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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Emerging growth company
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¨
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Number of shares of registrant’s common stock outstanding as of October 31, 2017
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380,942,629
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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
third
-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 September 30,
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For the Nine Months Ended September 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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||||||||
Oil revenues
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$
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1,070
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$
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1,117
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$
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3,292
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$
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3,057
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Gas revenues
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238
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|
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263
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|
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726
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695
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||||
Natural gas liquids revenues
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81
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59
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229
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160
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||||
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1,389
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1,439
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4,247
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3,912
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||||
Derivative instrument losses, net
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(110
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)
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—
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(69
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)
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—
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||||
Gain on divestitures
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296
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|
|
5
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616
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21
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||||
Other
|
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—
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(6
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)
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43
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(30
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)
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||||
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1,575
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1,438
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4,837
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3,903
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OPERATING EXPENSES:
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Lease operating expenses
|
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358
|
|
|
382
|
|
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1,066
|
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1,119
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||||
Gathering and transportation
|
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39
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|
|
51
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|
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144
|
|
|
155
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||||
Taxes other than income
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46
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|
|
9
|
|
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117
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|
|
85
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||||
Exploration
|
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231
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161
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431
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347
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||||
General and administrative
|
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98
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102
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307
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298
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Transaction, reorganization, and separation
|
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20
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12
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14
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36
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Depreciation, depletion, and amortization:
|
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Oil and gas property and equipment
|
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524
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610
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1,598
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1,875
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Other assets
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35
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38
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109
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120
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Asset retirement obligation accretion
|
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30
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40
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103
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116
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Impairments
|
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—
|
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836
|
|
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8
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1,009
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||||
Financing costs, net
|
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101
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|
102
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300
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311
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||||
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1,482
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2,343
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4,197
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5,471
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||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
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93
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(905
|
)
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640
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(1,568
|
)
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||||
Current income tax provision
|
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99
|
|
|
150
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413
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|
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284
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|
||||
Deferred income tax benefit
|
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(111
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)
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(529
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)
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(758
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)
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(755
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)
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NET INCOME (LOSS) FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST
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105
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(526
|
)
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985
|
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(1,097
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)
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Net loss from discontinued operations, net of tax
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—
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(33
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)
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—
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(33
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)
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NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST
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105
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(559
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)
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985
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(1,130
|
)
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Net income attributable to noncontrolling interest
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42
