DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of commodity derivative positions

As of March 31, 2018, Apache had the following open crude oil derivative positions:

		Put Options(1)
Production Period	Settlement Index	Mbbls	Weighted Average Strike Price
April—December 2018	Dated Brent	2,750	$50.00
July—December 2018	Dated Brent	5,520	$58.00
July—December 2018	NYMEX WTI	5,520	$53.00

(1) The remaining unamortized premium paid as of March 31, 2018, was $27 million.

		Fixed-Price Swaps		Collars			Call Options(2)
Production Period	Settlement Index	Mbbls	Weighted Average Fixed Price	Mbbls	Weighted Average Floor Price	Weighted Average Ceiling Price	Mbbls	Strike Price
April—June 2018	NYMEX WTI	1,365	$51.23	1,365	$45.00	$56.45	—	—
April—June 2018	Dated Brent	1,092	$54.57	1,092	$50.00	$58.77	—	—
April—December 2018	NYMEX WTI	—	—	5,088	$45.00	$57.00	5,088	$60.03

(2) The remaining unamortized premium paid as of March 31, 2018, was $8 million.

As of March 31, 2018, Apache had the following open natural gas derivative positions:

		Fixed-Price Swaps
Production Period	Settlement Index	MMBtu (in 000’s)	Weighted Average Fixed Price
April—June 2018	NYMEX Henry Hub	28,210	$3.02
July—December 2018	NYMEX Henry Hub	33,580	$2.96

As of March 31, 2018, Apache had the following open natural gas financial basis swap contracts:

Production Period	Settlement Index	MMBtu (in 000’s)	Weighted Average Price Differential
July—December 2018	NYMEX Henry Hub/Waha	33,120	$(0.53)
October—December 2018	NYMEX Henry Hub/Waha	1,380	$(0.51)
January—March 2019	NYMEX Henry Hub/Waha	1,350	$(0.54)
January—June 2019	NYMEX Henry Hub/Waha	32,580	$(0.53)
January—December 2019	NYMEX Henry Hub/Waha	14,600	$(0.45)

Schedule of derivative assets measured at fair value

The following table presents the Company’s derivative assets and liabilities measured at fair value on a recurring basis:

	Fair Value Measurements Using
	Quoted Price in Active Markets (Level 1)		Significant Other Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value		Netting(1)			Carrying Amount
	(In millions)
March 31, 2018
Assets:
Commodity Derivative Instruments	$	—	$	118	$	—	$	118	$	(70	)	$	48
Liabilities:
Commodity Derivative Instruments	—		94		—		94		(70		)	24
December 31, 2017
Assets:
Commodity Derivative Instruments	$	—	$	67	$	—	$	67	$	(43	)	$	24
Liabilities:
Commodity Derivative Instruments	—		107		—		107		(43		)	64

(1) The derivative fair values are based on analysis of each contract on a gross basis, excluding the impact of netting agreements with counterparties.

Schedule of derivative liabilities measured at fair value

The following table presents the Company’s derivative assets and liabilities measured at fair value on a recurring basis:

	Fair Value Measurements Using
	Quoted Price in Active Markets (Level 1)		Significant Other Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value		Netting(1)			Carrying Amount
	(In millions)
March 31, 2018
Assets:
Commodity Derivative Instruments	$	—	$	118	$	—	$	118	$	(70	)	$	48
Liabilities:
Commodity Derivative Instruments	—		94		—		94		(70		)	24
December 31, 2017
Assets:
Commodity Derivative Instruments	$	—	$	67	$	—	$	67	$	(43	)	$	24
Liabilities:
Commodity Derivative Instruments	—		107		—		107		(43		)	64

(1) The derivative fair values are based on analysis of each contract on a gross basis, excluding the impact of netting agreements with counterparties.

Schedule of derivative instruments on consolidated balance sheet and statement of consolidated operations

The carrying value of the Company’s derivative assets and liabilities and their locations on the consolidated balance sheet are as follows:

	March 31, 2018		December 31, 2017
	(In millions)
Current Assets: Prepaid assets and other	$	23	$	8
Other Assets: Deferred charges and other	25		16
Total Assets	$	48	$	24
Current Liabilities: Other current liabilities	$	24	$	64
Total Liabilities	$	24	$	64

Derivative Activity Recorded in the Statement of Consolidated Operations

The following table summarizes the effect of derivative instruments on the Company’s statement of consolidated operations:

	For the Quarter Ended March 31,
	2018			2017
	(In millions)
Realized loss:
Derivative settlements	$	(42	)	$	—
Amortization of call and put premium	(5		)	—
Unrealized gain	49			—
Derivative instrument gain (losses), net	$	2		$	—