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Supplemental Oil and Gas Disclosures (Unaudited)
12 Months Ended
Dec. 31, 2016
Extractive Industries [Abstract]  
Supplemental Oil and Gas Disclosures (Unaudited)
 SUPPLEMENTAL OIL AND GAS DISCLOSURES (Unaudited)
Oil and Gas Operations
The following table sets forth revenue and direct cost information relating to the Company’s oil and gas exploration and production activities. Apache has no long-term agreements to purchase oil or gas production from foreign governments or authorities. In the second quarter of 2015, Apache completed the sale of its Australian LNG business and oil and gas assets, and as such the results of Australia oil and gas assets have been classified as discontinued operations.
 
 
United
States
 
Canada
 
Egypt(3)
 
North Sea
 
Other
International
 
Total(3)(4)
 
 
(In millions, except per boe)
2016
 
 
 
 
 
 
 
 
 
 
 
 
Oil and gas production revenues
 
$
1,997

 
$
343

 
$
2,057

 
$
970

 
$

 
$
5,367

Operating cost:
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation, depletion, and amortization(1)
 
1,055

 
174

 
733

 
498

 

 
2,460

Asset retirement obligation accretion
 
34

 
47

 

 
75

 

 
156

Lease operating expenses
 
553

 
181

 
446

 
314

 

 
1,494

Gathering and transportation
 
80

 
68

 
44

 
8

 

 
200

Exploration expenses
 
285

 
88

 
48

 
37

 
15

 
473

Impairments related to oil and gas properties
 
61

 
366

 

 

 

 
427

Production taxes(2)
 
135

 
18

 

 
(33
)
 

 
120

Income tax
 
(72
)
 
(162
)
 
354

 
28

 

 
148

 
 
2,131

 
780

 
1,625

 
927

 
15

 
5,478

Results of operation
 
$
(134
)
 
$
(437
)
 
$
432

 
$
43

 
$
(15
)
 
$
(111
)
2015
 
 
 
 
 
 
 
 
 
 
 
 
Oil and gas production revenues
 
$
2,637

 
$
498

 
$
2,095

 
$
1,280

 
$

 
$
6,510

Operating cost:
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation, depletion, and amortization(1)
 
1,455

 
251

 
780

 
490

 

 
2,976

Asset retirement obligation accretion
 
28

 
43

 

 
74

 

 
145

Lease operating expenses
 
739

 
244

 
522

 
349

 

 
1,854

Gathering and transportation
 
68

 
89

 
45

 
9

 

 
211

Exploration expenses
 
2,145

 
231

 
154

 
237

 
4

 
2,771

Impairments related to oil and gas properties
 
6,154

 
1,031

 
193

 
11

 

 
7,389

Production taxes(2)
 
178

 
23

 

 
58

 

 
259

Income tax
 
(2,886
)
 
(369
)
 
180

 
26

 

 
(3,049
)
 
 
7,881

 
1,543

 
1,874

 
1,254

 
4

 
12,556

Results of operation
 
$
(5,244
)
 
$
(1,045
)
 
$
221

 
$
26

 
$
(4
)
 
$
(6,046
)
2014
 
 
 
 
 
 
 
 
 
 
 
 
Oil and gas production revenues
 
$
5,744

 
$
1,092

 
$
3,643

 
$
2,316

 
$

 
$
12,795

Operating cost:
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation, depletion, and amortization(1)
 
2,294

 
382

 
735

 
784

 

 
4,195

Asset retirement obligation accretion
 
43

 
39

 

 
72

 

 
154

Lease operating expenses
 
921

 
384

 
499

 
434

 

 
2,238

Gathering and transportation
 
93

 
123

 
40

 
17

 

 
273

Exploration expenses
 
2,113

 
162

 
112

 
119

 
(7
)
 
2,499

Impairments related to oil and gas properties
 
2,372

 
1,645

 
173

 
1,878

 

 
6,068

Production taxes(2)
 
