SUPPLEMENTAL OIL AND GAS DISCLOSURES (Unaudited)

12 Months Ended

Dec. 31, 2022

Extractive Industries [Abstract]

SUPPLEMENTAL OIL AND GAS DISCLOSURES (Unaudited)

SUPPLEMENTAL OIL AND GAS DISCLOSURES (Unaudited)

Oil and Gas Operations

The following table sets forth revenue and direct cost information relating to the Company’s oil and gas exploration and production activities. The Company has no long-term agreements to purchase oil or gas production from foreign governments or authorities.

	United States		Egypt(1)		North Sea		Other International		Total(1)
	(In millions, except per boe)
2022
Oil and gas production revenues	$	4,144	$	3,521	$	1,558	$	—	$	9,223
Operating cost:
Depreciation, depletion, and amortization(2)	564		390		232		—		1,186
Asset retirement obligation accretion	34		—		82		—		116
Lease operating expenses	515		526		404		—		1,445
Gathering, processing, and transmission	315		22		43		—		380
Exploration expenses	24		84		35		162		305
Production taxes(3)	263		—		—		—		263
Income tax	510		1,100		495		—		2,105
	2,225		2,122		1,291		162		5,800
Results of operations	$	1,919	$	1,399	$	267	$	(162)	$	3,423
2021
Oil and gas production revenues	$	3,280	$	2,085	$	1,136	$	—	$	6,501
Operating cost:
Depreciation, depletion, and amortization(2)	511		477		267		—		1,255
Asset retirement obligation accretion	30		—		79		—		109
Lease operating expenses	391		469		383		—		1,243
Gathering, processing, and transmission	309		12		39		—		360
Exploration expenses	28		63		34		30		155
Production taxes(3)	188		—		—		—		188
Income tax	383		479		134		—		996
	1,840		1,500		936		30		4,306
Results of operations	$	1,440	$	585	$	200	$	(30)	$	2,195
2020
Oil and gas production revenues	$	1,764	$	1,390	$	883	$	—	$	4,037
Operating cost:
Depreciation, depletion, and amortization(2)	726		540		377		—		1,643
Asset retirement obligation accretion	32		—		73		—		105
Lease operating expenses	400		424		305		—		1,129
Gathering, processing, and transmission	291		38		50		—		379
Exploration expenses	168		63		28		15		274
Impairments related to oil and gas properties	3,938		374		7		—		4,319
Production taxes(3)	106		—		—		—		106
Income tax	(818)		(22)		17		—		(823)
	4,843		1,417		857		15		7,132
Results of operations	$	(3,079)	$	(27)	$	26	$	(15)	$	(3,095)

(1)Includes a noncontrolling interest in Egypt.

(2)Reflects DD&A of capitalized costs of oil and gas properties and, therefore, does not agree with DD&A reflected on Note 17—Business Segment Information.

(3)Reflects only amounts directly related to oil and gas producing properties and, therefore, does not agree with taxes other than income reflected on Note 17—Business Segment Information.

Costs Incurred in Oil and Gas Property Acquisitions, Exploration, and Development Activities

	United States		Egypt(2)		North Sea		Other International		Total(2)
	(In millions)
2022
Acquisitions:
Proved	$	596	$	3	$	—	$	—	$	599
Unproved	66		—		—		—		66
Exploration	4		169		61		311		545
Development	848		568		(57)		—		1,359
Costs incurred(1)	$	1,514	$	740	$	4	$	311	$	2,569
(1) Includes capitalized interest, asset retirement costs:
Capitalized interest	$	—	$	—	$	1	$	17	$	18
Asset retirement costs	79		—		(215)		—		(136)
2021
Acquisitions:
Proved	$	—	$	(157)	$	—	$	—	$	(157)
Unproved	9		20		—		—		29
Exploration	6		86		39		170		301
Development	545		404		135		2		1,086
Costs incurred(1)	$	560	$	353	$	174	$	172	$	1,259
(1) Includes capitalized interest and asset retirement costs, and Egypt modernization impacts as follows:
Capitalized interest	$	—	$	—	$	—	$	9	$	9
Asset retirement costs	130		—		19		—		149
Egypt PSC modernization impacts - Proved and Unproved	—		(145)		—		—		(145)
2020
Acquisitions:
Proved	$	—	$	7	$	—	$	—	$	7
Unproved	4		—		—		—		4
Exploration	8		102		68		150		328
Development	332		378		162		—		872
Costs incurred(1)	$	344	$	487	$	230	$	150	$	1,211
(1) Includes capitalized interest and asset retirement costs as follows:
Capitalized interest	$	—	$	—	$	—	$	3	$	3
Asset retirement costs	9		—		29		—		38
(2) Includes a noncontrolling interest in Egypt.

