Apache 10-Q 7 May 10 2010 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information (USD $)
	3 Months Ended Mar. 31, 2010	Apr. 30, 2010	Jun. 30, 2009
Document and Entity Information [Abstract]
Entity Registrant Name	APACHE CORP
Entity Central Index Key	0000006769
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1
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		337,268,303

Statement of Consolidated Opera

Statement of Consolidated Operations (Unaudited) (USD $)
In Thousands, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
REVENUES AND OTHER:
Oil and gas production revenues	$2,693,625	$1,603,614
Other	(20,374)	30,211
Total revenues and other	2,673,251	1,633,825
Depreciation, depletion and amortization
Recurring	638,498	580,617
Additional		2,818,161
Asset retirement obligation accretion	24,002	26,738
Lease operating expenses	440,246	397,489
Gathering and transportation	40,365	33,339
Taxes other than income	176,938	87,339
General and administrative	87,150	85,046
Financing costs, net	59,267	58,587
Total operating expenses	1,466,466	4,087,316
INCOME (LOSS) BEFORE INCOME TAXES	1,206,785	(2,453,491)
Current income tax provision	342,974	2,494
Deferred income tax provision (benefit)	158,830	(699,045)
NET INCOME (LOSS)	704,981	(1,756,940)
Preferred stock dividends		1,420
INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK	$704,981	($1,758,360)
NET INCOME (LOSS) PER COMMON SHARE:
Basic	2.09	-5.25
Diluted	2.08	-5.25

Statement of Consolidated Cash

Statement of Consolidated Cash Flows (Unaudited) (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$704,981	($1,756,940)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	638,498	3,398,778
Asset retirement obligation accretion	24,002	26,738
Provision for (benefit from) deferred income taxes	158,830	(699,045)
Other	41,569	13,528
Changes in operating assets and liabilities:
Receivables	(268,852)	69,138
Inventories	(7,884)	6,522
Drilling advances	4,376	(16,095)
Deferred charges and other	3,392	44,394
Accounts payable	116,378	(161,200)
Accrued expenses	(274,086)	(341,717)
Deferred credits and noncurrent liabilities	12,225	(40,885)
NET CASH PROVIDED BY OPERATING ACTIVITIES	1,153,429	543,216
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas property	(958,759)	(946,352)
Additions to gas gathering, transmission and processing facilities	(115,302)	(112,839)
Restricted cash		13,880
Other	26,311	(36,480)
NET CASH USED IN INVESTING ACTIVITIES	(1,047,750)	(1,081,791)
CASH FLOWS FROM FINANCING ACTIVITIES:
Commercial paper, credit facility and bank notes, net	(3,327)	92,563
Payments on fixed-rate notes		(100,000)
Dividends paid	(50,481)	(51,633)
Common stock activity	11,170	245
Treasury stock activity, net	1,222	1,755
Cost of debt and equity transactions	(228)	(72)
Other	13,482	3,960
NET CASH USED IN FINANCING ACTIVITIES	(28,162)	(53,182)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	77,517	(591,757)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	2,048,117	1,181,450
CASH AND CASH EQUIVALENTS AT END OF PERIOD	2,125,634	589,693
SUPPLEMENTARY CASH FLOW DATA:
Interest paid, net of capitalized interest	74,186	77,468
Income taxes paid, net of refunds	$292,926	($19,615)

