Apache 10-K 26 Feb 10 2009 FY Annual report Financial data

Document and Company Informatio

Document and Company Information (USD $)
	12 Months Ended Dec. 31, 2009	Jan. 31, 2010	Jun. 30, 2009
Document and Company Information [Abstract]
Entity Registrant Name	APACHE CORP
Entity Central Index Key	0000006769
Document Type	10-K
Document Period End Date	2009-12-31
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$24,224,151,606
Entity Common Stock, Shares Outstanding		336,550,234

Statement of Consolidated Opera

Statement of Consolidated Operations (USD $)
In Thousands, except Per Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
REVENUES AND OTHER:
Oil and gas production revenues	$8,573,927	$12,327,839	$9,961,982
Other	40,899	61,911	37,770
Total revenues and other	8,614,826	12,389,750	9,999,752
Depreciation, depletion and amortization
Recurring	2,395,063	2,516,437	2,347,791
Additional	2,818,161	5,333,821	0
Asset retirement obligation accretion	104,815	101,348	96,438
Lease operating expenses	1,662,140	1,909,625	1,652,855
Gathering and transportation	142,699	156,491	137,407
Taxes other than income	579,436	984,807	597,647
General and administrative	343,883	288,794	275,065
Financing costs, net	242,238	166,035	219,937
Total operating expenses	8,288,435	11,457,358	5,327,140
INCOME (LOSS) BEFORE INCOME TAXES	326,391	932,392	4,672,612
Current income tax provision	841,899	1,456,382	970,728
Deferred income tax provision (benefit)	(231,110)	(1,235,944)	889,526
NET INCOME (LOSS)	(284,398)	711,954	2,812,358
Preferred stock dividends	7,294	5,680	5,680
INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK	($291,692)	$706,274	$2,806,678
NET INCOME (LOSS) PER COMMON SHARE:
Basic	-0.87	2.11	8.45
Diluted	-0.87	2.09	8.39

Statement of Consolidated Cash

Statement of Consolidated Cash Flows (USD $)
In Thousands	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	($284,398)	$711,954	$2,812,358
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	5,213,224	7,850,258	2,347,791
Asset retirement obligation accretion	104,815	101,348	96,438
Provision for (benefit from) deferred income taxes	(231,110)	(1,235,944)	889,526
Other	182,611	(50,596)	48,967
Changes in operating assets and liabilities, net of effects of acquisitions:
Receivables	(186,802)	570,592	(261,962)
Inventories	(5,172)	(22,295)	39,787
Drilling advances	(142,610)	28,846	(30,531)
Deferred charges and other	148,113	(323,832)	12,368
Accounts payable	(180,336)	(70,979)	(38,923)
Accrued expenses	(330,485)	(456,635)	(169,087)
Deferred credits and noncurrent liabilities	(64,207)	(37,373)	(69,299)
NET CASH PROVIDED BY OPERATING ACTIVITIES	4,223,643	7,065,344	5,677,433
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas property	(3,325,710)	(5,143,603)	(4,301,044)
Additions to gathering, transmission and processing facilities	(305,389)	(679,405)	(480,936)
Acquisition of Anadarko properties	0	0	(1,004,593)
Acquisitions, other	(310,472)	(149,838)	(20,363)
Short-term investments	791,999	(791,999)	0
Restricted cash	13,880	(13,880)	0
Proceeds from sale of oil and gas properties	2,267	307,974	67,483
Other, net	(114,001)	(64,226)	(206,476)
NET CASH USED IN INVESTING ACTIVITIES	(3,247,426)	(6,534,977)	(5,945,929)
CASH FLOWS FROM FINANCING ACTIVITIES:
Commercial paper, credit facility and bank notes, net	248,169	(99,803)	(1,412,250)
Fixed-rate debt borrowings	0	796,315	1,992,290
Payments on fixed-rate notes	(100,000)	(353)	(173,000)
Dividends paid	(208,603)	(239,358)	(204,753)
Common stock activity	28,495	31,513	29,682
Redemption of preferred stock	(98,387)	0	0
Treasury stock activity, net	5,620	4,498	14,279
Cost of debt and equity transactions	(655)	(7,050)	(18,179)
Other	15,811	39,498	25,726
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	(109,550)	525,260	253,795
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	866,667	1,055,627	(14,701)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	1,181,450	125,823	140,524
CASH AND CASH EQUIVALENTS AT END OF YEAR	2,048,117	1,181,450	125,823
SUPPLEMENTARY CASH FLOW DATA:
Interest paid, net of capitalized interest	243,041	171,487	181,138
Income taxes paid, net of refunds	$686,411	$1,694,557	$797,589