In 2021, in connection with APA’s agreement to enter into a new merged concession agreement with EGPC, as referenced in Note 1—Summary of Significant Accounting Policies, the Company recorded a reduction in proved properties totaling $165 million and an increase in unproved properties of $20 million, reflecting $247 million of incremental value due to the Company for the period between the effective date of April 1, 2021 and closing, partially offset by a $100 million signing bonus and $2 million of other post-closing adjustments.

Capitalized Costs

The following table sets forth the capitalized costs and associated accumulated depreciation, depletion, and amortization relating to the Company’s oil and gas acquisition, exploration, and development activities:

	United States		Egypt(1)		North Sea		Other International		Total(1)
	(In millions)
2022
Proved properties	$	19,638	$	13,014	$	8,945	$	—	$	41,597
Unproved properties	247		77		11		424		759
	19,885		13,091		8,956		424		42,356
Accumulated DD&A	(14,902)		(11,157)		(7,573)		—		(33,632)
	$	4,983	$	1,934	$	1,383	$	424	$	8,724
2021
Proved properties	$	18,732	$	12,373	$	8,954	$	—	$	40,059
Unproved properties	319		63		33		275		690
	19,051		12,436		8,987		275		40,749
Accumulated DD&A	(14,814)		(10,767)		(7,345)		—		(32,926)
	$	4,237	$	1,669	$	1,642	$	275	$	7,823

(1)Includes a noncontrolling interest in Egypt.

Oil and Gas Reserve Information

Proved oil and gas reserves are those quantities of natural gas, crude oil, condensate, and NGLs, which by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations. Estimated proved developed oil and gas reserves can be expected to be recovered through existing wells with existing equipment and operating methods. The Company reports all estimated proved reserves held under production-sharing arrangements utilizing the “economic interest” method, which excludes the host country’s share of reserves.

Estimated reserves that can be produced economically through application of improved recovery techniques are included in the “proved” classification when successful testing by a pilot project or the operation of an active, improved recovery program using reliable technology establishes the reasonable certainty for the engineering analysis on which the project or program is based. Economically producible means a resource that generates revenue that exceeds, or is reasonably expected to exceed, the costs of the operation. Reasonable certainty means a high degree of confidence that the quantities will be recovered. Reliable technology is a grouping of one or more technologies (including computational methods) that has been field-tested and has been demonstrated to provide reasonably certain results with consistency and repeatability in the formation being evaluated or in an analogous formation. In estimating its proved reserves, the Company uses several different traditional methods that can be classified in three general categories: (1) performance-based methods; (2) volumetric-based methods; and (3) analogy with similar properties. The Company will, at times, utilize additional technical analysis such as computer reservoir models, petrophysical techniques, and proprietary 3-D seismic interpretation methods to provide additional support for more complex reservoirs. Information from this additional analysis is combined with traditional methods outlined above to enhance the certainty of the Company’s reserve estimates.

There are numerous uncertainties inherent in estimating quantities of proved reserves and projecting future rates of production and timing of development expenditures. The reserve data in the following tables only represent estimates and should not be construed as being exact.