Consolidated Balance Sheet (Una

Consolidated Balance Sheet (Unaudited) (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	12 Months Ended Dec. 31, 2009
CURRENT ASSETS:
Cash and cash equivalents	$2,125,634	$2,048,117
Receivables, net of allowance	1,818,139	1,545,699
Inventories	497,749	533,251
Drilling advances	224,492	230,733
Prepaid taxes	130,119	146,653
Prepaid assets and other	242,122	81,396
Total current assets	5,038,255	4,585,849
Oil and gas, on the basis of full-cost accounting:
Proved properties	45,106,536	44,267,037
Unproved properties and properties under development, not being amortized	1,654,341	1,479,008
Gas gathering, transmission and processing facilities	3,304,479	3,189,177
Other	504,480	492,511
Total property and equipment, gross	50,569,836	49,427,733
Less: Accumulated depreciation, depletion and amortization	(27,164,979)	(26,527,118)
Total property and equipment, net	23,404,857	22,900,615
OTHER ASSETS:
Goodwill, net	189,252	189,252
Deferred charges and other	595,797	510,027
Total assets	29,228,161	28,185,743
CURRENT LIABILITIES:
Accounts payable	536,613	396,564
Accrued operating expense	86,990	90,151
Accrued exploration and development	929,233	923,084
Accrued compensation and benefits	92,062	151,408
Current debt	113,634	117,326
Asset retirement obligation	138,879	146,654
Other	343,315	567,371
Total current liabilities	2,240,726	2,392,558
LONG-TERM DEBT	4,950,755	4,950,390
DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES:
Income taxes	3,015,580	2,764,901
Asset retirement obligation	1,652,137	1,637,357
Other	610,427	661,916
Total deferred credits and other noncurrent liabilities	5,278,144	5,064,174
COMMITMENTS AND CONTINGENCIES (Note 9)
SHAREHOLDERS' EQUITY:
Common stock, $0.625 par, 430,000,000 shares authorized, 344,722,767 and 344,076,790 shares issued, respectively	215,452	215,048
Paid-in capital	4,708,010	4,634,326
Retained earnings	12,091,022	11,436,580
Treasury stock, at cost, 7,595,503 and 7,639,818 shares, respectively	(215,574)	(216,831)
Accumulated other comprehensive income (loss)	(40,374)	(290,502)
Total shareholders' equity	16,758,536	15,778,621
Total liabilities and shareholders' equity	$29,228,161	$28,185,743

1_Consolidated Balance Sheet (U

Consolidated Balance Sheet (Unaudited) (Parenthetical)
	Mar. 31, 2010	Dec. 31, 2009
SHAREHOLDERS' EQUITY:
Common stock, par value	0.625	0.625
Common stock, shares authorized	430,000,000	430,000,000
Common stock, shares issued	344,722,767	344,076,790
Treasury stock, shares	7,595,503	7,639,818

Statement of Consolidated Share

Statement of Consolidated Shareholders' Equity (Unaudited) (USD $)
In Thousands	Comprehensive Income (Loss)	Series B Preferred Stock	Common Stock	Paid-In Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Total
Beginning 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)	(1,756,940)				(1,756,940)			(1,756,940)
Commodity hedges, net of income tax expense of $5,073 and $110,536 for 2009 and 2010, respectively	15,251						15,251	15,251
Comprehensive income (loss)	(1,741,689)
Dividends:
Preferred					(1,420)			(1,420)
Common ($0.15 and $0.15 per share for 2009 and 2010, respectively)					(50,221)			(50,221)
Common shares issued			245	(836)				(591)
Treasury shares issued, net				(1,574)		2,374		800
Compensation expense				26,486				26,486
Other				(936)				(936)
Ending Balance at Mar. 31, 2009		98,387	214,466	4,495,966	10,121,246	(225,930)	37,015	14,741,150
Beginning Balance at Dec. 31, 2009		0	215,048	4,634,326	11,436,580	(216,831)	(290,502)	15,778,621
Comprehensive income (loss):
Net income (loss)	704,981				704,981			704,981
Commodity hedges, net of income tax expense of $5,073 and $110,536 for 2009 and 2010, respectively	250,128						250,128	250,128
Comprehensive income (loss)	955,109
Dividends:
Common ($0.15 and $0.15 per share for 2009 and 2010, respectively)					(50,539)			(50,539)
Common shares issued			404	11,519				11,923
Treasury shares issued, net				888		1,257		2,145
Compensation expense				61,127				61,127
Other				150				150
Ending Balance at Mar. 31, 2010		$0	$215,452	$4,708,010	$12,091,022	($215,574)	($40,374)	$16,758,536

