UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q/A
(AMENDMENT NO. 1)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 2001
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from ___________________ to _____________________
Commission File Number 1-4300
APACHE CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
Delaware 41-0747868
------------------------------- ----------------------
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
Suite 100, One Post Oak Central 77056-4400
2000 Post Oak Boulevard, Houston, TX ----------
- ---------------------------------------- (Zip Code)
(Address of Principal Executive Offices)
Registrant's Telephone Number, Including Area Code: (713) 296-6000
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES X NO
----- -----
Number of shares of Registrant's common stock, outstanding as of
March 31, 2001 .........................125,406,871
We are filing this Amendment No. 1 to our Quarterly Report on Form 10-Q for
the fiscal quarter ended March 31, 2001, in order to include the following
footnote number 6 to our unaudited consolidated financial statements. The
footnote provides certain consolidating information for our wholly-owned
subsidiaries. No restatement of the unaudited financial statements is required,
or being made, nor have any of the numbers in the unaudited financial statements
changed. The footnote merely sets forth some of the data used to prepare the
unaudited consolidated financial statements as required by Rule 3-10 of
Regulation S-X under the Securities Exchange Act of 1934.
Pursuant to Rule 12b-15 under the Securities Exchange Act of 1934, we are
including the complete text of our quarterly unaudited consolidated financial
statements, including the additional footnote.
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
APACHE CORPORATION AND SUBSIDIARIES
STATEMENT OF CONSOLIDATED OPERATIONS
(UNAUDITED)
<Table>
<Caption>
FOR THE QUARTER ENDED MARCH 31,
-------------- --------------
2001 2000
-------------- --------------
(In thousands, except per
common share data)
REVENUES:
Oil and gas production revenues $ 801,598 $ 446,117
Equity in income of affiliates -- 1,220
Other revenues (losses) (6,455) 854
-------------- --------------
795,143 448,191
-------------- --------------
OPERATING EXPENSES:
Depreciation, depletion and amortization 172,530 132,149
Lease operating costs 90,107 61,461
Severance and other taxes 21,293 8,966
Administrative, selling and other 20,376 14,649
Financing costs:
Interest expense 44,712 41,568
Amortization of deferred loan costs 502 1,279
Capitalized interest (15,085) (14,017)
Interest income (877) (540)
-------------- --------------
333,558 245,515
-------------- --------------
INCOME BEFORE INCOME TAXES 461,585 202,676
Provision for income taxes 179,384 85,680
-------------- --------------
INCOME BEFORE CHANGE IN ACCOUNTING PRINCIPLE 282,201 116,996
Cumulative effect of change in accounting principle, net of
income tax -- (7,539)
-------------- --------------
NET INCOME 282,201 109,457
Preferred stock dividends 4,908 5,264
-------------- --------------
INCOME ATTRIBUTABLE TO COMMON STOCK $ 277,293 $ 104,193
============== ==============
BASIC NET INCOME PER COMMON SHARE:
Before change in accounting principle $ 2.24 $ .98
Cumulative effect of change in accounting principle -- (.06)
-------------- --------------
$ 2.24 $ .92
============== ==============
DILUTED NET INCOME PER COMMON SHARE:
Before change in accounting principle $ 2.15 $ .96
Cumulative effect of change in accounting principle -- (.06)
-------------- --------------
$ 2.15 $ .90
============== ==============
</Table>
The accompanying notes to consolidated financial statements
are an integral part of this statement.
1
APACHE CORPORATION AND SUBSIDIARIES
STATEMENT OF CONSOLIDATED CASH FLOWS
(UNAUDITED)
<Table>
<Caption>
FOR THE QUARTER ENDED MARCH 31,
--------------------------------
2001 2000
-------------- --------------
(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 282,201 $ 109,457
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, depletion and amortization 172,530 132,149
Provision for deferred income taxes 98,920 52,075
Cumulative effect of change in accounting principle -- 7,539
Other 3,376 (432)
Other non-cash items 2,367 (748)
Changes in operating assets and liabilities:
(Increase) decrease in receivables 44,477 (18,552)
(Increase) decrease in advances to oil and gas ventures and other (20,672) (3,089)
(Increase) decrease in product inventory (107) (11,780)
(Increase) decrease in deferred charges and other (3,677) (1,305)
Increase (decrease) in payables 58,364 (5,269)
Increase (decrease) in accrued expenses 15,095 (13,528)
Increase (decrease) in advances from gas purchasers (3,547) (7,157)
Increase (decrease) in deferred credits and noncurrent liabilities (6,782) 2,882
-------------- --------------
Net cash provided by operating activities 642,545 242,242
-------------- --------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment (344,982) (173,305)
Non-cash portion of net oil and gas property additions 65,274 3,974
Acquisition of Fletcher subsidiaries (465,018) --
Acquisition of Repsol YPF properties (446,933) (119,525)
Proceeds from sales of oil and gas properties 128,663 16,752
Other, net (39,333) (1,730)
-------------- --------------
Net cash used in investing activities (1,102,329) (273,834)
-------------- --------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Long-term borrowings 1,176,159 173,677
Payments on long-term debt (645,800) (103,548)
Dividends paid (4,870) (12,926)
Payments to repurchase Series C Preferred Stock -- (2,613)
Common stock activity, net 4,153 6,072
Treasury stock activity, net 98 (17,727)
Cost of debt and equity transactions (294) (3)
-------------- --------------
Net cash provided by financing activities 529,446 42,932
-------------- --------------
NET INCREASE IN CASH AND CASH EQUIVALENTS 69,662 11,340
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 37,173 13,171
-------------- --------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 106,835 $ 24,511
============== ==============
</Table>
The accompanying notes to consolidated financial statements
are an integral part of this statement.
2
APACHE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<Table>
<Caption>
MARCH 31, DECEMBER 31,
2001 2000
-------------- --------------
(In thousands)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 106,835 $ 37,173
Receivables 553,666 506,723
Inventories 72,580 54,764
Advances to oil and gas ventures and other 56,697 31,360
Oil and gas derivative instruments 26,809 --
-------------- --------------
816,587 630,020
-------------- --------------
PROPERTY AND EQUIPMENT:
Oil and gas, on the basis of full cost accounting:
Proved properties 10,224,352 9,423,922
Unproved properties and properties under
development, not being amortized 1,062,326 977,491
Gas gathering, transmission and processing facilities 698,687 573,621
Other 152,636 119,590
-------------- --------------
12,138,001 11,094,624
Less: Accumulated depreciation, depletion and amortization (4,437,492) (4,282,162)
-------------- --------------
7,700,509 6,812,462
-------------- --------------
OTHER ASSETS:
Goodwill 197,200 --
Oil and gas derivative instruments 100,930 --
Deferred charges and other 41,068 39,468
-------------- --------------
$ 8,856,294 $ 7,481,950
============== ==============
</Table>
The accompanying notes to consolidated financial statements
are an integral part of this statement.
