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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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Emerging growth company
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Number of shares of registrant’s common stock outstanding as of July 29, 2020
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TABLE OF CONTENTS
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DESCRIPTION
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Item
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Page
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PART I - FINANCIAL INFORMATION
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1.
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2.
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3.
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4.
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PART II - OTHER INFORMATION
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1.
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1A.
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2.
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6.
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•
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the scope, duration, and reoccurrence of any epidemics or pandemics (including specifically the coronavirus disease 2019 (COVID-19) pandemic) and the actions taken by third parties, including, but not limited to, governmental authorities, customers, contractors, and suppliers, in response to such epidemics or pandemics;
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•
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the market prices of oil, natural gas, natural gas liquids (NGLs), and other products or services;
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•
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the Company’s commodity hedging arrangements;
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•
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the supply and demand for oil, natural gas, NGLs, and other products or services;
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•
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production and reserve levels;
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•
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drilling risks;
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•
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economic and competitive conditions;
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•
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the availability of capital resources;
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•
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capital expenditures and other contractual obligations;
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•
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currency exchange rates;
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•
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weather conditions;
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•
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inflation rates;
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•
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the availability of goods and services;
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•
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legislative, regulatory, or policy changes, including initiatives addressing the impact of global climate change or further regulating hydraulic fracturing, methane emissions, flaring, or water disposal;
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•
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the Company’s performance on environmental, social, and governance measures;
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•
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terrorism or cyberattacks;
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•
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the occurrence of property acquisitions or divestitures;
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•
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the integration of acquisitions;
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•
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the Company’s ability to access the capital markets;
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•
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market-related risks such as general credit, liquidity, and interest-rate risks;
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•
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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 the Company’s most recently filed Annual Report on Form 10-K;
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•
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other risks and uncertainties disclosed in the Company’s
second
-quarter
2020
earnings release;
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•
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other factors disclosed under Part II, Item 1A—Risk Factors in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020;
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•
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other factors disclosed under Part II,
Item 1A—Risk Factors
of this Quarterly Report on Form 10-Q; and
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•
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other filings that the Company makes with the Securities and Exchange Commission.
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For the Quarter Ended June 30,
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For the Six Months Ended June 30,
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2020
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2019
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2020
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2019
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(In millions, except per common share data)
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REVENUES AND OTHER:
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Oil, natural gas, and natural gas liquids production revenues
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$
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$
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$
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$
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Purchased oil and gas sales
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Total revenues
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Derivative instrument losses, net
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(
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)
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(
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(
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(
