DEBT (Tables)

12 Months Ended

Dec. 31, 2012

Debt for Apache and Subsidiaries

The following table presents the carrying value of the Company’s debt at December 31, 2012 and 2011:

	December 31,
	2012			2011
	(In millions)
U.S.:
Money market lines of credit	$	13		$	—
Commercial paper		489			—
6.25% notes due 2012(1)		—			400
5.25% notes due 2013(1)		500			500
6.0% notes due 2013(1)		400			400
5.625% notes due 2017(1)		500			500
1.75% notes due 2017(1)		400			—
6.9% notes due 2018(1)		400			400
7.0% notes due 2018		150			150
7.625% notes due 2019		150			150
3.625% notes due 2021(1)		500			500
3.25% notes due 2022(1)		1,100			—
2.625% notes due 2023(1)		1,200			—
7.7% notes due 2026		100			100
7.95% notes due 2026		180			180
6.0% notes due 2037(1)		1,000			1,000
5.1% notes due 2040(1)		1,500			1,500
5.25% notes due 2042(1)		500			500
4.75% notes due 2043(1)		1,500			—
4.25% notes due 2044(1)		800			—
7.375% debentures due 2047		150			150
7.625% debentures due 2096		150			150
		11,682			6,580
Subsidiary and other obligations:
Argentina overdraft lines of credit		69			31
Canada lines of credit		9			—
Apache Finance Canada 4.375% notes due 2015(1)		350			350
Notes due in 2016 and 2017		1			1
Apache Finance Canada 7.75% notes due 2029		300			300
		729			682
Debt before unamortized discount		12,411			7,262
Unamortized discount		(66	)		(46	)
Total debt	$	12,345		$	7,216
Current maturities	$	(990	)	$	(431	)
Long-term debt	$	11,355		$	6,785

(1) These notes are redeemable, as a whole or in part, at Apache’s option, subject to a make-whole premium. The remaining notes and debentures are not redeemable.

Schedule of Long Term Debt by Maturity

Debt maturities as of December 31, 2012, excluding discounts, are as follows:

	(In millions)
2013	$	991
2014		—
2015		350
2016		1
2017		1,389
Thereafter		9,680
Total Debt, excluding discounts	$	12,411

Non-Recurring Fair Value Measurement

Apache uses a market approach to determine the fair value of its fixed-rate debt using estimates provided by an independent investment financial data services firm, which is a Level 2 fair value measurement.

	December 31, 2012				December 31, 2011
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(In millions)
Money market lines of credit	$	91	$	91	$	31	$	31
Commercial paper		489		489		—		—
Notes and debentures		11,765		13,340		7,185		8,673
Total Debt	$	12,345	$	13,920	$	7,216	$	8,704

Financing Costs, Net

Financing costs incurred during the periods are composed of the following:

	For the Year Ended December 31,
	2012			2011			2010
	(In millions)
Interest expense	$	509		$	433		$	345
Amortization of deferred loan costs		7			5			17
Capitalized interest		(334	)		(263	)		(120	)
Interest income		(17	)		(17	)		(13	)
Financing costs, net	$	165		$	158		$	229