Apache 8-K Apache Corporation Announces Fourth-quarter and Full-year 2017

Exhibit 99.1

  NEWS RELEASE

APACHE CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2017

FINANCIAL AND OPERATIONAL RESULTS; PROVIDES 2018 TO 2020 OUTLOOK

Fourth-quarter highlights

• Delivered reported production of 440,000 barrels of oil equivalent (BOE) per day and adjusted production of 362,000 BOE per day;

• Achieved U.S. production of 222,000 BOE per day, at the high end of guidance;

• Permian oil volumes grew 10 percent from the third quarter. Total Permian production achieved a record, exceeding the previous high set two years ago; and

• Reported $668 million in net cash from operating activities and adjusted EBITDAX of $1.1 billion.

Full-year 2017 highlights

• Returned to profitability, both on a GAAP and adjusted earnings basis;

• Generated $1.4 billion of proceeds and eliminated approximately $800 million in future asset retirement obligations through asset sales;

• Returned $380 million, or 16 percent of net cash from operating activities, during the year to shareholders in the company’s 53^rd consecutive year of dividend payments;

• Retained $1.7 billion in cash on hand and reduced net debt to $6.8 billion from $7.2 billion the previous year; and

• Initiated first sales at Alpine High and increased production to 25,000 BOE per day byyear-end.

2018 outlook

• Establishes a 2018 capital budget of $3 billion, including $500 million for Alpine High midstream;

• Directs more than 70 percent of the capital program toward the Permian; and

• Projects 7 percent to 13 percent adjusted production growth worldwide and 9 percent oil growth in the Permian.

Three-year outlook (2018 to 2020)

• Planned aggregate upstream investment of approximately $7.5 billion;

• Total Alpine High midstream investment of $1 billion;

• Anticipates a compound annual growth rate of 11 to 13 percent worldwide, 19 to 22 percent in the United States, and 26 percent to 28 percent in the Permian Basin; and

• Expects strong and growing Cash Returns on Capital Invested (CROIC) of 18, 20 and 22 percent, respectively, over the three-year period.

HOUSTON, Feb. 22, 2018 – Apache Corporation (NYSE: APA) (Nasdaq: APA) today announced its financial and operational results for fourth-quarter and full-year 2017.

Apache reported net income attributable to common stock of $456 million or $1.19 per diluted common share during the fourth quarter 2017. When adjusted for certain items that impact the

APACHE CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2017

FINANCIAL AND OPERATIONAL RESULTS; PROVIDES 2018 TO 2020 OUTLOOK

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comparability of results including the impact of U.S. tax reform, Apache’s fourth-quarter income totaled $126 million, or $0.33 per share. Net cash provided by continuing operating activities in the fourth quarter was $668 million, and adjusted EBITDAX was $1.1 billion.

For the full year 2017, Apache reported income of $1.3 billion, or $3.41 per diluted common share. On an adjusted basis, Apache’s 2017 income totaled $92 million, or $0.24 per share. Net cash provided by continuing operating activities was $2.4 billion, and adjusted EBITDAX was $3.7 billion in 2017.

John J. Christmann IV, Apache’s chief executive officer and president, said, “2017 was a year of significant progress at Apache marked by several important milestones. In the Permian, we returned to a growth trajectory with notable oil growth in the Midland Basin and commencement of production from Alpine High. We made great technical progress in the Midland Basin increasing lateral lengths and utilizing technology to improve our recoveries and reduce our costs. We consolidated our land position, confirmed additional landing zones, and progressed numerous strategic tests. At Alpine High, we initiated first production ahead of schedule, substantially increased our inventory count, and began to realize operational efficiencies with pad drilling.

“Internationally, we signed our first concessions in Egypt in 10 years, and with the help of modern-vintage 3D seismic, we expect to unlock significant future drilling opportunities in the region. We also completed our exit from Canada, further streamlining our portfolio. It was a year of numerous accomplishments that has set us up for great success in 2018 and beyond.”

Capital budget and production outlook

In 2018, the company plans to invest $3 billion in oil and gas capital, with more than 70 percent allocated to the Permian. This amount includes approximately $500 million for Alpine High midstream. Internationally, Apache will continue to invest at a level to sustain long-term free cash flow in Egypt and the North Sea.

APACHE CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2017

FINANCIAL AND OPERATIONAL RESULTS; PROVIDES 2018 TO 2020 OUTLOOK

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From 2018 to 2020, Apache expects to invest approximately $7.5 billion in the upstream worldwide and $1 billion in midstream at Alpine High. Any monetization of the Alpine High midstream assets could eliminate some or all of this expected spend.

Apache anticipates its returns-focused investment approach will result in a compound annual production growth rate of 11 to 13 percent worldwide and generate Cash Returns on Capital Invested (CROIC) of 18, 20 and 22 percent, respectively, over the

three-year period.

“Our three-year plan will generate strong returns and growth and will create significant long-term value for our shareholders. Over the last three years, Apache has returned over $1.1 billion to shareholders through the dividend. In the coming three years, we plan to return at least this amount and possibly more,” said Christmann.

