ý
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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41-0747868
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification Number)
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Large accelerated filer
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ý
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Accelerated filer
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¨
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Non-accelerated filer
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¨
(Do not check if a smaller reporting company)
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Smaller reporting company
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¨
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Number of shares of registrant’s common stock outstanding as of October 31, 2016
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379,429,334
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TABLE OF CONTENTS
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DESCRIPTION
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Item
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Page
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PART I - FINANCIAL INFORMATION
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1.
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2.
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3.
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4.
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PART II - OTHER INFORMATION
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1.
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1A.
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2.
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3.
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4.
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5.
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6.
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•
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the market prices of oil, natural gas, NGLs, and other products or services;
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•
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our commodity hedging arrangements;
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•
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the integration of acquisitions;
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•
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the supply and demand for oil, natural gas, NGLs, and other products or services;
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•
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production and reserve levels;
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•
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drilling risks;
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•
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economic and competitive conditions;
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•
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the availability of capital resources;
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•
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capital expenditure and other contractual obligations;
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•
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currency exchange rates;
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•
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weather conditions;
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•
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inflation rates;
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•
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the availability of goods and services;
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•
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legislative, regulatory, or policy changes;
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•
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terrorism or cyber attacks;
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•
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occurrence of property acquisitions or divestitures;
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•
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the securities or capital markets and related risks such as general credit, liquidity, market, and interest-rate risks; and
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•
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other factors disclosed under Items 1 and 2—Business and Properties—Estimated Proved Reserves and Future Net Cash Flows, Item 1A—Risk Factors and elsewhere in our most recently filed Annual Report on Form 10-K, Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations, Item 7A—Quantitative and Qualitative Disclosures About Market Risk and elsewhere in our Current Report on Form 8-K dated August 4, 2016, other risks and uncertainties in our
third
-quarter
2016
earnings release, other factors disclosed under Part II, Item 1A—Risk Factors of this Quarterly Report on Form 10-Q, and other filings that we make with the Securities and Exchange Commission.
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For the Quarter Ended September 30,
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For the Nine Months Ended September 30,
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||||||||||||
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2016
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2015*
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2016
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2015 *
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||||||||
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(In millions, except per common share data)
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||||||||||||||
REVENUES AND OTHER:
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||||||||
Oil and gas production revenues
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||||||||
Oil revenues
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$
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1,117
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|
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$
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1,238
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|
$
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3,057
|
|
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$
|
4,149
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|
Gas revenues
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263
|
|
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318
|
|
|
695
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|
|
941
|
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||||
Natural gas liquids revenues
|
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59
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|
|
50
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|
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160
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|
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166
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||||
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1,439
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1,606
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3,912
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5,256
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||||
Other
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(6
|
)
|
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(75
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)
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(30
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)
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|
(53
|
)
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||||
Gain (loss) on divestitures
|
|
5
|
|
|
(5
|
)
|
|
21
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|
|
204
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||||
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1,438
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1,526
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3,903
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5,407
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OPERATING EXPENSES:
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Lease operating expenses
|
|
382
|
|
|
450
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1,119
|
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1,398
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||||
Gathering and transportation
|
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51
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|
|
58
|
|
|
155
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|
|
163
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||||
Taxes other than income
|
|
9
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|
|
104
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|
|
85
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|
|
232
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||||
Exploration
|
|
161
|
|
|
223
|
|
|
347
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|
|
706
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||||
General and administrative
|
|
102
|
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|
89
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298
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|
284
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|
||||
Depreciation, depletion, and amortization:
|
|
|
|
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|
|
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Oil and gas property and equipment
|
|
610
|
|
|
793
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1,875
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|
|
2,247
|
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||||
Other assets
|
|
38
|
|
|
79
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|
|
120
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|
|
245
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||||
Asset retirement obligation accretion
|
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40
|
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37
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116
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|
|
109
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||||
Impairments
|
|
836
|
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3,903
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|
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1,009
|
|
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6,327
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|
||||
Transaction, reorganization, and separation
|
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12
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—
|
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36
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120
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Financing costs, net
|
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102
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|
160
|
|
|
311
|
|
|
401
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2,343
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5,896
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5,471
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12,232
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LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
|
(905
|
)
|
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(4,370
|
)
|
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(1,568
|
)
|
|
(6,825
|
)
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||||
Current income tax provision (benefit)
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|
150
|
|
|
(270
|
)
|
|
284
|
|
|
578
|
|
||||
Deferred income tax provision (benefit)
|
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(529
|
)
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19
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|
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(755
|
)
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(1,299
|
)
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NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST
|
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(526
|
)
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(4,119
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)