342

 
27

 

 
177

 

 
546

Income tax
 
(864
)
 
(421
)
 
938

 
(723
)
 

 
(1,070
)
 
 
7,314

 
2,341

 
2,497

 
2,758

 
(7
)
 
14,903

Results of operation
 
$
(1,570
)
 
$
(1,249
)
 
$
1,146

 
$
(442
)
 
$
7

 
$
(2,108
)


 
(1)
This amount only reflects DD&A of capitalized costs of oil and gas properties and, therefore, does not agree with DD&A reflected on Note 15—Business Segment Information.
(2)
Only reflects amounts directly related to oil and gas producing properties and, therefore, does not agree with taxes other than income reflected on Note 15—Business Segment Information.
(3)
Includes noncontrolling interest in Egypt.
(4)
Prior year amounts have been recast to exclude discontinued operations.
Costs Incurred in Oil and Gas Property Acquisitions, Exploration, and Development Activities
 
 
 
United
States
 
Canada
 
Egypt(2)
 
Australia
 
North Sea
 
Argentina
 
Other
International
 
Total(2)
 
 
(In millions)
2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisitions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proved
 
$

 
$
1

 
$
6

 
$

 
$
38

 
$

 
$

 
$
45

Unproved
 
110

 
7

 
49

 

 
4

 

 

 
170

Exploration
 
278

 
23

 
67

 

 
84

 

 
18

 
470

Development
 
420

 
27

 
353

 

 
150

 

 

 
950

Costs incurred(1)
 
$
808

 
$
58

 
$
475

 
$

 
$
276

 
$

 
$
18

 
$
1,635

(1) Includes capitalized interest and asset retirement costs as follows:
 
 
 
 
 
 
 
 
Capitalized interest
 
$
21

 
$
6

 
$

 
$

 
$
21

 
$

 
$

 
$
48

Asset retirement costs
 
(51
)
 
(13
)
 

 

 
(128
)
 

 

 
(192
)
2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisitions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proved
 
$
1

 
$
8

 
$
29

 
$

 
$

 
$

 
$

 
$
38

Unproved
 
313

 
23

 

 

 

 

 

 
336

Exploration
 
194

 
51

 
125

 
32

 
246

 

 
29

 
677

Development
 
1,729

 
151

 
741

 
98

 
479

 

 

 
3,198

Costs incurred(1)
 
$
2,237

 
$
233

 
$
895

 
$
130

 
$
725

 
$

 
$
29

 
$
4,249

(1) Includes capitalized interest and asset retirement costs as follows:
 
 
 
 
Capitalized interest
 
$

 
$

 
$
8

 
$
6

 
$
7

 
$

 
$

 
$
21

Asset retirement costs
 
123

 
8

 

 

 
(66
)
 

 

 
65

2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisitions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Proved
 
$
102

 
$

 
$
11

 
$

 
$

 
$

 
$

 
$
113

Unproved
 
1,221

 
141

 

 
16

 

 

 

 
1,378

Exploration
 
505

 
93

 
207

 
131

 
103

 
9

 
1

 
1,049

Development
 
5,078

 
789

 
1,122

 
990

 
956

 
6

 

 
8,941

Costs incurred(1)
 
$
6,906

 
$
1,023

 
$
1,340

 
$
1,137

 
$
1,059

 
$
15

 
$
1

 
$
11,481

(1) Includes capitalized interest and asset retirement costs as follows:
 
 
Capitalized interest
 
$
17

 
$

 
$
9

 
$
90

 
$
29

 
$
3

 
$

 
$
148

Asset retirement costs
 
43

 
175

 

 
55

 
34

 

 

 
307

(2) Includes a noncontrolling interest in Egypt.
Capitalized Costs
The following table sets forth the capitalized costs and associated accumulated depreciation, depletion, and amortization relating to the Company’s oil and gas acquisition, exploration, and development activities:
 
 
 
United
States
 
Canada
 
Egypt(1)
 