3
APACHE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<Table>
<Caption>
MARCH 31, DECEMBER 31,
2001 2000
-------------- --------------
(In thousands)
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $ 30,276 $ 25,000
Oil and gas derivative instruments 147,340 --
Accounts payable 377,518 259,120
Accrued operating expense 25,718 23,893
Accrued exploration and development 207,397 143,916
Accrued compensation and benefits 13,640 34,695
Accrued interest 31,629 25,947
Accrued income taxes 56,281 9,123
Other accrued expenses 14,637 31,653
-------------- --------------
904,436 553,347
-------------- --------------
LONG-TERM DEBT 2,718,341 2,193,258
-------------- --------------
DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES:
Income taxes 760,369 699,833
Advances from gas purchasers 149,559 153,106
Oil and gas derivative instruments 165,634 --
Other 125,190 127,766
-------------- --------------
1,200,752 980,705
-------------- --------------
SHAREHOLDERS' EQUITY:
Preferred stock, no par value, 5,000,000 shares authorized -
Series B, 5.68% Cumulative Preferred Stock,
100,000 shares issued and outstanding 98,387 98,387
Series C, 6.5% Conversion Preferred Stock, 138,482 shares
issued and outstanding 208,207 208,207
Common stock, $1.25 par, 215,000,000 shares authorized,
128,245,610 and 126,500,776 shares issued, respectively 160,307 158,126
Paid-in capital 2,276,993 2,173,183
Retained earnings 1,503,824 1,226,531
Treasury stock, at cost, 2,838,739 and 2,866,028 common shares,
respectively (68,899) (69,562)
Accumulated other comprehensive loss (146,054) (40,232)
-------------- --------------
4,032,765 3,754,640
-------------- --------------
$ 8,856,294 $ 7,481,950
============== ==============
</Table>
The accompanying notes to consolidated financial statements
are an integral part of this statement.
4
APACHE CORPORATION AND SUBSIDIARIES
STATEMENT OF CONSOLIDATED SHAREHOLDERS' EQUITY
(UNAUDITED)
<Table>
<Caption>
SERIES B SERIES C
COMPREHENSIVE PREFERRED PREFERRED COMMON PAID-IN
(In thousands) INCOME STOCK STOCK STOCK CAPITAL
-------------- -------------- ------------ ------------ ------------
BALANCE AT DECEMBER 31, 1999 $ 98,387 $ 210,490 $ 145,504 $ 1,717,027
Comprehensive income:
Net income $ 109,457 -- -- -- --
Currency translation adjustments (5,600) -- -- -- --
Unrealized gain on marketable
securities, net of applicable
income taxes of $449 732 -- -- -- --
--------------
Comprehensive income $ 104,589
==============
Dividends:
Preferred -- -- -- --
Common ($.07 per share) -- -- -- --
Common shares issued -- -- 230 5,844
Series C Preferred Stock purchased -- (2,283) -- --
Treasury shares purchased, net -- -- -- 213
-------------- ------------ ------------ ------------
BALANCE AT MARCH 31, 2000 $ 98,387 $ 208,207 $ 145,734 $ 1,723,084
============== ============ ============ ============
BALANCE AT DECEMBER 31, 2000 $ 98,387 $ 208,207 $ 158,126 $ 2,173,183
Comprehensive income:
Net income $ 282,201 -- -- -- --
Currency translation adjustments (56,515) -- -- -- --
Unrealized loss on marketable
securities, net of applicable
income tax benefit of $163 (316) -- -- -- --
Unrealized loss on derivatives, net
of income tax benefit of $31,427 (48,991) -- -- -- --
--------------
Comprehensive income $ 176,379
==============
Preferred dividends -- -- -- --
Common shares issued -- -- 2,181 102,836
Treasury shares issued, net -- -- -- 974
-------------- ------------ ------------ ------------
BALANCE AT MARCH 31, 2001 $ 98,387 $ 208,207 $ 160,307 $ 2,276,993
============== ============ ============ ============
<Caption>
ACCUMULATED
OTHER TOTAL
RETAINED TREASURY COMPREHENSIVE SHAREHOLDERS'
(In thousands) EARNINGS STOCK INCOME (LOSS) EQUITY
------------ ------------ ------------- --------------
BALANCE AT DECEMBER 31, 1999 $ 558,721 $ (52,256) $ (8,446) $ 2,669,427
Comprehensive income:
Net income 109,457 -- -- 109,457
Currency translation adjustments -- -- (5,600) (5,600)
Unrealized gain on marketable
securities, net of applicable
income taxes of $449 -- -- 732 732
Comprehensive income
Dividends:
Preferred (4,934) -- -- (4,934)
Common ($.07 per share) (7,961) -- -- (7,961)
Common shares issued -- -- -- 6,074
Series C Preferred Stock purchased (330) -- -- (2,613)
Treasury shares purchased, net -- (17,428) -- (17,215)
------------ ------------ ------------ --------------
BALANCE AT MARCH 31, 2000 $ 654,953 $ (69,684) $ (13,314) $ 2,747,367
============ ============ ============ ==============
BALANCE AT DECEMBER 31, 2000 $ 1,226,531 $ (69,562) $ (40,232) $ 3,754,640
Comprehensive income:
Net income 282,201 -- -- 282,201
Currency translation adjustments -- -- (56,515) (56,515)
Unrealized loss on marketable
securities, net of applicable
income tax benefit of $163 -- -- (316) (316)
Unrealized loss on derivatives, net
of income tax benefit of $31,427 -- -- (48,991) (48,991)
Comprehensive income
Preferred dividends (4,908) -- -- (4,908)
Common shares issued -- -- -- 105,017
Treasury shares issued, net -- 663 -- 1,637
------------ ------------ ------------ --------------
BALANCE AT MARCH 31, 2001 $ 1,503,824 $ (68,899) $ (146,054) $ 4,032,765
============ ============ ============ ==============
</Table>
The accompanying notes to consolidated financial statements
are an integral part of this statement.
