LETTER 1 filename1.txt February 22, 2006 Thomas L. Mitchell, Vice President and Controller Apache Corporation One Post Oak Central 2000 Post Oak Boulevard, Suite 100 Houston, TX 77056-4400 Re: Apache Corporation Form 10-K for the Year Ended December 31, 2004 Filed March 15, 2005 File No. 001-04300 Response Letter dated January 20, 2006 Dear Mr. Mitchell: We have reviewed the above filings and have the following comments. We have limited our review of your filings to those issues we have addressed in our comments. In some of our comments, we may ask you to provide us with information so we may better understand your disclosure. After reviewing this information, we may raise additional comments. Form 10-K for the Year Ended December 31, 2004 Statement of Consolidated Cash Flows, page F-5 1. We note your response to the comment number one from out letter dated November 9, 2005. We understand the "Other" caption consists of Excess Tax benefits of Stock Options and Derivative Activity with Financing Elements representing 12% and 9%, respectively of the Net Cash Provided by (Used in) Financing Activities. Please consider separately disclosing these items in future filings. Anadarko Petroleum, page F-16 2. We note your response to comment number two in our letter dated January 5, 2006. As communicated to you during our conference call on February 22, 2006, we believe the market premium associated with the VPP should be reflected as an adjustment to the full cost pool pursuant to Rule 4-10 (c)(6)(iv). You represented to us that your current accounting practice effectively results in the same accounting presentation. Please monitor the accounting results from the two practices and assess the materiality of any differences in your future filings. Closing Comments Please respond to these comments within 10 business days or tell us when you will provide us with a response. Please furnish a letter that keys your responses to our comments and provides any requested information. Detailed letters greatly facilitate our review. Please understand that we may have additional comments after reviewing your responses to our comments. You may contact Yong Choi at (202) 551-3758 if you have questions regarding comments on the financial statements and related matters. Please contact me at (202) 551-3684 with any other questions. Sincerely, April Sifford Branch Chief ?? ?? ?? ?? Mr. Mitchell Apache Corporation February 22, 2006 Page 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549-7010 DIVISION OF CORPORATION FINANCE MAIL STOP 7010