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48
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137
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93
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NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK
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$
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63
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$
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(607
|
)
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$
|
848
|
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|
$
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(1,223
|
)
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NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS:
|
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||||||||
Net income (loss) from continuing operations attributable to common shareholders
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$
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63
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$
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(574
|
)
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$
|
848
|
|
|
$
|
(1,190
|
)
|
Net loss from discontinued operations
|
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—
|
|
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(33
|
)
|
|
—
|
|
|
(33
|
)
|
||||
Net income (loss) attributable to common shareholders
|
|
$
|
63
|
|
|
$
|
(607
|
)
|
|
$
|
848
|
|
|
$
|
(1,223
|
)
|
NET INCOME (LOSS) PER COMMON SHARE:
|
|
|
|
|
|
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||||||||
Basic net income (loss) from continuing operations per share
|
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$
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0.16
|
|
|
$
|
(1.51
|
)
|
|
$
|
2.23
|
|
|
$
|
(3.14
|
)
|
Basic net loss from discontinued operations per share
|
|
—
|
|
|
(0.09
|
)
|
|
—
|
|
|
(0.08
|
)
|
||||
Basic net income (loss) per share
|
|
$
|
0.16
|
|
|
$
|
(1.60
|
)
|
|
$
|
2.23
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|
|
$
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(3.22
|
)
|
DILUTED NET INCOME (LOSS) PER COMMON SHARE:
|
|
|
|
|
|
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||||||||
Diluted net income (loss) from continuing operations per share
|
|
$
|
0.16
|
|
|
$
|
(1.51
|
)
|
|
$
|
2.22
|
|
|
$
|
(3.14
|
)
|
Diluted net loss from discontinued operations per share
|
|
—
|
|
|
(0.09
|
)
|
|
—
|
|
|
(0.08
|
)
|
||||
Diluted net income (loss) per share
|
|
$
|
0.16
|
|
|
$
|
(1.60
|
)
|
|
$
|
2.22
|
|
|
$
|
(3.22
|
)
|
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
381
|
|
|
380
|
|
|
381
|
|
|
379
|
|
||||
Diluted
|
|
383
|
|
|
380
|
|
|
383
|
|
|
379
|
|
||||
DIVIDENDS DECLARED PER COMMON SHARE
|
|
$
|
0.25
|
|
|
$
|
0.25
|
|
|
$
|
0.75
|
|
|
$
|
0.75
|
|
|
|
For the Quarter Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
(In millions)
|
||||||||||||||
NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST
|
|
$
|
105
|
|
|
$
|
(559
|
)
|
|
$
|
985
|
|
|
$
|
(1,130
|
)
|
OTHER COMPREHENSIVE INCOME:
|
|
|
|
|
|
|
|
|
||||||||
Currency translation adjustment
|
|
109
|
|
|
—
|
|
|
109
|
|
|
—
|
|
||||
COMPREHENSIVE INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST
|
|
214
|
|
|
(559
|
)
|
|
1,094
|
|
|
(1,130
|
)
|
||||
Comprehensive income attributable to noncontrolling interest
|
|
42
|
|
|
48
|
|
|
137
|
|
|
93
|
|
||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK
|
|
$
|
172
|
|
|
$
|
(607
|
)
|
|
$
|
957
|
|
|
$
|
(1,223
|
)
|
|
|
For the Nine Months Ended September 30,
|
||||||
|
|
2017
|
|
2016
|
||||
|
|
(In millions)
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
||||
Net income (loss) including noncontrolling interest
|
|
$
|
985
|
|
|
$
|
(1,130
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
||||
Loss from discontinued operations
|
|
—
|
|
|
33
|
|
||
Unrealized derivative instrument losses, net
|
|
42
|
|
|
—
|
|
||
Gain on divestitures
|
|
(616
|
)
|
|
(21
|
)
|
||
Exploratory dry hole expense and unproved leasehold impairments
|
|
350
|
|
|
260
|
|
||
Depreciation, depletion, and amortization
|
|
1,707
|
|
|
1,995
|
|
||
Asset retirement obligation accretion
|
|
103
|
|
|
116
|
|
||
Impairments
|
|
8
|
|
|
1,009
|
|
||
Deferred income tax benefit
|
|
(758
|
)
|
|
(755
|
)
|
||
Other
|
|
167
|
|
|
126
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
||||
Receivables
|
|
(70
|
)
|
|
192
|
|
||
Inventories
|
|
17
|
|
|
(2
|
)
|
||
Drilling advances
|
|
(72
|
)
|
|
(36
|
)
|
||
Deferred charges and other
|
|
(60
|
)
|
|
40
|
|
||
Accounts payable
|
|
2
|
|
|
(93
|
)
|
||
Accrued expenses
|
|
(65
|
)
|
|
(67
|
)
|
||
Deferred credits and noncurrent liabilities
|
|
20
|
|
|
(33
|
)
|
||
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
|
1,760
|
|
|
1,634
|
|
||
|
|
|
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
||||
Additions to oil and gas property
|
|
(1,471
|
)
|
|
(1,281
|
)
|
||
Leasehold and property acquisitions
|
|
(142
|
)
|
|
(169
|
)
|
||
Additions to gas gathering, transmission, and processing facilities
|
|
(384
|
)
|
|
(33
|
)
|
||
Proceeds from sale of Canadian assets, net of cash divested
|
|
661
|
|
|
—
|
|
||
Proceeds from sale of oil and gas properties
|
|
743
|
|
|
74
|
|
||
Other, net
|
|
(30
|
)
|
|
47
|
|
||
NET CASH USED IN INVESTING ACTIVITIES
|
|
(623
|
)
|
|
(1,362
|
)
|
||
|
|
|
|
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
||||
Payments on fixed-rate debt
|
|
(70
|
)
|
|
(1
|
)
|
||
Distributions to noncontrolling interest
|
|
(212
|
)
|
|
(215
|
)
|
||
Dividends paid
|
|
(285
|
)
|
|
(284
|
)
|
||
Other
|
|
(5
|
)
|
|
(9
|
)
|
||
NET CASH USED IN FINANCING ACTIVITIES
|
|
(572
|
)
|
|
(509
|
)
|
||
|
|
|
|
|
||||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
|
|
565
|
|
|
(237
|
)
|
||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF YEAR
|
|
1,377
|
|
|
1,467
|
|
||
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD
|
|
$
|
1,942
|
|
|
$
|
1,230
|
|
|
|
|
|
|
||||
SUPPLEMENTARY CASH FLOW DATA:
|
|
|
|
|
||||
Interest paid, net of capitalized interest
|
|
$
|
341
|
|
|
$
|
345
|
|
Income taxes paid, net of refunds
|
|
315
|
|
|
256
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
|
|
(In millions)
|
||||||
ASSETS
|
|
|
|
|
||||
CURRENT ASSETS:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
1,846
|
|
|
$
|
1,377
|
|
Restricted cash
|
|
96
|
|
|
—
|
|
||
Receivables, net of allowance
|
|
1,145
|
|
|
1,128
|
|
||
Inventories
|
|
396
|
|
|
476
|
|
||
Drilling advances
|
|
151
|
|
|
81
|
|
||
Prepaid assets and other
|
|
135
|
|
|
179
|
|
||
|
|
3,769
|
|
|
3,241
|
|
||
PROPERTY AND EQUIPMENT:
|
|
|
|
|
||||
Oil and gas, on the basis of successful efforts accounting:
|
|
|
|
|
||||
Proved properties
|
|
38,569
|
|
|
42,693
|
|
||
Unproved properties and properties under development
|
|
1,810
|
|
|
1,969
|
|
||
Gathering, transmission, and processing facilities
|
|
1,363
|
|
|
976
|
|
||
Other
|
|
1,012
|
|
|
1,111
|
|
||
|
|
42,754
|
|
|
46,749
|
|
||
Less: Accumulated depreciation, depletion, and amortization
|
|
(25,099
|
)
|
|
(27,882
|
)
|
||
|
|
17,655
|
|
|
18,867
|
|
||
OTHER ASSETS:
|
|
|
|
|
||||
Deferred charges and other
|
|
411
|
|
|
411
|
|
||
|
|
$
|
21,835
|
|
|
$
|
22,519
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
||||
CURRENT LIABILITIES:
|
|
|
|
|
||||
Accounts payable
|
|
$
|
583
|
|
|
$
|
585
|
|
Current debt
|
|
550
|
|
|
—
|
|
||
Other current liabilities (Note 5)
|
|
1,332
|
|
|
1,258
|
|
||
|
|
2,465
|
|
|
1,843
|
|
||
LONG-TERM DEBT
|
|
7,933
|
|
|
8,544
|
|
||
DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES:
|
|
|
|
|
||||
Income taxes
|
|
948
|
|
|
1,710
|
|
||
Asset retirement obligation
|
|
1,831
|
|
|
2,432
|
|
||
Other
|
|
281
|
|
|
311
|
|
||
|
|
3,060
|
|
|
4,453
|
|
||
COMMITMENTS AND CONTINGENCIES (Note 9)
|
|
|
|
|
||||
EQUITY:
|
|
|
|
|
||||
Common stock, $0.625 par, 860,000,000 shares authorized, 414,108,944 and 412,612,102 shares issued, respectively
|
|
259
|
|
|
258
|
|
||
Paid-in capital
|
|
12,186
|
|
|
12,364
|
|
||
Accumulated deficit
|
|
(2,544
|
)
|
|
(3,385
|
)
|
||
Treasury stock, at cost, 33,171,015 and 33,172,426 shares, respectively
|
|
(2,887
|
)
|
|
(2,887
|
)
|
||
Accumulated other comprehensive loss
|
|
(3
|
)
|
|
(112
|
)
|
||
APACHE SHAREHOLDERS’ EQUITY
|
|
7,011
|
|
|
6,238
|
|
||
Noncontrolling interest
|
|
1,366
|
|
|
1,441
|
|
||
TOTAL EQUITY
|
|
8,377
|
|
|
7,679
|
|
||
|
|
$
|
21,835
|
|
|
$
|
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)
|
|
—
|
|
|
—
|
|
|
(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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
BALANCE AT DECEMBER 31, 2016
|
|
$
|
258
|
|
|
$
|
12,364
|
|
|
$
|
(3,385
|
)
|
|
$
|
(2,887
|
)
|
|
$
|
(112
|
)
|
|
$
|
6,238
|
|
|
$
|
1,441
|
|
|
$
|
7,679
|
|
Net income
|
|
—
|
|
|
—
|
|
|
848
|
|
|
—
|
|
|
—
|
|
|
848
|
|
|
137
|
|
|
985
|
|
||||||||
Distributions to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(212
|
)
|
|
(212
|
)
|
||||||||
Common dividends ($0.75 per share)
|
|
—
|
|
|
(286
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(286
|
)
|
|
—
|
|
|
(286
|
)
|
||||||||
Other
|
|
1
|
|
|
108
|
|
|
(7
|
)
|
|
—
|
|
|
109
|
|
|
211
|
|
|
—
|
|
|
211
|
|
||||||||
BALANCE AT SEPTEMBER 30, 2017
|
|
$
|
259
|
|
|
$
|
12,186
|
|
|
$
|
(2,544
|
)
|
|
$
|
(2,887
|
)
|
|
$
|
(3
|
)
|
|
$
|
7,011
|
|
|
$
|
1,366
|
|
|
$
|
8,377
|
|
1.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
|
|
Quarter Ended September 30,
|
|
Nine Months Ended September 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
(In millions)
|
||||||||||||||
Oil and Gas Property:
|
|
|
|
|
|
|
|
|
||||||||
Proved
|
|
$
|
—
|
|
|
$
|
355
|
|
|
$
|
—
|
|
|
$
|
423
|
|
Unproved
|
|
160
|
|
|
114
|
|
|
214
|
|
|
222
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
|
|
(In millions)
|
||||||
Cash and cash equivalents
|
|
$
|
1,846
|
|
|
$
|
1,377
|
|
Restricted cash
|
|
96
|
|
|
—
|
|
||
Total cash, cash equivalents, and restricted cash shown in the statement of consolidated cash flows
|
|
$
|
1,942
|
|
|
$
|
1,377
|
|
2.