Fourth-quarter operational highlights

During the fourth quarter, Apache operated an average of 36 rigs and drilled and completed 87 gross-operated wells worldwide. Highlights from Apache’s principal areas include:

• North America– Apache operated an average of 21 rigs and drilled and completed 58 gross-operated wells in North America and reported production of 222,000 BOE per day.

In the Permian Basin, Apache operated an average of 16 rigs and drilled and completed 57 gross-operated wells. Production averaged 177,000 BOE per day.

• In the Midland Basin, Apache placed three multiwell pads on production. Drilling, completion and equipment costs decreased 20 percent from the first quarter of 2017 on a treated-lateral-foot basis, while volumes improved by approximately 17 percent.

APACHE CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2017

FINANCIAL AND OPERATIONAL RESULTS; PROVIDES 2018 TO 2020 OUTLOOK

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• In the Delaware Basin, Apache averaged nine rigs, with six at Alpine High. The company completed construction of its fifth central processing unit at Alpine High bringing processing capacity to 280 million cubic feet (MMcf) per day with an additional 50 MMcf per day commissioned in January 2018.

• International– Apache operated an average of 15 rigs and drilled and completed 29 gross-operated wells internationally and reported production of 218,000 BOE per day.

• Egypt– The company completed nine wells with24-hour initial production rates exceeding 1,000 BOE per day. Following the award of additional Western Desert concessions, the company is progressing an 1,800 square-kilometer 3D seismic shoot.

• North Sea – The company completed the sale of the SAGE gas pipeline and brought online a third development well at Callater. Quarterly production was impacted by an unplanned17-day shutdown on the third-party operated Forties Pipeline System.

Financial position and liquidity

Atyear-end, the company had $1.7 billion cash on hand, up from $1.4 billion atyear-end 2016. During the year, asset sales generated $1.4 billion of proceeds and eliminated approximately $800 million of future asset retirement obligations. The company’s net debt position atyear-end was $6.8 billion, down from $7.2 billion atyear-end 2016.

Year-end 2017 proved reserves

Worldwide estimated proved reserves totaled 1.2 billion BOE atyear-end 2017, down from 1.3 billion BOE atyear-end 2016, primarily as a result of the company’s sale of its Canadian assets during 2017. The company replaced 124 percent of 2017 production through extensions and discoveries net of engineering revisions. All sources finding and development costs were $11.89 per BOE. Proved undeveloped reserves represented 13 percent of total proved reserves atyear-end.

APACHE CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2017

FINANCIAL AND OPERATIONAL RESULTS; PROVIDES 2018 TO 2020 OUTLOOK

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Changes in Apache’s reserves during the year consisted of the following: divestitures of 212 million barrels of oil equivalent (MMBOE) and production of 167 MMBOE; These decreases were offset by 230 MMBOE of proved reserves added through net extensions and discoveries, 2 MMBOE of proved reserves through purchases of mineralsin-place, and revisions of previous estimates of 10 MMBOE.

Conference call

Apache will host a conference call to discuss its fourth-quarter and full-year 2017 results at 1 p.m. Central time, Thursday, Feb. 22. The conference call will be webcast from Apache’s website at www.apachecorp.com and investor.apachecorp.com, and the webcast replay will be archived there as well. A replay of the conference call will be available for seven days following the call. The number for the replay is855-859-2056 or404-537-3406 for international calls. The conference access code is 5884904. Sign up for email alerts to be reminded of the webcast atinvestor.apachecorp.com/alerts.cfm.

About Apache

Apache Corporation is an oil and gas exploration and production company with operations in the United States, Egypt and the United Kingdom. Apache posts announcements, operational updates, investor information and all press releases on its website,www.apachecorp.com, and on its Media and Investor Center mobile application, which is available for free download from theAppleApp Store and theGoogle’s Play store.

APACHE CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2017

FINANCIAL AND OPERATIONAL RESULTS; PROVIDES 2018 TO 2020 OUTLOOK

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Additional information

Additional information follows, including reconciliations of adjusted earnings, adjusted EBITDAX and net debt(non-GAAP financial measures) to GAAP measures and information regarding adjusted production. Apache’s quarterly supplement is available atwww.apachecorp.com/financialdata.

Non-GAAP financial measures

Apache’s financial information includes information prepared in conformity with generally accepted accounting principles (GAAP) as well asnon-GAAP financial information. It is management’s intent to providenon-GAAP financial information to enhance understanding of our consolidated financial information as prepared in accordance with GAAP. Adjusted earnings, adjusted EBITDAXand net debt arenon-GAAP measures. Thisnon-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Eachnon-GAAP financial measure is presented along with the corresponding GAAP measure so as not to imply that more emphasis should be placed on thenon-GAAP measure.