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(1,097
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)
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(6,104
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)
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Net loss from discontinued operations, net of tax
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(33
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)
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(17
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)
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(33
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)
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(135
|
)
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NET LOSS INCLUDING NONCONTROLLING INTEREST
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(559
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)
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(4,136
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)
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(1,130
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)
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(6,239
|
)
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Net income attributable to noncontrolling interest
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48
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|
7
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93
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|
98
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NET LOSS ATTRIBUTABLE TO COMMON STOCK
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$
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(607
|
)
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$
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(4,143
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)
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$
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(1,223
|
)
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|
$
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(6,337
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)
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NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS:
|
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|
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Net loss from continuing operations attributable to common shareholders
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$
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(574
|
)
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$
|
(4,126
|
)
|
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$
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(1,190
|
)
|
|
$
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(6,202
|
)
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Net loss from discontinued operations
|
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(33
|
)
|
|
(17
|
)
|
|
(33
|
)
|
|
(135
|
)
|
||||
Net loss attributable to common shareholders
|
|
$
|
(607
|
)
|
|
$
|
(4,143
|
)
|
|
$
|
(1,223
|
)
|
|
$
|
(6,337
|
)
|
NET LOSS PER COMMON SHARE:
|
|
|
|
|
|
|
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Basic net loss from continuing operations per share
|
|
$
|
(1.51
|
)
|
|
$
|
(10.91
|
)
|
|
$
|
(3.14
|
)
|
|
$
|
(16.42
|
)
|
Basic net loss from discontinued operations per share
|
|
(0.09
|
)
|
|
(0.04
|
)
|
|
(0.08
|
)
|
|
(0.36
|
)
|
||||
Basic net loss per share
|
|
$
|
(1.60
|
)
|
|
$
|
(10.95
|
)
|
|
$
|
(3.22
|
)
|
|
$
|
(16.78
|
)
|
DILUTED NET LOSS PER COMMON SHARE:
|
|
|
|
|
|
|
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Diluted net loss from continuing operations per share
|
|
$
|
(1.51
|
)
|
|
$
|
(10.91
|
)
|
|
$
|
(3.14
|
)
|
|
$
|
(16.42
|
)
|
Diluted net loss from discontinued operations per share
|
|
(0.09
|
)
|
|
(0.04
|
)
|
|
(0.08
|
)
|
|
(0.36
|
)
|
||||
Diluted net loss per share
|
|
$
|
(1.60
|
)
|
|
$
|
(10.95
|
)
|
|
$
|
(3.22
|
)
|
|
$
|
(16.78
|
)
|
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
380
|
|
|
378
|
|
|
379
|
|
|
378
|
|
||||
Diluted
|
|
380
|
|
|
378
|
|
|
379
|
|
|
378
|
|
||||
DIVIDENDS DECLARED PER COMMON SHARE
|
|
$
|
0.25
|
|
|
$
|
0.25
|
|
|
$
|
0.75
|
|
|
$
|
0.75
|
|
|
|
For the Nine Months Ended September 30,
|
||||||
|
|
2016
|
|
2015*
|
||||
|
|
(In millions)
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
||||
Net loss including noncontrolling interest
|
|
$
|
(1,130
|
)
|
|
$
|
(6,239
|
)
|
Adjustments to reconcile net loss to net cash provided by operating activities:
|
|
|
|
|
||||
Loss from discontinued operations
|
|
33
|
|
|
135
|
|
||
Gain on divestitures
|
|
(21
|
)
|
|
(204
|
)
|
||
Exploratory dry hole expense and unproved leasehold impairments
|
|
260
|
|
|
584
|
|
||
Depreciation, depletion, and amortization
|
|
1,995
|
|
|
2,492
|
|
||
Asset retirement obligation accretion
|
|
116
|
|
|
109
|
|
||
Impairments
|
|
1,009
|
|
|
6,327
|
|
||
Deferred income tax benefit
|
|
(755
|
)
|
|
(1,299
|
)
|
||
Other
|
|
126
|
|
|
80
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
||||
Receivables
|
|
192
|
|
|
585
|
|
||
Inventories
|
|
(2
|
)
|
|
54
|
|
||
Drilling advances
|
|
(36
|
)
|
|
125
|
|
||
Deferred charges and other
|
|
40
|
|
|
(117
|
)
|
||
Accounts payable
|
|
(93
|
)
|
|
(463
|
)
|
||
Accrued expenses
|
|
(67
|
)
|
|
109
|
|
||
Deferred credits and noncurrent liabilities
|
|
(33
|
)
|
|
102
|
|
||
NET CASH PROVIDED BY CONTINUING OPERATING ACTIVITIES
|
|
1,634
|
|
|
2,380
|
|
||
NET CASH PROVIDED BY DISCONTINUED OPERATIONS
|
|
—
|
|
|
113
|
|
||
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
|
1,634
|
|
|
2,493
|
|
||
|
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
||||
Additions to oil and gas property
|
|
(1,281
|
)
|
|
(3,562
|
)
|
||
Leasehold and property acquisitions
|
|
(169
|
)
|
|
(254
|
)
|
||
Additions to gas gathering, transmission, and processing facilities
|
|
(33
|
)
|
|
(113
|
)
|
||
Proceeds from sale of Kitimat LNG project
|
|
—
|
|
|
854
|
|
||
Proceeds from sale of other oil and gas properties
|
|
74
|
|
|
148
|
|
||
Other, net
|
|
47
|
|
|
(99
|
)
|
||
NET CASH USED IN CONTINUING INVESTING ACTIVITIES
|
|
(1,362
|
)
|
|
(3,026
|
)
|
||
NET CASH PROVIDED BY DISCONTINUED OPERATIONS
|
|
—
|
|
|
4,372
|
|
||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
|
|
(1,362
|
)
|
|
1,346
|
|
||
|
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
||||
Commercial paper and bank credit facilities, net
|
|
—
|
|
|
(1,570
|
)
|
||
Payment of fixed-rate debt
|
|
(1
|
)
|
|
(939
|
)
|
||
Distributions to noncontrolling interest
|
|
(215
|
)
|
|
(97
|
)
|
||
Dividends paid
|
|
(284
|
)
|
|
(283
|
)
|
||
Other
|
|
(9
|
)
|
|
26
|
|
||
NET CASH USED IN FINANCING ACTIVITIES
|
|
(509
|
)
|
|
(2,863
|
)
|
||
|
|
|
|
|
||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
(237
|
)
|
|
976
|
|
||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
|
|
1,467
|
|
|
679
|
|
||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
|
$
|
1,230
|
|
|
$
|
1,655
|
|
|
|
|
|
|
||||
SUPPLEMENTARY CASH FLOW DATA:
|
|
|
|
|
||||
Interest paid, net of capitalized interest
|
|
$
|
345
|
|
|
$
|
385
|
|
Income taxes paid, net of refunds
|
|
256
|
|
|
270
|
|
|
|
September 30, 2016
|
|
December 31, 2015*
|
||||
|
|
(In millions)
|
||||||
ASSETS
|
|
|
|
|
||||
CURRENT ASSETS:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
1,230
|
|
|
$
|
1,467
|
|
Receivables, net of allowance
|
|
1,064
|
|
|
1,253
|
|
||
Inventories
|
|
513
|
|
|
570
|
|
||
Drilling advances
|
|
209
|
|
|
172
|
|
||
Prepaid assets and other
|
|
256
|
|
|
290
|
|
||
|
|
3,272
|
|
|
3,752
|
|
||
PROPERTY AND EQUIPMENT:
|
|
|
|
|
||||
Oil and gas, on the basis of successful efforts accounting:
|
|
|
|
|
||||
Proved properties
|
|
42,591
|
|
|
41,728
|
|
||
Unproved properties and properties under development, not being amortized
|
|
2,061
|
|
|
2,277
|
|
||
Gathering, transmission and processing facilities
|
|
886
|
|
|
1,052
|
|
||
Other
|
|
1,102
|
|
|
1,093
|
|
||
|
|
46,640
|
|
|
46,150
|
|
||
Less: Accumulated depreciation, depletion, and amortization
|
|
(27,178
|
)
|
|
(25,312
|
)
|
||
|
|
19,462
|
|
|
20,838
|
|
||
OTHER ASSETS:
|
|
|
|
|
||||
Deferred charges and other
|
|
415
|
|
|
910
|
|
||
|
|
$
|
23,149
|
|
|
$
|
25,500
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
||||
CURRENT LIABILITIES:
|
|
|
|
|
||||
Accounts payable
|
|
$
|
557
|
|
|
$
|
618
|
|
Other current liabilities (Note 5)
|
|
1,071
|
|
|
1,223
|
|
||
|
|
1,628
|
|
|
1,841
|
|
||
LONG-TERM DEBT
|
|
8,721
|
|
|
8,716
|
|
||
DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES:
|
|
|
|
|
||||
Income taxes
|
|
1,783
|
|
|
2,529
|
|
||
Asset retirement obligation
|
|
2,742
|
|
|
2,562
|
|
||
Other
|
|
326
|
|
|
362
|
|
||
|
|
4,851
|
|
|
5,453
|
|
||
COMMITMENTS AND CONTINGENCIES (Note 9)
|
|
|
|
|
||||
EQUITY:
|
|
|
|
|
||||
Common stock, $0.625 par, 860,000,000 shares authorized, 412,602,756 and 411,218,105 shares issued, respectively
|
|
258
|
|
|
257
|
|
||
Paid-in capital
|
|
12,421
|
|
|
12,619
|
|
||
Accumulated deficit
|
|
(3,203
|
)
|
|
(1,980
|
)
|
||
Treasury stock, at cost, 33,173,422 and 33,183,930 shares, respectively
|
|
(2,888
|
)
|
|
(2,889
|
)
|
||
Accumulated other comprehensive loss
|
|
(119
|
)
|
|
(119
|
)
|
||
APACHE SHAREHOLDERS’ EQUITY
|
|
6,469
|
|
|
7,888
|
|
||
Noncontrolling interest
|
|
1,480
|
|
|
1,602
|
|
||
TOTAL EQUITY
|
|
7,949
|
|
|
9,490
|
|
||
|
|
$
|
23,149
|
|
|
$
|
25,500
|
|
|
|
Common
Stock
|
|
Paid-In
Capital
|
|
Retained Earnings (Accumulated Deficit)
|
|
Treasury
Stock
|
|
Accumulated
Other
Comprehensive
Loss
|
|
APACHE
SHAREHOLDERS’
EQUITY
|
|
Non
Controlling
Interest
|
|
TOTAL
EQUITY
|
||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2014 previously reported
|
|
$
|
256
|
|
|
$
|
12,438
|
|
|
$
|
16,249
|
|
|
$
|
(2,890
|
)
|
|
$
|
(116
|
)
|
|
$
|
25,937
|
|
|
$
|
2,200
|
|
|
$
|
28,137
|
|
Effect of change in accounting principle
|
|
—
|
|
|
152
|
|
|
(7,594
|
)
|
|
—
|
|
|
—
|
|
|
(7,442
|
)
|
|
(154
|
)
|
|
(7,596
|
)
|
||||||||
BALANCE AT DECEMBER 31, 2014 as recast
|
|
$
|
256
|
|
|
$
|
12,590
|
|
|
$
|
8,655
|
|
|
$
|
(2,890
|
)
|
|
$
|
(116
|
)
|
|
$
|
18,495
|
|
|
$
|
2,046
|
|
|
$
|
20,541
|
|
Net income (loss)
|
|
—
|
|
|
—
|
|
|
(6,337
|
)
|
|
—
|
|
|
—
|
|
|
(6,337
|
)
|
|
98
|
|
|
(6,239
|
)
|
||||||||
Distributions to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(97
|
)
|
|
(97
|
)
|
||||||||
Common dividends ($0.75 per share)
|
|
—
|
|
|
—
|
|
|
(283
|
)
|
|
—
|
|
|
—
|
|
|
(283
|
)
|
|
—
|
|
|
(283
|
)
|
||||||||
Other
|
|
1
|
|
|
59
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
61
|
|
|
—
|
|
|
61
|
|
||||||||
BALANCE AT SEPTEMBER 30, 2015
|
|
$
|
257
|
|
|
$
|
12,649
|
|
|
$
|
2,035
|
|
|
$
|
(2,889
|
)
|
|
$
|
(116
|
)
|
|
$
|
11,936
|
|
|
$
|
2,047
|
|
|
$
|
13,983
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
BALANCE AT DECEMBER 31, 2015 previously reported
|
|
$
|
257
|
|
|
$
|
12,467
|
|
|
$
|
(7,153
|
)
|
|
$
|
(2,889
|
)
|
|
$
|
(116
|
)
|
|
$
|
2,566
|
|
|
$
|
1,662
|
|
|
$
|
4,228
|
|
Effect of change in accounting principle
|
|
—
|
|
|
152
|
|
|
5,173
|
|
|
—
|
|
|
(3
|
)
|
|
5,322
|
|
|
(60
|
)
|
|
5,262
|
|
||||||||
BALANCE AT DECEMBER 31, 2015 as recast
|
|
$
|
257
|
|
|
$
|
12,619
|
|
|
$
|
(1,980
|
)
|
|
$
|
(2,889
|
)
|
|
$
|
(119
|
)
|
|
$
|
7,888
|
|
|
$
|
1,602
|
|
|
$
|
9,490
|
|
Net income (loss)
|
|
—
|
|
|
—
|
|
|
(1,223
|
)
|
|
—
|
|
|
—
|
|
|
(1,223
|
)
|
|
93
|
|
|
(1,130
|
)
|
||||||||
Distributions to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(215
|
)
|
|
(215
|
)
|
||||||||
Common dividends ($0.75 per share)
|
|
—
|
|
|
(284
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(284
|
)
|
|
—
|
|
|
(284
|
)
|
||||||||
Other
|
|
1
|
|
|
86
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
88
|
|
|
—
|
|
|
88
|
|
||||||||
BALANCE AT SEPTEMBER 30, 2016
|
|
$
|
258
|
|
|
$
|
12,421
|
|
|
$
|
(3,203
|
)
|
|
$
|
(2,888
|
)
|
|
$
|
(119
|
)
|
|
$
|
6,469
|
|
|
$
|
1,480
|
|
|
$
|
7,949
|
|
1.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
|
|
Quarter Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
(In millions)
|
||||||||||||||
Oil and Gas Property:
|
|
|
|
|
|
|
|
|
||||||||
Proved
|
|
$
|
355
|
|
|
$
|
3,536
|
|
|
$
|
423
|
|
|
$
|
5,797
|
|
Unproved
|
|
114
|
|
|
199
|
|
|
222
|
|
|
515
|
|
2.
|
CHANGE IN ACCOUNTING PRINCIPLE
|
|
Changes to the Statement of Consolidated Operations
|
||||||||||
For the Quarter Ended September 30, 2016
|
Under Full Cost
|
|
Changes
|
|
As Reported Under Successful Efforts
|
||||||
|
(In millions, except per share data)
|
||||||||||
Oil revenues
|
$
|
1,058
|
|
|
$
|
59
|
|
|
$
|
1,117
|
|
Natural gas revenues
|
273
|
|
|
(10
|
)
|
|
263
|
|
|||
NGL revenues
|
59
|
|
|
—
|
|
|
59
|
|
|||
Oil and gas production revenues
|
1,390
|
|
|
49
|
|
|