North
Sea
 
Other
International
 
Total(1)
 
 
(In millions)
2016
 
 
 
 
 
 
 
 
 
 
 
 
Proved properties
 
$
19,170

 
$
5,434

 
$
10,169

 
$
7,920

 
$

 
$
42,693

Unproved properties
 
1,465

 
109

 
76

 
280

 
39

 
1,969

 
 
20,635

 
5,543

 
10,245

 
8,200

 
39

 
44,662

Accumulated DD&A
 
(10,034
)
 
(4,120
)
 
(7,287
)
 
(5,531
)
 

 
(26,972
)
 
 
$
10,601

 
$
1,423

 
$
2,958

 
$
2,669

 
$
39

 
$
17,690

2015
 
 
 
 
 
 
 
 
 
 
 
 
Proved properties
 
$
18,692

 
$
5,812

 
$
9,798

 
$
7,426

 
$

 
$
41,728

Unproved properties
 
1,615

 
172

 
25

 
429

 
36

 
2,277

 
 
20,307

 
5,984

 
9,823

 
7,855

 
36

 
44,005

Accumulated DD&A
 
(9,027
)
 
(3,958
)
 
(6,559
)
 
(4,913
)
 

 
(24,457
)
 
 
$
11,280

 
$
2,026

 
$
3,264

 
$
2,942

 
$
36

 
$
19,548

(1) Includes a noncontrolling interest in Egypt.
 
 
 
 
Oil and Gas Reserve Information
Proved oil and gas reserves are the estimated quantities of natural gas, crude oil, condensate, and natural gas liquids (NGLs) that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing conditions, operating conditions, and government regulations. Estimated proved developed oil and gas reserves can be expected to be recovered through existing wells with existing equipment and operating methods. The Company reports all estimated proved reserves held under production-sharing arrangements utilizing the “economic interest” method, which excludes the host country’s share of reserves.

Estimated reserves that can be produced economically through application of improved recovery techniques are included in the “proved” classification when successful testing by a pilot project or the operation of an active, improved recovery program using reliable technology establishes the reasonable certainty for the engineering analysis on which the project or program is based. Economically producible means a resource which generates revenue that exceeds, or is reasonably expected to exceed, the costs of the operation. Reasonable certainty means a high degree of confidence that the quantities will be recovered. Reliable technology is a grouping of one or more technologies (including computational methods) that has been field-tested and has been demonstrated to provide reasonably certain results with consistency and repeatability in the formation being evaluated or in an analogous formation. In estimating its proved reserves, Apache uses several different traditional methods that can be classified in three general categories: 1) performance-based methods; 2) volumetric-based methods; and 3) analogy with similar properties. Apache will, at times, utilize additional technical analysis such as computer reservoir models, petrophysical techniques, and proprietary 3-D seismic interpretation methods to provide additional support for more complex reservoirs. Information from this additional analysis is combined with traditional methods outlined above to enhance the certainty of our reserve estimates.

There are numerous uncertainties inherent in estimating quantities of proved reserves and projecting future rates of production and timing of development expenditures. The reserve data in the following tables only represent estimates and should not be construed as being exact.
 
 
 
Crude Oil and Condensate
 
 
(Thousands of barrels)
 
 
United
States
 
Canada
 
Egypt(1)
 
Australia
 
North
Sea
 
Argentina
 
Total(1)
Proved developed reserves:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
457,981

 
80,526

 
119,242

 
22,524

 
100,327

 
14,195

 
794,795

December 31, 2014
 
444,440

 
75,876

 
128,712

 
29,996

 
105,746

 

 
784,770

December 31, 2015
 
348,797

 
67,847

 
144,164

 

 
104,255

 

 
665,063

December 31, 2016
 
300,900

 
51,508

 
138,771

 

 
91,138

 

 
582,317

Proved undeveloped reserves:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
195,835

