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
|
|
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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Emerging growth company
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¨
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Number of shares of registrant’s common stock outstanding as of July 31, 2017
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380,934,131
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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, natural gas liquids (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 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 integration of acquisitions;
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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, 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 most recently filed Annual Report on Form 10-K, other risks and uncertainties in our
second
-quarter
2017
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 June 30,
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For the Six Months Ended June 30,
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||||||||||||
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2017
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2016
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2017
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2016
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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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|
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||||||||
Oil revenues
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$
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1,050
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|
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$
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1,118
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|
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$
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2,222
|
|
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$
|
1,940
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Gas revenues
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233
|
|
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209
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|
|
488
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|
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432
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||||
Natural gas liquids revenues
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63
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|
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59
|
|
|
148
|
|
|
101
|
|
||||
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1,346
|
|
|
1,386
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|
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2,858
|
|
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2,473
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||||
Other
|
|
59
|
|
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(21
|
)
|
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84
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|
|
(24
|
)
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||||
Gain (loss) on divestitures
|
|
(21
|
)
|
|
17
|
|
|
320
|
|
|
16
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|
||||
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|
1,384
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1,382
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3,262
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|
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2,465
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||||
OPERATING EXPENSES:
|
|
|
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|
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||||||||
Lease operating expenses
|
|
372
|
|
|
359
|
|
|
708
|
|
|
737
|
|
||||
Gathering and transportation
|
|
48
|
|
|
52
|
|
|
105
|
|
|
104
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|
||||
Taxes other than income
|
|
29
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|
|
65
|
|
|
71
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|
|
76
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||||
Exploration
|
|
108
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|
|
91
|
|
|
200
|
|
|
186
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|
||||
General and administrative
|
|
106
|
|
|
103
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|
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209
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|
|
196
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||||
Transaction, reorganization, and separation
|
|
4
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|
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9
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|
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(6
|
)
|
|
24
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|
||||
Depreciation, depletion, and amortization:
|
|
|
|
|
|
|
|
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||||||||
Oil and gas property and equipment
|
|
536
|
|
|
629
|
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1,074
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1,265
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||||
Other assets
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36
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|
|
40
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|
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74
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82
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||||
Asset retirement obligation accretion
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37
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|
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38
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73
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76
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||||
Impairments
|
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—
|
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173
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8
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173
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||||
Financing costs, net
|
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99
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104
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|
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199
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|
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209
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||||
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1,375
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1,663
|
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2,715
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|
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3,128
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|
||||
NET INCOME (LOSS) BEFORE INCOME TAXES
|
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9
|
|
|
(281
|
)
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547
|
|
|
(663
|
)
|
||||
Current income tax provision
|
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126
|
|
|
144
|
|
|
314
|
|
|
134
|
|
||||
Deferred income tax benefit
|
|
(730
|
)
|
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(225
|
)
|
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(647
|
)
|
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(226
|
)
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||||
NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST
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613
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(200
|
)
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880
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(571
|
)
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||||
Net income attributable to noncontrolling interest
|
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41
|
|
|
44
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|
|
95
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|
|
45
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||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK
|
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$
|
572
|
|
|
$
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(244
|
)
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$
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785
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|
$
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(616
|
)
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||||||||
NET INCOME (LOSS) PER COMMON SHARE:
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||||||||
Basic
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$
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1.50
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$
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(0.65
|
)
|
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$
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2.06
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|
$
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(1.63
|
)
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Diluted
|
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$
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1.50
