BUSINESS SEGMENT INFORMATION

As of December 31, 2018, Apache is engaged in exploration and production (Upstream) activities across three operating segments: Egypt, North Sea, and the U.S. Apache also has exploration interests in Suriname that may, over time, result in a reportable discovery and development opportunity. Apache’s Upstream business explores for, develops, and produces natural gas, crude oil and natural gas liquids. During 2018, Apache established a new reporting segment for its U.S. midstream business separate from its upstream oil and gas development activities. The midstream business is operated by Altus, which owns, develops, and operates a midstream energy asset network in the Permian Basin of West Texas, anchored by midstream service contracts to Apache’s production from its Alpine High resource play. Altus primarily generates revenue by providing fee-based natural gas gathering, compression, processing, and transportation services. Financial information for each segment is presented below:



	Egypt⁽²⁾		North Sea		U.S.		Altus Midstream			Intersegment Eliminations & Other			Total⁽¹⁾
	Upstream						Altus Midstream			Intersegment Eliminations & Other			Total⁽¹⁾
	(In millions)
2018
Oil revenues	$	2,396	$	1,179	$	2,271	$	—		$	—		$	5,846
Natural gas revenues	339		122		458		—			—			919
Natural gas liquids revenues	13		20		550		—			—			583
Oil and gas production revenues	2,748		1,321		3,279		—			—			7,348
Midstream service affiliate revenues	—		—		—		77			(77		)	—
Operating Expenses:
Lease operating expenses	428		341		670		—			—			1,439
Gathering, transmission, and processing	47		42		282		54			(77		)	348
Taxes other than income	—		—		207		8			—			215
Exploration	88		192		219		—			4			503
Depreciation, depletion, and amortization	745		375		1,266		19			—			2,405
Asset retirement obligation accretion	—		75		32		1			—			108
Impairments	63		10		438		—			—			511
	1,371		1,035		3,114		82			(73		)	5,529
Operating Income (Loss)	$	1,377	$	286	$	165	$	(5	)	$	(4	)	1,819
Other Income (Expense):
Gain on divestitures, net													23
Derivative instrument gains (losses), net													(17		)
Other⁽³⁾													70
General and administrative													(431		)
Transaction, reorganization, and separation													(28		)
Financing costs, net													(478		)
Income Before Income Taxes													$	958

Net Property and Equipment	$	2,856	$	2,148	$	12,145	$	1,227		$	45		$	18,421
Total Assets	$	4,260	$	2,456	$	12,962	$	1,857		$	47		$	21,582
Additions to Net Property and Equipment	$	594	$	223	$	2,544	$	545		$	8		$	3,914



	Egypt		North Sea			Canada⁽⁴⁾			U.S.		Altus Midstream			Intersegment Eliminations & Other			Total⁽¹⁾
	Upstream										Altus Midstream			Intersegment Eliminations & Other			Total⁽¹⁾
	(In millions)
2017
Oil revenues	$	1,901	$	971		$	110		$	1,616	$	—		$	—		$	4,598
Natural gas revenues	395		92			104			368		—			—			959
Natural gas liquids revenues	11		15			17			287		—			—			330
Oil and gas production revenues	2,307		1,078			231			2,271		—			—			5,887
Midstream service affiliate revenues	—		—			—			—		15			(15		)	—
Operating Expenses:
Lease operating expenses	362		335			103			584		—			—			1,384
Gathering, transmission, and processing	44		30			34			86		16			(15		)	195
Taxes other than income	—		(14		)	12			153		—			—			151
Exploration	62		86			11			363		—			27			549
Depreciation, depletion, and amortization	758		446			76			994		6			—			2,280
Asset retirement obligation accretion	—		72			27			31		—			—			130
Impairments	—		8			—			—		—			—			8
	1,226		963			263			2,211		22			12			4,697
Operating Income (Loss)	$	1,081	$	115		$	(32	)	$	60	$	(7	)	$	(27	)	1,190
Other Income (Expense):
Gain on divestitures, net																	627
Derivative instrument gains (losses), net																	(135		)
Other																	44
General and administrative																	(395		)
Transaction, reorganization, and separation																	(16		)
Financing costs, net																	(397		)
Income Before Income Taxes																	$	918

Net Property and Equipment	$	3,099	$	2,553		$	—		$	11,370	$	700		$	37		$	17,759
Total Assets	$	4,658	$	2,977		$	—		$	13,522	$	706		$	59		$	21,922
Additions to Net Property and Equipment	$	517	$	374		$	—		$	1,847	$	550		$	14		$	3,302



	Egypt		North Sea			Canada⁽⁴⁾			U.S.			Altus Midstream		Intersegment Eliminations & Other			Total⁽¹⁾
	Upstream											Altus Midstream		Intersegment Eliminations & Other			Total⁽¹⁾
	(In millions)
2016
Oil revenues	$	1,657	$	836		$	180		$	1,499		$	—	$	—		$	4,172
Natural gas revenues	389		118			146			314			—		—			967
Natural gas liquids revenues	11		16			17			184			—		—			228
Oil and gas production revenues	2,057		970			343			1,997			—		—			5,367
Midstream service affiliate revenues	—		—			—			—			—		—			—
Operating Expenses:
Lease operating expenses	446		314			181			553			—		—			1,494
Gathering, transmission, and processing	44		8			68			80			—		—			200
Taxes other than income	—		(33		)	20			139			—		—			126
Exploration	48		37			88			285			—		15			473
Depreciation, depletion, and amortization	778		519			183			1,138			—		—			2,618
Asset retirement obligation accretion	—		75			47			34			—		—			156
Impairments	1		655			367			80			—		—			1,103
	1,317		1,575			954			2,309			—		15			6,170
Operating Income (Loss)	$	740	$	(605	)	$	(611	)	$	(312	)	$	—	$	(15	)	(803		)
Other Income (Expense):
Gain on divestitures, net																	21
Other																	(34		)
General and administrative																	(410		)
Transaction, reorganization, and separation																	(39		)
Financing costs, net																	(417		)
Net Loss From Continuing Operations Before Income Taxes																	$	(1,682	)

Net Property and Equipment	$	3,362	$	2,834		$	1,464		$	11,012		$	156	$	39		$	18,867
Total Assets	$	4,893	$	3,584		$	1,591		$	12,247		$	156	$	48		$	22,519
Additions to Net Property and Equipment	$	459	$	260		$	34		$	770		$	156	$	2		$	1,681


(1)	Includes a noncontrolling interest in Egypt for years 2018, 2017, and 2016, and Altus for the year 2018.


(2)	Includes revenue from non-customers of $592 million, $58 million, and $2 million for oil, natural gas, and natural gas liquids, respectively, for the year ended 2018.


(3)	Included in Other are sales proceeds related to U.S. third-party purchased oil and gas totaling $357 million for the year ended 2018, which is determined to be revenue from customers.


(4)	During 2017, Apache completed the sale of its Canadian operations. For more information regarding this divestiture, please refer to Note 2—Acquisitions and Divestitures.