2_Statement of Consolidated Sha

Statement of Consolidated Shareholders' Equity (Unaudited) (Parenthetical) (USD $)
In Thousands, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Comprehensive income (loss):
Income tax (benefit) expense to commodity hedges	$110,536	$5,073
Dividends:
Common stock, dividends, per share	0.15	0.15
Comprehensive Income (Loss)
Comprehensive income (loss):
Income tax (benefit) expense to commodity hedges	110,536	5,073
Retained Earnings
Dividends:
Common stock, dividends, per share	0.15	0.15
Accumulated Other Comprehensive Income (Loss)
Comprehensive income (loss):
Income tax (benefit) expense to commodity hedges	$110,536	$5,073

General Accounting Description

General Accounting Description
	3 Months Ended Mar. 31, 2010
General Accounting Description [Abstract]
GENERAL ACCOUNTING DESCRIPTION	0. General Accounting Description These financial statements have been prepared by Apache Corporation (Apache 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 statement of the results for the interim periods, on a basis consistent with the annual audited financial statements. 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 (U.S. GAAP) have been 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 Annual Report on Form 10-K for the fiscal year ended December31, 2009, which contains a summary of the Companys significant accounting policies and other disclosures. Additionally, the Companys financial statements for prior periods include reclassifications that were made to conform to the current-period presentation.

Acquisitions

Acquisitions
	3 Months Ended Mar. 31, 2010
Acquisitions [Abstract]
ACQUISITIONS	2. ACQUISITIONS In the first quarter of 2010, Apache acquired a 51-percent interest in Kitimat LNG Incs. proposed LNG export terminal (Kitimat) in British Columbia. The Company also reserved 51percent of throughput capacity in the terminal. Planned plant gross capacity will be approximately 700 million cubic feet of natural gas per day (MMcf/d), or five million metric tons of LNG per day. This project has the potential to access new markets in the Asia-Pacific region and allow Apache to monetize gas from its Canadian region, including its interest in the Horn River Basin in northeast British Columbia. A final investment decision is expected in 2011, with the first LNG shipments projected as early as 2014. Apache became the operator of the Kitimat LNG export project in the first quarter of 2010. Preliminary gross construction cost estimates, which will be refined upon completion of a front-end engineering and design (FEED)study, total C$3billion. Kitimat is designed to be linked to the pipeline system servicing Western Canadas natural gas producing regions via the proposed Pacific Trail Pipelines, a project with a current estimated gross cost of C$1.1billion. In association with the Companys acquisition of interest in the Kitimat project, Apache also acquired a 25.5-percent interest in the proposed pipeline and 350 MMcf/d of net capacity rights.

Subsequent Events

Subsequent Events
	3 Months Ended Mar. 31, 2010
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	3. SUBSEQUENT EVENTS Gulf of Mexico Shelf Acquisition On April12, 2010, Apache announced the acquisition of oil and gas assets on the Gulf of Mexico shelf from Devon Energy Corporation (Devon) for $1.05billion, effective January1, 2010. Completion of the transaction is subject to preferential rights to purchase held by the other working interest owners in the properties (preferential rights) as well as customary closing conditions, purchase price adjustments and the expiration of the waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the HSR Act). On April23, 2010, we received noticed from the Federal Trade Commission that the early termination of the waiting period under the HSR Act has been granted effective immediately. Approximately half of the value of this transaction is subject to preferential rights. The acquired assets comprise 477,000 net acres across 158 blocks. The fields have 80 platforms and 211 production caissons in waters to 450 feet deep. Approximately half of the estimated proved reserves of 41million barrels of oil equivalent (MMboe) are oil and natural gas liquids. The property interests are projected to produce 9,500 barrels of oil per day (b/d) and 55 MMcf/d (net)after closing, which is expected in June2010. Devon operates 75percent of the production. Apache will fund the acquisition primarily from existing cash balances supplemented with commercial paper. Mariner Energy, Inc. Merger Agreement On April15, 2010, Apache Corporation, a Delaware corporation (Apache), and Mariner Energy, Inc., a Delaware corporation (Mariner), announced that they have entered into a definitive agreement pursuant to which Apache will acquire Mariner in a stock and cash transaction. The Agreement and Plan of Merger dated April14, 2010 (the Merger Agreement), by and among Apache, Mariner and ZMZ Acquisitions LLC, a Delaware limited liability company and wholly owned subsidiary of Apache (Merger Sub), contemplates a merger (the Merger) whereby Mariner will be merged with and into Merger Sub, with Merger Sub surviving the Merger as a wholly owned subsidiary of Apache. The total amount of cash and shares of Apache common stock that will be paid and issued, respectively, pursuant to the Merger Agreement is fixed, and Mariner stockholders will be entitled to receive (on an aggregate basis) 0.17043 of a share of Apache common stock, par value $0.625 per share, and $7.80 in cash for each share of Mariner common stock (the Mixed Consideration). Mariner stockholders have the right to elect to receive all cash ($26.00 per share), all Apache common stock (0.24347 of a share of Apache common stock) or the Mixed Consideration, subject to proration procedures as provided in the Merger Agreement. Upon completion of the Merger, each outstanding option to purchase Mariner common stock will be converted into a fully vested option to purchase 0.24347 shares of Apache common stock. In connection with the Merger, Apache expects to issue approximately 17.5million shares of common stock (an increase of approximately five percent in our outstanding common shares) and pay cash of approximately $800mi

