INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Income (Loss) Before Income Taxes

Income (loss) before income taxes was composed of the following:

	For the Year Ended December 31,
	2022		2021		2020
	(In millions)
U.S.	$	2,675	$	629	$	(4,581)
Foreign	3,059		1,262		(259)
Total	$	5,734	$	1,891	$	(4,840)

Schedule of Total Provision for Income Taxes

The total income tax provision consisted of the following:

	For the Year Ended December 31,
	2022		2021		2020
	(In millions)
Current income taxes:
Federal	$	1	$	16	$	(2)
State	11		—		—
Foreign	1,495		636		178
	1,507		652		176
Deferred income taxes:
Federal	—		—		—
Foreign	145		(74)		(112)
	145		(74)		(112)
Total	$	1,652	$	578	$	64

Schedule of Reconciliation of Tax of Income Before Income Taxes and Total Tax Expense

A reconciliation of the tax on the Company’s income (loss) before income taxes and total tax expense is shown below:

	For the Year Ended December 31,
	2022		2021		2020
	(In millions)
Income tax expense (benefit) at U.S. statutory rate	$	1,204	$	397	$	(1,016)
State income tax, less federal effect(1)	9		—		—
Taxes related to foreign operations	745		298		97
Tax credits	(4)		(10)		(13)
Net change in tax contingencies	1		16		1
Goodwill impairment	—		—		35
Valuation allowances(1)	(646)		(90)		965
Tax adjustments attributable to BCP Business Combination	126		—		—
Remeasurement of U.K. deferred tax liability	208		—		—
Tax attributable to Altus Preferred Unit limited partners	—		(34)		(16)
All other, net	9		1		11
	$	1,652	$	578	$	64

(1)The change in state valuation allowance is included as a component of state income tax.

Schedule of Net Deferred Tax Liability

The net deferred income tax liability consisted of the following as of December 31:

	2022		2021
	(In millions)
Deferred tax assets:
U.S. and state net operating losses	$	2,029	$	2,497
Capital losses	357		647
Foreign net operating losses	27		4
Tax credits and other tax incentives	26		24
Foreign tax credits	2,241		2,241
Accrued expenses and liabilities	156		152
Asset retirement obligation	672		712
Property and equipment	44		12
Investment in Altus Midstream LP	—		64
Net interest expense limitation	74		146
Lease liability	114		81
Decommissioning contingency for sold Gulf of Mexico properties	275		263
Other	—		1
Total deferred tax assets	6,015		6,844
Valuation allowance	(4,918)		(5,902)
Net deferred tax assets	1,097		942
Deferred tax liabilities:
Equity investments	1		2
Property and equipment	1,023		748
Right-of-use asset	110		77
Decommissioning security for sold Gulf of Mexico properties	148		164
Other	90		86
Total deferred tax liabilities	1,372		1,077
Net deferred income tax liability	$	275	$	135

Net deferred tax assets and liabilities are included in the consolidated balance sheet as of December 31 as follows:

	2022		2021
	(In millions)
Assets:
Deferred charges and other	$	39	$	13
Liabilities:
Income taxes	314		148
Net deferred income tax liability	$	275	$	135

Schedule of Valuation Allowance Against Certain Foreign Net Deferred Tax Assets and State Net Operating Losses

In 2022, 2021, and 2020, the Company’s valuation allowance decreased by $1.0 billion, decreased by $89 million, and increased by $1.0 billion, respectively, as detailed in the table below:

	2022		2021		2020
	(In millions)
Balance at beginning of year	$	5,902	$	5,991	$	4,959
State(1)	(111)		1		67
U.S.	(706)		(97)		960
Foreign	(167)		7		5
Balance at end of year	$	4,918	$	5,902	$	5,991

(1)Reported as a component of state income taxes.

Schedule of Net Operating Losses

On December 31, 2022, the Company had net operating losses as follows:

	Amount		Expiration
	(In millions)
U.S.	$	7,942	2027 - Indefinite
State	6,505		Various
Foreign	75		2028 - Indefinite

Schedule of Foreign Tax Credit Carryforward

On December 31, 2022, the Company had foreign tax credits as follows:

	Amount		Expiration
	(In millions)
Foreign tax credits	$	2,241	2025-2026

Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2022		2021		2020
	(In millions)
Balance at beginning of year	$	116	$	93	$	82
Additions based on tax positions related to prior year	—		16		—
Additions based on tax positions related to the current year	—		7		11
Reductions for tax positions of prior years	(27)		—		—
Balance at end of year	$	89	$	116	$	93

Schedule of Key Jurisdictions of Company's Earliest Open Tax Years

Apache’s earliest open tax years in its key jurisdictions are as follows:

Jurisdiction

U.S.	2014
Egypt	2005
U.K.	2021