	Crude Oil and Condensate
	United States	Egypt(1)	North Sea	Total(1)
	(Thousands of barrels)
Proved developed reserves:
December 31, 2019	278,145	103,573	101,712	483,430
December 31, 2020	206,936	95,981	86,566	389,483
December 31, 2021	180,968	106,646	77,073	364,687
December 31, 2022	177,708	108,050	82,580	368,338
Proved undeveloped reserves:
December 31, 2019	46,716	10,831	10,049	67,596
December 31, 2020	25,516	11,228	7,273	44,017
December 31, 2021	18,168	11,003	5,757	34,928
December 31, 2022	22,239	8,557	2,873	33,669
Total proved reserves:
Balance December 31, 2019	324,861	114,404	111,761	551,026
Extensions, discoveries and other additions	17,858	17,855	5,275	40,988
Revisions of previous estimates	(69,247)	2,541	(4,756)	(71,462)
Production	(32,299)	(27,591)	(18,441)	(78,331)
Sales of minerals in-place	(8,721)	—	—	(8,721)
Balance December 31, 2020	232,452	107,209	93,839	433,500
Extensions, discoveries and other additions	17,869	13,390	2,288	33,547
Purchases of minerals in-place	126	—	—	126
Revisions of previous estimates	(4,479)	22,727	(60)	18,188
Production	(27,450)	(25,677)	(13,237)	(66,364)
Sales of minerals in-place	(19,382)	—	—	(19,382)
Balance December 31, 2021	199,136	117,649	82,830	399,615
Extensions, discoveries and other additions	9,776	7,580	2,616	19,972
Purchases of minerals in-place	16,362	—	—	16,362
Revisions of previous estimates	7,793	22,433	11,898	42,124
Production	(25,695)	(31,055)	(11,891)	(68,641)
Sales of minerals in-place	(7,425)	—	—	(7,425)
Balance December 31, 2022	199,947	116,607	85,453	402,007

(1)Includes proved reserves of 39 MMbbls, 39 MMbbls, 36 MMbbls, and 38 MMbbls as of December 31, 2022, 2021, 2020, and 2019, respectively, attributable to a noncontrolling interest in Egypt.

	Natural Gas Liquids
	United States	Egypt(1)	North Sea	Total(1)
	(Thousands of barrels)
Proved developed reserves:
December 31, 2019	158,794	667	2,317	161,778
December 31, 2020	150,599	716	2,053	153,368
December 31, 2021	164,172	446	2,059	166,677
December 31, 2022	158,745	—	2,230	160,975
Proved undeveloped reserves:
December 31, 2019	23,569	90	660	24,319
December 31, 2020	15,141	126	320	15,587
December 31, 2021	16,380	30	275	16,685
December 31, 2022	19,004	—	76	19,080
Total proved reserves:
Balance December 31, 2019	182,363	757	2,977	186,097
Extensions, discoveries and other additions	11,435	97	312	11,844
Revisions of previous estimates	(469)	264	(207)	(412)
Production	(27,133)	(276)	(709)	(28,118)
Sales of minerals in-place	(456)	—	—	(456)
Balance December 31, 2020	165,740	842	2,373	168,955
Extensions, discoveries and other additions	21,055	7	81	21,143
Purchases of minerals in-place	191	—	—	191
Revisions of previous estimates	22,724	(180)	318	22,862
Production	(24,175)	(193)	(438)	(24,806)
Sales of minerals in-place	(4,983)	—	—	(4,983)
Balance December 31, 2021	180,552	476	2,334	183,362
Extensions, discoveries and other additions	5,456	—	45	5,501
Purchases of minerals in-place	10,985	—	—	10,985
Revisions of previous estimates	9,991	(407)	333	9,917
Production	(22,895)	(69)	(406)	(23,370)
Sales of minerals in-place	(6,340)	—	—	(6,340)
Balance December 31, 2022	177,749	—	2,306	180,055

(1)  Includes proved reserves of 159 Mbbls, 281 Mbbls, and 252 Mbbls as of December 31, 2021, 2020, and 2019, respectively, attributable to a noncontrolling interest in Egypt.

