0001193125-13-210800.txt : 20130509 0001193125-13-210800.hdr.sgml : 20130509 20130509152241 ACCESSION NUMBER: 0001193125-13-210800 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20130331 FILED AS OF DATE: 20130509 DATE AS OF CHANGE: 20130509 FILER: COMPANY DATA: COMPANY CONFORMED NAME: APACHE OFFSHORE INVESTMENT PARTNERSHIP CENTRAL INDEX KEY: 0000727538 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 411464066 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-13546 FILM NUMBER: 13828327 BUSINESS ADDRESS: STREET 1: 2000 POST OAK BLVD STREET 2: SUITE 100 CITY: HOUSTON STATE: TX ZIP: 77056-4400 BUSINESS PHONE: 7132966000 MAIL ADDRESS: STREET 1: 2000 POST OAK BLVD STREET 2: SUITE 100 CITY: HOUSTON STATE: TX ZIP: 77056-4400 10-Q 1 d516324d10q.htm FORM 10-Q Form 10-Q

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10-Q

 

 

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2013

OR

 

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number: 0-13546

 

 

APACHE OFFSHORE INVESTMENT PARTNERSHIP

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   41-1464066

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

One Post Oak Central, 2000 Post Oak Boulevard, Suite 100, Houston, Texas 77056-4400

(Address of principal executive offices)

Registrant’s telephone number, including area code: (713) 296-6000

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer   ¨    Accelerated filer   ¨
Non-accelerated filer   ¨  (Do not check if a smaller reporting company)    Smaller reporting company   x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

 

Number of registrant’s units outstanding as of March 31, 2013.

     1,022   

 

 

 


PART I – FINANCIAL INFORMATION

ITEM 1 – FINANCIAL STATEMENTS

APACHE OFFSHORE INVESTMENT PARTNERSHIP

STATEMENT OF CONSOLIDATED INCOME

(Unaudited)

 

     For the Three Months
Ended March 31,
 
     2013      2012  

REVENUES:

     

Oil and gas sales

   $ 1,021,490      $ 1,394,766  
  

 

 

    

 

 

 
     1,021,490        1,394,766  
  

 

 

    

 

 

 

EXPENSES:

     

Depreciation, depletion and amortization

     213,373        277,621  

Asset retirement obligation accretion

     31,718        29,860  

Lease operating expenses

     364,507        337,798  

Gathering and transportation costs

     30,318        59,689  

Administrative

     98,000        99,250  
  

 

 

    

 

 

 
     737,916        804,218  
  

 

 

    

 

 

 

NET INCOME

   $ 283,574      $ 590,548  
  

 

 

    

 

 

 

NET INCOME ALLOCATED TO:

     

Managing Partner

   $ 95,749      $ 168,246  

Investing Partners

     187,825        422,302  
  

 

 

    

 

 

 
   $ 283,574      $ 590,548  
  

 

 

    

 

 

 

NET INCOME PER INVESTING PARTNER UNIT

   $ 184      $ 413  
  

 

 

    

 

 

 

WEIGHTED AVERAGE INVESTING PARTNER UNITS OUTSTANDING

     1,021.5        1,021.5  
  

 

 

    

 

 

 

The accompanying notes to consolidated financial statements

are an integral part of this statement.

 

1


APACHE OFFSHORE INVESTMENT PARTNERSHIP

STATEMENT OF CONSOLIDATED CASH FLOWS

(Unaudited)

 

     For the Three Months
Ended March 31,
 
     2013     2012  

CASH FLOWS FROM OPERATING ACTIVITIES:

    

Net income

   $ 283,574     $ 590,548  

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation, depletion and amortization

     213,373       277,621  

Asset retirement obligation accretion

     31,718       29,860  

Changes in operating assets and liabilities:

    

(Increase) decrease in accrued receivables

     15,098       154,188  

Increase (decrease) in receivable from/payable to Apache Corporation

     (107,644     (98,921

Increase (decrease) in accrued operating expenses

     (5,328     (282,045

Increase (decrease) in deferred credits and other

     (153,504     —    
  

 

 

   

 

 

 

Net cash provided by operating activities

     277,287       671,251  
  

 

 

   

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

    

Additions to oil and gas properties

     (337     (33,182
  

 

 

   

 

 

 

Net cash used in investing activities

     (337     (33,182
  

 

 

   

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

    

Distributions to Managing Partner

     (94,530     (226,202
  

 

 

   

 

 

 

Net cash used in financing activities

     (94,530     (226,202
  

 

 

   

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

     182,420       411,867  

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR

     3,118,789       1,404,394  
  

 

 

   

 

 

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

   $ 3,301,209     $ 1,816,261  
  

 

 

   

 

 

 

The accompanying notes to consolidated financial statements

are an integral part of this statement.

 

2


APACHE OFFSHORE INVESTMENT PARTNERSHIP

CONSOLIDATED BALANCE SHEET

(Unaudited)

 

     March 31,
2013
    December 31,
2012
 
ASSETS     

CURRENT ASSETS:

    

Cash and cash equivalents

   $ 3,301,209     $ 3,118,789  

Accrued revenues receivable

     103,749       118,847  

Receivable from Apache Corporation

     32,623       —    
  

 

 

   

 

 

 
     3,437,581       3,237,636  
  

 

 

   

 

 

 

OIL AND GAS PROPERTIES, on the basis of full cost accounting:

    

Proved properties

     194,606,348       194,451,931  

Less – Accumulated depreciation, depletion and amortization

     (185,685,331     (185,471,958
  

 

 

   

 

 

 
     8,921,017       8,979,973  
  

 

 

   

 

 

 
   $ 12,358,598     $ 12,217,609  
  

 