|
ACQUISITIONS AND DIVESTITURES
|
|
|
For the Quarter Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
(In millions)
|
||||||||||||||
Loss from Australia divestiture
|
|
$
|
—
|
|
|
$
|
(23
|
)
|
|
$
|
—
|
|
|
$
|
(23
|
)
|
Loss from Argentina divestiture
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(10
|
)
|
||||
Loss from discontinued operations, net of tax
|
|
$
|
—
|
|
|
$
|
(33
|
)
|
|
$
|
—
|
|
|
$
|
(33
|
)
|
|
|
|
|
Put Options
(1)(2)
|
||
Production Period
|
|
Settlement Index
|
|
Mbbls
|
|
Weighted Average Strike Price
|
October—December 2017
|
|
NYMEX WTI
|
|
8,464
|
|
$50.00
|
October—December 2017
|
|
Dated Brent
|
|
7,636
|
|
$51.00
|
(1)
|
The remaining unamortized premium paid as of
September 30, 2017
, was
$50 million
.
|
(2)
|
Subsequent to
September 30, 2017
, Apache entered into put option contracts settling against Dated Brent totaling
3,650
Mbbls with a strike price of
$50
for the calendar year 2018.
|
|
|
|
|
Fixed-Price Swaps
|
|
Collars
(3)
|
|
Call Options
(4)
|
||||||||
Production Period
|
|
Settlement Index
|
|
Mbbls
|
|
Weighted Average Fixed Price
|
|
Mbbls
|
|
Weighted Average Floor Price
|
|
Weighted Average Ceiling Price
|
|
Mbbls
|
|
Strike Price
|
January—June 2018
|
|
NYMEX WTI
|
|
2,715
|
|
$51.23
|
|
2,715
|
|
$45.00
|
|
$56.45
|
|
—
|
|
—
|
January—June 2018
|
|
Dated Brent
|
|
2,172
|
|
$54.57
|
|
2,172
|
|
$50.00
|
|
$58.77
|
|
—
|
|
—
|
January—December 2018
|
|
NYMEX WTI
|
|
—
|
|
—
|
|
6,023
|
|
$45.00
|
|
$57.02
|
|
6,023
|
|
$60.00
|
(3)
|
Subsequent to
September 30, 2017
, Apache entered into crude oil contracts settling against NYMEX WTI totaling
730
Mbbls with a floor and ceiling of
$45.00
and
$56.90
, respectively, for the calendar year 2018.
|
(4)
|
The remaining unamortized premium paid as of
September 30, 2017
, was
$9 million
.
|
|
|
|
|
Fixed-Price Swaps
(1)
|
||
Production Period
|
|
Settlement Index
|
|
MMBtu
(in 000’s)
|
|
Weighted Average Fixed Price
|
October—December 2017
|
|
NYMEX Henry Hub
|
|
4,370
|
|
$3.32
|
January—March 2018
|
|
NYMEX Henry Hub
|
|
13,500
|
|
$3.39
|
January—June 2018
|
|
NYMEX Henry Hub
|
|
22,625
|
|
$3.17
|
April—June 2018
|
|
NYMEX Henry Hub
|
|
16,835
|
|
$2.92
|
July—December 2018
|
|
NYMEX Henry Hub
|
|
18,400
|
|
$2.97
|
(1)
|
Subsequent to
September 30, 2017
, Apache entered into fixed-price natural gas swaps settling against NYMEX Henry Hub totaling
15,180,000
MMBtu with a weighted average fixed-price of
$2.95
for the second half of 2018.
|
Production Period
|
|
Settlement Index
|
|
MMBtu
(in 000’s)
|
|
Weighted Average Price Differential
|
January—March 2018
|
|
NYMEX Henry Hub/Waha
|
|
9,450
|
|
$(0.43)
|
July—December 2018
|
|
NYMEX Henry Hub/Waha
|
|
33,120
|
|
$(0.53)
|
October—December 2018
|
|
NYMEX Henry Hub/Waha
|
|
1,380
|
|
$(0.51)
|
January—March 2019
|
|
NYMEX Henry Hub/Waha
|
|
1,350
|
|
$(0.54)
|
January—June 2019
|
|
NYMEX Henry Hub/Waha
|
|
32,580
|
|
$(0.53)
|
January—December 2019
|
|
NYMEX Henry Hub/Waha
|
|
14,600
|
|
$(0.45)
|
|
|
Fair Value Measurements Using
|
|
|
|
|
|
|
||||||||||||||||
|
|
Quoted Price in Active Markets (Level 1)
|
|
Significant Other Inputs (Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
|
Total Fair Value
|
|
Netting
(1)
|
|
Carrying Amount
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commodity Derivative Instruments
|
|
$
|
—
|
|
|
$
|
24
|
|
|
$
|
—
|
|
|
$
|
24
|
|
|
$
|
(7
|
)
|
|
$
|
17
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commodity Derivative Instruments
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|
(7
|
)
|
|
—
|
|
||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commodity Derivative Instruments
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commodity Derivative Instruments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(1)
|
The derivative fair values are based on analysis of each contract on a gross basis, excluding the impact of netting agreements with counterparties.
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
|
|
(In millions)
|
||||||
Current Assets: Prepaid assets and other
|
|
$
|
13
|
|
|
$
|
—
|
|
Other Assets: Deferred charges and other
|
|
4
|
|
|
—
|
|
||
Total Assets
|
|
$
|
17
|
|
|
$
|
—
|
|
|
|
For the Quarter Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
(In millions)
|
||||||||||||||
Realized gain (loss):
|
|
|
|
|
|
|
|
|
||||||||
Derivative settlements, realized gain
|
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
23
|
|
|
$
|
—
|
|
Amortization of put premium, realized loss
|
|
(50
|
)
|
|
—
|
|
|
(50
|
)
|
|
—
|
|
||||
Unrealized loss
|
|
(83
|
)
|
|
—
|
|
|
(42
|
)
|
|
—
|
|
||||
Derivative instrument losses, net
|
|
$
|
(110
|
)
|
|
$
|
—
|
|
|
$
|
(69
|
)
|
|
$
|
—
|
|
5.
|
OTHER CURRENT LIABILITIES
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
|
|
(In millions)
|
||||||
Accrued operating expenses
|
|
$
|
73
|
|
|
$
|
110
|
|
Accrued exploration and development
|
|
691
|
|
|
463
|
|
||
Accrued compensation and benefits
|
|
99
|
|
|
201
|
|
||
Accrued interest
|
|
108
|
|
|
145
|
|
||
Accrued income taxes
|
|
68
|
|
|
22
|
|
||
Current asset retirement obligation
|
|
35
|
|
|
66
|
|
||
Refundable deposits
|
|
149
|
|
|
174
|
|
||
Other
|
|
109
|
|
|
77
|
|
||
Total other current liabilities
|
|
$
|
1,332
|
|
|
$
|
1,258
|
|
6.
|
ASSET RETIREMENT OBLIGATION
|
|
|
(In millions)
|
||
Asset retirement obligation at December 31, 2016
|
|
$
|
2,498
|
|
Liabilities incurred
|
|
39
|
|
|
Liabilities divested
|
|
(810
|
)
|
|
Liabilities settled
|
|
(30
|
)
|
|
Accretion expense
|
|
103
|
|
|
Revisions in estimated liabilities
|
|
66
|
|
|
Asset retirement obligation at September 30, 2017
|
|
1,866
|
|
|
Less current portion
|
|
35
|
|
|
Asset retirement obligation, long-term
|
|
$
|
1,831
|
|
7.