1,439
|
|
|||
Other
|
(5
|
)
|
|
(1
|
)
|
|
(6
|
)
|
|||
Gain on divestiture
|
2
|
|
|
3
|
|
|
5
|
|
|||
Exploration
|
—
|
|
|
161
|
|
|
161
|
|
|||
Depreciation, depletion, and amortization:
|
|
|
|
|
|
||||||
Oil and Gas Property and Equipment
|
|
|
|
|
|
||||||
Recurring
|
473
|
|
|
137
|
|
|
610
|
|
|||
Additional
|
328
|
|
|
(328
|
)
|
|
—
|
|
|||
Impairments
|
481
|
|
|
355
|
|
|
836
|
|
|||
Financing costs, net
|
92
|
|
|
10
|
|
|
102
|
|
|||
Current income tax provision
|
101
|
|
|
49
|
|
|
150
|
|
|||
Deferred income tax provision (benefit)
|
(407
|
)
|
|
(122
|
)
|
|
(529
|
)
|
|||
NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST
|
(315
|
)
|
|
(211
|
)
|
|
(526
|
)
|
|||
Net income (loss) attributable to noncontrolling interest
|
37
|
|
|
11
|
|
|
48
|
|
|||
NET LOSS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS
|
(352
|
)
|
|
(222
|
)
|
|
(574
|
)
|
|||
Net income (loss) from discontinued operations
|
(33
|
)
|
|
—
|
|
|
(33
|
)
|
|||
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS
|
(385
|
)
|
|
(222
|
)
|
|
(607
|
)
|
|||
|
|
|
|
|
|
||||||
Per common share
|
|
|
|
|
|
||||||
Basic net loss from continuing operations per share
|
$
|
(0.96
|
)
|
|
$
|
(0.55
|
)
|
|
$
|
(1.51
|
)
|
Basic net loss from discontinued operations per share
|
(0.06
|
)
|
|
—
|
|
|
(0.09
|
)
|
|||
Basic net loss per share
|
$
|
(1.02
|
)
|
|
$
|
(0.55
|
)
|
|
$
|
(1.60
|
)
|
|
|
|
|
|
|
||||||
Diluted net loss from continuing operations per share
|
$
|
(0.96
|
)
|
|
$
|
(0.55
|
)
|
|
$
|
(1.51
|
)
|
Diluted net loss from discontinued operations per share
|
(0.06
|
)
|
|
—
|
|
|
(0.09
|
)
|
|||
Diluted net loss per share
|
$
|
(1.02
|
)
|
|
$
|
(0.55
|
)
|
|
$
|
(1.60
|
)
|
|
Changes to the Statement of Consolidated Operations
|
||||||||||
For the Quarter Ended September 30, 2015
|
Under Full Cost
|
|
Changes*
|
|
As Reported Under Successful Efforts
|
||||||
|
(In millions, except per share data)
|
||||||||||
Oil revenues
|
$
|
1,213
|
|
|
$
|
25
|
|
|
$
|
1,238
|
|
Natural gas revenues
|
309
|
|
|
9
|
|
|
318
|
|
|||
NGL revenues
|
50
|
|
|
—
|
|
|
50
|
|
|||
Oil and gas production revenues
|
1,572
|
|
|
34
|
|
|
1,606
|
|
|||
Other
|
(76
|
)
|
|
1
|
|
|
(75
|
)
|
|||
Loss on divestiture
|
—
|
|
|
(5
|
)
|
|
(5
|
)
|
|||
Exploration
|
—
|
|
|
223
|
|
|
223
|
|
|||
General and administrative
|
86
|
|
|
3
|
|
|
89
|
|
|||
Depreciation, depletion, and amortization:
|
|
|
|
|
|
||||||
Oil and Gas Property and Equipment
|
|
|
|
|
|
||||||
Recurring
|
829
|
|
|
(36
|
)
|
|
793
|
|
|||
Additional
|
5,721
|
|
|
(5,721
|
)
|
|
—
|
|
|||
Impairments
|
367
|
|
|
3,536
|
|
|
3,903
|
|
|||
Financing costs, net
|
107
|
|
|
53
|
|
|
160
|
|
|||
Current income tax benefit
|
(84
|
)
|
|
(186
|
)
|
|
(270
|
)
|
|||
Deferred income tax provision (benefit)
|
(707
|
)
|
|
726
|
|
|
19
|
|
|||
NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST
|
(5,551
|
)
|
|
1,432
|
|
|
(4,119
|
)
|
|||
Net income attributable to noncontrolling interest
|
9
|
|
|
(2
|
)
|
|
7
|
|
|||
NET LOSS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS
|
(5,560
|
)
|
|
1,434
|
|
|
(4,126
|
)
|
|||
Net loss from discontinued operations
|
(95
|
)
|
|
78
|
|
|
(17
|
)
|
|||
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS
|
(5,655
|
)
|
|
1,512
|
|
|
(4,143
|
)
|
|||
|
|
|
|
|
|
||||||
Per common share
|
|
|
|
|
|
||||||
Basic net loss from continuing operations per share
|
$
|
(14.70
|
)
|
|
$
|
3.79
|
|
|
$
|
(10.91
|
)
|
Basic net loss from discontinued operations per share
|
(0.25
|
)
|
|
0.21
|
|
|
(0.04
|
)
|
|||
Basic net loss per share
|
$
|
(14.95
|
)
|
|
$
|
4.00
|
|
|
$
|
(10.95
|
)
|
|
|
|
|
|
|
||||||
Diluted net loss from continuing operations per share
|
$
|
(14.70
|
)
|
|
$
|
3.79
|
|
|
$
|
(10.91
|
)
|
Diluted net loss from discontinued operations per share
|
(0.25
|
)
|
|
0.21
|
|
|
(0.04
|
)
|
|||
Diluted net loss per share
|
$
|
(14.95
|
)
|
|
$
|
4.00
|
|
|
$
|
(10.95
|
)
|
|
Changes to the Statement of Consolidated Operations
|
||||||||||
For the Nine Months Ended September 30, 2016
|
Under Full Cost
|
|
Changes*
|
|
As Reported Under Successful Efforts
|
||||||
|
(In millions, except per share data)
|
||||||||||
Oil revenues
|
$
|
2,915
|
|
|
$
|
142
|
|
|
$
|
3,057
|
|
Natural gas revenues
|
715
|
|
|
(20
|
)
|
|
695
|
|
|||
NGL revenues
|
160
|
|
|
—
|
|
|
160
|
|
|||
Oil and gas production revenues
|
3,790
|
|
|
122
|
|
|
3,912
|
|
|||
Other
|
(33
|
)
|
|
3
|
|
|
(30
|
)
|
|||
Gain on divestiture
|
5
|
|
|
16
|
|
|
21
|
|
|||
Exploration
|
—
|
|
|
347
|
|
|
347
|
|
|||
Depreciation, depletion, and amortization:
|
|
|
|
|
|
||||||
Oil and Gas Property and Equipment
|
|
|
|
|
|
||||||
Recurring
|
1,532
|
|
|
343
|
|
|
1,875
|
|
|||
Additional
|
1,486
|
|
|
(1,486
|
)
|
|
—
|
|
|||
Impairments
|
587
|
|
|
422
|
|
|
1,009
|
|
|||
Financing costs, net
|
272
|
|
|
39
|
|
|
311
|
|
|||
Current income tax provision
|
162
|
|
|
122
|
|
|
284
|
|
|||
Deferred income tax provision (benefit)
|
(708
|
)
|
|
(47
|
)
|
|
(755
|
)
|
|||
NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST
|
(1,498
|
)
|
|
401
|
|
|
(1,097
|
)
|
|||
Net income (loss) attributable to noncontrolling interest
|
(56
|
)
|
|
149
|
|
|
93
|
|
|||
NET LOSS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS
|
(1,442
|
)
|
|
252
|
|
|
(1,190
|
)
|
|||
Net income (loss) from discontinued operations
|
(33
|
)
|
|
—
|
|
|
(33
|
)
|
|||
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS
|
(1,475
|
)
|
|
252
|
|
|
(1,223
|
)
|
|||
|
|
|
|
|
|
||||||
Per common share
|
|
|
|
|
|
||||||
Basic net loss from continuing operations per share
|
$
|
(3.83
|
)
|
|
$
|
0.69
|
|
|
$
|
(3.14
|
)
|
Basic net loss from discontinued operations per share
|
(0.06
|
)
|
|
—
|
|
|
(0.08
|
)
|
|||
Basic net loss per share
|
$
|
(3.89
|
)
|
|
$
|
0.69
|
|
|
$
|
(3.22
|
)
|
|
|
|
|
|
|
||||||
Diluted net loss from continuing operations per share
|
$
|
(3.83
|
)
|
|
$
|
0.69
|
|
|
$
|
(3.14
|
)
|
Diluted net loss from discontinued operations per share
|
(0.06
|
)
|
|
—
|
|
|
(0.08
|
)
|
|||
Diluted net loss per share
|
$
|
(3.89
|
)
|
|
$
|
0.69
|
|
|
$
|
(3.22
|
)
|
|
Changes to the Statement of Consolidated Operations
|
||||||||||
For the Nine Months Ended September 30, 2015
|
Under Full Cost
|
|
Changes*
|
|
As Reported Under Successful Efforts
|
||||||
|
(In millions, except per share data)
|
||||||||||
Oil revenues
|
$
|
4,092
|
|
|
$
|
57
|
|
|
$
|
4,149
|
|
Natural gas revenues
|
904
|
|
|
37
|
|
|
941
|
|
|||
NGL revenues
|
166
|
|
|
—
|
|
|
166
|
|
|||
Oil and gas production revenues
|
5,162
|
|
|
94
|
|
|
5,256
|
|
|||
Other
|
(59
|
)
|
|
6
|
|
|
(53
|
)
|
|||
Gain on divestiture
|
—
|
|
|
204
|
|
|
204
|
|
|||
Exploration
|
—
|
|
|
706
|
|
|
706
|
|
|||
General and administrative
|
279
|
|
|
5
|
|
|
284
|
|
|||
Depreciation, depletion, and amortization:
|
|
|
|
|
|
||||||
Oil and Gas Property and Equipment
|
|
|
|
|
|
||||||
Recurring
|
2,751
|
|
|
(504
|
)
|
|
2,247
|
|
|||
Additional
|
18,757
|
|
|
(18,757
|
)
|
|
—
|
|
|||
Impairments
|
367
|
|
|
5,960
|
|
|
6,327
|
|
|||
Financing costs, net
|
240
|
|
|
161
|
|
|
401
|
|
|||
Current income tax provision
|
496
|
|
|
82
|
|
|
578
|
|
|||
Deferred income tax provision (benefit)
|
(5,167
|
)
|
|
3,868
|
|
|
(1,299
|
)
|
|||
NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST
|
(14,887
|
)
|
|
8,783
|
|
|
(6,104
|
)
|
|||
Net income attributable to noncontrolling interest
|
60
|
|
|
38
|
|
|
98
|
|
|||
NET LOSS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS
|
(14,947
|
)
|
|
8,745
|
|
|
(6,202
|
)
|
|||
Net loss from discontinued operations
|
(959
|
)
|
|
824
|
|
|
(135
|
)
|
|||
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS
|
(15,906
|
)
|
|
9,569
|
|
|
(6,337
|
)
|
|||
|
|
|
|
|
|
||||||
Per common share
|
|
|
|
|
|
||||||
Basic net loss from continuing operations per share
|
$
|
(39.58
|
)
|
|
$
|
23.16
|
|
|
$
|
(16.42
|
)
|
Basic net loss from discontinued operations per share
|
(2.54
|
)
|
|
2.18
|
|
|
(0.36
|
)
|
|||
Basic net loss per share
|
$
|
(42.12
|
)
|
|
$
|
25.34
|
|
|
$
|
(16.78
|
)
|
|
|
|
|
|
|
||||||
Diluted net loss from continuing operations per share
|
$
|
(39.58
|
)
|
|
$
|
23.16
|
|
|
$
|
(16.42
|
)
|
Diluted net loss from discontinued operations per share
|
(2.54
|
)
|
|
2.18
|
|
|
(0.36
|
)
|
|||
Diluted net loss per share
|
$
|
(42.12
|
)
|
|
$
|
25.34
|
|
|
$
|
(16.78
|
)
|
|
Changes to the Statement of Consolidated Cash Flows
|
||||||||||
For the Nine Months Ended September 30, 2016
|
Under Full Cost
|
|
Changes*
|
|
As Reported Under Successful Efforts
|
||||||
|
(In millions)
|
||||||||||
Net loss including noncontrolling interest
|
$
|
(1,531
|
)
|
|
$
|
401
|
|
|
$
|
(1,130
|
)
|
Gain on divestitures, net
|
(5
|
)
|
|
(16
|
)
|
|
(21
|
)
|
|||
Exploratory dry hole expense and unproved leasehold impairments
|
—
|
|
|
260
|
|
|
260
|
|
|||
Depreciation, depletion, and amortization
|
3,138
|
|
|
(1,143
|
)
|
|
1,995
|
|
|||
Impairments
|
587
|
|
|
422
|
|
|
1,009
|
|
|||
Provision for (benefit from) deferred income taxes
|
(708
|
)
|
|
(47
|
)
|
|
(755
|
)
|
|||
Changes in operating assets and liabilities
|
3
|
|
|
(2
|
)
|
|
1
|
|
|||
Net cash provided by operating activities
|
1,759
|
|
|
(125
|
)
|
|
1,634
|
|
|||
Additions to oil and gas property
|
(1,406
|
)
|
|
125
|
|
|
(1,281
|
)
|
|||
Net cash used in investing activities
|
(1,487
|
)
|
|
125
|
|
|
(1,362
|
)
|
|||
NET INCREASE (DECREASE) IN CASH
|
(237
|
)
|
|
—
|
|
|
(237
|
)
|
|||
BEGINNING CASH BALANCE
|
1,467
|
|
|
—
|
|
|
1,467
|
|
|||
ENDING CASH BALANCE
|
1,230
|
|
|
—
|
|
|
1,230
|
|
|
Changes to the Statement of Consolidated Cash Flows
|
||||||||||
For the Nine Months Ended September 30, 2015
|
Under Full Cost
|
|
Changes*
|
|
As Reported Under Successful Efforts
|
||||||
|
(In millions)
|
||||||||||
Net loss including noncontrolling interest
|
$
|
(15,846
|
)
|
|
$
|
9,607
|
|
|
$
|
(6,239
|
)
|
Loss from discontinued operations
|
959
|
|
|
(824
|
)
|
|
135
|
|
|||
Gain on divestitures, net
|
—
|
|
|
(204
|
)
|
|
(204
|
)
|
|||
Exploratory dry hole expense and unproved leasehold impairments
|
—
|
|
|
584
|
|
|
584
|
|
|||
Depreciation, depletion, and amortization
|
21,753
|
|
|
(19,261
|
)
|
|
2,492
|
|
|||
Impairments
|
367
|
|
|
5,960
|
|
|
6,327
|
|
|||
Provision for (benefit from) deferred income taxes
|
(5,167
|
)
|
|
3,868
|
|
|
(1,299
|
)
|
|||
Changes in operating assets and liabilities
|
317
|
|
|
78
|
|
|
395
|
|
|||
Net cash provided by operating activities - continuing operations
|
2,572
|
|
|
(192
|
)
|
|
2,380
|
|
|||
Net cash provided by operating activities - discontinued operations
|
150
|
|
|
(37
|
)
|
|
113
|
|
|||
Additions to oil and gas property
|
(3,844
|
)
|
|
282
|
|
|
(3,562
|
)
|
|||
Net cash used in investing activities - continuing operations
|
(3,308
|
)
|
|
282
|
|
|
(3,026
|
)
|
|||
Net cash provided by investing activities - discontinued operations
|
4,335
|
|
|
37
|
|
|
4,372
|
|
|||
NET INCREASE (DECREASE) IN CASH
|
886
|
|
|
90
|
|
|
976
|
|
|||
BEGINNING CASH BALANCE
|
769
|
|
|
(90
|
)
|
|
679
|
|
|||
ENDING CASH BALANCE
|
1,655
|
|
|
—
|
|
|
1,655
|
|
|
Changes to the Consolidated Balance Sheet
|
||||||||||
September 30, 2016
|
Under Full Cost
|
|
Changes
|
|
As Reported Under Successful Efforts
|
||||||
|
(In millions)
|
||||||||||
PROPERTY AND EQUIPMENT:
|
|
|
|
|
|
||||||
Property and equipment - cost
|
$
|
95,107
|
|
|
$
|
(48,467
|
)
|
|
$
|
46,640
|
|
Less: Accumulated depreciation, depletion, and amortization
|
(82,717
|
)
|
|
55,539
|
|
|
(27,178
|
)
|
|||
PROPERTY AND EQUIPMENT, NET
|
12,390
|
|
|
7,072
|
|
|
19,462
|
|
|||
TOTAL ASSETS
|
16,077
|
|
|
7,072
|
|
|
23,149
|
|
|||
Deferred income taxes
|
364
|
|
|
1,419
|
|
|
1,783
|
|
|||
Paid-in capital
|
12,279
|
|
|
142
|
|
|
12,421
|
|
|||
Accumulated deficit
|
(8,628
|
)
|
|
5,425
|
|
|
(3,203
|
)
|
|||
Accumulated other comprehensive loss
|
(116
|
)
|
|
(3
|
)
|
|
(119
|
)
|
|||
Noncontrolling interest
|
1,391
|
|
|
89
|
|
|
1,480
|
|
|||
TOTAL EQUITY
|
2,296
|
|
|
5,653
|
|
|
7,949
|
|
|
Changes to the Consolidated Balance Sheet
|
||||||||||
December 31, 2015
|
Under Full Cost
|
|
Changes*
|
|
As Reported Under Successful Efforts
|
||||||
|
(In millions)
|
||||||||||
PROPERTY AND EQUIPMENT:
|
|
|
|
|
|
||||||
Property and equipment - cost
|
$
|
93,825
|
|
|
$
|
(47,675
|
)
|
|
$
|
46,150
|
|
Less: Accumulated depreciation, depletion, and amortization
|
(79,706
|
)
|
|
54,394
|
|
|
(25,312
|
)
|
|||
PROPERTY AND EQUIPMENT, NET
|
14,119
|
|
|
6,719
|
|
|
20,838
|
|
|||
TOTAL ASSETS
|
18,781
|
|
|
6,719
|
|
|
25,500
|
|
|||
Deferred income taxes
|
1,072
|
|
|
1,457
|
|
|
2,529
|
|
|||
Paid-in capital
|
12,467
|
|
|
152
|
|
|
12,619
|
|
|||
Accumulated deficit
(1)
|
(7,153
|
)
|
|
5,173
|
|
|
(1,980
|
)
|
|||
Accumulated other comprehensive loss
|
(116
|
)
|
|
(3
|
)
|
|
(119
|
)
|
|||
Noncontrolling interest
|
1,662
|
|
|
(60
|
)
|
|
1,602
|
|
|||
TOTAL EQUITY
|
4,228
|
|
|
5,262
|
|
|
9,490
|
|
3.
