Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 30, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-40144 | |
Entity Registrant Name | APA CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 86-1430562 | |
Entity Address, Address Line One | One Post Oak Central, 2000 Post Oak Boulevard, Suite 100 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77056-4400 | |
City Area Code | 713 | |
Local Phone Number | 296-6000 | |
Title of 12(b) Security | Common Stock, $0.625 par value | |
Trading Symbol | APA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 371,192,344 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001841666 | |
Current Fiscal Year End Date | --12-31 |
STATEMENT OF CONSOLIDATED OPERA
STATEMENT OF CONSOLIDATED OPERATIONS (Unaudited) - USD ($) shares in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
REVENUES AND OTHER: | |||
Derivative instrument gains (losses), net | $ (4,000,000) | $ 53,000,000 | |
Gain on divestitures, net | 7,000,000 | 1,000,000 | |
Loss on previously sold Gulf of Mexico properties | (66,000,000) | 0 | |
Other, net | 15,000,000 | (32,000,000) | |
Total revenues and other | 1,903,000,000 | 2,030,000,000 | |
OPERATING EXPENSES: | |||
Lease operating expenses | [1] | 338,000,000 | 321,000,000 |
Taxes other than income | 57,000,000 | 52,000,000 | |
Exploration | 148,000,000 | 52,000,000 | |
General and administrative | 93,000,000 | 65,000,000 | |
Transaction, reorganization, and separation | 27,000,000 | 4,000,000 | |
Depreciation, depletion, and amortization | 430,000,000 | 332,000,000 | |
Asset retirement obligation accretion | 40,000,000 | 28,000,000 | |
Financing costs, net | 76,000,000 | 72,000,000 | |
Total operating expenses | 1,456,000,000 | 1,220,000,000 | |
NET INCOME BEFORE INCOME TAXES | 447,000,000 | 810,000,000 | |
Current income tax provision | 300,000,000 | 346,000,000 | |
Deferred income tax provision (benefit) | (65,000,000) | 138,000,000 | |
NET INCOME INCLUDING NONCONTROLLING INTERESTS | 212,000,000 | 326,000,000 | |
NET INCOME ATTRIBUTABLE TO COMMON STOCK | $ 132,000,000 | $ 242,000,000 | |
NET INCOME PER COMMON SHARE: | |||
Basic (in USD per share) | $ 0.44 | $ 0.78 | |
Diluted (in USD per share) | $ 0.44 | $ 0.78 | |
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING: | |||
Basic (in shares) | 302 | 311 | |
Diluted (in shares) | 302 | 312 | |
Noncontrolling interest | |||
OPERATING EXPENSES: | |||
Net income attributable to noncontrolling interest | $ 80,000,000 | $ 84,000,000 | |
Oil and gas | |||
REVENUES AND OTHER: | |||
Total revenues | 1,951,000,000 | 2,008,000,000 | |
Oil and Gas, excluding purchased | |||
REVENUES AND OTHER: | |||
Total revenues | [1] | 1,748,000,000 | 1,769,000,000 |
OPERATING EXPENSES: | |||
Gathering, processing, and transmission & purchased oil and gas costs | [1] | 84,000,000 | 78,000,000 |
Purchased oil and gas sales | |||
REVENUES AND OTHER: | |||
Total revenues | [1] | 203,000,000 | 239,000,000 |
OPERATING EXPENSES: | |||
Gathering, processing, and transmission & purchased oil and gas costs | [1] | $ 163,000,000 | $ 216,000,000 |
[1]For transactions with Kinetik prior to the Company’s sale of its remaining shares of Kinetik Class A Common Stock and the resignation of the Company’s designated director from the Kinetik board of directors, refer to Note 6—Equity Method Interests . |
STATEMENT OF CONSOLIDATED COMPR
STATEMENT OF CONSOLIDATED COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
NET INCOME INCLUDING NONCONTROLLING INTERESTS | $ 212 | $ 326 |
OTHER COMPREHENSIVE INCOME, NET OF TAX: | ||
Pension and postretirement benefit plan | 0 | 3 |
COMPREHENSIVE INCOME INCLUDING NONCONTROLLING INTERESTS | 212 | 329 |
Comprehensive income attributable to noncontrolling interest | 80 | 84 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON STOCK | $ 132 | $ 245 |
STATEMENT OF CONSOLIDATED CASH
STATEMENT OF CONSOLIDATED CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income including noncontrolling interests | $ 212,000,000 | $ 326,000,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Unrealized derivative instrument (gains) losses, net | 8,000,000 | (33,000,000) |
Gain on divestitures, net | (7,000,000) | (1,000,000) |
Exploratory dry hole expense and unproved leasehold impairments | 133,000,000 | 35,000,000 |
Depreciation, depletion, and amortization | 430,000,000 | 332,000,000 |
Asset retirement obligation accretion | 40,000,000 | 28,000,000 |
Provision for (benefit from) deferred income taxes | (65,000,000) | 138,000,000 |
Gain on extinguishment of debt | 0 | (9,000,000) |
Loss on previously sold Gulf of Mexico properties | 66,000,000 | 0 |
Other, net | 10,000,000 | 30,000,000 |
Changes in operating assets and liabilities: | ||
Receivables | 18,000,000 | (53,000,000) |
Inventories | (17,000,000) | (31,000,000) |
Drilling advances and other current assets | (26,000,000) | 1,000,000 |
Deferred charges and other long-term assets | 6,000,000 | 79,000,000 |
Accounts payable | 37,000,000 | (110,000,000) |
Accrued expenses | (432,000,000) | (319,000,000) |
Deferred credits and noncurrent liabilities | (45,000,000) | (78,000,000) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 368,000,000 | 335,000,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additions to upstream oil and gas property | (467,000,000) | (543,000,000) |
Leasehold and property acquisitions | (63,000,000) | (6,000,000) |
Proceeds from asset divestitures | 27,000,000 | 21,000,000 |
Proceeds from sale of Kinetik Shares | 428,000,000 | 0 |
Other, net | (13,000,000) | (4,000,000) |
NET CASH USED IN INVESTING ACTIVITIES | (88,000,000) | (532,000,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from (payments on) commercial paper and revolving credit facilities, net | (2,000,000) | 417,000,000 |
Payments on Apache fixed-rate debt | 0 | (65,000,000) |
Distributions to noncontrolling interest | (70,000,000) | (17,000,000) |
Treasury stock activity, net | (101,000,000) | (142,000,000) |
Dividends paid to APA common stockholders | (76,000,000) | (78,000,000) |
Other, net | (16,000,000) | (9,000,000) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (265,000,000) | 106,000,000 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 15,000,000 | (91,000,000) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 87,000,000 | 245,000,000 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 102,000,000 | 154,000,000 |
SUPPLEMENTARY CASH FLOW DATA: | ||
Interest paid, net of capitalized interest | 104,000,000 | 112,000,000 |
Income taxes paid, net of refunds | $ 366,000,000 | $ 286,000,000 |
CONSOLIDATED BALANCE SHEET (Una
CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 102 | $ 87 |
Receivables, net of allowance of $110 and $114 | 1,597 | 1,610 |
Other current assets (Note 5) | 807 | 765 |
Total current assets | 2,506 | 2,462 |
PROPERTY AND EQUIPMENT: | ||
Oil and gas properties | 45,406 | 44,860 |
Gathering, processing, and transmission facilities | 448 | 448 |
Other | 625 | 634 |
Less: Accumulated depreciation, depletion, and amortization | (36,336) | (35,904) |
Property and equipment, net | 10,143 | 10,038 |
OTHER ASSETS: | ||
Equity method interests (Note 6) | 0 | 437 |
Decommissioning security for sold Gulf of Mexico properties (Note 11) | 21 | 21 |
Deferred tax asset (Note 10) | 1,752 | 1,758 |
Deferred charges and other | 530 | 528 |
Assets | 14,952 | 15,244 |
CURRENT LIABILITIES: | ||
Accounts payable | 694 | 658 |
Current debt | 2 | 2 |
Other current liabilities (Note 7) | 1,456 | 1,744 |
Total current liabilities | 2,152 | 2,404 |
LONG-TERM DEBT (Note 9) | 5,178 | 5,186 |
DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES: | ||
Deferred tax liability (Note 10) | 300 | 371 |
Asset retirement obligation (Note 8) | 2,400 | 2,362 |
Decommissioning contingency for sold Gulf of Mexico properties (Note 11) | 807 | 764 |
Other | 462 | 466 |
Total deferred credits and other noncurrent liabilities | 3,969 | 3,963 |
EQUITY: | ||
Common stock, $0.625 par, 860,000,000 shares authorized, 421,137,927 and 420,595,901 shares issued, respectively | 263 | 263 |
Paid-in capital | 11,047 | 11,126 |
Accumulated deficit | (2,827) | (2,959) |
Treasury stock, at cost, 120,031,117 and 117,020,000 shares, respectively | (5,891) | (5,790) |
Accumulated other comprehensive income | 15 | 15 |
APA SHAREHOLDERS’ EQUITY | 2,607 | 2,655 |
TOTAL EQUITY | 3,653 | 3,691 |
TOTAL LIABILITIES AND EQUITY | 14,952 | 15,244 |
Noncontrolling interest | ||
EQUITY: | ||
Noncontrolling interest | $ 1,046 | $ 1,036 |
CONSOLIDATED BALANCE SHEET (U_2
CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Receivables, allowance | $ 110 | $ 114 |
Common stock, par value (in USD per share) | $ 0.625 | $ 0.625 |
Common stock, shares authorized (in shares) | 860,000,000 | 860,000,000 |
Common stock, shares issued (in shares) | 421,137,927 | 420,595,901 |
Treasury stock, shares (in shares) | 120,031,117 | 117,020,000 |
STATEMENT OF CONSOLIDATED CHANG
STATEMENT OF CONSOLIDATED CHANGES IN EQUITY AND NONCONTROLLING INTERESTS (Unaudited) - USD ($) $ in Millions | Total | Noncontrolling interest | APA SHAREHOLDERS’ EQUITY | Common Stock | Paid-In Capital | Accumulated Deficit | Treasury Stock | Accumulated Other Comprehensive Income | Noncontrolling Interests | Noncontrolling Interests Noncontrolling interest |
Beginning balance at Dec. 31, 2022 | $ 1,345 | $ 423 | $ 262 | $ 11,420 | $ (5,814) | $ (5,459) | $ 14 | $ 922 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income attributable to common stock | 242 | 242 | 242 | |||||||
Net income attributable to noncontrolling interest | $ 84 | $ 84 | ||||||||
Distributions to noncontrolling interest | (17) | (17) | ||||||||
Common dividends declared | (78) | (78) | (78) | |||||||
Treasury stock activity, net | (142) | (142) | (142) | |||||||
Other | (1) | (1) | 1 | (5) | 3 | |||||
Ending balance at Mar. 31, 2023 | 1,433 | 444 | 263 | 11,337 | (5,572) | (5,601) | 17 | 989 | ||
Beginning balance at Dec. 31, 2023 | 3,691 | 2,655 | 263 | 11,126 | (2,959) | (5,790) | 15 | 1,036 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income attributable to common stock | 132 | 132 | 132 | |||||||
Net income attributable to noncontrolling interest | 80 | 80 | ||||||||
Distributions to noncontrolling interest | $ (70) | $ (70) | ||||||||
Common dividends declared | (75) | (75) | (75) | |||||||
Treasury stock activity, net | (101) | (101) | (101) | |||||||
Other | (4) | (4) | (4) | |||||||
Ending balance at Mar. 31, 2024 | $ 3,653 | $ 2,607 | $ 263 | $ 11,047 | $ (2,827) | $ (5,891) | $ 15 | $ 1,046 |
STATEMENT OF CONSOLIDATED CHA_2
STATEMENT OF CONSOLIDATED CHANGES IN EQUITY AND NONCONTROLLING INTERESTS (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock, dividends, per share (in USD per share) | $ 0.25 | $ 0.25 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | These consolidated financial statements have been prepared by APA Corporation (APA or the Company) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). They reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods, on a basis consistent with the annual audited financial statements, with the exception of any recently adopted accounting pronouncements. All such adjustments are of a normal recurring nature. Certain information, accounting policies, and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. This Quarterly Report on Form 10-Q should be read along with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which contains a summary of the Company’s significant accounting policies and other disclosures. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES As of March 31, 2024, the Company's significant accounting policies are consistent with those discussed in Note 1—Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The Company’s financial statements for prior periods may include reclassifications that were made to conform to the current-year presentation. Principles of Consolidation The accompanying consolidated financial statements include the accounts of APA and its subsidiaries after elimination of intercompany balances and transactions. The Company’s undivided interests in oil and gas exploration and production ventures and partnerships are proportionately consolidated. The Company consolidates all other investments in which, either through direct or indirect ownership, it has more than a 50 percent voting interest or controls the financial and operating decisions. Sinopec International Petroleum Exploration and Production Corporation (Sinopec) owns a one-third minority participation in the Company’s consolidated Egypt oil and gas business as a noncontrolling interest, which is reflected as a separate noncontrolling interest component of equity in the Company’s consolidated balance sheet. The Company has determined that a limited partnership and APA subsidiary, which has control over APA’s Egyptian operations, qualifies as a variable interest entity (VIE) under GAAP. Apache consolidates the activities of APA’s Egyptian operations because it has concluded that a wholly owned subsidiary has a controlling financial interest in APA’s Egyptian operations and was determined to be the primary beneficiary of the VIE. Investments in which the Company has significant influence, but not control, are accounted for under the equity method of accounting. During each of the periods ended March 31, 2024 and 2023, the Company had a designated director on the Kinetik Holdings Inc. (Kinetik) board of directors. As a result, the Company is considered to have had significant influence over Kinetik for all periods presented. The Company’s designated director resigned from the Kinetik board of directors on April 3, 2024. As of December 31, 2023, the Company held shares of Kinetik Class A Common Stock (Kinetik Shares), which were recorded separately as “Equity method interests” in the Company’s consolidated balance sheet. On March 18, 2024, the Company sold its remaining Kinetik Shares. Refer to Note 6—Equity Method Interests for further detail. Use of Estimates Preparation of financial statements in conformity with GAAP and disclosure of contingent assets and liabilities requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. The Company evaluates its estimates and assumptions on a regular basis. Actual results may differ from these estimates and assumptions used in preparation of the Company’s financial statements, and changes in these estimates are recorded when known. Significant estimates with regard to these financial statements include the estimates of fair value for long-lived assets (refer to “Fair Value Measurements” and “Property and Equipment” sections in this Note 1 below), the fair value determination of acquired assets and liabilities (refer to Note 2—Acquisitions and Divestitures ), the assessment of asset retirement obligations (refer to Note 8—Asset Retirement Obligation ), the estimate of income taxes (refer to Note 10—Income Taxes ), the estimation of the contingent liability representing Apache’s potential decommissioning obligations on sold properties in the Gulf of Mexico (refer to Note 11—Commitments and Contingencies ), and the estimate of proved oil and gas reserves and related present value estimates of future net cash flows therefrom. Fair Value Measurements Certain assets and liabilities are reported at fair value on a recurring basis in the Company’s consolidated balance sheet. Accounting Standards Codification (ASC) 820-10-35, “Fair Value Measurement” (ASC 820), provides a hierarchy that prioritizes and defines the types of inputs used to measure fair value. The fair value hierarchy gives the highest priority to Level 1 inputs, which consist of unadjusted quoted prices for identical instruments in active markets. Level 2 inputs consist of quoted prices for similar instruments. Level 3 valuations are derived from inputs that are significant and unobservable; hence, these valuations have the lowest priority. The valuation techniques that may be used to measure fair value include a market approach, an income approach, and a cost approach. A market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. An income approach uses valuation techniques to convert future amounts to a single present amount based on current market expectations, including present value techniques, option-pricing models, and the excess earnings method. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Refer to Note 4—Derivative Instruments and Hedging Activities , Note 6—Equity Method Interests , and Note 9—Debt and Financing Costs for further detail regarding the Company’s fair value measurements recorded on a recurring basis. During the three months ended March 31, 2024 and 2023, the Company recorded no asset impairments in connection with fair value assessments. Revenue Recognition Receivables from contracts with customers, including receivables for purchased oil and gas sales and net of allowance for credit losses, were $1.4 billion and $1.5 billion as of March 31, 2024 and December 31, 2023, respectively. Payments under all contracts with customers are typically due and received within a short-term period of one year or less, after physical delivery of the product or service has been rendered. Over the past year, the Company experienced a gradual decline in the timeliness of receipts from the Egyptian General Petroleum Corporation (EGPC) for the Company’s Egyptian oil and gas sales. Although the Company continues to receive periodic payments from EGPC, economic conditions in Egypt have lessened the availability of U.S. dollars in Egypt, resulting in a delay in receipts from EGPC. Continuation of the currency shortage in Egypt could lead to further delays, deferrals of payment, or non-payment in the future; however, the Company currently anticipates that it will ultimately be able to collect its receivable from EGPC. Oil and gas production revenues include income taxes that will be paid to the Arab Republic of Egypt by EGPC on behalf of the Company. Revenue and associated expenses related to such tax volumes are recorded as “Oil, natural gas, and natural gas liquids production revenues” and “Current income tax provision,” respectively, in the Company’s statement of consolidated operations. Refer to Note 13—Business Segment Information for a disaggregation of oil, gas, and natural gas production revenue by product and reporting segment. In accordance with the provisions of ASC 606, “Revenue from Contracts with Customers,” variable market prices for each short-term commodity sale are allocated entirely to each performance obligation as the terms of payment relate specifically to the Company’s efforts to satisfy its obligations. As such, the Company has elected the practical expedients available under the standard to not disclose the aggregate transaction price allocated to unsatisfied, or partially unsatisfied, performance obligations as of the end of the reporting period. Inventories Inventories consist principally of tubular goods and equipment and are stated at the lower of weighted-average cost or net realizable value. Oil produced but not sold, primarily in the North Sea, is also recorded to inventory and is stated at the lower of the cost to produce or net realizable value. Property and Equipment The carrying value of the Company’s property and equipment represents the cost incurred to acquire the property and equipment, including capitalized interest, net of any impairments. For business combinations and acquisitions, property and equipment cost is based on the fair values at the acquisition date. Oil and Gas Property The Company follows the successful efforts method of accounting for its oil and gas property. Under this method of accounting, exploration costs, production costs, general corporate overhead, and similar activities are expensed as incurred. If an exploratory well provides evidence to justify potential development of reserves, drilling costs associated with the well are initially capitalized, or suspended, pending a determination as to whether a commercially sufficient quantity of proved reserves can be attributed to the area as a result of drilling. At the end of each quarter, management reviews the status of all suspended exploratory well costs in light of ongoing exploration activities, and if management determines that future appraisal drilling or development activities are unlikely to occur, associated suspended exploratory well costs are expensed. Costs to develop proved reserves, including the costs of all development wells and related equipment used in the production of crude oil and natural gas, are capitalized. Depreciation of the cost of proved oil and gas properties is calculated using the unit-of-production (UOP) method. The UOP calculation multiplies the percentage of estimated proved reserves produced each quarter by the carrying value of associated proved oil and gas properties. When circumstances indicate that the carrying value of proved oil and gas properties may not be recoverable, the Company compares unamortized capitalized costs to the expected undiscounted pre-tax future cash flows for the associated assets grouped at the lowest level for which identifiable cash flows are independent of cash flows of other assets. If the expected undiscounted pre-tax future cash flows, based on the Company’s estimate of future crude oil and natural gas prices, operating costs, anticipated production from proved reserves and other relevant data, are lower than the unamortized capitalized cost, the capitalized cost is reduced to fair value. Unproved leasehold impairments are typically recorded as a component of “Exploration” expense in the Company’s statement of consolidated operations. Gains and losses on divestitures of the Company’s oil and gas properties are recognized in the statement of consolidated operations upon closing of the transaction. Refer to Note 2—Acquisitions and Divestitures for more detail. Gathering, Processing, and Transmission (GPT) Facilities GPT facilities are depreciated on a straight-line basis over the estimated useful lives of the assets. The estimation of useful life takes into consideration anticipated production lives from the fields serviced by the GPT assets, whether APA-operated or third party-operated, as well as potential development plans by the Company for undeveloped acreage within, or close to, those fields. The Company assesses the carrying amount of its GPT facilities whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying amount of these facilities is more than the sum of the undiscounted cash flows, an impairment loss is recognized for the excess of the carrying value over its fair value. New Pronouncements Issued But Not Yet Adopted There were no material changes in recently issued or adopted accounting standards from those disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES 2024 Activity Callon Petroleum Company Acquisition On April 1, 2024, APA completed its acquisition of Callon Petroleum Company (Callon) in an all-stock transaction valued at approximately $4.5 billion, inclusive of Callon’s debt (the Callon acquisition). The transaction was approved by APA and Callon shareholders at special meetings held on March 27, 2024. Subject to the terms of the merger agreement, each share of Callon common stock was converted into the right to receive 1.0425 shares of APA common stock, with cash in lieu of fractional shares. As a result, APA issued approximately 70 million shares of APA common stock in connection with the transaction, and following the acquisition, Callon common stock is no longer listed for trading on the NYSE. Upon completing the acquisition, APA refinanced substantially all of Callon’s debt by borrowing under APA’s US dollar denominated syndicated credit facilities. Refer to Note 9—Debt and Financing Costs for further detail. Sale of Kinetik Shares On March 18, 2024, the Company sold its remaining Kinetik Shares for cash proceeds of $428 million. Refer to Note 6—Equity Method Interests for further detail. Leasehold and Property Acquisitions During the first quarter of 2024, the Company completed leasehold and property acquisitions, primarily in the Permian Basin, for total cash consideration of approximately $63 million. U.S. Divestitures During the first quarter of 2024, the Company completed the sale of non-core assets and leasehold in multiple transactions for total cash proceeds of $27 million, recognizing a gain of approximately $7 million upon closing of these transactions. 2023 Activity Leasehold and Property Acquisitions During the first quarter of 2023, the Company completed leasehold and property acquisitions, primarily in the Permian Basin, for total cash consideration of approximately $6 million. U.S. Divestitures During the first quarter of 2023, the Company completed the sale of non-core assets and leasehold in multiple transactions for total cash proceeds of $21 million, recognizing a gain of approximately $1 million upon closing of these transactions. |
CAPITALIZED EXPLORATORY WELL CO
CAPITALIZED EXPLORATORY WELL COSTS | 3 Months Ended |
Mar. 31, 2024 | |
Extractive Industries [Abstract] | |
CAPITALIZED EXPLORATORY WELL COSTS | CAPITALIZED EXPLORATORY WELL COSTS The Company’s capitalized exploratory well costs were $587 million and $586 million as of March 31, 2024 and December 31, 2023, respectively. Approximately $51 million of suspended well costs previously capitalized for greater than one year at December 31, 2023 were charged to dry hole expense during the first quarter of 2024. This was offset by increased capital exploratory well costs attributable to additional drilling activity in Egypt and in the U.S. in the first quarter of 2024. Projects with suspended exploratory well costs capitalized for a period greater than one year since the completion of drilling are those identified by management as exhibiting sufficient quantities of hydrocarbons to justify potential development. Management is actively pursuing efforts to assess whether proved reserves can be attributed to these projects. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Objectives and Strategies The Company is exposed to fluctuations in crude oil and natural gas prices on the majority of its worldwide production, as well as fluctuations in exchange rates in connection with transactions denominated in foreign currencies. The Company manages the variability in its cash flows by occasionally entering into derivative transactions on a portion of its crude oil and natural gas production and foreign currency transactions. The Company utilizes various types of derivative financial instruments, including forward contracts, futures contracts, swaps, and options, to manage fluctuations in cash flows resulting from changes in commodity prices or foreign currency values. Counterparty Risk The use of derivative instruments exposes the Company to credit loss in the event of nonperformance by the counterparty. To reduce the concentration of exposure to any individual counterparty, the Company utilizes a diversified group of investment-grade rated counterparties, primarily financial institutions, for its derivative transactions. As of March 31, 2024, the Company had derivative positions with four counterparties. The Company monitors counterparty creditworthiness on an ongoing basis; however, it cannot predict sudden changes in counterparties’ creditworthiness. In addition, even if such changes are not sudden, the Company may be limited in its ability to mitigate an increase in counterparty credit risk. Should one of these counterparties not perform, the Company may not realize the benefit of some of its derivative instruments resulting from lower commodity prices or changes in currency exchange rates. Derivative Instruments Commodity Derivative Instruments As of March 31, 2024, the Company had the following open natural gas financial basis swap contracts: Basis Swap Purchased Basis Swap Sold Production Period Settlement Index MMBtu Weighted Average Price Differential MMBtu Weighted Average Price Differential April—June 2024 NYMEX Henry Hub/IF Waha 8,190 $(1.15) — — April—June 2024 NYMEX Henry Hub/IF HSC — — 8,190 $(0.10) Fair Value Measurements The following table presents the Company’s derivative assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements Using Quoted Price in Active Markets Significant Other Inputs Significant Unobservable Inputs Total Netting (1) Carrying Amount (In millions) March 31, 2024 Liabilities: Commodity derivative instruments $ — $ 2 $ — $ 2 $ — $ 2 December 31, 2023 Assets: Commodity derivative instruments $ — $ 6 $ — $ 6 $ — $ 6 (1) The derivative fair values are based on analysis of each contract on a gross basis, excluding the impact of netting agreements with counterparties and reclassifications between long-term and short-term balances. The fair values of the Company’s derivative instruments are not actively quoted in the open market. The Company primarily uses a market approach to estimate the fair values of these derivatives on a recurring basis, utilizing futures pricing for the underlying positions provided by a reputable third party, a Level 2 fair value measurement. Derivative Activity Recorded in the Consolidated Balance Sheet All derivative instruments are reflected as either assets or liabilities at fair value in the consolidated balance sheet. These fair values are recorded by netting asset and liability positions where counterparty master netting arrangements contain provisions for net settlement. The carrying value of the Company’s derivative assets and liabilities and their locations on the consolidated balance sheet are as follows: March 31, 2024 December 31, 2023 (In millions) Current Assets: Other current assets $ — $ 6 Total derivative assets $ — $ 6 Current Liabilities: Other current liabilities $ 2 $ — Total derivative liabilities $ 2 $ — Derivative Activity Recorded in the Statement of Consolidated Operations The following table summarizes the effect of derivative instruments on the Company’s statement of consolidated operations: For the Quarter Ended March 31, 2024 2023 (In millions) Realized: Commodity derivative instruments $ 4 $ 20 Realized gains, net 4 20 Unrealized: Commodity derivative instruments (8) 33 Unrealized gains (losses), net (8) 33 Derivative instrument gains (losses), net $ (4) $ 53 Derivative instrument gains and losses are recorded in “Derivative instrument gains (losses), net” under “Revenues and Other” in the Company’s statement of consolidated operations. Unrealized gains (losses) for derivative activity recorded in the statement of consolidated operations are reflected in the statement of consolidated cash flows separately as “Unrealized derivative instrument (gains) losses, net” under “Adjustments to reconcile net income to net cash provided by operating activities.” |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 3 Months Ended |