 

   

 

 

 
LIABILITIES AND PARTNERS’ CAPITAL     

CURRENT LIABILITIES:

    

Payable to Apache Corporation

   $ —       $ 75,021  

Accrued operating expenses

     119,029       124,357  

Accrued development costs

     63,744       35,978  
  

 

 

   

 

 

 
     182,773       235,356  
  

 

 

   

 

 

 

ASSET RETIREMENT OBLIGATION

     2,166,335       2,161,807  
  

 

 

   

 

 

 

PARTNERS’ CAPITAL:

    

Managing Partner

     444,024       442,805  

Investing Partners (1,021.5 units outstanding)

     9,565,466       9,377,641  
  

 

 

   

 

 

 
     10,009,490       9,820,446  
  

 

 

   

 

 

 
   $ 12,358,598     $ 12,217,609  
  

 

 

   

 

 

 

The accompanying notes to consolidated financial statements

are an integral part of this statement.

 

3


APACHE OFFSHORE INVESTMENT PARTNERSHIP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Apache Offshore Investment Partnership, a Delaware general partnership (the Investment Partnership), was formed on October 31, 1983, consisting of Apache Corporation, a Delaware corporation (Apache or the Managing Partner), as Managing Partner and public investors (the Investing Partners). The Investment Partnership invested its entire capital in Apache Offshore Petroleum Limited Partnership, a Delaware limited partnership (the Operating Partnership). The primary business of the Investment Partnership is to serve as the sole limited partner of the Operating Partnership. The accompanying financial statements include the accounts of both the Investment Partnership and the Operating Partnership. The term “Partnership”, as used herein, refers to the Investment Partnership or the Operating Partnership, as the case may be.

These financial statements have been prepared by the Partnership, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). They reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods, on a basis consistent with the annual audited financial statements. All such adjustments are of a normal, recurring nature. Certain information, accounting policies, and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) have been omitted pursuant to such rules and regulations, although the Partnership believes that the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, and which contains a summary of the Partnership’s significant accounting policies and other disclosures.

 

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

As of March 31, 2013, the Partnership’s significant accounting policies are consistent with those discussed in Note 2 of its consolidated financial statements contained in the Annual Report on Form 10-K for the fiscal year ended December 31, 2012.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates with regard to these financial statements include the estimate of proved oil and gas reserves and related present value estimates of future net cash flow therefrom and asset retirement obligations. Actual results could differ from those estimates.

 

2. RECEIVABLE FROM / PAYABLE TO APACHE CORPORATION

The receivable from/payable to Apache represents the net result of the Investing Partners’ revenue and expenditure transactions in the current month. Generally, cash in this amount will be paid by Apache to the Partnership or transferred to Apache in the month after the Partnership’s transactions are processed and the net results of operations are determined.

 

3. RIGHT OF PRESENTMENT

As provided in the Partnership Agreement, as amended (the Amended Partnership Agreement), a first right of presentment valuation was computed during the first quarter of 2013. The per-unit value was determined to be $15,412 based on the valuation date of December 31, 2012. The Partnership will not repurchase any Investing Partner Units (Units) during the first half of 2013 as a result of the Partnership’s limited amount of cash available for discretionary purposes.

The Partnership is not in a position to predict how many Units will be presented for repurchase during the remainder of 2013 and cannot, at this time, determine if the Partnership will have sufficient funds available to repurchase any Units. The Partnership has no obligation to purchase any Units presented to the extent it determines that it has insufficient funds for such purchases.

 

4


4. ASSET RETIREMENT OBLIGATIONS

The following table describes the changes to the Partnership’s asset retirement obligation liability for the first three months of 2013:

 

Asset retirement obligation at December 31, 2012

   $ 2,161,807  

Accretion expense

     31,718  

Liabilities settled

     (181,270

Revisions in estimated liabilities

     154,080  
  

 

 

 

Asset retirement obligation at March 31, 2013

   $ 2,166,335  
  

 

 

 

 

5. FAIR VALUE MEASUREMENTS

Certain assets and liabilities are reported at fair value on a recurring basis in the Partnership’s consolidated balance sheet. The following methods and assumptions were used to estimate the fair values:

Cash, Cash Equivalents, Accounts Receivable and Accounts Payable

As of March 31, 2013, and December 31, 2012, the carrying amounts approximate fair value because of the short-term nature or maturity of these instruments.

The Partnership did not use derivative financial instruments or otherwise engage in hedging activities during the three months ended March 31, 2013, and 2012.

 

5


ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This discussion relates to Apache Offshore Investment Partnership (the Partnership) and should be read in conjunction with the Partnership’s consolidated financial statements as of March 31, 2013, and the period then ended, and accompanying notes included under Part I, Item 1, of this Quarterly Report on Form 10-Q, as well as its consolidated financial statements as of December 31, 2012, and the year then ended, and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations, both of which are contained in the Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012.

The Partnership’s business is participation in oil and gas exploration, development and production activities on federal lease tracts in the Gulf of Mexico, offshore Louisiana and Texas.

Results of Operations

Net Income and Revenue

The Partnership reported net income of $283,574 for the first quarter of 2013, down from $590,548 in the first quarter of 2012. Net income per Investing Partner Unit decreased to $184 per Unit in the first quarter of 2013, down from $413 per Unit in the first quarter of 2012. Lower oil and gas production and higher operating expenses in 2013 contributed to the decrease in earnings and net income per Investing Partner Unit from 2012. The lower production reflected natural depletion impacting all of the Partnership’s properties.

Total revenues decreased 27 percent from the first quarter of 2012 to the first quarter of 2013 on lower oil and gas volumes in the first quarter of 2013.

