Capital Stock

9 Months Ended

Sep. 30, 2011

Capital Stock [Abstract]

CAPITAL STOCK

8. CAPITAL STOCK

Net Income per Common Share

     A reconciliation of the components of basic and diluted net income per common share for the quarters and nine-month periods ended September 30, 2011 and 2010 is presented in the table below.

	For the Quarter Ended September 30,
	2011						2010
	Income		Shares		Per Share		Income		Shares		Per Share
			(In millions, except per share amounts)
Basic:
Income attributable to common stock	$	983		384	$	2.56	$	765		357	$	2.14
Effect of Dilutive Securities:
Mandatory Convertible Preferred Stock		19		14				13		9
Stock options and other		—		2				—		1
Diluted:
Income attributable to common stock, including assumed conversions	$	1,002		400	$	2.50	$	778		367	$	2.12

	For the Nine Months Ended September 30,
	2011						2010
	Income		Shares		Per Share		Income		Shares		Per Share
			(In millions, except per share amounts)
Basic:
Income attributable to common stock	$	3,338		384	$	8.70	$	2,330		344	$	6.78
Effect of Dilutive Securities:
Mandatory Convertible Preferred Stock		57		14				13		3
Stock options and other		—		2				—		2
Diluted:
Income attributable to common stock, including assumed conversions	$	3,395		400	$	8.49	$	2,343		349	$	6.72

     The diluted earnings per share calculation excludes options and restricted stock units that were anti-dilutive totaling 3.3 million and 3.7 million for the quarters ending September 30, 2011 and 2010, and 2.4 million and 3.2 million for the nine months ended September 30, 2011 and 2010, respectively.

Issuance of Common and Preferred Shares

     In July 2010, in conjunction with Apache’s acquisition of properties from BP, the Company issued 26.45 million shares of common stock, as well as 25.3 million depositary shares, each representing a 1/20^th interest in a share of Apache’s 6.00% Mandatory Convertible Preferred Stock, Series D, or 1.265 million Preferred Shares. Each outstanding Preferred Share will, on August 1, 2013, automatically convert into a minimum of 9.164 or a maximum of 11.364 shares of Apache common stock depending on an average underlying price of the common stock immediately preceding the conversion.

     In November 2010, in connection with the Mariner merger, Apache issued 17.3 million shares of common stock in exchange for Mariner common and restricted stock. For further discussion of the BP acquisitions and Mariner merger, please see Note 2 — Acquisitions and Divestitures of this Form 10-Q.

     On May 5, 2011, Apache stockholders approved amendments to the Certificate of Incorporation increasing the number of common shares authorized for issuance from 430 million to 860 million and increasing the number of preferred shares authorized for issuance from five million to 10 million.

Common and Preferred Stock Dividends

     For the quarter and nine months ended September 30, 2011, Apache paid $58 million and $173 million, respectively, in dividends on its common stock. For the quarter and nine months ended September 30, 2010, the Company paid $51 million and $152 million, respectively.

     For the quarter and nine months ended September 30, 2011, Apache paid a total of $19 million and $57 million, respectively, in dividends on its Series D Preferred Stock issued in July 2010. Dividends of $13 million were accrued on the Series D Preferred Stock in the third quarter of 2010 and paid in November 2010.