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Change in Accounting Principle
 6 Months Ended
Jun. 30, 2016
Accounting Changes and Error Corrections [Abstract]  
Change in Accounting Principle
CHANGE IN ACCOUNTING PRINCIPLE
During the second quarter of 2016, the Company voluntarily changed its method of accounting for oil and gas exploration and development activities from the full cost method to the successful efforts method. Accordingly, financial information for prior periods has been recast to reflect retrospective application of the successful efforts method. In general, under successful efforts, exploration expenditures such as exploratory dry holes, exploratory geological and geophysical costs, delay rentals, unproved impairments, and exploration overhead are charged against earnings as incurred, versus being capitalized under the full cost method of accounting. Successful efforts also provides for the assessment of potential property impairments under ASC 360 by comparing the net carrying value of oil and gas properties with associated projected undiscounted pre-tax future net cash flows. If the expected undiscounted pre-tax future net cash flows are lower than the unamortized capitalized costs, the capitalized cost is reduced to fair value. Under the full cost method of accounting, a write-down would be required if the net carrying value of oil and gas properties exceeds a full cost “ceiling,” using an unweighted arithmetic average of commodity prices in effect on the first day of each of the previous 12 months. In addition, gains or losses, if applicable, are generally recognized on the dispositions of oil and gas property and equipment under the successful efforts method, as opposed to an adjustment to the net carrying value of the remaining assets under the full cost method. Apache’s consolidated financial statements have been recast to reflect these differences.
The following tables present the effects of the change to the successful efforts method in the statement of consolidated operations:
 
Changes to the Statement of Consolidated Operations
For the Quarter Ended June 30, 2016
Under Full Cost
 
Changes
 
As Reported Under Successful Efforts
 
(In millions, except per share data)
Oil revenues
$
1,062

 
$
56

 
$
1,118

Natural gas revenues
218

 
(9
)
 
209

NGL revenues
59

 
—

 
59

Oil and gas production revenues
1,339

 
47

 
1,386

Other
(22
)
 
1

 
(21
)
Gain on divestiture
5

 
12

 
17

Exploration
—

 
91

 
91

Depreciation, depletion, and amortization:
 
 
 
 
 
Oil and Gas Property and Equipment
 
 
 
 
 
Recurring
507

 
122

 
629

Additional
671

 
(671
)
 
—

Impairments
105

 
68

 
173

Financing costs, net
90

 
14

 
104

Current income tax provision
25

 
119

 
144

Deferred income tax provision (benefit)
(120
)
 
(105
)
 
(225
)
NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST
(622
)
 
422

 
(200
)
   Net income (loss) attributable to noncontrolling interest
(21
)
 
65

 
44

NET LOSS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS
(601
)
 
357

 
(244
)
   Net income (loss) from discontinued operations
—

 
—

 
—

NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS
(601
)
 
357

 
(244
)
 
 
 
 
 
 
Per common share
 
 
 
 
 
Basic net loss from continuing operations per share
$
(1.58
)
 
$
0.93

 
$
(0.65
)
Basic net loss from discontinued operations per share
—

 
—

 
—

Basic net loss per share
$
(1.58
)
 
$
0.93

 
$
(0.65
)
 
 
 
 
 
 
Diluted net loss from continuing operations per share
$
(1.58
)
 
$
0.93

 
$
(0.65
)
Diluted net loss from discontinued operations per share
—

 
—

 
—

Diluted net loss per share
$
(1.58
)
 
$
0.93

 
$
(0.65
)
 
Changes to the Statement of Consolidated Operations
For the Quarter Ended June 30, 2015
Under Full Cost
 
Changes*
 
As Reported Under Successful Efforts
 
(In millions, except per share data)
Oil revenues
$
1,599

 
$
19

 
$
1,618

Natural gas revenues
295

 
20

 
315

NGL revenues
58

 
—

 
58

Oil and gas production revenues
1,952

 
39

 
1,991

Other
25

 
3

 
28

Gain on divestiture
—

 
227

 
227

Exploration
—

 
225

 
225

Depreciation, depletion, and amortization:
 
 
 
 
 
Oil and Gas Property and Equipment
 
 
 
 
 
Recurring
923

 
(212
)
 
711

Additional
5,816

 
(5,816
)
 
—

Impairments
—

 
512

 
512

Financing costs, net
63

 
54

 
117

Current income tax provision (benefit)
665

 
235

 
900

Deferred income tax provision (benefit)
(1,525
)
 
1,356

 
(169
)
NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST
(4,832
)
 
3,915

 
(917
)
   Net income attributable to noncontrolling interest
36

 
27

 
63

NET LOSS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS
(4,868
)
 
3,888

 
(980
)
   Net loss from discontinued operations
(732
)
 
852

 
120

NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS
(5,600
)
 
4,740

 
(860
)
 
 
 
 
 
 
Per common share
 
 
 
 
 
Basic net loss from continuing operations per share
$
(12.89
)
 
