DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of commodity derivative positions

As of June 30, 2019, Apache had the following open crude oil financial basis swap contracts:

Production Period	Settlement Index	Mbbls	Weighted Average Price Differential
July—September 2019	Midland-WTI/Cushing-WTI	2,484	$(8.60)
October—December 2019	Midland-WTI/Cushing-WTI	1,380	$(3.72)

As of June 30, 2019, 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 2019	NYMEX Henry Hub/Waha	7,360	$(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)
June 30, 2019
Assets:
Commodity Derivative Instruments	$	—	$	5	$	—	$	5	$	(4	)	$	1
Foreign Currency Derivative Instruments	—		—		—		—		—			—
Liabilities:
Commodity Derivative Instruments	—		27		—		27		(4		)	23
Preferred Units Embedded Derivative	—		—		94		94		—			94
December 31, 2018
Assets:
Commodity Derivative Instruments	$	—	$	69	$	—	$	69	$	(14	)	$	55
Liabilities:
Commodity Derivative Instruments	—		25		—		25		(14		)	11

(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)
June 30, 2019
Assets:
Commodity Derivative Instruments	$	—	$	5	$	—	$	5	$	(4	)	$	1
Foreign Currency Derivative Instruments	—		—		—		—		—			—
Liabilities:
Commodity Derivative Instruments	—		27		—		27		(4		)	23
Preferred Units Embedded Derivative	—		—		94		94		—			94
December 31, 2018
Assets:
Commodity Derivative Instruments	$	—	$	69	$	—	$	69	$	(14	)	$	55
Liabilities:
Commodity Derivative Instruments	—		25		—		25		(14		)	11

(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:

	June 30, 2019		December 31, 2018
	(In millions)
Current Assets: Other current assets	$	1	$	55
Total Assets	$	1	$	55
Current Liabilities: Other current liabilities	$	23	$	11
Deferred Credits and Other Noncurrent Liabilities: Other	94		—
Total Liabilities	$	117	$	11

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 June 30,						For the Six Months Ended June 30,
	2019			2018			2019			2018
	(In millions)
Realized gain (loss):
Derivative settlements, realized gain (loss)	$	13		$	(75	)	$	28		$	(117	)
Amortization of put premium, realized loss	—			(5		)	—			(10		)
Unrealized gain (loss)	(21		)	55			(66		)	104
Derivative instrument losses, net	$	(8	)	$	(25	)	$	(38	)	$	(23	)