DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

3 Months Ended

Mar. 31, 2014

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Commodity Derivative Instruments

As of March 31, 2014, Apache had the following commodity derivative positions:

			Fixed-Price Swaps
Production					MMBtu		Weighted Average
Period	Commodity	Settlement Index	Mbbls		(in 000’s)		Fixed Price
2014	Crude Oil	NYMEX WTI		17,218		—	$	90.80
2014	Crude Oil	Dated Brent		17,188		—		100.05
2014	Natural Gas	Various(1)		—		48,835		4.39

⁽¹⁾  The natural gas price represents a weighted-average of several contracts entered into on a per-million British thermal units (MMBtu) basis. These contracts are settled against NYMEX Henry Hub and various Inside FERC indices.

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the Company’s derivative assets and liabilities measured at fair value on a recurring basis:

	Fair Value Measurements Using
	Quoted Price in Active Markets (Level 1)		Significant Other Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value		Netting(1)			Carrying Amount
	(In millions)
March 31, 2014
Assets:
Commodity Derivative Instruments	$	—	$	2	$	—	$	2	$	(2	)	$	—
Liabilities:
Commodity Derivative Instruments		—		226		—		226		(2	)		224
December 31, 2013
Assets:
Commodity Derivative Instruments	$	—	$	3	$	—	$	3	$	(2	)	$	1
Liabilities:
Commodity Derivative Instruments		—		301		—		301		(2	)		299

⁽¹⁾  The derivative fair values are based on analysis of each contract on a gross basis, excluding the impact of netting agreements with counterparties.

Fair Values of Derivative Instruments Recorded in Consolidated Balance Sheet

The carrying value of the Company’s derivative assets and liabilities and their locations on the consolidated balance sheet are as follows:

	March 31, 2014		December 31, 2013
	(In millions)
Current Assets: Derivative instruments	$	—	$	1
Current Liabilities: Derivative instruments	$	224	$	299

Commodity Derivative Activity Recorded in Statement of Consolidated Operations

The following table summarizes the effect of derivative instruments on the Company’s statement of consolidated operations:

		For the Quarter Ended
	Loss on Derivatives	March 31,
	Recognized in Income	2014			2013
		(In millions)
Loss on cash flow hedges reclassified
from accumulated other comprehensive loss	Oil and Gas Production Revenues	$	—		$	(9	)
Derivatives not designated as cash flow hedges:
Realized loss		$	(96	)	$	(52	)
Unrealized gain (loss)			76			(48	)
Loss on derivatives not designated as cash flow hedges	Derivative instrument losses, net	$	(20	)	$	(100	)

Commodity Derivative Activity in Accumulated Other Comprehensive Loss

A reconciliation of the components of accumulated other comprehensive loss in the statement of consolidated changes in equity related to Apache’s cash flow hedges is presented in the table below. Derivative activity represents all of the reclassifications out of accumulated other comprehensive loss to income for the periods presented.

	For the Quarter Ended March 31,
	2014						2013
	Before tax			After tax			Before tax			After tax
	(In millions)
Unrealized gain (loss) on derivatives at beginning of period	$	1		$	1		$	(10	)	$	(6	)
Realized amounts reclassified into earnings		—			—			9			6
Net change in derivative fair value		(1	)		(1	)		(11	)		(8	)
Unrealized gain (loss) on derivatives at end of period	$	—		$	—		$	(12	)	$	(8	)