5
APACHE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
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, and reflect all adjustments which 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 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. These financial statements should
be read in conjunction with the financial statements and the summary of
significant accounting policies and notes thereto included in the Company's most
recent annual report on Form 10-K.
Change in Accounting Principle - In December 2000, the staff of the
Securities and Exchange Commission (SEC) announced that commodity inventories
should be carried at cost, not market value, despite longstanding industry
practice. As a result, Apache changed its accounting for crude oil inventories
in the fourth quarter of 2000, retroactive to the beginning of the year, and
recognized a non-cash cumulative-effect charge to earnings effective January 1,
2000. Quarterly results for 2000 have been restated to reflect this change in
accounting.
1. ACQUISITIONS AND DIVESTITURES
Acquisitions - In June 2000, Apache completed the acquisition of long-lived
producing properties in the Permian Basin and South Texas from Collins & Ware,
Inc. (Collins & Ware) for approximately $320.7 million. The acquisition included
estimated proved reserves of approximately 83.7 million barrels of oil
equivalent (MMboe) as of the acquisition date. One-third of the reserves are
liquid hydrocarbons.
In August 2000, Apache completed the acquisition of a Delaware limited
liability company (LLC) owned by subsidiaries of Occidental Petroleum
Corporation (Occidental) and the related natural gas production for
approximately $321.2 million, plus future payments of approximately $44.0
million over four years. The Occidental properties are located in 32 fields on
93 blocks on the Outer Continental Shelf of the Gulf of Mexico. The acquisition
included estimated proved reserves of approximately 53.1 MMboe as of the
acquisition date.
In December 2000, Apache completed the acquisition of Canadian properties
from Canadian affiliates of Phillips Petroleum Company (Phillips) for
approximately $490.3 million. The acquisition included estimated proved reserves
of approximately 70.0 MMboe as of the acquisition date. The properties comprise
approximately 212,000 net developed acres and 275,000 net undeveloped acres, 786
square miles of 3-D seismic and 4,155 miles of 2-D seismic located in the Zama
area of Northwest Alberta. The assets also include three sour gas plants with a
total capacity of 150 million cubic feet (MMcf) per day, 13 compressor stations
and 150 miles of owned and operated gas gathering lines.
On March 22, 2001, Apache completed the acquisition of substantially all of
Repsol YPF's (Repsol) oil and gas concession interests in Egypt for
approximately $446.9 million in cash, subject to normal post closing
adjustments. The properties include interests in seven Western Desert
concessions and have estimated proved reserves of 68 MMboe as of the acquisition
date. The Company already holds interests in five of the seven concessions.
On March 27, 2001, Apache completed the acquisition of subsidiaries of
Fletcher Challenge Energy (Fletcher) for approximately $465.0 million in cash
and 1.64 million restricted shares of Apache common stock issued to Shell
Overseas Holdings (valued at $61.04 per share), subject to normal post closing
adjustments. The transaction included properties located in Canada's Western
Sedimentary Basin and in Argentina and estimated proved reserves of 118.8 MMboe
as of the acquisition date. Apache assumed a liability of $103.5 million
representing the fair value of derivative instruments and fixed-price commodity
contracts entered into by Fletcher.
6
The Fletcher and Repsol purchase prices were allocated to the assets
acquired and liabilities assumed based upon their fair values on the date of
acquisition, as follows:
<Table>
<Caption>
FLETCHER REPSOL
------------ ------------
(In thousands)
Value of properties acquired, including gathering and
transportation facilities $ 571,718 $ 299,933
Goodwill 107,200 90,000
Derivative instruments and fixed-price contracts (103,486) --
Common stock issued (100,325) --
Working capital acquired, net (8,202) 57,000
Deferred income tax liability (1,887) --
------------ ------------
Cash paid, net of cash acquired $ 465,018 $ 446,933
============ ============
</Table>
The following unaudited pro forma information shows the effect on the
Company's consolidated results of operations as if the Fletcher, Repsol, Collins
& Ware, Occidental and Phillips acquisitions occurred on January 1, 2000. The
pro forma information is based on numerous assumptions and is not necessarily
indicative of future results of operations.
<Table>
<Caption>
FOR THE QUARTER ENDED FOR THE QUARTER ENDED
MARCH 31, 2001 MARCH 31, 2000
----------------------- -----------------------
AS REPORTED PRO FORMA AS REPORTED PRO FORMA
----------- ---------- ----------- ----------
(In thousands, except per share data)
Revenues $ 795,143 $ 902,098 $ 448,191 $ 676,845
Net income 282,201 304,683 109,457 162,821
Preferred stock dividends 4,908 4,908 5,264 5,264
Income attributable to common stock 277,293 299,775 104,193 157,557
Net income per common share:
Basic $ 2.24 $ 2.39 $ .92 $ 1.26
Diluted 2.15 2.29 .90 1.23
Average common shares outstanding 123,880 125,432 113,837 124,681
</Table>
Divestitures - During the three months ended March 31, 2001, Apache sold
32.9 MMboe of proved reserves from largely marginal United States and Canadian
properties, collecting cash of $128.7 million.
2. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Apache periodically enters into commodity derivatives contracts to manage
its exposure to oil and gas price volatility. Commodity derivatives contracts,
which are usually placed with major financial institutions that the Company
believes are minimal credit risks, may take the form of futures contracts, swaps
or options. The oil and gas reference prices upon which these commodity
derivatives contracts are based reflect various market indices that have a high
degree of historical correlation with actual prices received by the Company.
Realized gains and losses from the Company's price risk management activities
are recognized in oil and gas production revenues when the associated production
occurs and the resulting cash flows are reported as cash flows from operating
activities.