	Natural Gas
	United States	Egypt(1)	North Sea	Total(1)
	(Millions of cubic feet)
Proved developed reserves:
December 31, 2019	945,938	433,382	106,329	1,485,649
December 31, 2020	1,052,756	409,035	68,159	1,529,950
December 31, 2021	1,237,461	464,826	76,155	1,778,442
December 31, 2022	1,166,218	399,502	66,292	1,632,012
Proved undeveloped reserves:
December 31, 2019	115,040	24,704	16,604	156,348
December 31, 2020	76,504	12,572	8,341	97,417
December 31, 2021	184,441	9,899	7,124	201,464
December 31, 2022	210,862	1,068	2,304	214,234
Total proved reserves:
Balance December 31, 2019	1,060,978	458,086	122,933	1,641,997
Extensions, discoveries and other additions	60,965	83,718	8,140	152,823
Revisions of previous estimates	215,166	(19,849)	(33,541)	161,776
Production	(205,594)	(100,348)	(21,032)	(326,974)
Sales of minerals in-place	(2,255)	—	—	(2,255)
Balance December 31, 2020	1,129,260	421,607	76,500	1,627,367
Extensions, discoveries and other additions	227,684	50,209	3,684	281,577
Purchases of minerals in-place	839	—	—	839
Revisions of previous estimates	279,610	99,143	17,171	395,924
Production	(192,523)	(96,234)	(14,076)	(302,833)
Sales of minerals in-place	(22,968)	—	—	(22,968)
Balance December 31, 2021	1,421,902	474,725	83,279	1,979,906
Extensions, discoveries and other additions	38,157	10,191	1,643	49,991
Purchases of minerals in-place	70,584	—	—	70,584
Revisions of previous estimates	92,599	45,725	(3,431)	134,893
Production	(172,752)	(130,071)	(12,895)	(315,718)
Sales of minerals in-place	(73,410)	—	—	(73,410)
Balance December 31, 2022	1,377,080	400,570	68,596	1,846,246

(1) Includes proved reserves of 134 Bcf, 158 Bcf, 141 Bcf, and 153 Bcf as of December 31, 2022, 2021, 2020, and 2019, respectively, attributable to a noncontrolling interest in Egypt.

	Total Equivalent Reserves
	United States	Egypt(1)	North Sea	Total(1)
	(Thousands barrels of oil equivalent)
Proved developed reserves:
December 31, 2019	594,595	176,470	121,751	892,816
December 31, 2020	532,994	164,870	99,979	797,843
December 31, 2021	551,384	184,563	91,825	827,772
December 31, 2022	530,823	174,633	95,859	801,315
Proved undeveloped reserves:
December 31, 2019	89,458	15,038	13,476	117,972
December 31, 2020	53,408	13,449	8,983	75,840
December 31, 2021	65,288	12,683	7,219	85,190
December 31, 2022	76,386	8,735	3,333	88,454
Total proved reserves:
Balance December 31, 2019	684,053	191,508	135,227	1,010,788
Extensions, discoveries and other additions	39,454	31,905	6,944	78,303
Revisions of previous estimates	(33,854)	(502)	(10,554)	(44,910)
Production	(93,698)	(44,592)	(22,655)	(160,945)
Sales of minerals in-place	(9,553)	—	—	(9,553)
Balance December 31, 2020	586,402	178,319	108,962	873,683
Extensions, discoveries and other additions	76,871	21,765	2,983	101,619
Purchases of minerals in-place	457	—	—	457
Revisions of previous estimates	64,847	39,071	3,120	107,038
Production	(83,712)	(41,909)	(16,021)	(141,642)
Sales of minerals in-place	(28,193)	—	—	(28,193)
Balance December 31, 2021	616,672	197,246	99,044	912,962
Extensions, discoveries and other additions	21,592	9,278	2,935	33,805
Purchases of minerals in-place	39,110	—	—	39,110
Revisions of previous estimates	33,217	29,647	11,659	74,523
Production	(77,382)	(52,803)	(14,446)	(144,631)
Sales of minerals in-place	(26,000)	—	—	(26,000)
Balance December 31, 2022	607,209	183,368	99,192	889,769

(1) Includes total proved reserves of 61 MMboe, 66 MMboe, 59 MMboe, and 64 MMboe as of December 31, 2022, 2021, 2020, and 2019, respectively, attributable to a noncontrolling interest in Egypt.

