BUSINESS SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

As of September 30, 2020, 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 and other international locations that may, over time, result in reportable discoveries and development opportunities. Apache’s Upstream business explores for, develops, and produces natural gas, crude oil, and natural gas liquids. Apache’s 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. Financial information for each segment is presented below:

	Egypt(1)		North Sea			U.S.		Altus		Intersegment Eliminations & Other			Total(2)
	Upstream							Midstream
	(In millions)
For the Quarter Ended September 30, 2020
Revenues:
Oil revenues	$	303	$	179		$	303	$	—	$	—		$	785
Natural gas revenues	74		13			77		—		—			164
Natural gas liquids revenues	2		5			90		—		—			97
Oil, natural gas, and natural gas liquids production revenues	379		197			470		—		—			1,046
Purchased oil and gas sales	—		—			73		1		—			74
Midstream service affiliate revenues	—		—			—		39		(39		)	—
	379		197			543		40		(39		)	1,120
Operating Expenses:
Lease operating expenses	102		79			79		—		(1		)	259
Gathering, processing, and transmission	8		10			74		9		(38		)	63
Purchased oil and gas costs	—		—			74		1		—			75
Taxes other than income	—		—			30		4		—			34
Exploration	10		10			34		—		4			58
Depreciation, depletion, and amortization	144		90			161		3		—			398
Asset retirement obligation accretion	—		18			8		1		—			27
	264		207			460		18		(35		)	914
Operating Income (Loss)(3)	$	115	$	(10	)	$	83	$	22	$	(4	)	206
Other Income (Expense):
Derivative instrument gains, net													16
Loss on divestitures, net													(1		)
Other, net													9
General and administrative													(52		)
Transaction, reorganization, and separation													(7		)
Financing costs, net													(99		)
Income Before Income Taxes													$	72

	Egypt(1)			North Sea			U.S.			Altus		Intersegment Eliminations & Other			Total(2)
	Upstream									Midstream
	(In millions)
For the Nine Months Ended September 30, 2020
Revenues:
Oil revenues	$	823		$	578		$	929		$	—	$	—		$	2,330
Natural gas revenues	209			39			169			—		—			417
Natural gas liquids revenues	6			15			211			—		—			232
Oil, natural gas, and natural gas liquids production revenues	1,038			632			1,309			—		—			2,979
Purchased oil and gas sales	—			—			235			2		—			237
Midstream service affiliate revenues	—			—			—			111		(111		)	—
	1,038			632			1,544			113		(111		)	3,216
Operating Expenses:
Lease operating expenses	312			234			313			—		(1		)	858
Gathering, processing, and transmission	31			37			219			29		(110		)	206
Purchased oil and gas costs	—			—			205			2		—			207
Taxes other than income	—			—			79			11		—			90
Exploration	51			26			100			—		10			187
Depreciation, depletion, and amortization	463			278			632			9		—			1,382
Asset retirement obligation accretion	—			54			24			3		—			81
Impairments	529			7			3,956			—		—			4,492
	1,386			636			5,528			54		(101		)	7,503
Operating Income (Loss)(3)	$	(348	)	$	(4	)	$	(3,984	)	$	59	$	(10	)	(4,287		)
Other Income (Expense):
Derivative instrument losses, net															(262		)
Gain on divestitures															24
Other															41
General and administrative															(214		)
Transaction, reorganization, and separation															(44		)
Financing costs, net															(168		)
Loss Before Income Taxes															$	(4,910	)
Total Assets(4)	$	3,052		$	2,238		$	5,708		$	1,741	$	136		$	12,875