Consolidated Balance Sheet

Consolidated Balance Sheet (USD $)
In Thousands	Dec. 31, 2009	Dec. 31, 2008
CURRENT ASSETS:
Cash and cash equivalents	$2,048,117	$1,181,450
Short-term investments	0	791,999
Receivables, net of allowance	1,545,699	1,356,979
Inventories	533,251	498,567
Drilling Advances	230,733	93,377
Prepaid taxes	146,653	303,203
Prepaid assets and other	81,396	225,399
Total current assets	4,585,849	4,450,974
Oil and gas, on the basis of full-cost accounting:
Proved properties	44,267,037	40,639,281
Unproved properties and properties under development, not being amortized	1,479,008	1,300,347
Gathering, transmission and processing facilities	3,189,177	2,883,789
Other	492,511	452,989
Total property and equipment, gross	49,427,733	45,276,406
Less: Accumulated depreciation, depletion and amortization	(26,527,118)	(21,317,889)
Total property and equipment, net	22,900,615	23,958,517
OTHER ASSETS:
Restricted cash	0	13,880
Goodwill, net	189,252	189,252
Deferred charges and other	510,027	573,862
Total assets	28,185,743	29,186,485
CURRENT LIABILITIES:
Accounts payable	396,564	548,945
Accrued operating expense	90,151	168,531
Accrued exploration and development	923,084	964,859
Accrued compensation and benefits	151,408	111,907
Current debt	117,326	112,598
Asset retirement obligations	146,654	339,155
Derivative instruments	128,219	0
Other	439,152	274,440
Total current liabilities	2,392,558	2,520,435
LONG-TERM DEBT	4,950,390	4,808,975
DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES:
Income taxes	2,764,901	3,166,657
Asset retirement obligation	1,637,357	1,555,529
Other	661,916	626,168
Total deferred credits and other noncurrent liabilities	5,064,174	5,348,354
SHAREHOLDERS' EQUITY:
Preferred stock, no par value, 5,000,000 shares authorized Series B, 5.68% Cumulative, $100 million aggregate liquidation value, 100,000 shares redeemed in 2009, 100,000 issued and outstanding in 2008	0	98,387
Common stock, $0.625 par, 430,000,000 shares authorized, 344,076,790 and 342,754,114 shares issued, respectively	215,048	214,221
Paid-in capital	4,634,326	4,472,826
Retained earnings	11,436,580	11,929,827
Treasury stock, at cost, 7,639,818 and 8,044,050 shares, respectively	(216,831)	(228,304)
Accumulated other comprehensive income (loss)	(290,502)	21,764
Total shareholders' equity	15,778,621	16,508,721
Total liabilities and shareholders' equity	$28,185,743	$29,186,485

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical) (USD $)
	Dec. 31, 2009	Dec. 31, 2008
SHAREHOLDERS' EQUITY:
Preferred stock, par value	0	0
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares redeemed	100,000	0
Preferred stock, shares issued	0	100,000
Preferred stock, shares outstanding	0	100,000
Cumulative preferred stock-Series B, liquidation value	$100,000,000	$100,000,000
Series B, Cumulative Preferred Stock Interest Rate	0.0568	0.0568
Common stock, par value	0.625	0.625
Common stock, shares authorized	430,000,000	430,000,000
Common stock, shares issued	344,076,790	342,754,114
Treasury stock, shares	7,639,818	8,044,050

Statement of Consolidated Share

Statement of Consolidated Shareholders Equity (USD $)
In Thousands	Preferred Stock	Common Stock	Paid-In Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Total
Beginning Balance at Dec. 31, 2006	$98,387	$212,365	$4,269,795	$8,898,577	($256,739)	($31,332)	$13,191,053
Comprehensive income (loss):
Net income (loss)				2,812,358			2,812,358
Post retirement, net of income tax benefit (expense) of $4,754, $7,495, $(4,896) for 2009, 2008, 2007 respectively						6,333	6,333
Commodity hedges, net of income tax benefit (expense) of $171,310, $(301,157) and $272,865 for 2009, 2008 and 2007 respectively						(495,212)	(495,212)
Cash dividends:
Preferred				(5,680)			(5,680)
Common $.60, $.70 and $.60 per share for 2009, 2008 and 2007 respectively				(199,401)			(199,401)
Common shares issued		961	48,144				49,105
Treasury shares issued, net			1,834		18,475		20,309
Compensation expense			48,816				48,816
Tax reserves				(48,502)			(48,502)
Other			(1,440)	240			(1,200)
Ending Balance at Dec. 31, 2007	98,387	213,326	4,367,149	11,457,592	(238,264)	(520,211)	15,377,979
Comprehensive income (loss):
Net income (loss)				711,954			711,954
Post retirement, net of income tax benefit (expense) of $4,754, $7,495, $(4,896) for 2009, 2008, 2007 respectively						(7,530)	(7,530)
Commodity hedges, net of income tax benefit (expense) of $171,310, $(301,157) and $272,865 for 2009, 2008 and 2007 respectively						549,505	549,505
Cash dividends:
Preferred				(5,680)			(5,680)
Common $.60, $.70 and $.60 per share for 2009, 2008 and 2007 respectively				(233,952)			(233,952)
Common shares issued		895	36,722				37,617
Treasury shares issued, net			(442)		9,960		9,518
Compensation expense			93,762				93,762
Tax reserves			(23,663)				(23,663)
Other			(702)	(87)			(789)
Ending Balance at Dec. 31, 2008	98,387	214,221	4,472,826	11,929,827	(228,304)	21,764	16,508,721
Comprehensive income (loss):
Net income (loss)				(284,398)			(284,398)
Post retirement, net of income tax benefit (expense) of $4,754, $7,495, $(4,896) for 2009, 2008, 2007 respectively						(4,533)	(4,533)
Commodity hedges, net of income tax benefit (expense) of $171,310, $(301,157) and $272,865 for 2009, 2008 and 2007 respectively						(307,733)	(307,733)
Cash dividends:
Preferred				(7,294)			(7,294)
Common $.60, $.70 and $.60 per share for 2009, 2008 and 2007 respectively				(201,555)			(201,555)
Preferred stock redemption	(98,387)						(98,387)
Common shares issued		827	14,916				15,743
Treasury shares issued, net			(5,262)		11,473		6,211
Compensation expense			128,523				128,523
Tax reserves			23,695				23,695
Other			(372)				(372)
Ending Balance at Dec. 31, 2009	$0	$215,048	$4,634,326	$11,436,580	($216,831)	($290,502)	$15,778,621

