Supplemental Guarantor Information

9 Months Ended

Sep. 30, 2015

Guarantees [Abstract]

Supplemental Guarantor Information

10. SUPPLEMENTAL GUARANTOR INFORMATION

In December 1999, Apache Finance Canada issued approximately $300 million of publicly-traded notes due in 2029. The notes are fully and unconditionally guaranteed by Apache. The following condensed consolidating financial statements are provided as an alternative to filing separate financial statements.

Apache Finance Canada is 100 percent owned by Apache Corporation. As such, these condensed consolidating financial statements should be read in conjunction with Apache’s consolidated financial statements and the notes thereto, of which this note is an integral part.

APACHE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Quarter Ended September 30, 2015

	Apache Corporation			Apache Finance Canada			All Other Subsidiaries of Apache Corporation			Reclassifications & Eliminations		Consolidated
	(In millions)
REVENUES AND OTHER:
Oil and gas production revenues	$	344		$	—		$	1,228		$	—	$	1,572
Equity in net income of affiliates		(1,759	)		(520	)		—			2,279		—
Other		(63	)		14			(27	)		—		(76	)
		(1,478	)		(506	)		1,201			2,279		1,496
OPERATING EXPENSES:
Depreciation, depletion, and amortization		4,195			—			2,434			—		6,629
Asset retirement obligation accretion		4			—			33			—		37
Lease operating expenses		97			—			353			—		450
Gathering and transportation		9			—			49			—		58
Taxes other than income		30			—			74			—		104
Impairments		110			—			257			—		367
General and administrative		76			—			10			—		86
Financing costs, net		112			10			(15	)		—		107
		4,633			10			3,195			—		7,838
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(6,111	)		(516	)		(1,994	)		2,279		(6,342	)
Provision (benefit) for income taxes		(463	)		4			(332	)		—		(791	)
NET INCOME (LOSS) FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST		(5,648	)		(520	)		(1,662	)		2,279		(5,551	)
Net income (loss) from discontinued operations, net of tax		(7	)		—			(88	)		—		(95	)
NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST		(5,655	)		(520	)		(1,750	)		2,279		(5,646	)
Net income attributable to noncontrolling interest		—			—			9			—		9
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK	$	(5,655	)	$	(520	)	$	(1,759	)	$	2,279	$	(5,655	)

APACHE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Quarter Ended September 30, 2014

	Apache Corporation			Apache Finance Canada		All Other Subsidiaries of Apache Corporation			Reclassifications & Eliminations			Consolidated
	(In millions)
REVENUES AND OTHER:
Oil and gas production revenues	$	882		$	—	$	2,299		$	—		$	3,181
Equity in net income (loss) of affiliates		491			5		1			(497	)		—
Derivative instrument gains (losses), net		320			—		(47	)		—			273
Other		(34	)		14		5			2			(13	)
		1,659			19		2,258			(495	)		3,441
OPERATING EXPENSES:
Depreciation, depletion, and amortization		1,914			—		821			—			2,735
Asset retirement obligation accretion		8			—		31			—			39
Lease operating expenses		137			—		451			—			588
Gathering and transportation		15			—		52			—			67
Taxes other than income		67			—		57			—			124
General and administrative		89			—		20			2			111
Transaction, reorganization, and separation		34			—		—			—			34
Financing costs, net		45			11		4			—			60
		2,309			11		1,436			2			3,758
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(650	)		8		822			(497	)		(317	)
Provision (benefit) for income taxes		678			2		88			—			768
NET INCOME (LOSS) FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST		(1,328	)		6		734			(497	)		(1,085	)
Net income from discontinued operations, net of tax		—			—		(156	)		—			(156	)
NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST		(1,328	)		6		578			(497	)		(1,241	)
Net income attributable to noncontrolling interest		—			—		89			—			89
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK	$	(1,328	)	$	6	$	489		$	(497	)	$	(1,330	)

APACHE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Nine Months Ended September 30, 2015