Summary of Significant Accounti

Summary of Significant Accounting Policies
	3 Months Ended Mar. 31, 2010
Summary of Significant Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES As of March31, 2010, Apaches significant accounting policies are consistent with those discussed in Note 1 of its consolidated financial statements contained in the Annual Report on Form 10-K for the fiscal year ended December31, 2009. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the 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. 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 flow therefrom, asset retirement obligations and income taxes. Actual results could differ from those estimates.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities
	3 Months Ended Mar. 31, 2010
Derivative Instruments and Hedging Activities [Abstract]
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	4. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Objectives and Strategies for Using Derivative Instruments The Company is exposed to fluctuations in crude oil and natural gas prices on the majority of its worldwide production. Management 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 typically entered into are designated as cash flow hedges. Counterparty Risk The use of derivative transactions exposes the Company to counterparty credit risk, or the risk that a counterparty will be unable to meet its commitments. To reduce the concentration of exposure to any individual counterparty, Apache utilizes a diversified group of counterparties, primarily financial institutions, for its derivative transactions. As of March31, 2010, Apache had positions with 15 counterparties, all of which were 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 resulting from 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 March31, 2010, Apache had the following open crude oil derivative positions: Fixed-Price Swaps Collars Weighted Weighted Weighted Production Average Average Average Period Mbbls Fixed Price(1) Mbbls Floor Price(1) Ceiling Price(1) 2010(2) 2,113 $ 69.31 7,884 $ 66.14 $ 82.44 2011(2) 3,650 70.12 7,297 67.55 88.19 2012(2) 3,292 70.99 3,469 68.42 91.02 2013(2) 1,451 72.01 546 75.00 98.20 2014 76 74.50 (1) Crude oil prices represent a weighted average of several contracts entered into on a per barrel basis. Crude oil contracts are primarily settled against NYMEX WTI Cushing Index. (2) Subsequent to March31, 2010, Apache entered into crude oil hedges for our 2010 through the 2013 production period totaling 5,298 thousand barrels (Mbbls). After consideration of these hedges, the weighted average floor and ceiling prices for ou

Asset Retirement Obligation

Asset Retirement Obligation
	3 Months Ended Mar. 31, 2010
Asset Retirement Obligation [Abstract]
ASSET RETIREMENT OBLIGATION	5. ASSET RETIREMENT OBLIGATION The following table describes changes to the Companys asset retirement obligation (ARO) liability for the quarter ended March31, 2010: (In thousands) Asset retirement obligation at December31, 2009 $ 1,784,011 Liabilities incurred 22,234 Liabilities settled (39,231 ) Accretion expense 24,002 Asset retirement obligation at March31, 2010 1,791,016 Less current portion (138,879 ) Asset retirement obligation, long-term $ 1,652,137 The ARO 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. To determine the current present value of this obligation, some key assumptions the Company must estimate include the ultimate productive life of the properties, a risk adjusted discount rate and an inflation factor. 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.