The Partnership’s oil, gas and natural gas liquids (NGL) production volume and price information is summarized in the following table (gas volumes are presented in thousand cubic feet (Mcf) per day):

 

     For the Three Months Ended
March 31,
 
     2013      2012      Increase
(Decrease)
 

Gas volume – Mcf per day

     1,026        1,394        (26 )% 

Average gas price – per Mcf

   $ 3.55      $ 2.67        33 

Oil volume – barrels per day

     65        94        (31 )% 

Average oil price – per barrel

   $ 112.22      $ 113.70        (1 )% 

NGL volume – barrels per day

     12        19        (37 )% 

Average NGL price – per barrel

   $ 33.59      $ 47.43        (29 )% 

Oil and Gas Sales

Natural gas sales totaled $328,142 in the first quarter of 2013, decreasing $10,592 or 3 percent from the same period in 2012. Natural gas volumes on a per day basis declined 26 percent from the first quarter of 2012, decreasing sales by $122,408. The decline in the Partnership’s production from 2012 was largely attributable to natural depletion. The Partnership’s average realized natural gas price for the quarter increased $0.88 per Mcf, or 33 percent, from the first quarter of 2012, increasing sales by $111,816 from a year ago and largely offsetting the decline in gas production.

The Partnership’s crude oil sales for the first quarter of 2013 totaled $655,841 compared to $974,924 of crude oil sales in the first quarter of 2012. Primarily as a result of natural depletion at South Timbalier 295, crude oil volumes on a per day basis fell from 94 barrels per day in 2012 to 65 barrels per day in 2013, reducing sales by $306,460. The Partnership’s average realized price in the first quarter of 2013 decreased $1.48 per barrel, or 1 percent, from the first quarter of 2012.

 

6


During the first quarter of 2013, the Partnership sold 12 barrels per day of natural gas liquids, down from 19 barrels per day during the first quarter of 2012. The decrease reflected a reduction in processed volumes at South Timbalier 295 from 2012. The lower average realized NGL price for the first quarter of 2013 reflected declining product prices with an abundant supply of NGL products in the United States.

Since the Partnership does not anticipate acquiring additional acreage or conducting exploratory drilling on leases in which it currently holds an interest, declines in oil and gas production can be expected in future periods as a result of natural depletion. Also, given the small number of producing wells owned by the Partnership and exposure to inclement weather in the Gulf of Mexico, the Partnership’s production during the remainder of 2013 and beyond may be subject to more volatility than those companies with a larger or more diversified property portfolio.

Operating Expenses

The Partnership’s depreciation, depletion and amortization (DD&A) rate, expressed as a percentage of oil and gas sales, was approximately 21 percent during the first quarter of 2013 and 20 percent during first quarter of 2012. The dollar amount of DD&A expense for first the quarter of 2013 decreased from the comparable periods a year ago as a result of lower oil and gas sales in 2013. The Partnership recognized $31,718 in asset retirement obligation accretion for the first quarter of 2013 compared to $29,860 for the first quarter of 2012. The increase in accretion expense from a year ago reflected the increase in the Partnership’s asset retirement obligation liability in 2012.

Lease operating expenses (LOE) for the first quarter of 2013 of $364,507 increased 8 percent from the first quarter of 2012 on higher repair costs. LOE for the quarter included repairs on platforms at South Timbalier 295 and Ship Shoal 258/259, and a re-staging of a compressor at Ship Shoal 258/259 to increase production.

In the first quarter of 2013, gathering and transportation costs for the delivery of oil and gas decreased 49 percent from the same period in 2012 on lower gas volumes. Administrative expense for 2013 decreased one percent for the three-month period ended March 31 compared to the same period in 2012.

Capital Resources and Liquidity

The Partnership’s primary capital resource is net cash provided by operating activities, which totaled $0.3 million for the first three months of 2013 compared to $0.7 million during the first three months of 2012. The decline reflected lower oil and gas production and higher operating expenses which negatively impacted the Partnership’s earnings in 2013.

At March 31, 2013, the Partnership had approximately $3.3 million in cash and cash equivalents, up from approximately $3.1 million at December 31, 2012. The Partnership’s goal is to maintain cash and cash equivalents at least sufficient to cover the undiscounted value of its future asset retirement obligation (ARO) liability. The Partnership also plans to reserve funds for recompletion work planned for the second half of 2013 and anticipated repairs which may disrupt the Partnership’s production.

The Partnership’s future financial condition, results of operations and cash from operating activities will largely depend upon prices received for its oil and natural gas production. A substantial portion of the Partnership’s production is sold under market-sensitive contracts. Prices for oil and natural gas are subject to fluctuations in response to changes in supply, market uncertainty and a variety of factors beyond the Partnership’s control. These factors include worldwide political instability (especially in the Middle East), the foreign supply of oil and natural gas, the price of foreign imports, the level of consumer demand, and the price and availability of alternative fuels.

The Partnership’s oil and gas reserves and production will also significantly impact future results of operations and cash from operating activities. The Partnership’s production is subject to fluctuations in response to remaining quantities of oil and gas reserves, weather, pipeline capacity, consumer demand, mechanical performance and workover, recompletion and drilling activities. Declines in oil and gas production can be expected in future years as a result of normal depletion and the non-participation in acquisition or exploration activities by the Partnership. Based on production estimates from independent engineers and current market conditions, the Partnership forecasts it will be able to meet its liquidity needs for routine operations in the foreseeable future. The Partnership will reduce capital expenditures and distributions to partners as cash from operating activities declines.

 

7


In the event that future short-term operating cash requirements are greater than the Partnership’s financial resources, the Partnership may seek short-term, interest-bearing advances from the Managing Partner as needed. The Managing Partner, however, is not obligated to make loans to the Partnership.