1_Statement of Consolidated Sha

Statement of Consolidated Shareholders Equity (Parenthetical) (USD $)
In Thousands, except Per Share data	Comprehensive Income/(Loss)	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Comprehensive income (loss):
Income tax benefit (expense) to Post retirement	($4,896)		($4,896)	($4,896)
Income tax benefit (expense) to commodity hedges	272,865		272,865	272,865
Cash dividends:
Common stock, dividends, per Share		0.6		0.6
Comprehensive income (loss):
Income tax benefit (expense) to Post retirement	7,495		7,495	7,495
Income tax benefit (expense) to commodity hedges	(301,157)		(301,157)	(301,157)
Cash dividends:
Common stock, dividends, per Share		0.7		0.7
Comprehensive income (loss):
Income tax benefit (expense) to Post retirement	4,754		4,754	4,754
Income tax benefit (expense) to commodity hedges	$171,310		$171,310	$171,310
Cash dividends:
Common stock, dividends, per Share		0.6		0.6

Nature of Operations

Nature of Operations
	12 Months Ended Dec. 31, 2009 USD / shares
Nature of Operations [Abstract]
NATURE OF OPERATIONS	General Accounting Description Nature of Operations Apache Corporation (Apache or the Company) is an independent energy company that explores for, develops and produces natural gas, crude oil and natural gas liquids. The Companys North American exploration and production activities are divided into two United States (U.S.) operating regions (Central and Gulf Coast) and a Canadian region. Approximately 62percent (unaudited) of the Companys proved reserves are located in North America. Outside of North America, Apache has exploration and production interests in Egypt, offshore Western Australia, offshore the United Kingdom in the North Sea (North Sea) and Argentina. Apache also has exploration interests on the Chilean side of the island of Tierra del Fuego.

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Summary of Significant Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting policies used by Apache and its subsidiaries reflect industry practices and conform to accounting principles generally accepted in the U.S.(GAAP). Certain reclassifications have been made to prior periods to conform to the current-year presentation. Significant policies are discussed below. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Apache and its subsidiaries after elimination of intercompany balances and transactions. The Company consolidates all investments in which the Company, either through direct or indirect ownership, has more than a 50-percent voting interest. In addition, Apache consolidates all variable interest entities where it is the primary beneficiary. The Companys interest in oil and gas exploration and production ventures and partnerships are proportionately consolidated. Use of Estimates Preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent 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. Apache evaluates its estimates and assumptions on a regular basis. Actual results may differ from these estimates and assumptions used in preparation of its financial statements and changes in these estimates are recorded when known. Significant estimates with regard to these financial statements include the estimate of proved oil and gas reserves and related present value estimates of future net cash flows therefrom (see Note13 Supplemental Oil and Gas Disclosures), asset retirement obligations and income taxes. Cash Equivalents The Company considers all highly liquid short-term investments with a maturity of three months or less at time of purchase to be cash equivalents. These investments are carried at cost, which approximates fair value. As of December31, 2009 and 2008, Apache had $2.0billion and $1.2billion, respectively, of cash and cash equivalents. Marketable Securities The Company accounts for investments in debt and equity securities in accordance with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC, also known collectively as the Codification) Topic 320, Investments Debt and Equity Securities. Investments in debt securities classified as held to maturity are recorded at cost. As of December31, 2009, Apache held no marketable securities. At December31, 2008, the Company had $792million invested in obligations of the U.S.government with original maturities greater than three months but less than a year. Allowance for Doubtful Accounts The Company routinely assesses the collect