Forward-looking statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “guidance,” “outlook,” and similar references to future periods. These statements include, but are not limited to, statements about future plans, expectations and objectives for Apache’s operations, including statements about our capital plans, drilling plans, production expectations, asset sales, and monetizations. While forward-looking statements are based on assumptions and analyses made by us that we believe to be reasonable under the circumstances,

APACHE CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2017

FINANCIAL AND OPERATIONAL RESULTS; PROVIDES 2018 TO 2020 OUTLOOK

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whether actual results and developments will meet our expectations and predictions depend on a number of risks and uncertainties which could cause our actual results, performance, and financial condition to differ materially from our expectations. See “Risk Factors” in our 2016 Form10-K filed, and 2017 Form10-K when filed, with the Securities and Exchange Commission (“SEC”) for a discussion of risk factors that affect our business. Any forward-looking statement made by Apache in this news release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. Apache undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as may be required by law.

Cautionary note to investors

The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable, and possible reserves that meet the SEC’s definitions for such terms. Apache may use certain terms in this earnings release, such as “resources,” “potential resources,” “resource potential,” “estimated net reserves,” “recoverable reserves,” and other similar terms that the SEC guidelines strictly prohibit Apache from including in filings with the SEC. Such terms do not take into account the certainty of resource recovery, which is contingent on exploration success, technical improvements in drilling access, commerciality and other factors, and are therefore not indicative of expected future resource recovery and should not be relied upon. Investors are urged to consider carefully the disclosure in Apache’s Annual Report on Form10-K for the fiscal year ended Dec. 31, 2016 (and Apache’s Annual Report on Form10-K for the fiscal year ended Dec. 31, 2017, when filed) available from Apache atwww.apachecorp.com or by writing Apache at: 2000 Post Oak Blvd., Suite 100, Houston, TX 77056 (Attn: Corporate Secretary). You can also obtain this report from the SEC by calling1-800-SEC-0330 or from the SEC’s website atwww.sec.gov.

APACHE CORPORATION ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2017

FINANCIAL AND OPERATIONAL RESULTS; PROVIDES 2018 TO 2020 OUTLOOK

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Contacts

Investor: (281)302-2286 Gary Clark

Media: (713)296-7276 Castlen Kennedy

Website:www.apachecorp.com

APA-F

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APACHE CORPORATION

STATEMENT OF CONSOLIDATED OPERATIONS

(Unaudited)

(In millions, except per share data)

	For the Quarter Ended December 31,						For the Year Ended December 31,
	2017			2016			2017			2016
REVENUES AND OTHER:
Oil and gas production revenues
Oil revenues	$	1,306		$	1,115		$	4,598		$	4,172
Natural gas revenues		233			272			959			967
Natural gas liquids revenues		101			68			330			228
		1,640			1,455			5,887			5,367
Derivative instrument gains (losses), net		(66	)		—			(135	)		—
Gain on divestiture		11			—			627			21
Other		1			(4	)		44			(34	)
		1,586			1,451			6,423			5,354
OPERATING EXPENSES:
Lease operating expenses		334			375			1,400			1,494
Gathering and transportation		35			45			179			200
Taxes other than income		34			41			151			126
Exploration		118			126			549			473
General and administrative		88			112			395			410
Transaction, reorganization and separation		2			3			16			39
Depreciation, depletion and amortization:
Oil and gas property and equipment		538			585			2,136			2,460
Other assets		35			38			144			158
Asset retirement obligation accretion		27			40			130			156
Impairments		—			94			8			1,103
Financing costs, net		97			106			397			417
		1,308			1,565			5,505			7,036
NET INCOME (LOSS) BEFORE INCOME TAXES		278			(114	)		918			(1,682	)
Current income tax provision (benefit)		182			107			595			391
Deferred income tax provision (benefit)		(422	)		(78	)		(1,180	)		(833	)
NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST		518			(143	)		1,503			(1,240	)
Income (Loss) from discontinued operations, net of tax		—			—			—			(33	)
INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST		518			(143	)		1,503			(1,273	)
Net income attributable to noncontrolling interest		62			39			199			132
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK	$	456		$	(182	)	$	1,304		$	(1,405	)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS
Net income (loss) from continuing operations attributable to common shareholders	$	456		$	(182	)	$	1,304		$	(1,372	)
Net income (loss) from discontinued operations		—			—			—			(33	)
Net income (loss) attributable to common shareholders	$	456		$	(182	)	$	1,304		$	(1,405	)
BASIC NET INCOME (LOSS) PER COMMON SHARE:
Basic net income (loss) from continuing operations per share	$	1.20		$	(0.48	)	$	3.42		$	(3.62	)
Basic net income (loss) from discontinued operations per share		—			—			—			(0.09	)
Basic net income (loss) per share	$	1.20		$	(0.48	)	$	3.42		$	(3.71	)
DILUTED NET INCOME (LOSS) PER COMMON SHARE:
Diluted net income (loss) from continuing operations per share	$	1.19		$	(0.48	)	$	3.41		$	(3.62	)
Diluted net income (loss) from discontinued operations per share		—			—			—			(0.09	)
Diluted net income (loss) per share	$	1.19		$	(0.48	)	$	3.41		$	(3.71	)
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
Basic		381			380			381			379
Diluted		383			380			383			379
DIVIDENDS DECLARED PER COMMON SHARE	$	0.25		$	0.25		$	1.00		$	1.00