Effective January 1, 2001, Apache adopted Statement of Financial Accounting
Standards (SFAS) No. 133, "Accounting for Derivative Instruments and Hedging
Activities". SFAS No. 133 establishes accounting and reporting standards
requiring that all derivative instruments (including derivative instruments
embedded in other contracts), as defined, be recorded in the balance sheet as
either an asset or liability measured at fair value and requires that changes in
fair value be recognized currently in earnings unless specific hedge accounting
criteria are met. Hedge accounting treatment allows unrealized gains and losses
to be deferred in other comprehensive income (for the effective portion of the
hedge) until such time as the forecasted transaction occurs, and requires that a
company formally document, designate, and assess the effectiveness of derivative
instruments that receive hedge
7
accounting treatment. Upon adoption, Apache formally documented and designated
all hedging relationships and verified that its hedging instruments are
effective in offsetting changes in actual prices received by the Company. Such
effectiveness is monitored at least quarterly and any ineffectiveness is
reported in other revenues (losses) in the statement of consolidated operations.
Apache's derivative positions break down into three general categories:
advances from gas purchasers, Apache hedging activity and derivatives inherited
from Fletcher. The fair values at transition and March 31, 2001 are summarized
below:
<Table>
<Caption>
TRANSITION
JANUARY 1, 2001 MARCH 31, 2001
--------------- ---------------
(In thousands)
Advances from Gas Purchasers:
Derivatives - asset $ 121,453 $ 127,739
Embedded derivatives (121,453) (127,739)
Apache Hedging Activity:
Fixed-price swaps $ (30,872) $ (27,914)
Zero-cost collars - time value (35,083) (44,593)
Zero-cost collars - intrinsic value (50,274) (12,694)
--------------- ---------------
$ (116,229) $ (85,201)
=============== ===============
</Table>
<Table>
<Caption>
ACQUISITION
CLOSING DATE
MARCH 27, 2001
---------------
Fletcher Acquisition:
Derivatives $ (89,401) $ (85,949)
Fixed-price physical contracts (14,085) (14,085)
--------------- ---------------
$ (103,486) $ (100,034)
=============== ===============
</Table>
On the transition date, January 1, 2001, Apache recognized a derivative
asset of $121.5 million reflecting the fair value of gas price swaps entered
into in connection with certain advance payments received from gas purchasers in
1998 and 1997. Apache also recognized a derivative liability of $121.5 million
as an embedded derivative in the contracts under which the advance payments were
received. The liability reflects the obligation to deliver gas at market prices
in excess of the contractual prices determined at the inception of these
transactions.
The balance of Apache's derivative instruments relate to cash flow hedges
on forecasted oil and gas sales, primarily entered into as the result of
Apache's acquisition hedging strategy. On the transition date, the fair value of
these derivative instruments represented a net liability of $116.2 million. The
Company incurred a charge to earnings for minor ineffectiveness of $1.3 million
during the first quarter of 2001. The time value of zero-cost collars at March
31, 2001 ($44.6 million) will not trigger any cash payments and will erode to
zero as the options expire over the course of the next 27 months.
In connection with the Fletcher acquisition, Apache assumed liabilities for
derivative instruments (fixed-price swaps and put options) and fixed-price
physical contracts entered into by Fletcher. The $103.5 million fair value on
the closing date was recorded as a cost of the Fletcher acquisition (see Note
1).
8
A reconciliation of the components of accumulated other comprehensive
income (loss) in the statement of consolidated shareholders' equity related to
Apache's derivative activities is presented in the table below (in thousands):
<Table>
<Caption>
GROSS AFTER-TAX
-------------- --------------
Cumulative effect of change in accounting principle $ (116,229) $ (71,287)
Reclassification of net realized losses into earnings 35,305 21,715
Net change in derivative fair value (825) (250)
Ineffectiveness recognized in earnings 1,331 831
-------------- --------------
Accumulated other comprehensive income (loss)
related to derivatives at March 31, 2001 $ (80,418) $ (48,991)
============== ==============
</Table>
3. NET INCOME PER COMMON SHARE
A reconciliation of the components of basic and diluted net income per
common share is presented in the table below:
<Table>
<Caption>
FOR THE QUARTER ENDED MARCH 31,
---------------------------------------------------------------------------
2001 2000
------------------------------------ ------------------------------------
INCOME SHARES PER SHARE INCOME SHARES PER SHARE
---------- ---------- ---------- ---------- ---------- ----------
(In thousands, except per share amounts)
BASIC:
Income attributable to common stock $ 277,293 123,880 $ 2.24 $ 104,193 113,837 $ .92
========== ==========
EFFECT OF DILUTIVE SECURITIES:
Stock options and other -- 1,216 -- 536
Series C Preferred Stock 3,488 5,676 3,844 5,738
---------- ---------- ---------- ----------
DILUTED:
Income attributable to common stock,
including assumed conversions $ 280,781 130,772 $ 2.15 $ 108,037 120,111 $ .90
========== ========== ========== ========== ========== ==========
</Table>
4. SUPPLEMENTAL CASH FLOW INFORMATION
NON-CASH INVESTING AND FINANCING ACTIVITIES
In January 2000, the Company acquired producing properties formerly owned
by a subsidiary of Repsol for cash, plus assumed liabilities of $29.8 million.
In March 2001, the Company acquired substantially all of Repsol's oil and
gas concession interests in Egypt for cash and the assumption of certain
non-cash liabilities. The accompanying financial statements include the non-cash
amounts detailed in Note 1.
In March 2001, the Company acquired subsidiaries of Fletcher for cash, 1.64
million shares of common stock and the assumption of certain non-cash
liabilities. The accompanying financial statements include the non-cash amounts
detailed in Note 1.
9
CASH PAID FOR INTEREST AND TAXES
The following table provides supplemental disclosure of cash flow
information:
<Table>
<Caption>
FOR THE QUARTER ENDED MARCH 31,
-------------------------------
2001 2000
-------------- --------------
(In thousands)
Cash paid during the period for:
Interest (net of amounts capitalized) $ 23,945 $ 23,096
Income taxes (net of refunds) 33,306 33,605
</Table>
5. BUSINESS SEGMENT INFORMATION
Apache has five reportable segments which are primarily in the business of
natural gas and crude oil exploration and production. The Company evaluates
performance based on profit or loss from oil and gas operations before income
and expense items incidental to oil and gas operations and income taxes.
