 | 26 |
Eastern Shelf and Magnet Withers/Pickett Ridge | |||
Reserve Quantities [Line Items] | |||
Sale of mineral in place | 10 | ||
Anadarko Basin | |||
Reserve Quantities [Line Items] | |||
Sale of mineral in place | 107 | ||
Premian Basin | |||
Reserve Quantities [Line Items] | |||
Addition from extensions, discoveries, and other additions | 129 | 217 | |
MidContinent Region | |||
Reserve Quantities [Line Items] | |||
Addition from extensions, discoveries, and other additions | 6 | 20 | |
Changes in Product Prices | |||
Reserve Quantities [Line Items] | |||
Revision of previous estimate | (70) | (139) | (24) |
Changes in Engineering and Performance | |||
Reserve Quantities [Line Items] | |||
Revision of previous estimate | 27 | 20 | (44) |
Interest Revisions | |||
Reserve Quantities [Line Items] | |||
Revision of previous estimate | (2) | (5) |
SUPPLEMENTAL OIL AND GAS DISC_8
SUPPLEMENTAL OIL AND GAS DISCLOSURES (Unaudited) - Future Net Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||
Cash inflows | $ 22,219 | $ 37,454 | $ 48,978 |
Production costs | (10,336) | (15,219) | (18,086) |
Development costs | (4,636) | (5,098) | (5,656) |
Income tax expense | (780) | (2,741) | (3,826) |
Net cash flows | 6,467 | 14,396 | 21,410 |
10 percent discount rate | (1,155) | (4,514) | (7,689) |
Discounted future net cash flows | $ 5,312 | 9,882 | 13,721 |
Estimated future net cash flow before income tax expenses | 10.00% | ||
Total estimated future net cash flows before income tax expense discounted at 10 percent per annum | $ 7,100 | 12,400 | 16,900 |
United States | |||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||
Cash inflows | 12,537 | 21,694 | 29,906 |
Production costs | (6,244) | (10,642) | (13,699) |
Development costs | (1,555) | (1,740) | (2,150) |
Income tax expense | 0 | (27) | (19) |
Net cash flows | 4,738 | 9,285 | 14,038 |
10 percent discount rate | (1,829) | (4,003) | (6,516) |
Discounted future net cash flows | 2,909 | 5,282 | 7,522 |
Egypt | |||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||
Cash inflows | 5,560 | 8,306 | 9,866 |
Production costs | (1,704) | (1,847) | (1,799) |
Development costs | (633) | (707) | (792) |
Income tax expense | (1,096) | (1,930) | (2,455) |
Net cash flows | 2,127 | 3,822 | 4,820 |
10 percent discount rate | (437) | (808) | (1,066) |
Discounted future net cash flows | 1,690 | 3,014 | 3,754 |
Egypt | Noncontrolling Interests | |||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||
Discounted future net cash flows | 563 | 1,000 | 1,300 |
North Sea | |||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items] | |||
Cash inflows | 4,122 | 7,454 | 9,206 |
Production costs | (2,388) | (2,730) | (2,588) |
Development costs | (2,448) | (2,651) | (2,714) |
Income tax expense | 316 | (784) | (1,352) |
Net cash flows | (398) | 1,289 | 2,552 |
10 percent discount rate | 1,111 | 297 | (107) |
Discounted future net cash flows | $ 713 | $ 1,586 | $ 2,445 |
SUPPLEMENTAL OIL AND GAS DISC_9
SUPPLEMENTAL OIL AND GAS DISCLOSURES (Unaudited) - Principal Sources of Change In Discounted Future Net Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Extractive Industries [Abstract] | |||
Sales, net of production costs | $ (2,422) | $ (4,291) | $ (5,335) |
Net change in prices and production costs | (5,753) | (3,034) | 3,902 |
Discoveries and improved recovery, net of related costs | 751 | 2,042 | 3,889 |
Change in future development costs | 20 | (75) | 47 |
Previously estimated development costs incurred during the period | 576 | 983 | 910 |
Revision of quantities | (418) | (741) | (648) |
Purchases of minerals in-place | 0 | 0 | 6 |
Accretion of discount | 1,236 | 1,693 | 1,216 |
Change in income taxes | 1,533 | 720 | (1,125) |
Sales of minerals in-place | (104) | (817) | (1) |
Change in production rates and other | 11 | (319) | 777 |
Change in the discounted future net cash flows, Total | $ (4,570) | $ (3,839) | $ 3,638 |