	Egypt(1)		North Sea		U.S.			Altus			Intersegment Eliminations & Other			Total(2)
	Upstream							Midstream
	(In millions)
For the Quarter Ended September 30, 2019
Revenues:
Oil revenues	$	472	$	231	$	504		$	—		$	—		$	1,207
Natural gas revenues	72		14		50			—			—			136
Natural gas liquids revenues	2		5		88			—			—			95
Oil, natural gas, and natural gas liquids production revenues	546		250		642			—			—			1,438
Purchased oil and gas sales	—		—		30			—			—			30
Midstream service affiliate revenues	—		—		—			34			(34		)	—
	546		250		672			34			(34		)	1,468
Operating Expenses:
Lease operating expenses	115		76		159			—			—			350
Gathering, processing, and transmission	9		9		69			13			(34		)	66
Purchased oil and gas costs	—		—		23			—			—			23
Taxes other than income	—		—		41			3			—			44
Exploration	27		—		25			—			4			56
Depreciation, depletion, and amortization	177		71		452			11			—			711
Asset retirement obligation accretion	—		19		8			—			—			27
Impairments	—		—		—			9			—			9
	328		175		777			36			(30		)	1,286
Operating Income (Loss)(3)	$	218	$	75	$	(105	)	$	(2	)	$	(4	)	182
Other Income (Expense):
Derivative instrument losses, net														(2		)
Other														34
General and administrative														(98		)
Transaction, reorganization, and separation														(7		)
Financing costs, net														(95		)
Income Before Income Taxes														$	14

	Egypt(1)		North Sea		U.S.			Altus		Intersegment Eliminations & Other			Total(2)
	Upstream							Midstream
	(In millions)
For the Nine Months Ended September 30, 2019
Revenues:
Oil revenues	$	1,509	$	868	$	1,537		$	—	$	—		$	3,914
Natural gas revenues	223		64		203			—		—			490
Natural gas liquids revenues	9		16		261			—		—			286
Oil, natural gas, and natural gas liquids production revenues	1,741		948		2,001			—		—			4,690
Purchased oil and gas sales	—		—		72			—		—			72
Midstream service affiliate revenues	—		—		—			92		(92		)	—
	1,741		948		2,073			92		(92		)	4,762
Operating Expenses:
Lease operating expenses	365		240		501			—		(2		)	1,104
Gathering, processing, and transmission	31		32		214			43		(90		)	230
Purchased oil and gas costs	—		—		60			—		—			60
Taxes other than income	—		—		131			10		—			141
Exploration	89		2		117			—		12			220
Depreciation, depletion, and amortization	538		269		1,125			27		—			1,959
Asset retirement obligation accretion	—		56		23			1		—			80
Impairments	—		—		240			9		—			249
	1,023		599		2,411			90		(80		)	4,043
Operating Income (Loss)(3)	$	718	$	349	$	(338	)	$	2	$	(12	)	719
Other Income (Expense):
Derivative instrument losses, net													(40		)
Gain on divestitures, net													20
Other, net													33
General and administrative													(323		)
Transaction, reorganization, and separation													(17		)
Financing costs, net													(365		)
Income Before Income Taxes													$	27
Total Assets(4)	$	3,851	$	2,529	$	12,289		$	2,648	$	88		$	21,405

(1) Includes revenue from non-customers of:

	For the Quarter Ended September 30,				For the Nine Months Ended September 30,
	2020		2019		2020		2019
	(In millions)
Oil	$	38	$	98	$	65	$	316
Natural gas	6		9		9		30
Natural gas liquids	—		—		—		1

(2) Includes a noncontrolling interest in Egypt and Altus.

(3) The operating income of U.S. and Egypt includes leasehold and other asset impairments totaling $34 million and $2 million, respectively, for the third quarter of 2020. The operating loss of U.S., Egypt, and North Sea includes leasehold and other asset impairments totaling $4.0 billion, $535 million, and $7 million, respectively, for the first nine months of 2020. The operating income (loss) of U.S., Altus Midstream, and Egypt includes leasehold and other asset impairments totaling $10 million, $9 million and $2 million, respectively, for the third quarter of 2019. The operating income (loss) of U.S., Altus Midstream, and Egypt includes leasehold and other asset impairments totaling $308 million, $9 million, and $6 million, respectively, for the first nine months of 2019.

(4)

Intercompany balances are excluded from total assets.