Debt

Debt
	3 Months Ended Mar. 31, 2010
Debt [Abstract]
DEBT	6. DEBT As of March31, 2010, the Company had unsecured committed revolving syndicated bank credit facilities totaling $2.3billion, which mature in May2013. These consist of a $1.5billion facility and a $450million facility in the U.S., a $200million facility in Australia and a $150million facility in Canada. Since there are no outstanding borrowings or commercial paper at quarter-end, the full $2.3billion of unsecured credit facilities are available to the Company. The Company has available a $1.95billion commercial paper program, which generally enables Apache to borrow funds for up to 270days at competitive interest rates. Apache had no outstanding commercial paper at March31, 2010. The commercial paper program is fully supported by available borrowing capacity under U.S. committed credit facilities, which expire in 2013. One of the Companys Australian subsidiaries has a secured revolving syndicated credit facility for its Van Gogh and Pyrenees oil developments offshore Western Australia. The facility provides for total commitments of up to $350million, with availability determined by a borrowing base formula. The borrowing base was initially set at $350million and will be redetermined upon project completion, as defined in the facility, which is expected to occur in the fourth quarter of 2010, and semi-annually thereafter. The Company has agreed to guarantee the credit facility until project completion. In the event project completion does not occur by December31, 2010, pursuant to the terms of the facility, the lenders may require repayment of outstanding amounts in the first quarter of 2011. The outstanding balance under the facility as of March31, 2010 and December31, 2009 was $350 million. Under the terms of the agreement, the facility amount begins reducing on June30, 2010 and semi-annually thereafter until maturity on March31, 2014. The outstanding amount under this facility must not exceed $300million on June30, 2010 and $240million on December31, 2010. As $50million and $60million of the current balance will be repaid by June30, 2010 and December31, 2010, respectively, $110million has been classified as current debt at March31, 2010. At March31, 2010 and December31, 2009, there was $3.6million and $7.3million, respectively, borrowed on uncommitted overdraft lines in Argentina. Financing Costs, Net Financing costs incurred during the periods noted are composed of the following: For the Quarter Ended March 31, 2010 2009 (In thousands) Interest expense $ 76,460 $ 78,914 Amortization of deferred loan costs 1,388 1,408 Capitalized interest (17,055 ) (16,009 ) Interest income (1,526 ) (5,726 ) Financing costs, net $ 59,267 $ 58,587

Income Taxes

Income Taxes
	3 Months Ended Mar. 31, 2010
Income Taxes [Abstract]
INCOME TAXES	7. 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. Statutory tax rate changes and other significant or unusual items are recognized as discrete items in the quarter in which they occur. There were no significant discrete tax events that occurred during the first quarter of 2010. Apache and its subsidiaries are subject to U.S. federal income tax as well as income or capital taxes in various state and foreign jurisdictions. The Companys tax reserves are related to tax years that may be subject to examination by the relevant taxing authority. The Company is in Administrative Appeals with the United States Internal Revenue Service (IRS) regarding the 2004 through 2007 tax years and under audit for the 2008 tax year. The Company is also under audit in various states and in most of the Companys foreign jurisdictions as part of its normal course of business.