 
56,366

 
16,302

 
36,703

 
29,253

 
2,231

 
336,690

December 31, 2014
 
170,125

 
59,923

 
14,617

 
25,775

 
19,059

 

 
289,499

December 31, 2015
 
60,505

 
38,326

 
17,856

 

 
11,309

 

 
127,996

December 31, 2016
 
21,088

 
7,906

 
20,187

 

 
10,784

 

 
59,965

Total proved reserves:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance December 31, 2013
 
653,816

 
136,892

 
135,544

 
59,227

 
129,580

 
16,426

 
1,131,485

Extensions, discoveries and other additions
 
57,011

 
9,657

 
38,074

 
4,254

 
17,386

 
5

 
126,387

Purchase of minerals in-place
 
15,240

 

 

 

 

 

 
15,240

Revisions of previous estimates
 
3,083

 
(812
)
 
2,645

 
(216
)
 
(7
)
 

 
4,693

Production
 
(48,789
)
 
(6,421
)
 
(32,934
)
 
(7,494
)
 
(22,154
)
 
(620
)
 
(118,412
)
Sale of properties
 
(65,796
)
 
(3,517
)
 

 

 

 
(15,811
)
 
(85,124
)
Balance December 31, 2014
 
614,565

 
135,799

 
143,329

 
55,771

 
124,805

 

 
1,074,269

Extensions, discoveries and other additions
 
13,903

 
4,550

 
24,524

 

 
16,579

 

 
59,556

Purchase of minerals in-place
 

 
1,763

 

 

 

 

 
1,763

Revisions of previous estimates
 
(173,907
)
 
(27,966
)
 
27,330

 
11,189

 
(2,255
)
 

 
(165,609
)
Production
 
(45,138
)
 
(5,755
)
 
(33,163
)
 
(2,778
)
 
(21,657
)
 

 
(108,491
)
Sale of properties
 
(121
)
 
(2,218
)
 

 
(64,182
)
 
(1,908
)
 

 
(68,429
)
Balance December 31, 2015
 
409,302

 
106,173

 
162,020

 

 
115,564

 

 
793,059

Extensions, discoveries and other additions
 
9,614

 
3,372

 
17,599

 

 
9,766

 

 
40,351

Purchase of minerals in-place
 
21

 

 

 

 
438

 

 
459

Revisions of previous estimates
 
(58,882
)
 
(43,282
)
 
17,301

 

 
(3,851
)
 

 
(88,714
)
Production
 
(38,000
)
 
(4,787
)
 
(37,962
)
 

 
(19,995
)
 

 
(100,744
)
Sale of properties
 
(67
)
 
(2,062
)
 

 

 

 

 
(2,129
)
Balance December 31, 2016
 
321,988

 
59,414

 
158,958

 

 
101,922

 

 
642,282

(1)    2016, 2015, 2014, and 2013 includes proved reserves of 53 MMbbls, 54 MMbbls, 48 MMbbls, and 45 MMbbls, respectively, attributable to a noncontrolling interest in Egypt.

 
 
Natural Gas Liquids
 
 
(Thousands of barrels)
 
 
United
States
 
Canada
 
Egypt(1)
 
Australia
 
North
Sea
 
Argentina
 
Total(1)
Proved developed reserves:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
184,485

 
26,099

 

 

 
2,435

 
4,110

 
217,129

December 31, 2014
 
183,565

 
17,947

 
1,346

 

 
1,770

 

 
204,628

December 31, 2015
 
150,265

 
15,246

 
1,491

 

 
1,784

 

 
168,786

December 31, 2016
 
155,124

 
13,866

 
1,266

 

 
1,627

 

 
171,883

Proved undeveloped reserves:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
63,538

 
9,970

 

 

 
215

 
1,009

 
74,732

December 31, 2014
 
69,828

 
7,168

 
212

 

 
371

 

 
77,579

December 31, 2015
 
24,939

 
4,839

 
78

 

 
295

 

 
30,151

December 31, 2016
 
17,311

 
2,473

 
131

 

