ACQUISITIONS AND DIVESTITURES

6 Months Ended

Jun. 30, 2019

Business Combinations [Abstract]

ACQUISITIONS AND DIVESTITURES

ACQUISITIONS AND DIVESTITURES

2019 Activity

During the second quarter and first six months of 2019, Apache completed leasehold and property acquisitions for total cash consideration of $19 million and $34 million, respectively, primarily in its U.S. onshore regions.

In the second quarter of 2019, Apache completed the sale of certain non-core assets in Oklahoma that had a carrying value of $218 million for aggregate expected cash proceeds of approximately $231 million. The Company recognized a $13 million gain during the second quarter of 2019 in association with this sale. During the first six months of 2019, the Company also completed the sale of certain other non-core assets, primarily in the Permian region, in multiple transactions for total cash proceeds of $11 million. The Company recognized a total net gain of approximately $7 million upon closing of these transactions.

In May 2019, Apache separately entered into an agreement to sell non-core assets in Oklahoma and Texas for $367 million, subject to normal and customary closing adjustments, plus the assumption of asset retirement obligations of $49 million. As a result of the agreement, the Company performed a fair value assessment of the assets and recorded impairments of $240 million to the carrying value of proved and unproved oil and gas properties, other fixed assets, and working capital. The remaining balance of proved oil and gas properties totaling $379 million were classified as current assets held for sale, and the asset retirement obligations were classified as a current liability held for sale as of June 30, 2019. The transaction closed in the third quarter of 2019, and no material gain or loss is expected to be recognized.

2018 Activity

During the second quarter and first six months of 2018, Apache completed $26 million and $38 million, respectively, of leasehold and property acquisitions primarily in its U.S. onshore and Egypt regions. During the first six months of 2018, the Company also completed the sale of certain non-core assets, primarily in the Permian region, in multiple transactions for total cash proceeds of $13 million. The Company recognized a total net gain of approximately $9 million during the first six months upon closing of these transactions.