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APACHE CORPORATION

PRODUCTION INFORMATION

	For the Quarter Ended						% Change						For the Year Ended
	December 31, 2017		September 30, 2017		December 31, 2016		4Q17 to 3Q17			4Q17 to 4Q16			December 31, 2017		December 31, 2016
OIL VOLUME - Barrels per day
Permian		85,448		77,701		77,566		10	%		10	%		77,590		84,226
MidContinent/Gulf Coast Region		9,564		9,670		11,697		-1	%		-18	%		10,138		14,937
Gulf of Mexico		3,189		3,512		5,337		-9	%		-40	%		3,761		4,664
Canada		—		3,441		12,338		NM			NM			6,643		13,081
North America		98,201		94,324		106,938		4	%		-8	%		98,132		116,908
Egypt(1, 2)		96,633		93,749		99,557		3	%		-3	%		97,242		103,719
North Sea		47,746		49,945		53,316		-4	%		-10	%		48,889		54,630
International(1)		144,379		143,694		152,873		0	%		-6	%		146,131		158,349
Total(1)		242,580		238,018		259,811		2	%		-7	%		244,263		275,257
NATURAL GAS VOLUME - Mcf per day
Permian		319,967		278,308		225,676		15	%		42	%		266,133		236,590
MidContinent/Gulf Coast Region		110,443		115,982		132,141		-5	%		-16	%		116,079		144,265
Gulf of Mexico		10,664		10,196		14,415		5	%		-26	%		12,154		15,372
Canada		—		107,524		223,810		NM			NM			131,479		242,602
North America		441,074		512,010		596,042		-14	%		-26	%		525,845		638,829
Egypt(1, 2)		376,285		378,426		356,637		-1	%		6	%		386,194		391,968
North Sea		53,597		50,057		86,248		7	%		-38	%		45,521		71,751
International(1)		429,882		428,483		442,885		0	%		-3	%		431,715		463,719
Total(1)		870,956		940,493		1,038,927		-7	%		-16	%		957,560		1,102,548
NGL VOLUME - Barrels per day
Permian		38,193		36,737		34,123		4	%		12	%		35,858		37,562
MidContinent/Gulf Coast Region		11,973		12,137		14,373		-1	%		-17	%		12,478		16,154
Gulf of Mexico		320		275		509		16	%		-37	%		338		449
Canada		—		2,183		5,292		NM			NM			2,827		5,731
North America		50,486		51,332		54,297		-2	%		-7	%		51,501		59,896
Egypt(1, 2)		517		916		974		-44	%		-47	%		816		1,084
North Sea		1,459		1,219		2,139		20	%		-32	%		1,149		1,703
International(1)		1,976		2,135		3,113		-7	%		-37	%		1,965		2,787
Total		52,462		53,467		57,410		-2	%		-9	%		53,466		62,683
BOE per day
Permian		176,969		160,823		149,302		10	%		19	%		157,804		161,219
MidContinent/Gulf Coast Region		39,943		41,138		48,093		-3	%		-17	%		41,962		55,135
Gulf of Mexico		5,287		5,486		8,249		-4	%		-36	%		6,125		7,675
Canada		—		23,544		54,931		NM			NM			31,383		59,246
North America		222,199		230,991		260,575		-4	%		-15	%		237,274		283,275
Egypt(1, 2)		159,864		157,737		159,971		1	%		0	%		162,424		170,131
North Sea		58,138		59,507		69,830		-2	%		-17	%		57,624		68,292
International(1)		218,002		217,244		229,801		0	%		-5	%		220,048		238,423
Total(1)		440,201		448,235		490,376		-2	%		-10	%		457,322		521,698
Total excluding noncontrolling interests		387,184		395,578		436,857		-2	%		-11	%		403,130		464,998
(1) Includes net production volumes attributed to our noncontrolling partner in Egypt below:
Oil (b/d)		32,131		31,275		33,238								32,461		34,530
Gas (Mcf/d)		124,285		126,459		119,734								128,756		130,856
NGL (b/d)		172		305		325								272		361
(2) Egypt Gross Production - BOE per day		333,911		339,069		344,540		-2	%		-3	%		333,934		349,387

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APACHE CORPORATION

ADJUSTED PRODUCTION INFORMATION

Adjusted production excludes certain items that management believes affect the comparability of operating results for the periods presented. Adjusted production excludes production attributable to 1) divested assets, 2) noncontrolling interest in Egypt, and 3) Egypt tax barrels. Management uses adjusted production to evaluate the company’s operational trends and performance and believes it is useful to investors and other third parties.