On an ongoing basis, the Partnership reviews the possible sale of lower value properties prior to incurring associated dismantlement and abandonment costs.

Capital Commitments

The Partnership’s primary needs for cash are for operating expenses, drilling and recompletion expenditures, future dismantlement and abandonment costs, distributions to Investing Partners, and the purchase of Units offered by Investing Partners under the right of presentment. To the extent there is discretion, the Partnership allocates available capital to investment in the Partnership’s properties so as to maximize production and resultant cash flow. The Partnership had no outstanding debt or lease commitments at March 31, 2013. The Partnership did not have any contractual obligations as of March 31, 2013, other than the liability for dismantlement and abandonment costs of its oil and gas properties. The Partnership has recorded a separate liability for the present value of this asset retirement obligation as discussed in the notes to the financial statements included in the Partnership’s latest annual report on Form 10-K.

During the first three months of 2013 the Partnership had only diminutive outlays for capital expenditures as it did not commence any new drilling or recompletion projects during the period. The Partnership spent approximately $0.2 million on abandonment cost at South Timbalier 295 during the first quarter of 2013. Based on information supplied by the operators of the properties, the Partnership anticipates capital expenditures of less than $0.2 million for the remainder of 2013 as no new drilling projects are currently planned for 2013. Capital estimates may change based on realized prices, changes by the operator to the development plan, pipeline construction or modifications, or changes in government regulations.

Because of declining oil and gas production and the need to replenish cash reserves for future asset retirement obligations, no distributions were made to Investing Partners during the first three months of 2013. The Partnership also made no distribution to Investing Partners during the first three months of 2012 as a result of the large amount of capital expenditures funded by the Partnership during 2011 and the loss of revenue in 2011 from the shut-in of South Timbalier 295.

The amount of future distributions will be dependent on actual and expected production levels, realized and anticipated oil and gas prices, expected drilling and recompletion expenditures, and prudent cash reserves for future dismantlement and abandonment costs that will be incurred after the Partnership’s reserves are depleted. The Partnership’s goal is to maintain cash and cash equivalents in the Partnership at least sufficient to cover the undiscounted value of its future asset retirement obligations. During the second and third quarters of 2013, the Partnership will review available cash balances and the factors noted above to determine whether there are sufficient funds to make a distribution to Investing Partners during the second half 2013.

As provided in the Amended Partnership Agreement, a first right of presentment valuation was computed during the first quarter of 2013. The per-unit value was determined to be $15,412 based on the valuation date of December 31, 2012. The Partnership did not repurchase any Investing Partner Units (Units) during the first quarter of 2013 as a result of the Partnership’s limited amount of cash available for discretionary purposes. The Partnership is not in a position to predict how many Units will be presented for repurchase during the remainder of 2013 and cannot, at this time, determine if the Partnership will have sufficient funds available to repurchase any units. Pursuant to the Amended Partnership Agreement, the Partnership has no obligation to repurchase any Units presented to the extent it determines that it has insufficient funds for such purchases.

 

8


ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Commodity Risk

The Partnership’s major market risk exposure is in the pricing applicable to its oil and gas production. Realized pricing is primarily driven by the prevailing worldwide price for crude oil and spot prices applicable to its natural gas production. Prices received for oil and gas production continue to be volatile and unpredictable. The Partnership has not used derivative financial instruments or otherwise engaged in hedging activities during 2012 or the first three months of 2013.

The information set forth under “Commodity Risk” in Item 7A of the Partnership’s Form 10-K for the year ended December 31, 2012, is incorporated by reference. Information about market risks for the current quarter is not materially different.

Forward-Looking Statements and Risk

This report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included or incorporated by reference in this report, including, without limitation, statements regarding our future financial position, business strategy, budgets, projected revenues, projected costs and plans, and objectives of management for future operations, are forward-looking statements. Such forward-looking statements are based on our examination of historical operating trends, the information that was used to prepare our estimate of proved reserves as of December 31, 2012, and other data in our possession or available from third parties. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “project,” “estimate,” “anticipate,” “believe,” or “continue” or similar terminology. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to, our assumptions about:

 

   

the market prices of oil, natural gas, NGLs and other products or services;

 

   

the supply and demand for oil, natural gas, NGLs and other products or services;

 

   

production and reserve levels;

 

   

drilling risks;

 

   

economic and competitive conditions;

 

   

the availability of capital resources;

 

   

capital expenditure and other contractual obligations;

 

   

weather conditions;

 

   

inflation rates;

 

   

the availability of goods and services;

 

   

legislative or regulatory changes;

 

   

terrorism or cyber attacks;

 

   

occurrence of property acquisitions or divestitures;

 

   

the securities or capital markets and related risks such as general credit, liquidity, market and interest-rate risks; and

 

   

other factors disclosed under Items 1 and 2 – “Business and Properties – Estimated Proved Reserves and Future Net Cash Flows,” Item 1A – “Risk Factors,” Item 7 – “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” Item 7A – “Quantitative and Qualitative Disclosures About Market Risk,” and elsewhere in our most recently filed Form 10-K.

 

9


All subsequent written and oral forward-looking statements attributable to the Partnership, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements. We assume no duty to update or revise our forward-looking statements based on changes in internal estimates or expectations or otherwise.