 
646

 

 
20,561

Total proved reserves:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance December 31, 2013
 
248,023

 
36,069

 

 

 
2,650

 
5,119

 
291,861

Extensions, discoveries and other additions
 
47,516

 
1,163

 
1,820

 

 
1

 

 
50,500

Purchase of minerals in-place
 
2,916

 

 

 

 

 

 
2,916

Revisions of previous estimates
 
2,594

 
116

 
(11
)
 

 
(2
)
 

 
2,697

Production
 
(21,464
)
 
(2,256
)
 
(251
)
 

 
(508
)
 
(116
)
 
(24,595
)
Sale of properties
 
(26,192
)
 
(9,977
)
 

 

 

 
(5,003
)
 
(41,172
)
Balance December 31, 2014
 
253,393

 
25,115

 
1,558

 

 
2,141

 

 
282,207

Extensions, discoveries and other additions
 
5,768

 
1,473

 
144

 

 
689

 

 
8,074

Purchase of minerals in-place
 

 
976

 

 

 

 

 
976

Revisions of previous estimates
 
(64,226
)
 
(4,886
)
 
255

 

 
(321
)
 

 
(69,178
)
Production
 
(19,684
)
 
(2,236
)
 
(388
)
 

 
(413
)
 

 
(22,721
)
Sale of properties
 
(47
)
 
(357
)
 

 

 
(17
)
 

 
(421
)
Balance December 31, 2015
 
175,204

 
20,085

 
1,569

 

 
2,079

 

 
198,937

Extensions, discoveries and other additions
 
10,238

 
755

 
208

 

 
671

 

 
11,872

Purchase of minerals in-place
 
2

 

 

 

 
5

 

 
7

Revisions of previous estimates
 
6,824

 
(1,355
)
 
17

 

 
141

 

 
5,627

Production
 
(19,824
)
 
(2,098
)
 
(397
)
 

 
(623
)
 

 
(22,942
)
Sale of properties
 
(9
)
 
(1,048
)
 

 

 

 

 
(1,057
)
Balance December 31, 2016
 
172,435

 
16,339

 
1,397

 

 
2,273

 

 
192,444

(1)    2016, 2015, and 2014 includes proved reserves of 466 Mbbls, 523 Mbbls, and 519 Mbbls, respectively, attributable to a noncontrolling interest in Egypt.

 
 
 
Natural Gas
 
 
(Millions of cubic feet)
 
 
United
States
 
Canada
 
Egypt(1)
 
Australia
 
North
Sea
 
Argentina
 
Total(1)
Proved developed reserves:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
2,005,966

 
1,294,420

 
621,825

 
626,543

 
88,177

 
289,133

 
4,926,064

December 31, 2014
 
1,616,504

 
990,145

 
637,187

 
640,265

 
87,259

 

 
3,971,360

December 31, 2015
 
1,364,174

 
759,321

 
776,263

 

 
85,532

 

 
2,985,290

December 31, 2016
 
1,200,379

 
553,724

 
675,559

 

 
86,948

 

 
2,516,610

Proved undeveloped reserves:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
667,160

 
439,037

 
190,355

 
975,224

 
18,988

 
121,584

 
2,412,348

December 31, 2014
 
580,299

 
527,623

 
171,696

 
964,554

 
23,228

 

 
2,267,400

December 31, 2015
 
208,594

 
162,809

 
53,969

 

 
19,760

 

 
445,132

December 31, 2016
 
231,304

 
45,312

 
42,109

 

 
23,813

 

 
342,538

Total proved reserves:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance December 31, 2013
 
2,673,126

 
1,733,457

 
812,180

 
1,601,767

 
107,165

 
410,717

 
7,338,412

Extensions, discoveries and other additions
 
203,318

 
383,077

 
125,899

 
81,156

 
23,803

 

 
817,253

Purchase of minerals in-place
 
21,337

 

 

 

 

 