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|
$
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(0.65
|
)
|
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$
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2.05
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$
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(1.63
|
)
|
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
|
|
|
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|
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||||||||
Basic
|
|
381
|
|
|
379
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|
|
380
|
|
|
379
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|
||||
Diluted
|
|
383
|
|
|
379
|
|
|
383
|
|
|
379
|
|
||||
DIVIDENDS DECLARED PER COMMON SHARE
|
|
$
|
0.25
|
|
|
$
|
0.25
|
|
|
$
|
0.50
|
|
|
$
|
0.50
|
|
|
|
For the Six Months Ended June 30,
|
||||||
|
|
2017
|
|
2016
|
||||
|
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(In millions)
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
||||
Net income (loss) including noncontrolling interest
|
|
$
|
880
|
|
|
$
|
(571
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
||||
Gain on divestitures
|
|
(320
|
)
|
|
(16
|
)
|
||
Exploratory dry hole expense and unproved leasehold impairments
|
|
152
|
|
|
139
|
|
||
Depreciation, depletion, and amortization
|
|
1,148
|
|
|
1,347
|
|
||
Asset retirement obligation accretion
|
|
73
|
|
|
76
|
|
||
Impairments
|
|
8
|
|
|
173
|
|
||
Deferred income tax benefit
|
|
(647
|
)
|
|
(226
|
)
|
||
Other
|
|
39
|
|
|
91
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
||||
Receivables
|
|
62
|
|
|
237
|
|
||
Inventories
|
|
20
|
|
|
1
|
|
||
Drilling advances
|
|
(20
|
)
|
|
(30
|
)
|
||
Deferred charges and other
|
|
(90
|
)
|
|
(65
|
)
|
||
Accounts payable
|
|
(37
|
)
|
|
(118
|
)
|
||
Accrued expenses
|
|
(86
|
)
|
|
(57
|
)
|
||
Deferred credits and noncurrent liabilities
|
|
24
|
|
|
2
|
|
||
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
|
1,206
|
|
|
983
|
|
||
|
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
||||
Additions to oil and gas property
|
|
(883
|
)
|
|
(925
|
)
|
||
Leasehold and property acquisitions
|
|
(67
|
)
|
|
(118
|
)
|
||
Additions to gas gathering, transmission, and processing facilities
|
|
(274
|
)
|
|
—
|
|
||
Proceeds from sale of Midale and House Mountain
|
|
228
|
|
|
—
|
|
||
Proceeds from sale of oil and gas properties
|
|
483
|
|
|
48
|
|
||
Other, net
|
|
(16
|
)
|
|
29
|
|
||
NET CASH USED IN INVESTING ACTIVITIES
|
|
(529
|
)
|
|
(966
|
)
|
||
|
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
||||
Payments on fixed-rate debt
|
|
(70
|
)
|
|
—
|
|
||
Distributions to noncontrolling interest
|
|
(170
|
)
|
|
(93
|
)
|
||
Dividends paid
|
|
(190
|
)
|
|
(189
|
)
|
||
Other
|
|
43
|
|
|
(1
|
)
|
||
NET CASH USED IN FINANCING ACTIVITIES
|
|
(387
|
)
|
|
(283
|
)
|
||
|
|
|
|
|
||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
290
|
|
|
(266
|
)
|
||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
|
|
1,377
|
|
|
1,467
|
|
||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
|
$
|
1,667
|
|
|
$
|
1,201
|
|
|
|
|
|
|
||||
SUPPLEMENTARY CASH FLOW DATA:
|
|
|
|
|
||||
Interest paid, net of capitalized interest
|
|
$
|
202
|
|
|
$
|
206
|
|
Income taxes paid, net of refunds
|
|
163
|
|
|
201
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
|
|
(In millions)
|
||||||
ASSETS
|
|
|
|
|
||||
CURRENT ASSETS:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
1,667
|
|
|
$
|
1,377
|
|
Receivables, net of allowance
|
|
1,015
|
|
|
1,128
|
|
||
Inventories
|
|
416
|
|
|
476
|
|
||
Drilling advances
|
|
99
|
|
|
81
|
|
||
Assets held for sale
|
|
1,231
|
|
|
—
|
|
||
Prepaid assets and other
|
|
219
|
|
|
179
|
|
||
|
|
4,647
|
|
|
3,241
|
|
||
PROPERTY AND EQUIPMENT:
|
|
|
|
|
||||
Oil and gas, on the basis of successful efforts accounting:
|
|
|
|
|
||||
Proved properties
|
|
38,118
|
|
|
42,693
|
|
||
Unproved properties and properties under development
|
|
1,796
|
|
|
1,969
|
|
||
Gathering, transmission and processing facilities
|
|
1,254
|
|
|
976
|
|
||
Other
|
|
998
|
|
|
1,111
|
|
||
|
|
42,166
|
|
|
46,749
|
|
||
Less: Accumulated depreciation, depletion, and amortization
|
|
(24,615
|
)
|
|
(27,882
|
)
|
||
|
|
17,551
|
|
|
18,867
|
|
||
OTHER ASSETS:
|
|
|
|
|
||||
Deferred charges and other
|
|
404
|
|
|
411
|
|
||
|
|
$
|
22,602
|
|
|
$
|
22,519
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
||||
CURRENT LIABILITIES:
|
|
|
|
|
||||
Accounts payable
|
|
$
|
533
|
|
|
$
|
585
|
|
Liabilities held for sale
|
|
939
|
|
|
—
|
|
||
Other current liabilities (Note 5)
|
|
1,401
|
|
|
1,258
|
|
||
|
|
2,873
|
|
|
1,843
|
|
||
LONG-TERM DEBT
|
|
8,329
|
|
|
8,544
|
|
||
DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES:
|
|
|
|
|
||||
Income taxes
|
|
1,058
|
|
|
1,710
|
|
||
Asset retirement obligation
|
|
1,811
|
|
|
2,432
|
|
||
Other
|
|
266
|
|
|
311
|
|
||
|
|
3,135
|
|
|
4,453
|
|
||
COMMITMENTS AND CONTINGENCIES (Note 9)
|
|
|
|
|
||||
EQUITY:
|
|
|
|
|
||||
Common stock, $0.625 par, 860,000,000 shares authorized, 414,099,033 and 412,612,102 shares issued, respectively
|
|
259
|
|
|
258
|
|
||
Paid-in capital
|
|
12,246
|
|
|
12,364
|
|
||
Accumulated deficit
|
|
(2,607
|
)
|
|
(3,385
|
)
|
||
Treasury stock, at cost, 33,171,015 and 33,172,426 shares, respectively
|
|
(2,887
|
)
|
|
(2,887
|
)
|
||
Accumulated other comprehensive loss
|
|
(112
|
)
|
|
(112
|
)
|
||
APACHE SHAREHOLDERS’ EQUITY
|
|
6,899
|
|
|
6,238
|
|
||
Noncontrolling interest
|
|
1,366
|
|
|
1,441
|
|
||
TOTAL EQUITY
|
|
8,265
|
|
|
7,679
|
|
||
|
|
$
|
22,602
|
|
|
$
|
22,519
|
|
|
|
Common
Stock
|
|
Paid-In
Capital
|
|
Accumulated Deficit
|
|
Treasury
Stock
|
|
Accumulated
Other
Comprehensive
Loss
|
|
APACHE
SHAREHOLDERS’
EQUITY
|
|
Noncontrolling
Interest
|
|
TOTAL
EQUITY
|
||||||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2015
|
|
$
|
257
|
|
|
$
|
12,619
|
|
|
$
|
(1,980
|
)
|
|
$
|
(2,889
|
)
|
|
$
|
(119
|
)
|
|
$
|
7,888
|
|
|
$
|
1,602
|
|
|
$
|
9,490
|
|
Net income (loss)
|
|
—
|
|
|
—
|
|
|
(616
|
)
|
|
—
|
|
|
—
|
|
|
(616
|
)
|
|
45
|
|
|
(571
|
)
|
||||||||
Distributions to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(93
|
)
|
|
(93
|
)
|
||||||||
Common dividends ($0.50 per share)
|
|
—
|
|
|
(189
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(189
|
)
|
|
—
|
|
|
(189
|
)
|
||||||||
Other
|
|
1
|
|
|
57
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
59
|
|
|
—
|
|
|
59
|
|
||||||||
BALANCE AT JUNE 30, 2016
|
|
$
|
258
|
|
|
$
|
12,487
|
|
|
$
|
(2,596
|
)
|
|
$
|
(2,888
|
)
|
|
$
|
(119
|
)
|
|
$
|
7,142
|
|
|
$
|
1,554
|
|
|
$
|
8,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
BALANCE AT DECEMBER 31, 2016
|
|
$
|
258
|
|
|
$
|
12,364
|
|
|
$
|
(3,385
|
)
|
|
$
|
(2,887
|
)
|
|
$
|
(112
|
)
|
|
$
|
6,238
|
|
|
$
|
1,441
|
|
|
$
|
7,679
|
|
Net income
|
|
—
|
|
|
—
|
|
|
785
|
|
|
—
|
|
|
—
|
|
|
785
|
|
|
95
|
|
|
880
|
|
||||||||
Distributions to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(170
|
)
|
|
(170
|
)
|
||||||||
Common dividends ($0.50 per share)
|
|
—
|
|
|
(190
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(190
|
)
|
|
—
|
|
|
(190
|
)
|
||||||||
Other
|
|
1
|
|
|
72
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
66
|
|
|
—
|
|
|
66
|
|
||||||||
BALANCE AT JUNE 30, 2017
|
|
$
|
259
|
|
|
$
|
12,246
|
|
|
$
|
(2,607
|
)
|
|
$
|
(2,887
|
)
|
|
$
|
(112
|
)
|
|
$
|
6,899
|
|
|
$
|
1,366
|
|
|
$
|
8,265
|
|
1.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
(In millions)
|
||||||||||||||
Oil and Gas Property:
|
|
|
|
|
|
|
|
|
||||||||
Proved
|
|
$
|
—
|
|
|
$
|
68
|
|
|
$
|
—
|
|
|
$
|
68
|
|
Unproved
|
|
39
|
|
|
66
|
|
|
54
|
|
|
108
|
|
2.
|
ACQUISITIONS AND DIVESTITURES
|
|
|
|
|
Put Options
(1)
|
||
Production Period
|
|
Settlement Index
|
|
Mbbls
|
|
Weighted Average Strike Price
|
July - December 2017
|
|
NYMEX WTI
|
|
16,928
|
|
$50.00
|
July - December 2017
|
|
Dated Brent
|
|
15,272
|
|
$51.00
|
|
|
Fixed-Price Swaps
|
||
Production Period
|
|
MMBtu
(in 000’s)
|
|
Weighted Average Fixed Price
(1)(2)
|
July - December 2017
|
|
4,370
|
|
$3.46
|
January - March 2018
|
|
2,700
|
|
$3.60
|
(1)
|
U.S. natural gas prices represent a weighted-average of several contracts entered into on a per-million British thermal units (MMBtu) basis and are settled primarily against NYMEX Henry Hub.
|
(2)
|
Subsequent to June 30, 2017, Apache entered into fixed-price natural gas contracts settling against Nymex Henry Hub totaling
20,000
MMBtu/d at a weighted average price of
$3.13
for the fourth quarter of 2017 and
120,000
MMBtu/d at a weighted average price of
$3.33
for the first quarter of 2018.
|
5.
|
OTHER CURRENT LIABILITIES
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
|
|
(In millions)
|
||||||
Accrued operating expenses
|
|
$
|
76
|
|
|
$
|
110
|
|
Accrued exploration and development
|
|
608
|
|
|
463
|
|
||
Accrued compensation and benefits
|
|
76
|
|
|
201
|
|
||
Accrued interest
|
|
146
|
|
|
145
|
|
||
Accrued income taxes
|
|
77
|
|
|
22
|
|
||
Current debt
|
|
150
|
|
|
—
|
|
||
Current asset retirement obligation
|
|
35
|
|
|
66
|
|
||
Refundable deposits
|
|
142
|
|
|
174
|
|
||
Other
|
|
91
|
|
|
77
|
|
||
Total other current liabilities
|
|
$
|
1,401
|
|
|
$
|
1,258
|
|
6.
|
ASSET RETIREMENT OBLIGATION
|
|
|
(In millions)
|
||
Asset retirement obligation at December 31, 2016
|
|
$
|
2,498
|
|
Liabilities incurred
|
|
38
|
|
|
Liabilities divested
|
|
(29
|
)
|
|
Liabilities settled
|
|
(21
|
)
|
|
Accretion expense
|
|
73
|
|
|
Revisions in estimated liabilities
|
|
66
|
|
|
Liabilities held for sale
|
|
(779
|
)
|
|
Asset retirement obligation at June 30, 2017
|
|
1,846
|
|
|
Less current portion
|
|
35
|
|
|
Asset retirement obligation, long-term
|
|
$
|
1,811
|
|
7.
|
INCOME TAXES
|
8.