Apache's reportable segments are managed separately because of their geographic
locations. Financial information by operating segment is presented below:
<Table>
<Caption>
OTHER
UNITED STATES CANADA EGYPT AUSTRALIA INTERNATIONAL TOTAL
------------- ----------- ----------- ----------- ------------- -----------
(IN THOUSANDS)
FOR THE QUARTER ENDED MARCH 31, 2001
Oil and Gas Production Revenues.......... $ 532,563 $ 142,970 $ 76,729 $ 49,336 $ -- $ 801,598
=========== =========== =========== =========== =========== ===========
Operating Income (Loss)(1)............... $ 353,465 $ 91,025 $ 45,744 $ 27,445 $ (11) $ 517,668
=========== =========== =========== =========== ===========
Other Income (Expense):
Other revenues (losses)............... (6,455)
Administrative, selling and other..... (20,376)
Financing costs, net.................. (29,252)
-----------
Income Before Income Taxes............... $ 461,585
===========
Total Assets............................. $ 4,209,502 $ 2,155,500 $ 1,443,559 $ 862,151 $ 185,582 $ 8,856,294
=========== =========== =========== =========== =========== ===========
FOR THE QUARTER ENDED MARCH 31, 2000
Oil and Gas Production Revenues.......... $ 240,604 $ 60,771 $ 97,674 $ 47,068 $ -- $ 446,117
=========== =========== =========== =========== =========== ===========
Operating Income (Loss)(1)............... $ 115,639 $ 32,766 $ 69,949 $ 25,199 $ (12) $ 243,541
=========== =========== =========== =========== ===========
Other Income (Expense):
Equity in income of affiliates........ 1,220
Other revenues........................ 854
Administrative, selling and other..... (14,649)
Financing costs, net.................. (28,290)
-----------
Income Before Income Taxes............... $ 202,676
===========
Total Assets............................. $ 2,945,541 $ 901,702 $ 917,133 $ 781,468 $ 160,666 $ 5,706,510
=========== =========== =========== =========== =========== ===========
</Table>
(1) Operating income (loss) consists of oil and gas production revenues less
depreciation, depletion and amortization (DD&A), lease operating costs and
severance and other taxes.
10
6. SUPPLEMENTAL GUARANTOR INFORMATION
Prior to 2001, Apache Finance Pty Ltd. (Apache Finance Australia) was a
finance subsidiary of Apache with no independent operations. In this capacity,
it issued approximately $270 million of publicly traded notes that are fully and
unconditionally guaranteed by Apache and, beginning in 2001, Apache North
America, Inc. The guarantors of Apache Finance Australia have joint and
severable liability. Similarly, Apache Finance Canada Corporation (Apache
Finance Canada) was also a finance subsidiary of Apache and had issued
approximately $300 million of publicly traded notes that were fully and
unconditionally guaranteed by Apache.
Generally, the issuance of publicly traded securities would subject those
subsidiaries to the reporting requirements of the Securities and Exchange
Commission (SEC). Since these subsidiaries had no independent operations and
qualified as "finance subsidiaries", they were exempted from these requirements.
During 2001, Apache contributed stock of its Australian and Canadian
operating subsidiaries to Apache Finance Australia and Apache Finance Canada,
respectively. As a result of these contributions, they no longer qualify as
finance subsidiaries. As allowed by the SEC rules, the following condensed
consolidating financial statements are provided as an alternative to filing
separate financial statements.
Each of the Company's presented in the condensed consolidating financial
statements has been fully consolidated in Apache Corporation's consolidated
financial statements. 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.
11
APACHE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE QUARTER ENDED MARCH 31, 2001
(IN THOUSANDS)
<Table>
<Caption>
APACHE
APACHE APACHE FINANCE APACHE
CORPORATION NORTH AMERICA AUSTRALIA FINANCE CANADA
------------ -------------- --------- --------------
REVENUES:
Oil and gas production revenues ........... $ 549,905 $ -- $ -- $ --
Equity in net income of affiliates ........ 69,121 2,047 3,040 16,764
Other revenues (losses) ................... 529 -- 3,078 --
------------ -------------- ------------ --------------
619,555 2,047 6,118 16,764
------------ -------------- ------------ --------------
OPERATING EXPENSES:
Depreciation, depletion and amortization .. 102,821 -- -- --
Lease operating costs ..................... 57,519 -- -- --
Severance and other taxes ................. 18,659 -- -- --
Administrative, selling and other ......... 18,033 -- -- --
Financing costs, net ...................... 17,384 -- 4,582 6,609
------------ -------------- ------------ --------------
214,416 -- 4,582 6,609
------------ -------------- ------------ --------------
INCOME (LOSS) BEFORE INCOME TAXES ............ 405,139 2,047 1,536 10,155
Provision (benefit) for income taxes ...... 122,938 -- (511) (2,882)
------------ -------------- ------------ --------------
NET INCOME ................................... 282,201 2,047 2,047 13,037
Preferred stock dividends ................. 4,908 -- -- --
------------ -------------- ------------ --------------
INCOME ATTRIBUTABLE TO COMMON STOCK .......... $ 277,293 $ 2,047 $ 2,047 $ 13,037
============ ============== ============ ==============
<Caption>
ALL OTHER
SUBSIDIARIES
OF APACHE RECLASSIFICATIONS
CORPORATION & ELIMINATIONS CONSOLIDATED
------------- ----------------- ------------
REVENUES:
Oil and gas production revenues ........... $ 420,526 $ (168,833) $ 801,598
Equity in net income of affiliates ........ (4,720) (86,252) --
Other revenues (losses) ................... (10,062) -- (6,455)
------------ ---------------- ------------
405,744 (255,085) 795,143
------------ ---------------- ------------
OPERATING EXPENSES:
Depreciation, depletion and amortization .. 69,709 -- 172,530
Lease operating costs ..................... 201,421 (168,833) 90,107
Severance and other taxes ................. 2,634 -- 21,293
Administrative, selling and other ......... 2,343 -- 20,376
Financing costs, net ...................... 677 -- 29,252
------------ ---------------- ------------
276,784 (168,833) 333,558
------------ ---------------- ------------
INCOME (LOSS) BEFORE INCOME TAXES ............ 128,960 (86,252) 461,585
Provision (benefit) for income taxes ...... 59,839 -- 179,384
------------ ---------------- ------------
NET INCOME ................................... 69,121 (86,252) 282,201
Preferred stock dividends ................. -- -- 4,908
------------ ---------------- ------------
INCOME ATTRIBUTABLE TO COMMON STOCK .......... $ 69,121 $ (86,252) $ 277,293
============ ================ ============
</Table>
12
APACHE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE QUARTER ENDED MARCH 31, 2000
(IN THOUSANDS)
<Table>
<Caption>
APACHE
APACHE APACHE FINANCE APACHE
CORPORATION NORTH AMERICA AUSTRALIA FINANCE CANADA
