BUSINESS SEGMENT INFORMATION

Apache is engaged in a single line of business. Both domestically and internationally, the Company explores for, develops, and produces natural gas, crude oil, and natural gas liquids. At March 31, 2018, the Company had production in three reporting segments: the U.S., Egypt, and offshore the U.K. in the North Sea (North Sea). Apache also has exploration interests in Suriname that may, over time, result in a reportable discovery and development opportunity. Financial information for each area is presented below:



	United States		Canada⁽¹⁾			Egypt^(2,3)		North Sea		Other International			Total
	(In millions)
For the Quarter Ended March 31, 2018
Oil revenues	$	552	$	—		$	569	$	271	$	—		$	1,392
Natural gas revenues	106		—			88		24		—			218
Natural gas liquids revenues	111		—			3		4		—			118
Total Oil and Gas Production Revenues	$	769	$	—		$	660	$	299	$	—		$	1,728
Operating Income (Loss)⁽⁴⁾	$	184	$	—		$	336	$	68	$	(1	)	$	587
Other Income (Expense):
Gain on divestitures, net													7
Other⁽⁵⁾													7
General and administrative													(114		)
Financing costs, net													(99		)
Income Before Income Taxes													$	388
Total Assets	$	13,927	$	—		$	4,813	$	3,009	$	42		$	21,791

For the Quarter Ended March 31, 2017
Oil revenues	$	397	$	49		$	486	$	240	$	—		$	1,172
Natural gas revenues	85		45			102		23		—			255
Natural gas liquids revenues	70		8			3		4		—			85
Total Oil and Gas Production Revenues	$	552	$	102		$	591	$	267	$	—		$	1,512
Operating Income (Loss)⁽⁴⁾	$	60	$	(13	)	$	301	$	38	$	(21	)	$	365
Other Income (Expense):
Gain on divestitures, net													341
Other													25
General and administrative													(103		)
Transaction, reorganization, and separation													10
Financing costs, net													(100		)
Income Before Income Taxes													$	538
Total Assets	$	12,361	$	1,556		$	5,006	$	3,634	$	53		$	22,610


(1)	Apache exited its Canadian operations in the third quarter of 2017.


(2)	Includes a noncontrolling interest in Egypt.


(3)	Includes revenue from non-customer of $139 million, $15 million, and $1 million for oil, natural gas, and natural gas liquids, respectively.

(4)

Operating income (loss) consists of oil and gas production revenues less lease operating expenses, gathering, transmission, and processing costs, taxes other than income, exploration costs, depreciation, depletion, and amortization, asset retirement obligation accretion, and impairments. The operating income of U.S. includes asset impairments totaling $16 million for the first quarter of 2018. The operating income of U.S. and North Sea includes asset impairments totaling $15 million and $8 million, respectively, for the first quarter of 2017.


(5)	Included in Other are sales proceeds related to U.S. third-party purchased oil and gas totaling $104 million for the period ending March 31, 2018, which are determined to be revenue from customers.