ITEM 4 – CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

G. Steven Farris, the Managing Partner’s Chairman and Chief Executive Officer (in his capacity as principal executive officer), and Thomas P. Chambers, the Managing Partner’s Executive Vice President and Chief Financial Officer (in his capacity as principal financial officer), evaluated the effectiveness of the Partnership’s disclosure controls and procedures as of March 31, 2013, the end of the period covered by this report. Based on that evaluation and as of the date of that evaluation, these officers concluded that the Partnership’s disclosure controls and procedures were effective, providing effective means to ensure that the information it is required to disclose under applicable laws and regulations is recorded, processed, summarized and reported within the time periods specified under the Commission’s rules and forms and communicated to our management, including the Managing Partner’s principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There was no change in our internal controls over financial reporting during the period covered by this quarterly report on Form 10-Q that materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.

PART II – OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

None.

 

ITEM 1A. RISK FACTORS

During the quarter ended March 31, 2013, there were no material changes from the risk factors as previously disclosed in the Partnership’s Form 10-K for the year ended December 31, 2012.

 

ITEM 2. UNREGISTERED SALES OF EQUITY IN SECURITIES AND USE OF PROCEEDS

None.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

 

ITEM 4. MINE SAFETY DISCLOSURES

None.

 

ITEM 5. OTHER INFORMATION

None.

 

10


ITEM 6. EXHIBITS

 

  a. Exhibits

 

        *3.1

   Partnership Agreement of Apache Offshore Investment Partnership (incorporated by reference to Exhibit (3)(i) to Form 10 filed by Partnership with the Commission on April 30, 1985, Commission File No. 0-13546).

        *3.2

   Amendment No. 1, dated February 11, 1994, to the Partnership Agreement of Apache Offshore Investment Partnership (incorporated by reference to Exhibit 3.3 to Partnership’s Annual Report on Form 10-K for the year ended December 31, 1993, Commission File No. 0-13546).

        *3.3

   Limited Partnership Agreement of Apache Offshore Petroleum Limited Partnership (incorporated by reference to Exhibit (3)(ii) to Form 10 filed by Partnership with the Commission on April 30, 1985, Commission File No. 0-13546).

    **31.1

   Certification (pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act) by Principal Executive Officer

    **31.2

   Certification (pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act) by Principal Financial Officer

    **32.1

   Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Principal Executive Officer and Principal Financial Officer

***101.INS

   XBRL Instance Document.

***101.SCH

   XBRL Taxonomy Schema Document.

***101.CAL

   XBRL Calculation Linkbase Document.

***101.LAB

   XBRL Label Linkbase Document.

***101.PRE

   XBRL Presentation Linkbase Document.

 

* Incorporated by reference herein.
** Filed herewith.
*** Furnished herewith.

 

11


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

      APACHE OFFSHORE INVESTMENT PARTNERSHIP
      By: Apache Corporation, Managing Partner
Dated:   May 9, 2013    

/s/ Thomas P. Chambers

      Thomas P. Chambers
      Executive Vice President and Chief Financial Officer
      (principal financial officer) of Apache Corporation,
      Managing Partner
Dated:   May 9, 2013    

/s/ Rebecca A. Hoyt

      Rebecca A. Hoyt
      Vice President, Chief Accounting Officer and Controller
      (principal accounting officer) of Apache Corporation,
      Managing Partner

 

12

EX-31.1 2 d516324dex311.htm EX-31.1 EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, G. Steven Farris, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of Apache Offshore Investment Partnership;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

  (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information ; and

 

  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

/s/ G. Steven Farris

G. Steven Farris
Chairman and Chief Executive Officer (principal executive officer) of Apache Corporation, Managing Partner

Date: May 9, 2013

EX-31.2 3 d516324dex312.htm EX-31.2 EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Thomas P. Chambers, certify that:

 

1. I have reviewed this quarterly report on Form 10-Q of Apache Offshore Investment Partnership;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

  (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

/s/ Thomas P. Chambers

Thomas P. Chambers
Executive Vice President and Chief Financial Officer (principal financial officer) of Apache Corporation, Managing Partner

Date: May 9, 2013

EX-32.1 4 d516324dex321.htm EX-32.1 EX-32.1

Exhibit 32.1

APACHE OFFSHORE INVESTMENT PARTNERSHIP

by Apache Corporation, Managing Partner

Certification of Principal Executive Officer

and Principal Financial Officer

I, G. Steven Farris, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge, the quarterly report on Form 10-Q of Apache Offshore Investment Partnership for the quarterly period ending March 31, 2013, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. §78m or §78o (d)) and that information contained in such report fairly represents, in all material respects, the financial condition and results of operations of Apache Offshore Investment Partnership.

 

/s/ G. Steven Farris

By:   G. Steven Farris
Title:   Chairman and Chief Executive Officer (principal executive officer) of Apache Corporation, Managing Partner
Date:   May 9, 2013

I, Thomas P. Chambers, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge, the quarterly report on Form 10-Q of Apache Offshore Investment Partnership for the quarterly period ending March 31, 2013, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. §78m or §78o (d)) and that information contained in such report fairly represents, in all material respects, the financial condition and results of operations of Apache Offshore Investment Partnership.

 