------------ -------------- ------------ --------------
REVENUES:
Oil and gas production revenues ............ $ 239,432 $ -- $ -- $ --
Equity in net income of affiliates ......... 66,857 -- -- 3,249
Other revenues (losses) .................... 183 -- -- --
------------ -------------- ------------ ------------
306,472 -- -- 3,249
------------ -------------- ------------ ------------
OPERATING EXPENSES:
Depreciation, depletion and amortization ... 79,142 -- -- --
Lease operating costs ...................... 39,082 -- -- --
Severance and other taxes .................. 6,853 -- -- --
Administrative, selling and other .......... 12,072 -- -- --
Financing costs, net ....................... 24,208 -- -- 1,799
------------ -------------- ------------ ------------
161,357 -- -- 1,799
------------ -------------- ------------ ------------
INCOME (LOSS) BEFORE INCOME TAXES ............. 145,115 -- -- 1,450
Provision (benefit) for income taxes ....... 28,119 -- -- (784)
------------ -------------- ------------ ------------
INCOME (LOSS) BEFORE CHANGE IN
ACCOUNTING PRINCIPLE ........................ 116,996 -- -- 2,234
Cumulative effect of change in accounting
principle, net of income tax ............. (7,539) -- -- --
------------ -------------- ------------ ------------
NET INCOME .................................... 109,457 -- -- 2,234
Preferred stock dividends .................. 5,264 -- -- --
------------ -------------- ------------ ------------
INCOME ATTRIBUTABLE TO COMMON STOCK ........... $ 104,193 $ -- $ -- $ 2,234
============ ============== ============ ============
<Caption>
ALL OTHER
SUBSIDIARIES
OF APACHE RECLASSIFICATIONS
CORPORATION & ELIMINATIONS CONSOLIDATED
--------------- ---------------- ------------
REVENUES:
Oil and gas production revenues ............ $ 281,344 $ (74,659) $ 446,117
Equity in net income of affiliates ......... (1,015) (67,871) 1,220
Other revenues (losses) .................... 671 -- 854
--------------- ---------------- ------------
281,000 (142,530) 448,191
--------------- ---------------- ------------
OPERATING EXPENSES:
Depreciation, depletion and amortization ... 53,007 -- 132,149
Lease operating costs ...................... 97,038 (74,659) 61,461
Severance and other taxes .................. 2,113 -- 8,966
Administrative, selling and other .......... 2,577 -- 14,649
Financing costs, net ....................... 2,283 -- 28,290
--------------- ---------------- ------------
157,018 (74,659) 245,515
--------------- ---------------- ------------
INCOME (LOSS) BEFORE INCOME TAXES ............. 123,982 (67,871) 202,676
Provision (benefit) for income taxes ....... 58,345 -- 85,680
--------------- ---------------- ------------
INCOME (LOSS) BEFORE CHANGE IN
ACCOUNTING PRINCIPLE ........................ 65,637 (67,871) 116,996
Cumulative effect of change in accounting
principle, net of income tax ............. (4,831) 4,831 (7,539)
--------------- ---------------- ------------
NET INCOME .................................... 60,806 (63,040) 109,457
Preferred stock dividends .................. -- -- 5,264
--------------- ---------------- ------------
INCOME ATTRIBUTABLE TO COMMON STOCK ........... $ 60,806 $ (63,040) $ 104,193
=============== ================ ============
</Table>
13
APACHE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE QUARTER ENDED MARCH 31, 2001
(IN THOUSANDS)
<Table>
<Caption>
APACHE
APACHE APACHE FINANCE APACHE
CORPORATION NORTH AMERICA AUSTRALIA FINANCE CANADA
------------ -------------- ------------ --------------
CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES ..................................... $ 564,946 $ -- $ (1,550) $ (8)
------------ -------------- ------------ --------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment ............ (150,819) -- -- --
Acquisitions ................................... -- -- -- --
Proceeds from sales of oil and gas properties .. 81,434 -- -- --
Investment in subsidiaries ..................... (894,794) (5,568) (5,568) (250,880)
Other, net ..................................... (1,782) -- -- --
------------ -------------- ------------ --------------
NET CASH USED IN INVESTING ACTIVITIES ............ (965,961) (5,568) (5,568) (250,880)
------------ -------------- ------------ --------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Long-term debt activity, net ................... 468,535 -- 1,552 250,888
Dividends paid ................................. (4,870) -- -- --
Common stock activity, net ..................... 4,153 5,568 5,568 --
Treasury stock activity, net ................... 98 -- -- --
Cost of debt and equity transactions ........... (294) -- -- --
------------ -------------- ------------ --------------
NET CASH PROVIDED BY FINANCING ACTIVITIES ........ 467,622 5,568 7,120 250,888
------------ -------------- ------------ --------------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ............................... $ 66,607 $ -- $ 2 $ --
CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR .............................. 5,257 -- -- --
------------ -------------- ------------ --------------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD .................................. $ 71,864 $ -- $ 2 $ --
============ ============== ============ ==============
<Caption>
ALL OTHER
SUBSIDIARIES
OF APACHE RECLASSIFICATIONS
CORPORATION & ELIMINATIONS CONSOLIDATED
--------------- ---------------- ------------
CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES ..................................... $ 79,157 $ -- $ 642,545
--------------- ---------------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment ............ (128,889) -- (279,708)
Acquisitions ................................... (911,951) -- (911,951)
Proceeds from sales of oil and gas properties .. 47,229 -- 128,663
Investment in subsidiaries ..................... (256,448) 1,413,258 --
Other, net ..................................... (37,551) -- (39,333)
--------------- ---------------- ------------
NET CASH USED IN INVESTING ACTIVITIES ............ (1,287,610) 1,413,258 (1,102,329)
--------------- ---------------- ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Long-term debt activity, net ................... 700,239 (890,855) 530,359
Dividends paid ................................. -- -- (4,870)
Common stock activity, net ..................... 511,267 (522,403) 4,153
Treasury stock activity, net ................... -- -- 98
Cost of debt and equity transactions ........... -- -- (294)
--------------- ---------------- ------------
NET CASH PROVIDED BY FINANCING ACTIVITIES ........ 1,211,506 (1,413,258) 529,446
--------------- ---------------- ------------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ............................... $ 3,053 $ -- $ 69,662
CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR .............................. 31,916 -- $ 37,173
--------------- ---------------- ------------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD .................................. $ 34,969 -- $ 106,835