|
INCOME TAXES
|
8.
|
DEBT AND FINANCING COSTS
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||||||||||
|
|
Carrying
Amount
|
|
Fair
Value
|
|
Carrying
Amount
|
|
Fair
Value
|
||||||||
|
|
(In millions)
|
||||||||||||||
Commercial paper and committed bank facilities
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Notes and debentures
|
|
8,483
|
|
|
9,094
|
|
|
8,544
|
|
|
9,183
|
|
||||
Total Debt
|
|
$
|
8,483
|
|
|
$
|
9,094
|
|
|
$
|
8,544
|
|
|
$
|
9,183
|
|
|
|
September 30, 2017
|
|
December 31, 2016
|
||||
|
|
(In millions)
|
||||||
Debt before unamortized discount and debt issuance costs
|
|
$
|
8,580
|
|
|
$
|
8,650
|
|
Unamortized discount
|
|
(48
|
)
|
|
(50
|
)
|
||
Debt issuance costs
|
|
(49
|
)
|
|
(56
|
)
|
||
Total debt
|
|
8,483
|
|
|
8,544
|
|
||
Current maturities
|
|
(550
|
)
|
|
—
|
|
||
Long-term debt
|
|
$
|
7,933
|
|
|
$
|
8,544
|
|
|
|
For the Quarter Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
(In millions)
|
||||||||||||||
Interest expense
|
|
$
|
113
|
|
|
$
|
116
|
|
|
$
|
344
|
|
|
$
|
348
|
|
Amortization of deferred loan costs
|
|
3
|
|
|
2
|
|
|
7
|
|
|
5
|
|
||||
Capitalized interest
|
|
(12
|
)
|
|
(13
|
)
|
|
(39
|
)
|
|
(36
|
)
|
||||
Loss on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Interest income
|
|
(3
|
)
|
|
(3
|
)
|
|
(13
|
)
|
|
(6
|
)
|
||||
Financing costs, net
|
|
$
|
101
|
|
|
$
|
102
|
|
|
$
|
300
|
|
|
$
|
311
|
|
9.
|
COMMITMENTS AND CONTINGENCIES
|
10.
|
CAPITAL STOCK
|
|
|
For the Quarter Ended September 30,
|
||||||||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||||||||
|
|
Income
|
|
Shares
|
|
Per Share
|
|
Loss
|
|
Shares
|
|
Per Share
|
||||||||||
|
|
(In millions, except per share amounts)
|
||||||||||||||||||||
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations
|
|
$
|
63
|
|
|
381
|
|
|
$
|
0.16
|
|
|
$
|
(574
|
)
|
|
380
|
|
|
$
|
(1.51
|
)
|
Loss from discontinued operations
|
|
—
|
|
|
381
|
|
|
—
|
|
|
(33
|
)
|
|
380
|
|
|
(0.09
|
)
|
||||
Income (loss) attributable to common stock
|
|
$
|
63
|
|
|
381
|
|
|
$
|
0.16
|
|
|
$
|
(607
|
)
|
|
380
|
|
|
$
|
(1.60
|
)
|
Effect of Dilutive Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock options and other
|
|
$
|
—
|
|
|
2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations
|
|
$
|
63
|
|
|
383
|
|
|
$
|
0.16
|
|
|
$
|
(574
|
)
|
|
380
|
|
|
$
|
(1.51
|
)
|
Loss from discontinued operations
|
|
—
|
|
|
383
|
|
|
—
|
|
|
(33
|
)
|
|
380
|
|
|
(0.09
|
)
|
||||
Income (loss) attributable to common stock
|
|
$
|
63
|
|
|
383
|
|
|
$
|
0.16
|
|
|
$
|
(607
|
)
|
|
380
|
|
|
$
|
(1.60
|
)
|
|
|
For the Nine Months Ended September 30,
|
||||||||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||||||||
|
|
Income
|
|
Shares
|
|
Per Share
|
|
Loss
|
|
Shares
|
|
Per Share
|
||||||||||
|
|
(In millions, except per share amounts)
|
||||||||||||||||||||
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations
|
|
$
|
848
|
|
|
381
|
|
|
$
|
2.23
|
|
|
$
|
(1,190
|
)
|
|
379
|
|
|
$
|
(3.14
|
)
|
Loss from discontinued operations
|
|
—
|
|
|
381
|
|
|
—
|
|
|
(33
|
)
|
|
379
|
|
|
(0.08
|
)
|
||||
Income (loss) attributable to common stock
|
|
$
|
848
|
|
|
381
|
|
|
$
|
2.23
|
|
|
$
|
(1,223
|
)
|
|
379
|
|
|
$
|
(3.22
|
)
|
Effect of Dilutive Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock options and other
|
|
$
|
—
|
|
|
2
|
|
|
$
|
(0.01
|
)
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations
|
|
$
|
848
|
|
|
383
|
|
|
$
|
2.22
|
|
|
$
|
(1,190
|
)
|
|
379
|
|
|
$
|
(3.14
|
)
|
Loss from discontinued operations
|
|
—
|
|
|
383
|
|
|
—
|
|
|
(33
|
)
|
|
379
|
|
|
(0.08
|
)
|
||||
Income (loss) attributable to common stock
|
|
$
|
848
|
|
|
383
|
|
|
$
|
2.22
|
|
|
$
|
(1,223
|
)
|
|
379
|
|
|
$
|
(3.22
|
)
|
11.
|
ACCUMULATED OTHER COMPREHENSIVE LOSS
|
|
|
Currency Translation Adjustment
|
|
Pension and Postretirement Benefit Plan
|
|
Total
|
||||||
|
|
(In millions)
|
||||||||||
Accumulated other comprehensive loss at December 31, 2016
|
|
$
|
(109
|
)
|
|
$
|
(3
|
)
|
|
$
|
(112
|
)
|
Currency translation adjustment divested
(1)
|
|
109
|
|
|
—
|
|
|
109
|
|
|||
Accumulated other comprehensive loss at September 30, 2017
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
(3
|
)
|
(1)
|
Currency translation adjustments resulting from translating the Canadian subsidiaries’ financial statements into U.S. dollar equivalents, prior to adoption of the U.S. dollar as their functional currency, were reported separately and accumulated in other comprehensive loss. This currency translation loss was recognized as a reduction of the net gain on divestiture during the third quarter of 2017 in connection with the Canada divestitures. For more information regarding these divestitures, please refer to Note 2—Acquisitions and Divestitures.
|
12.