|
ACQUISITIONS AND DIVESTITURES
|
|
|
|
For the Quarter Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
(In millions)
|
||||||||||||||
Revenues and other from discontinued operations
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
288
|
|
Impairment on Woodside sale
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(49
|
)
|
Loss on Woodside sale
|
|
(23
|
)
|
|
—
|
|
|
(23
|
)
|
|
—
|
|
||||
Loss on Consortium sale
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(139
|
)
|
||||
Income from divested Australian operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28
|
|
||||
Income tax benefit (expense)
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
25
|
|
||||
Loss from Australian discontinued operations, net of tax
|
|
$
|
(23
|
)
|
|
$
|
(17
|
)
|
|
$
|
(23
|
)
|
|
$
|
(135
|
)
|
5.
|
OTHER CURRENT LIABILITIES
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
|
|
(In millions)
|
||||||
Accrued operating expenses
|
|
$
|
117
|
|
|
$
|
139
|
|
Accrued exploration and development
|
|
495
|
|
|
637
|
|
||
Accrued compensation and benefits
|
|
147
|
|
|
166
|
|
||
Accrued interest
|
|
109
|
|
|
144
|
|
||
Accrued income taxes
|
|
66
|
|
|
47
|
|
||
Current debt
|
|
1
|
|
|
1
|
|
||
Current asset retirement obligation
|
|
36
|
|
|
36
|
|
||
Other
|
|
100
|
|
|
53
|
|
||
Total other current liabilities
|
|
$
|
1,071
|
|
|
$
|
1,223
|
|
6.
|
ASSET RETIREMENT OBLIGATION
|
|
|
(In millions)
|
||
Asset retirement obligation at December 31, 2015
|
|
$
|
2,598
|
|
Liabilities incurred
|
|
7
|
|
|
Liabilities acquired
|
|
34
|
|
|
Liabilities divested
|
|
(1
|
)
|
|
Liabilities settled
|
|
(35
|
)
|
|
Accretion expense
|
|
116
|
|
|
Revisions in estimated liabilities
|
|
59
|
|
|
Asset retirement obligation at September 30, 2016
|
|
2,778
|
|
|
Less current portion
|
|
36
|
|
|
Asset retirement obligation, long-term
|
|
$
|
2,742
|
|
7.
|
DEBT AND FINANCING COSTS
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||||||||||
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
||||||||
|
|
(In millions)
|
||||||||||||||
Commercial paper and committed bank facilities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Notes and debentures
|
|
8,722
|
|
|
9,429
|
|
|
8,717
|
|
|
8,330
|
|
||||
Total Debt
|
|
$
|
8,722
|
|
|
$
|
9,429
|
|
|
$
|
8,717
|
|
|
$
|
8,330
|
|
|
|
For the Quarter Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
(In millions)
|
||||||||||||||
Interest expense
|
|
$
|
116
|
|
|
$
|
120
|
|
|
$
|
348
|
|
|
$
|
371
|
|
Amortization of deferred loan costs
|
|
2
|
|
|
6
|
|
|
5
|
|
|
10
|
|
||||
Capitalized interest
|
|
(13
|
)
|
|
(3
|
)
|
|
(36
|
)
|
|
(12
|
)
|
||||
Loss on extinguishment of debt
|
|
—
|
|
|
39
|
|
|
—
|
|
|
39
|
|
||||
Interest income
|
|
(3
|
)
|
|
(2
|
)
|
|
(6
|
)
|
|
(7
|
)
|
||||
Financing costs, net
|
|
$
|
102
|
|
|
$
|
160
|
|
|
$
|
311
|
|
|
$
|
401
|
|
8.
|
INCOME TAXES
|
9.
|
COMMITMENTS AND CONTINGENCIES
|
10.
|
CAPITAL STOCK
|
|
|
For the Quarter Ended September 30,
|
||||||||||||||||||||
|
|
2016
|
|
2015
|
||||||||||||||||||
|
|
Loss
|
|
Shares
|
|
Per Share
|
|
Loss
|
|
Shares
|
|
Per Share
|
||||||||||
|
|
(In millions, except per share amounts)
|
||||||||||||||||||||
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss from continuing operations
|
|
$
|
(574
|
)
|
|
380
|
|
|
$
|
(1.51
|
)
|
|
$
|
(4,126
|
)
|
|
378
|
|
|
$
|
(10.91
|
)
|
Loss from discontinued operations
|
|
(33
|
)
|
|
380
|
|
|
(0.09
|
)
|
|
(17
|
)
|
|
378
|
|
|
(0.04
|
)
|
||||
Loss attributable to common stock
|
|
$
|
(607
|
)
|
|
380
|
|
|
$
|
(1.60
|
)
|
|
$
|
(4,143
|
)
|
|
378
|
|
|
$
|
(10.95
|
)
|
Effect of Dilutive Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock options and other
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss from continuing operations
|
|
$
|
(574
|
)
|
|
380
|
|
|
$
|
(1.51
|
)
|
|
$
|
(4,126
|
)
|
|
378
|
|
|
$
|
(10.91
|
)
|
Loss from discontinued operations
|
|
(33
|
)
|
|
380
|
|
|
(0.09
|
)
|
|
(17
|
)
|
|
378
|
|
|
(0.04
|
)
|
||||
Loss attributable to common stock
|
|
$
|
(607
|
)
|
|
380
|
|
|
$
|
(1.60
|
)
|
|
$
|
(4,143
|
)
|
|
378
|
|
|
$
|
(10.95
|
)
|
|
|
For the Nine Months Ended September 30,
|
||||||||||||||||||||
|
|
2016
|
|
2015
|
||||||||||||||||||
|
|
Loss
|
|
Shares
|
|
Per Share
|
|
Loss
|
|
Shares
|
|
Per Share
|
||||||||||
|
|
(In millions, except per share amounts)
|
||||||||||||||||||||
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss from continuing operations
|
|
$
|
(1,190
|
)
|
|
379
|
|
|
$
|
(3.14
|
)
|
|
$
|
(6,202
|
)
|
|
378
|
|
|
$
|
(16.42
|
)
|
Loss from discontinued operations
|
|
(33
|
)
|
|
379
|
|
|
(0.08
|
)
|
|
(135
|
)
|
|
378
|
|
|
(0.36
|
)
|
||||
Loss attributable to common stock
|
|
$
|
(1,223
|
)
|
|
379
|
|
|
$
|
(3.22
|
)
|
|
$
|
(6,337
|
)
|
|
378
|
|
|
$
|
(16.78
|
)
|
Effect of Dilutive Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock options and other
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
|
||||||
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss from continuing operations
|
|
$
|
(1,190
|
)
|
|
379
|
|
|
$
|
(3.14
|
)
|
|
$
|
(6,202
|
)
|
|
378
|
|
|
$
|
(16.42
|
)
|
Loss from discontinued operations
|
|
(33
|
)
|
|
379
|
|
|
(0.08
|
)
|
|
(135
|
)
|
|
378
|
|
|
(0.36
|
)
|
||||
Loss attributable to common stock
|
|
$
|
(1,223
|
)
|
|
379
|
|
|
$
|
(3.22
|
)
|
|
$
|
(6,337
|
)
|
|
378
|
|
|
$
|
(16.78
|
)
|
11.
|
BUSINESS SEGMENT INFORMATION
|
|
|
United
States
|
|
Canada
|
|
Egypt
(1)
|
|
North Sea
|
|
Other
International
|
|
Total
(4)
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
For the Quarter Ended September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Oil and Gas Production Revenues
|
|
$
|
524
|
|
|
$
|
87
|
|
|
$
|
581
|
|
|
$
|
247
|
|
|
$
|
—
|
|
|
$
|
1,439
|
|
Operating Income (Loss)
(2)
|
|
$
|
(17
|
)
|
|
$
|
(466
|
)
|
|
$
|
263
|
|
|
$
|
(455
|
)
|
|
$
|
(13
|
)
|
|
$
|
(688
|
)
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain on divestitures, net
|
|
|
|
|
|
|
|
|
|
|
|
5
|
|
|||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
(6
|
)
|
|||||||||||
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
(102
|
)
|
|||||||||||
Transaction, reorganization, and separation
|
|
|
|
|
|
|
|
|
|
|
|
(12
|
)
|
|||||||||||
Financing costs, net
|
|
|
|
|
|
|
|
|
|
|
|
(102
|
)
|
|||||||||||
Loss From Continuing Operations Before Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(905
|
)
|
||||||||||
For the Nine Months Ended September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Oil and Gas Production Revenues
|
|
$
|
1,453
|
|
|
$
|
243
|
|
|
$
|
1,515
|
|
|
$
|
701
|
|
|
$
|
—
|
|
|
$
|
3,912
|
|
Operating Income (Loss)
(2)
|
|
$
|
(283
|
)
|
|
$
|
(586
|
)
|
|
$
|
525
|
|
|
$
|
(557
|
)
|
|
$
|
(13
|
)
|
|
$
|
(914
|
)
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain on divestitures, net
|
|
|
|
|
|
|
|
|
|
|
|
21
|
|
|||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
(30
|
)
|
|||||||||||
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
(298
|
)
|
|||||||||||
Transaction, reorganization, and separation
|
|
|
|
|
|
|
|
|
|
|
|
(36
|
)
|
|||||||||||
Financing costs, net
|
|
|
|
|
|
|
|
|
|
|
|
(311
|
)
|
|||||||||||
Loss From Continuing Operations Before Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(1,568
|
)
|
||||||||||
Total Assets
|
|
$
|
12,299
|
|
|
$
|
1,630
|
|
|
$
|
5,320
|
|
|
$
|
3,851
|
|
|
$
|
49
|
|
|
$
|
23,149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
|
Canada
|
|
Egypt
(1)
|
|
North Sea
|
|
Other
International
|
|
Total
(4)
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
For the Quarter Ended September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Oil and Gas Production Revenues
|
|
$
|
639
|
|
|
$
|
116
|
|
|
$
|
534
|
|
|
$
|
317
|
|
|
$
|
—
|
|
|
$
|
1,606
|
|
Operating Income (Loss)
(3)
|
|
$
|
(3,582
|
)
|
|
$
|
(292
|
)
|
|
$
|
67
|
|
|
$
|
(86
|
)
|
|
$
|
(148
|
)
|
|
$
|
(4,041
|
)
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loss on divestitures, net
|
|
|
|
|
|
|
|
|
|
|
|
(5
|
)
|
|||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
(75
|
)
|
|||||||||||
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
(89
|
)
|
|||||||||||
Transaction, reorganization, and separation
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|||||||||||
Financing costs, net
|
|
|
|
|
|
|
|
|
|
|
|
(160
|
)
|
|||||||||||
Loss From Continuing Operations Before Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(4,370
|
)
|
||||||||||
For the Nine Months Ended September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Oil and Gas Production Revenues
|
|
$
|
2,066
|
|
|
$
|
387
|
|
|
$
|
1,790
|
|
|
$
|
1,013
|
|
|
$
|
—
|
|
|
$
|
5,256
|
|
Operating Income (Loss)
(3)
|
|
$
|
(5,967
|
)
|
|
$
|
(464
|
)
|
|
$
|
569
|
|
|
$
|
(160
|
)
|
|
$
|
(149
|
)
|
|
$
|
(6,171
|
)
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain on divestitures, net
|
|
|
|
|
|
|
|
|
|
|
|
204
|
|
|||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
(53
|
)
|
|||||||||||
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
(284
|
)
|
|||||||||||
Transaction, reorganization, and separation
|
|
|
|
|
|
|
|
|
|
|
|
(120
|
)
|
|||||||||||
Financing costs, net
|
|
|
|
|
|
|
|
|
|
|
|
(401
|
)
|
|||||||||||
Loss From Continuing Operations Before Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(6,825
|
)
|
||||||||||
Total Assets
|
|
$
|
15,278
|
|
|
$
|
3,627
|
|
|
$
|
7,535
|
|
|
$
|
4,359
|
|
|
$
|
440
|
|
|
$
|
31,239
|
|
(1)
|
Includes a noncontrolling interest in Egypt.