=============== ================ ============
</Table>
14
APACHE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE QUARTER ENDED MARCH 31, 2000
(IN THOUSANDS)
<Table>
<Caption>
APACHE
APACHE APACHE FINANCE APACHE
CORPORATION NORTH AMERICA AUSTRALIA FINANCE CANADA
------------ ------------- -------------- --------------
CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES ..................................... $ 91,731 $ -- $ 1,076 $ 7,232
------------ ------------ -------------- --------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment ............ (91,468) -- -- --
Acquisitions ................................... (119,525) -- -- --
Proceeds from sales of oil and gas properties .. 242 -- -- --
Investment in subsidiaries ..................... 33,519 -- (1,114) (9,043)
Other, net ..................................... (1,189) -- -- --
------------ ------------ -------------- --------------
NET CASH USED IN INVESTING ACTIVITIES ............ (178,421) -- (1,114) (9,043)
------------ ------------ -------------- --------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Long-term debt activity, net ................... 110,083 -- 38 28
Dividends paid ................................. (4,870) -- -- --
Issuance (repurchase) of preferred stock ....... (2,613) -- -- --
Common stock activity, net ..................... 6,072 -- -- 1,783
Treasury stock activity, net ................... (17,727) -- -- --
Cost of debt and equity transactions ........... (3) -- -- --
------------ ------------ -------------- --------------
NET CASH PROVIDED BY FINANCING ACTIVITIES ........ 90,942 -- 38 1,811
------------ ------------ -------------- --------------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ............................... 4,252 -- -- --
CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR .............................. 1,542 -- -- --
------------ ------------ -------------- --------------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD .................................. $ 5,794 $ -- $ -- $ --
============ ============ ============== ==============
<Caption>
ALL OTHERS
SUBSIDIARIES
OF APACHE RECLASSIFICATIONS
CORPORATION & ELIMINATIONS CONSOLIDATED
--------------- ----------------- ------------
CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES ..................................... $ 142,203 $ -- $ 242,242
--------------- ---------------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property and equipment ............ (77,863) -- (169,331)
Acquisitions ................................... -- -- (119,525)
Proceeds from sales of oil and gas properties .. 16,510 -- 16,752
Investment in subsidiaries ..................... (1,785) (21,577) --
Other, net ..................................... (541) -- (1,730)
--------------- ---------------- ------------
NET CASH USED IN INVESTING ACTIVITIES ............ (63,679) (21,577) (273,834)
--------------- ---------------- ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Long-term debt activity, net ................... (75,320) 35,300 70,129
Dividends paid ................................. (8,056) -- (12,926)
Issuance (repurchase) of preferred stock ....... -- -- (2,613)
Common stock activity, net ..................... 11,940 (13,723) 6,072
Treasury stock activity, net ................... -- -- (17,727)
Cost of debt and equity transactions ........... -- -- (3)
--------------- ---------------- ------------
NET CASH PROVIDED BY FINANCING ACTIVITIES ........ (71,436) 21,577 42,932
--------------- ---------------- ------------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ............................... $ 7,088 $ -- $ 11,340
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD ............................ 11,629 -- 13,171
--------------- ---------------- ------------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 18,717 $ -- $ 24,511
=============== ================ ============
</Table>
15
APACHE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF MARCH 31, 2001
(IN THOUSANDS)
<Table>
<Caption>
APACHE
APACHE APACHE FINANCE APACHE
ASSETS CORPORATION NORTH AMERICA AUSTRALIA FINANCE CANADA
------------ -------------- -------------- --------------
CURRENT ASSETS:
Cash and cash equivalents .................... $ 71,864 $ -- $ 2 $ --
Receivables .................................. 211,022 -- -- --
Inventories .................................. 13,774 -- -- --
Advances to oil and gas ventures and others .. 22,112 -- -- --
Oil and gas derivative instruments ........... 26,809 -- -- --
------------ -------------- ------------ --------------
345,581 -- 2 --
------------ -------------- ------------ --------------
PROPERTY AND EQUIPMENT, NET .................... 3,646,689 -- -- --
------------ -------------- ------------ --------------
OTHER ASSETS:
Intercompany receivable, net ................. 1,721,335 -- -- (251,056)
Goodwill, net ................................ -- -- -- --
Equity in affiliates ......................... 1,440,496 160,081 431,794 775,341
Oil and gas derivative instruments ........... 100,930 -- -- --
Deferred charges and other ................... 27,972 -- -- 2,633
------------ -------------- ------------ --------------
$ 7,283,003 $ 160,081 $ 431,796 $ 526,918
============ ============== ============ ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt ......... $ 30,000 $ -- $ -- $ --
Accounts payable ............................. 111,596 -- -- --
Other accrued expenses ....................... 228,055 -- 3,611 6,863
Oil and gas derivative instruments ........... -- -- -- --
------------ -------------- ------------ --------------
369,651 -- 3,611 6,863
------------ -------------- ------------ --------------
LONG-TERM DEBT ................................. 1,946,385 -- 268,615 296,967
------------ -------------- ------------ --------------
DEFERRED CREDITS AND OTHER
NONCURRENT LIABILITIES:
Income taxes ................................. 492,833 -- (511) (45)
Advances from gas purchasers ................. 149,559 -- -- --
Oil and gas derivative instruments ........... 188,487 -- -- --
Other ........................................ 103,323 -- -- --
------------ -------------- ------------ --------------
934,202 -- (511) (45)
------------ -------------- ------------ --------------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY ........................... 4,032,765 160,081 160,081 223,133
------------ -------------- ------------ --------------
$ 7,283,003 $ 160,081 $ 431,796 $ 526,918
============ ============== ============ ==============
<Caption>
ALL OTHER
SUBSIDIARIES
OF APACHE RECLASSIFICATIONS
ASSETS CORPORATION & ELIMINATIONS CONSOLIDATED
--------------- ----------------- ------------
CURRENT ASSETS:
Cash and cash equivalents .................... $ 34,969 $ -- $ 106,835
Receivables .................................. 342,644 -- 553,666