$
10.29

 
$
(2.60
)
Basic net loss from discontinued operations per share
(1.94
)
 
2.26

 
0.32

Basic net loss per share
$
(14.83
)
 
$
12.55

 
$
(2.28
)
 
 
 
 
 
 
Diluted net loss from continuing operations per share
$
(12.89
)
 
$
10.29

 
$
(2.60
)
Diluted net loss from discontinued operations per share
(1.94
)
 
2.26

 
0.32

Diluted net loss per share
$
(14.83
)
 
$
12.55

 
$
(2.28
)
 
Changes to the Statement of Consolidated Operations
For the Six Months Ended June 30, 2016
Under Full Cost
 
Changes*
 
As Reported Under Successful Efforts
 
(In millions, except per share data)
Oil revenues
$
1,857

 
$
83

 
$
1,940

Natural gas revenues
441

 
(9
)
 
432

NGL revenues
101

 
—

 
101

Oil and gas production revenues
2,399

 
74

 
2,473

Other
(27
)
 
3

 
(24
)
Gain on divestiture
3

 
13

 
16

Exploration
—

 
186

 
186

Depreciation, depletion, and amortization:
 
 
 
 
 
Oil and Gas Property and Equipment
 
 
 
 
 
Recurring
1,059

 
206

 
1,265

Additional
1,159

 
(1,159
)
 
—

Impairments
105

 
68

 
173

Financing costs, net
180

 
29

 
209

Current income tax provision
61

 
73

 
134

Deferred income tax provision (benefit)
(301
)
 
75

 
(226
)
NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST
(1,183
)
 
612

 
(571
)
   Net income (loss) attributable to noncontrolling interest
(93
)
 
138

 
45

NET LOSS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS
(1,090
)
 
474

 
(616
)
   Net income (loss) from discontinued operations
—

 
—

 
—

NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS
(1,090
)
 
474

 
(616
)
 
 
 
 
 
 
Per common share
 
 
 
 
 
Basic net loss from continuing operations per share
$
(2.88
)
 
$
1.25

 
$
(1.63
)
Basic net loss from discontinued operations per share
—

 
—

 
—

Basic net loss per share
$
(2.88
)
 
$
1.25

 
$
(1.63
)
 
 
 
 
 
 
Diluted net loss from continuing operations per share
$
(2.88
)
 
$
1.25

 
$
(1.63
)
Diluted net loss from discontinued operations per share
—

 
—

 
—

Diluted net loss per share
$
(2.88
)
 
$
1.25

 
$
(1.63
)
 
Changes to the Statement of Consolidated Operations
For the Six Months Ended June 30, 2015
Under Full Cost
 
Changes*
 
As Reported Under Successful Efforts
 
(In millions, except per share data)
Oil revenues
$
2,879

 
$
32

 
$
2,911

Natural gas revenues
595

 
28

 
623

NGL revenues
116

 
—

 
116

Oil and gas production revenues
3,590

 
60

 
3,650

Other
17

 
5

 
22

Gain on divestiture
—

 
209

 
209

Exploration
—

 
483

 
483

General and administrative
193

 
2

 
195

Depreciation, depletion, and amortization:
 
 
 
 
 
Oil and Gas Property and Equipment
 
 
 
 
 
Recurring
1,922

 
(468
)
 
1,454

Additional
13,036

 
(13,036
)
 
—

Impairments
—

 
2,424

 
2,424

Financing costs, net
133

 
108

 
241

Current income tax provision (benefit)
580

 
268

 
848

Deferred income tax provision (benefit)
(4,460
)
 
3,142

 
(1,318
)
NET LOSS FROM CONTINUING OPERATIONS INCLUDING NONCONTROLLING INTEREST
(9,336
)
 
7,351

 
(1,985
)
   Net income attributable to noncontrolling interest
51

 
40

 
91

NET LOSS FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON SHAREHOLDERS
(9,387
)
 
7,311

 
(2,076
)
   Net loss from discontinued operations
(864
)
 
746

 
(118
)
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS
(10,251
)
 
8,057

 
(2,194
)
 
 
 
 
 
 
Per common share
 
 
 
 
 
Basic net loss from continuing operations per share
$
(24.88
)
 
$
19.38

 
$
(5.50
)
Basic net loss from discontinued operations per share
(2.29
)
 
1.98

 
(0.31
)
Basic net loss per share
$
(27.17
)
 
$
21.36

 
$
(5.81
)
 
 
 
 
 
 
Diluted net loss from continuing operations per share
$
(24.88
)
 
$
19.38

 
$
(5.50
)
Diluted net loss from discontinued operations per share
(2.29
)
 
1.98

 
(0.31
)
Diluted net loss per share
$
(27.17
)
 
$
21.36

 
$
(5.81
)


The following tables present the effects of the change to the successful efforts method in the statement of consolidated cash flows:
 
Changes to the Statement of Consolidated Cash Flows
For the Six Months Ended June 30, 2016
Under Full Cost
 