/s/ Thomas P. Chambers

By:   Thomas P. Chambers
Title:   Executive Vice President and Chief Financial Officer (principal financial officer) of Apache Corporation, Managing Partner
Date:   May 9, 2013
EX-101.INS 5 aoip-20130331.xml XBRL INSTANCE DOCUMENT 1816261 1022 182773 1021.5 12358598 3301209 194606348 103749 12358598 444024 8921017 10009490 119029 2166335 32623 63744 3437581 185685331 9565466 1404394 235356 1021.5 12217609 3118789 194451931 118847 75021 12217609 442805 8979973 9820446 124357 2161807 35978 3237636 185471958 9377641 15412 Q1 2013 10-Q 2013-03-31 0000727538 --12-31 AOIP APACHE OFFSHORE INVESTMENT PARTNERSHIP false Smaller Reporting Company 213373 <div> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="4%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>2.</b></font></td> <td valign="top" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>RECEIVABLE FROM / PAYABLE TO APACHE CORPORATION</b></font></td> </tr> </table> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">The receivable from/payable to Apache represents the net result of the Investing Partners&#x2019; revenue and expenditure transactions in the current month. Generally, cash in this amount will be paid by Apache to the Partnership or transferred to Apache in the month after the Partnership&#x2019;s transactions are processed and the net results of operations are determined.</font></p> </div> 95749 283574 -337 30318 337 <div> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="4%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>5.</b></font></td> <td valign="top" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>FAIR VALUE MEASUREMENTS</b></font></td> </tr> </table> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">Certain assets and liabilities are reported at fair value on a recurring basis in the Partnership&#x2019;s consolidated balance sheet. The following methods and assumptions were used to estimate the fair values:</font></p> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2"><b><u>Cash, Cash Equivalents, Accounts Receivable and Accounts Payable</u></b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">As of March&#xA0;31, 2013, and December&#xA0;31, 2012, the carrying amounts approximate fair value because of the short-term nature or maturity of these instruments.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">The Partnership did not use derivative financial instruments or otherwise engage in hedging activities during the three months ended March&#xA0;31, 2013, and 2012.</font></p> </div> <div> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="4%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>3.</b></font></td> <td valign="top" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>RIGHT OF PRESENTMENT</b></font></td> </tr> </table> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">As provided in the Partnership Agreement, as amended (the Amended Partnership Agreement), a first right of presentment valuation was computed during the first quarter of 2013. The per-unit value was determined to be $15,412 based on the valuation date of December&#xA0;31, 2012. The Partnership will not repurchase any Investing Partner Units (Units) during the first half of 2013 as a result of the Partnership&#x2019;s limited amount of cash available for discretionary purposes.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">The Partnership is not in a position to predict how many Units will be presented for repurchase during the remainder of 2013 and cannot, at this time, determine if the Partnership will have sufficient funds available to repurchase any Units. The Partnership has no obligation to purchase any Units presented to the extent it determines that it has insufficient funds for such purchases.</font></p> </div> -15098 <div> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="4%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>4.</b></font></td> <td valign="top" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>ASSET RETIREMENT OBLIGATIONS</b></font></td> </tr> </table> <!-- xbrl,body --> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">The following table describes the changes to the Partnership&#x2019;s asset retirement obligation liability for the first three months of 2013:</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="68%" align="center"> <!-- Begin Table Head --> <tr> <td width="85%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <!-- End Table Head --><!-- Begin Table Body --> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: Times New Roman" size="2">Asset retirement obligation at December&#xA0;31, 2012</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">2,161,807</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: Times New Roman" size="2">Accretion expense</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">31,718</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: Times New Roman" size="2">Liabilities settled</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">(181,270</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">)&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: Times New Roman" size="2">Revisions in estimated liabilities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">154,080</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: Times New Roman" size="2">Asset retirement obligation at March&#xA0;31, 2013</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">2,166,335</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <!-- End Table Body --></table> </div> 1021490 182420 -153504 154080 187825 737916 98000 -94530 184 31718 <div> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2"><font style="FONT-FAMILY: Times New Roman" size="2"><font style="FONT-FAMILY: Times New Roman" size="2">The following table describes the changes to the Partnership&#x2019;s asset retirement obligation liability for the first three months of 2013:</font></font></font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 12px"> <font style="FONT-FAMILY: Times New Roman" size="2"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;</font></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> </p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="68%" align="center"> <!-- Begin Table Head --> <tr> <td width="85%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <!-- End Table Head --><!-- Begin Table Body --> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: Times New Roman" size="2">Asset retirement obligation at December&#xA0;31, 2012</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">2,161,807</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: Times New Roman" size="2">Accretion expense</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">31,718</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: Times New Roman" size="2">Liabilities settled</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">(181,270</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">)&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: Times New Roman" size="2">Revisions in estimated liabilities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">154,080</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="TEXT-INDENT: -1em; MARGIN-LEFT: 1em"><font style="FONT-FAMILY: Times New Roman" size="2">Asset retirement obligation at March&#xA0;31, 2013</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: Times New Roman" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: Times New Roman" size="2">2,166,335</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: Times New Roman" size="2">&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <!-- End Table Body --></table> </div> 1021490 364507 94530 181270 <div> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="4%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>1.</b></font></td> <td valign="top" align="left"><font style="FONT-FAMILY: Times New Roman" size="2"><b>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></font></td> </tr> </table> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">As of March&#xA0;31, 2013, the Partnership&#x2019;s significant accounting policies are consistent with those discussed in Note 2 of its consolidated financial statements contained in the Annual Report on Form 10-K for the fiscal year ended December&#xA0;31, 2012.</font></p> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2"><b><u>Use of Estimates</u></b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates with regard to these financial statements include the estimate of proved oil and gas reserves and related present value estimates of future net cash flow therefrom and asset retirement obligations. Actual results could differ from those estimates.</font></p> </div> <div> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2"><b><u>Use of Estimates</u></b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 4%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates with regard to these financial statements include the estimate of proved oil and gas reserves and related present value estimates of future net cash flow therefrom and asset retirement obligations. Actual results could differ from those estimates.</font></p> </div> 1021.5 -5328 277287 -107644 277621 168246 590548 -33182 59689 33182 -154188 1394766 411867 422302 804218 99250 -226202 413 29860 1394766 337798 226202 1021.5 -282045 671251 -98921 0000727538 2012-01-01 2012-03-31 0000727538 2013-01-01 2013-03-31 0000727538 2012-12-31 0000727538 2011-12-31 0000727538 2013-03-31 0000727538 2012-03-31 iso4217:USD shares iso4217:USD aoip:PartnershipUnit EX-101.SCH 6 aoip-20130331.xsd XBRL TAXONOMY EXTENSION SCHEMA 101 - Document - Document and Entity Information link:calculationLink link:presentationLink link:definitionLink 103 - Statement - Statement of Consolidated Income link:calculationLink link:presentationLink link:definitionLink 104 - Statement - Statement of Consolidated Cash Flows link:calculationLink link:presentationLink link:definitionLink 105 - Statement - Consolidated Balance Sheet link:calculationLink link:presentationLink link:definitionLink 106 - Statement - Consolidated Balance Sheet (Parenthetical) link:calculationLink link:presentationLink link:definitionLink 107 - Disclosure - Summary of Significant Accounting Policies link:calculationLink link:presentationLink link:definitionLink 108 - Disclosure - Receivable From / Payable to Apache Corporation link:calculationLink link:presentationLink link:definitionLink 109 - Disclosure - Right of Presentment link:calculationLink link:presentationLink link:definitionLink 110 - Disclosure - Asset Retirement Obligations link:calculationLink link:presentationLink link:definitionLink 111 - Disclosure - Fair Value Measurements link:calculationLink link:presentationLink link:definitionLink 112 - Disclosure - Summary of Significant Accounting Policies (Policies) link:calculationLink link:presentationLink link:definitionLink 113 - Disclosure - Asset Retirement Obligations (Tables) link:calculationLink link:presentationLink link:definitionLink 114 - Disclosure - Right of Presentment - Additional Information (Detail) link:calculationLink link:presentationLink link:definitionLink 115 - Disclosure - Asset Retirement Obligations - Changes to Partnership's Asset Retirement Obligation Liability (Detail) link:calculationLink link:presentationLink link:definitionLink 116 - Statement - Statement of Consolidated Income (Alternate 1) link:calculationLink link:presentationLink link:definitionLink EX-101.CAL 7 aoip-20130331_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE EX-101.LAB 8 aoip-20130331_lab.xml XBRL TAXONOMY EXTENSION LABEL LINKBASE EX-101.PRE 9 aoip-20130331_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE XML 10 report.css IDEA: XBRL DOCUMENT /* Updated 2009-11-04 */ /* v2.2.0.24 */ /* DefRef Styles */ ..report table.authRefData{ background-color: #def; 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Asset Retirement Obligations
3 Months Ended
Mar. 31, 2013
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations
4. ASSET RETIREMENT OBLIGATIONS

