Acquisitions and Divestitures

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

Acquisitions and Divestitures

Activity

Yara Pilbara Holdings Pty Limited Sale

In October 2015, Apache sold its 49 percent interest in Yara Pilbara Holdings Pty Limited (YPHPL) for total cash proceeds of $391 million. The investment in YPHPL was accounted for under the equity method of accounting, with the balance recorded as a component of “Deferred charges and other” in Apache’s consolidated balance sheet and the results of operations recorded as a component of “Other” under “Revenue and other” in the Company’s statement of consolidated operations. As of September 30, 2015, Apache recognized an impairment of $148 million on the YPHPL equity investment based on negotiated sales proceeds. No additional gain or loss was recorded upon completion of the sale.

Canada Divestiture

In April 2015, Apache completed the sale of its 50 percent interest in the Kitimat LNG project and upstream acreage in the Horn River and Liard natural gas basins to Woodside Petroleum Limited (Woodside). Proceeds at closing were $854 million, of which approximately $344 million was associated with LNG assets and $510 million was associated with upstream assets. For additional details related to post-closing adjustments, please see Note 10—Commitments and Contingencies.

The Kitimat LNG assets were classified as held for sale and impaired $655 million in the fourth quarter of 2014. In 2015, Apache recognized a $146 million gain on the sale of the upstream assets upon completion of the sale.

Australia Divestitures

Woodside Sale In April 2015, Apache completed the sale of the Wheatstone LNG project and associated upstream oil and gas assets to Woodside. Proceeds at closing were $2.8 billion, of which approximately $1.4 billion was associated with LNG assets and $1.4 billion was associated with the upstream assets.

The Wheatstone LNG assets and associated upstream assets were classified as held for sale and impaired $833 million in the fourth quarter of 2014. An additional impairment of approximately $49 million was recognized in the first quarter of 2015. During the third quarter of 2016, Apache recognized an additional $23 million loss on the sale related to post-closing adjustments.

Consortium Sale In June 2015, Apache completed the sale of its Australian subsidiary Apache Energy Limited (AEL) to a consortium of private equity funds managed by Macquarie Capital Group Limited and Brookfield Asset Management Inc. Total proceeds of $1.9 billion include customary, post-closing adjustments for the period between the effective date, October 1, 2014, and closing. A loss of approximately $139 million was recognized for the sale of AEL.

Upon closing of the sale of substantially all Australian operations, the associated results of operations for the divested Australian assets and the losses on disposal were classified as discontinued operations in the Company’s financial statements for all periods presented.

Sales and other operating revenues and loss from discontinued operations related to the Australia dispositions were as follows:

	For the Year Ended December 31,
	2016			2015			2014
	(In millions)
Revenues and other from discontinued operations	$	—		$	288		$	1,050
Impairment on Woodside sale	$	—		$	(49	)	$	(833	)
Loss on Woodside sale	(23		)	—			—
Loss on Consortium sale	—			(139		)	—
Income (loss) from divested Australian operations	—			28			(12		)
Income tax benefit (expense)	—			652			(231		)
Income (loss) from Australian discontinued operations, net of tax	$	(23	)	$	492		$	(1,076	)

Leasehold and Property Acquisitions

Apache completed $367 million of leasehold and property acquisitions during 2015, primarily in our North America onshore regions.

Divestiture of Other Oil and Gas Properties

Apache recorded $268 million of proceeds from the divestiture of other oil and gas properties during 2015. An associated $135 million of gain was recorded in 2015.

2014 Activity

Anadarko Basin and Southern Louisiana Divestitures

In December 2014, Apache completed the sale of certain Anadarko basin and non-core southern Louisiana oil and gas assets for approximately $1.3 billion in two separate transactions. In the Anadarko basin, Apache sold approximately 115,000 net acres in Wheeler County, Texas, and western Oklahoma. In southern Louisiana, Apache sold its working interest in approximately 90,000 net acres. The effective date of both of these transactions is October 1, 2014. Apache recognized a net $823 million loss on these transactions, of which approximately $10 million was associated with goodwill and approximately $180 million was associated with GTP facilities.

Gulf of Mexico Deepwater Divestiture

On June 30, 2014, Apache completed the sale of non-operated interests in the Lucius and Heidelberg development projects and 11 primary-term deepwater exploration blocks in the Gulf of Mexico for $1.4 billion. The effective date of the transaction was May 1, 2014. Apache recognized a $332 million loss as a result of the transaction, of which approximately $130 million was associated with goodwill.

Canada Divestiture

On April 30, 2014, Apache completed the sale of primarily dry gas producing hydrocarbon assets in the Deep Basin area of western Alberta and British Columbia, Canada, for $374 million. The assets comprise 328,400 net acres in the Ojay, Noel, and Wapiti areas. Apache retained 100 percent of its working interest in horizons below the Cretaceous in the Wapiti area, including rights to the liquids-rich Montney and other deeper horizons. The effective date of the transaction was January 1, 2014. Apache recognized a $237 million loss related to the sale of the assets.

Argentina Divestiture

On March 12, 2014, Apache’s subsidiaries completed the sale of all of the Company’s operations in Argentina to YPF Sociedad Anónima for cash consideration of $800 million (subject to customary closing adjustments) plus the assumption of $52 million of bank debt as of June 30, 2013. The results of operations related to Argentina have been classified as discontinued operations in all periods presented.

Sales and other operating revenues and loss from discontinued operations related to the Argentina disposition were as follows:

	For the Year Ended December 31,
	2016			2015		2014
	(In millions)
Revenues and other from discontinued operations	$	—		$	—	$	87
Loss from Argentina divestiture	$	(10	)	$	—	$	(654	)
Loss from operations in Argentina	—			—		(1		)
Income tax benefit	—			—		23
Loss from discontinued operations, net of tax	$	(10	)	$	—	$	(632	)

Leasehold and Property Acquisitions

Apache completed $1.5 billion of leasehold and property acquisitions during 2014, primarily in our North America onshore regions.

Divestiture of Other Oil and Gas Properties

Apache recorded $96 million of proceeds from the divestiture of other oil and gas properties during 2014. An associated $216 million of loss was recorded in 2014.

Transaction, Reorganization, and Separation

Apache recorded $39 million, $132 million, and $67 million of expenses during 2016, 2015, and 2014, respectively, primarily related to various transactions, company reorganization, and employee separation.