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 June 30, 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 June 30, 2018
Oil revenues	$	607	$	—	$	649	$	320	$	—		$	1,576
Natural gas revenues	96		—		89		27		—			212
Natural gas liquids revenues	139		—		4		5		—			148
Total Oil and Gas Production Revenues	$	842	$	—	$	742	$	352	$	—		$	1,936
Operating Income (Loss)⁽⁴⁾	$	192	$	—	$	401	$	146	$	(1	)	$	738
Other Income (Expense):
Gain on divestitures, net												2
Other⁽⁵⁾												(9		)
General and administrative												(117		)
Transaction, reorganization, and separation												(12		)
Financing costs, net												(94		)
Income Before Income Taxes												$	508

For the Six Months Ended June 30, 2018
Oil revenues	$	1,160	$	—	$	1,218	$	591	$	—		$	2,969
Natural gas revenues	206		—		177		51		—			434
Natural gas liquids revenues	250		—		7		9		—			266
Total Oil and Gas Production Revenues	$	1,616	$	—	$	1,402	$	651	$	—		$	3,669
Operating Income (Loss)⁽⁴⁾	$	376	$	—	$	737	$	214	$	(2	)	$	1,325
Other Income (Expense):
Gain on divestitures, net												9
Other⁽⁵⁾												(2		)
General and administrative												(231		)
Transaction, reorganization, and separation												(12		)
Financing costs, net												(193		)
Income Before Income Taxes												$	896
Total Assets	$	14,250	$	—	$	4,471	$	3,148	$	41		$	21,910



	United States			Canada⁽¹⁾			Egypt^(2,3)		North Sea		Other International			Total
	(In millions)
For the Quarter Ended June 30, 2017
Oil revenues	$	355		$	47		$	423	$	225	$	—		$	1,050
Natural gas revenues	84			40			95		14		—			233
Natural gas liquids revenues	52			6			3		2		—			63
Total Oil and Gas Production Revenues	$	491		$	93		$	521	$	241	$	—		$	1,346
Operating Income (Loss)⁽⁶⁾	$	(17	)	$	(18	)	$	213	$	4	$	(2	)	$	180
Other Income (Expense):
Loss on divestitures, net														(21		)
Other														59
General and administrative														(106		)
Transaction, reorganization, and separation														(4		)
Financing costs, net														(99		)
Income Before Income Taxes														$	9

For the Six Months Ended June 30, 2017
Oil revenues	$	752		$	96		$	909	$	465	$	—		$	2,222
Natural gas revenues	169			85			197		37		—			488
Natural gas liquids revenues	122			14			6		6		—			148
Total Oil and Gas Production Revenues	$	1,043		$	195		$	1,112	$	508	$	—		$	2,858
Operating Income (Loss)⁽⁶⁾	$	43		$	(31	)	$	514	$	42	$	(23	)	$	545
Other Income (Expense):
Gain on divestitures, net														320
Other														84
General and administrative														(209		)
Transaction, reorganization, and separation														6
Financing costs, net														(199		)
Income Before Income Taxes														$	547
Total Assets	$	12,530		$	1,476		$	4,778	$	3,772	$	46		$	22,602


(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 $165 million, $15 million, and $1 million for oil, natural gas, and natural gas liquids, respectively, for the second quarter of 2018, and $304 million, $30 million, and $2 million, for oil, natural gas, and natural gas liquids, respectively, for the first six months of 2018.

(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 leasehold impairments totaling $21 million for the second quarter of 2018. The operating income of U.S. includes leasehold impairments totaling $37 million for the first six months of 2018.


(5)	Included in Other are sales proceeds related to U.S. third-party purchased oil and gas totaling $98 million and $202 million for the second quarter and first six months of 2018, respectively, which are determined to be revenue from customers.


(6)	The operating income (loss) of U.S. and Canada includes leasehold impairments totaling $38 million and $1 million, respectively, for the second quarter of 2017. The operating income (loss) of U.S., Canada and North Sea includes leasehold and other asset impairments totaling $52 million, $2 million, and $8 million, respectively, for the first six months of 2017.