|
DEBT AND FINANCING COSTS
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
||||||||
|
|
(In millions)
|
||||||||||||||
Commercial paper and committed bank facilities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Notes and debentures
|
|
8,479
|
|
|
9,094
|
|
|
8,544
|
|
|
9,183
|
|
||||
Total Debt
|
|
$
|
8,479
|
|
|
$
|
9,094
|
|
|
$
|
8,544
|
|
|
$
|
9,183
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
|
|
(In millions)
|
||||||
Debt before unamortized discount and debt issuance costs
|
|
$
|
8,580
|
|
|
$
|
8,650
|
|
Unamortized discount
|
|
(49
|
)
|
|
(50
|
)
|
||
Debt issuance costs
|
|
(52
|
)
|
|
(56
|
)
|
||
Total debt
|
|
8,479
|
|
|
8,544
|
|
||
Current maturities
|
|
(150
|
)
|
|
—
|
|
||
Long-term debt
|
|
$
|
8,329
|
|
|
$
|
8,544
|
|
|
|
For the Quarter Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
(In millions)
|
||||||||||||||
Interest expense
|
|
$
|
115
|
|
|
$
|
116
|
|
|
$
|
231
|
|
|
$
|
232
|
|
Amortization of deferred loan costs
|
|
2
|
|
|
2
|
|
|
4
|
|
|
3
|
|
||||
Capitalized interest
|
|
(13
|
)
|
|
(12
|
)
|
|
(27
|
)
|
|
(23
|
)
|
||||
Loss on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Interest income
|
|
(5
|
)
|
|
(2
|
)
|
|
(10
|
)
|
|
(3
|
)
|
||||
Financing costs, net
|
|
$
|
99
|
|
|
$
|
104
|
|
|
$
|
199
|
|
|
$
|
209
|
|
9.
|
COMMITMENTS AND CONTINGENCIES
|
10.
|
CAPITAL STOCK
|
|
|
For the Quarter Ended June 30,
|
||||||||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||||||||
|
|
Income
|
|
Shares
|
|
Per Share
|
|
Loss
|
|
Shares
|
|
Per Share
|
||||||||||
|
|
(In millions, except per share amounts)
|
||||||||||||||||||||
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) attributable to common stock
|
|
$
|
572
|
|
|
381
|
|
|
$
|
1.50
|
|
|
$
|
(244
|
)
|
|
379
|
|
|
$
|
(0.65
|
)
|
Effect of Dilutive Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock options and other
|
|
$
|
—
|
|
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) attributable to common stock
|
|
$
|
572
|
|
|
383
|
|
|
$
|
1.50
|
|
|
$
|
(244
|
)
|
|
379
|
|
|
$
|
(0.65
|
)
|
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||||||||
|
|
Income
|
|
Shares
|
|
Per Share
|
|
Loss
|
|
Shares
|
|
Per Share
|
||||||||||
|
|
(In millions, except per share amounts)
|
||||||||||||||||||||
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) attributable to common stock
|
|
$
|
785
|
|
|
380
|
|
|
$
|
2.06
|
|
|
$
|
(616
|
)
|
|
379
|
|
|
$
|
(1.63
|
)
|
Effect of Dilutive Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock options and other
|
|
$
|
—
|
|
|
3
|
|
|
$
|
(0.01
|
)
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) attributable to common stock
|
|
$
|
785
|
|
|
383
|
|
|
$
|
2.05
|
|
|
$
|
(616
|
)
|
|
379
|
|
|
$
|
(1.63
|
)
|
11.
|
BUSINESS SEGMENT INFORMATION
|
|
|
United
States
|
|
Canada
|
|
Egypt
(1)
|
|
North Sea
|
|
Other
International
|
|
Total
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
For the Quarter Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Oil and Gas Production Revenues
|
|
$
|
491
|
|
|
$
|
93
|
|
|
$
|
521
|
|
|
$
|
241
|
|
|
$
|
—
|
|
|
$
|
1,346
|
|
Operating Income (Loss)
(2)
|
|
$
|
(17
|
)
|
|
$
|
(18
|
)
|
|
$
|
213
|
|
|
$
|
4
|
|
|
$
|
(2
|
)
|
|
$
|
180
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loss on divestitures, net
|
|
|
|
|
|
|
|
|
|
|
|
(21
|
)
|
|||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
59
|
|
|||||||||||
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
(106
|
)
|
|||||||||||
Transaction, reorganization, and separation
|
|
|
|
|
|
|
|
|
|
|
|
(4
|
)
|
|||||||||||
Financing costs, net
|
|
|
|
|
|
|
|
|
|
|
|
(99
|
)
|
|||||||||||
Income Before Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
$
|
9
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
For the Six Months Ended June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Oil and Gas Production Revenues
|
|
$
|
1,043
|
|
|
$
|
195
|
|
|
$
|
1,112
|
|
|
$
|
508
|
|
|
$
|
—
|
|
|
$
|
2,858
|
|
Operating Income (Loss)
(2)
|
|
$
|
43
|
|
|
$
|
(31
|
)
|
|
$
|
514
|
|
|
$
|
42
|
|
|
$
|
(23
|
)
|
|
$
|
545
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain on divestitures, net
|
|
|
|
|
|
|
|
|
|
|
|
320
|
|
|||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
84
|
|
|||||||||||
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
(209
|
)
|
|||||||||||
Transaction, reorganization, and separation
|
|
|
|
|
|
|
|
|
|
|
|
6
|
|
|||||||||||
Financing costs, net
|
|
|
|
|
|
|
|
|
|
|
|
(199
|
)
|
|||||||||||
Income Before Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
$
|
547
|
|
||||||||||
Total Assets
|
|
$
|
12,530
|
|
|
$
|
1,476
|
|
|
$
|
4,778
|
|
|
$
|
3,772
|
|
|
$
|
46
|
|
|
$
|
22,602
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
|
Canada
|
|
Egypt
(1)
|
|
North Sea
|
|
Other
International
|
|
Total
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
For the Quarter Ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Oil and Gas Production Revenues
|
|
$
|
520
|
|
|
$
|
73
|
|
|
$
|
542
|
|
|
$
|
251
|
|
|
$
|
—
|
|
|
$
|
1,386
|
|
Operating Income (Loss)
(3)
|
|
$
|
(109
|
)
|
|
$
|
(57
|
)
|
|
$
|
220
|
|
|
$
|
(115
|
)
|
|
$
|
—
|
|
|
$
|
(61
|
)
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain on divestitures, net
|
|
|
|
|
|
|
|
|
|
|
|
17
|
|
|||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
(21
|
)
|
|||||||||||
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
(103
|
)
|
|||||||||||
Transaction, reorganization, and separation
|
|
|
|
|
|
|
|
|
|
|
|
(9
|
)
|
|||||||||||
Financing costs, net
|
|
|
|
|
|
|
|
|
|
|
|
(104
|
)
|
|||||||||||
Loss Before Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(281
|
)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
For the Six Months Ended June 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Oil and Gas Production Revenues
|
|
$
|
929
|
|
|
$
|
156
|
|
|
$
|
934
|
|
|
$
|
454
|
|
|
$
|
—
|
|
|
$
|
2,473
|
|
Operating Income (Loss)
(3)
|
|
$
|
(267
|
)
|
|
$
|
(118
|
)
|
|
$
|
261
|
|
|
$
|
(101
|
)
|
|
$
|
(1
|
)
|
|
$
|
(226
|
)
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain on divestitures, net
|
|
|
|
|
|
|
|
|
|
|
|
16
|
|
|||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
(24
|
)
|
|||||||||||
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
(196
|
)
|
|||||||||||
Transaction, reorganization, and separation
|
|
|
|
|
|
|
|
|
|
|
|
(24
|
)
|
|||||||||||
Financing costs, net
|
|
|
|
|
|
|
|
|
|
|
|
(209
|
)
|
|||||||||||
Loss Before Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(663
|
)
|
||||||||||
Total Assets
|
|
$
|
12,383
|
|
|
$
|
2,070
|
|
|
$
|
5,520
|
|
|
$
|
4,326
|
|
|
$
|
47
|
|
|
$
|
24,346
|
|
(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. and Canada includes leasehold impairments totaling
$38 million
and
$1 million
, respectively, for the
second
quarter of
2017
. The operating income (loss) of U.S., Canada, and North Sea includes leasehold and other asset impairments totaling
$52 million
,
$2 million
, and
$8 million
, respectively, for the first
six
months of
2017
.
|
(3)
|
The operating income (loss) of U.S., Canada, and North Sea includes leasehold, property, and other asset impairments totaling
$125 million
,
$9 million
, and
$105 million
, respectively, for the
second
quarter of
2016
. The operating income (loss) of U.S., Canada, and North Sea includes leasehold, property, and other asset impairments totaling
$166 million
,
$10 million
, and
$105 million
, respectively, for the first
six
months of
2016
.