 
21,337

Revisions of previous estimates
 
35,910

 
(12,626
)
 
17,326

 

 
(54
)
 

 
40,556

Production
 
(215,829
)
 
(117,816
)
 
(146,522
)
 
(78,104
)
 
(20,427
)
 
(12,722
)
 
(591,420
)
Sale of properties
 
(521,059
)
 
(468,324
)
 

 

 

 
(397,995
)
 
(1,387,378
)
Balance December 31, 2014
 
2,196,803

 
1,517,768

 
808,883

 
1,604,819

 
110,487

 

 
6,238,760

Extensions, discoveries and other additions
 
40,901

 
121,216

 
94,777

 

 
41,755

 

 
298,649

Purchase of minerals in-place
 

 
24,727

 

 

 

 

 
24,727

Revisions of previous estimates
 
(503,939
)
 
(325,375
)
 
61,442

 
8,162

 
(22,373
)
 

 
(782,083
)
Production
 
(160,614
)
 
(100,289
)
 
(134,870
)
 
(34,352
)
 
(23,647
)
 

 
(453,772
)
Sale of properties
 
(383
)
 
(315,917
)
 

 
(1,578,629
)
 
(930
)
 

 
(1,895,859
)
Balance December 31, 2015
 
1,572,768

 
922,130

 
830,232

 

 
105,292

 

 
3,430,422

Extensions, discoveries and other additions
 
219,633

 
30,234

 
35,202

 

 
20,814

 

 
305,883

Purchase of minerals in-place
 
7

 

 

 

 
6,677

 

 
6,684

Revisions of previous estimates
 
(215,378
)
 
(242,080
)
 
(4,305
)
 

 
4,239

 

 
(457,524
)
Production
 
(145,019
)
 
(88,792
)
 
(143,461
)
 

 
(26,261
)
 

 
(403,533
)
Sale of properties
 
(328
)
 
(22,456
)
 

 

 

 

 
(22,784
)
Balance December 31, 2016
 
1,431,683

 
599,036

 
717,668

 

 
110,761

 

 
2,859,148

(1)    2016, 2015, 2014, and 2013 include proved reserves of 239 Bcf, 277 Bcf, 270 Bcf, and 271 Bcf, respectively, attributable to a noncontrolling interest in Egypt.

 
 
Total Equivalent Reserves
 
 
(Thousands barrels of oil equivalent)
 
 
United
States
 
Canada
 
Egypt(1)
 
Australia
 
North
Sea
 
Argentina
 
Total(1)
Proved developed reserves:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
976,795

 
322,362

 
222,880

 
126,948

 
117,457

 
66,494

 
1,832,936

December 31, 2014
 
897,422

 
258,848

 
236,256

 
136,707

 
122,058

 

 
1,651,291

December 31, 2015
 
726,424

 
209,647

 
275,033

 

 
120,293

 

 
1,331,397

December 31, 2016
 
656,087

 
157,662

 
252,630

 

 
107,256

 

 
1,173,635

Proved undeveloped reserves:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
370,566

 
139,509

 
48,028

 
199,240

 
32,633

 
23,504

 
813,480

December 31, 2014
 
336,670

 
155,028

 
43,446

 
186,534

 
23,301

 

 
744,979

December 31, 2015
 
120,210

 
70,300

 
26,929

 

 
14,897

 

 
232,336

December 31, 2016
 
76,950

 
17,931

 
27,336

 

 
15,399

 

 
137,616

Total proved reserves:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance December 31, 2013
 
1,347,361

 
461,871

 
270,908

 
326,188

 
150,090

 
89,998

 
2,646,416

Extensions, discoveries and other additions
 
138,413

 
74,666

 
60,877

 
17,780

 
21,354

 
5

 
313,095

Purchase of minerals in-place
 
21,712

 

 

 

 

 

 
21,712

Revisions of previous estimates
 
11,662

 
(2,800
)
 
5,522

 
(216
)
 
(18
)
 