|
(2)
|
Operating Income (Loss) consists of oil and gas production revenues less lease operating expenses, gathering and transportation costs, taxes other than income, exploration costs, depreciation, depletion, and amortization, asset retirement obligation accretion, and impairments. The operating income (loss) of U.S., Canada, and North Sea includes asset impairments totaling
$47 million
,
$423 million
, and
$481 million
, respectively, for the third quarter of 2016. The operating income (loss) of U.S., Canada, and North Sea includes asset impairments totaling
$212 million
,
$433 million
, and
$586 million
, respectively, for the first nine months of 2016.
|
(3)
|
The operating income (loss) of U.S., Canada, Egypt, North Sea, and Other International includes asset impairments totaling
$3.5 billion
,
$237 million
,
$78 million
,
$105 million
, and
$148 million
, respectively, for the third quarter of 2015. The operating income (loss) of U.S., Canada, Egypt, North Sea, and Other International include asset impairments totaling
$5.9 billion
,
$291 million
,
$91 million
,
$372 million
, and
$148 million
, respectively, for the first nine months of 2015.
|
(4)
|
Amounts for 2015 have been restated to exclude Australia discontinued operations.
|
12.
|
SUPPLEMENTAL GUARANTOR INFORMATION
|
|
|
Apache
Corporation
|
|
Apache
Finance
Canada
|
|
All Other
Subsidiaries
of Apache
Corporation
|
|
Reclassifications
& Eliminations
|
|
Consolidated
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
REVENUES AND OTHER:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil and gas production revenues
|
|
$
|
274
|
|
|
$
|
—
|
|
|
$
|
1,165
|
|
|
$
|
—
|
|
|
$
|
1,439
|
|
Equity in net income (loss) of affiliates
|
|
(493
|
)
|
|
(205
|
)
|
|
—
|
|
|
698
|
|
|
—
|
|
|||||
Other
|
|
5
|
|
|
7
|
|
|
(18
|
)
|
|
—
|
|
|
(6
|
)
|
|||||
Gain (loss) on divestiture
|
|
3
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
5
|
|
|||||
|
|
(211
|
)
|
|
(198
|
)
|
|
1,149
|
|
|
698
|
|
|
1,438
|
|
|||||
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Lease operating expenses
|
|
74
|
|
|
—
|
|
|
308
|
|
|
—
|
|
|
382
|
|
|||||
Gathering and transportation
|
|
6
|
|
|
—
|
|
|
45
|
|
|
—
|
|
|
51
|
|
|||||
Taxes other than income
|
|
23
|
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
9
|
|
|||||
Exploration
|
|
58
|
|
|
—
|
|
|
103
|
|
|
—
|
|
|
161
|
|
|||||
General and administrative
|
|
87
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
102
|
|
|||||
Depreciation, depletion, and amortization
|
|
154
|
|
|
—
|
|
|
494
|
|
|
—
|
|
|
648
|
|
|||||
Asset retirement obligation accretion
|
|
5
|
|
|
—
|
|
|
35
|
|
|
—
|
|
|
40
|
|
|||||
Impairments
|
|
—
|
|
|
—
|
|
|
836
|
|
|
—
|
|
|
836
|
|
|||||
Transaction, reorganization, and separation
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|||||
Financing costs, net
|
|
63
|
|
|
6
|
|
|
33
|
|
|
—
|
|
|
102
|
|
|||||
|
|
482
|
|
|
6
|
|
|
1,855
|
|
|
—
|
|
|
2,343
|
|
|||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
|
(693
|
)
|
|
(204
|
)
|
|
(706
|
)
|
|
698
|
|
|
(905
|
)
|
|||||
Provision (benefit) for income taxes
|
|
(119
|
)
|
|
1
|
|
|
(261
|
)
|
|
—
|
|
|
(379
|
)
|
|||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST
|
|
(574
|
)
|
|
(205
|
)
|
|
(445
|
)
|
|
698
|
|
|
(526
|
)
|
|||||
Net loss from discontinued operations, net of tax
|
|
(33
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|||||
NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST
|
|
(607
|
)
|
|
(205
|
)
|
|
(445
|
)
|
|
698
|
|
|
(559
|
)
|
|||||
Net income attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|
48
|
|
|||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK
|
|
$
|
(607
|
)
|
|
$
|
(205
|
)
|
|
$
|
(493
|
)
|
|
$
|
698
|
|
|
$
|
(607
|
)
|
|
|
Apache
Corporation
|
|
Apache
Finance
Canada
|
|
All Other
Subsidiaries
of Apache
Corporation
|
|
Reclassifications
& Eliminations
|
|
Consolidated
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
REVENUES AND OTHER:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil and gas production revenues
|
|
$
|
344
|
|
|
$
|
—
|
|
|
$
|
1,262
|
|
|
$
|
—
|
|
|
$
|
1,606
|
|
Equity in net income (loss) of affiliates
|
|
(2,247
|
)
|
|
(92
|
)
|
|
—
|
|
|
2,339
|
|
|
—
|
|
|||||
Other
|
|
(62
|
)
|
|
14
|
|
|
(27
|
)
|
|
—
|
|
|
(75
|
)
|
|||||
Gain (loss) on divestiture
|
|
(7
|
)
|
|
—
|
|
|
2
|
|
|
—
|
|
|
(5
|
)
|
|||||
|
|
(1,972
|
)
|
|
(78
|
)
|
|
1,237
|
|
|
2,339
|
|
|
1,526
|
|
|||||
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Lease operating expenses
|
|
97
|
|
|
—
|
|
|
353
|
|
|
—
|
|
|
450
|
|
|||||
Gathering and transportation
|
|
9
|
|
|
—
|
|
|
49
|
|
|
—
|
|
|
58
|
|
|||||
Taxes other than income
|
|
30
|
|
|
—
|
|
|
74
|
|
|
—
|
|
|
104
|
|
|||||
Exploration
|
|
139
|
|
|
—
|
|
|
84
|
|
|
—
|
|
|
223
|
|
|||||
General and administrative
|
|
76
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
89
|
|
|||||
Depreciation, depletion, and amortization
|
|
257
|
|
|
—
|
|
|
615
|
|
|
—
|
|
|
872
|
|
|||||
Asset retirement obligation accretion
|
|
4
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
37
|
|
|||||
Impairments
|
|
2,177
|
|
|
—
|
|
|
1,726
|
|
|
—
|
|
|
3,903
|
|
|||||
Financing costs, net
|
|
160
|
|
|
10
|
|
|
(10
|
)
|
|
—
|
|
|
160
|
|
|||||
|
|
2,949
|
|
|
10
|
|
|
2,937
|
|
|
—
|
|
|
5,896
|
|
|||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
|
(4,921
|
)
|
|
(88
|
)
|
|
(1,700
|
)
|
|
2,339
|
|
|
(4,370
|
)
|
|||||
Provision (benefit) for income taxes
|
|
(785
|
)
|
|
4
|
|
|
530
|
|
|
—
|
|
|
(251
|
)
|
|||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST
|
|
(4,136
|
)
|
|
(92
|
)
|
|
(2,230
|
)
|
|
2,339
|
|
|
(4,119
|
)
|
|||||
Net income (loss) from discontinued operations, net of tax
|
|
(7
|
)
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(17
|
)
|
|||||
NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST
|
|
(4,143
|
)
|
|
(92
|
)
|
|
(2,240
|
)
|
|
2,339
|
|
|
(4,136
|
)
|
|||||
Net income attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK
|
|
$
|
(4,143
|
)
|
|
$
|
(92
|
)
|
|
$
|
(2,247
|
)
|
|
$
|
2,339
|
|
|
$
|
(4,143
|
)
|
|
Apache
Corporation
|
|
Apache
Finance
Canada
|
|
All Other
Subsidiaries
of Apache
Corporation
|
|
Reclassifications
& Eliminations
|
|
Consolidated
|
||||||||||
|
(In millions)
|
||||||||||||||||||
REVENUES AND OTHER:
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil and gas production revenues
|
$
|
761
|
|
|
$
|
—
|
|
|
$
|
3,151
|
|
|
$
|
—
|
|
|
$
|
3,912
|
|
Equity in net income (loss) of affiliates
|
(677
|
)
|
|
(225
|
)
|
|
—
|
|
|
902
|
|
|
—
|
|
|||||
Other
|
11
|
|
|
28
|
|
|
(69
|
)
|
|
—
|
|
|
(30
|
)
|
|||||
Gain (loss) on divestiture
|
1
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
21
|
|
|||||
|
96
|
|
|
(197
|
)
|
|
3,102
|
|
|
902
|
|
|
3,903
|
|
|||||
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Lease operating expenses
|
218
|
|
|
—
|
|
|
901
|
|
|
—
|
|
|
1,119
|
|
|||||
Gathering and transportation
|
25
|
|
|
—
|
|
|
130
|
|
|
—
|
|
|
155
|
|
|||||
Taxes other than income
|
66
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
85
|
|
|||||
Exploration
|
184
|
|
|
—
|
|
|
163
|
|
|
—
|
|
|
347
|
|
|||||
General and administrative
|
250
|
|
|
—
|
|
|
48
|
|
|
—
|
|
|
298
|
|
|||||
Depreciation, depletion, and amortization
|
469
|
|
|
—
|
|
|
1,526
|
|
|
—
|
|
|
1,995
|
|
|||||
Asset retirement obligation accretion
|
14
|
|
|
—
|
|
|
102
|
|
|
—
|
|
|
116
|
|
|||||
Impairments
|
61
|
|
|
—
|
|
|
948
|
|
|
—
|
|
|
1,009
|
|
|||||
Transaction, reorganization, and separation
|
36
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|||||
Financing costs, net
|
188
|
|
|
23
|
|
|
100
|
|
|
—
|
|
|
311
|
|
|||||
|
1,511
|
|
|
23
|
|
|
3,937
|
|
|
—
|
|
|
5,471
|
|
|||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
(1,415
|
)
|
|
(220
|
)
|
|
(835
|
)
|
|
902
|
|
|
(1,568
|
)
|
|||||
Provision (benefit) for income taxes
|
(225
|
)
|
|
5
|
|
|
(251
|
)
|
|
—
|
|
|
(471
|
)
|
|||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST
|
(1,190
|
)
|
|
(225
|
)
|
|
(584
|
)
|
|
902
|
|
|
(1,097
|
)
|
|||||
Net loss from discontinued operations, net of tax
|
(33
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|||||
NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST
|
(1,223
|
)
|
|
(225
|
)
|
|
(584
|
)
|
|
902
|
|
|
(1,130
|
)
|
|||||
Net income attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
93
|
|
|
—
|
|
|
93
|
|
|||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK
|
$
|
(1,223
|
)
|
|
$
|
(225
|
)
|
|
$
|
(677
|
)
|
|
$
|
902
|
|
|
$
|
(1,223
|
)
|
|
Apache
Corporation
|
|
Apache
Finance
Canada
|
|
All Other
Subsidiaries
of Apache
Corporation
|
|
Reclassifications
& Eliminations
|
|
Consolidated
|
||||||||||
|
(In millions)
|
||||||||||||||||||
REVENUES AND OTHER:
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil and gas production revenues
|
$
|
1,143
|
|
|
$
|
—
|
|
|
$
|
4,113
|
|
|
$
|
—
|
|
|
$
|
5,256
|
|
Equity in net income (loss) of affiliates
|
(3,664
|
)
|
|
(154
|
)
|
|
—
|
|
|
3,818
|
|
|
—
|
|
|||||
Other
|
(107
|
)
|
|
40
|
|
|
(5
|
)
|
|
19
|
|
|
(53
|
)
|
|||||
Gain (loss) on divestiture
|
(36
|
)
|
|
—
|
|
|
240
|
|
|
—
|
|
|
204
|
|
|||||
|
(2,664
|
)
|
|
(114
|
)
|
|
4,348
|
|
|
3,837
|
|
|
5,407
|
|
|||||
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Lease operating expenses
|
329
|
|
|
—
|
|
|
1,069
|
|
|
—
|
|
|
1,398
|
|
|||||
Gathering and transportation
|
25
|
|
|
—
|
|
|
138
|
|
|
—
|
|
|
163
|
|
|||||
Taxes other than income
|
97
|
|
|
—
|
|
|
135
|
|
|
—
|
|
|
232
|
|
|||||
Exploration
|
399
|
|
|
—
|
|
|
307
|
|
|
—
|
|
|
706
|
|
|||||
General and administrative
|
214
|
|
|
—
|
|
|
51
|
|
|
19
|
|
|
284
|
|
|||||
Depreciation, depletion, and amortization
|
751
|
|
|
—
|
|
|
1,741
|
|
|
—
|
|
|
2,492
|
|
|||||
Asset retirement obligation accretion
|
11
|
|
|
—
|
|
|
98
|
|
|
—
|
|
|
109
|
|
|||||
Impairments
|
3,543
|
|
|
—
|
|
|
2,784
|
|
|
—
|
|
|
6,327
|
|
|||||
Transaction, reorganization, and separation
|
120
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
120
|
|
|||||
Financing costs, net
|
375
|
|
|
31
|
|
|
(5
|
)
|
|
—
|
|
|
401
|
|
|||||
|
5,864
|
|
|
31
|
|
|
6,318
|
|
|
19
|
|
|
12,232
|
|
|||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