Significant Acquisitions and Di

Significant Acquisitions and Divestitures
	12 Months Ended Dec. 31, 2009 USD / shares
Significant Acquisitions and Divestitures [Abstract]
SIGNIFICANT ACQUISITIONS AND DIVESTITURES	2. SIGNIFICANT ACQUISITIONS AND DIVESTITURES 2009 Activity During the second quarter of 2009 Apache announced the acquisition of nine Permian Basin oil and gas fields with then current net production of 3,500barrels of oil equivalent per day from Marathon Oil Corporation for $187.4million, subject to normal post-closing adjustments. Estimated reserves acquired in connection with the acquisition totaled 19.5MMboe (unaudited). These long-lived fields fit well with Apaches existing properties in the Permian Basin, particularly in Lea County, N.M., and will provide the Company many years of drilling opportunities. The effective date of the transaction was January1, 2009. 2008 Activity There was no major acquisition activity during 2008; however, the Company completed several divestiture transactions. On January29, 2008, the Company completed the sale of its interest in Ship Shoal blocks349 and 359 on the outer continental shelf of the Gulf of Mexico to WT Offshore, Inc. for $116million. On January31, 2008, the Company completed the sale of non-strategic oil and gas properties in the Permian Basin of West Texas to Vanguard Permian, LLC for $78million. On April2, 2008, the Company completed the sale of non-strategic Canadian properties to Central Global Resources for C$112million. These divestitures were subject to normal post-closing adjustments. 2007 Activity U.S.Gulf Coast Farm-inOn September6, 2007, Apache entered into an Exploration Agreement with various EnerVest Partnerships (EVP) for an initial term of four years whereby Apache committed to spend $30million in qualified expenditures to explore, drill, produce and market hydrocarbons from specified undeveloped formations across 400,000net acres in Central and East Texas. As of December31, 2008, Apache had fulfilled the $30million commitment. U.S.Permian BasinOn March29, 2007, the Company closed its acquisition of controlling interest in 28 oil and gas fields in the Permian Basin of West Texas from Anadarko for $1billion. Apache estimates that these fields had proved reserves of 57million barrels (MMbbls) (unaudited) of liquid hydrocarbons and 78billion cubic feet (Bcf) (unaudited) of natural gas as of year-end 2006. The Company funded the acquisition with debt. Apache and Anadarko entered into a joint-venture arrangement to effect the transaction. The Company entered into cash flow hedges for a portion of the crude oil and natural gas production.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities
	12 Months Ended Dec. 31, 2009 USD / shares
Derivative Instruments and Hedging Activities [Abstract]
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	3. 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. Apaches first strategy is to maintain a balance in its commodities mix of oil and gas, and gas sold at New York Mercantile Exchange (NYMEX)-related prices versus gas sold under long-term contracts tied to oil prices. Management also believes it is prudent to manage the variability in cash flows on a portion of its crude oil and natural gas production. The Company utilizes various types of derivative financial instruments, including swaps and options, to manage fluctuations in cash flows resulting from changes in commodity prices. Derivative instruments entered into are designated as cash flow hedges. Counterparty Risk The use of derivative instruments exposes the Company to counterparty credit risk, or the risk that a counterparty will be unable to meet its commitments. Apaches commodity derivative instruments are with a diversified group of counterparties, primarily financial institutions. To reduce the concentration of exposure to any individual counterparty, Apache had positions with 16 counterparties as of December31, 2009. All of these counterparties were at year-end rated A or higher by Standard Poors and A2 or higher by Moodys. The Company monitors counterparty creditworthiness on an ongoing basis; however, it cannot predict sudden changes in counterparties creditworthiness. In addition, even if such changes are not sudden, the Company may be limited in its ability to mitigate an increase in counterparty credit risk. Should one of these counterparties not perform, Apache may not realize the benefit of some of its derivative instruments under lower commodity prices. The Company executes commodity derivative transactions under master agreements that have netting provisions that provide for offsetting payables against receivables. In general, if a party to a derivative transaction incurs a material deterioration in its credit ratings, as defined in the applicable agreement, the other party will have the right to demand the posting of collateral, demand a transfer or terminate the arrangement. Commodity Derivative Instruments As of December31, 2009, Apache had the following open crude oil derivative positions: Fixed-Price Swaps Collars Weighted Weighted Weighted Average Average Average Production Period Mbbls Fixed Price(1) Mbbls Floor Price(1) Ceiling Price(1) 2010 2,383 $ 68.71 10,396 $ 65.01 $ 80.84 2011 3,650 70.12 6,202 66.24 87.04 2012 3,292 70.99 2,554 66.07 89.13 2013 1,451 72.01 2014 76 74.50 (1) Crude oil prices represent a weighted average of several contracts entered into on a per

Asset Retirement Obligation

Asset Retirement Obligation
	12 Months Ended Dec. 31, 2009 USD / shares
Asset Retirement Obligation [Abstract]
ASSET RETIREMENT OBLIGATION	4. ASSET RETIREMENT OBLIGATION The following table describes changes to the Companys ARO liability for the years ended December31, 2009 and 2008: 2009 2008 (In thousands) Asset retirement obligation at beginning of year $ 1,894,684 $ 1,866,686 Liabilities incurred 218,423 343,210 Liabilities settled (508,426 ) (587,246 ) Accretion expense 104,815 101,348 Revisions in estimated liabilities 74,515 170,686 Asset retirement obligation at end of year 1,784,011 1,894,684 Less current portion 146,654 339,155 Asset retirement obligation, long-term $ 1,637,357 $ 1,555,529 The ARO liability reflects the estimated present value of the amount of dismantlement, removal, site reclamation and similar activities associated with Apaches oil and gas properties. The Company utilizes current retirement costs to estimate the expected cash outflows for retirement obligations. The Company estimates the ultimate productive life of the properties, a risk-adjusted discount rate and an inflation factor in order to determine the current present value of this obligation. To the extent future revisions to these assumptions impact the present value of the existing ARO liability, a corresponding adjustment is made to the oil and gas property balance. Liabilities settled primarily relate to individual properties plugged and abandoned during the period. Most of the activity in both periods was in the Gulf of Mexico, a portion of which relates to the continued abandonment activity on platforms toppled in 2005 during Hurricanes Katrina and Rita and in 2008 during Hurricane Ike.