	For the Quarter Ended						% Change						For the Year Ended
	December 31, 2017		September 30, 2017		December 31, 2016		4Q17 to 3Q17			4Q17 to 4Q16			December 31, 2017		December 31, 2016
OIL VOLUME - Barrels per day
Permian		85,448		77,701		77,018		10	%		11	%		77,481		83,626
MidContinent/Gulf Coast Region		9,564		9,670		11,697		-1	%		-18	%		10,138		14,937
Gulf of Mexico		3,189		3,512		5,337		-9	%		-40	%		3,761		4,664
North America		98,201		90,883		94,052		8	%		4	%		91,380		103,227
Egypt		48,484		49,992		53,799		-3	%		-10	%		50,466		57,273
North Sea		47,746		49,945		53,316		-4	%		-10	%		48,889		54,630
International		96,230		99,937		107,115		-4	%		-10	%		99,355		111,903
Total		194,431		190,820		201,167		2	%		-3	%		190,735		215,130
NATURAL GAS VOLUME - Mcf per  day
Permian		319,967		278,308		221,604		15	%		44	%		265,642		233,230
MidContinent/Gulf Coast Region		110,443		115,982		132,141		-5	%		-16	%		116,079		144,265
Gulf of Mexico		10,664		10,196		14,415		5	%		-26	%		12,154		15,372
North America		441,074		404,486		368,160		9	%		20	%		393,875		392,867
Egypt		198,806		216,990		216,344		-8	%		-8	%		213,208		240,113
North Sea		53,597		50,057		86,248		7	%		-38	%		45,521		71,751
International		252,403		267,047		302,592		-5	%		-17	%		258,729		311,864
Total		693,477		671,533		670,752		3	%		3	%		652,604		704,731
NGL VOLUME - Barrels per day
Permian		38,193		36,737		33,088		4	%		15	%		35,781		36,787
MidContinent/Gulf Coast Region		11,973		12,137		14,373		-1	%		-17	%		12,478		16,154
Gulf of Mexico		320		275		509		16	%		-37	%		338		449
North America		50,486		49,149		47,970		3	%		5	%		48,597		53,390
Egypt		296		534		588		-45	%		-50	%		470		672
North Sea		1,459		1,219		2,139		20	%		-32	%		1,149		1,703
International		1,755		1,753		2,727		0	%		-36	%		1,619		2,375
Total		52,241		50,902		50,697		3	%		3	%		50,216		55,765
BOE per day
Permian		176,969		160,823		147,040		10	%		20	%		157,536		159,284
MidContinent/Gulf Coast Region		39,943		41,138		48,093		-3	%		-17	%		41,962		55,135
Gulf of Mexico		5,287		5,486		8,249		-4	%		-36	%		6,125		7,675
North America		222,199		207,447		203,382		7	%		9	%		205,623		222,094
Egypt		81,914		86,691		90,445		-6	%		-9	%		86,470		97,963
North Sea		58,138		59,507		69,830		-2	%		-17	%		57,624		68,292
International		140,052		146,198		160,275		-4	%		-13	%		144,094		166,255
Total		362,251		353,645		363,657		2	%		0	%		349,717		388,349

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APACHE CORPORATION

PRICE INFORMATION

	For the Quarter Ended						For the Year Ended
	December 31, 2017		September 30, 2017		December 31, 2016		December 31, 2017		December 31, 2016
AVERAGE OIL PRICE PER BARREL
Permian	$	53.22	$	45.68	$	45.80	$	48.47	$	39.52
MidContinent/Gulf Coast Region		54.35		45.99		46.36		48.91		38.81
Gulf of Mexico		56.26		46.50		46.29		49.17		40.21
Canada		—		42.23		42.70		45.25		37.62
North America		53.40		45.56		45.48		48.18		39.23
Egypt		61.91		51.23		48.96		53.57		43.66
North Sea		61.32		53.11		48.36		53.81		42.93
International		61.71		51.87		48.76		53.65		43.41
Total		58.36		49.34		47.39		51.46		41.63
AVERAGE NATURAL GAS PRICE PER MCF
Permian	$	2.52	$	2.56	$	2.70	$	2.53	$	2.19
MidContinent/Gulf Coast Region		2.73		2.78		2.88		2.89		2.24
Gulf of Mexico		3.07		2.97		2.97		3.05		2.55
Canada		—		1.90		2.22		2.17		1.64
North America		2.50		2.47		2.52		2.46		1.97
Egypt		2.90		2.81		2.78		2.80		2.71
North Sea		6.18		5.27		5.42		5.54		4.51
International		3.31		3.10		3.29		3.09		2.99
Total		2.90		2.75		2.85		2.74		2.40
AVERAGE NGL PRICE PER BARREL
Permian	$	21.02	$	16.68	$	12.33	$	16.96	$	9.82
MidContinent/Gulf Coast Region		16.89		12.92		9.14		13.68		8.00
Gulf of Mexico		24.27		19.64		15.51		19.85		10.49
Canada		—		15.80		13.24		16.39		8.15
North America		20.06		15.77		11.60		16.15		9.17
Egypt		41.06		36.47		32.61		36.79		28.68
North Sea		48.33		26.92		29.38		36.22		24.20
International		46.42		31.02		30.39		36.46		25.94
Total		21.06		16.38		12.62		16.90		9.92

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APACHE CORPORATION

SUPPLEMENTAL FINANCIAL INFORMATION

(Unaudited)