|
(8,528
|
)
|
|
(145
|
)
|
|
(1,970
|
)
|
|
3,818
|
|
|
(6,825
|
)
|
|||||
Provision (benefit) for income taxes
|
(2,370
|
)
|
|
9
|
|
|
1,640
|
|
|
—
|
|
|
(721
|
)
|
|||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST
|
(6,158
|
)
|
|
(154
|
)
|
|
(3,610
|
)
|
|
3,818
|
|
|
(6,104
|
)
|
|||||
Net income (loss) from discontinued operations, net of tax
|
(179
|
)
|
|
—
|
|
|
44
|
|
|
—
|
|
|
(135
|
)
|
|||||
NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST
|
(6,337
|
)
|
|
(154
|
)
|
|
(3,566
|
)
|
|
3,818
|
|
|
(6,239
|
)
|
|||||
Net income attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
98
|
|
|
—
|
|
|
98
|
|
|||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK
|
$
|
(6,337
|
)
|
|
$
|
(154
|
)
|
|
$
|
(3,664
|
)
|
|
$
|
3,818
|
|
|
$
|
(6,337
|
)
|
|
|
Apache
Corporation
|
|
Apache
Finance
Canada
|
|
All Other
Subsidiaries
of Apache
Corporation
|
|
Reclassifications
& Eliminations
|
|
Consolidated
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
CASH PROVIDED BY (USED IN) CONTINUING OPERATING ACTIVITIES
|
|
$
|
(135
|
)
|
|
$
|
(25
|
)
|
|
$
|
2,540
|
|
|
$
|
—
|
|
|
$
|
2,380
|
|
CASH PROVIDED BY DISCONTINUED OPERATIONS
|
|
—
|
|
|
—
|
|
|
113
|
|
|
—
|
|
|
113
|
|
|||||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
|
(135
|
)
|
|
(25
|
)
|
|
2,653
|
|
|
—
|
|
|
2,493
|
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Additions to oil and gas property
|
|
(1,320
|
)
|
|
—
|
|
|
(2,242
|
)
|
|
—
|
|
|
(3,562
|
)
|
|||||
Leasehold and property acquisitions
|
|
(243
|
)
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(254
|
)
|
|||||
Additions to gas gathering, transmission, and processing facilities
|
|
(25
|
)
|
|
—
|
|
|
(88
|
)
|
|
—
|
|
|
(113
|
)
|
|||||
Proceeds from sale Kitimat LNG
|
|
—
|
|
|
—
|
|
|
854
|
|
|
—
|
|
|
854
|
|
|||||
Proceeds from sale of other oil and gas properties
|
|
8
|
|
|
—
|
|
|
140
|
|
|
—
|
|
|
148
|
|
|||||
Investment in subsidiaries, net
|
|
274
|
|
|
—
|
|
|
—
|
|
|
(274
|
)
|
|
—
|
|
|||||
Other
|
|
(16
|
)
|
|
—
|
|
|
(83
|
)
|
|
—
|
|
|
(99
|
)
|
|||||
NET CASH USED IN CONTINUING INVESTING ACTIVITIES
|
|
(1,322
|
)
|
|
—
|
|
|
(1,430
|
)
|
|
(274
|
)
|
|
(3,026
|
)
|
|||||
NET CASH PROVIDED BY DISCONTINUED OPERATIONS
|
|
—
|
|
|
—
|
|
|
4,372
|
|
|
—
|
|
|
4,372
|
|
|||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
|
|
(1,322
|
)
|
|
—
|
|
|
2,942
|
|
|
(274
|
)
|
|
1,346
|
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial paper and bank credit facilities, net
|
|
(1,570
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,570
|
)
|
|||||
Payment of fixed-rate debt
|
|
(939
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(939
|
)
|
|||||
Intercompany borrowings
|
|
4,431
|
|
|
(10
|
)
|
|
(4,695
|
)
|
|
274
|
|
|
—
|
|
|||||
Distributions to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
(97
|
)
|
|
—
|
|
|
(97
|
)
|
|||||
Dividends paid
|
|
(283
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(283
|
)
|
|||||
Other
|
|
2
|
|
|
35
|
|
|
(11
|
)
|
|
—
|
|
|
26
|
|
|||||
NET CASH PROVIDED BY (USED IN) CONTINUING FINANCING ACTIVITIES
|
|
1,641
|
|
|
25
|
|
|
(4,803
|
)
|
|
274
|
|
|
(2,863
|
)
|
|||||
NET CASH USED IN DISCONTINUED OPERATIONS
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
|
1,641
|
|
|
25
|
|
|
(4,803
|
)
|
|
274
|
|
|
(2,863
|
)
|
|||||
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
|
184
|
|
|
—
|
|
|
792
|
|
|
—
|
|
|
976
|
|
|||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
|
|
267
|
|
|
—
|
|
|
412
|
|
|
—
|
|
|
679
|
|
|||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
|
$
|
451
|
|
|
$
|
—
|
|
|
$
|
1,204
|
|
|
$
|
—
|
|
|
$
|
1,655
|
|
ITEM 2
.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
Equivalent production decline from
third
quarter
2015
levels was
6 percent
as a result of significant reduction in capital investments in 2015 and the first
nine
months of
2016
when compared to prior-year levels.
|
•
|
Liquids production for the
third
quarter
2016
averaged
336 thousand
barrels of oil equivalent per day (Mboe/d), with crude oil representing
81 percent
of total liquids production. Liquids production decreased
5 percent
from the
third
quarter of
2015
.
|
•
|
During the third quarter, Apache announced the discovery of a new resource play, the “Alpine High.” The Alpine High acreage lies in the southern portion of the Delaware Basin, primarily in Reeves County, Texas. The Company has estimated significant hydrocarbons in place on its acreage position of approximately 320,000 contiguous net acres (at an average cost of approximately $1,300 per acre). Apache has already identified numerous drilling locations in the Barnett and Woodford formations, which are expected to deliver a combination of liquids rich gas and oil. The Company has 10 wells in the play currently producing in limited quantities because of infrastructure constraints. The Company is also exploring additional formations in this stacked play; including the oil-prone Bone Springs and Wolfcamp formations.
|
•
|
Onshore equivalent production was down 12 percent for the quarter relative to the
2015
period. The decrease in production is driven by a significant reduction in North American onshore exploration and development capital spending during 2015 and the first
nine
months of
2016
.
|
•
|
Third quarter equivalent production from the Permian Basin region, which accounts for more than half of our total onshore North American production, decreased 6 percent from the third quarter of 2015 as a result of significantly fewer wells placed on production during 2016.
|
•
|
In Egypt, we averaged 5 rigs and placed 9 wells on production during the quarter. Gross equivalent production declined 3 percent compared with the third quarter of 2015, driven by well depletion and overall reduction in activity. On a net basis, equivalent production increased
9 percent
from the third quarter of 2015 primarily as a result of tax barrel impacts as a function of our production sharing contracts.
|
•
|
North Sea average daily production decreased 15 percent for the third quarter of 2016 from the third quarter of last year primarily as a result of planned downtime and natural well decline in the Forties and Bacchus fields.
|
|
|
For the Quarter Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||||||
|
|
$
Value
|
|
%
Contribution
|
|
$
Value
|
|
%
Contribution
|
|
$
Value
|
|
%
Contribution
|
|
$
Value
|
|
%
Contribution
|
||||||||||||
|
|
($ in millions)
|
||||||||||||||||||||||||||
Total Oil Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
United States
|
|
$
|
377
|
|
|
34
|
%
|
|
$
|
492
|
|
|
40
|
%
|
|
$
|
1,099
|
|
|
36
|
%
|
|
$
|
1,629
|
|
|
39
|
%
|
Canada
|
|
47
|
|
|
4
|
%
|
|
55
|
|
|
4
|
%
|
|
132
|
|
|
4
|
%
|
|
190
|
|
|
5
|
%
|
||||
North America
|
|
424
|
|
|
38
|
%
|
|
547
|
|
|
44
|
%
|
|
1,231
|
|
|
40
|
%
|
|
1,819
|
|
|
44
|
%
|
||||
Egypt
(1)
|
|
476
|
|
|
43
|
%
|
|
426
|
|
|
35
|
%
|
|
1,209
|
|
|
40
|
%
|
|
1,444
|
|
|
35
|
%
|
||||
North Sea
|
|
217
|
|
|
19
|
%
|
|
265
|
|
|
21
|
%
|
|
617
|
|
|
20
|
%
|
|
886
|
|
|
21
|
%
|
||||
International
(1)
|
|
693
|
|
|
62
|
%
|
|
691
|
|
|
56
|
%
|
|
1,826
|
|
|
60
|
%
|
|
2,330
|
|
|
56
|
%
|
||||
Total
(1)
|
|
$
|
1,117
|
|
|
100
|
%
|
|
$
|
1,238
|
|
|
100
|
%
|
|
$
|
3,057
|
|
|
100
|
%
|
|
$
|
4,149
|
|
|
100
|
%
|
Total Natural Gas Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
United States
|
|
$
|
98
|
|
|
37
|
%
|
|
$
|
105
|
|
|
33
|
%
|
|
$
|
222
|
|
|
32
|
%
|
|
$
|
298
|
|
|
32
|
%
|
Canada
|
|
36
|
|
|
14
|
%
|
|
59
|
|
|
19
|
%
|
|
100
|
|
|
14
|
%
|
|
187
|
|
|
20
|
%
|
||||
North America
|
|
134
|
|
|
51
|
%
|
|
164
|
|
|
52
|
%
|
|
322
|
|
|
46
|
%
|
|
485
|
|
|
52
|
%
|
||||
Egypt
(1)
|
|
103
|
|
|
39
|
%
|
|
106
|
|
|
33
|
%
|
|
298
|
|
|
43
|
%
|
|
337
|
|
|
36
|
%
|
||||
North Sea
|
|
26
|
|
|
10
|
%
|
|
48
|
|
|
15
|
%
|
|
75
|
|
|
11
|
%
|
|
119
|
|
|
12
|
%
|
||||
International
(1)
|
|
129
|
|
|
49
|
%
|
|
154
|
|
|
48
|
%
|
|
373
|
|
|
54
|
%
|
|
456
|
|
|
48
|
%
|
||||
Total
(1)
|
|
$
|
263
|
|
|
100
|
%
|
|
$
|
318
|
|
|
100
|
%
|
|
$
|
695
|
|
|
100
|
%
|
|
$
|
941
|
|
|
100
|
%
|
Total Natural Gas Liquids (NGL) Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
United States
|
|
$
|
49
|
|
|
83
|
%
|
|
$
|
42
|
|
|
84
|
%
|
|
$
|
132
|
|
|
82
|
%
|
|
$
|
139
|
|
|
84
|
%
|
Canada
|
|
4
|
|
|
7
|
%
|
|
2
|
|
|
4
|
%
|
|
11
|
|
|
7
|
%
|
|
10
|
|
|
6
|
%
|
||||
North America
|
|
53
|
|
|
90
|
%
|
|
44
|
|
|
88
|
%
|
|
143
|
|
|
89
|
%
|
|
149
|
|
|
90
|
%
|
||||
Egypt
(1)
|
|
2
|
|
|
3
|
%
|
|
2
|
|
|
4
|
%
|
|
8
|
|
|
5
|
%
|
|
9
|
|
|
5
|
%
|
||||
North Sea
|
|
4
|
|
|
7
|
%
|
|
4
|
|
|
8
|
%
|
|
9
|
|
|
6
|
%
|
|
8
|
|
|
5
|
%
|
||||
International
(1)
|
|
6
|
|
|
10
|
%
|
|
6
|
|
|
12
|
%
|
|
17
|
|
|
11
|
%
|
|
17
|
|
|
10
|
%
|
||||
Total
(1)
|
|
$
|
59
|
|
|
100
|
%
|
|
$
|
50
|
|
|
100
|
%
|
|
$
|
160
|
|
|
100
|
%
|
|
$
|
166
|
|
|
100
|
%
|
Total Oil and Gas Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
United States
|
|
$
|
524
|
|
|
36
|
%
|
|
$
|
639
|
|
|
40
|
%
|
|
$
|
1,453
|
|
|
37
|
%
|
|
$
|
2,066
|
|
|
39
|
%
|
Canada
|
|
87
|
|
|
6
|
%
|
|
116
|
|
|
7
|
%
|
|
243
|
|
|
6
|
%
|
|
387
|
|
|
8
|
%
|
||||
North America
|
|
611
|
|
|
42
|
%
|
|
755
|
|
|
47
|
%
|
|
1,696
|
|
|
43
|
%
|
|
2,453
|
|
|
47
|
%
|
||||
Egypt
(1)
|
|
581
|
|
|
41
|
%
|
|
534
|
|
|
33
|
%
|
|
1,515
|
|
|
39
|
%
|
|
1,790
|
|
|
34
|
%
|
||||
North Sea
|
|
247
|
|
|
17
|
%
|
|
317
|
|
|
20
|
%
|
|
701
|
|
|
18
|
%
|
|
1,013
|
|
|
19
|
%
|
||||
International
(1)
|
|
828
|
|
|
58
|
%
|
|
851
|
|
|
53
|
%
|
|
2,216
|
|
|
57
|
%
|
|
2,803
|
|
|
53
|
%
|
||||
Total
(1)
|
|
$
|
1,439
|
|
|
100
|
%
|
|
$
|
1,606
|
|
|
100
|
%
|
|
$
|
3,912
|
|
|
100
|
%
|
|
$
|
5,256
|
|
|
100
|
%
|
Discontinued Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Oil Revenues
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
138
|
|
|
|
||||
Natural Gas Revenues
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
140
|
|
|
|
||||||||
NGL Revenues
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
||||||||
Total
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
|
|
$
|
278
|
|
|
|
(1)
|
Includes revenues attributable to a noncontrolling interest in Egypt.