	Apache Corporation			Apache Finance Canada			All Other Subsidiaries of Apache Corporation			Reclassifications & Eliminations		Consolidated
	(In millions)
REVENUES AND OTHER:
Oil and gas production revenues	$	1,143		$	—		$	4,019		$	—	$	5,162
Equity in net income (loss) of affiliates		(4,831	)		(1,567	)		—			6,398		—
Other		(113	)		40			(5	)		19		(59	)
		(3,801	)		(1,527	)		4,014			6,417		5,103
OPERATING EXPENSES:
Depreciation, depletion, and amortization		14,040			—			7,713			—		21,753
Asset retirement obligation accretion		11			—			98			—		109
Lease operating expenses		329			—			1,069			—		1,398
Gathering and transportation		25			—			138			—		163
Taxes other than income		97			—			135			—		232
Impairments		110			—			257			—		367
General and administrative		214			—			46			19		279
Transaction, reorganization, and separation		120			—			—			—		120
Financing costs, net		235			31			(26	)		—		240
		15,181			31			9,430			19		24,661
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		(18,982	)		(1,558	)		(5,416	)		6,398		(19,558	)
Provision (benefit) for income taxes		(3,255	)		9			(1,425	)		—		(4,671	)
NET INCOME (LOSS) FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST		(15,727	)		(1,567	)		(3,991	)		6,398		(14,887	)
Net loss from discontinued operations, net of tax		(179	)		—			(780	)		—		(959	)
NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST		(15,906	)		(1,567	)		(4,771	)		6,398		(15,846	)
Net income attributable to noncontrolling interest		—			—			60			—		60
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK	$	(15,906	)	$	(1,567	)	$	(4,831	)	$	6,398	$	(15,906	)

APACHE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

For the Nine Months Ended September 30, 2014

	Apache Corporation			Apache Finance Canada		All Other Subsidiaries of Apache Corporation			Reclassifications & Eliminations			Consolidated
	(In millions)
REVENUES AND OTHER:
Oil and gas production revenues	$	2,669		$	—	$	7,374		$	—		$	10,043
Equity in net income (loss) of affiliates		1,233			58		6			(1,297	)		—
Derivative instrument gains (losses), net		175			—		(96	)		—			79
Other		(106	)		41		56			5			(4	)
		3,971			99		7,340			(1,292	)		10,118
OPERATING EXPENSES:
Depreciation, depletion, and amortization		2,598			—		2,595			—			5,193
Asset retirement obligation accretion		23			—		92			—			115
Lease operating expenses		386			—		1,310			—			1,696
Gathering and transportation		43			—		160			—			203
Taxes other than income		193			—		289			—			482
General and administrative		276			—		51			5			332
Transaction, reorganization, and separation		66			—		—			—			66
Financing costs, net		118			31		8			—			157
		3,703			31		4,505			5			8,244
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		268			68		2,835			(1,297	)		1,874
Provision for income taxes		730			4		918			—			1,652
NET INCOME (LOSS) FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST		(462	)		64		1,917			(1,297	)		222
Net loss from discontinued operations, net of tax		(127	)		—		(389	)		—			(516	)
NET INCOME (LOSS) INCLUDING NONCONTROLLING INTEREST		(589	)		64		1,528			(1,297	)		(294	)
Net income attributable to noncontrolling interest		—			—		295			—			295
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK	$	(589	)	$	64	$	1,233		$	(1,297	)	$	(589	)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK (1)	$	(590	)	$	64	$	1,233		$	(1,297	)	$	(590	)

⁽¹⁾  Comprehensive income (loss) activity is recorded on the Apache Corporation entity and consists of derivative instrument reclassifications and changes in fair value as reflected on our statement of consolidated comprehensive income.