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Gain on divestitures, net
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Other, net
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(
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(
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OPERATING EXPENSES:
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Lease operating expenses
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Gathering, processing, and transmission
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Purchased oil and gas costs
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Taxes other than income
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Exploration
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General and administrative
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Transaction, reorganization, and separation
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Depreciation, depletion, and amortization
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Asset retirement obligation accretion
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Impairments
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Financing costs, net
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(
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NET INCOME (LOSS) BEFORE INCOME TAXES
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(
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)
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(
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(
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Current income tax provision (benefit)
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(
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)
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Deferred income tax benefit
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(
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(
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(
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(
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NET LOSS INCLUDING NONCONTROLLING INTERESTS
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(
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(
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(
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(
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Net income (loss) attributable to noncontrolling interest - Egypt
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(
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(
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Net loss attributable to noncontrolling interest - Altus
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(
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)
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(
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(
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)
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Net income attributable to Altus Preferred Unit limited partners
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NET LOSS ATTRIBUTABLE TO COMMON STOCK
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$
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(
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)
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$
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(
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$
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(
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)
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$
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(
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||||||||
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NET LOSS PER COMMON SHARE:
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||||||||
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Basic
|
|
$
|
(
|
)
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$
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(
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)
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$
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(
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)
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$
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(
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)
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Diluted
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
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|
||||||||
|
Basic
|
|
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|
|
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||||
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Diluted
|
|
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||||
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|
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For the Quarter Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
|
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2020
|
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2019
|
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2020
|
|
2019
|
||||||||
|
|
|
(In millions)
|
||||||||||||||
|
NET LOSS INCLUDING NONCONTROLLING INTERESTS
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
OTHER COMPREHENSIVE LOSS, NET OF TAX:
|
|
|
|
|
|
|
|
|
||||||||
|
Share of equity method interests other comprehensive loss
|
|
|
|
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(
|
)
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|
|
|
||||
|
COMPREHENSIVE LOSS INCLUDING NONCONTROLLING INTERESTS
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
|
Comprehensive income (loss) attributable to noncontrolling interest - Egypt
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
||||
|
Comprehensive loss attributable to noncontrolling interest - Altus
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
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Comprehensive income attributable to Altus Preferred Unit limited partners
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
COMPREHENSIVE LOSS ATTRIBUTABLE TO COMMON STOCK
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
|
|
For the Six Months Ended June 30,
|
||||||
|
|
|
2020
|
|
2019
|
||||
|
|
|
(In millions)
|
||||||
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
||||
|
Net loss including noncontrolling interests
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
Adjustments to reconcile net loss to net cash provided by operating activities:
|
|
|
|
|
||||
|
Unrealized derivative instrument losses, net
|
|
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|
|
|
||
|
Gain on divestitures
|
|
(
|
)
|
|
(
|
)
|
||
|
Exploratory dry hole expense and unproved leasehold impairments
|
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||
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Depreciation, depletion, and amortization