|
|
|
For the Quarter Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||||
|
|
2016
|
|
Increase
(Decrease)
|
|
2015
|
|
2016
|
|
Increase
(Decrease)
|
|
2015
|
||||||
Oil Volume – b/d
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
|
98,269
|
|
|
(18
|
)%
|
|
120,412
|
|
|
106,924
|
|
|
(14
|
)%
|
|
124,894
|
|
Canada
|
|
12,619
|
|
|
(15
|
)%
|
|
14,795
|
|
|
13,331
|
|
|
(16
|
)%
|
|
15,812
|
|
North America
|
|
110,888
|
|
|
(18
|
)%
|
|
135,207
|
|
|
120,255
|
|
|
(15
|
)%
|
|
140,706
|
|
Egypt
(1)(2)
|
|
110,809
|
|
|
14
|
%
|
|
97,173
|
|
|
105,118
|
|
|
6
|
%
|
|
98,712
|
|
North Sea
|
|
49,192
|
|
|
(16
|
)%
|
|
58,330
|
|
|
55,071
|
|
|
(8
|
)%
|
|
59,622
|
|
International
|
|
160,001
|
|
|
3
|
%
|
|
155,503
|
|
|
160,189
|
|
|
1
|
%
|
|
158,334
|
|
Total
|
|
270,889
|
|
|
(7
|
)%
|
|
290,710
|
|
|
280,444
|
|
|
(6
|
)%
|
|
299,040
|
|
Natural Gas Volume – Mcf/d
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
|
395,062
|
|
|
(11
|
)%
|
|
445,239
|
|
|
404,282
|
|
|
(9
|
)%
|
|
442,650
|
|
Canada
|
|
233,635
|
|
|
(13
|
)%
|
|
270,027
|
|
|
248,912
|
|
|
(11
|
)%
|
|
280,120
|
|
North America
|
|
628,697
|
|
|
(12
|
)%
|
|
715,266
|
|
|
653,194
|
|
|
(10
|
)%
|
|
722,770
|
|
Egypt
(1)(2)
|
|
405,863
|
|
|
2
|
%
|
|
399,434
|
|
|
403,832
|
|
|
(5
|
)%
|
|
424,746
|
|
North Sea
|
|
69,509
|
|
|
(15
|
)%
|
|
81,392
|
|
|
66,884
|
|
|
6
|
%
|
|
62,848
|
|
International
|
|
475,372
|
|
|
(1
|
)%
|
|
480,826
|
|
|
470,716
|
|
|
(3
|
)%
|
|
487,594
|
|
Total
|
|
1,104,069
|
|
|
(8
|
)%
|
|
1,196,092
|
|
|
1,123,910
|
|
|
(7
|
)%
|
|
1,210,364
|
|
NGL Volume – b/d
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
|
56,355
|
|
|
3
|
%
|
|
54,951
|
|
|
55,897
|
|
|
7
|
%
|
|
52,401
|
|
Canada
|
|
6,039
|
|
|
(6
|
)%
|
|
6,440
|
|
|
5,879
|
|
|
(3
|
)%
|
|
6,041
|
|
North America
|
|
62,394
|
|
|
2
|
%
|
|
61,391
|
|
|
61,776
|
|
|
6
|
%
|
|
58,442
|
|
Egypt
(1)(2)
|
|
1,124
|
|
|
2
|
%
|
|
1,099
|
|
|
1,120
|
|
|
(4
|
)%
|
|
1,169
|
|
North Sea
|
|
1,697
|
|
|
18
|
%
|
|
1,440
|
|
|
1,557
|
|
|
48
|
%
|
|
1,053
|
|
International
|
|
2,821
|
|
|
11
|
%
|
|
2,539
|
|
|
2,677
|
|
|
20
|
%
|
|
2,222
|
|
Total
|
|
65,215
|
|
|
2
|
%
|
|
63,930
|
|
|
64,453
|
|
|
6
|
%
|
|
60,664
|
|
BOE per day
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
|
220,468
|
|
|
(12
|
)%
|
|
249,569
|
|
|
230,202
|
|
|
(8
|
)%
|
|
251,069
|
|
Canada
|
|
57,597
|
|
|
(13
|
)%
|
|
66,239
|
|
|
60,695
|
|
|
(11
|
)%
|
|
68,541
|
|
North America
|
|
278,065
|
|
|
(12
|
)%
|
|
315,808
|
|
|
290,897
|
|
|
(9
|
)%
|
|
319,610
|
|
Egypt
(2)
|
|
179,575
|
|
|
9
|
%
|
|
164,845
|
|
|
173,544
|
|
|
2
|
%
|
|
170,672
|
|
North Sea
(4)
|
|
62,475
|
|
|
(15
|
)%
|
|
73,335
|
|
|
67,775
|
|
|
(5
|
)%
|
|
71,149
|
|
International
|
|
242,050
|
|
|
2
|
%
|
|
238,180
|
|
|
241,319
|
|
|
—
|
|
|
241,821
|
|
Total
|
|
520,115
|
|
|
(6
|
)%
|
|
553,988
|
|
|
532,216
|
|
|
(5
|
)%
|
|
561,431
|
|
Discontinued Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Oil (b/d)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
10,175
|
|
||
Natural Gas (Mcf/d)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
125,831
|
|
||
NGL (b/d)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
||
BOE/d
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
31,146
|
|
(1)
|
Gross oil, natural gas, and NGL production in Egypt for the
third
quarter and
nine
-month period of
2016
and
2015
were as follows:
|
|
|
For the Quarter Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Oil (b/d)
|
|
210,755
|
|
|
214,097
|
|
|
210,939
|
|
|
205,127
|
|
Natural Gas (Mcf/d)
|
|
826,548
|
|
|
873,418
|
|
|
828,950
|
|
|
865,553
|
|
NGL (b/d)
|
|
1,853
|
|
|
2,406
|
|
|
1,918
|
|
|
2,426
|
|
(2)
|
Includes production volumes per day attributable to a noncontrolling interest in Egypt for the
third
quarter and
nine
-months period of
2016
and
2015
of:
|
|
|
For the Quarter Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Oil (b/d)
|
|
36,839
|
|
|
30,671
|
|
|
34,964
|
|
|
31,530
|
|
Natural Gas (Mcf/d)
|
|
135,233
|
|
|
125,657
|
|
|
134,591
|
|
|
127,186
|
|
NGL (b/d)
|
|
374
|
|
|
334
|
|
|
373
|
|
|
360
|
|
(3)
|
The table shows production on a barrel of oil equivalent basis (boe) in which natural gas is converted to an equivalent barrel of oil based on a 6:1 energy equivalent ratio. This ratio is not reflective of the price ratio between the two products.
|
(4)
|
Average sales volumes from the North Sea for the
third
quarter and
nine
-month period of 2016 were
65,171
boe/d and
67,222
boe/d, respectively. Sales volumes may vary from production volumes as a result of the timing of liftings in the Beryl field.