Mar. 31, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT ASSETS | OTHER CURRENT ASSETS The following table provides detail of the Company’s other current assets: March 31, 2024 December 31, 2023 (In millions) Inventories $ 472 $ 453 Drilling advances 116 88 Prepaid assets and other 54 46 Current decommissioning security for sold Gulf of Mexico assets 165 178 Total Other current assets $ 807 $ 765 |
EQUITY METHOD INTERESTS
EQUITY METHOD INTERESTS | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY METHOD INTERESTS | EQUITY METHOD INTERESTS As of December 31, 2023, the Company held 13.1 million Kinetik Shares, which were recorded at fair value of $437 million and reflected separately as “Equity method interests” in the Company’s consolidated balance sheet. The Company elected the fair value option for measuring its equity method interest in Kinetik based on practical expedience, variances in reporting timelines, and cost-benefit considerations. The fair value of the Company’s interest in Kinetik was determined using observable share prices on a major exchange, a Level 1 fair value measurement. On March 18, 2024, the Company sold its remaining Kinetik Shares for cash proceeds of $428 million. Prior to the Company’s sale of its remaining Kinetik Shares and the resignation of the Company’s designated director from the Kinetik board of directors, the Company recorded changes in the fair value of its equity method interest in Kinetik totaling losses of $9 million and $19 million in the first quarters of 2024 and 2023, respectively. These losses were recorded as a component of “Revenues and Other” in the Company’s statement of consolidated operations. The following table represents related party sales and costs associated with Kinetik prior to the Company’s sale of its remaining Kinetik Shares and the resignation of the Company’s designated director from the Kinetik board of directors: For the Quarter Ended March 31, 2024 2023 (In millions) Natural gas and NGLs sales $ 13 $ 14 Purchased oil and gas sales 22 — $ 35 $ 14 Gathering, processing, and transmission costs $ 23 $ 26 Purchased oil and gas costs 23 — Lease operating expenses 2 — $ 48 $ 26 |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
OTHER CURRENT LIABILITIES | OTHER CURRENT LIABILITIES The following table provides detail of the Company’s other current liabilities: March 31, 2024 December 31, 2023 (In millions) Accrued operating expenses $ 165 $ 162 Accrued exploration and development 530 371 Accrued compensation and benefits 136 390 Accrued interest 67 93 Accrued income taxes 86 138 Current asset retirement obligation 75 76 Current operating lease liability 119 116 Current decommissioning contingency for sold Gulf of Mexico properties 40 60 Other 238 338 Total Other current liabilities $ 1,456 $ 1,744 |
ASSET RETIREMENT OBLIGATION
ASSET RETIREMENT OBLIGATION | 3 Months Ended |
Mar. 31, 2024 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATION | ASSET RETIREMENT OBLIGATION The following table describes changes to the Company’s asset retirement obligation (ARO) liability: March 31, 2024 (In millions) Asset retirement obligation, December 31, 2023 $ 2,438 Liabilities incurred 1 Liabilities acquired 4 Liabilities settled (9) Accretion expense 40 Revisions in estimated liabilities 1 Asset retirement obligation, March 31, 2024 2,475 Less current portion (75) Asset retirement obligation, long-term $ 2,400 |
DEBT AND FINANCING COSTS
DEBT AND FINANCING COSTS | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
DEBT AND FINANCING COSTS | DEBT AND FINANCING COSTS The following table presents the carrying values of the Company’s debt: March 31, 2024 December 31, 2023 (In millions) Apache notes and debentures before unamortized discount and debt issuance costs (1) $ 4,835 $ 4,835 Commercial paper and syndicated credit facilities (2) 370 372 Apache finance lease obligations 31 32 Unamortized discount (26) (26) Debt issuance costs (30) (25) Total debt 5,180 5,188 Current maturities (2) (2) Long-term debt $ 5,178 $ 5,186 (1) The fair values of the Apache notes and debentures were $4.3 billion at each of March 31, 2024 and December 31, 2023. The Company uses a market approach to determine the fair values of its notes and debentures using estimates provided by an independent investment financial data services firm (a Level 2 fair value measurement). (2) The carrying value of borrowings on commercial paper and credit facilities approximates fair value because interest rates are variable and reflective of market rates. At each of March 31, 2024 and December 31, 2023, current debt included $2 million of finance lease obligations. Financing Costs, Net The following table presents the components of the Company’s financing costs, net: For the Quarter Ended March 31, 2024 2023 (In millions) Interest expense $ 85 $ 88 Amortization of debt issuance costs 1 1 Capitalized interest (7) (6) Gain on extinguishment of debt — (9) Interest income (3) (2) Financing costs, net $ 76 $ 72 During the quarter ended March 31, 2023, Apache purchased in the open market and canceled senior notes issued under its indentures in an aggregate principal amount of $74 million for an aggregate purchase price of $65 million in cash. The Company recognized a $9 million gain on these repurchases. Unsecured 2022 Committed Bank Credit Facilities On April 29, 2022, the Company entered into two unsecured syndicated credit agreements for general corporate purposes. • One agreement is denominated in US dollars (the USD Agreement) and provides for an unsecured five-year revolving credit facility, with aggregate commitments of US$1.8 billion (including a letter of credit subfacility of up to US$750 million, of which US$150 million currently is committed). The Company may increase commitments up to an aggregate US$2.3 billion by adding new lenders or obtaining the consent of any increasing existing lenders. This facility matures in April 2027, subject to the Company’s two, one-year extension options. • The second agreement is denominated in pounds sterling (the GBP Agreement) and provides for an unsecured five-year revolving credit facility, with aggregate commitments of £1.5 billion for loans and letters of credit. This facility matures in April 2027, subject to the Company’s two, one-year extension options. Apache may borrow under the USD Agreement up to an aggregate principal amount of US$300 million outstanding at any given time. Apache has guaranteed obligations under each of the USD Agreement and GBP Agreement effective until the aggregate principal amount of indebtedness under senior notes and debentures outstanding under Apache’s existing indentures first is less than US$1.0 billion. As of March 31, 2024, there were $30 million of borrowings under the USD Agreement and an aggregate £348 million in letters of credit outstanding under the GBP Agreement. As of March 31, 2024, there were no letters of credit outstanding under the USD Agreement. As of December 31, 2023, there were $372 million of borrowings under the USD Agreement and an aggregate £348 million in letters of credit outstanding under the GBP Agreement. As of December 31, 2023, there were no letters of credit outstanding under the USD Agreement. The letters of credit denominated in pounds were issued to support North Sea decommissioning obligations, the terms of which require such support while Apache’s credit rating by Standard & Poor’s remains below BBB; on March 26, 2020, Standard & Poor’s reduced Apache’s rating from BBB to BB+, which was affirmed in 2023. Uncommitted Lines of Credit Each of the Company and Apache, from time to time, has and uses uncommitted credit and letter of credit facilities for working capital and credit support purposes. As of March 31, 2024 and December 31, 2023, there were no outstanding borrowings under these facilities. At each of March 31, 2024 and December 31, 2023, there were £416 million and $2 million in letters of credit outstanding under these facilities. Commercial Paper Program In December 2023, the Company established a commercial paper program under which it from time to time may issue in private placements exempt from registration under the Securities Act short-term unsecured promissory notes (CP Notes) up to a maximum aggregate face amount of $1.8 billion outstanding at any time. The maturities of CP Notes may vary but may not exceed 397 days from the date of issuance. Outstanding CP Notes are supported by available borrowing capacity under the Company’s committed $1.8 billion USD Agreement. Payment of CP Notes has been unconditionally guaranteed on an unsecured basis by Apache, such guarantee effective until the first time that the aggregate principal amount of indebtedness under senior notes and debentures outstanding under Apache’s existing indentures is less than US$1.0 billion. As of March 31, 2024, there was $340 million in aggregate face amount of CP Notes outstanding, which is classified as long-term debt. As of December 31, 2023, there were no CP Notes outstanding. Unsecured Committed Term Loan Facility On January 30, 2024, APA entered into a syndicated credit agreement under which the lenders have committed an aggregate $2.0 billion for senior unsecured delayed-draw term loans to APA (Term Loan Credit Agreement), the proceeds of which could be used to refinance certain indebtedness of Callon only on the date of closing of transactions under the Merger Agreement. Refer to “Subsequent Events” for further detail. Apache has guaranteed obligations under the Term Loan Credit Agreement effective until the aggregate principal amount of indebtedness under senior notes and debentures outstanding under Apache’s existing indentures first is less than $1.0 billion. Subsequent Events On April 1, 2024, APA closed the transactions under the Term Loan Credit Agreement. APA borrowed an aggregate $1.5 billion in senior unsecured term loans that mature April 1, 2027. Loan proceeds were used to refinance certain indebtedness of Callon upon the substantially simultaneous closing of APA’s acquisition of Callon pursuant to the Merger Agreement and to pay related fees and expenses. APA may at any time prepay loans under the Term Loan Credit Agreement. The lenders under the Term Loan Credit Agreement committed an aggregate $2.0 billion for senior unsecured delayed-draw term loans to APA available for borrowing only once upon the date of the closings under the Merger Agreement and Term Loan Credit Agreement, of which $1.5 billion was for term loans that would mature three years after the date of such closings (3-Year Tranche Loans) and $500 million was for term loans that would mature 364 days after the date of such closings (364-Day Tranche Loans). APA elected to borrow only under the 3-Year Tranche Loans and to allow the lender commitments for the 364-Day Tranche Loans to expire. Indebtedness of Callon that APA could refinance by borrowing under the Term Loan Credit Agreement included indebtedness outstanding under (i) the Amended and Restated Credit Agreement, dated October 19, 2022, among Callon, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto (Callon Credit Agreement), (ii) Callon’s 6.375% Senior Notes due 2026 (Callon’s 2026 Notes), (iii) Callon’s 8.00% Senior Notes due 2028 (Callon’s 2028 Notes), and (iv) Callon’s 7.500% Senior Notes due 2030 (Callon’s 2030 Notes). On April 1, 2024, all indebtedness under the Callon Credit Agreement and Callon’s 2026 Notes was repaid, and the aggregate principal balance remaining outstanding under Callon’s 2028 Notes and Callon’s 2030 Notes was reduced to $24 million. Given the aggregate principal balance remaining outstanding under Callon’s 2028 Notes and Callon’s 2030 Notes, no guarantee by Callon of APA’s obligations under the Term Loan Credit Agreement is required. On April 1, 2024, the following Callon indebtedness was repaid by borrowings under the Term Loan Credit Agreement and USD Agreement: • Callon closed cash tender offers for Callon’s 2028 Notes and Callon’s 2030 Notes, accepting for purchase $1.2 billion aggregate principal amount of notes. Callon paid holders an aggregate $1.3 billion in cash, reflecting principal, premium to par, early tender consent fee, and accrued and unpaid interest. • Callon redeemed the outstanding $321 million principal amount of Callon’s 2026 Notes at a redemption price equal to 101.063% of their principal amount, plus accrued and unpaid interest to the redemption date. • Callon repaid the aggregate $472 million owed under the Callon Credit Agreement, including principal, accrued and unpaid interest, and certain fees. On April 26, 2024, Callon notified holders of its election to fully redeem on May 6, 2024 the outstanding $8.3 million principal amount of Callon’s 2028 Notes at a redemption price equal to 101.588% of their principal amount and $15.6 million principal amount of Callon’s 2030 Notes at a redemption price equal to 102.803% of their principal amount, in each case, plus accrued and unpaid interest to the redemption date. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company estimates its annual effective income tax rate in recording its quarterly provision for income taxes in the various jurisdictions in which the Company operates. Non-cash impairments on the carrying value of the Company’s oil and gas properties, gains and losses on the sale of assets, statutory tax rate changes, and other significant or unusual items are recognized as discrete items in the quarter in which they occur. The Company’s effective income tax rate for the three months ended March 31, 2024 differed from the U.S. federal statutory income tax rate of 21 percent due to taxes on foreign operations. The Company’s effective income tax rate for the three months ended March 31, 2023 differed from the U.S. federal statutory income tax rate of 21 percent due to taxes on foreign operations, a deferred tax expense related to the remeasurement of taxes in the U.K. as a result of the enactment of Finance Act 2023, and a decrease in the amount of valuation allowance against its U.S. deferred tax assets. In December 2021, the Organisation for Economic Co-operation and Development issued Pillar Two Model Rules introducing a new global minimum tax of 15 percent on a country-by-country basis, with certain aspects effective in certain jurisdictions on January 1, 2024. Although the Company continues to monitor enacted legislation to implement these rules in countries where the Company could be impacted, APA does not expect that the Pillar Two framework will have a material impact on its consolidated financial statements. The Company and its subsidiaries are subject to U.S. federal income tax as well as income or capital taxes in various states and foreign jurisdictions. The Company’s tax reserves are related to tax years that may be subject to examination by the relevant taxing authority. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Matters The Company is party to various legal actions arising in the ordinary course of business, including litigation and governmental and regulatory controls, which also may include controls related to the potential impacts of climate change. As of March 31, 2024, the Company has an accrued liability of approximately $84 million for all legal contingencies that are deemed to be probable of occurring and can be reasonably estimated. The Company’s estimates are based on information known about the matters and its experience in contesting, litigating, and settling similar matters. Although actual amounts could differ from management’s estimate, none of the actions are believed by management to involve future amounts that would be material to the Company’s financial position, results of operations, or liquidity after consideration of recorded accruals. With respect to material matters for which the Company believes an unfavorable outcome is reasonably possible, the Company has disclosed the nature of the matter and a range of potential exposure, unless an estimate cannot be made at this time. It is management’s opinion that the loss for any other litigation matters and claims that are reasonably possible to occur will not have a material adverse effect on the Company’s financial position, results of operations, or liquidity. For additional information on Legal Matters described below, refer to Note 11—Commitments and Contingencies to the consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Argentine Environmental Claims On March 12, 2014, the Company and its subsidiaries completed the sale of all of the Company’s subsidiaries’ operations and properties in Argentina to YPF Sociedad Anonima (YPF). As part of that sale, YPF assumed responsibility for all of the past, present, and future litigation in Argentina involving Company subsidiaries, except that Company subsidiaries have agreed to indemnify YPF for certain environmental, tax, and royalty obligations capped at an aggregate of $100 million. The indemnity is subject to specific agreed conditions precedent, thresholds, contingencies, limitations, claim deadlines, loss sharing, and other terms and conditions. On April 11, 2014, YPF provided its first notice of claims pursuant to the indemnity. Company subsidiaries have not paid any amounts under the indemnity but will continue to review and consider claims presented by YPF. Further, Company subsidiaries retain the right to enforce certain Argentina-related indemnification obligations against Pioneer Natural Resources Company (Pioneer) in an amount up to $45 million pursuant to the terms and conditions of stock purchase agreements entered in 2006 between Company subsidiaries and subsidiaries of Pioneer. Louisiana Restoration As more fully described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, Louisiana surface owners often file lawsuits or assert claims against oil and gas companies, including the Company, claiming that operators and working interest owners in the chain of title are liable for environmental damages on the leased premises, including damages measured by the cost of restoration of the leased premises to its original condition, regardless of the value of the underlying property. From time to time, restoration lawsuits and claims are resolved by the Company for amounts that are not material to the Company, while new lawsuits and claims are asserted against the Company. With respect to each of the pending lawsuits and claims, the amount claimed is not currently determinable or is not material. Further, the overall exposure related to these lawsuits and claims is not currently determinable. While adverse judgments against the Company are possible, the Company intends to actively defend these lawsuits and claims. Starting in November of 2013 and continuing into 2023, several parishes in Louisiana have pending lawsuits against many oil and gas producers, including the Company. In these cases, the Parishes, as plaintiffs, allege that defendants’ oil and gas exploration, production, and transportation operations in specified fields were conducted in violation of the State and Local Coastal Resources Management Act of 1978, as amended, and applicable regulations, rules, orders, and ordinances promulgated or adopted thereunder by the Parish or the State of Louisiana. Plaintiffs allege that defendants caused substantial damage to land and water bodies located in the coastal zone of Louisiana. Plaintiffs seek, among other things, unspecified damages for alleged violations of applicable law within the coastal zone, the payment of costs necessary to clear, re-vegetate, detoxify, and otherwise restore the subject coastal zone as near as practicable to its original condition, and actual restoration of the coastal zone to its original condition. Without acknowledging or admitting any liability and solely to avoid the expense and uncertainty of future litigation, the Company agreed to settle with the State of Louisiana and Louisiana coastal Parishes to resolve any potential liability on the part of the Company for claims that were or could have been asserted by the coastal Parishes and/or the State of Louisiana in the pending litigation. The settlement is subject to court approval, which the parties hope to receive at some point in the first half of 2024. The consideration to be provided by the Company in the settlement will not have a material impact on the Company’s financial position. Following settlement of these various lawsuits, the Company will be a defendant in only two remaining coastal zone lawsuits, one filed by the City of New Orleans against the Company and a number of oil and gas operators and the other filed against Callon Offshore Production, Inc., among many other oil and gas operators, and pending in St. Bernard Parish, Louisiana. The Company will now oversee the latter lawsuit as a result of the merger with Callon Petroleum Company. Apollo Exploration Lawsuit In a case captioned Apollo Exploration, LLC, Cogent Exploration, Ltd. Co. & SellmoCo, LLC v. Apache Corporation , Cause No. CV50538 in the 385 th Judicial District Court, Midland County, Texas, plaintiffs alleged damages in excess of $200 million (having previously claimed in excess of $1.1 billion) relating to purchase and sale agreements, mineral leases, and area of mutual interest agreements concerning properties located in Hartley, Moore, Potter, and Oldham Counties, Texas. The trial court entered final judgment in favor of the Company, ruling that the plaintiffs take nothing by their claims and awarding the Company its attorneys’ fees and costs incurred in defending the lawsuit. The court of appeals affirmed in part and reversed in part the trial court’s judgment thereby reinstating some of plaintiffs’ claims. The Texas Supreme Court granted the Company’s petition for review and heard oral argument in October 2022. On April 28, 2023, the Texas Supreme Court reversed the court of appeals’ decision and remanded the case back to the court of appeals for further proceedings. After plaintiffs’ request for rehearing, on July 21, 2023, the Texas Supreme Court reaffirmed its reversal of the court of appeals’ decision and remand of the case back to the court of appeals for further proceedings. Australian Operations Divestiture Dispute Pursuant to a Sale and Purchase Agreement dated April 9, 2015 (Quadrant SPA), the Company and its subsidiaries divested Australian operations to Quadrant Energy Pty Ltd (Quadrant). Closing occurred on June 5, 2015. In April 2017, the Company filed suit against Quadrant for breach of the Quadrant SPA. In its suit, the Company seeks approximately AUD $80 million. In December 2017, Quadrant filed a defense of equitable set-off to the Company’s claim and a counterclaim seeking approximately AUD $200 million in the aggregate. The Company will vigorously prosecute its claim while vigorously defending against Quadrant’s counter claims. California and Delaware Litigation On July 17, 2017, in three separate actions, San Mateo and Marin Counties, and the City of Imperial Beach, California, all filed suit individually and on behalf of the people of the state of California against over 30 oil and gas companies alleging damages as a result of global warming. Plaintiffs seek unspecified damages and abatement under various tort theories. On December 20, 2017, in two separate actions, the City of Santa Cruz and Santa Cruz County filed similar lawsuits against many of the same defendants. On January 22, 2018, the City of Richmond filed a similar lawsuit. On September 10, 2020, the State of Delaware filed suit, individually and on behalf of the people of the State of Delaware, against over 25 oil and gas companies alleging damages as a result of global warming. Plaintiffs seek unspecified damages and abatement under various tort theories. The Company intends to challenge personal jurisdiction in California and to vigorously defend the Delaware lawsuit. Kulp Minerals Lawsuit On or about April 7, 2023, Apache was sued in a purported class action in New Mexico styled Kulp Minerals LLC v. Apache Corporation , Case No. D-506-CV-2023-00352 in the Fifth Judicial District. The Kulp Minerals case has not been certified and seeks to represent a group of owners allegedly owed statutory interest under New Mexico law as a result of purported late oil and gas payments. The amount of this claim is not yet reasonably determinable. The Company intends to vigorously defend against the claims asserted in this lawsuit. Shareholder and Derivative Lawsuits On February 23, 2021, a case captioned Plymouth County Retirement System v. Apache Corporation, et al. was filed in the United States District Court for the Southern District of Texas (Houston Division) against the Company and certain current and former officers. The complaint, which is a shareholder lawsuit styled as a class action, alleges, among other things, that (1) the Company intentionally used unrealistic assumptions regarding the amount and composition of available oil and gas in Alpine High; (2) the Company did not have the proper infrastructure in place to safely and/or economically drill and/or transport those resources even if they existed in the amounts purported; (3) certain statements and omissions artificially inflated the value of the Company’s operations in the Permian Basin; and (4) as a result, the Company’s public statements were materially false and misleading. With no admission, concession, or finding of any fault, liability, or wrongdoing, but only to avoid the expense and uncertainty of litigation, the parties have agreed to a settlement resolving all claims made against the defendants by the class. The settlement agreement will be subject to court approval, and a hearing is expected to be held in the coming months. The settlement will not have a material effect on the Company’s financial position, results of operations, or liquidity and is subject to insurance coverage that companies have for these types of claims. On February 21, 2023, a case captioned Steve Silverman, Derivatively and on behalf of Nominal Defendant APA Corp. v. John J. Christmann IV, et al. was filed in federal district court for the Southern District of Texas. Then, on July 21, 2023, a case captioned Yang-Li-Yu, Derivatively and on behalf of Nominal Defendant APA Corp. v. John J. Christmann IV, et al. was filed in federal district court for the Southern District of Texas. These cases have now been consolidated as In Re APA Corporation Derivative Litigation , Case No. 4:23-cv-00636 in the Southern District of Texas and purport to be derivative actions brought against senior management and Company directors over many of the same allegations included in the Plymouth County Retirement System matter and asserts claims of (1) breach of fiduciary duty; (2) waste of corporate assets; and (3) unjust enrichment. The defendants filed a motion to dismiss the consolidated lawsuits, which is fully briefed and will remain pending following settlement of the Plymouth County Retirement System case noted above. Environmental Matters As of March 31, 2024, the Company had an undiscounted reserve for environmental remediation of approximately $5 million. On September 11, 2020, the Company received a Notice of Violation and Finding of Violation, and accompanying Clean Air Act Information Request, from the U.S. Environmental Protection Agency (EPA) following site inspections in April 2019 at several of the Company’s oil and natural gas production facilities in Lea and Eddy Counties, New Mexico. Then on December 29, 2020, the Company received a Notice of Violation and Opportunity to Confer, and accompanying Clean Air Act Information Request, from the EPA following helicopter flyovers in September 2019 of several of the Company’s oil and natural gas production facilities in Reeves County, Texas. The notices and information requests involved alleged emissions control and