Capital Stock

Capital Stock
	3 Months Ended Mar. 31, 2010
Capital Stock [Abstract]
CAPITAL STOCK	8. CAPITAL STOCK Net Income (Loss) per Common Share A reconciliation of the components of basic and diluted net income (loss) per common share for the quarters ended March31, 2010 and 2009 is presented in the table below. The loss for first-quarter 2009 reflects a $1.98 billion after-tax write-down of the carrying value of the Companys March 31, 2009, proved property balances in the U.S. and Canada. For the Quarter Ended March 31, 2010 2009 Income Shares Per Share Loss Shares Per Share (In thousands, except per share amounts) Basic: Income (loss)attributable to common stock $ 704,981 336,924 $ 2.09 $ (1,758,360 ) 335,104 $ (5.25 ) Effect of Dilutive Securities: Stock options and other 2,211 Diluted: Income (loss)attributable to common stock, including assumed conversions $ 704,981 339,135 $ 2.08 $ (1,758,360 ) 335,104 $ (5.25 ) The diluted earnings per share calculation excludes options and restricted stock units that were anti-dilutive totaling 1.6million and 5.4million for the quarters ending March31, 2010 and 2009, respectively. The provisions of ASC Topic 260, Earnings Per Share, state that unvested share-based payment awards that contain rights to receive nonforfeitable dividends or dividend equivalents are participating securities prior to vesting and are required to be included in the earnings allocations in computing basic EPS under the two-class method. These participating securities had a negligible impact on earnings per share. Common and Preferred Stock Dividends During the first quarter of 2010 and 2009, Apache paid $50.5million and $50.2million, respectively, in dividends on its common stock. In the first quarter of 2009, Apache paid a total of $1.4million in dividends on its SeriesB Preferred Stock issued in August1998. The Company redeemed all outstanding shares of its SeriesB Preferred Stock on December30, 2009. Stock-Based Compensation Share Appreciation Plans The Company utilizes share appreciation plans from time to time to provide incentives for substantially all full-time employees to increase Apaches share price within a stated measurement period. To achieve the payout, the Companys stock price must close at or above a stated threshold for 10 out of any 30 consecutive trading days before the end of the stated period. Since 2005, two separate share appreciation plans have been approved. A summary of these plans follows: On May7, 2008, the Stock Option Plan Committee of the Companys Board of Directors, pursuant to the Companys 2007 Omnibus Equity Compensation Plan, approved the 2008 Share Appreciation Program, with a target to increase Apaches share price to $216 by the end of 2012 and an interim goal of $162 to be a

Commitments and Contingencies

Commitments and Contingencies
	3 Months Ended Mar. 31, 2010
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	9. COMMITMENTS AND CONTINGENCIES Legal Matters 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 $22million 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. Argentine Environmental Claims As more fully described in Note 8 of the financial statements in our annual report on Form 10-K for our 2009 fiscal year, in connection with the Pioneer acquisition 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 relating to various environmental and remediation claims. No material change in the status of these matters has occurred since the filing of our most recent annual report on Form 10-K. Louisiana Restoration As more fully described in Note 8 of the financial statements in our annual report on Form 10-K for our 2009 fiscal year, numerous surface owners have filed claims or sent demand letters to various oil and gas companies, including Apache, claiming that, under either expressed or implied lease terms or Louisiana law, they are liable for damage measured by the cost of restoration of leased premises to their original condition as well as damages for contamination and cleanup. No material change in the status of these matters has occurred since the filing of our most recent annual report on Form 10-K. Hurricane Related Litigation As more fully described in Note 8 of the financial statements in our annual report on Form 10-K for our 2009 fiscal year, Mississippi property owners allege that hurricanes meteorological effects increased in frequency and intensity due to global warming, and there will be continued future damage from increasing intensity of storms and sea level rises. Plaintiffs allege, among other things, that the defendants (oil and gas companies, electric and coal companies, and chemical manufacturers) emissions of greenhouse gases cause global warming, which they claim caused their damages. No material change in the status of these ma

Fair Value Measurements

Fair Value Measurements
	3 Months Ended Mar. 31, 2010
Fair Value Measurements [Abstract]
FAIR VALUE MEASUREMENTS	10. FAIR VALUE MEASUREMENTS ASC 820, Fair Value Measurements and Disclosures, 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, and 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 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). 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 because of the short-term nature or maturity of these instruments. Commodity Derivative Instruments Apaches commodity derivative instruments consist of variable-to-fixed price commodity swaps and options. The Company uses a market approach to estimate the fair values of derivative instruments, utilizing 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 Level 2 inputs. See Note 4 Derivative Instruments and Hedging Activities of this Form 10-Q 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 in Significant Significant Active Other Unobservable Total Markets Inputs Inputs Fair Carrying (Level 1) (Level 2) (Level 3) Value Netting(1) Amount (In millions) March31, 2010 Assets: Commodity Derivative Instruments $ $ 402 $ $ 402 $ (90 ) $ 312 Liabilities: Commodity Derivative Instruments 306 306