|
BUSINESS SEGMENT INFORMATION
|
|
|
United
States
|
|
Canada
(1)
|
|
Egypt
(2)
|
|
North Sea
|
|
Other
International
|
|
Total
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
For the Quarter Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Oil and Gas Production Revenues
|
|
$
|
550
|
|
|
$
|
36
|
|
|
$
|
543
|
|
|
$
|
260
|
|
|
$
|
—
|
|
|
$
|
1,389
|
|
Operating Income (Loss)
(3)
|
|
$
|
(114
|
)
|
|
$
|
(1
|
)
|
|
$
|
226
|
|
|
$
|
16
|
|
|
$
|
(1
|
)
|
|
$
|
126
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain on divestitures, net
|
|
|
|
|
|
|
|
|
|
|
|
296
|
|
|||||||||||
Derivative instrument losses, net
|
|
|
|
|
|
|
|
|
|
|
|
(110
|
)
|
|||||||||||
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
(98
|
)
|
|||||||||||
Transaction, reorganization, and separation
|
|
|
|
|
|
|
|
|
|
|
|
(20
|
)
|
|||||||||||
Financing costs, net
|
|
|
|
|
|
|
|
|
|
|
|
(101
|
)
|
|||||||||||
Income Before Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
$
|
93
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
For the Nine Months Ended September 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Oil and Gas Production Revenues
|
|
$
|
1,593
|
|
|
$
|
231
|
|
|
$
|
1,655
|
|
|
$
|
768
|
|
|
$
|
—
|
|
|
$
|
4,247
|
|
Operating Income (Loss)
(3)
|
|
$
|
(71
|
)
|
|
$
|
(33
|
)
|
|
$
|
740
|
|
|
$
|
59
|
|
|
$
|
(24
|
)
|
|
$
|
671
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain on divestitures, net
|
|
|
|
|
|
|
|
|
|
|
|
616
|
|
|||||||||||
Derivative instrument losses, net
|
|
|
|
|
|
|
|
|
|
|
|
(69
|
)
|
|||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
43
|
|
|||||||||||
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
(307
|
)
|
|||||||||||
Transaction, reorganization, and separation
|
|
|
|
|
|
|
|
|
|
|
|
(14
|
)
|
|||||||||||
Financing costs, net
|
|
|
|
|
|
|
|
|
|
|
|
(300
|
)
|
|||||||||||
Income Before Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
$
|
640
|
|
||||||||||
Total Assets
|
|
$
|
13,105
|
|
|
$
|
—
|
|
|
$
|
4,906
|
|
|
$
|
3,770
|
|
|
$
|
54
|
|
|
$
|
21,835
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
|
Canada
(1)
|
|
Egypt
(2)
|
|
North Sea
|
|
Other
International
|
|
Total
|
||||||||||||
|
|
(In millions)
|
||||||||||||||||||||||
For the Quarter Ended September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Oil and Gas Production Revenues
|
|
$
|
524
|
|
|
$
|
87
|
|
|
$
|
581
|
|
|
$
|
247
|
|
|
$
|
—
|
|
|
$
|
1,439
|
|
Operating Income (Loss)
(4)
|
|
$
|
(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)
(4)
|
|
$
|
(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
|
|
(1)
|
During the third quarter of 2017, Apache completed the sale of its Canadian operations. For more information regarding this divestiture, please refer to Note 2—Acquisitions and Divestitures.
|
(2)
|
Includes a noncontrolling interest in Egypt.
|
(3)
|
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. includes leasehold impairments totaling
$160 million
for the
third
quarter of
2017
. The operating income (loss) of U.S., Canada, and North Sea includes leasehold and other asset impairments totaling
$212 million
,
$2 million
, and
$8 million
, respectively, for the first
nine
months of
2017
.
|
(4)
|
The operating income (loss) of U.S., Canada, and North Sea includes leasehold, property, and other asset impairments totaling
$46 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 leasehold, property, and other asset impairments totaling
$212 million
,
$433 million
, and
$586 million
, respectively, for the first
nine
months of
2016
.
|
ITEM 2
.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
North America equivalent production decreased
17 percent
for the quarter relative to the
2016
period, reflecting Apache’s exit from Canada. Excluding Canada, Apache’s North America equivalent production decreased
6 percent
, in line with the Company’s expectations given the significant reduction in capital investments over the preceding two years and the allocation of a significant portion of our 2017 capital investments to infrastructure at Alpine High.
|
•
|
Third
-quarter equivalent production from the Permian Basin region, which accounts for more than half of Apache’s total North American production,
increased
1 percent
from the
third
quarter of
2016
, which was driven by our Alpine High discovery and strong performance in the Midland Basin. Third-quarter production increased
11 percent
from the prior sequential quarter, a reflection of increased activity and the startup of Alpine High production.
|
•
|
Drilling and infrastructure development activities continue at Alpine High; specifically:
|
◦
|
First production from the Alpine High play was achieved in early May 2017. Net production averaged approximately 13.3 Mboe/d during the third quarter, and we anticipate production of 25 Mboe/d by the end of the year.
|
◦
|
During the first nine months of 2017, Apache invested $389 million in midstream facilities at Alpine High, with development ongoing.
|
◦
|
Three processing facilities are currently operating with a combined gross inlet capacity of 200 million cubic feet of natural gas per day (MMcf/d). Infrastructure buildout for two additional central processing facilities has been slightly delayed by a quarter as a result of Hurricane Harvey-related damage to Houston-area manufacturing facilities that are providing key infrastructure equipment.
|
•
|
In 2017, Apache announced three separate transactions to sell its subsidiary Apache Canada Ltd. (ACL) and exit its Canadian operations. The sale of assets at Midale and House Mountain, located in Saskatchewan and Alberta, closed on June 30, 2017 for approximately
$228 million
of cash proceeds. The two remaining transactions to sell ACL and Provost assets in Alberta closed in August 2017 for approximately
$478 million
of cash proceeds. The sale of Apache’s Canadian operations further streamlines its portfolio, enabling the Company to allocate a higher percentage of capital to the Permian Basin.
|
•
|
The Egypt region net equivalent production
decreased
12 percent
from the
third
quarter of
2016
despite a decline of only
3 percent
in gross production, a function of the Company’s production-sharing contracts. In August 2017, the Company received final award of two new concessions totaling 1.6 million net acres. At the end of September 2017, the Company began acquiring high resolution 3D seismic in the West Kalabsha concession and plans to expand this seismic activity to cover the majority of its acreage.
|
•
|
The North Sea region average daily production
decreased
5 percent
from the
third
quarter of
2016
, primarily the result of extended turnaround activities in the third quarter of 2017 and natural well decline. The Callater discovery, which came online in late May 2017, has two wells producing with a third offset well expected to commence production later in the fourth quarter of 2017.