reporting violations. The Company cooperated with the EPA, responded to the information requests, and negotiated and entered into a consent decree to resolve the alleged violations in both New Mexico and Texas, which has been approved and entered by the Court. The consideration provided by the Company in connection with the consent decree, which includes a $4 million payment, will not have a material impact on the Company’s financial position. The Company is not aware of any environmental claims existing as of March 31, 2024, that have not been provided for or would otherwise have a material impact on its financial position, results of operations, or liquidity. There can be no assurance, however, that current regulatory requirements will not change or past non-compliance with environmental laws will not be discovered on the Company’s properties. Potential Decommissioning Obligations on Sold Properties In 2013, Apache sold its Gulf of Mexico (GOM) Shelf operations and properties and its GOM operating subsidiary, GOM Shelf LLC (GOM Shelf) to Fieldwood Energy LLC (Fieldwood). Fieldwood assumed the obligation to decommission the properties held by GOM Shelf and the properties acquired from Apache and its other subsidiaries (collectively, the Legacy GOM Assets). On February 14, 2018, Fieldwood filed for (and subsequently emerged from) Chapter 11 bankruptcy protection. On August 3, 2020, Fieldwood filed for (and subsequently emerged from) Chapter 11 bankruptcy protection for a second time. Upon emergence from this second bankruptcy, the Legacy GOM Assets were separated into a standalone company, which was subsequently merged into GOM Shelf. Under GOM Shelf’s limited liability company agreement, the proceeds of production of the Legacy GOM Assets are to be used to fund the operation of GOM Shelf and the decommissioning of Legacy GOM Assets. Pursuant to the terms of the original transaction, as amended in the first bankruptcy, the securing of the asset retirement obligations for the Legacy GOM Assets as and when Apache is required to perform or pay for any such decommissioning was accomplished through the posting of letters of credit in favor of Apache (Letters of Credit), the provision of two bonds (Bonds) in favor of Apache, and the establishment of a trust account of which Apache was a beneficiary and which was funded by net profits interests (NPIs) depending on future oil prices. In addition, after such sources have been exhausted, Apache agreed upon resolution of GOM Shelf’s second bankruptcy to provide a standby loan to GOM Shelf of up to $400 million to perform decommissioning, with such standby loan secured by a first and prior lien on the Legacy GOM Assets. By letter dated April 5, 2022 (replacing two earlier letters) and by subsequent letter dated March 1, 2023, GOM Shelf notified the Bureau of Safety and Environmental Enforcement (BSEE) that it was unable to fund the decommissioning obligations that it was obligated to perform on certain of the Legacy GOM Assets. As a result, Apache and other current and former owners in these assets have received orders from BSEE and demands from third parties to decommission certain of the Legacy GOM Assets included in GOM Shelf’s notifications to BSEE. Apache expects to receive similar orders and demands on the other Legacy GOM Assets included in GOM Shelf’s notification letters. Apache has also received orders to decommission other Legacy GOM Assets that were not included in GOM Shelf’s notification letters. Further, Apache anticipates that GOM Shelf may send additional such notices to BSEE in the future and that it may receive additional orders from BSEE requiring it to decommission other Legacy GOM Assets. On June 21, 2023, two sureties that issued Bonds directly to Apache and two sureties that issued bonds to the issuing bank on the Letters of Credit filed suit against Apache in a case styled Zurich American Insurance Company, HCC International Insurance Company PLC, Philadelphia Indemnity Insurance Company and Everest Reinsurance Company (Insurers) v. Apache Corporation , Cause No. 2023-38238 in the 281 st Judicial District Court, Harris County Texas. The sureties sought to prevent Apache from drawing on the Bonds and Letters of Credit and further alleged that they are discharged from their reimbursement obligations related to decommissioning costs and are entitled to other relief. On July 20, 2023, the 281 st Judicial District Court denied the Insurers’ request for a temporary injunction. On July 26, 2023, Apache removed the suit to the United States Bankruptcy Court for the Southern District of Texas (Houston Division) which subsequently held that the sureties’ state court lawsuit violated the terms of the Bankruptcy Confirmation Order and is void. Since the time the sureties filed their state court lawsuit, Apache has drawn down the entirety of the Letters of Credit. Apache has also sought to draw down on the Bonds; however, the sureties refuse to pay such Bond draws. Apache is vigorously pursuing its claims against the sureties. As of March 31, 2024, the Company has recorded a $186 million asset, which represents the remaining amount the Company expects to be reimbursed from security related to these decommissioning costs. The Company has recorded contingent liabilities in the amounts of $847 million and $824 million as of March 31, 2024 and December 31, 2023, respectively, representing the estimated costs of decommissioning it may be required to perform on legacy GOM properties previously sold to Fieldwood and other GOM operators. During the first quarter of 2024, the Company recognized $66 million of “Loss on previously sold Gulf of Mexico properties,” which includes increases of $33 million related to orders received during the period from BSEE to decommission properties previously sold to Cox Operating LLC. The Company recognized no losses for decommissioning previously sold properties during the first quarter of 2023. There have been no other changes in estimates from December 31, 2023 that would have a material impact on the Company’s financial position, results of operations, or liquidity. |
CAPITAL STOCK
CAPITAL STOCK | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
CAPITAL STOCK | CAPITAL STOCK Net Income per Common Share The following table presents a reconciliation of the components of basic and diluted net income per common share in the consolidated financial statements: For the Quarter Ended March 31, 2024 2023 Income Shares Per Share Income Shares Per Share (In millions, except per share amounts) Basic: Income attributable to common stock $ 132 302 $ 0.44 $ 242 311 $ 0.78 Effect of Dilutive Securities: Stock compensation awards $ — — $ — $ — 1 $ — Diluted: Income attributable to common stock $ 132 302 $ 0.44 $ 242 312 $ 0.78 The diluted earnings per share calculation excludes options and restricted stock units that were anti-dilutive of 2.1 million and 2.4 million during the first quarters of 2024 and 2023, respectively. Stock Repurchase Program During the fourth quarter of 2021, the Company’s Board of Directors authorized the purchase of 40 million shares of the Company’s common stock. During the third quarter of 2022, the Company's Board of Directors authorized the purchase of an additional 40 million shares of the Company's common stock. In the first quarter of 2024, the Company repurchased approximately 3.0 million shares at an average price of $33.27 per share, and as of March 31, 2024, the Company had remaining authorization to repurchase up to 40.9 million shares. In the first quarter of 2023, the Company repurchased 3.7 million shares at an average price of $38.93 per share. The Company is not obligated to acquire any additional shares. Shares may be purchased either in the open market or through privately negotiated transactions. Common Stock Dividend For the quarters ended March 31, 2024 and 2023, the Company paid $76 million and $78 million, respectively, in dividends on its common stock. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION As of March 31, 2024, the Company’s consolidated subsidiaries are engaged in exploration and production (Upstream) activities across three operating segments: the U.S., Egypt, and North Sea. The Company’s Upstream business explores for, develops, and produces crude oil, natural gas, and natural gas liquids. The Company also has active exploration and planned appraisal operations ongoing in Suriname, as well as interests in Uruguay and other international locations that may, over time, result in reportable discoveries and development opportunities. Financial information for each segment is presented below: U.S. Egypt (1) North Sea Intersegment Total (4) For the Quarter Ended March 31, 2024 (In millions) Revenues: Oil revenues $ 588 $ 657 $ 187 $ — $ 1,432 Natural gas revenues 57 77 42 — 176 Natural gas liquids revenues 131 — 9 — 140 Oil, natural gas, and natural gas liquids production revenues 776 734 238 — 1,748 Purchased oil and gas sales 203 — — — 203 979 734 238 — 1,951 Operating Expenses: Lease operating expenses 140 120 78 — 338 Gathering, processing, and transmission 64 6 14 — 84 Purchased oil and gas costs 163 — — — 163 Taxes other than income 57 — — — 57 Exploration 70 31 — 47 148 Depreciation, depletion, and amortization 214 145 71 — 430 Asset retirement obligation accretion 15 — 25 — 40 723 302 188 47 1,260 Operating Income (Loss) (2) $ 256 $ 432 $ 50 $ (47) 691 Other Income (Expense): Derivative instrument losses, net (4) Loss on previously sold Gulf of Mexico properties (66) Gain on divestitures, net 7 Other, net 15 General and administrative (93) Transaction, reorganization, and separation (27) Financing costs, net (76) Income Before Income Taxes $ 447 Total Assets (3) $ 8,887 $ 3,651 $ 1,897 $ 517 $ 14,952 U.S. Egypt (1) North Sea Intersegment Total (4) For the Quarter Ended March 31, 2023 (In millions) Revenues: Oil revenues $ 486 $ 629 $ 282 $ — $ 1,397 Natural gas revenues 89 93 60 — 242 Natural gas liquids revenues 120 — 10 — 130 Oil, natural gas, and natural gas liquids production revenues 695 722 352 — 1,769 Purchased oil and gas sales 239 — — — 239 934 722 352 — 2,008 Operating Expenses: Lease operating expenses 147 97 77 — 321 Gathering, processing, and transmission 60 7 11 — 78 Purchased oil and gas costs 216 — — — 216 Taxes other than income 52 — — — 52 Exploration 3 36 5 8 52 Depreciation, depletion, and amortization 151 123 58 — 332 Asset retirement obligation accretion 10 — 18 — 28 639 263 169 8 1,079 Operating Income (Loss) (2) $ 295 $ 459 $ 183 $ (8) 929 Other Income (Expense): Derivative instrument gains, net 53 Gain on divestitures, net 1 Other, net (32) General and administrative (65) Transaction, reorganization, and separation (4) Financing costs, net (72) Income Before Income Taxes $ 810 Total Assets (3) $ 7,525 $ 3,334 $ 1,836 $ 518 $ 13,213 (1) Includes oil and gas production revenue that will be paid as taxes by EGPC on behalf of the Company for the quarters ended March 31, 2024 and 2023 of: For the Quarter Ended March 31, 2024 2023 (In millions) Oil $ 174 $ 172 Natural gas 21 26 (2) Operating income of U.S. includes leasehold impairments of $10 million for the first quarter of 2024. (3) Intercompany balances are excluded from total assets. (4) Includes noncontrolling interests in Egypt. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of APA and its subsidiaries after elimination of intercompany balances and transactions. The Company’s undivided interests in oil and gas exploration and production ventures and partnerships are proportionately consolidated. The Company consolidates all other investments in which, either through direct or indirect ownership, it has more than a 50 percent voting interest or controls the financial and operating decisions. Sinopec International Petroleum Exploration and Production Corporation (Sinopec) owns a one-third minority participation in the Company’s consolidated Egypt oil and gas business as a noncontrolling interest, which is reflected as a separate noncontrolling interest component of equity in the Company’s consolidated balance sheet. The Company has determined that a limited partnership and APA subsidiary, which has control over APA’s Egyptian operations, qualifies as a variable interest entity (VIE) under GAAP. Apache consolidates the activities of APA’s Egyptian operations because it has concluded that a wholly owned subsidiary has a controlling financial interest in APA’s Egyptian operations and was determined to be the primary beneficiary of the VIE. Investments in which the Company has significant influence, but not control, are accounted for under the equity method of accounting. During each of the periods ended March 31, 2024 and 2023, the Company had a designated director on the Kinetik Holdings Inc. (Kinetik) board of directors. As a result, the Company is considered to have had significant influence over Kinetik for all periods presented. The Company’s designated director resigned from the Kinetik board of directors on April 3, 2024. |
Use of Estimates | Use of Estimates Preparation of financial statements in conformity with GAAP and disclosure of contingent assets and liabilities requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. The Company evaluates its estimates and assumptions on a regular basis. Actual results may differ from these estimates and assumptions used in preparation of the Company’s financial statements, and changes in these estimates are recorded when known. Significant estimates with regard to these financial statements include the estimates of fair value for long-lived assets (refer to “Fair Value Measurements” and “Property and Equipment” sections in this Note 1 below), the fair value determination of acquired assets and liabilities (refer to Note 2—Acquisitions and Divestitures ), the assessment of asset retirement obligations (refer to Note 8—Asset Retirement Obligation ), the estimate of income taxes (refer to Note 10—Income Taxes ), the estimation of the contingent liability representing Apache’s potential decommissioning obligations on sold properties in the Gulf of Mexico (refer to Note 11—Commitments and Contingencies ), and the estimate of proved oil and gas reserves and related present value estimates of future net cash flows therefrom. |