 
14,150

Production
 
(106,225
)
 
(28,313
)
 
(57,605
)
 
(20,511
)
 
(26,067
)
 
(2,856
)
 
(241,577
)
Sale of properties
 
(178,831
)
 
(91,548
)
 

 

 

 
(87,147
)
 
(357,526
)
Balance December 31, 2014
 
1,234,092

 
413,876

 
279,702

 
323,241

 
145,359

 

 
2,396,270

Extensions, discoveries and other additions
 
26,488

 
26,226

 
40,464

 

 
24,227

 

 
117,405

Purchase of minerals in-place
 

 
6,860

 

 

 

 

 
6,860

Revisions of previous estimates
 
(322,123
)
 
(87,081
)
 
37,825

 
12,549

 
(6,305
)
 

 
(365,135
)
Production
 
(91,591
)
 
(24,706
)
 
(56,029
)
 
(8,503
)
 
(26,011
)
 

 
(206,840
)
Sale of properties
 
(232
)
 
(55,228
)
 

 
(327,287
)
 
(2,080
)
 

 
(384,827
)
Balance December 31, 2015
 
846,634

 
279,947

 
301,962

 

 
135,190

 

 
1,563,733

Extensions, discoveries and other additions
 
56,458

 
9,166

 
23,674

 

 
13,906

 

 
103,204

Purchase of minerals in-place
 
24

 

 

 

 
1,556

 

 
1,580

Revisions of previous estimates
 
(87,954
)
 
(84,984
)
 
16,599

 

 
(3,002
)
 

 
(159,341
)
Production
 
(81,994
)
 
(21,684
)
 
(62,269
)
 

 
(24,995
)
 

 
(190,942
)
Sale of properties
 
(131
)
 
(6,852
)
 

 

 

 

 
(6,983
)
Balance December 31, 2016
 
733,037

 
175,593

 
279,966

 

 
122,655

 

 
1,311,251

(1)    2016, 2015, 2014, and 2013 include total proved reserves of 93 MMboe, 101 MMboe, 93 MMboe, and 90 MMboe, respectively, attributable to a noncontrolling interest in Egypt.
 
During 2016, Apache sold a combined 7 MMboe primarily through divestiture transactions in Canada. The Company added 2 MMboe of estimated proved reserves through purchases of minerals in-place and 103 MMboe from extensions, discoveries, and other additions. The Company recorded 66 MMboe of exploration and development adds in North America, primarily associated with Woodford, Bone Springs, and Wolfcamp drilling programs in the Permian Basin (49 MMboe), Montney and Glauconite drilling in Canada (9 MMboe), and Woodford drilling activity in the MidContinent region (8 MMboe).
The international regions contributed 37 MMboe of exploration and development adds during 2016 with Egypt contributing 23 MMboe from onshore exploration and appraisal activity in the Khalda, Khalda 2, and East Beni Suef concessions. The North Sea offshore region contributed 14 MMboe from drilling success in the Beryl, Forties, and Nevis fields.
During 2016, Apache also had combined downward revisions of previously estimated reserves of 159 MMboe. Changes in product prices accounted for 172 MMboe, lease ownership changes accounted for 6 MMboe, offset by engineering and performance upward revisions totaling 19 MMboe.
Approximately 9 percent of Apache’s year-end 2016 estimated proved developed reserves are classified as proved not producing. These reserves relate to zones that are either behind pipe, or that have been completed but not yet produced, or zones that have been produced in the past, but are not now producing because of mechanical reasons. These reserves are considered to be a lower tier of reserves than producing reserves because they are frequently based on volumetric calculations rather than performance data. Future production associated with behind pipe reserves is scheduled to follow depletion of the currently producing zones in the same wellbores. Additional capital may have to be spent to access these reserves. The capital and economic impact of production timing are reflected in this Note 16, under “Future Net Cash Flows.”
Future Net Cash Flows
Future cash inflows as of December 31, 2016 and 2015 were calculated using an unweighted arithmetic average of oil and gas prices in effect on the first day of each month in the respective year, except where prices are defined by contractual arrangements. Operating costs, production and ad valorem taxes and future development costs are based on current costs with no escalation.