|
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
|
|
$
|
248
|
|
|
$
|
—
|
|
|
$
|
1,098
|
|
|
$
|
—
|
|
|
$
|
1,346
|
|
Equity in net income (loss) of affiliates
|
|
(34
|
)
|
|
(26
|
)
|
|
—
|
|
|
60
|
|
|
—
|
|
|||||
Other
|
|
62
|
|
|
8
|
|
|
(11
|
)
|
|
—
|
|
|
59
|
|
|||||
Gain (loss) on divestiture
|
|
34
|
|
|
—
|
|
|
(55
|
)
|
|
—
|
|
|
(21
|
)
|
|||||
|
|
310
|
|
|
(18
|
)
|
|
1,032
|
|
|
60
|
|
|
1,384
|
|
|||||
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Lease operating expenses
|
|
79
|
|
|
—
|
|
|
293
|
|
|
—
|
|
|
372
|
|
|||||
Gathering and transportation
|
|
7
|
|
|
—
|
|
|
41
|
|
|
—
|
|
|
48
|
|
|||||
Taxes other than income
|
|
24
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
29
|
|
|||||
Exploration
|
|
54
|
|
|
—
|
|
|
54
|
|
|
—
|
|
|
108
|
|
|||||
General and administrative
|
|
91
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
106
|
|
|||||
Transaction, reorganization, and separation
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
Depreciation, depletion, and amortization
|
|
130
|
|
|
—
|
|
|
442
|
|
|
—
|
|
|
572
|
|
|||||
Asset retirement obligation accretion
|
|
5
|
|
|
—
|
|
|
32
|
|
|
—
|
|
|
37
|
|
|||||
Financing costs, net
|
|
60
|
|
|
6
|
|
|
33
|
|
|
—
|
|
|
99
|
|
|||||
|
|
454
|
|
|
6
|
|
|
915
|
|
|
—
|
|
|
1,375
|
|
|||||
NET INCOME (LOSS) BEFORE INCOME TAXES
|
|
(144
|
)
|
|
(24
|
)
|
|
117
|
|
|
60
|
|
|
9
|
|
|||||
Provision (benefit) for income taxes
|
|
(716
|
)
|
|
2
|
|
|
110
|
|
|
—
|
|
|
(604
|
)
|
|||||
NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST
|
|
572
|
|
|
(26
|
)
|
|
7
|
|
|
60
|
|
|
613
|
|
|||||
Net income attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
41
|
|
|
—
|
|
|
41
|
|
|||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK
|
|
$
|
572
|
|
|
$
|
(26
|
)
|
|
$
|
(34
|
)
|
|
$
|
60
|
|
|
$
|
572
|
|
|
|
Apache
Corporation
|
|
Apache
Finance
Canada
|
|
All Other
Subsidiaries
of Apache
Corporation
|
|
Reclassifications
& Eliminations
|
|
Consolidated
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
REVENUES AND OTHER:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil and gas production revenues
|
|
$
|
270
|
|
|
$
|
—
|
|
|
$
|
1,116
|
|
|
$
|
—
|
|
|
$
|
1,386
|
|
Equity in net income (loss) of affiliates
|
|
(76
|
)
|
|
6
|
|
|
—
|
|
|
70
|
|
|
—
|
|
|||||
Other
|
|
(22
|
)
|
|
9
|
|
|
(8
|
)
|
|
—
|
|
|
(21
|
)
|
|||||
Gain (loss) on divestiture
|
|
(1
|
)
|
|
—
|
|
|
18
|
|
|
—
|
|
|
17
|
|
|||||
|
|
171
|
|
|
15
|
|
|
1,126
|
|
|
70
|
|
|
1,382
|
|
|||||
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Lease operating expenses
|
|
66
|
|
|
—
|
|
|
293
|
|
|
—
|
|
|
359
|
|
|||||
Gathering and transportation
|
|
10
|
|
|
—
|
|
|
42
|
|
|
—
|
|
|
52
|
|
|||||
Taxes other than income
|
|
22
|
|
|
—
|
|
|
43
|
|
|
—
|
|
|
65
|
|
|||||
Exploration
|
|
76
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
91
|
|
|||||
General and administrative
|
|
86
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
103
|
|
|||||
Transaction, reorganization, and separation
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|||||
Depreciation, depletion, and amortization
|
|
159
|
|
|
—
|
|
|
510
|
|
|
—
|
|
|
669
|
|
|||||
Asset retirement obligation accretion
|
|
5
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
38
|
|
|||||
Impairments
|
|
61
|
|
|
—
|
|
|
112
|
|
|
—
|
|
|
173
|
|
|||||
Financing costs, net
|
|
64
|
|
|
7
|
|
|
33
|
|
|
—
|
|
|
104
|
|
|||||
|
|
558
|
|
|
7
|
|
|
1,098
|
|
|
—
|
|
|
1,663
|
|
|||||
NET INCOME (LOSS) BEFORE INCOME TAXES
|
|
(387
|
)
|
|
8
|
|
|
28
|
|
|
70
|
|
|
(281
|
)
|
|||||
Provision (benefit) for income taxes
|
|
(143
|
)
|
|
2
|
|
|
60
|
|
|
—
|
|
|
(81
|
)
|
|||||
NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST
|
|
(244
|
)
|
|
6
|
|
|
(32
|
)
|
|
70
|
|
|
(200
|
)
|
|||||
Net income attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
44
|
|
|||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK
|
|
$
|
(244
|
)
|
|
$
|
6
|
|
|
$
|
(76
|
)
|
|
$
|
70
|
|
|
$
|
(244
|
)
|
|
Apache
Corporation
|
|
Apache
Finance
Canada
|
|
All Other
Subsidiaries
of Apache
Corporation
|
|
Reclassifications
& Eliminations
|
|
Consolidated
|
||||||||||
|
(In millions)
|
||||||||||||||||||
REVENUES AND OTHER:
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil and gas production revenues
|
$
|
532
|
|
|
$
|
—
|
|
|
$
|
2,326
|
|
|
$
|
—
|
|
|
$
|
2,858
|
|
Equity in net income (loss) of affiliates
|
188
|
|
|
(27
|
)
|
|
—
|
|
|
(161
|
)
|
|
—
|
|
|||||
Other
|
70
|
|
|
16
|
|
|
(2
|
)
|
|
—
|
|
|
84
|
|
|||||
Gain on divestitures
|
175
|
|
|
—
|
|
|
145
|
|
|
—
|
|
|
320
|
|
|||||
|
965
|
|
|
(11
|
)
|
|
2,469
|
|
|
(161
|
)
|
|
3,262
|
|
|||||
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Lease operating expenses
|
160
|
|
|
—
|
|
|
548
|
|
|
—
|
|
|
708
|
|
|||||
Gathering and transportation
|
14
|
|
|
—
|
|
|
91
|
|
|
—
|
|
|
105
|
|
|||||
Taxes other than income
|
47
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
71
|
|
|||||
Exploration
|
82
|
|
|
—
|
|
|
118
|
|
|
—
|
|
|
200
|
|
|||||
General and administrative
|
181
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|
209
|
|
|||||
Transaction, reorganization, and separation
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|||||
Depreciation, depletion, and amortization
|
265
|
|
|
—
|
|
|
883
|
|
|
—
|
|
|
1,148
|
|
|||||
Asset retirement obligation accretion
|
11
|
|
|
—
|
|
|
62
|
|
|
—
|
|
|
73
|
|
|||||
Impairments
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
|||||
Financing costs, net
|
120
|
|
|
12
|
|
|
67
|
|
|
—
|
|
|
199
|
|
|||||
|
874
|
|
|
12
|
|
|
1,829
|
|
|
—
|
|
|
2,715
|
|
|||||
NET INCOME (LOSS) BEFORE INCOME TAXES
|
91
|
|
|
(23
|
)
|
|
640
|
|
|
(161
|
)
|
|
547
|
|
|||||
Provision (benefit) for income taxes
|
(694
|
)
|
|
4
|
|
|
357
|
|
|
—
|
|
|
(333
|
)
|
|||||
NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST
|
785
|
|
|
(27
|
)
|
|
283
|
|
|
(161
|
)
|
|
880
|
|
|||||
Net income attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
95
|
|
|
—
|
|
|
95
|
|
|||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK
|
$
|
785
|
|
|
$
|
(27
|
)
|
|
$
|
188
|
|
|
$
|
(161
|
)
|
|
$
|
785
|
|
|
Apache
Corporation
|
|
Apache
Finance
Canada
|
|
All Other
Subsidiaries
of Apache
Corporation
|
|
Reclassifications
& Eliminations
|
|
Consolidated
|
||||||||||
|
(In millions)
|
||||||||||||||||||
REVENUES AND OTHER:
|
|
|
|
|
|
|
|
|
|
||||||||||
Oil and gas production revenues
|
$
|
487
|
|
|
$
|
—
|
|
|
$
|
1,986
|
|
|
$
|
—
|
|
|
$
|
2,473