Changes*
 
As Reported Under Successful Efforts
 
(In millions)
Net loss including noncontrolling interest
$
(1,183
)
 
$
612

 
$
(571
)
Gain on divestitures, net
(3
)
 
(13
)
 
(16
)
Exploratory dry hole expense and unproved leasehold impairments
—

 
139

 
139

Depreciation, depletion, and amortization
2,300

 
(953
)
 
1,347

Impairments
105

 
68

 
173

Provision for (benefit from) deferred income taxes
(301
)
 
75

 
(226
)
Changes in operating assets and liabilities
(28
)
 
(2
)
 
(30
)
Net cash provided by operating activities
1,057

 
(74
)
 
983

Additions to oil and gas property
(999
)
 
74

 
(925
)
Net cash used in investing activities
(1,040
)
 
74

 
(966
)
NET INCREASE (DECREASE) IN CASH
(266
)
 
—

 
(266
)
BEGINNING CASH BALANCE
1,467

 
—

 
1,467

ENDING CASH BALANCE
1,201

 
—

 
1,201

 
Changes to the Statement of Consolidated Cash Flows
For the Six Months Ended June 30, 2015
Under Full Cost
 
Changes*
 
As Reported Under Successful Efforts
 
(In millions)
Net loss including noncontrolling interest
$
(10,200
)
 
$
8,097

 
$
(2,103
)
Loss from discontinued operations
864

 
(746
)
 
118

Gain on divestitures, net
—

 
(209
)
 
(209
)
Exploratory dry hole expense and unproved leasehold impairments
—

 
385

 
385

Depreciation, depletion, and amortization
15,124

 
(13,504
)
 
1,620

Impairments
—

 
2,424

 
2,424

Provision for (benefit from) deferred income taxes
(4,460
)
 
3,142

 
(1,318
)
Changes in operating assets and liabilities
311

 
297

 
608

Net cash provided by operating activities - continuing operations
1,737

 
(114
)
 
1,623

Net cash provided by operating activities - discontinued operations
196

 
(37
)
 
159

Additions to oil and gas property
(2,987
)
 
204

 
(2,783
)
Net cash used in investing activities - continuing operations
(2,303
)
 
204

 
(2,099
)
Net cash provided by investing activities - discontinued operations
4,335

 
37

 
4,372

NET INCREASE (DECREASE) IN CASH
2,181

 
90

 
2,271

BEGINNING CASH BALANCE
769

 
(90
)
 
679

ENDING CASH BALANCE
2,950

 
—

 
2,950

The following tables present the effects of the change to the successful efforts method in the consolidated balance sheet:
 
Changes to the Consolidated Balance Sheet
June 30, 2016
Under Full Cost
 
Changes
 
As Reported Under Successful Efforts
 
(In millions)
PROPERTY AND EQUIPMENT:
 
 
 
 
 
Property and equipment - cost
$
94,657

 
$
(47,943
)
 
$
46,714

Less: Accumulated depreciation, depletion, and amortization
(81,920
)
 
55,349

 
(26,571
)
PROPERTY AND EQUIPMENT, NET
12,737

 
7,406

 
20,143

Deferred charges and other
937

 
(26
)
 
911

TOTAL ASSETS
16,966

 
7,380

 
24,346

Deferred income taxes
796

 
1,512

 
2,308

Paid-in capital
12,342

 
145

 
12,487

Accumulated deficit
(8,243
)
 
5,647

 
(2,596
)
Accumulated other comprehensive loss
(116
)
 
(3
)
 
(119
)
Noncontrolling interest
1,475

 
79

 
1,554

TOTAL EQUITY
2,828

 
5,868

 
8,696

 
Changes to the Consolidated Balance Sheet
December 31, 2015
Under Full Cost
 
Changes*
 
As Reported Under Successful Efforts
 
(In millions)
PROPERTY AND EQUIPMENT:
 
 
 
 
 
Property and equipment - cost
$
93,825

 
$
(47,675
)
 
$
46,150

Less: Accumulated depreciation, depletion, and amortization
(79,706
)
 
54,394

 
(25,312
)
PROPERTY AND EQUIPMENT, NET
14,119

 
6,719

 
20,838

TOTAL ASSETS
18,781

 
6,719

 
25,500

Deferred income taxes
1,072

 
1,457

 
2,529

Paid-in capital
12,467

 
152

 
12,619

Accumulated deficit (1)
(7,153
)
 
5,173

 
(1,980
)
Accumulated other comprehensive loss
(116
)
 
(3
)
 
(119
)
Noncontrolling interest
1,662

 
(60
)
 
1,602

TOTAL EQUITY
4,228

 
5,262

 
9,490

*In conjunction with recasting the financial information for the adoption of the successful efforts method of accounting, we corrected certain immaterial errors
in the North Sea pertaining to the improper calculation of deferred tax liabilities associated with capitalized interest under the full cost method.
(1) The cumulative effect of the change to the successful efforts method on retained earnings (accumulated deficit) as of January 1, 2015 was a decrease of $7.6 billion.