|
|
|
For the Quarter Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||
|
|
$
Value
|
|
%
Contribution
|
|
$
Value
|
|
%
Contribution
|
|
$
Value
|
|
%
Contribution
|
|
$
Value
|
|
%
Contribution
|
||||||||||||
|
|
($ in millions)
|
||||||||||||||||||||||||||
Total Oil Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
United States
|
|
$
|
381
|
|
|
36
|
%
|
|
$
|
377
|
|
|
34
|
%
|
|
$
|
1,133
|
|
|
35
|
%
|
|
$
|
1,099
|
|
|
36
|
%
|
Canada
|
|
14
|
|
|
1
|
%
|
|
47
|
|
|
4
|
%
|
|
110
|
|
|
3
|
%
|
|
132
|
|
|
4
|
%
|
||||
North America
|
|
395
|
|
|
37
|
%
|
|
424
|
|
|
38
|
%
|
|
1,243
|
|
|
38
|
%
|
|
1,231
|
|
|
40
|
%
|
||||
Egypt
(1)
|
|
442
|
|
|
41
|
%
|
|
476
|
|
|
43
|
%
|
|
1,351
|
|
|
41
|
%
|
|
1,209
|
|
|
40
|
%
|
||||
North Sea
|
|
233
|
|
|
22
|
%
|
|
217
|
|
|
19
|
%
|
|
698
|
|
|
21
|
%
|
|
617
|
|
|
20
|
%
|
||||
International
(1)
|
|
675
|
|
|
63
|
%
|
|
693
|
|
|
62
|
%
|
|
2,049
|
|
|
62
|
%
|
|
1,826
|
|
|
60
|
%
|
||||
Total
(1)
|
|
$
|
1,070
|
|
|
100
|
%
|
|
$
|
1,117
|
|
|
100
|
%
|
|
$
|
3,292
|
|
|
100
|
%
|
|
$
|
3,057
|
|
|
100
|
%
|
Total Natural Gas Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
United States
|
|
$
|
97
|
|
|
41
|
%
|
|
$
|
98
|
|
|
37
|
%
|
|
$
|
266
|
|
|
37
|
%
|
|
$
|
222
|
|
|
32
|
%
|
Canada
|
|
19
|
|
|
8
|
%
|
|
36
|
|
|
14
|
%
|
|
104
|
|
|
14
|
%
|
|
100
|
|
|
14
|
%
|
||||
North America
|
|
116
|
|
|
49
|
%
|
|
134
|
|
|
51
|
%
|
|
370
|
|
|
51
|
%
|
|
322
|
|
|
46
|
%
|
||||
Egypt
(1)
|
|
98
|
|
|
41
|
%
|
|
103
|
|
|
39
|
%
|
|
295
|
|
|
41
|
%
|
|
298
|
|
|
43
|
%
|
||||
North Sea
|
|
24
|
|
|
10
|
%
|
|
26
|
|
|
10
|
%
|
|
61
|
|
|
8
|
%
|
|
75
|
|
|
11
|
%
|
||||
International
(1)
|
|
122
|
|
|
51
|
%
|
|
129
|
|
|
49
|
%
|
|
356
|
|
|
49
|
%
|
|
373
|
|
|
54
|
%
|
||||
Total
(1)
|
|
$
|
238
|
|
|
100
|
%
|
|
$
|
263
|
|
|
100
|
%
|
|
$
|
726
|
|
|
100
|
%
|
|
$
|
695
|
|
|
100
|
%
|
Total Natural Gas Liquids (NGL) Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
United States
|
|
$
|
72
|
|
|
89
|
%
|
|
$
|
49
|
|
|
83
|
%
|
|
$
|
194
|
|
|
85
|
%
|
|
$
|
132
|
|
|
82
|
%
|
Canada
|
|
3
|
|
|
4
|
%
|
|
4
|
|
|
7
|
%
|
|
17
|
|
|
7
|
%
|
|
11
|
|
|
7
|
%
|
||||
North America
|
|
75
|
|
|
93
|
%
|
|
53
|
|
|
90
|
%
|
|
211
|
|
|
92
|
%
|
|
143
|
|
|
89
|
%
|
||||
Egypt
(1)
|
|
3
|
|
|
4
|
%
|
|
2
|
|
|
3
|
%
|
|
9
|
|
|
4
|
%
|
|
8
|
|
|
5
|
%
|
||||
North Sea
|
|
3
|
|
|
3
|
%
|
|
4
|
|
|
7
|
%
|
|
9
|
|
|
4
|
%
|
|
9
|
|
|
6
|
%
|
||||
International
(1)
|
|
6
|
|
|
7
|
%
|
|
6
|
|
|
10
|
%
|
|
18
|
|
|
8
|
%
|
|
17
|
|
|
11
|
%
|
||||
Total
(1)
|
|
$
|
81
|
|
|
100
|
%
|
|
$
|
59
|
|
|
100
|
%
|
|
$
|
229
|
|
|
100
|
%
|
|
$
|
160
|
|
|
100
|
%
|
Total Oil and Gas Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
United States
|
|
$
|
550
|
|
|
40
|
%
|
|
$
|
524
|
|
|
36
|
%
|
|
$
|
1,593
|
|
|
38
|
%
|
|
$
|
1,453
|
|
|
37
|
%
|
Canada
|
|
36
|
|
|
2
|
%
|
|
87
|
|
|
6
|
%
|
|
231
|
|
|
5
|
%
|
|
243
|
|
|
6
|
%
|
||||
North America
|
|
586
|
|
|
42
|
%
|
|
611
|
|
|
42
|
%
|
|
1,824
|
|
|
43
|
%
|
|
1,696
|
|
|
43
|
%
|
||||
Egypt
(1)
|
|
543
|
|
|
39
|
%
|
|
581
|
|
|
41
|
%
|
|
1,655
|
|
|
39
|
%
|
|
1,515
|
|
|
39
|
%
|
||||
North Sea
|
|
260
|
|
|
19
|
%
|
|
247
|
|
|
17
|
%
|
|
768
|
|
|
18
|
%
|
|
701
|
|
|
18
|
%
|
||||
International
(1)
|
|
803
|
|
|
58
|
%
|
|
828
|
|
|
58
|
%
|
|
2,423
|
|
|
57
|
%
|
|
2,216
|
|
|
57
|
%
|
||||
Total
(1)
|
|
$
|
1,389
|
|
|
100
|
%
|
|
$
|
1,439
|
|
|
100
|
%
|
|
$
|
4,247
|
|
|
100
|
%
|
|
$
|
3,912
|
|
|
100
|
%
|
(1)
|
Includes revenues attributable to a noncontrolling interest in Egypt.