APACHE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Nine Months Ended September 30, 2015

	Apache Corporation			Apache Finance Canada			All Other Subsidiaries of Apache Corporation			Reclassifications & Eliminations			Consolidated
	(In millions)
CASH PROVIDED BY (USED IN) CONTINUING OPERATING ACTIVITIES	$	77		$	(25	)	$	2,520		$	—		$	2,572
CASH PROVIDED BY DISCONTINUED OPERATIONS		—			—			150			—			150
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		77			(25	)		2,670			—			2,722
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas property		(1,517	)		—			(2,327	)		—			(3,844	)
Leasehold and property acquisitions		(243	)		—			(11	)		—			(254	)
Additions to gas gathering, transmission, and processing facilities		(25	)		—			(88	)		—			(113	)
Proceeds from sale of Kitimat LNG		—			—			854			—			854
Proceeds from sale of other oil and gas properties		8			—			140			—			148
Investment in subsidiaries, net		274			—			—			(274	)		—
Other		(16	)		—			(83	)		—			(99	)
NET CASH USED IN CONTINUING INVESTING ACTIVITIES		(1,519	)		—			(1,515	)		(274	)		(3,308	)
NET CASH PROVIDED BY DISCONTINUED OPERATIONS		—			—			4,335			—			4,335
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		(1,519	)		—			2,820			(274	)		1,027
CASH FLOWS FROM FINANCING ACTIVITIES:
Commercial paper and bank credit facilities, net		(1,570	)		—			—			—			(1,570	)
Intercompany borrowings		4,416			(10	)		(4,680	)		274			—
Early redemption of fixed-rate debt		(939	)		—			—			—			(939	)
Distributions to noncontrolling interest		—			—			(97	)		—			(97	)
Dividends paid		(283	)		—			—			—			(283	)
Treasury stock activity, net		—			—			—			—			—
Other		2			35			(11	)		—			26
NET CASH PROVIDED BY (USED IN) CONTINUING FINANCING ACTIVITIES		1,626			25			(4,788	)		274			(2,863	)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		1,626			25			(4,788	)		274			(2,863	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		184			—			702			—			886
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		267			—			502			—			769
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	451		$	—		$	1,204		$	—		$	1,655

APACHE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Nine Months Ended September 30, 2014

	Apache Corporation			Apache Finance Canada			All Other Subsidiaries of Apache Corporation			Reclassifications & Eliminations			Consolidated
	(In millions)
CASH PROVIDED BY (USED IN) CONTINUING OPERATING ACTIVITIES	$	3,574		$	(37	)	$	2,219		$	—		$	5,756
CASH PROVIDED BY DISCONTINUED OPERATIONS		—			—			772			—			772
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		3,574			(37	)		2,991			—			6,528
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to oil and gas property		(5,425	)		—			(1,160	)		—			(6,585	)
Leasehold and property acquisitions		(503	)		—			(135	)		—			(638	)
Additions to gas gathering, transmission, and processing facilities		(21	)		—			(482	)		—			(503	)
Proceeds from sale of Deepwater Gulf of Mexico assets		1,367			—			—			—			1,367
Restricted cash related to divestitures		(545	)		—			—			—			(545	)
Proceeds from sale of other oil and gas properties		35			—			355			—			390
Investment in subsidiaries, net		2,303			—			—			(2,303	)		—
Other		(67	)		—			(29	)		—			(96	)
NET CASH USED IN CONTINUING INVESTING ACTIVITIES		(2,856	)		—			(1,451	)		(2,303	)		(6,610	)
NET CASH USED IN DISCONTINUED OPERATIONS		—			—			(331	)		—			(331	)
NET CASH USED IN INVESTING ACTIVITIES		(2,856	)		—			(1,782	)		(2,303	)		(6,941	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Commercial paper and bank credit facilities, net		1,248			—			(2	)		—			1,246
Intercompany borrowings		—			10			(2,322	)		2,312			—
Distributions to noncontrolling interest		—			—			(124	)		—			(124	)
Dividends paid		(271	)		—			—			—			(271	)
Treasury stock activity, net		(1,830	)		—			—			—			(1,830	)
Other		—			24			23			(9	)		38
NET CASH PROVIDED BY (USED IN) CONTINUING FINANCING ACTIVITIES		(853	)		34			(2,425	)		2,303			(941	)
NET CASH USED IN DISCONTINUED OPERATIONS		—			—			(42	)		—			(42	)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		(853	)		34			(2,467	)		2,303			(983	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(135	)		(3	)		(1,258	)		—			(1,396	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		155			3			1,748			—			1,906
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	20		$	—		$	490		$	—		$	510

