-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, N9m2HA/8ocszIoUfaiT7/8+agDYTuI1218+nHflcuAdKoK0mWDXus2ujEXvtA65z m+Zgvcuo8q2WgU11OSvbhg== 0000950134-02-002435.txt : 20020415 0000950134-02-002435.hdr.sgml : 20020415 ACCESSION NUMBER: 0000950134-02-002435 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010331 FILED AS OF DATE: 20020322 FILER: COMPANY DATA: COMPANY CONFORMED NAME: APACHE CORP CENTRAL INDEX KEY: 0000006769 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 410747868 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-04300 FILM NUMBER: 02581858 BUSINESS ADDRESS: STREET 1: 2000 POST OAK BLVD STREET 2: ONE POST OAK CENTER STE 100 CITY: HOUSTON STATE: TX ZIP: 77056-4400 BUSINESS PHONE: 7132966000 MAIL ADDRESS: STREET 1: 2000 POST OAK BLVD STREET 2: STE 100 CITY: HOUSTON STATE: TX ZIP: 77056-4400 FORMER COMPANY: FORMER CONFORMED NAME: APACHE OIL CORP DATE OF NAME CHANGE: 19660830 10-Q/A 1 h95231e10-qa.txt APACHE CORPORATION - AMENDMENT NO.1 - 03/31/2001 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)
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 ============== ==============
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)
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 ============== ==============
The accompanying notes to consolidated financial statements are an integral part of this statement. 2 APACHE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (UNAUDITED)
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 ============== ==============
The accompanying notes to consolidated financial statements are an integral part of this statement. 3 APACHE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (UNAUDITED)
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 ============== ==============
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)
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 ============== ============ ============ ============ 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 ============ ============ ============ ==============
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:
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 ============ ============
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.
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
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:
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) =============== ===============
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) =============== ===============
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):
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) ============== ==============
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:
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 ========== ========== ========== ========== ========== ==========
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:
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
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:
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 =========== =========== =========== =========== =========== ===========
(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)
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 ============ ============== ============ ============== 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 ============ ================ ============
12 APACHE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS FOR THE QUARTER ENDED MARCH 31, 2000 (IN THOUSANDS)
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 ============ ============== ============ ============ 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 =============== ================ ============
13 APACHE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE QUARTER ENDED MARCH 31, 2001 (IN THOUSANDS)
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 $ -- ============ ============== ============ ============== 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 =============== ================ ============
14 APACHE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE QUARTER ENDED MARCH 31, 2000 (IN THOUSANDS)
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 $ -- $ -- $ -- ============ ============ ============== ============== 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 =============== ================ ============
15 APACHE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET AS OF MARCH 31, 2001 (IN THOUSANDS)
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 ============ ============== ============ ============== 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 =============== ================ ============
16 APACHE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2000 (IN THOUSANDS)
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 ============ ============== ============ ============== 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 =============== ================ ============
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) -----END PRIVACY-ENHANCED MESSAGE-----