|
|
|
For the Quarter Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||||
|
|
2017
|
|
Increase
(Decrease)
|
|
2016
|
|
2017
|
|
Increase
(Decrease)
|
|
2016
|
||||||
Oil Volume – b/d
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
|
90,883
|
|
|
(8
|
)%
|
|
98,269
|
|
|
89,228
|
|
|
(17
|
)%
|
|
106,924
|
|
Canada
|
|
3,441
|
|
|
(73
|
)%
|
|
12,619
|
|
|
8,881
|
|
|
(33
|
)%
|
|
13,331
|
|
North America
|
|
94,324
|
|
|
(15
|
)%
|
|
110,888
|
|
|
98,109
|
|
|
(18
|
)%
|
|
120,255
|
|
Egypt
(1)(2)
|
|
93,749
|
|
|
(15
|
)%
|
|
110,809
|
|
|
97,447
|
|
|
(7
|
)%
|
|
105,118
|
|
North Sea
|
|
49,945
|
|
|
2
|
%
|
|
49,192
|
|
|
49,274
|
|
|
(11
|
)%
|
|
55,071
|
|
International
|
|
143,694
|
|
|
(10
|
)%
|
|
160,001
|
|
|
146,721
|
|
|
(8
|
)%
|
|
160,189
|
|
Total
|
|
238,018
|
|
|
(12
|
)%
|
|
270,889
|
|
|
244,830
|
|
|
(13
|
)%
|
|
280,444
|
|
Natural Gas Volume – Mcf/d
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
|
404,486
|
|
|
2
|
%
|
|
395,062
|
|
|
378,625
|
|
|
(6
|
)%
|
|
404,282
|
|
Canada
|
|
107,524
|
|
|
(54
|
)%
|
|
233,635
|
|
|
175,787
|
|
|
(29
|
)%
|
|
248,912
|
|
North America
|
|
512,010
|
|
|
(19
|
)%
|
|
628,697
|
|
|
554,412
|
|
|
(15
|
)%
|
|
653,194
|
|
Egypt
(1)(2)
|
|
378,426
|
|
|
(7
|
)%
|
|
405,863
|
|
|
389,533
|
|
|
(4
|
)%
|
|
403,832
|
|
North Sea
|
|
50,057
|
|
|
(28
|
)%
|
|
69,509
|
|
|
42,800
|
|
|
(36
|
)%
|
|
66,884
|
|
International
|
|
428,483
|
|
|
(10
|
)%
|
|
475,372
|
|
|
432,333
|
|
|
(8
|
)%
|
|
470,716
|
|
Total
|
|
940,493
|
|
|
(15
|
)%
|
|
1,104,069
|
|
|
986,745
|
|
|
(12
|
)%
|
|
1,123,910
|
|
NGL Volume – b/d
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
|
49,149
|
|
|
(13
|
)%
|
|
56,355
|
|
|
48,063
|
|
|
(14
|
)%
|
|
55,897
|
|
Canada
|
|
2,183
|
|
|
(64
|
)%
|
|
6,039
|
|
|
3,780
|
|
|
(36
|
)%
|
|
5,879
|
|
North America
|
|
51,332
|
|
|
(18
|
)%
|
|
62,394
|
|
|
51,843
|
|
|
(16
|
)%
|
|
61,776
|
|
Egypt
(1)(2)
|
|
916
|
|
|
(19
|
)%
|
|
1,124
|
|
|
917
|
|
|
(18
|
)%
|
|
1,120
|
|
North Sea
|
|
1,219
|
|
|
(28
|
)%
|
|
1,697
|
|
|
1,044
|
|
|
(33
|
)%
|
|
1,557
|
|
International
|
|
2,135
|
|
|
(24
|
)%
|
|
2,821
|
|
|
1,961
|
|
|
(27
|
)%
|
|
2,677
|
|
Total
|
|
53,467
|
|
|
(18
|
)%
|
|
65,215
|
|
|
53,804
|
|
|
(17
|
)%
|
|
64,453
|
|
BOE per day
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States
|
|
207,447
|
|
|
(6
|
)%
|
|
220,468
|
|
|
200,396
|
|
|
(13
|
)%
|
|
230,202
|
|
Canada
|
|
23,544
|
|
|
(59
|
)%
|
|
57,597
|
|
|
41,959
|
|
|
(31
|
)%
|
|
60,695
|
|
North America
|
|
230,991
|
|
|
(17
|
)%
|
|
278,065
|
|
|
242,355
|
|
|
(17
|
)%
|
|
290,897
|
|
Egypt
(2)
|
|
157,737
|
|
|
(12
|
)%
|
|
179,575
|
|
|
163,286
|
|
|
(6
|
)%
|
|
173,544
|
|
North Sea
(4)
|
|
59,507
|
|
|
(5
|
)%
|
|
62,475
|
|
|
57,451
|
|
|
(15
|
)%
|
|
67,775
|
|
International
|
|
217,244
|
|
|
(10
|
)%
|
|
242,050
|
|
|
220,737
|
|
|
(9
|
)%
|
|
241,319
|
|
Total
|
|
448,235
|
|
|
(14
|
)%
|
|
520,115
|
|
|
463,092
|
|
|
(13
|
)%
|
|
532,216
|
|
(1)
|
Gross oil, natural gas, and NGL production in Egypt for the
third
quarter and
nine
-month period of
2017
and
2016
were as follows:
|
|
|
For the Quarter Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Oil (b/d)
|
|
201,151
|
|
|
210,755
|
|
|
196,781
|
|
|
210,939
|
|
Natural Gas (Mcf/d)
|
|
818,350
|
|
|
826,548
|
|
|
813,880
|
|
|
828,950
|
|
NGL (b/d)
|
|
1,526
|
|
|
1,853
|
|
|
1,514
|
|
|
1,918
|
|
(2)
|
Includes production volumes per day attributable to a noncontrolling interest in Egypt for the
third
quarter and
nine
-month period of
2017
and
2016
of:
|
|
|
For the Quarter Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Oil (b/d)
|
|
31,275
|
|
|
36,839
|
|
|
32,573
|
|
|
34,964
|
|
Natural Gas (Mcf/d)
|
|
126,459
|
|
|
135,233
|
|
|
130,263
|
|
|
134,591
|
|
NGL (b/d)
|
|
305
|
|
|
374
|
|
|
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 were
57,207
boe/d and
65,171
boe/d for the
third
quarter of
2017
and
2016
, respectively, and
57,963
boe/d and
67,222
boe/d for the first
nine
months of
2017
and
2016
, 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,
|
||||||||||||||||||
|
|
2017
|
|
Increase
(Decrease) |
|
2016
|
|
2017
|
|
Increase
(Decrease) |
|
2016
|
||||||||||
Average Oil Price - Per barrel
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States
|
|
$
|
45.68
|
|
|
9
|
%
|
|
$
|
41.83
|
|
|
$
|
46.54
|
|
|
24
|
%
|
|
$
|
37.53
|
|
Canada
|
|
42.23
|
|
|
5
|
%
|
|
40.17
|
|
|
45.25
|
|
|
26
|
%
|
|
36.04
|
|
||||
North America
|
|
45.56
|
|
|
9
|
%
|
|
41.65
|
|
|
46.42
|
|
|
24
|
%
|
|
37.36
|
|
||||
Egypt
|
|
51.23
|
|
|
10
|
%
|
|
46.54
|
|
|
50.78
|
|
|
21
|
%
|
|
41.97
|
|
||||
North Sea
|
|
53.11
|
|
|
17
|
%
|
|
45.47
|
|
|
51.35
|
|
|
24
|
%
|
|
41.28
|
|
||||
International
|
|
51.87
|
|
|
12
|
%
|
|
46.20
|
|
|
50.97
|
|
|
22
|
%
|
|
41.74
|
|
||||
Total
|
|
49.34
|
|
|
11
|
%
|
|
44.35
|
|
|
49.15
|
|
|
23
|
%
|
|
39.86
|
|
||||
Average Natural Gas Price - Per Mcf
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States
|
|
$
|
2.62
|
|
|
(2
|
)%
|
|
$
|
2.66
|
|
|
$
|
2.58
|
|
|
29
|
%
|
|
$
|
2.00
|
|
Canada
|
|
1.90
|
|
|
11
|
%
|
|
1.71
|
|
|
2.17
|
|
|
48
|
%
|
|
1.47
|
|
||||
North America
|
|
2.47
|
|
|
7
|
%
|
|
2.31
|
|
|
2.45
|
|
|
36
|
%
|
|
1.80
|
|
||||
Egypt
|
|
2.81
|
|
|
2
|
%
|
|
2.75
|
|
|
2.77
|
|
|
3
|
%
|
|
2.69
|
|
||||
North Sea
|
|
5.27
|
|
|
27
|
%
|
|
4.14
|
|
|
5.27
|
|
|
28
|
%
|
|
4.12
|
|
||||
International
|
|
3.10
|
|
|
5
|
%
|
|
2.96