Business Segment Information

Business Segment Information
	3 Months Ended Mar. 31, 2010
Business Segment Information [Abstract]
BUSINESS SEGMENT INFORMATION	11. 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. The Company has production in six countries: the United States (Gulf Coast, Central and Permian regions), Canada, Egypt, offshore Australia, offshore the United Kingdom (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 for each country is presented below: United U.K. Other States Canada Egypt Australia North Sea Argentina International Total (In thousands) For the Quarter Ended March31, 2010 Oil and Gas Production Revenues $ 992,323 $ 252,729 $ 741,092 $ 224,139 $ 391,256 $ 92,086 $ $ 2,693,625 Operating Income (Loss) (1) $ 511,464 $ 95,172 $ 492,792 $ 100,446 $ 148,725 $ 24,977 $ $ 1,373,576 Other Income (Expense): Other (20,374 ) General and administrative (87,150 ) Financing costs, net (59,267 ) Income (Loss) Before Income Taxes $ 1,206,785 Total Assets $ 11,942,559 $ 4,115,494 $ 5,808,799 $ 3,515,452 $ 2,335,120 $ 1,458,878 $ 51,859 $ 29,228,161 For the Quarter Ended March31, 2009 Oil and Gas Production Revenues $ 595,858 $ 209,919 $ 420,228 $ 42,835 $ 242,772 $ 92,002 $ $ 1,603,614 Operating Income (Loss) (1) $ (1,099,536 ) $ (1,557,966 ) $ 222,760 $ (12,590 ) $ 87,654 $ 19,609 $ $ (2,340,069 ) Other Income (Expense): Other 30,211 General and administrative (85,046 ) Financing costs, net (58,587 ) Income (Loss) Before Income Taxes $ (2,453,491 ) Tota

Supplemental Guarantor Informat

Supplemental Guarantor Information
	3 Months Ended Mar. 31, 2010
Supplemental Guarantor Information [Abstract]
SUPPLEMENTAL GUARANTOR INFORMATION	12. SUPPLEMENTAL GUARANTOR INFORMATION Apache Finance Canada Corporation (Apache Finance Canada) is a subsidiary of Apache and has issued approximately $300million of publicly-traded notes due in 2029 and an additional $350 million of publicly-traded notes due in 2015 that are fully and unconditionally guaranteed by Apache. The following condensed consolidating financial statements are provided as an alternative to filing separate financial statements. Apache Finance Canada has been fully consolidated in Apaches consolidated financial statements. As such, these 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 CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS For the Quarter Ended March31, 2010 All Other Apache Subsidiaries Apache Finance of Apache Reclassifications Corporation Canada Corporation Eliminations Consolidated (In thousands) REVENUES AND OTHER: Oil and gas production revenues $ 898,212 $ $ 1,795,413 $ $ 2,693,625 Equity in net income (loss)of affiliates 458,414 24,019 (5,680 ) (476,753 ) Other 1,008 14,605 (34,951 ) (1,036 ) (20,374 ) 1,357,634 38,624 1,754,782 (477,789 ) 2,673,251 OPERATING EXPENSES: Depreciation, depletion and amortization 216,764 421,734 638,498 Asset retirement obligation accretion 11,969 12,033 24,002 Lease operating expenses 168,323 271,923 440,246 Gathering and transportation 10,408 29,957 40,365 Taxes other than income 36,314 140,624 176,938 General and administrative 72,466 15,720 (1,036 ) 87,150 Financing costs, net 52,555 14,120 (7,408 ) 59,267 568,799 14,120 884,583 (1,036 ) 1,466,466 INCOME (LOSS)BEFORE INCOME TAXES 788,835 24,504 870,199 (476,753 ) 1,206,785 Provision (benefit)for income taxes 83,854 6,165 411,785 501,804 INCOME (LOSS)ATTRIBUTABLE TO COMMON STOCK $ 704,981 $ 18,339 $ 458,414 $ (476,753 ) $ 704,981 APACHE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS For the Quarter Ended March31, 2009 All Other Apache Subsidiaries Apache Finance of Apache Reclassifications Corporation