Debt

Debt
	12 Months Ended Dec. 31, 2009 USD / shares
Debt [Abstract]
DEBT	5. DEBT December31, 2009 2008 (In millions) U.S.: Money market lines of credit $ $ Unsecured committed bank credit facilities Commercial paper 6.25%notes due 2012 400 400 5.25%notes due 2013 500 500 6.0%notes due 2013 400 400 5.625%notes due 2017 500 500 6.9%notes due 2018 400 400 7.0%notes due 2018 150 150 7.625%notes due 2019 150 150 7.7%notes due 2026 100 100 7.95%notes due 2026 180 180 6.0%notes due 2037 1,000 1,000 7.375%debentures due 2047 150 150 7.625%debentures due 2096 150 150 4,080 4,080 Subsidiary and other obligations: Argentina overdraft lines of credit 7 13 Apache PVG secured facility 350 100 Notes due in 2016 and 2017 1 1 Apache Finance Australia 7.0%notes redeemed in 2009 100 Apache Finance Canada 4.375%notes due 2015 350 350 Apache Finance Canada 7.75%notes due 2029 300 300 1,008 864 Debt at face value 5,088 4,944 Unamortized discount (21 ) (22 ) Total debt 5,067 4,922 Current maturities (117 ) (113 ) Long-term debt $ 4,950 $ 4,809 Debt maturities as of December31, 2009, excluding discounts, are as follows: (In millions) 2010 $ 117 2011 100 2012 480 2013 945 2014 15 Thereafter 3,431 Total Debt, excluding discounts $ 5,088 Overview All of the Companys debt, excluding the Apache PVG secured facility, is senior unsecured debt and has equal priority with respect to the payment of both principal and interest. The indentures for the notes described above place certain restrictions on the Company, including limits on Apaches ability to incur debt secured by certain liens and its ability to enter into certain sale and leaseback transactions. Upon certain changes in control, all of these debt instruments would be subject to mandatory repurchase, at the option of the holders. None of the indentures for the notes contain pre-payment obligations in the event of a decline in credit ratings. Money Market and Overdraft Lines of Credit The Company has certain uncommitted money market and overdraft lines of credit that are used from time to time for working capital purposes. As of December31, 2009 and 2008, $7.3million and $12.6mi

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Income Taxes [Abstract]
INCOME TAXES	6. INCOME TAXES Income before income taxes is composed of the following: For the Year Ended December31, 2009 2008 2007 (In thousands) United States $ (566,519 ) $ (349,405 ) $ 1,728,441 Foreign 892,910 1,281,797 2,944,171 Total $ 326,391 $ 932,392 $ 4,672,612 The total provision for income taxes consists of the following: For the Year Ended December31, 2009 2008 2007 (In thousands) Current taxes: Federal $ (130,454 ) $ 127,801 $ 133,140 State (1,964 ) 1,613 5,162 Foreign 974,317 1,326,968 832,426 841,899 1,456,382 970,728 Deferred taxes: Federal (80,690 ) (413,731 ) 435,276 State (23,603 ) 3,014 (1,073 ) Foreign (126,817 ) (825,227 ) 455,323 (231,110 ) (1,235,944 ) 889,526 Total $ 610,789 $ 220,438 $ 1,860,254 A reconciliation of the tax on the Companys income before income taxes and total tax expense is shown below: For the Year Ended December31, 2009 2008 2007 (In thousands) Income tax expense at U.S. statutory rate $ 114,237 $ 326,337 $ 1,635,414 State income tax, less federal benefit (16,618 ) 3,008 2,658 Taxes related to foreign operations 309,960 429,782 127,614 Tax credits (38,949 ) Canadian tax rate reduction (145,398 ) Current and deferred taxes related to currency fluctuations 194,967 (399,973 ) 227,671 Domestic manufacturing deduction (7,312 ) (6,656 ) Net change in tax contingencies 35,744 (139,590 ) Increase in valuation allowance 20,034 2,924 12,144 All other, net (8,586 ) 5,262 6,807 $ 610,789 $ 220,438 $ 1,860,254 The net deferred tax liability consists of the following: December31, 2009 2008 (In thousands) Deferred tax assets: Deferred income $ (20,408 ) $ (18,327 ) State net operating loss carryforwards (34,516 ) (14,420 ) Foreign n