|
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||
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Asset retirement obligation accretion
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||
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Impairments
|
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|
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||
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Deferred income tax benefit
|
|
(
|
)
|
|
(
|
)
|
||
|
Loss (gain) on extinguishment of debt
|
|
(
|
)
|
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||
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Other
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||
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Changes in operating assets and liabilities:
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|
||||
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Receivables
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||
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Inventories
|
|
|
|
|
(
|
)
|
||
|
Drilling advances
|
|
(
|
)
|
|
(
|
)
|
||
|
Deferred charges and other
|
|
(
|
)
|
|
(
|
)
|
||
|
Accounts payable
|
|
(
|
)
|
|
(
|
)
|
||
|
Accrued expenses
|
|
(
|
)
|
|
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|
||
|
Deferred credits and noncurrent liabilities
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|
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||
|
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
|
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|
||||
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CASH FLOWS FROM INVESTING ACTIVITIES:
|
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|
|
|
||||
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Additions to oil and gas property
|
|
(
|
)
|
|
(
|
)
|
||
|
Additions to Altus gathering, processing, and transmission facilities
|
|
(
|
)
|
|
(
|
)
|
||
|
Leasehold and property acquisitions
|
|
(
|
)
|
|
(
|
)
|
||
|
Altus equity method interests
|
|
(
|
)
|
|
(
|
)
|
||
|
Proceeds from sale of oil and gas properties
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|
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|
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||
|
Other, net
|
|
(
|
)
|
|
|
|
||
|
NET CASH USED IN INVESTING ACTIVITIES
|
|
(
|
)
|
|
(
|
)
|
||
|
|
|
|
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|
||||
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
||||
|
Proceeds from Apache credit facility, net
|
|
|
|
|
|
|
||
|
Proceeds from Altus credit facility, net
|
|
|
|
|
|
|
||
|
Fixed-rate debt borrowings
|
|
|
|
|
|
|
||
|
Payments on fixed-rate debt
|
|
(
|
)
|
|
(
|
)
|
||
|
Distributions to noncontrolling interest - Egypt
|
|
(
|
)
|
|
(
|
)
|
||
|
Redeemable noncontrolling interest - Altus Preferred Unit limited partners
|
|
|
|
|
|
|
||
|
Dividends paid
|
|
(
|
)
|
|
(
|
)
|
||
|
Other
|
|
(
|
)
|
|
(
|
)
|
||
|
NET CASH PROVIDED BY FINANCING ACTIVITIES
|
|
|
|
|
|
|
||
|
|
|
|
|
|
||||
|
NET DECREASE IN CASH AND CASH EQUIVALENTS
|
|
(
|
)
|
|
(
|
)
|
||
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
|
|
|
|
|
|
|
||
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
|
|
||||
|
SUPPLEMENTARY CASH FLOW DATA:
|
|
|
|
|
||||
|
Interest paid, net of capitalized interest
|
|
$
|
|
|
|
$
|
|
|
|
Income taxes paid, net of refunds
|
|
|
|
|
|
|
||
|
In millions except share and per-share amounts
|
|
June 30, 2020
|
|
December 31, 2019
|
||||
|
ASSETS
|
|
|
|
|
||||
|
CURRENT ASSETS:
|
|
|
|
|
||||
|
Cash and cash equivalents ($2 and $6 related to Altus VIE)
|
|
$
|
|
|
|
$
|
|
|
|
Receivables, net of allowance of $91 and $88
|
|
|
|
|
|
|
||
|
Other current assets (Note 5) ($5 and $5 related to Altus VIE)
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
|
PROPERTY AND EQUIPMENT:
|
|
|
|
|
||||
|
Oil and gas, on the basis of successful efforts accounting:
|
|
|
|
|
||||
|
Proved properties
|
|
|
|
|
|
|
||
|
Unproved properties and properties under development
|
|
|
|
|
|
|
||
|
Gathering, processing, and transmission facilities ($211 and $203 related to Altus VIE)
|
|
|
|
|
|
|
||
|
Other ($3 and $4 related to Altus VIE)
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
|
Less: Accumulated depreciation, depletion, and amortization ($7 and $1 related to Altus VIE)
|
|
(
|
)
|
|
(
|
)
|
||
|
|
|
|
|
|
|
|
||
|
OTHER ASSETS:
|
|
|
|
|
||||
|
Equity method interests (Note 6) ($1,408 and $1,258 related to Altus VIE)
|
|
|
|
|
|
|
||
|
Deferred charges and other ($4 and $4 related to Altus VIE)
|
|
|
|
|
|
|
||
|
|
|
$
|
|
|
|
$
|
|
|
|
LIABILITIES, NONCONTROLLING INTEREST, AND EQUITY
|
|
|
|
|
||||
|
CURRENT LIABILITIES:
|
|
|
|
|
||||
|
Accounts payable
|
|
$
|
|
|
|
$
|
|
|
|
Current debt (nil and $10 related to Altus VIE)
|
|
|
|
|
|
|
||
|
Other current liabilities (Note 7) ($11 and $21 related to Altus VIE)
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
|
LONG-TERM DEBT (Note 10) ($493 and $396 related to Altus VIE)
|
|
|
|
|
|
|
||
|
DEFERRED CREDITS AND OTHER NONCURRENT LIABILITIES:
|
|
|
|
|
||||
|
Income taxes
|
|
|
|
|
|
|
||
|
Asset retirement obligation (Note 8) ($62 and $60 related to Altus VIE)
|
|
|
|
|
|
|
||
|
Other ($181 and $107 related to Altus VIE)
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||
|
COMMITMENTS AND CONTINGENCIES (Note 11)
|
|
|
|
|
||||
|
REDEEMABLE NONCONTROLLING INTEREST - ALTUS PREFERRED UNIT LIMITED PARTNERS (Note 12)
|
|
|
|
|
|
|
||
|
EQUITY:
|
|
|
|
|
||||
|
Common stock, $0.625 par, 860,000,000 shares authorized, 418,407,164 and 417,026,863 shares issued, respectively
|
|
|
|
|
|
|
||
|
Paid-in capital
|
|
|
|
|
|
|
||
|
Accumulated deficit
|
|
(
|
)
|
|
(
|
)
|
||
|
Treasury stock, at cost, 40,948,811 and 40,964,193 shares, respectively
|
|
(
|
)
|
|
(
|
)
|
||
|
Accumulated other comprehensive income
|
|
|
|
|
|
|
||
|
APACHE SHAREHOLDERS’ EQUITY (DEFICIT)
|
|
(
|
)
|
|
|
|
||
|
Noncontrolling interest - Egypt
|
|
|
|
|
|
|
||
|
Noncontrolling interest - Altus
|
|
|
|
|
|
|
||
|
TOTAL EQUITY (DEFICIT)
|
|
(
|
)
|
|
|
|
||
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
Redeemable Noncontrolling Interest — Altus Preferred Unit Limited Partners
|
|
|
Common
Stock
|
|
Paid-In
Capital
|
|
Accumulated Deficit
|
|
Treasury
Stock
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
APACHE
SHAREHOLDERS’ EQUITY (DEFICIT) |
|
Noncontrolling
Interests
|
|
TOTAL
EQUITY (DEFICIT) |
||||||||||||||||||
|
|
|
|
|
|
(In millions)
|
||||||||||||||||||||||||||||||||
|
For the Quarter Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
BALANCE AT MARCH 31, 2019
|
|
$
|
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Net loss attributable to common stock
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||||||||
|
Net income attributable to noncontrolling interest - Egypt
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|||||||||
|
Net loss attributable to noncontrolling interest - Altus
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||
|
Issuance of Altus Preferred Units
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