|
|
|
3.02
|
|
|
4
|
%
|
|
2.89
|
|
||||
Total
|
|
2.75
|
|
|
6
|
%
|
|
2.59
|
|
|
2.70
|
|
|
19
|
%
|
|
2.26
|
|
||||
Average NGL Price - Per barrel
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
United States
|
|
$
|
15.77
|
|
|
64
|
%
|
|
$
|
9.59
|
|
|
$
|
14.75
|
|
|
71
|
%
|
|
$
|
8.65
|
|
Canada
|
|
15.80
|
|
|
159
|
%
|
|
6.10
|
|
|
16.39
|
|
|
148
|
%
|
|
6.61
|
|
||||
North America
|
|
15.77
|
|
|
70
|
%
|
|
9.25
|
|
|
14.87
|
|
|
76
|
%
|
|
8.46
|
|
||||
Egypt
|
|
36.47
|
|
|
30
|
%
|
|
28.12
|
|
|
35.98
|
|
|
31
|
%
|
|
27.54
|
|
||||
North Sea
|
|
26.92
|
|
|
10
|
%
|
|
24.45
|
|
|
30.51
|
|
|
40
|
%
|
|
21.82
|
|
||||
International
|
|
31.02
|
|
|
20
|
%
|
|
25.91
|
|
|
33.07
|
|
|
37
|
%
|
|
24.21
|
|
||||
Total
|
|
16.38
|
|
|
64
|
%
|
|
9.97
|
|
|
15.53
|
|
|
70
|
%
|
|
9.11
|
|
|
|
For the Quarter Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||
|
|
(In millions)
|
|
(Per boe)
|
|
(In millions)
|
|
(Per boe)
|
||||||||||||||||||||||||
Lease operating expenses
(1)
|
|
$
|
358
|
|
|
$
|
382
|
|
|
$
|
8.74
|
|
|
$
|
7.94
|
|
|
$
|
1,066
|
|
|
$
|
1,119
|
|
|
$
|
8.42
|
|
|
$
|
7.68
|
|
Gathering and transportation
(1)
|
|
39
|
|
|
51
|
|
|
0.91
|
|
|
1.08
|
|
|
144
|
|
|
155
|
|
|
1.13
|
|
|
1.06
|
|
||||||||
Taxes other than income
|
|
46
|
|
|
9
|
|
|
1.12
|
|
|
0.19
|
|
|
117
|
|
|
85
|
|
|
0.93
|
|
|
0.58
|
|
||||||||
Exploration
|
|
231
|
|
|
161
|
|
|
5.60
|
|
|
3.36
|
|
|
431
|
|
|
347
|
|
|
3.41
|
|
|
2.38
|
|
||||||||
General and administrative
|
|
98
|
|
|
102
|
|
|
2.39
|
|
|
2.13
|
|
|
307
|
|
|
298
|
|
|
2.43
|
|
|
2.04
|
|
||||||||
Transaction, reorganization, and separation
|
|
20
|
|
|
12
|
|
|
0.48
|
|
|
0.25
|
|
|
14
|
|
|
36
|
|
|
0.11
|
|
|
0.24
|
|
||||||||
Depreciation, depletion, and amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Oil and gas property and equipment
(1)
|
|
524
|
|
|
610
|
|
|
12.76
|
|
|
12.67
|
|
|
1,598
|
|
|
1,875
|
|
|
12.63
|
|
|
12.87
|
|
||||||||
Other assets
|
|
35
|
|
|
38
|
|
|
0.83
|
|
|
0.79
|
|
|
109
|
|
|
120
|
|
|
0.86
|
|
|
0.82
|
|
||||||||
Asset retirement obligation accretion
|
|
30
|
|
|
40
|
|
|
0.75
|
|
|
0.83
|
|
|
103
|
|
|
116
|
|
|
0.82
|
|
|
0.79
|
|
||||||||
Impairments
|
|
—
|
|
|
836
|
|
|
—
|
|
|
17.47
|
|
|
8
|
|
|
1,009
|
|
|
0.06
|
|
|
6.92
|
|
||||||||
Financing costs, net
|
|
101
|
|
|
102
|
|
|
2.45
|
|
|
2.13
|
|
|
300
|
|
|
311
|
|
|
2.38
|
|
|
2.13
|
|
|
|
For the Quarter Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
(In millions)
|
||||||||||||||
Unproved leasehold impairments
|
|
$
|
160
|
|
|
$
|
114
|
|
|
$
|
214
|
|
|
$
|
222
|
|
Dry hole expense
|
|
38
|
|
|
7
|
|
|
136
|
|
|
38
|
|
||||
Geological and geophysical expense
|
|
12
|
|
|
21
|
|
|
24
|
|
|
30
|
|
||||
Exploration overhead and other
|
|
21
|
|
|
19
|
|
|
57
|
|
|
57
|
|
||||
|
|
$
|
231
|
|
|
$
|
161
|
|
|
$
|
431
|
|
|
$
|
347
|
|
|
|
For the Quarter Ended September 30,
|
|
For the Nine Months Ended September 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
(In millions)
|
||||||||||||||
Interest expense
|
|
$
|
113
|
|
|
$
|
116
|
|
|
$
|
344
|
|
|
$
|
348
|
|
Amortization of deferred loan costs
|
|
3
|
|
|
2
|
|
|
7
|
|
|
5
|
|
||||
Capitalized interest
|
|
(12
|
)
|
|
(13
|
)
|
|
(39
|
)
|
|
(36
|
)
|
||||
Loss on extinguishment of debt
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Interest income
|
|
(3
|
)
|
|
(3
|
)
|
|
(13
|
)
|
|
(6
|
)
|
||||
Financing costs, net
|
|
$
|
101
|
|
|
$
|
102
|
|
|
$
|
300
|
|
|
$
|
311
|
|
|
|
For the Nine Months Ended September 30,
|
||||||
|
|
2017
|
|
2016
|
||||
|
|
(In millions)
|
||||||
Sources of Cash, Cash Equivalents, and Restricted Cash:
|
|
|
|
|
||||
Net cash provided by operating activities
|
|
$
|
1,760
|
|
|
$
|
1,634
|
|
Proceeds from sale of oil and gas properties
|
|
1,404
|
|
|
74
|
|
||
Other
|
|
—
|
|
|
38
|
|
||
|
|
3,164
|
|
|
1,746
|
|
||
Uses of Cash and Cash Equivalents:
|
|
|
|
|
||||
Capital expenditures
(1)
|
|
$
|
1,855
|
|
|
$
|
1,314
|
|
Leasehold and property acquisitions
|
|
142
|
|
|
169
|
|
||
Payments on fixed-rate debt
|
|
70
|
|
|
1
|
|
||
Dividends paid
|
|
285
|
|
|
284
|
|
||
Distributions to noncontrolling interest
|
|
212
|
|
|
215
|
|
||
Other
|
|
35
|
|
|
—
|
|
||
|
|
2,599
|
|
|
1,983
|
|
||
Increase (decrease) in cash, cash equivalents, and restricted cash
|
|
$
|
565
|
|
|
$
|
(237
|
)
|
(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, 2017
|
|
December 31, 2016
|
||||
|
|
(In millions)
|
||||||
Cash and cash equivalents
|
|
$
|
1,846
|
|
|
$
|
1,377
|
|
Total debt
|
|
8,483
|
|
|
8,544
|
|
||
Equity
|
|
8,377
|
|
|
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
|
–
|
|
3.2
|
–
|
|
3.3
|
–
|
|
*4.1
|
–
|
|
*31.1
|
–
|
|
*31.2
|
–
|
|
*32.1
|
–
|
|
*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:
|
November 2, 2017
|
|
/s/ STEPHEN J. RINEY
|
|
|
|
Stephen J. Riney
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
(Principal Financial Officer)
|
|
|
|
|
Dated:
|
November 2, 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
|
|
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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
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Title:
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Executive Vice President and Chief Financial Officer
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(principal financial officer)
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