During 2022, the Company added approximately 34 MMboe from extensions, discoveries, and other additions. The Company recorded 22 MMboe of exploration and development adds in the U.S., comprising 9 MMboe in the Permian Basin, 8 MMboe in the Texas Gulf Coast, and 5 MMboe in the Delaware Basin. Drilling programs for the Permian and Delaware Basins include the Wolfcamp, Bone Spring and Spraberry with the Austin Chalk as the primary focus for the Texas Gulf Coast. International operations contributed 12 MMboe of exploration and development adds, with Egypt contributing 9 MMboe from onshore exploration and appraisal activity primarily in the Khalda Area and 3 MMboe from the North Sea. The Company had combined upward revisions of previously estimated reserves of 75 MMboe. Upward revisions related to miscellaneous changes accounted for 5 MMboe. Engineering and performance upward revisions accounted for 70 MMboe, with Egypt accounting for an increase of 43 MMboe, primarily the result of PSC modernization in Egypt. The North Sea contributed 9 MMboe of upward revisions from well performance and reactivations in both the Beryl and Forties programs. In the United States, the Company experienced positive revisions of 18 MMboe. The Company acquired 39 MMboe of proved reserves during 2022, primarily in the Delaware Basin. The Company also sold 26 MMboe of proved reserves associated with U.S. divestitures, primarily related to Permian Basin assets.

During 2021, the Company added approximately 102 MMboe from extensions, discoveries, and other additions. The Company recorded 77 MMboe of exploration and development adds in the U.S., comprising 59 MMboe in the Permian Basin with the remaining 18 MMboe in the Texas Gulf Coast. The Permian Basin drilling programs targeted the Woodford, Barnett, Bone Springs, and Spraberry, while the Texas Gulf Coast focused on the Austin Chalk. International operations contributed 25 MMboe of exploration and development adds, with Egypt contributing 22 MMboe from onshore exploration and appraisal activity primarily in the Khalda Area concession post-PSC modernization. The North Sea contributed 3 MMboe. The Company had combined upward revisions of previously estimated reserves of 107 MMboe. Upward revisions related to changes in product prices accounted for 85 MMboe. Engineering and performance upward revisions accounted for 22 MMboe, with the new merged concession agreement in Egypt resulting in an increase of 57 MMboe, partially offset by other downward revisions of 35 MMboe across all of the Company’s geographic areas of operation. The Company also sold 28 MMboe of proved reserves associated with U.S. divestitures, primarily related to Permian Basin assets.

As previously discussed, in December 2021, the Egyptian government signed into law an agreement to modernize and consolidate a majority of the Company’s Egypt PSCs. The impact of the consolidated PSC to proved reserves based on the modernized terms is an estimated increase of 53 MMboe and 4 MMboe in developed and undeveloped reserves, respectively, and approximately $750 million in discounted future net cash flows. Approximately 96 percent of the Company’s Egypt reserves are now consolidated within the modernized PSC. These estimates include Sinopec’s noncontrolling interest in Egypt.

During 2020, the Company added approximately 78 MMboe from extensions, discoveries, and other additions. The Company recorded 39 MMboe of exploration and development adds in the U.S., primarily in the Southern Midland Basin (26 MMboe) associated with the Wolfcamp and Spraberry drilling programs and the remainder in the Delaware Basin and Austin Chalk. The international operations contributed 39 MMboe of exploration and development adds during 2020, with Egypt contributing 32 MMboe from onshore exploration and appraisal activity primarily in the Khalda Area and Umbarka Area concessions. The North Sea contributed 7 MMboe from drilling success, primarily in the Beryl Field. The Company had combined downward revisions of previously estimated reserves of 45 MMboe. Downward revisions related to changes in product prices accounted for 70 MMboe, engineering and performance upward revisions accounted for 27 MMboe, and downward interest revisions accounted for 2 MMboe. The Company also sold 10 MMboe of proved reserves associated with U.S. divestitures, primarily related to Eastern Shelf and Magnet Withers/Pickett Ridge.