Fair Value Measurements | Fair Value Measurements Certain assets and liabilities are reported at fair value on a recurring basis in the Company’s consolidated balance sheet. Accounting Standards Codification (ASC) 820-10-35, “Fair Value Measurement” (ASC 820), provides a hierarchy that prioritizes and defines the types of inputs used to measure fair value. The fair value hierarchy gives the highest priority to Level 1 inputs, which consist of unadjusted quoted prices for identical instruments in active markets. Level 2 inputs consist of quoted prices for similar instruments. Level 3 valuations are derived from inputs that are significant and unobservable; hence, these valuations have the lowest priority. The valuation techniques that may be used to measure fair value include a market approach, an income approach, and a cost approach. A market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. An income approach uses valuation techniques to convert future amounts to a single present amount based on current market expectations, including present value techniques, option-pricing models, and the excess earnings method. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). |
Revenue Recognition | Revenue Recognition Receivables from contracts with customers, including receivables for purchased oil and gas sales and net of allowance for credit losses, were $1.4 billion and $1.5 billion as of March 31, 2024 and December 31, 2023, respectively. Payments under all contracts with customers are typically due and received within a short-term period of one year or less, after physical delivery of the product or service has been rendered. Over the past year, the Company experienced a gradual decline in the timeliness of receipts from the Egyptian General Petroleum Corporation (EGPC) for the Company’s Egyptian oil and gas sales. Although the Company continues to receive periodic payments from EGPC, economic conditions in Egypt have lessened the availability of U.S. dollars in Egypt, resulting in a delay in receipts from EGPC. Continuation of the currency shortage in Egypt could lead to further delays, deferrals of payment, or non-payment in the future; however, the Company currently anticipates that it will ultimately be able to collect its receivable from EGPC. Oil and gas production revenues include income taxes that will be paid to the Arab Republic of Egypt by EGPC on behalf of the Company. Revenue and associated expenses related to such tax volumes are recorded as “Oil, natural gas, and natural gas liquids production revenues” and “Current income tax provision,” respectively, in the Company’s statement of consolidated operations. Refer to Note 13—Business Segment Information for a disaggregation of oil, gas, and natural gas production revenue by product and reporting segment. |
Inventories | Inventories Inventories consist principally of tubular goods and equipment and are stated at the lower of weighted-average cost or net realizable value. Oil produced but not sold, primarily in the North Sea, is also recorded to inventory and is stated at the lower of the cost to produce or net realizable value. |
Property and Equipment | Property and Equipment |
Oil and Gas Property | Oil and Gas Property The Company follows the successful efforts method of accounting for its oil and gas property. Under this method of accounting, exploration costs, production costs, general corporate overhead, and similar activities are expensed as incurred. If an exploratory well provides evidence to justify potential development of reserves, drilling costs associated with the well are initially capitalized, or suspended, pending a determination as to whether a commercially sufficient quantity of proved reserves can be attributed to the area as a result of drilling. At the end of each quarter, management reviews the status of all suspended exploratory well costs in light of ongoing exploration activities, and if management determines that future appraisal drilling or development activities are unlikely to occur, associated suspended exploratory well costs are expensed. Costs to develop proved reserves, including the costs of all development wells and related equipment used in the production of crude oil and natural gas, are capitalized. Depreciation of the cost of proved oil and gas properties is calculated using the unit-of-production (UOP) method. The UOP calculation multiplies the percentage of estimated proved reserves produced each quarter by the carrying value of associated proved oil and gas properties. When circumstances indicate that the carrying value of proved oil and gas properties may not be recoverable, the Company compares unamortized capitalized costs to the expected undiscounted pre-tax future cash flows for the associated assets grouped at the lowest level for which identifiable cash flows are independent of cash flows of other assets. If the expected undiscounted pre-tax future cash flows, based on the Company’s estimate of future crude oil and natural gas prices, operating costs, anticipated production from proved reserves and other relevant data, are lower than the unamortized capitalized cost, the capitalized cost is reduced to fair value. |
Gathering, Processing, and Transmission (GPT) Facilities | Gathering, Processing, and Transmission (GPT) Facilities GPT facilities are depreciated on a straight-line basis over the estimated useful lives of the assets. The estimation of useful life takes into consideration anticipated production lives from the fields serviced by the GPT assets, whether APA-operated or third party-operated, as well as potential development plans by the Company for undeveloped acreage within, or close to, those fields. |
New Pronouncements Issued But Not Yet Adopted | New Pronouncements Issued But Not Yet Adopted There were no material changes in recently issued or adopted accounting standards from those disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023. |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Commodity Derivative Positions | As of March 31, 2024, the Company had the following open natural gas financial basis swap contracts: Basis Swap Purchased Basis Swap Sold Production Period Settlement Index MMBtu Weighted Average Price Differential MMBtu Weighted Average Price Differential April—June 2024 NYMEX Henry Hub/IF Waha 8,190 $(1.15) — — April—June 2024 NYMEX Henry Hub/IF HSC — — 8,190 $(0.10) |
Schedule of Derivative Assets Measured at Fair Value | The following table presents the Company’s derivative assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements Using Quoted Price in Active Markets Significant Other Inputs Significant Unobservable Inputs Total Netting (1) Carrying Amount (In millions) March 31, 2024 Liabilities: Commodity derivative instruments $ — $ 2 $ — $ 2 $ — $ 2 December 31, 2023 Assets: Commodity derivative instruments $ — $ 6 $ — $ 6 $ — $ 6 (1) The derivative fair values are based on analysis of each contract on a gross basis, excluding the impact of netting agreements with counterparties and reclassifications between long-term and short-term balances. |
Schedule of Derivative Liabilities Measured at Fair Value | The following table presents the Company’s derivative assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements Using Quoted Price in Active Markets Significant Other Inputs Significant Unobservable Inputs Total Netting (1) Carrying Amount (In millions) March 31, 2024 Liabilities: Commodity derivative instruments $ — $ 2 $ — $ 2 $ — $ 2 December 31, 2023 Assets: Commodity derivative instruments $ — $ 6 $ — $ 6 $ — $ 6 (1) The derivative fair values are based on analysis of each contract on a gross basis, excluding the impact of netting agreements with counterparties and reclassifications between long-term and short-term balances. |
Schedule of Derivative Instruments on Consolidated Balance Sheet and Statement of Consolidated Operations | The carrying value of the Company’s derivative assets and liabilities and their locations on the consolidated balance sheet are as follows: March 31, 2024 December 31, 2023 (In millions) Current Assets: Other current assets $ — $ 6 Total derivative assets $ — $ 6 Current Liabilities: Other current liabilities $ 2 $ — Total derivative liabilities $ 2 $ — Derivative Activity Recorded in the Statement of Consolidated Operations The following table summarizes the effect of derivative instruments on the Company’s statement of consolidated operations: For the Quarter Ended March 31, 2024 2023 (In millions) Realized: Commodity derivative instruments $ 4 $ 20 Realized gains, net 4 20 Unrealized: Commodity derivative instruments (8) 33 Unrealized gains (losses), net (8) 33 Derivative instrument gains (losses), net $ (4) $ 53 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | The following table provides detail of the Company’s other current assets: March 31, 2024 December 31, 2023 (In millions) Inventories $ 472 $ 453 Drilling advances 116 88 Prepaid assets and other 54 46 Current decommissioning security for sold Gulf of Mexico assets 165 178 Total Other current assets $ 807 $ 765 |
EQUITY METHOD INTERESTS (Tables
EQUITY METHOD INTERESTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investment Information | The following table represents related party sales and costs associated with Kinetik prior to the Company’s sale of its remaining Kinetik Shares and the resignation of the Company’s designated director from the Kinetik board of directors: For the Quarter Ended March 31, 2024 2023 (In millions) Natural gas and NGLs sales $ 13 $ 14 Purchased oil and gas sales 22 — $ 35 $ 14 Gathering, processing, and transmission costs $ 23 $ 26 Purchased oil and gas costs 23 — Lease operating expenses 2 — $ 48 $ 26 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Other Current Liabilities | The following table provides detail of the Company’s other current liabilities: March 31, 2024 December 31, 2023 (In millions) Accrued operating expenses $ 165 $ 162 Accrued exploration and development 530 371 Accrued compensation and benefits 136 390 Accrued interest 67 93 Accrued income taxes 86 138 Current asset retirement obligation 75 76 Current operating lease liability 119 116 Current decommissioning contingency for sold Gulf of Mexico properties 40 60 Other 238 338 Total Other current liabilities $ 1,456 $ 1,744 |
ASSET RETIREMENT OBLIGATION (Ta
ASSET RETIREMENT OBLIGATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligation | The following table describes changes to the Company’s asset retirement obligation (ARO) liability: March 31, 2024 (In millions) Asset retirement obligation, December 31, 2023 $ 2,438 Liabilities incurred 1 Liabilities acquired 4 Liabilities settled (9) Accretion expense 40 Revisions in estimated liabilities 1 Asset retirement obligation, March 31, 2024 2,475 Less current portion (75) Asset retirement obligation, long-term $ 2,400 |
DEBT AND FINANCING COSTS (Table
DEBT AND FINANCING COSTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table presents the carrying values of the Company’s debt: March 31, 2024 December 31, 2023 (In millions) Apache notes and debentures before unamortized discount and debt issuance costs (1) $ 4,835 $ 4,835 Commercial paper and syndicated credit facilities (2) 370 372 Apache finance lease obligations 31 32 Unamortized discount (26) (26) Debt issuance costs (30) (25) Total debt 5,180 5,188 Current maturities (2) (2) Long-term debt $ 5,178 $ 5,186 (1) The fair values of the Apache notes and debentures were $4.3 billion at each of March 31, 2024 and December 31, 2023. The Company uses a market approach to determine the fair values of its notes and debentures using estimates provided by an independent investment financial data services firm (a Level 2 fair value measurement). (2) The carrying value of borrowings on commercial paper and credit facilities approximates fair value because interest rates are variable and reflective of market rates. |
Schedule Of Financing Costs, Net | The following table presents the components of the Company’s financing costs, net: For the Quarter Ended March 31, 2024 2023 (In millions) Interest expense $ 85 $ 88 Amortization of debt issuance costs 1 1 Capitalized interest (7) (6) Gain on extinguishment of debt — (9) Interest income (3) (2) Financing costs, net $ 76 $ 72 |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule Reconciliation of the Components of Basic and Diluted Net Income Per Common Share | The following table presents a reconciliation of the components of basic and diluted net income per common share in the consolidated financial statements: For the Quarter Ended March 31, 2024 2023 Income Shares Per Share Income Shares Per Share (In millions, except per share amounts) Basic: Income attributable to common stock $ 132 302 $ 0.44 $ 242 311 $ 0.78 Effect of Dilutive Securities: Stock compensation awards $ — — $ — $ — 1 $ — Diluted: Income attributable to common stock $ 132 302 $ 0.44 $ 242 312 $ 0.78 |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Financial Segment Information | Financial information for each segment is presented below: U.S. Egypt (1) North Sea Intersegment Total (4) For the Quarter Ended March 31, 2024 (In millions) Revenues: Oil revenues $ 588 $ 657 $ 187 $ — $ 1,432 Natural gas revenues 57 77 42 — 176 Natural gas liquids revenues 131 — 9 — 140 Oil, natural gas, and natural gas liquids production revenues 776 734 238 — 1,748 Purchased oil and gas sales 203 — — — 203 979 734 238 — 1,951 Operating Expenses: Lease operating expenses 140 120 78 — 338 Gathering, processing, and transmission 64 6 14 — 84 Purchased oil and gas costs 163 — — — 163 Taxes other than income 57 — — — 57 Exploration 70 31 — 47 148 Depreciation, depletion, and amortization 214 145 71 — 430 Asset retirement obligation accretion 15 — 25 — 40 723 302 188 47 1,260 Operating Income (Loss) (2) $ 256 $ 432 $ 50 $ (47) 691 Other Income (Expense): Derivative instrument losses, net (4) Loss on previously sold Gulf of Mexico properties (66) Gain on divestitures, net 7 Other, net 15 General and administrative (93) Transaction, reorganization, and separation (27) Financing costs, net (76) Income Before Income Taxes $ 447 Total Assets (3) $ 8,887 $ 3,651 $ 1,897 $ 517 $ 14,952 U.S. Egypt (1) North Sea Intersegment Total (4) For the Quarter Ended March 31, 2023 (In millions) Revenues: Oil revenues $ 486 $ 629 $ 282 $ — $ 1,397 Natural gas revenues 89 93 60 — 242 Natural gas liquids revenues 120 — 10 — 130 Oil, natural gas, and natural gas liquids production revenues 695 722 352 — 1,769 Purchased oil and gas sales 239 — — — 239 934 722 352 — 2,008 Operating Expenses: Lease operating expenses 147 97 77 — 321 Gathering, processing, and transmission 60 7 11 — 78 Purchased oil and gas costs 216 — — — 216 Taxes other than income 52 — — — 52 Exploration 3 36 5 8 52 Depreciation, depletion, and amortization 151 123 58 — 332 Asset retirement obligation accretion 10 — 18 — 28 639 263 169 8 1,079 Operating Income (Loss) (2) $ 295 $ 459 $ 183 $ (8) 929 Other Income (Expense): Derivative instrument gains, net 53 Gain on divestitures, net 1 Other, net (32) General and administrative (65) Transaction, reorganization, and separation (4) Financing costs, net (72) Income Before Income Taxes $ 810 Total Assets (3) $ 7,525 $ 3,334 $ 1,836 $ 518 $ 13,213 (1) Includes oil and gas production revenue that will be paid as taxes by EGPC on behalf of the Company for the quarters ended March 31, 2024 and 2023 of: For the Quarter Ended March 31, 2024 2023 (In millions) Oil $ 174 $ 172 Natural gas 21 26 (2) Operating income of U.S. includes leasehold impairments of $10 million for the first quarter of 2024. (3) Intercompany balances are excluded from total assets. (4) Includes noncontrolling interests in Egypt. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Schedule Of Significant Accounting Policies [Line Items] | |||