(In millions)

SUMMARY OF DERIVATIVE INSTRUMENT GAINS (LOSSES), NET

	For the Quarter Ended December 31,					For the Year Ended December 31,
	2017			2016		2017			2016
Derivative settlements - realized gain	$	1		$	—	$	24		$	—
Amortization of put premium - realized (loss)		(50	)		—		(100	)		—
Realized (loss)		(49	)		—		(76	)		—
Unrealizedmark-to-market (loss)		(17	)		—		(59	)		—
	$	(66	)	$	—	$	(135	)	$	—

SUMMARY EXPLORATION EXPENSE INFORMATION

	For the Quarter Ended December 31,				For the Year Ended December 31,
	2017		2016		2017		2016
Unproved leasehold impairments	$	32	$	50	$	246	$	272
Dry hole expense		47		43		183		81
Geological and geophysical expense		23		14		47		44
Exploration overhead and other		16		19		73		76
	$	118	$	126	$	549	$	473

SUMMARY CASH FLOW INFORMATION

	For the Quarter Ended December 31,						For the Year Ended December 31,
	2017			2016			2017			2016
Net cash provided by continuing operating activities	$	668		$	819		$	2,428		$	2,453
Net cash provided by (used in) discontinued operations		—			(23	)		—			(23	)
Net cash provided by operating activities		668			796			2,428			2,430
Net cash used in investing activities		(793	)		(298	)		(1,416	)		(1,660	)
Net cash used in financing activities		(149	)		(351	)		(721	)		(860	)

SUMMARY BALANCE SHEET INFORMATION

	December 31, 2017		December 31, 2016
Cash and cash equivalents	$	1,668	$	1,377
Other current assets		2,057		1,864
Property and equipment, net		17,759		18,867
Other assets		438		411
Total assets	$	21,922	$	22,519
Current Debt	$	550	$	—
Current liabilities		2,014		1,843
Long-term debt		7,934		8,544
Deferred credits and other noncurrent liabilities		2,633		4,453
Apache shareholders’ equity		7,416		6,238
Noncontrolling interest		1,375		1,441
Total Liabilities and shareholders’ equity	$	21,922	$	22,519
Common shares outstanding at end of period		381		379

Page 5

APACHE CORPORATION

NON-GAAP FINANCIAL MEASURES

(In millions, except per share data)

Reconciliation of net cash provided by operating activities to adjusted EBITDAX

Management believes EBITDAX, or earnings before income tax expense, interest expense, depreciation, amortization and exploration expense is a widely accepted financial indicator, and useful for investors, to assess a company’s ability to incur and service debt, fund capital expenditures, and make distributions to shareholders. We define adjusted EBITDAX, anon-GAAP financial measure, as EBITDAX adjusted for certain items presented in the accompanying reconciliation. Management uses adjusted EBITDAX to evaluate our ability to fund our capital expenditures, debt services and other operational requirements and to compare our results from period to period by eliminating the impact of certain items that management does not consider to be representative of the Company’son-going operations. Management also believes adjusted EBITDAX facilitates investors and analysts in evaluating and comparing EBITDAX from period to period by eliminating differences caused by the existence and timing of certain operating expenses that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted EBITDAX may not be comparable to similar measures of other companies in our industry.

	For the Quarter Ended								For the Year Ended
	December 31,		September 30,			December 31,			December 31,
	2017		2017			2016			2017			2016
Net cash provided by operating activities	$	668	$	554		$	819		$	2,428		$	2,453
Adjustments:
Exploration expense other than dry hole expense and unproved leasehold impairments		39		33			33			120			120
Current income tax provision		182		99			107			595			391
Other adjustments to reconcile net loss to net cash provided by operating activities		21		(87	)		(38	)		(146	)		(164	)
Changes in operating assets and liabilities		92		101			(152	)		320			(153	)
Financing costs, net		97		101			106			397			417
Transaction, reorganization & separation costs		2		20			3			16			39
Contract termination charges		—		—			—			—			10
Adjusted EBITDAX(Non-GAAP)	$	1,101	$	821		$	878		$	3,730		$	3,113

Reconciliation of income (loss) attributable to common stock to adjusted earnings

Our presentation of adjusted earnings and adjusted earnings per share arenon-GAAP measures because they exclude the effect of certain items included in Income Attributable to Common Stock. Management believes that adjusted earnings and adjusted earnings per share provides relevant and useful information, which is widely used by analysts, investors and competitors in our industry as well as by our management in assessing the Company’s operational trends and comparability of results to our peers.

Management uses adjusted earnings and adjusted earnings per share to evaluate our operating and financial performance because it eliminates the impact of certain items that management does not consider to be representative of the Company’son-going business operations. As a performance measure, adjusted earnings may be useful to investors in facilitating comparisons to others in the Company’s industry because certain items can vary substantially in the oil and gas industry from company to company depending upon accounting methods, book value of assets, capital structure and asset sales and other divestitures, among other factors. Management believes excluding these items facilitates investors and analysts in evaluating and comparing the underlying operating and financial performance of our business from period to period by eliminating differences caused by the existence and timing of certain expense and income items that would not otherwise be apparent on a GAAP basis. However, our presentation of adjusted earnings and adjusted earnings per share may not be comparable to similar measures of other companies in our industry.