APACHE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

September 30, 2015

	Apache Corporation		Apache Finance Canada			All Other Subsidiaries of Apache Corporation			Reclassifications & Eliminations			Consolidated
	(In millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	451	$	—		$	1,204		$	—		$	1,655
Receivables, net of allowance		392		—			940			—			1,332
Inventories		35		—			632			—			667
Drilling advances		17		—			169			—			186
Assets held for sale		79		—			—			—			79
Deferred tax asset		72		—			12			—			84
Prepaid assets and other		19		—			57			—			76
Intercompany receivable		5,580		—			—			(5,580	)		—
		6,645		—			3,014			(5,580	)		4,079
PROPERTY AND EQUIPMENT, NET		1,156		—			21,221			—			22,377
OTHER ASSETS:
Intercompany receivable		—		—			882			(882	)		—
Equity in affiliates		19,993		(702	)		442			(19,733	)		—
Deferred charges and other		157		998			1,201			(1,000	)		1,356
	$	27,951	$	296		$	26,760		$	(27,195	)	$	27,812
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	416	$	—		$	243		$	—		$	659
Other current liabilities		851		8			649			—			1,508
Intercompany payable		—		—			5,580			(5,580	)		—
		1,267		8			6,472			(5,580	)		2,167
LONG-TERM DEBT		8,480		298			(1	)		—			8,777
DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES:
Intercompany payable		882		—			—			(882	)		—
Income taxes		109		—			1,888			—			1,997
Asset retirement obligation		225		—			2,342			—			2,567
Other		7,179		250			(6,097	)		(1,000	)		332
		8,395		250			(1,867	)		(1,882	)		4,896
COMMITMENTS AND CONTINGENCIES
APACHE SHAREHOLDERS’ EQUITY		9,809		(260	)		19,993			(19,733	)		9,809
Noncontrolling interest		—		—			2,163			—			2,163
TOTAL EQUITY		9,809		(260	)		22,156			(19,733	)		11,972
	$	27,951	$	296		$	26,760		$	(27,195	)	$	27,812

APACHE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2014

	Apache Corporation		Apache Finance Canada		All Other Subsidiaries of Apache Corporation			Reclassifications & Eliminations			Consolidated
	(In millions)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	267	$	—	$	502		$	—		$	769
Receivables, net of allowance		837		—		1,187			—			2,024
Inventories		24		—		684			—			708
Drilling advances		34		1		353			—			388
Assets held for sale		—		—		1,628			—			1,628
Deferred tax asset		612		—		157			—			769
Prepaid assets and other		32		—		97			—			129
Intercompany receivable		4,939		—		—			(4,939	)		—
		6,745		1		4,608			(4,939	)		6,415
PROPERTY AND EQUIPMENT, NET		13,940		—		34,136			—			48,076
OTHER ASSETS:
Intercompany receivable		—		—		608			(608	)		—
Equity in affiliates		25,791		869		444			(27,104	)		—
Goodwill		—		—		87			—			87
Deferred charges and other		175		1,002		1,197			(1,000	)		1,374
	$	46,651	$	1,872	$	41,080		$	(33,651	)	$	55,952
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	748	$	10	$	452		$	—		$	1,210
Asset retirement obligation		28		—		9			—			37
Other current liabilities		1,014		1		1,402			—			2,417
Intercompany payable		—		—		4,939			(4,939	)		—
		1,790		11		6,802			(4,939	)		3,664
LONG-TERM DEBT		10,947		298		—			—			11,245
DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES:
Intercompany payable		608		—		—			(608	)		—
Income taxes		5,076		—		4,423			—			9,499
Asset retirement obligation		211		—		2,837			—			3,048
Other		2,082		250		(973	)		(1,000	)		359
		7,977		250		6,287			(1,608	)		12,906
COMMITMENTS AND CONTINGENCIES
APACHE SHAREHOLDERS’ EQUITY		25,937		1,313		25,791			(27,104	)		25,937
Noncontrolling interest		—		—		2,200			—			2,200
TOTAL EQUITY		25,937		1,313		27,991			(27,104	)		28,137
	$	46,651	$	1,872	$	41,080		$	(33,651	)	$	55,952