|
|
Equity in net income (loss) of affiliates
|
(184
|
)
|
|
(20
|
)
|
|
—
|
|
|
204
|
|
|
—
|
|
|||||
Other
|
6
|
|
|
21
|
|
|
(51
|
)
|
|
—
|
|
|
(24
|
)
|
|||||
Gain (loss) on divestitures
|
(2
|
)
|
|
—
|
|
|
18
|
|
|
—
|
|
|
16
|
|
|||||
|
307
|
|
|
1
|
|
|
1,953
|
|
|
204
|
|
|
2,465
|
|
|||||
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Lease operating expenses
|
144
|
|
|
—
|
|
|
593
|
|
|
—
|
|
|
737
|
|
|||||
Gathering and transportation
|
19
|
|
|
—
|
|
|
85
|
|
|
—
|
|
|
104
|
|
|||||
Taxes other than income
|
43
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
76
|
|
|||||
Exploration
|
126
|
|
|
—
|
|
|
60
|
|
|
—
|
|
|
186
|
|
|||||
General and administrative
|
163
|
|
|
—
|
|
|
33
|
|
|
—
|
|
|
196
|
|
|||||
Transaction, reorganization, and separation
|
24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|||||
Depreciation, depletion, and amortization
|
315
|
|
|
—
|
|
|
1,032
|
|
|
—
|
|
|
1,347
|
|
|||||
Asset retirement obligation accretion
|
9
|
|
|
—
|
|
|
67
|
|
|
—
|
|
|
76
|
|
|||||
Impairments
|
61
|
|
|
—
|
|
|
112
|
|
|
—
|
|
|
173
|
|
|||||
Financing costs, net
|
125
|
|
|
17
|
|
|
67
|
|
|
—
|
|
|
209
|
|
|||||
|
1,029
|
|
|
17
|
|
|
2,082
|
|
|
—
|
|
|
3,128
|
|
|||||
NET INCOME (LOSS) BEFORE INCOME TAXES
|
(722
|
)
|
|
(16
|
)
|
|
(129
|
)
|
|
204
|
|
|
(663
|
)
|
|||||
Provision (benefit) for income taxes
|
(106
|
)
|
|
4
|
|
|
10
|
|
|
—
|
|
|
(92
|
)
|
|||||
NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST
|
(616
|
)
|
|
(20
|
)
|
|
(139
|
)
|
|
204
|
|
|
(571
|
)
|
|||||
Net income attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
45
|
|
|
—
|
|
|
45
|
|
|||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK
|
$
|
(616
|
)
|
|
$
|
(20
|
)
|
|
$
|
(184
|
)
|
|
$
|
204
|
|
|
$
|
(616
|
)
|
|
|
Apache
Corporation
|
|
Apache
Finance
Canada
|
|
All Other
Subsidiaries
of Apache
Corporation
|
|
Reclassifications
& Eliminations
|
|
Consolidated
|
||||||||||
|
|
(In millions)
|
||||||||||||||||||
CASH PROVIDED BY OPERATING ACTIVITIES
|
|
$
|
110
|
|
|
$
|
—
|
|
|
$
|
873
|
|
|
$
|
—
|
|
|
$
|
983
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Additions to oil and gas property
|
|
(53
|
)
|
|
—
|
|
|
(872
|
)
|
|
—
|
|
|
(925
|
)
|
|||||
Leasehold and property acquisitions
|
|
(53
|
)
|
|
—
|
|
|
(65
|
)
|
|
—
|
|
|
(118
|
)
|
|||||
Investment in subsidiaries, net
|
|
(39
|
)
|
|
—
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|||||
Other
|
|
(3
|
)
|
|
—
|
|
|
80
|
|
|
—
|
|
|
77
|
|
|||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
|
|
(148
|
)
|
|
—
|
|
|
(857
|
)
|
|
39
|
|
|
(966
|
)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Intercompany borrowings
|
|
—
|
|
|
1
|
|
|
38
|
|
|
(39
|
)
|
|
—
|
|
|||||
Distributions to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
(93
|
)
|
|
—
|
|
|
(93
|
)
|
|||||
Dividends paid
|
|
(189
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(189
|
)
|
|||||
Other
|
|
1
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||||
NET CASH USED IN FINANCING ACTIVITIES
|
|
(188
|
)
|
|
—
|
|
|
(56
|
)
|
|
(39
|
)
|
|
(283
|
)
|
|||||
NET DECREASE IN CASH AND CASH EQUIVALENTS
|
|
(226
|
)
|
|
—
|
|
|
(40
|
)
|
|
—
|
|
|
(266
|
)
|
|||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
|
|
378
|
|
|
—
|
|
|
1,089
|
|
|
—
|
|
|
1,467
|
|
|||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
|
$
|
152
|
|
|
$
|
—
|
|
|
$
|
1,049
|
|
|
$
|
—
|
|
|
$
|
1,201
|
|
ITEM 2
.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
North America equivalent production was
down
16 percent
for the quarter relative to the
2016
period, in line with our expectations given the significant reduction in capital investments over the past two years.
|
•
|
Second
-quarter equivalent production from the Permian Basin region, which accounts for more than half of Apache’s total North American production,
decreased
12 percent
from the
second
quarter of
2016
as a result of fewer wells placed on production during the previous two years. Second-quarter production was relatively flat with the prior sequential quarter, a reflection of increased activity during 2017.
|
•
|
Drilling and infrastructure development activities continue at Alpine High; specifically:
|
◦
|
First production from the Alpine High play was achieved in early May 2017, with net gas production now exceeding 60 million cubic feet of natural gas per day (MMcf/d), which is projected to increase to more than 100 MMcf/d by the end of September.
|
◦
|
During the first half of 2017, Apache invested $270 million in midstream facilities at Alpine High, with development ongoing.
|
◦
|
Well optimization work and appraisal drilling continued during the quarter. The Company drilled 4 appraisal wells in the oil window of the Wolfcamp/Bone Springs formations, where we continue to expand our inventory of drilling locations.
|
•
|
In July 2017, Apache announced three separate transactions to sell its subsidiary Apache Canada Ltd. (ACL) and its Canadian operations for aggregate cash proceeds of approximately $713 million, subject to foreign exchange movements and customary closing adjustments. The sale of assets at Midale and House Mountain, located in Saskatchewan and Alberta, closed on June 30, 2017 for $228 million of cash proceeds, with the two remaining transactions to sell ACL and Provost assets in Alberta expected to close in August 2017. The sale of Apache’s Canadian operations further streamlines our portfolio, enables us to allocate a higher percentage of capital to the Permian Basin, and eliminates approximately $800 million of asset retirement obligations from the Company’s balance sheet.
|
•
|
The Egypt region averaged 13 rigs and drilled and completed 25 gross operated wells during the
second
quarter of
2017
including two high-rate exploration wells in the Matruh Basin, de-risking additional exploration prospects in the area. Net equivalent production
decreased
8 percent
from the
second
quarter of
2016
despite a decline of only
4 percent
in gross production, a result of tax barrel impacts as a function of the Company’s production sharing contracts.
|
•
|
The North Sea region average daily production
decreased
23 percent
from the
second
quarter of
2016
, primarily the result of scheduled maintenance activities commencing during the second quarter of 2017 and natural well decline in the Forties and Bacchus fields. The Callater discovery came online in late May 2017, with facilities tieback ahead of schedule and additional drilling activities and well testing ongoing.