Capital Stock

Capital Stock
	12 Months Ended Dec. 31, 2009 USD / shares
Capital Stock [Abstract]
CAPITAL STOCK	7. CAPITAL STOCK Common Stock Outstanding 2009 2008 2007 Balance, beginning of year 334,710,064 332,927,143 330,737,425 Shares issued for stock-based compensation plans: Treasury shares issued 404,232 350,895 651,022 Common shares issued 1,322,676 1,432,026 1,538,696 Balance, end of year 336,436,972 334,710,064 332,927,143 Net Income (Loss) Per Common Share A reconciliation of the components of basic and diluted net income (loss) per common share for the years ended December31, 2009, 2008 and 2007 is presented in the table below. The loss for 2009 reflects an after-tax write-down for full-cost accounting of $1.98billion. Income for 2008 reflects an after-tax write-down for full-cost accounting of $3.6billion. 2009 2008 2007 Loss Shares Per Share Income Shares Per Share Income Shares Per Share (In thousands, except per share amounts) Basic: Income (loss) attributable to common stock $ (291,692 ) 335,852 $ (.87 ) $ 706,274 334,351 $ 2.11 $ 2,806,678 332,192 $ 8.45 Effect of Dilutive Securities: Stock options and others $ $ $ 2,840 $ (.02 ) $ 2,404 $ (.06 ) Diluted: Income (loss) attributable to common stock, including assumed conversions $ (291,692 ) 335,852 $ (.87 ) $ 706,274 337,191 $ 2.09 $ 2,806,678 334,596 $ 8.39 The diluted earnings per share calculation excludes options and restricted shares that were anti-dilutive totaling 4.2million, 673,801 and 482,994 for the years ended December31, 2009, 2008 and 2007, respectively. Common Stock Dividend The Company paid common stock dividends of $.60, $.70 and $.60 per share in 2009, 2008 and 2007, respectively. The higher common stock dividends for 2008 were attributable to a special cash dividend of 10 cents per common share paid on March18, 2008. Stock Compensation Plans The Company has several stock-based compensation plans, which include stock options, stock appreciation rights, restricted stock, and performance-based share appreciation plans. In May 2007, the Company

Commitments and Contingencies

Commitments and Contingencies
	12 Months Ended Dec. 31, 2009 USD / shares
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	8. COMMITMENTS AND CONTINGENCIES Apache is party to various legal actions arising in the ordinary course of business, including litigation and governmental and regulatory controls. The Company has an accrued liability of approximately $20million for all legal contingencies that are deemed to be probable of occurring and can be reasonably estimated. Apaches 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 managements estimate, none of the actions are believed by management to involve future amounts that would be material to Apaches financial position or results of operations after consideration of recorded accruals. It is managements opinion that the loss for any other litigation matters and claims that are reasonably possible to occur will not have a material adverse affect on the Companys financial position or results of operations. Legal Matters Argentine Environmental Claims In connection with the acquisition from Pioneer in 2006, the Company acquired a subsidiary of Pioneer in Argentina (PNRA) that is involved in various administrative proceedings with environmental authorities in the Neuqun Province relating to permits for and discharges from operations in that province. In addition, PNRA was named in a suit initiated against oil companies operating in the Neuqun basin entitled Asociacin de Superficiarios de la Patagonia v YPF S.A., et. al., originally filed on August21, 2003, in the Argentine National Supreme Court of Justice. The plaintiffs, a private group of landowners, have also named the national government and several provinces as third parties. The lawsuit alleges injury to the environment generally by the oil and gas industry. The plaintiffs principally seek from all defendants, jointly, (i)the remediation of contaminated sites, of the superficial and underground waters, and of soil that allegedly was degraded as a result of deforestation, (ii)if the remediation is not possible, payment of an indemnification for the material and moral damages claimed from defendants operating in the Neuqun basin, of which PNRA is a small portion, (iii)adoption of all the necessary measures to prevent future environmental damages, and (iv)the creation of a private restoration fund to provide coverage for remediation of potential future environmental damages. Much of the alleged damage relates to operations by the Argentine state oil company, which conducted oil and gas operations throughout Argentina prior to its privatization, which began in 1990. While the plaintiffs will seek to make all oil and gas companies operating in the Neuqun basin jointly liable for each others actions, PNRA will defend on an individual basis and attempt to require the plaintiffs to delineate damages by company. PNRA intends to defend itself vigorously in the case. It is not certain exactly how or what the court will do in this matter as it is the first of its kind. While it is possible PNRA may incur liabilities related to the environmental claims, no reasonable prediction can be made as PNRAs exposure related

Subsequent Events

Subsequent Events
	12 Months Ended Dec. 31, 2009 USD / shares
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	9. SUBSEQUENT EVENTS Subsequent events have been evaluated for recognition and disclosure through the date these financial statements were filed with the SEC. Kitimat LNG Terminal On January13, 2010, Apache announced that its Apache Canada Ltd. subsidiary has agreed to acquire 51percent of Kitimat LNG Inc.s proposed LNG export terminal in British Columbia. Apache also reserved 51percent of gas throughput capacity in the terminal. The proposed Kitimat project, located at Bish Cove near the Port of Kitimat about 405miles north of Vancouver, has planned capacity of about 700MMcf/d, or five million metric tons of LNG per year. Preliminary gross construction cost estimates of C$3billion will be refined at the conclusion of Front-End Engineering and Design. The project is projected to employ an estimated 1,500people during construction and 100 on a permanent basis. Kitimat is designed to be linked to the pipeline system servicing Western Canadas natural gas producing regions via the proposed Pacific Trail Pipelines, a C$1.1billion project. In association with our acquisition of interest in the Kitimat project, we also acquired a 25.5-percent interest in the proposed pipeline and 350 MMcf/d of capacity rights.