	For the Quarter Ended December 31, 2017												For the Quarter Ended December 31, 2016
	Before Tax			Tax Impact			After Tax			Diluted EPS			Before Tax			Tax Impact			After Tax			Diluted EPS
Income (loss) attributable to common stock (GAAP)	$	216		$	240		$	456		$	1.19		$	(153	)	$	(29	)	$	(182	)	$	(0.48	)
Adjustments: *
Valuation allowance and other tax adjustments		—			(354	)		(354	)		(0.92	)		—			68			68			0.18
Gain on divestitures		(11	)		2			(9	)		(0.03	)		—			—			—			—
Asset impairments		32			(11	)		21			0.06			144			(54	)		90			0.23
Unrealized derivative instrument loss		17			(6	)		11			0.03			—			—			—			—
Transaction, reorganization & separation costs		2			(1	)		1			—			3			(2	)		1			0.01
Loss on extinguishment of debt		—			—			—			—			1			—			1			—
Adjusted earnings(Non-GAAP)	$	256		$	(130	)	$	126		$	0.33		$	(5	)	$	(17	)	$	(22	)	$	(0.06	)

	For the Year Ended December 31, 2017												For the Year Ended December 31, 2016
	Before Tax			Tax Impact			After Tax			Diluted EPS			Before Tax			Tax Impact			After Tax			Diluted EPS
Income (Loss) Attributable to Common Stock (GAAP)	$	719		$	585		$	1,304		$	3.41		$	(1,847	)	$	442		$	(1,405	)	$	(3.71	)
Adjustments: *
Valuation allowance and other tax adjustments		—			(994	)		(994	)		(2.60	)		—			40			40			0.11
Gain on divestitures		(627	)		195			(432	)		(1.13	)		(21	)		6			(15	)		(0.04	)
Asset impairments		254			(89	)		165			0.43			1,375			(490	)		885			2.34
Unrealized derivative instrument loss		59			(20	)		39			0.10			—			—			—			—
Transaction, reorganization & separation costs		16			(7	)		9			0.03			39			(14	)		25			0.07
Loss on extinguishment of debt		1			—			1			—			1			—			1			—
Discontinued Operations		—			—			—			—			33			—			33			0.08
Contract termination charges		—			—			—			—			10			(4	)		6			0.02
Adjusted Earnings(Non-GAAP)	$	422		$	(330	)	$	92		$	0.24		$	(410	)	$	(20	)	$	(430	)	$	(1.13	)

* The income tax effect of the reconciling items are calculated based on the statutory rate of the jurisdiction in which the discrete item resides.

Page 6

APACHE CORPORATION

NON-GAAP FINANCIAL MEASURES

(In millions)

Reconciliation of Debt to Net debt

Net debt, or outstanding debt obligations less cash and cash equivalents, is anon-GAAP financial measure. Management uses net debt as a measure of the Company’s outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand.

	December 31, 2017		September 30, 2017		June 30, 2017		March 31, 2017		December 31, 2016
Current debt	$	550	$	550	$	150	$	150	$	—
Long-term debt		7,934		7,933		8,329		8,327		8,544
Total debt		8,484		8,483		8,479		8,477		8,544
Cash and cash equivalents		1,668		1,846		1,667		1,521		1,377
Net debt	$	6,816	$	6,637	$	6,812	$	6,956	$	7,167

Reconciliation of Costs incurred and GTP capital investments to Oil and gas capital investment

Management believes the presentation of oil and gas capital investments is useful for investors to assess Apache’s expenditures related to our oil and gas capital activity. We define oil and gas capital investments as costs incurred for oil and gas activities and GTP activities, adjusted to exclude asset retirement obligations revisions and liabilities incurred, while including amounts paid during the period for abandonment and decommissioning expenditures. Capital expenditures attributable to aone-third noncontrolling interest in Egypt are also excluded. Management believes this provides a more accurate reflection of Apache’s cash expenditures related to oil and gas capital activity and is consistent with how we plan our capital budget.

	For the Quarter Ended December 31,						For the Year Ended December 31,
	2017			2016			2017			2016
Costs incurred in oil and gas property:
Acquisitions
Proved	$	4		$	2		$	7		$	45
Unproved		32			10			181			170
Exploration and development		718			112			2,698			1,420
		754			124			2,886			1,635
GTP capital investments:
GTP facilities		155			125			552			156
Total Costs incurred and GTP capital investments	$	909		$	249		$	3,438		$	1,791
Reconciliation of Costs incurred and GTP to Oil and gas capital investment
Asset retirement obligations incurred and revisions	$	32		$	292		$	(88	)		192
Asset retirement obligations settled		13			22			45			57
Exploration expense other than dry hole expense and unproved leasehold impairments		(39	)		(33	)		(120	)		(120	)
Less noncontrolling interest		(53	)		(26	)		(186	)		(159	)
Total Oil and gas capital investment	$	862		$	504		$	3,089		$	1,761