|
|
|
For the Quarter Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||
|
|
$
Value
|
|
%
Contribution
|
|
$
Value
|
|
%
Contribution
|
|
$
Value
|
|
%
Contribution
|
|
$
Value
|
|
%
Contribution
|
||||||||||||
|
|
($ in millions)
|
||||||||||||||||||||||||||
Total Oil Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
United States
|
|
$
|
355
|
|
|
34
|
%
|
|
$
|
409
|
|
|
37
|
%
|
|
$
|
752
|
|
|
34
|
%
|
|
$
|
722
|
|
|
37
|
%
|
Canada
|
|
47
|
|
|
4
|
%
|
|
46
|
|
|
4
|
%
|
|
96
|
|
|
4
|
%
|
|
85
|
|
|
5
|
%
|
||||
North America
|
|
402
|
|
|
38
|
%
|
|
455
|
|
|
41
|
%
|
|
848
|
|
|
38
|
%
|
|
807
|
|
|
42
|
%
|
||||
Egypt
(1)
|
|
423
|
|
|
40
|
%
|
|
437
|
|
|
39
|
%
|
|
909
|
|
|
41
|
%
|
|
733
|
|
|
38
|
%
|
||||
North Sea
|
|
225
|
|
|
22
|
%
|
|
226
|
|
|
20
|
%
|
|
465
|
|
|
21
|
%
|
|
400
|
|
|
20
|
%
|
||||
International
(1)
|
|
648
|
|
|
62
|
%
|
|
663
|
|
|
59
|
%
|
|
1,374
|
|
|
62
|
%
|
|
1,133
|
|
|
58
|
%
|
||||
Total
(1)
|
|
$
|
1,050
|
|
|
100
|
%
|
|
$
|
1,118
|
|
|
100
|
%
|
|
$
|
2,222
|
|
|
100
|
%
|
|
$
|
1,940
|
|
|
100
|
%
|
Total Natural Gas Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
United States
|
|
$
|
84
|
|
|
36
|
%
|
|
$
|
62
|
|
|
30
|
%
|
|
$
|
169
|
|
|
35
|
%
|
|
$
|
124
|
|
|
29
|
%
|
Canada
|
|
40
|
|
|
17
|
%
|
|
23
|
|
|
11
|
%
|
|
85
|
|
|
17
|
%
|
|
64
|
|
|
15
|
%
|
||||
North America
|
|
124
|
|
|
53
|
%
|
|
85
|
|
|
41
|
%
|
|
254
|
|
|
52
|
%
|
|
188
|
|
|
44
|
%
|
||||
Egypt
(1)
|
|
95
|
|
|
41
|
%
|
|
102
|
|
|
49
|
%
|
|
197
|
|
|
40
|
%
|
|
195
|
|
|
45
|
%
|
||||
North Sea
|
|
14
|
|
|
6
|
%
|
|
22
|
|
|
10
|
%
|
|
37
|
|
|
8
|
%
|
|
49
|
|
|
11
|
%
|
||||
International
(1)
|
|
109
|
|
|
47
|
%
|
|
124
|
|
|
59
|
%
|
|
234
|
|
|
48
|
%
|
|
244
|
|
|
56
|
%
|
||||
Total
(1)
|
|
$
|
233
|
|
|
100
|
%
|
|
$
|
209
|
|
|
100
|
%
|
|
$
|
488
|
|
|
100
|
%
|
|
$
|
432
|
|
|
100
|
%
|
Total Natural Gas Liquids (NGL) Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
United States
|
|
$
|
52
|
|
|
83
|
%
|
|
$
|
49
|
|
|
83
|
%
|
|
$
|
122
|
|
|
82
|
%
|
|
$
|
83
|
|
|
82
|
%
|
Canada
|
|
6
|
|
|
9
|
%
|
|
4
|
|
|
7
|
%
|
|
14
|
|
|
10
|
%
|
|
7
|
|
|
7
|
%
|
||||
North America
|
|
58
|
|
|
92
|
%
|
|
53
|
|
|
90
|
%
|
|
136
|
|
|
92
|
%
|
|
90
|
|
|
89
|
%
|
||||
Egypt
(1)
|
|
3
|
|
|
5
|
%
|
|
3
|
|
|
5
|
%
|
|
6
|
|
|
4
|
%
|
|
6
|
|
|
6
|
%
|
||||
North Sea
|
|
2
|
|
|
3
|
%
|
|
3
|
|
|
5
|
%
|
|
6
|
|
|
4
|
%
|
|
5
|
|
|
5
|
%
|
||||
International
(1)
|
|
5
|
|
|
8
|
%
|
|
6
|
|
|
10
|
%
|
|
12
|
|
|
8
|
%
|
|
11
|
|
|
11
|
%
|
||||
Total
(1)
|
|
$
|
63
|
|
|
100
|
%
|
|
$
|
59
|
|
|
100
|
%
|
|
$
|
148
|
|
|
100
|
%
|
|
$
|
101
|
|
|
100
|
%
|
Total Oil and Gas Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
United States
|
|
$
|
491
|
|
|
36
|
%
|
|
$
|
520
|
|
|
38
|
%
|
|
$
|
1,043
|
|
|
36
|
%
|
|
$
|
929
|
|
|
38
|
%
|
Canada
|
|
93
|
|
|
7
|
%
|
|
73
|
|
|
5
|
%
|
|
195
|
|
|
7
|
%
|
|
156
|
|
|
6
|
%
|
||||
North America
|
|
584
|
|
|
43
|
%
|
|
593
|
|
|
43
|
%
|
|
1,238
|
|
|
43
|
%
|
|
1,085
|
|
|
44
|
%
|
||||
Egypt
(1)
|
|
521
|
|
|
39
|
%
|
|
542
|
|
|
39
|
%
|
|
1,112
|
|
|
39
|
%
|
|
934
|
|
|
38
|
%
|
||||
North Sea
|
|
241
|
|
|
18
|
%
|
|
251
|
|
|
18
|
%
|
|
508
|
|
|
18
|
%
|
|
454
|
|
|
18
|
%
|
||||
International
(1)
|
|
762
|
|
|
57
|
%
|
|
793
|
|
|
57
|
%
|
|
1,620
|
|
|
57
|
%
|
|
1,388
|
|
|
56
|
%
|
||||
Total
(1)
|
|
$
|
1,346
|
|
|
100
|
%
|
|
$
|
1,386
|
|
|
100
|
%
|
|
$
|
2,858
|
|
|
100
|
%
|
|
$
|
2,473
|
|
|
100
|
%
|
(1)
|
Includes revenues attributable to a noncontrolling interest in Egypt.