Fair Value Measurements

Fair Value Measurements
	12 Months Ended Dec. 31, 2009 USD / shares
Fair Value Measurements [Abstract]
FAIR VALUE MEASUREMENTS	10. FAIR VALUE MEASUREMENTS ASC 820-10-35 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 Level1 inputs, which consist of unadjusted quoted prices for identical instruments in active markets. Level2 inputs consist of quoted prices for similar instruments. Level3 valuations are derived from inputs that are significant and unobservable, and these valuations have the lowest priority. Assets and Liabilities Measured at Fair Value on a Recurring Basis Certain assets and liabilities are reported at fair value on a recurring basis in Apaches Consolidated Balance Sheet. The following methods and assumptions were used to estimate the fair values: Cash, Cash Equivalents, Short-Term Investments, Accounts Receivable and Accounts Payable The carrying amounts approximate fair value due to the short-term nature or maturity of the instruments. Commodity Derivative Instruments Apaches commodity derivative instruments consist of variable-to-fixed price commodity swaps and options. The Company estimates the fair values of derivative instruments using published commodity futures price strips for the underlying commodities as of the date of the estimate. The fair values of the Companys derivative instruments are not actively quoted in the open market and are valued using forward commodity price curves provided by a reputable third-party. These valuations are Level2 inputs. See Note3 Derivative Instruments and Hedging Activities for further information. The following table presents the Companys material assets and liabilities measured at fair value on a recurring basis for each hierarchy level: Fair Value Measurements Using Quoted Price Significant in Active Significant Unobservable Markets Other Inputs Inputs Total Fair Carrying (Level 1) (Level 2) (Level 3) Value Netting(1) Amount (In millions) December31, 2009 Assets: Commodity Derivative Instruments $ $ 75 $ $ 75 $ (11 ) $ 64 Liabilities: Commodity Derivative Instruments 341 341 (11 ) 330 December31, 2008 Assets: Commodity Derivative Instruments $ $ 225 $ $ 225 $ (6 ) $ 219 Liabilities: Commodity Derivative Instruments 13 13 (6 ) 7

Major Customers

Major Customers
	12 Months Ended Dec. 31, 2009 USD / shares
Major Customers [Abstract]
MAJOR CUSTOMERS	11. MAJOR CUSTOMERS In 2009, 2008 and 2007, purchases by Shell accounted for 18percent, 17percent and 12percent, respectively, of the Companys worldwide oil and gas production revenues. Concentration of Credit Risk While Apache experienced a decline in the timeliness of receipts from EGPC for oil and gas sales in recent years, the Company saw significant improvement in collections throughout 2009.

Business Segment Information

Business Segment Information
	12 Months Ended Dec. 31, 2009 USD / shares
Business Segment Information [Abstract]
BUSINESS SEGMENT INFORMATION	12. BUSINESS SEGMENT INFORMATION Apache is engaged in a single line of business. Both domestically and internationally, the Company explores for, develops and produces natural gas, crude oil and natural gas liquids. At December31, 2009, the Company has production in six countries: the United States (Gulf Coast and Central Regions), Canada, Egypt, Australia, offshore the U.K. in the North Sea and Argentina. Apache also has exploration interests on the Chilean side of the island of Tierra del Fuego. Financial information by country is presented below: Other United States Canada Egypt Australia North Sea Argentina International Total (In thousands) 2009 Oil and gas production revenues $ 3,049,699 $ 877,224 $ 2,553,037 $ 363,427 $ 1,368,797 $ 361,743 $ $ 8,573,927 Operating Expenses: Depreciation, depletion and amortization Recurring 946,922 256,758 578,501 203,722 260,020 149,140 2,395,063 Additional 1,222,394 1,595,767 2,818,161 Asset retirement obligation accretion 63,055 18,761 5,859 14,449 2,691 104,815 Lease operating expenses 762,227 269,562 264,229 100,856 157,493 107,773 1,662,140 Gathering and transportation 35,011 53,112 23,471 26,232 4,873 142,699 Taxes other than income 120,903 43,152 8,406 9,976 382,828 14,171 579,436 Operating Income (Loss)(1) $ (100,813 ) $ (1,359,888 ) $ 1,678,430 $ 43,014 $ 527,775 $ 83,095 $ 871,613 Other Income (Expense): Other 40,899 General and administrative (343,883 ) Financing costs, net (242,238 ) Income Before Income Taxes

Supplemental Oil And Gas Disclo

Supplemental Oil And Gas Disclosures (Unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Supplemental Oil And Gas Disclosures (Unaudited) [Abstract]
SUPPLEMENTAL OIL AND GAS DISCLOSURES (Unaudited)	13. SUPPLEMENTAL OIL AND GAS DISCLOSURES (Unaudited) Oil and Gas Operations The following table sets forth revenue and direct cost information relating to the Companys oil and gas exploration and production activities. Apache has no long-term agreements to purchase oil or gas production from foreign governments or authorities. Other United States Canada Egypt Australia North Sea Argentina International Total (In thousands) 2009 Oil and gas production revenues $ 3,049,699 $ 877,224 $ 2,553,037 $ 363,427 $ 1,368,797 $ 361,743 $ $ 8,573,927 Operating cost: Depreciation, depletion and amortization Recurring(1) 914,795 250,253 578,246 201,580 255,539 147,352 2,347,765 Additional 1,222,394 1,595,767 2,818,161 Asset retirement obligation accretion 63,055 18,761 5,859 14,449 2,691 104,815 Lease operating expenses 762,227 269,562 264,229 100,856 157,493 107,773 1,662,140 Gathering and transportation 35,011 53,112 23,471 26,232 4,873 142,699 Production taxes(2) 106,792 35,589 9,976 382,828 7,420 542,605 Income tax (19,374 ) (335,513 ) 809,804 13,547 266,128 32,072 766,664 3,084,900 1,887,531 1,675,750 331,818 1,102,669 302,181 8,384,849 Results of operations $ (35,201 ) $ (1,010,307 ) $ 877,287 $ 31,609 $ 266,128 $ 59,562 $ $ 189,078 Amortization rate per boe $ 12.10 $ 7.58 $ 8.86 $ 12.61 $ 11.40 $ 8.62 $ $ 10.34 2008 Oil and