Reconciliation of net cash provided by operating activities to cash flows from continuing operations before changes in operating assets and liabilities

Cash flows from continuing operations before changes in operating assets and liabilities is anon-GAAP financial measure. Apache uses it internally and provides the information because management believes it is useful for investors and widely accepted by those following the oil and gas industry as a financial indicator of a company’s ability to generate cash to internally fund exploration and development activities, fund dividend programs, and service debt. It is also used by research analysts to value and compare oil and gas exploration and production companies and is frequently included in published research when providing investment recommendations. Cash flows from operations before changes in operating assets and liabilities, therefore, is an additional measure of liquidity but is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing, or financing activities.

	For the Quarter Ended							For the Year Ended
	December 31,		September 30,		December 31,			December 31,
	2017		2017		2016			2017		2016
Net cash provided by operating activities (GAAP)	$	668	$	554	$	796		$	2,428	$	2,430
Less: Discontinued operations		—		—		23			—		23
Net cash provided by operating activities	$	668	$	554	$	819		$	2,428	$	2,453
Changes in operating assets and liabilities		92		101		(152	)		320		(153	)
Cash flows from operations before changes in operating assets and liabilities	$	760	$	655	$	667		$	2,748	$	2,300

Page 7

APACHE CORPORATION

OIL & GAS RESERVES INFORMATION

For the Year Ended December 31, 2017

OIL (Mbbl)
	U.S.			Canada			Egypt1			North Sea			Total1
Balance - Dec 31, 2016		321,988			59,414			158,958			101,922			642,282
Extensions and Discoveries		48,391			14,025			27,140			16,023			105,579
Purchases		46			375			—			—			421
Revisions		825			1,829			(9,839	)		6,510			(675	)
Production		(33,394	)		(2,425	)		(35,493	)		(17,844	)		(89,156	)
Sales		(1,673	)		(73,218	)		—			—			(74,891	)
Balance - Dec 31, 2017		336,183			—			140,766			106,611			583,560
NGL’s (Mbbl)
	U.S.			Canada			Egypt1			North Sea			Total1
Balance - Dec 31, 2016		172,435			16,339			1,397			2,273			192,444
Extensions and Discoveries		33,806			1,794			50			845			36,495
Purchases		206			199			—			—			405
Revisions		12,982			(1,060	)		(425	)		(321	)		11,176
Production		(17,766	)		(1,032	)		(298	)		(419	)		(19,515	)
Sales		(1,099	)		(16,240	)		—			—			(17,339	)
Balance - Dec 31, 2017		200,564			—			724			2,378			203,666
Oil & NGL’s
	U.S.			Canada			Egypt1			North Sea			Total1
Balance - Dec 31, 2016		494,423			75,753			160,355			104,195			834,726
Extensions and Discoveries		82,197			15,819			27,190			16,868			142,074
Purchases		252			574			—			—			826
Revisions		13,807			769			(10,264	)		6,189			10,501
Production		(51,160	)		(3,457	)		(35,791	)		(18,263	)		(108,671	)
Sales		(2,772	)		(89,458	)		—			—			(92,230	)
Balance - Dec 31, 2017		536,747			—			141,490			108,989			787,226
GAS (MMcf)
	U.S.			Canada			Egypt1			North Sea			Total1
Balance - Dec 31, 2016		1,431,683			599,036			717,668			110,761			2,859,148
Extensions and Discoveries		378,747			49,780			81,245			17,646			527,418
Purchases		4,434			4,319			—			—			8,753
Revisions		(5,431	)		92,207			(70,030	)		(17,387	)		(641	)
Production		(143,943	)		(47,990	)		(140,961	)		(16,615	)		(349,509	)
Sales		(21,255	)		(697,352	)		—			—			(718,607	)
Balance - Dec 31, 2017		1,644,235			—			587,922			94,405			2,326,562
TOTAL BOE (Mboe)
	U.S.			Canada			Egypt1			North Sea			Total1
Balance - Dec 31, 2016		733,037			175,593			279,966			122,655			1,311,251
Extensions and Discoveries		145,322			24,115			40,731			19,809			229,977
Purchases		991			1,294			—			—			2,285
Revisions		12,903			16,136			(21,936	)		3,291			10,394
Production		(75,151	)		(11,455	)		(59,285	)		(21,032	)		(166,923	)
Sales		(6,315	)		(205,683	)		—			—			(211,998	)
Balance - Dec 31, 2017		810,787			—			239,476			124,723			1,174,986
Proved developed reserves:
Oil + NGL’s (Mbbls)		475,284			—			125,253			94,623			695,160
Gas (Mboe)		224,502			—			90,111			13,890			328,503
Balance - Dec 31, 2017 (Mboe)		699,786			—			215,364			108,513			1,023,663

⁽¹⁾  Includes reserves attributable to noncontrolling interest in Egypt.    

Page 8