|
|
|
For the Quarter Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||
|
|
2017
|
|
Increase
(Decrease)
|
|
2016
|
|
2017
|
|
Increase
(Decrease)
|
|
2016
|
||||||
Oil Volume – b/d
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
|
86,071
|
|
|
(19
|
)%
|
|
106,741
|
|
|
88,386
|
|
|
(21
|
)%
|
|
111,300
|
|
Canada
|
|
11,638
|
|
|
(10
|
)%
|
|
12,917
|
|
|
11,647
|
|
|
(15
|
)%
|
|
13,690
|
|
North America
|
|
97,709
|
|
|
(18
|
)%
|
|
119,658
|
|
|
100,033
|
|
|
(20
|
)%
|
|
124,990
|
|
Egypt
(1)(2)
|
|
96,961
|
|
|
(9
|
)%
|
|
106,223
|
|
|
99,327
|
|
|
(3
|
)%
|
|
102,241
|
|
North Sea
|
|
48,091
|
|
|
(19
|
)%
|
|
59,124
|
|
|
48,933
|
|
|
(16
|
)%
|
|
58,043
|
|
International
|
|
145,052
|
|
|
(12
|
)%
|
|
165,347
|
|
|
148,260
|
|
|
(8
|
)%
|
|
160,284
|
|
Total
|
|
242,761
|
|
|
(15
|
)%
|
|
285,005
|
|
|
248,293
|
|
|
(13
|
)%
|
|
285,274
|
|
Natural Gas Volume – Mcf/d
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
|
364,052
|
|
|
(11
|
)%
|
|
408,126
|
|
|
365,481
|
|
|
(11
|
)%
|
|
408,943
|
|
Canada
|
|
205,408
|
|
|
(17
|
)%
|
|
246,830
|
|
|
210,484
|
|
|
(18
|
)%
|
|
256,635
|
|
North America
|
|
569,460
|
|
|
(13
|
)%
|
|
654,956
|
|
|
575,965
|
|
|
(13
|
)%
|
|
665,578
|
|
Egypt
(1)(2)
|
|
383,296
|
|
|
(6
|
)%
|
|
408,013
|
|
|
395,179
|
|
|
(2
|
)%
|
|
402,806
|
|
North Sea
|
|
34,348
|
|
|
(43
|
)%
|
|
60,318
|
|
|
39,111
|
|
|
(40
|
)%
|
|
65,556
|
|
International
|
|
417,644
|
|
|
(11
|
)%
|
|
468,331
|
|
|
434,290
|
|
|
(7
|
)%
|
|
468,362
|
|
Total
|
|
987,104
|
|
|
(12
|
)%
|
|
1,123,287
|
|
|
1,010,255
|
|
|
(11
|
)%
|
|
1,133,940
|
|
NGL Volume – b/d
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
|
47,029
|
|
|
(15
|
)%
|
|
55,632
|
|
|
47,511
|
|
|
(15
|
)%
|
|
55,666
|
|
Canada
|
|
4,365
|
|
|
(14
|
)%
|
|
5,092
|
|
|
4,592
|
|
|
(21
|
)%
|
|
5,797
|
|
North America
|
|
51,394
|
|
|
(15
|
)%
|
|
60,724
|
|
|
52,103
|
|
|
(15
|
)%
|
|
61,463
|
|
Egypt
(1)(2)
|
|
880
|
|
|
(7
|
)%
|
|
950
|
|
|
917
|
|
|
(18
|
)%
|
|
1,119
|
|
North Sea
|
|
741
|
|
|
(53
|
)%
|
|
1,563
|
|
|
955
|
|
|
(36
|
)%
|
|
1,486
|
|
International
|
|
1,621
|
|
|
(35
|
)%
|
|
2,513
|
|
|
1,872
|
|
|
(28
|
)%
|
|
2,605
|
|
Total
|
|
53,015
|
|
|
(16
|
)%
|
|
63,237
|
|
|
53,975
|
|
|
(16
|
)%
|
|
64,068
|
|
BOE per day
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
|
193,775
|
|
|
(16
|
)%
|
|
230,393
|
|
|
196,811
|
|
|
(16
|
)%
|
|
235,123
|
|
Canada
|
|
50,238
|
|
|
(15
|
)%
|
|
59,148
|
|
|
51,319
|
|
|
(18
|
)%
|
|
62,260
|
|
North America
|
|
244,013
|
|
|
(16
|
)%
|
|
289,541
|
|
|
248,130
|
|
|
(17
|
)%
|
|
297,383
|
|
Egypt
(2)
|
|
161,724
|
|
|
(8
|
)%
|
|
175,175
|
|
|
166,107
|
|
|
(3
|
)%
|
|
170,494
|
|
North Sea
(4)
|
|
54,556
|
|
|
(23
|
)%
|
|
70,740
|
|
|
56,407
|
|
|
(20
|
)%
|
|
70,455
|
|
International
|
|
216,280
|
|
|
(12
|
)%
|
|
245,915
|
|
|
222,514
|
|
|
(8
|
)%
|
|
240,949
|
|
Total
|
|
460,293
|
|
|
(14
|
)%
|
|
535,456
|
|
|
470,644
|
|
|
(13
|
)%
|
|
538,332
|
|
(1)
|
Gross oil, natural gas, and NGL production in Egypt for the
second
quarter and
six
-month period of
2017
and
2016
were as follows:
|
|
|
For the Quarter Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Oil (b/d)
|
|
195,293
|
|
|
212,218
|
|
|
194,559
|
|
|
211,032
|
|
Natural Gas (Mcf/d)
|
|
825,947
|
|
|
814,283
|
|
|
811,608
|
|
|
830,165
|
|
NGL (b/d)
|
|
1,545
|
|
|
1,757
|
|
|
1,509
|
|
|
1,951
|
|
(2)
|
Includes production volumes per day attributable to a noncontrolling interest in Egypt for the
second
quarter and
six
-month period of
2017
and
2016
of:
|
|
|
For the Quarter Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Oil (b/d)
|
|
32,562
|
|
|
35,357
|
|
|
33,232
|
|
|
34,017
|
|
Natural Gas (Mcf/d)
|
|
128,696
|
|
|
136,029
|
|
|
132,197
|
|
|
134,266
|
|
NGL (b/d)
|
|
293
|
|
|
317
|
|
|
306
|
|
|
373
|
|
(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
second
quarter and first
six
months of
2017
was
57,905
boe/d and
58,347
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 June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||
|
|
2017
|
|
Increase
(Decrease) |
|
2016
|
|
2017
|
|
Increase
(Decrease) |
|
2016
|
||||||||||
Average Oil Price - Per barrel
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States
|
|
$
|
45.18
|
|
|
8
|
%
|
|
$
|
41.95
|
|
|
$
|
46.99
|
|
|
32
|
%
|
|
$
|
35.61
|
|
Canada
|
|
44.52
|
|
|
13
|
%
|
|
39.39
|
|
|
45.70
|
|
|
34
|
%
|
|
34.11
|
|
||||
North America
|
|
45.10
|
|
|
9
|
%
|
|
41.45
|
|
|
46.84
|
|
|
33
|
%
|
|
35.34
|
|
||||
Egypt
|
|
47.98
|
|
|
6
|
%
|
|
45.42
|
|
|
50.57
|
|
|
28
|
%
|
|
39.47
|
|
||||
North Sea
|
|
48.21
|
|
|
6
|
%
|
|
45.56
|
|
|
50.51
|
|
|
27
|
%
|
|
39.64
|
|
||||
International
|
|
48.06
|
|
|
6
|
%
|
|
45.47
|
|
|
50.55
|
|
|
28
|
%
|
|
39.53
|
|
||||
Total
|
|
46.89
|
|
|
9
|
%
|
|
43.14
|
|
|
49.06
|
|
|
31
|
%
|
|
37.37
|
|
||||
Average Natural Gas Price - Per Mcf
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States
|
|
$
|
2.53
|
|
|
49
|
%
|
|
$
|
1.70
|
|
|
$
|
2.55
|
|
|
53
|
%
|
|
$
|
1.67
|
|
Canada
|
|
2.14
|
|
|
112
|
%
|
|
1.01
|
|
|
2.24
|
|
|
65
|
%
|
|
1.36
|
|
||||
North America
|
|
2.39
|
|
|
66
|
%
|
|
1.44
|
|
|
2.44
|
|
|
57
|
%
|
|
1.55
|
|
||||
Egypt
|
|
2.73
|
|
|
—
|
|
|
2.72
|
|
|
2.75
|
|
|
4
|
%
|
|
2.65
|
|
||||
North Sea
|
|
4.54
|
|
|
15
|
%
|
|
3.95
|
|
|
5.27
|
|
|
28
|
%
|
|
4.11
|
|
||||
International
|
|
2.88
|
|
|
—
|
|
|
2.88
|
|
|
2.98
|
|
|
4
|
%
|
|
2.86
|
|
||||
Total
|
|
2.60
|
|
|
27
|
%
|
|
2.04
|
|
|
2.67
|
|
|
28
|
%
|
|
2.09
|
|
||||
Average NGL Price - Per barrel
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States
|
|
$
|
12.26
|
|
|
26
|
%
|
|
$
|
9.74
|
|
|
$
|
14.21
|
|
|
74
|
%
|
|
$
|
8.17
|
|
Canada
|
|
15.99
|
|
|
87
|
%
|
|
8.54
|
|
|
16.53
|
|
|
140
|
%
|
|
6.88
|
|
||||
North America
|
|
12.58
|
|
|
30
|
%
|
|
9.64
|
|
|
14.42
|
|
|
79
|
%
|
|
8.05
|
|
||||
Egypt
|
|
31.11
|
|
|
12
|
%
|
|
27.68
|
|
|
35.74
|
|
|
31
|
%
|
|
27.24
|
|
||||
North Sea
|
|
22.92
|
|
|
3
|
%
|
|
22.25
|
|
|
32.85
|
|
|
62
|
%
|
|
20.29
|
|
||||
International
|
|
27.37
|
|
|
13
|
%
|
|
24.30
|
|
|
34.26
|
|
|
47
|
%
|
|
23.28
|
|
||||
Total
|
|
13.03
|
|
|
27
|
%
|
|
10.22
|
|
|
15.10
|
|
|
74
|
%
|
|
8.67
|
|
|
|
For the Quarter Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||
|
|
(In millions)
|
|
(Per boe)
|
|
(In millions)
|
|
(Per boe)
|
||||||||||||||||||||||||
Lease operating expenses
(1)
|
|
$
|
372
|
|
|
$
|
359
|
|
|
$
|
8.81
|
|
|
$
|
7.38
|
|
|
$
|
708
|
|
|
$
|
737
|
|
|
$
|
8.27
|
|
|
$
|
7.52
|
|
Gathering and transportation
(1)
|
|
48
|
|
|
52
|
|
|
1.19
|
|
|
1.05
|
|
|
105