|
|
|
For the Quarter Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||||||||
|
|
2016
|
|
Increase
(Decrease) |
|
2015
|
|
2016
|
|
Increase
(Decrease) |
|
2015
|
||||||||||
Average Oil Price - Per barrel
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States
|
|
$
|
41.83
|
|
|
(6
|
)%
|
|
$
|
44.47
|
|
|
$
|
37.53
|
|
|
(21
|
)%
|
|
$
|
47.78
|
|
Canada
|
|
40.17
|
|
|
—
|
|
|
40.07
|
|
|
36.04
|
|
|
(18
|
)%
|
|
44.00
|
|
||||
North America
|
|
41.65
|
|
|
(5
|
)%
|
|
43.99
|
|
|
37.36
|
|
|
(21
|
)%
|
|
47.36
|
|
||||
Egypt
|
|
46.54
|
|
|
(2
|
)%
|
|
47.63
|
|
|
41.97
|
|
|
(22
|
)%
|
|
53.59
|
|
||||
North Sea
|
|
45.47
|
|
|
(8
|
)%
|
|
49.46
|
|
|
41.28
|
|
|
(24
|
)%
|
|
54.42
|
|
||||
International
|
|
46.20
|
|
|
(4
|
)%
|
|
48.31
|
|
|
41.74
|
|
|
(23
|
)%
|
|
53.90
|
|
||||
Total
|
|
44.35
|
|
|
(4
|
)%
|
|
46.30
|
|
|
39.86
|
|
|
(22
|
)%
|
|
50.82
|
|
||||
Average Natural Gas Price - Per Mcf
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States
|
|
$
|
2.66
|
|
|
4
|
%
|
|
$
|
2.57
|
|
|
$
|
2.00
|
|
|
(19
|
)%
|
|
$
|
2.47
|
|
Canada
|
|
1.71
|
|
|
(28
|
)%
|
|
2.39
|
|
|
1.47
|
|
|
(40
|
)%
|
|
2.44
|
|
||||
North America
|
|
2.31
|
|
|
(8
|
)%
|
|
2.50
|
|
|
1.80
|
|
|
(27
|
)%
|
|
2.46
|
|
||||
Egypt
|
|
2.75
|
|
|
(4
|
)%
|
|
2.86
|
|
|
2.69
|
|
|
(7
|
)%
|
|
2.90
|
|
||||
North Sea
|
|
4.14
|
|
|
(35
|
)%
|
|
6.41
|
|
|
4.12
|
|
|
(41
|
)%
|
|
6.95
|
|
||||
International
|
|
2.96
|
|
|
(14
|
)%
|
|
3.46
|
|
|
2.89
|
|
|
(15
|
)%
|
|
3.42
|
|
||||
Total
|
|
2.59
|
|
|
(10
|
)%
|
|
2.89
|
|
|
2.26
|
|
|
(21
|
)%
|
|
2.85
|
|
||||
Average NGL Price - Per barrel
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States
|
|
$
|
9.59
|
|
|
17
|
%
|
|
$
|
8.20
|
|
|
$
|
8.65
|
|
|
(11
|
)%
|
|
$
|
9.70
|
|
Canada
|
|
6.10
|
|
|
89
|
%
|
|
3.23
|
|
|
6.61
|
|
|
8
|
%
|
|
6.12
|
|
||||
North America
|
|
9.25
|
|
|
20
|
%
|
|
7.68
|
|
|
8.46
|
|
|
(9
|
)%
|
|
9.33
|
|
||||
Egypt
|
|
28.12
|
|
|
4
|
%
|
|
26.94
|
|
|
27.54
|
|
|
(10
|
)%
|
|
30.49
|
|
||||
North Sea
|
|
24.45
|
|
|
(5
|
)%
|
|
25.61
|
|
|
21.82
|
|
|
(18
|
)%
|
|
26.76
|
|
||||
International
|
|
25.91
|
|
|
(1
|
)%
|
|
26.18
|
|
|
24.21
|
|
|
(16
|
)%
|
|
28.72
|
|
||||
Total
|
|
9.97
|
|
|
19
|
%
|
|
8.41
|
|
|
9.11
|
|
|
(9
|
)%
|
|
10.04
|
|
||||
Discontinued Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil price ($/Bbl)
|
|
$
|
—
|
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
$
|
49.76
|
|
||
Natural Gas price ($/Mcf)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
4.07
|
|
||||||
NGL price ($/Bbl)
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
|
For the Quarter Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||||||||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||
|
|
(In millions)
|
|
(Per boe)
|
|
(In millions)
|
|
(Per boe)
|
||||||||||||||||||||||||
Lease operating expenses
(1)
|
|
$
|
382
|
|
|
$
|
450
|
|
|
$
|
7.94
|
|
|
$
|
8.84
|
|
|
$
|
1,119
|
|
|
$
|
1,398
|
|
|
$
|
7.68
|
|
|
$
|
9.12
|
|
Gathering and transportation
(1)
|
|
51
|
|
|
58
|
|
|
1.09
|
|
|
1.12
|
|
|
155
|
|
|
163
|
|
|
1.07
|
|
|
1.06
|
|
||||||||
Taxes other than income
|
|
9
|
|
|
104
|
|
|
0.19
|
|
|
2.04
|
|
|
85
|
|
|
232
|
|
|
0.58
|
|
|
1.52
|
|
||||||||
Exploration
|
|
161
|
|
|
223
|
|
|
3.36
|
|
|
4.37
|
|
|
347
|
|
|
706
|
|
|
2.38
|
|
|
4.60
|
|
||||||||
General and administrative
|
|
102
|
|
|
89
|
|
|
2.13
|
|
|
1.75
|
|
|
298
|
|
|
284
|
|
|
2.04
|
|
|
1.85
|
|
||||||||
Depreciation, depletion, and amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Oil and gas property and equipment
(1)
|
|
610
|
|
|
793
|
|
|
12.67
|
|
|
15.57
|
|
|
1,875
|
|
|
2,247
|
|
|
12.87
|
|
|
14.67
|
|
||||||||
Other assets
|
|
38
|
|
|
79
|
|
|
0.79
|
|
|
1.54
|
|
|
120
|
|
|
245
|
|
|
0.82
|
|
|
1.60
|
|
||||||||
Asset retirement obligation accretion
|
|
40
|
|
|
37
|
|
|
0.83
|
|
|
0.71
|
|
|
116
|
|
|
109
|
|
|
0.79
|
|
|
0.71
|
|
||||||||
Impairments
|
|
836
|
|
|
3,903
|
|
|
17.47
|
|
|
76.58
|
|
|
1,009
|
|
|
6,327
|
|
|
6.92
|
|
|
41.28
|
|
||||||||
Transaction, reorganization, and separation
|
|
12
|
|
|
—
|
|
|
0.25
|
|
|
0.02
|
|
|
36
|
|
|
120
|
|
|
0.24
|
|
|
0.79
|
|
||||||||
Financing costs, net
|
|
102
|
|
|
160
|
|
|
2.13
|
|
|
3.13
|
|
|
311
|
|
|
401
|
|
|
2.13
|
|
|
2.61
|
|
|
|
For the Quarter Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
(In millions)
|
||||||||||||||
Unproved leasehold impairments
|
|
$
|
114
|
|
|
$
|
199
|
|
|
$
|
222
|
|
|
$
|
515
|
|
Dry hole expense
|
|
7
|
|
|
—
|
|
|
38
|
|
|
69
|
|
||||
Geological and geophysical expense
|
|
21
|
|
|
8
|
|
|
30
|
|
|
55
|
|
||||
Exploration overhead and other
|
|
19
|
|
|
16
|
|
|
57
|
|
|
67
|
|
||||
|
|
$
|
161
|
|
|
$
|
223
|
|
|
$
|
347
|
|
|
$
|
706
|
|
|
|
For the Quarter Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
(In millions)
|
||||||||||||||
Interest expense
|
|
$
|
116
|
|
|
$
|
120
|
|
|
$
|
348
|
|
|
$
|
371
|
|
Amortization of deferred loan costs
|
|
2
|
|
|
6
|
|
|
5
|
|
|
10
|
|
||||
Capitalized interest
|
|
(13
|
)
|
|
(3
|
)
|
|
(36
|
)
|
|
(12
|
)
|
||||
Loss on extinguishment of debt
|
|
—
|
|
|
39
|
|
|
—
|
|
|
39
|
|
||||
Interest income
|
|
(3
|
)
|
|
(2
|
)
|
|
(6
|
)
|
|
(7
|
)
|
||||
Financing costs, net
|
|
$
|
102
|
|
|
$
|
160
|
|
|
$
|
311
|
|
|
$
|
401
|
|
|
|
For the Nine Months Ended September 30,
|
||||||
|
|
2016
|
|
2015
|
||||
|
|
(In millions)
|
||||||
Sources of Cash and Cash Equivalents:
|
|
|
|
|
||||
Net cash provided by continuing operating activities
|
|
$
|
1,634
|
|
|
$
|
2,380
|
|
Proceeds from asset divestitures
|
|
74
|
|
|
5,695
|
|
||
Other
|
|
38
|
|
|
—
|
|
||
|
|
1,746
|
|
|
8,075
|
|
||
Uses of Cash and Cash Equivalents:
|
|
|
|
|
||||
Capital expenditures
(1)
|
|
$
|
1,314
|
|
|
$
|
3,675
|
|
Leasehold and property acquisitions
|
|
169
|
|
|
254
|
|
||
Net cash used by Australia discontinued operations
|
|
—
|
|
|
208
|
|
||
Net commercial paper and bank loan repayments
|
|
—
|
|
|
1,570
|
|
||
Payment of fixed-rate debt
|
|
1
|
|
|
939
|
|
||
Dividends paid
|
|
284
|
|
|
283
|
|
||
Distributions to noncontrolling interest
|
|
215
|
|
|
97
|
|
||
Other
|
|
—
|
|
|
73
|
|
||
|
|
1,983
|
|
|
7,099
|
|
||
Increase (decrease) in cash and cash equivalents
|
|
$
|
(237
|
)
|
|
$
|
976
|
|
(1)
|
The table presents capital expenditures on a cash basis; therefore, the amounts may differ from those discussed elsewhere in this document, which include accruals.
|
|
|
September 30, 2016
|
|
December 31, 2015
|
||||
|
|
(In millions)
|
||||||
Cash and cash equivalents
|
|
$
|
1,230
|
|
|
$
|
1,467
|
|
Total debt
|
|
8,722
|
|
|
8,717
|
|
||
Equity
|
|
7,949
|
|
|
9,490
|
|
||
Available committed borrowing capacity
|
|
3,500
|
|
|
3,500
|
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
ITEM 5.
|
OTHER INFORMATION
|
ITEM 6.
|
EXHIBITS
|
3.1
|
–
|
Restated Certificate of Incorporation of Registrant, dated September 19, 2013, as filed with the Secretary of State of Delaware on September 19, 2013 (incorporated by reference to Exhibit 3.2 to Registrant’s Current Report on Form 8-K filed September 20, 2013, SEC File No. 001-4300).
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3.2
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–
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Certificate of Amendment of Restated Certificate of Incorporation of Registrant, dated May 14, 2015, as filed with the Secretary of State of Delaware on May 14, 2015 (incorporated by reference to Exhibit 3.2 to Registrant’s Current Report on Form 8-K filed May 20, 2015, SEC File No. 001-4300).
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3.3
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–
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Bylaws of Registrant, as amended February 3, 2016 (incorporated by reference to Exhibit 3.1 to Registrant’s Current Report on Form 8-K filed February 9, 2016, SEC File No. 001-4300).
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*10.1
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–
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Form of Restricted Stock Unit Award Agreement dated September 14, 2016.
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*31.1
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–
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Certification (pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act) by Principal Executive Officer.
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*31.2
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–
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Certification (pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act) by Principal Financial Officer.
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*32.1
|
–
|
Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Principal Executive Officer and Principal Financial Officer.
|
*101.INS
|
–
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XBRL Instance Document.
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*101.SCH
|
–
|
XBRL Taxonomy Schema Document.
|
*101.CAL
|
–
|
XBRL Calculation Linkbase Document.
|
*101.DEF
|
–
|
XBRL Definition Linkbase Document.
|
*101.LAB
|
–
|
XBRL Label Linkbase Document.
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*101.PRE
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–
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XBRL Presentation Linkbase Document.
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*
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Filed herewith
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APACHE CORPORATION
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Dated:
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November 3, 2016
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/s/ STEPHEN J. RINEY
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Stephen J. Riney
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Executive Vice President and Chief Financial Officer
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(Principal Financial Officer)
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Dated:
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November 3, 2016
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/s/ REBECCA A. HOYT
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Rebecca A. Hoyt
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Senior Vice President, Chief Accounting Officer, and Controller
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(Principal Accounting Officer)
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Notice:
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A summary of the terms of your grant of Restricted Stock Units (“RSUs”) is set out in this notice (the “Grant Notice”) but subject always to the terms of the Apache Corporation 2016 Omnibus Compensation Plan (the “Plan”) and the Restricted Stock Unit Award Agreement (the “Agreement”). In the event of any inconsistency between the terms of this Grant Notice, the terms of the Plan and the Agreement, the terms of the Plan and the Agreement shall prevail.
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Type of Award:
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Restricted Stock Unit(s)
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Restricted Stock Unit:
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A Restricted Stock Unit (“RSU”) as defined in the Plan and meaning the right granted to the Recipient to receive one share of Stock for each RSU at the end of the specified Vesting Period.
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Stock:
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The $0.625 par value common stock of the Company or as otherwise defined in the Plan.
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Grant:
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A Grant related to ________ Restricted Stock Units
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Conditions:
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The Recipient may elect, at the time of the grant, to have his or her RSUs deferred into the Deferred Delivery Plan (the "DDP") when the RSUs vest, in which case the Recipient will receive the value of
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Vesting Period:
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RSUs granted shall vest (i.e., restrictions shall lapse) in accordance with the following schedule (the "Vesting Period"), provided that the Recipient remains employed as an Eligible Person as of such vesting date:
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Withholding:
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The Company and the Recipient will comply with all federal and state laws and regulations respecting the required withholding, deposit, and payment of any income, employment, or other taxes relating to the Grant.
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Acceptance:
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Please complete the on-line grant acceptance as promptly as possible to accept or reject your Grant. You can access this through your account at netbenefits.fidelity.com. By accepting your Grant, you will have agreed to the terms and conditions set forth in the Agreement, including, but not limited to, the non-compete and non-disparagement provisions set forth in sections 5 and 6 of the Agreement, and the terms and conditions of the Plan. If you do not accept your Grant you will be unable to receive your RSUs.
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(a)
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There is a material diminution in the Recipient’s base compensation, compared to his rate of base compensation on the date of the 409A Change of Control.
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(b)
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There is a material diminution in the Recipient’s authority, duties or responsibilities.
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(c)
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There is a material diminution in the authority, duties or responsibilities of the Recipient’s supervisor, such as a requirement that the Recipient (or his supervisor) report to a corporate officer or employee instead of reporting directly to the board of directors.
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(d)
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There is a material diminution in the budget over which the Recipient retains authority.
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(e)
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There is a material change in the geographic location at which the Recipient must perform his service, including, for example the assignment of the Recipient to a regular workplace that is more than 50 miles from his regular workplace on the date of the 409A Change of Control.
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1.
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I have reviewed this quarterly report on Form 10-Q of Apache Corporation;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/ John J. Christmann IV
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John J. Christmann IV
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Chief Executive Officer and President
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(principal executive officer)
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1.
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I have reviewed this quarterly report on Form 10-Q of Apache Corporation;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
|
(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/ Stephen J. Riney
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Stephen J. Riney
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Executive Vice President and Chief Financial Officer
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(principal financial officer)
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/s/ John J. Christmann IV
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||
By:
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John J. Christmann IV
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Title:
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Chief Executive Officer and President
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(principal executive officer)
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/s/ Stephen J. Riney
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||
By:
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Stephen J. Riney
|
|
Title:
|
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Executive Vice President and Chief Financial Officer
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|
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(principal financial officer)
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