Other asset impairments | $ 0 | $ 0 | |
Receivables from contracts with customer, net | $ 1,400,000,000 | $ 1,500,000,000 | |
Sinopec | Apache Egypt | |||
Schedule Of Significant Accounting Policies [Line Items] | |||
Ownership percentage by noncontrolling owners | 33.33% |
ACQUISITIONS AND DIVESTITURES (
ACQUISITIONS AND DIVESTITURES (Details) shares in Millions, $ in Millions | 3 Months Ended | |||
Apr. 01, 2024 USD ($) shares | Mar. 18, 2024 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | |
Business Acquisition [Line Items] | ||||
Proceeds from sale of Kinetik Shares | $ 428 | $ 0 | ||
Payments to acquire leasehold and property | 63 | 6 | ||
Proceeds from asset divestitures | 27 | 21 | ||
Permian Basin | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire leasehold and property | 6 | |||
Disposed of by Sale | Non-Core Assets And Leasehold | ||||
Business Acquisition [Line Items] | ||||
Proceeds from asset divestitures | 27 | 21 | ||
Gain on sale of non-core assets | $ 7 | $ 1 | ||
Kinetik | ||||
Business Acquisition [Line Items] | ||||
Proceeds from sale of Kinetik Shares | $ 428 | |||
Callon Petroleum Company | Subsequent Event | ||||
Business Acquisition [Line Items] | ||||
Consideration transferred | $ 4,500 | |||
Business acquisition, equity interests exchange ratio | 1.0425 | |||
Business acquisition, equity interest issued or issuable, number of shares (in shares) | shares | 70 |
CAPITALIZED EXPLORATORY WELL _2
CAPITALIZED EXPLORATORY WELL COSTS (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Extractive Industries [Abstract] | ||
Capitalized exploratory well costs | $ 587 | $ 586 |
Exploratory well costs capitalized for a period greater than one year | $ 51 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 counterparty | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Number of derivative counterparties | 4 |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Open natural Gas Financial Basis Swap Contracts (Details) - April—June 2024 - Natural gas revenues MMBTU in Thousands | 3 Months Ended |
Mar. 31, 2024 $ / MMBTU MMBTU | |
Basis Swap Purchased | NYMEX Henry Hub/IF Waha | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative, nonmonetary notional amount (in MMBtu) | MMBTU | 8,190 |
Weighted average price differential (in USD per MMBtu ) | $ / MMBTU | (1.15) |
Basis Swap Sold | NYMEX Henry Hub/IF HSC | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Derivative, nonmonetary notional amount (in MMBtu) | MMBTU | 8,190 |
Weighted average price differential (in USD per MMBtu ) | $ / MMBTU | (0.10) |
DERIVATIVE INSTRUMENTS AND HE_5
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Derivative Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Liabilities: | ||
Derivative liabilities | $ 2 | $ 0 |
Assets: | ||
Derivative asset | 0 | 6 |
Recurring | Commodity derivative instruments | ||
Liabilities: | ||
Derivative liability, fair value | 2 | |
Derivative liability, netting | 0 | |
Derivative liabilities | 2 | |
Assets: | ||
Derivative asset, fair value | 6 | |
Derivative asset, netting | 0 | |
Derivative asset | 6 | |
Recurring | Quoted Price in Active Markets (Level 1) | Commodity derivative instruments | ||
Liabilities: | ||
Derivative liability, fair value | 0 | |
Assets: | ||
Derivative asset, fair value | 0 | |
Recurring | Significant Other Inputs (Level 2) | Commodity derivative instruments | ||
Liabilities: | ||
Derivative liability, fair value | 2 | |
Assets: | ||
Derivative asset, fair value | 6 | |
Recurring | Significant Unobservable Inputs (Level 3) | Commodity derivative instruments | ||
Liabilities: | ||
Derivative liability, fair value | $ 0 | |
Assets: | ||
Derivative asset, fair value | $ 0 |
DERIVATIVE INSTRUMENTS AND HE_6
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Assets and Liabilities and Locations on Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative assets, current | $ 0 | $ 6 |
Derivative asset | $ 0 | $ 6 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other current assets (Note 5) | Other current assets (Note 5) |
Derivative liabilities, current | $ 2 | $ 0 |
Derivative liabilities | $ 2 | $ 0 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current |
DERIVATIVE INSTRUMENTS AND HE_7
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Derivative Activities Recorded in the Statement of Consolidated Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized gains, net | $ 4 | $ 20 |
Unrealized gains (losses), net | (8) | 33 |
Derivative instrument gains (losses), net | (4) | 53 |
Commodity derivative instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized gains, net | 4 | 20 |
Unrealized gains (losses), net | $ (8) | $ 33 |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Inventories | $ 472 | $ 453 |
Drilling advances | 116 | 88 |
Prepaid assets and other | 54 | 46 |
Current decommissioning security for sold Gulf of Mexico assets | 165 | 178 |
Total Other current assets | $ 807 | $ 765 |
EQUITY METHOD INTERESTS - Addit
EQUITY METHOD INTERESTS - Additional Information (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |||
Mar. 18, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity method interests | $ 0 | $ 437 | ||
Proceeds from sale of Kinetik Shares | 428 | $ 0 | ||
Kinetik | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, number of shares (in shares) | 13.1 | |||
Equity method interests | $ 437 | |||
Proceeds from sale of Kinetik Shares | $ 428 | |||
Losses on changes in fair value of equity method interest | $ 9 | $ 19 |
EQUITY METHOD INTERESTS - Sales
EQUITY METHOD INTERESTS - Sales and Costs Associated with Equity Method Interest (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | ||
Schedule of Equity Method Investments [Line Items] | |||
Lease operating expenses | [1] | $ 338 | $ 321 |
Total operating expenses | 1,456 | 1,220 | |
Kinetik | |||
Schedule of Equity Method Investments [Line Items] | |||
Total revenues | 35 | 14 | |
Lease operating expenses | 2 | 0 | |
Total operating expenses | 48 | 26 | |
Oil and Gas, excluding purchased | |||
Schedule of Equity Method Investments [Line Items] | |||
Total revenues | [1] | 1,748 | 1,769 |
Costs | [1] | 84 | 78 |
Oil and Gas, excluding purchased | Kinetik | |||
Schedule of Equity Method Investments [Line Items] | |||
Total revenues | 13 | 14 | |
Costs | 23 | 26 | |
Purchased oil and gas sales | |||
Schedule of Equity Method Investments [Line Items] | |||
Total revenues | [1] | 203 | 239 |
Costs | [1] | 163 | 216 |
Purchased oil and gas sales | Kinetik | |||
Schedule of Equity Method Investments [Line Items] | |||
Total revenues | 22 | 0 | |
Costs | $ 23 | $ 0 | |
[1]For transactions with Kinetik prior to the Company’s sale of its remaining shares of Kinetik Class A Common Stock and the resignation of the Company’s designated director from the Kinetik board of directors, refer to Note 6—Equity Method Interests . |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Payables and Accruals [Abstract] | ||
Accrued operating expenses | $ 165 | $ 162 |
Accrued exploration and development | 530 | 371 |
Accrued compensation and benefits | 136 | 390 |
Accrued interest | 67 | 93 |
Accrued income taxes | 86 | 138 |
Current asset retirement obligation | 75 | 76 |
Current operating lease liability | 119 | 116 |
Current decommissioning contingency for sold Gulf of Mexico properties | 40 | 60 |
Other | 238 | 338 |
Total Other current liabilities | $ 1,456 | $ 1,744 |
ASSET RETIREMENT OBLIGATION (De
ASSET RETIREMENT OBLIGATION (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Asset retirement obligation at the beginning of period | $ 2,438 | ||
Liabilities incurred | 1 | ||
Liabilities acquired | 4 | ||
Liabilities settled | (9) | ||
Accretion expense | 40 | $ 28 | |
Revisions in estimated liabilities | 1 | ||
Asset retirement obligation at the end of period | 2,475 | ||
Less current portion | (75) | $ (76) | |
Asset retirement obligation, long-term | $ 2,400 | $ 2,362 |
DEBT AND FINANCING COSTS - Sche
DEBT AND FINANCING COSTS - Schedule of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Apache finance lease obligations | $ 31 | $ 32 |
Unamortized discount | (26) | (26) |
Debt issuance costs | (30) | (25) |
Total debt | 5,180 | 5,188 |
Current maturities | (2) | (2) |
Long-term debt | 5,178 | 5,186 |
Apache notes and debentures | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 4,835 | 4,835 |
Debt instrument, fair value | 4,300 | 4,300 |
Commercial paper and syndicated credit facilities | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 370 | $ 372 |
DEBT AND FINANCING COSTS - Addi
DEBT AND FINANCING COSTS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |||
Finance lease obligations, current | $ 2 | $ 2 | |
Debt Instrument [Line Items] | |||
Gain (loss) on extinguishment of debt | $ 0 | $ 9 | |
Open Market Repurchase | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt repurchased principal amount | 74 | ||
Debt repurchase amount | 65 | ||
Gain (loss) on extinguishment of debt | $ 9 |
DEBT AND FINANCING COSTS - Fina
DEBT AND FINANCING COSTS - Financing Costs, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Disclosure [Abstract] | ||
Interest expense | $ 85 | $ 88 |
Amortization of debt issuance costs | 1 | 1 |
Capitalized interest | (7) | (6) |
Gain on extinguishment of debt | 0 | (9) |
Interest income | (3) | (2) |
Financing costs, net | $ 76 | $ 72 |
DEBT AND FINANCING COSTS - Unse
DEBT AND FINANCING COSTS - Unsecured 2022 Committed Bank Credit Facilities (Details) £ in Millions | Apr. 29, 2022 USD ($) option credit_agreement | Mar. 31, 2024 USD ($) | Mar. 31, 2024 GBP (£) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 GBP (£) | Apr. 29, 2022 GBP (£) credit_agreement |
Syndicated credit facility | Unsecured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Number of syndicated credit agreements | credit_agreement | 2 | 2 | ||||
USD Agreement | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument term | 5 years | |||||
Line of credit facility, committed amount | $ 1,800,000,000 | |||||
Line of credit facility, increased committed amount | $ 2,300,000,000 | |||||
Line of credit facility, number of extension options | option | 2 | |||||
Debt extension term | 1 year | |||||
Credit facility outstanding amount | $ 30,000,000 | $ 372,000,000 | ||||
USD Agreement | Line of Credit | Apache Corp | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility maximum borrowing capacity | $ 300,000,000 | |||||
USD Agreement | Line of Credit | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility maximum borrowing capacity | 750,000,000 | |||||
Line of credit facility, current borrowing capacity | $ 150,000,000 | |||||
Letters of credit outstanding, amount | $ 0 | |||||
GBP Agreement | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument term | 5 years | |||||
Line of credit facility, committed amount | £ | £ 1,500 | |||||
Line of credit facility, number of extension options | option | 2 | |||||
Debt extension term | 1 year | |||||
GBP Agreement | Line of Credit | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Letters of credit outstanding, amount | £ | £ 348 | £ 348 | ||||
Former Facility | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, covenant benchmark amount | $ 1,000,000,000 |
DEBT AND FINANCING COSTS - Unco
DEBT AND FINANCING COSTS - Uncommitted Lines of Credit (Details) - Apache credit facility £ in Millions | Mar. 31, 2024 USD ($) | Mar. 31, 2024 GBP (£) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 GBP (£) |
Debt Instrument [Line Items] | ||||
Letters of credit outstanding, amount | $ 2,000,000 | £ 416 | $ 2,000,000 | £ 416 |
Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Credit facility outstanding amount | $ 0 |
DEBT AND FINANCING COSTS - Comm
DEBT AND FINANCING COSTS - Commercial Paper Program (Details) - USD ($) | 1 Months Ended | ||
Apr. 29, 2022 | Dec. 31, 2023 | Mar. 31, 2024 | |
USD Agreement | Line of Credit | |||
Debt Instrument [Line Items] | |||
Debt instrument term | 5 years | ||
Line of credit facility, committed amount | $ 1,800,000,000 | ||
Commercial paper | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 1,800,000,000 | ||
Debt instrument term | 397 days | ||
Debt instrument guarantee terms, benchmark amount (less than) | $ 1,000,000,000 | ||
Commercial paper | $ 0 | $ 340,000,000 |
DEBT AND FINANCING COSTS - Un_2
DEBT AND FINANCING COSTS - Unsecured Committed Term Loan Facility (Details) - Delayed-Drawn Term Loan - Unsecured Debt | Jan. 30, 2024 USD ($) |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 2,000,000,000 |
Debt instrument guarantee terms, benchmark amount (less than) | $ 1,000,000,000 |
DEBT AND FINANCING COSTS - Subs
DEBT AND FINANCING COSTS - Subsequent Events (Details) - USD ($) | Apr. 26, 2024 | Apr. 01, 2024 | Jan. 30, 2024 |
Term Loan Credit Agreement | Unsecured Debt | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 1,500,000,000 | ||
Delayed-Drawn Term Loan | Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 2,000,000,000 | ||
Delayed-Drawn Term Loan | Unsecured Debt | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | 2,000,000,000 | ||
Delayed-Drawn Term Loan, Three Year Tranche Loans | Unsecured Debt | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 1,500,000,000 | ||
Debt instrument term | 3 years | ||
Delayed-Drawn Term Loan, 364-Day Tranche Loans | Unsecured Debt | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 500,000,000 | ||
Debt instrument term | 364 days | ||
6.375% Senior Notes Due 2026 | Unsecured Debt | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Debt repurchase amount | $ 321,000,000 | ||
Debt redemption price, percentage | 101.063% | ||
6.375% Senior Notes Due 2026 | Senior Notes | Subsequent Event | Callon Petroleum Company | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 6.375% | ||
8.00% Senior Notes Due 2028 | Senior Notes | Subsequent Event | Callon Petroleum Company | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 8% | ||