The following table describes the changes to the Partnership’s asset retirement obligation liability for the first three months of 2013:

 

Asset retirement obligation at December 31, 2012

   $ 2,161,807  

Accretion expense

     31,718  

Liabilities settled

     (181,270

Revisions in estimated liabilities

     154,080  
  

 

 

 

Asset retirement obligation at March 31, 2013

   $ 2,166,335  
  

 

 

 
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Right of Presentment
3 Months Ended
Mar. 31, 2013
Equity [Abstract]  
Right of Presentment
3. RIGHT OF PRESENTMENT

As provided in the Partnership Agreement, as amended (the Amended Partnership Agreement), a first right of presentment valuation was computed during the first quarter of 2013. The per-unit value was determined to be $15,412 based on the valuation date of December 31, 2012. The Partnership will not repurchase any Investing Partner Units (Units) during the first half of 2013 as a result of the Partnership’s limited amount of cash available for discretionary purposes.

The Partnership is not in a position to predict how many Units will be presented for repurchase during the remainder of 2013 and cannot, at this time, determine if the Partnership will have sufficient funds available to repurchase any Units. The Partnership has no obligation to purchase any Units presented to the extent it determines that it has insufficient funds for such purchases.

XML 14 R2.htm IDEA: XBRL DOCUMENT v2.4.0.6
Statement of Consolidated Income (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
REVENUES:    
Oil and gas sales $ 1,021,490 $ 1,394,766
Total Revenues 1,021,490 1,394,766
EXPENSES:    
Depreciation, depletion and amortization 213,373 277,621
Asset retirement obligation accretion 31,718 29,860
Lease operating expenses 364,507 337,798
Gathering and transportation costs 30,318 59,689
Administrative 98,000 99,250
Total Expenses 737,916 804,218
NET INCOME 283,574 590,548
NET INCOME ALLOCATED TO:    
Managing Partner 95,749 168,246
Investing Partners 187,825 422,302
NET INCOME $ 283,574 $ 590,548
NET INCOME PER INVESTING PARTNER UNIT 184 413
WEIGHTED AVERAGE INVESTING PARTNER UNITS OUTSTANDING 1,021.5 1,021.5
XML 15 R6.htm IDEA: XBRL DOCUMENT v2.4.0.6
Summary of Significant Accounting Policies
3 Months Ended
Mar. 31, 2013
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

As of March 31, 2013, the Partnership’s significant accounting policies are consistent with those discussed in Note 2 of its consolidated financial statements contained in the Annual Report on Form 10-K for the fiscal year ended December 31, 2012.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates with regard to these financial statements include the estimate of proved oil and gas reserves and related present value estimates of future net cash flow therefrom and asset retirement obligations. Actual results could differ from those estimates.

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XML 17 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
Receivable From / Payable to Apache Corporation
3 Months Ended
Mar. 31, 2013
Related Party Transactions [Abstract]  
Receivable From / Payable to Apache Corporation
2. RECEIVABLE FROM / PAYABLE TO APACHE CORPORATION

The receivable from/payable to Apache represents the net result of the Investing Partners’ revenue and expenditure transactions in the current month. Generally, cash in this amount will be paid by Apache to the Partnership or transferred to Apache in the month after the Partnership’s transactions are processed and the net results of operations are determined.