Inventories .................................. 58,806 -- 72,580
Advances to oil and gas ventures and others .. 34,585 -- 56,697
Oil and gas derivative instruments ........... -- -- 26,809
--------------- ---------------- ------------
471,004 -- 816,587
--------------- ---------------- ------------
PROPERTY AND EQUIPMENT, NET .................... 4,053,820 -- 7,700,509
--------------- ---------------- ------------
OTHER ASSETS:
Intercompany receivable, net ................. (1,470,279) -- --
Goodwill, net ................................ 197,200 -- 197,200
Equity in affiliates ......................... (823,921) (1,983,791) --
Oil and gas derivative instruments ........... -- -- 100,930
Deferred charges and other ................... 10,463 -- 41,068
--------------- ---------------- ------------
$ 2,438,287 $ (1,983,791) $ 8,856,294
=============== ================ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt ......... $ 276 $ -- $ 30,276
Accounts payable ............................. 265,922 -- 377,518
Other accrued expenses ....................... 110,773 -- 349,302
Oil and gas derivative instruments ........... 147,340 -- 147,340
--------------- ---------------- ------------
524,311 -- 904,436
--------------- ---------------- ------------
LONG-TERM DEBT ................................. 206,374 -- 2,718,341
--------------- ---------------- ------------
DEFERRED CREDITS AND OTHER
NONCURRENT LIABILITIES:
Income taxes ................................. 268,092 -- 760,369
Advances from gas purchasers ................. -- -- 149,559
Oil and gas derivative instruments ........... (22,853) -- 165,634
Other ........................................ 21,867 -- 125,190
--------------- ---------------- ------------
267,106 -- 1,200,752
--------------- ---------------- ------------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY ........................... 1,440,496 (1,983,791) 4,032,765
--------------- ---------------- ------------
$ 2,438,287 $ (1,983,791) $ 8,856,294
=============== ================ ============
</Table>
16
APACHE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF DECEMBER 31, 2000
(IN THOUSANDS)
<Table>
<Caption>
APACHE
APACHE APACHE FINANCE APACHE
ASSETS CORPORATION NORTH AMERICA AUSTRALIA FINANCE CANADA
------------ -------------- ------------ --------------
CURRENT ASSETS:
Cash and cash equivalents ....................... $ 5,257 $ -- $ -- $ --
Receivables ..................................... 267,514 -- -- --
Inventories ..................................... 13,481 -- -- --
Advances to oil and gas ventures and others ..... 18,840 -- -- --
------------ -------------- ------------ --------------
305,092 -- -- --
------------ -------------- ------------ --------------
PROPERTY AND EQUIPMENT, NET ....................... 3,643,439 -- -- --
------------ -------------- ------------ --------------
OTHER ASSETS:
Intercompany receivable, net .................... 1,081,360 -- 269,177 (176)
Equity in affiliates ............................ 1,205,257 -- -- 321,417
Deferred charges and other ...................... 26,565 -- 1,870 2,656
------------ -------------- ------------ --------------
$ 6,261,713 $ -- $ 271,047 $ 323,897
============ ============== ============ ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt ............ $ 25,000 $ -- $ -- $ --
Accounts payable ................................ 102,766 -- -- --
Other accrued expenses .......................... 181,968 -- 2,599 1,103
------------ -------------- ------------ --------------
309,734 -- 2,599 1,103
------------ -------------- ------------ --------------
LONG-TERM DEBT .................................... 1,482,850 -- 268,448 296,959
------------ -------------- ------------ --------------
DEFERRED CREDITS AND OTHER
NONCURRENT LIABILITIES:
Income taxes .................................... 451,380 -- -- (57)
Advances from gas purchasers .................... 153,106 -- -- --
Other ........................................... 110,003 -- -- --
------------ -------------- ------------ --------------
714,489 -- -- (57)
------------ -------------- ------------ --------------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY .............................. 3,754,640 -- -- 25,892
------------ -------------- ------------ --------------
$ 6,261,713 $ -- $ 271,047 $ 323,897
============ ============== ============ ==============
<Caption>
ALL OTHER
SUBSIDIARIES
OF APACHE RECLASSIFICATIONS
ASSETS CORPORATION & ELIMINATIONS CONSOLIDATED
--------------- ----------------- ------------
CURRENT ASSETS:
Cash and cash equivalents ....................... $ 31,916 $ -- $ 37,173
Receivables ..................................... 239,209 -- 506,723
Inventories ..................................... 41,283 -- 54,764
Advances to oil and gas ventures and others ..... 12,520 -- 31,360
--------------- ---------------- ------------
324,928 -- 630,020
--------------- ---------------- ------------
PROPERTY AND EQUIPMENT, NET ....................... 3,169,023 -- 6,812,462
--------------- ---------------- ------------
OTHER ASSETS:
Intercompany receivable, net .................... (1,350,361) -- --
Equity in affiliates ............................ (295,525) (1,231,149) --
Deferred charges and other ...................... 8,377 -- 39,468
--------------- ---------------- ------------
$ 1,856,442 $ (1,231,149) $ 7,481,950
=============== ================ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt ............ $ -- $ -- $ 25,000
Accounts payable ................................ 156,354 -- 259,120
Other accrued expenses .......................... 83,557 -- 269,227
--------------- ---------------- ------------
239,911 -- 553,347
--------------- ---------------- ------------
LONG-TERM DEBT .................................... 145,001 -- 2,193,258
--------------- ---------------- ------------
DEFERRED CREDITS AND OTHER
NONCURRENT LIABILITIES:
Income taxes .................................... 248,510 -- 699,833
Advances from gas purchasers .................... -- -- 153,106
Other ........................................... 17,763 -- 127,766
--------------- ---------------- ------------
266,273 -- 980,705
--------------- ---------------- ------------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY .............................. 1,205,257 (1,231,149) 3,754,640
--------------- ---------------- ------------
$ 1,856,442 $ (1,231,149) $ 7,481,950
=============== ================ ============
</Table>
17
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this amendment to be signed
on its behalf by the undersigned thereunto duly authorized.
APACHE CORPORATION
Dated: March 21, 2002 /s/ Roger B. Plank
----------------------------------------------------
Roger B. Plank
Executive Vice President and Chief Financial Officer
Dated: March 21, 2002 /s/ Thomas L. Mitchell
----------------------------------------------------
Thomas L. Mitchell
Vice President and Controller
(Chief Accounting Officer)