Debt repurchase amount | $ 8,300,000 | ||
Debt redemption price, percentage | 101.588% | ||
7.500% Senior Notes Due 2030 | Senior Notes | Subsequent Event | Callon Petroleum Company | |||
Debt Instrument [Line Items] | |||
Debt interest rate | 7.50% | ||
Debt repurchase amount | $ 15,600,000 | ||
Debt redemption price, percentage | 102.803% | ||
Callon’s 2028 Notes and Callon’s 2030 Notes | Unsecured Debt | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Debt repurchased principal amount | $ 1,200,000,000 | ||
Debt repurchase amount | 1,300,000,000 | ||
Callon’s 2028 Notes and Callon’s 2030 Notes | Senior Notes | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 24,000,000 | ||
Callon Credit Agreement | Unsecured Debt | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Repayments of debt | $ 472,000,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 3 Months Ended | ||||||||||||
Sep. 10, 2020 defendant | Dec. 20, 2017 action | Jul. 17, 2017 action defendant | Mar. 21, 2016 USD ($) | Mar. 20, 2016 USD ($) | Mar. 31, 2024 USD ($) lawsuit bond | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Jun. 21, 2023 surety | Apr. 05, 2022 letter | Dec. 31, 2017 AUD ($) | Apr. 30, 2017 AUD ($) | Mar. 12, 2014 USD ($) | |
Commitment And Contingencies [Line Items] | |||||||||||||
Accrued liability for legal contingencies | $ 84,000,000 | ||||||||||||
Environmental tax and royalty obligations | $ 100,000,000 | ||||||||||||
Retain right of obligations | 45,000,000 | ||||||||||||
Undiscounted reserve for environmental remediation | 5,000,000 | ||||||||||||
Environmental remediation payments | 4,000,000 | ||||||||||||
Standby loan agreed to provide related to ARO (up to) | 400,000,000 | ||||||||||||
Number of prior letters notifying unable to fund decommissioning obligations | letter | 2 | ||||||||||||
Sureties issued bonds directly | surety | 2 | ||||||||||||
Sureties issued bonds to issuing bank | surety | 2 | ||||||||||||
Decommissioning security for sold properties | 186,000,000 | ||||||||||||
Loss on previously sold Gulf of Mexico properties | 66,000,000 | $ 0 | |||||||||||
Additional decommissioning contingency liability | $ 33,000,000 | ||||||||||||
Gulf Of Mexico Shelf Operations and Properties | Disposed of by Sale | |||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||
Number of bond held | bond | 2 | ||||||||||||
Minimum | |||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||
Decommissioning contingency for sold | $ 847,000,000 | $ 824,000,000 | |||||||||||
Apollo Exploration Lawsuit | |||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||
Plaintiffs alleged damages | $ 200,000,000 | ||||||||||||
Apollo Exploration Lawsuit | Minimum | |||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||
Plaintiffs alleged damages | $ 1,100,000,000 | ||||||||||||
Australian Operations Divestiture Dispute | Apache Australia Operation | |||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||
Gain contingency, unrecorded amount | $ 80 | ||||||||||||
Loss contingency, estimated of possible loss amount | $ 200 | ||||||||||||
California Litigation | |||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||
Number of actions filed | action | 2 | 3 | |||||||||||
Number of defendants | defendant | 30 | ||||||||||||
Delaware Litigation | |||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||
Number of defendants | defendant | 25 | ||||||||||||
Louisiana Restoration, Coastal Zone Lawsuits | |||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||
Number of pending lawsuits | lawsuit | 2 |
CAPITAL STOCK - Net Income Per
CAPITAL STOCK - Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Basic: | ||
Income attributable to common stock | $ 132 | $ 242 |
Income attributable to common stock (in shares) | 302 | 311 |
Income attributable to common stock (in USD per share) | $ 0.44 | $ 0.78 |
Diluted: | ||
Income attributable to common stock | $ 132 | $ 242 |
Income attributable to common stock (in shares) | 302 | 312 |
Income attributable to common stock (in USD per share) | $ 0.44 | $ 0.78 |
Stock compensation awards | ||
Effect of Dilutive Securities: | ||
Stock compensation awards | $ 0 | $ 0 |
Stock compensation awards (in shares) | 0 | 1 |
Stock options and other, per share (in USD per share) | $ 0 | $ 0 |
CAPITAL STOCK - Additional Info
CAPITAL STOCK - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Sep. 30, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | ||||
Options and restricted stock, anti-dilutive (in shares) | 2,100,000 | 2,400,000 | ||
Additional number of shares authorized to be repurchased (in shares) | 40,000,000 | 40,000,000 | ||
Treasury shares acquired (in shares) | 3,000,000 | 3,700,000 | ||
Treasure stock acquired, average price (in USD per share) | $ 33.27 | $ 38.93 | ||
Remaining authorized repurchase amount (in shares) | 40,900,000 | |||
Payments of dividend on common stock | $ 76 | $ 78 |
BUSINESS SEGMENT INFORMATION -
BUSINESS SEGMENT INFORMATION - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
BUSINESS SEGMENT INFORMATION _2
BUSINESS SEGMENT INFORMATION - Financial Segment Information (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | ||
Operating Expenses: | ||||
Lease operating expenses | [1] | $ 338,000,000 | $ 321,000,000 | |
Taxes other than income | 57,000,000 | 52,000,000 | ||
Exploration | 148,000,000 | 52,000,000 | ||
Depreciation, depletion, and amortization | 430,000,000 | 332,000,000 | ||
Asset retirement obligation accretion | 40,000,000 | 28,000,000 | ||
Total operating expenses | 1,260,000,000 | 1,079,000,000 | ||
Operating Income (Loss) | 691,000,000 | 929,000,000 | ||
Other Income (Expense): | ||||
Derivative instrument gains (losses), net | (4,000,000) | 53,000,000 | ||
Loss on previously sold Gulf of Mexico properties | (66,000,000) | 0 | ||
Gain on divestitures, net | 7,000,000 | 1,000,000 | ||
Other, net | 15,000,000 | (32,000,000) | ||
General and administrative | (93,000,000) | (65,000,000) | ||
Transaction, reorganization, and separation | (27,000,000) | (4,000,000) | ||
Financing costs, net | (76,000,000) | (72,000,000) | ||
NET INCOME BEFORE INCOME TAXES | 447,000,000 | 810,000,000 | ||
Total assets | 14,952,000,000 | 13,213,000,000 | $ 15,244,000,000 | |
Operating Segments | Segment United States | ||||
Operating Expenses: | ||||
Lease operating expenses | 140,000,000 | 147,000,000 | ||
Taxes other than income | 57,000,000 | 52,000,000 | ||
Exploration | 70,000,000 | 3,000,000 | ||
Depreciation, depletion, and amortization | 214,000,000 | 151,000,000 | ||
Asset retirement obligation accretion | 15,000,000 | 10,000,000 | ||
Total operating expenses | 723,000,000 | 639,000,000 | ||
Operating Income (Loss) | 256,000,000 | 295,000,000 | ||
Other Income (Expense): | ||||
Total assets | 8,887,000,000 | 7,525,000,000 | ||
Impairments | 10,000,000 | 2,000,000 | ||
Operating Segments | Egypt | ||||
Operating Expenses: | ||||
Lease operating expenses | 120,000,000 | 97,000,000 | ||
Taxes other than income | 0 | 0 | ||
Exploration | 31,000,000 | 36,000,000 | ||
Depreciation, depletion, and amortization | 145,000,000 | 123,000,000 | ||
Asset retirement obligation accretion | 0 | 0 | ||
Total operating expenses | 302,000,000 | 263,000,000 | ||
Operating Income (Loss) | 432,000,000 | 459,000,000 | ||
Other Income (Expense): | ||||
Total assets | 3,651,000,000 | 3,334,000,000 | ||
Operating Segments | North Sea | ||||
Operating Expenses: | ||||
Lease operating expenses | 78,000,000 | 77,000,000 | ||
Taxes other than income | 0 | 0 | ||
Exploration | 0 | 5,000,000 | ||
Depreciation, depletion, and amortization | 71,000,000 | 58,000,000 | ||
Asset retirement obligation accretion | 25,000,000 | 18,000,000 | ||
Total operating expenses | 188,000,000 | 169,000,000 | ||
Operating Income (Loss) | 50,000,000 | 183,000,000 | ||
Other Income (Expense): | ||||
Total assets | 1,897,000,000 | 1,836,000,000 | ||
Impairments | 3,000,000 | |||
Intersegment Eliminations & Other | ||||
Operating Expenses: | ||||
Lease operating expenses | 0 | 0 | ||
Taxes other than income | 0 | 0 | ||
Exploration | 47,000,000 | 8,000,000 | ||
Depreciation, depletion, and amortization | 0 | 0 | ||
Asset retirement obligation accretion | 0 | 0 | ||
Total operating expenses | 47,000,000 | 8,000,000 | ||
Operating Income (Loss) | (47,000,000) | (8,000,000) | ||
Other Income (Expense): | ||||
Total assets | 517,000,000 | 518,000,000 | ||
Gathering, processing, and transmission costs | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | [1] | 1,748,000,000 | 1,769,000,000 | |
Operating Expenses: | ||||
Gathering, processing, and transmission & purchased oil and gas costs | [1] | 84,000,000 | 78,000,000 | |
Gathering, processing, and transmission costs | Operating Segments | Segment United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 776,000,000 | 695,000,000 | ||
Operating Expenses: | ||||
Gathering, processing, and transmission & purchased oil and gas costs | 64,000,000 | 60,000,000 | ||
Gathering, processing, and transmission costs | Operating Segments | Egypt | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 734,000,000 | 722,000,000 | ||
Operating Expenses: | ||||
Gathering, processing, and transmission & purchased oil and gas costs | 6,000,000 | 7,000,000 | ||
Gathering, processing, and transmission costs | Operating Segments | North Sea | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 238,000,000 | 352,000,000 | ||
Operating Expenses: | ||||
Gathering, processing, and transmission & purchased oil and gas costs | 14,000,000 | 11,000,000 | ||
Gathering, processing, and transmission costs | Intersegment Eliminations & Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | ||
Operating Expenses: | ||||
Gathering, processing, and transmission & purchased oil and gas costs | 0 | 0 | ||
Purchased oil and gas sales | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | [1] | 203,000,000 | 239,000,000 | |
Operating Expenses: | ||||
Gathering, processing, and transmission & purchased oil and gas costs | [1] | 163,000,000 | 216,000,000 | |
Purchased oil and gas sales | Operating Segments | Segment United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 203,000,000 | 239,000,000 | ||
Operating Expenses: | ||||
Gathering, processing, and transmission & purchased oil and gas costs | 163,000,000 | 216,000,000 | ||
Purchased oil and gas sales | Operating Segments | Egypt | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | ||
Operating Expenses: | ||||
Gathering, processing, and transmission & purchased oil and gas costs | 0 | 0 | ||
Purchased oil and gas sales | Operating Segments | North Sea | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | ||
Operating Expenses: | ||||
Gathering, processing, and transmission & purchased oil and gas costs | 0 | 0 | ||
Purchased oil and gas sales | Intersegment Eliminations & Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | ||
Operating Expenses: | ||||
Gathering, processing, and transmission & purchased oil and gas costs | 0 | 0 | ||
Oil and gas | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,951,000,000 | 2,008,000,000 | ||
Oil and gas | Operating Segments | Segment United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 979,000,000 | 934,000,000 | ||
Oil and gas | Operating Segments | Egypt | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 734,000,000 | 722,000,000 | ||
Oil and gas | Operating Segments | North Sea | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 238,000,000 | 352,000,000 | ||
Oil and gas | Intersegment Eliminations & Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | ||
Oil revenues | ||||
Other Income (Expense): | ||||
Revenue from non-customers | 174,000,000 | 172,000,000 | ||
Oil revenues | Gathering, processing, and transmission costs | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,432,000,000 | 1,397,000,000 | ||
Oil revenues | Gathering, processing, and transmission costs | Operating Segments | Segment United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 588,000,000 | 486,000,000 | ||
Oil revenues | Gathering, processing, and transmission costs | Operating Segments | Egypt | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 657,000,000 | 629,000,000 | ||
Oil revenues | Gathering, processing, and transmission costs | Operating Segments | North Sea | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 187,000,000 | 282,000,000 | ||
Oil revenues | Gathering, processing, and transmission costs | Intersegment Eliminations & Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | ||
Natural gas revenues | ||||
Other Income (Expense): | ||||
Revenue from non-customers | 21,000,000 | 26,000,000 | ||
Natural gas revenues | Gathering, processing, and transmission costs | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 176,000,000 | 242,000,000 | ||
Natural gas revenues | Gathering, processing, and transmission costs | Operating Segments | Segment United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 57,000,000 | 89,000,000 | ||
Natural gas revenues | Gathering, processing, and transmission costs | Operating Segments | Egypt | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 77,000,000 | 93,000,000 | ||
Natural gas revenues | Gathering, processing, and transmission costs | Operating Segments | North Sea | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 42,000,000 | 60,000,000 | ||
Natural gas revenues | Gathering, processing, and transmission costs | Intersegment Eliminations & Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | ||
Natural gas liquids revenues | Gathering, processing, and transmission costs | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 140,000,000 | 130,000,000 | ||
Natural gas liquids revenues | Gathering, processing, and transmission costs | Operating Segments | Segment United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 131,000,000 | 120,000,000 | ||
Natural gas liquids revenues | Gathering, processing, and transmission costs | Operating Segments | Egypt | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | ||
Natural gas liquids revenues | Gathering, processing, and transmission costs | Operating Segments | North Sea | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 9,000,000 | 10,000,000 | ||
Natural gas liquids revenues | Gathering, processing, and transmission costs | Intersegment Eliminations & Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 0 | $ 0 | ||
[1]For transactions with Kinetik prior to the Company’s sale of its remaining shares of Kinetik Class A Common Stock and the resignation of the Company’s designated director from the Kinetik board of directors, refer to Note 6—Equity Method Interests . |