Supplemental Quarterly Financia

Supplemental Quarterly Financial Data (Unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Supplemental Quarterly Financial Data (Unaudited) [Abstract]
SUPPLEMENTAL QUARTERLY FINANCIAL DATA (Unaudited)	14. SUPPLEMENTAL QUARTERLY FINANCIAL DATA (Unaudited) First Second Third Fourth Total (In thousands, except per share amounts) 2009 Revenues $ 1,633,825 $ 2,093,378 $ 2,332,431 $ 2,555,192 $ 8,614,826 Expenses, net 3,390,765 1,648,658 1,890,415 1,969,386 8,899,224 Net income $ (1,756,940 ) $ 444,720 $ 442,016 $ 585,806 $ (284,398 ) Income attributable to common stock $ (1,758,360 ) $ 443,300 $ 440,596 $ 582,772 $ (291,692 ) Net income per common share(1): Basic $ (5.25 ) $ 1.32 $ 1.31 $ 1.73 $ (.87 ) Diluted $ (5.25 ) $ 1.31 $ 1.30 $ 1.72 $ (.87 ) 2008 Revenues $ 3,187,741 $ 3,900,191 $ 3,364,884 $ 1,936,934 $ 12,389,750 Expenses, net 2,166,228 2,454,962 2,174,059 4,882,547 11,677,796 Net income $ 1,021,513 $ 1,445,229 $ 1,190,825 $ (2,945,613 ) $ 711,954 Income attributable to common stock $ 1,020,093 $ 1,443,809 $ 1,189,405 $ (2,947,033 ) $ 706,274 Net income per common share(1): Basic $ 3.06 $ 4.32 $ 3.55 $ (8.80 ) $ 2.11 Diluted $ 3.03 $ 4.28 $ 3.52 $ (8.80 ) $ 2.09 (1) The sum of the individual quarterly net income per common share amounts may not agree with year-to-date net income per common share as each quarterly computation is based on the weighted-average number of common shares outstanding during that period. Potentially dilutive securities were included in the computation of diluted net income per common share for each quarter in which the Company reported net income.

Supplemental Guarantor Informat

Supplemental Guarantor Information
	12 Months Ended Dec. 31, 2009 USD / shares
Supplemental Guarantor Information [Abstract]
SUPPLEMENTAL GUARANTOR INFORMATION	15. SUPPLEMENTAL GUARANTOR INFORMATION Rule3-10 of SEC RegulationS-X (Rule3-10) generally requires filing of financial statements by every issuer of a registered security. Issuers with no independent operations qualify as finance subsidiaries and are exempt from the reporting requirements. Apache Finance Australia and Apache Finance Canada qualified as finance subsidiaries until Apache, during 2001, contributed stock of its Australian and Canadian operating subsidiaries to Apache Finance Australia and Apache Finance Canada, respectively. Rule3-10 also allows condensed consolidating financial statements in a footnote of the parent company financial statements as an alternative to filing separate financial statements, if the publicly-traded notes are fully and unconditionally guaranteed by the parent company. Each of the companies presented in the condensed consolidating financial statements is wholly owned and has been consolidated in Apache Corporations consolidated financial statements for all periods presented. As such, the condensed consolidating financial statements should be read in conjunction with the financial statements of Apache Corporation and subsidiaries and notes thereto of which this note is an integral part. Apache Finance Australia Apache Finance Australia issued approximately $270million of publicly-traded notes that were fully and unconditionally guaranteed by Apache and, beginning in 2001, also by Apache North America, Inc. In 2007, $170million of these notes matured and were repaid. The remaining $100million of publicly-traded notes matured on March15, 2009, and were repaid using existing cash balances. Apache Finance Canada Apache Finance Canada issued approximately $300million of publicly-traded notes due in 2029 and an additional $350million of publicly-traded notes due in 2015 that are fully and unconditionally guaranteed by Apache. CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS For the Year Ended December31, 2009 All Other Subsidiaries Apache Apache of Apache Reclassifications Corporation Finance Canada Corporation Eliminations Consolidated (In thousands) REVENUES AND OTHER: Oil and gas production revenues $ 2,769,642 $ $ 5,804,285 $ $ 8,573,927 Equity in net income (loss) of affiliates 235,554 (448,596 ) 167,804 45,238 Other (3,009 ) 58,848 (10,831 ) (4,109 ) 40,899 3,002,187 (389,748 ) 5,961,258 41,129 8,614,826 OPERATING EXPENSES: Depreciation, depletion and amortization 2,096,782 3,116,442