|
Net income attributable to Altus Preferred Unit holders
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
|
Distributions to noncontrolling interest - Egypt
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||
|
Common dividends ($0.25 per share)
|
|
—
|
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||||||||
|
Other
|
|
—
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|||||||||
|
BALANCE AT JUNE 30, 2019
|
|
$
|
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
For the Quarter Ended June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
BALANCE AT MARCH 31, 2020
|
|
$
|
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
Net loss attributable to common stock
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||||||||
|
Net loss attributable to noncontrolling interest - Egypt
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||
|
Net income attributable to Altus Preferred Unit limited partners
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
|
Distributions to noncontrolling interest - Egypt
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||
|
Common dividends ($0.025 per share)
|
|
—
|
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||||||||
|
Other
|
|
—
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|||||||||
|
BALANCE AT JUNE 30, 2020
|
|
$
|
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
|
|
Redeemable Noncontrolling Interest — Altus Preferred Unit Limited Partners
|
|
|
Common
Stock
|
|
Paid-In
Capital
|
|
Accumulated Deficit
|
|
Treasury
Stock
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
APACHE
SHAREHOLDERS’
EQUITY (DEFICIT)
|
|
Noncontrolling
Interests
|
|
TOTAL
EQUITY (DEFICIT)
|
||||||||||||||||||
|
|
|
|
|
|
(In millions)
|
||||||||||||||||||||||||||||||||
|
For the Six Months Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
BALANCE AT DECEMBER 31, 2018
|
|
$
|
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Net loss attributable to common stock
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||||||||
|
Net income attributable to noncontrolling interest - Egypt
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|||||||||
|
Net loss attributable to noncontrolling interest - Altus
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||
|
Issuance of Altus Preferred Units
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
|
Net income attributable to Altus Preferred Unit holders
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
|
Distributions to noncontrolling interest - Egypt
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||
|
Common dividends ($0.50 per share)
|
|
—
|
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||||||||
|
Other
|
|
—
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|||||||||
|
BALANCE AT JUNE 30, 2019
|
|
$
|
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
For the Six Months Ended June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
BALANCE AT DECEMBER 31, 2019
|
|
$
|
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Net loss attributable to common stock
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||||||||
|
Net loss attributable to noncontrolling interest - Egypt
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||
|
Net loss attributable to noncontrolling interest - Altus
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||
|
Net income attributable to Altus Preferred Unit limited partners
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
|
Distributions to noncontrolling interest - Egypt
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
(
|
)
|
|||||||||
|
Common dividends ($0.05 per share)
|
|
—
|
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||||||||
|
Other
|
|
—
|
|
|
|
|
|
|
(
|
)
|
|
—
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|
—
|
|
|
(
|
)
|
|||||||||
|
BALANCE AT JUNE 30, 2020
|
|
$
|
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
1.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
|
|
|
For the Quarter Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
|
|
(In millions)
|
||||||||||||||
|
Oil and gas proved property
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Gathering, processing, and transmission facilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Goodwill
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Divested unproved properties and leasehold
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Inventory and other
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total Impairments
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
For the Quarter Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
|
|
(In millions)
|
||||||||||||||
|
Proved Properties:
|
|
|
|
|
|
|
|
|
||||||||
|
U.S.
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Egypt
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
North Sea
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total Proved
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Unproved Properties:
|
|
|
|
|
|
|
|
|
||||||||
|
U.S.
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Egypt
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total Unproved
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
2
.
|
ACQUISITIONS AND DIVESTITURES
|
|
|
|
|
|
Fixed Price Swaps
|
|||
|
Production Period
|
|
Settlement Index
|
|
Mbbls
|
|
Weighted Average Fixed Price
|
|
|
July—September 2020
|
|
NYMEX WTI
|
|
|
|
|
$
|
|
July—September 2020
|
|
Dated Brent
|
|
|
|
|
$
|
|
|
|
|
|
Collars
|
|||||||
|
Production Period
|
|
Settlement Index
|
|
Mbbls
|
|
Weighted Average Floor Sold Price
|
|
Weighted Average Floor Purchased Price
|
|
Weighted Average Ceiling Price
|
|
|
July—September 2020
|
|
NYMEX WTI
|
|
|
|
|
$
|
|
$
|
|
$
|
|
October—December 2020
|
|
NYMEX WTI
|
|
|
|
|
$
|
|
$
|
|
$
|
|
July—September 2020
|
|
Dated Brent
|
|
|
|
|
$
|
|
$
|
|
$
|
|
October—December 2020
|
|
Dated Brent
|
|
|
|
|
$
|
|
$
|
|
$
|
|
|
|
|
|
Basis Swap Purchased
|
|
Basis Swap Sold
|
||||||
|
Production Period
|
|
Settlement Index
|
|
Mbbls
|
|
Weighted Average Price Differential
|
|
Mbbls
|
|
Weighted Average Price Differential
|
||
|
July—December 2020
|
|
Midland-WTI/Cushing-WTI
|
|
|
|
|
|
|
|
|
|
$(
|
|
October—December 2020
|
|
Midland-WTI/Cushing-WTI
|
|
|
|
|
$
|
|
|
|
|
|
|
|
|
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, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Commodity Derivative Instruments
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Pipeline Capacity Embedded Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Foreign Currency Derivative Instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Preferred Units Embedded Derivative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Pipeline Capacity Embedded Derivative
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Foreign Currency Derivative Instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Preferred Units Embedded Derivative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
(1)
|
The derivative fair values are based on analysis of each contract on a gross basis, excluding the impact of netting agreements with counterparties.