|
|
|
104
|
|
|
1.24
|
|
|
1.06
|
|
||||||||
Taxes other than income
|
|
29
|
|
|
65
|
|
|
0.68
|
|
|
1.33
|
|
|
71
|
|
|
76
|
|
|
0.83
|
|
|
0.78
|
|
||||||||
Exploration
|
|
108
|
|
|
91
|
|
|
2.58
|
|
|
1.87
|
|
|
200
|
|
|
186
|
|
|
2.35
|
|
|
1.90
|
|
||||||||
General and administrative
|
|
106
|
|
|
103
|
|
|
2.53
|
|
|
2.10
|
|
|
209
|
|
|
196
|
|
|
2.45
|
|
|
2.00
|
|
||||||||
Transaction, reorganization, and separation
|
|
4
|
|
|
9
|
|
|
0.08
|
|
|
0.17
|
|
|
(6
|
)
|
|
24
|
|
|
(0.07
|
)
|
|
0.24
|
|
||||||||
Depreciation, depletion, and amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Oil and gas property and equipment
(1)
|
|
536
|
|
|
629
|
|
|
12.72
|
|
|
12.92
|
|
|
1,074
|
|
|
1,265
|
|
|
12.56
|
|
|
12.91
|
|
||||||||
Other assets
|
|
36
|
|
|
40
|
|
|
0.86
|
|
|
0.83
|
|
|
74
|
|
|
82
|
|
|
0.87
|
|
|
0.84
|
|
||||||||
Asset retirement obligation accretion
|
|
37
|
|
|
38
|
|
|
0.87
|
|
|
0.78
|
|
|
73
|
|
|
76
|
|
|
0.85
|
|
|
0.77
|
|
||||||||
Impairments
|
|
—
|
|
|
173
|
|
|
—
|
|
|
3.56
|
|
|
8
|
|
|
173
|
|
|
0.09
|
|
|
1.77
|
|
||||||||
Financing costs, net
|
|
99
|
|
|
104
|
|
|
2.37
|
|
|
2.15
|
|
|
199
|
|
|
209
|
|
|
2.34
|
|
|
2.13
|
|
|
|
For the Quarter Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
(In millions)
|
||||||||||||||
Unproved leasehold impairments
|
|
$
|
39
|
|
|
$
|
66
|
|
|
$
|
54
|
|
|
$
|
108
|
|
Dry hole expense
|
|
46
|
|
|
2
|
|
|
98
|
|
|
31
|
|
||||
Geological and geophysical expense
|
|
6
|
|
|
4
|
|
|
12
|
|
|
9
|
|
||||
Exploration overhead and other
|
|
17
|
|
|
19
|
|
|
36
|
|
|
38
|
|
||||
|
|
$
|
108
|
|
|
$
|
91
|
|
|
$
|
200
|
|
|
$
|
186
|
|
|
|
For the Quarter Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
(In millions)
|
||||||||||||||
Interest expense
|
|
$
|
115
|
|
|
$
|
116
|
|
|
$
|
231
|
|
|
$
|
232
|
|
Amortization of deferred loan costs
|
|
2
|
|
|
2
|
|
|
4
|
|
|
3
|
|
||||
Capitalized interest
|
|
(13
|
)
|
|
(12
|
)
|
|
(27
|
)
|
|
(23
|
)
|
||||
Loss on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Interest income
|
|
(5
|
)
|
|
(2
|
)
|
|
(10
|
)
|
|
(3
|
)
|
||||
Financing costs, net
|
|
$
|
99
|
|
|
$
|
104
|
|
|
$
|
199
|
|
|
$
|
209
|
|
|
|
For the Six Months Ended June 30,
|
||||||
|
|
2017
|
|
2016
|
||||
|
|
(In millions)
|
||||||
Sources of Cash and Cash Equivalents:
|
|
|
|
|
||||
Net cash provided by operating activities
|
|
$
|
1,206
|
|
|
$
|
983
|
|
Proceeds from sale of oil and gas properties
|
|
711
|
|
|
48
|
|
||
Other
|
|
27
|
|
|
28
|
|
||
|
|
1,944
|
|
|
1,059
|
|
||
Uses of Cash and Cash Equivalents:
|
|
|
|
|
||||
Capital expenditures
(1)
|
|
$
|
1,157
|
|
|
$
|
925
|
|
Leasehold and property acquisitions
|
|
67
|
|
|
118
|
|
||
Payments on fixed-rate debt
|
|
70
|
|
|
—
|
|
||
Dividends paid
|
|
190
|
|
|
189
|
|
||
Distributions to noncontrolling interest
|
|
170
|
|
|
93
|
|
||
|
|
1,654
|
|
|
1,325
|
|
||
Increase (decrease) in cash and cash equivalents
|
|
$
|
290
|
|
|
$
|
(266
|
)
|
(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.
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
|
|
(In millions)
|
||||||
Cash and cash equivalents
|
|
$
|
1,667
|
|
|
$
|
1,377
|
|
Total debt
|
|
8,479
|
|
|
8,544
|
|
||
Equity
|
|
8,265
|
|
|
7,679
|
|
||
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).
|
3.2
|
–
|
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).
|
3.3
|
–
|
Bylaws of Registrant, as amended May 11, 2017 (incorporated by reference to Exhibit 3.1 to Registrant’s Current Report on Form 8-K filed May 16, 2017, SEC File No. 001-4300).
|
*10.1
|
–
|
Apache Corporation Non-Employee Directors’ Compensation Plan, as amended and restated July 13, 2017.
|
*31.1
|
–
|
Certification (pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act) by Principal Executive Officer.
|
*31.2
|
–
|
Certification (pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act) by Principal Financial Officer.
|
*32.1
|
–
|
Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Principal Executive Officer and Principal Financial Officer.
|
*101.INS
|
–
|
XBRL Instance Document.
|
*101.SCH
|
–
|
XBRL Taxonomy Schema Document.
|
*101.CAL
|
–
|
XBRL Calculation Linkbase Document.
|
*101.DEF
|
–
|
XBRL Definition Linkbase Document.
|
*101.LAB
|
–
|
XBRL Label Linkbase Document.
|
*101.PRE
|
–
|
XBRL Presentation Linkbase Document.
|
*
|
Filed herewith
|
|
|
|
APACHE CORPORATION
|
|
|
|
|
Dated:
|
August 3, 2017
|
|
/s/ STEPHEN J. RINEY
|
|
|
|
Stephen J. Riney
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
(Principal Financial Officer)
|
|
|
|
|
Dated:
|
August 3, 2017
|
|
/s/ REBECCA A. HOYT
|
|
|
|
Rebecca A. Hoyt
|
|
|
|
Senior Vice President, Chief Accounting Officer, and Controller
|
|
|
|
(Principal Accounting Officer)
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Apache Corporation;
|
|
2.
|
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;
|
|
3.
|
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;
|
|
4.
|
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;
|
|
(b)
|
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;
|
|
(c)
|
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
|
|
(d)
|
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
|
5.
|
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)
|
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
|
|
(b)
|
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.
|
/s/ John J. Christmann IV
|
|
John J. Christmann IV
|
|
Chief Executive Officer and President
|
|
(principal executive officer)
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Apache Corporation;
|
|
2.
|
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;
|
|
3.
|
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;
|
|
4.
|
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;
|
|
(b)
|
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;
|
|
(c)
|
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
|
|
(d)
|
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
|
5.
|
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)
|
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
|
|
(b)
|
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.
|
/s/ Stephen J. Riney
|
|
Stephen J. Riney
|
|
Executive Vice President and Chief Financial Officer
|
|
(principal financial officer)
|
|
/s/ John J. Christmann IV
|
|
||
By:
|
|
John J. Christmann IV
|
|
Title:
|
|
Chief Executive Officer and President
|
|
|
|
(principal executive officer)
|
|
/s/ Stephen J. Riney
|
|
||
By:
|
|
Stephen J. Riney
|
|
Title:
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
(principal financial officer)
|
|