The following table sets forth unaudited information concerning future net cash flows for proved oil and gas reserves, net of income tax expense. Income tax expense has been computed using expected future tax rates and giving effect to tax deductions and credits available, under current laws, and which relate to oil and gas producing activities. This information does not purport to present the fair market value of the Company’s oil and gas assets, but does present a standardized disclosure concerning possible future net cash flows that would result under the assumptions used.
 
 
 
United
States
 
Canada
 
Egypt(2)
 
North
Sea
 
Total(2)
 
 
(In millions)
2016
 
 
 
 
 
 
 
 
 
 
Cash inflows
 
$
20,067

 
$
3,625

 
$
8,778

 
$
4,734

 
$
37,204

Production costs
 
(8,858
)
 
(2,582
)
 
(1,967
)
 
(2,255
)
 
(15,662
)
Development costs
 
(1,653
)
 
(1,565
)
 
(1,111
)
 
(2,410
)
 
(6,739
)
Income tax expense
 
(32
)
 

 
(1,775
)
 
(8
)
 
(1,815
)
Net cash flows
 
9,524

 
(522
)
 
3,925

 
61

 
12,988

10 percent discount rate
 
(5,319
)
 
549

 
(956
)
 
798

 
(4,928
)
Discounted future net cash flows(1)
 
$
4,205

 
$
27

 
$
2,969

 
$
859

 
$
8,060

2015
 
 
 
 
 
 
 
 
 
 
Cash inflows
 
$
26,610

 
$
7,345

 
$
11,124

 
$
6,994

 
$
52,073

Production costs
 
(12,178
)
 
(3,841
)
 
(2,185
)
 
(3,209
)
 
(21,413
)
Development costs
 
(2,255
)
 
(1,939
)
 
(1,515
)
 
(2,346
)
 
(8,055
)
Income tax expense
 
(63
)
 

 
(2,326
)
 
(691
)
 
(3,080
)
Net cash flows
 
12,114

 
1,565

 
5,098

 
748

 
19,525

10 percent discount rate
 
(6,876
)
 
(868
)
 
(1,330
)
 
143

 
(8,931
)
Discounted future net cash flows(1)
 
$
5,238

 
$
697

 
$
3,768

 
$
891

 
$
10,594

 
(1)
Estimated future net cash flows before income tax expense, discounted at 10 percent per annum, totaled approximately $9.5 billion and $13.1 billion as of December 31, 2016 and 2015, respectively.
(2)
Includes discounted future net cash flows of approximately $1.0 billion and $1.3 billion in 2016 and 2015, respectively, attributable to a noncontrolling interest in Egypt.
 
The following table sets forth the principal sources of change in the discounted future net cash flows:
 
 
 
For the Year Ended December 31,        
 
 
2016
 
2015
 
2014
 
 
(In millions)
Sales, net of production costs
 
$
(3,479
)
 
$
(4,056
)
 
$
(10,350
)
Net change in prices and production costs
 
(3,835
)
 
(21,710
)
 
(1,029
)
Discoveries and improved recovery, net of related costs
 
1,153

 
1,953

 
6,297

Change in future development costs
 
309

 
705

 
(1,136
)
Previously estimated development costs incurred during the period
 
986

 
1,991

 
4,462

Revision of quantities
 
(574
)
 
(2,292
)
 
256

Purchases of minerals in-place
 
8

 
22

 
508

Accretion of discount
 
1,313

 
3,642

 
4,442

Change in income taxes
 
1,070

 
7,264

 
836

Sales of properties
 
(52
)
 
(5,240
)
 
(4,780
)
Change in production rates and other
 
567

 
(3,343
)
 
(442
)
 
 
$
(2,534
)
 
$
(21,064
)
 
$
(936
)