Approximately 10 percent of the Company’s year-end 2022 estimated proved developed reserves are classified as proved not producing. These reserves relate to zones that are either behind pipe, or that have been completed but not yet produced, or zones that have been produced in the past, but are not now producing because of mechanical reasons. These reserves are considered to be a lower tier of reserves than producing reserves because they are frequently based on volumetric calculations rather than performance data. Future production associated with behind pipe reserves is scheduled to follow depletion of the currently producing zones in the same wellbores. Additional capital may have to be spent to access these reserves. The capital and economic impact of production timing are reflected in this Note 18, under “Future Net Cash Flows.”

Future Net Cash Flows

Future cash inflows as of December 31, 2022, 2021, and 2020 were calculated using an unweighted arithmetic average of oil and gas prices in effect on the first day of each month in the respective year, except where prices are defined by contractual arrangements. Operating costs, production and ad valorem taxes and future development costs are based on current costs with no escalation. Future development costs include abandonment and dismantlement costs.

The following table sets forth unaudited information concerning future net cash flows for proved oil and gas reserves, net of income tax expense. Income tax expense has been computed using expected future tax rates and giving effect to tax deductions and credits available, under laws in effect as of December 31, 2022, and which relate to oil and gas producing activities. This information does not purport to present the fair market value of the Company’s oil and gas assets, but does present a standardized disclosure concerning possible future net cash flows that would result under the assumptions used.

	United States		Egypt(1)		North Sea		Total(1)
	(In millions)
2022
Cash inflows	$	31,577	$	12,819	$	10,147	$	54,543
Production costs	(10,763)		(2,086)		(3,241)		(16,090)
Development costs	(1,733)		(1,471)		(2,297)		(5,501)
Income tax expense	(1,575)		(2,729)		(2,631)		(6,935)
Net cash flows	17,506		6,533		1,978		26,017
10 percent discount rate	(6,811)		(1,400)		(204)		(8,415)
Discounted future net cash flows(2)	$	10,695	$	5,133	$	1,774	$	17,602
2021
Cash inflows	$	22,852	$	9,337	$	6,832	$	39,021
Production costs	(8,323)		(1,712)		(2,343)		(12,378)
Development costs	(1,632)		(1,402)		(2,533)		(5,567)
Income tax expense	(134)		(1,887)		(768)		(2,789)
Net cash flows	12,763		4,336		1,188		18,287
10 percent discount rate	(5,294)		(983)		350		(5,927)
Discounted future net cash flows(2)	$	7,469	$	3,353	$	1,538	$	12,360
2020
Cash inflows	$	12,537	$	5,560	$	4,122	$	22,219
Production costs	(6,244)		(1,704)		(2,388)		(10,336)
Development costs	(1,555)		(633)		(2,448)		(4,636)
Income tax expense	—		(1,096)		316		(780)
Net cash flows	4,738		2,127		(398)		6,467
10 percent discount rate	(1,829)		(437)		1,111		(1,155)
Discounted future net cash flows(2)	$	2,909	$	1,690	$	713	$	5,312

(1)Includes discounted future net cash flows of approximately $1.7 billion, $1.1 billion, and $563 million as of December 31, 2022, 2021, and 2020, respectively, attributable to a noncontrolling interest in Egypt.

(2)Estimated future net cash flows before income tax expense, discounted at 10 percent per annum, totaled approximately $16.9 billion, $14.9 billion, and $7.1 billion as of December 31, 2022, 2021, and 2020, respectively.

The following table sets forth the principal sources of change in the discounted future net cash flows:

	For the Year Ended December 31,
	2022		2021		2020
	(In millions)
Sales, net of production costs	$	(7,131)	$	(4,707)	$	(2,422)
Net change in prices and production costs	8,690		9,376		(5,753)
Discoveries and improved recovery, net of related costs	1,142		1,749		751
Change in future development costs	(343)		(839)		20
Previously estimated development costs incurred during the period	669		545		576
Revision of quantities	2,646		1,983		(418)
Purchases of minerals in-place	911		1		—
Accretion of discount	1,489		626		1,236
Change in income taxes	(2,467)		(1,583)		1,533
Sales of minerals in-place	(363)		(116)		(104)
Change in production rates and other	(1)		13		11
	$	5,242	$	7,048	$	(4,570)