XML 18 R3.htm IDEA: XBRL DOCUMENT v2.4.0.6
Statement of Consolidated Cash Flows (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $ 283,574 $ 590,548
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation, depletion and amortization 213,373 277,621
Asset retirement obligation accretion 31,718 29,860
Changes in operating assets and liabilities:    
(Increase) decrease in accrued receivables 15,098 154,188
Increase (decrease) in receivable from/payable to Apache Corporation (107,644) (98,921)
Increase (decrease) in accrued operating expenses (5,328) (282,045)
Increase (decrease) in deferred credits and other (153,504)  
Net cash provided by operating activities 277,287 671,251
CASH FLOWS FROM INVESTING ACTIVITIES:    
Additions to oil and gas properties (337) (33,182)
Net cash used in investing activities (337) (33,182)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Distributions to Managing Partner (94,530) (226,202)
Net cash used in financing activities (94,530) (226,202)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 182,420 411,867
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 3,118,789 1,404,394
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 3,301,209 $ 1,816,261
XML 19 R1.htm IDEA: XBRL DOCUMENT v2.4.0.6
Document and Entity Information
3 Months Ended
Mar. 31, 2013
Document Document And Entity Information [Abstract]  
Document Type 10-Q
Amendment Flag false
Document Period End Date Mar. 31, 2013
Document Fiscal Year Focus 2013
Document Fiscal Period Focus Q1
Trading Symbol AOIP
Entity Registrant Name APACHE OFFSHORE INVESTMENT PARTNERSHIP
Entity Central Index Key 0000727538
Current Fiscal Year End Date --12-31
Entity Filer Category Smaller Reporting Company
Entity Common Stock, Shares Outstanding 1,022
XML 20 R4.htm IDEA: XBRL DOCUMENT v2.4.0.6
Consolidated Balance Sheet (USD $)
Mar. 31, 2013
Dec. 31, 2012
CURRENT ASSETS:    
Cash and cash equivalents $ 3,301,209 $ 3,118,789
Accrued revenues receivable 103,749 118,847
Receivable from Apache Corporation 32,623  
Total Current Assets 3,437,581 3,237,636
OIL AND GAS PROPERTIES, on the basis of full cost accounting:    
Proved properties 194,606,348 194,451,931
Less - Accumulated depreciation, depletion and amortization (185,685,331) (185,471,958)
Total oil and gas properties, on the basis of full cost accounting 8,921,017 8,979,973
Total Assets 12,358,598 12,217,609
CURRENT LIABILITIES:    
Payable to Apache Corporation   75,021
Accrued operating expenses 119,029 124,357
Accrued development costs 63,744 35,978
Total Current Liabilities 182,773 235,356
ASSET RETIREMENT OBLIGATION 2,166,335 2,161,807
PARTNERS' CAPITAL:    
Managing Partner 444,024 442,805
Investing Partners (1,021.5 units outstanding) 9,565,466 9,377,641
Total Partners' Capital 10,009,490 9,820,446
Total liabilities and partners' capital $ 12,358,598 $ 12,217,609
XML 21 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
Asset Retirement Obligations (Tables)
3 Months Ended
Mar. 31, 2013
Asset Retirement Obligation Disclosure [Abstract]  
Changes to Partnership's Asset Retirement Obligation Liability

The following table describes the changes to the Partnership’s asset retirement obligation liability for the first three months of 2013:

 

Asset retirement obligation at December 31, 2012

   $ 2,161,807  

Accretion expense

     31,718  

Liabilities settled

     (181,270

Revisions in estimated liabilities

     154,080  
  

 

 

 

Asset retirement obligation at March 31, 2013

   $ 2,166,335  
  

 

 

 
XML 22 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
Summary of Significant Accounting Policies (Policies)
3 Months Ended
Mar. 31, 2013
Accounting Policies [Abstract]  
Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates with regard to these financial statements include the estimate of proved oil and gas reserves and related present value estimates of future net cash flow therefrom and asset retirement obligations. Actual results could differ from those estimates.

XML 23 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
Right of Presentment - Additional Information (Detail)
Dec. 31, 2012
Equity [Abstract]  
Investing partner units value per unit 15,412
XML 24 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
Asset Retirement Obligations - Changes to Partnership's Asset Retirement Obligation Liability (Detail) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Asset Retirement Obligation Disclosure [Abstract]    
Asset retirement obligation at December 31, 2012 $ 2,161,807  
Accretion expense 31,718 29,860
Liabilities settled (181,270)  
Revisions in estimated liabilities 154,080  
Asset retirement obligation at March 31, 2013 $ 2,166,335  
XML 25 R5.htm IDEA: XBRL DOCUMENT v2.4.0.6
Consolidated Balance Sheet (Parenthetical)
Mar. 31, 2013
Dec. 31, 2012
Statement Of Financial Position [Abstract]    
Investing Partners, units outstanding 1,021.5 1,021.5
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Fair Value Measurements
3 Months Ended
Mar. 31, 2013
Fair Value Disclosures [Abstract]  
Fair Value Measurements
5. FAIR VALUE MEASUREMENTS

Certain assets and liabilities are reported at fair value on a recurring basis in the Partnership’s consolidated balance sheet. The following methods and assumptions were used to estimate the fair values:

Cash, Cash Equivalents, Accounts Receivable and Accounts Payable

As of March 31, 2013, and December 31, 2012, the carrying amounts approximate fair value because of the short-term nature or maturity of these instruments.

The Partnership did not use derivative financial instruments or otherwise engage in hedging activities during the three months ended March 31, 2013, and 2012.

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