|
|
|
|
Quantitative Information About Level 3 Fair Value Measurements
|
||||||||
|
|
|
Fair Value at June 30, 2020
|
|
Valuation Technique
|
|
Significant Unobservable Inputs
|
|
Range/Value
|
||
|
|
|
(In millions)
|
|
|
|
|
|
|
||
|
Preferred Units Embedded Derivative
|
|
$
|
|
|
|
Option Model
|
|
Altus’ Imputed Interest Rate
|
|
14.16-15.57%
|
|
|
|
|
|
|
|
Interest Rate Volatility
|
|
|
||
|
|
|
June 30, 2020
|
|
December 31, 2019
|
||||
|
|
|
(In millions)
|
||||||
|
Current Assets: Other current assets
|
|
$
|
|
|
|
$
|
|
|
|
Other Assets: Deferred charges and other
|
|
|
|
|
|
|
||
|
Total Assets
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
|
|
||||
|
Current Liabilities: Other current liabilities
|
|
$
|
|
|
|
$
|
|
|
|
Deferred Credits and Other Noncurrent Liabilities: Other
|
|
|
|
|
|
|
||
|
Total Liabilities
|
|
$
|
|
|
|
$
|
|
|
|
|
|
For the Quarter Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||||
|
|
|
(In millions)
|
||||||||||||||
|
Realized:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Commodity derivative instruments
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
Foreign currency derivative instruments
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
||||
|
Treasury-lock
|
|
|
|
|
(
|
)
|
|
|
|
|
(
|
)
|
||||
|
Realized gain (loss), net
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
||||
|
Unrealized:
|
|
|
|
|
|
|
|
|
||||||||
|
Commodity derivative instruments
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
|
Pipeline capacity embedded derivatives
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
||||
|
Foreign currency derivative instruments
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||
|
Preferred units embedded derivative
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
||||
|
Treasury-lock
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Unrealized gain (loss), net
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
|
Derivative instrument losses, net
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
5.
|
OTHER CURRENT ASSETS
|
|
|
|
June 30, 2020
|
|
December 31, 2019
|
||||
|
|
|
(In millions)
|
||||||
|
Inventories
|
|
$
|
|
|
|
$
|
|
|
|
Drilling advances
|
|
|
|
|
|
|
||
|
Prepaid assets and other
|
|
|
|
|
|
|
||
|
Total Other current assets
|
|
$
|
|
|
|
$
|
|
|
|
6
.
|
EQUITY METHOD INTERESTS
|
|
|
|
Interest
|
|
June 30, 2020
|
|
December 31, 2019
|
|||||
|
|
|
|
|
(In millions)
|
|||||||
|
Gulf Coast Express Pipeline LLC
|
|
|
%
|
|
$
|
|
|
|
$
|
|
|
|
EPIC Crude Holdings, LP
|
|
|
%
|
|
|
|
|
|
|
||
|
Permian Highway Pipeline LLC
|
|
|
%
|
|
|
|
|
|
|
||
|
Shin Oak Pipeline (Breviloba, LLC)
|
|
|
%
|
|
|
|
|
|
|
||
|
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
Gulf Coast Express Pipeline LLC
|
|
EPIC Crude Holdings, LP
|
|
Permian Highway Pipeline LLC
|
|
Breviloba, LLC
|
|
Total
|
||||||||||
|
|
|
(In millions)
|
||||||||||||||||||
|
Balance at December 31, 2019
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Capital contributions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Distributions
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|
(
|
)
|
|||||
|
Capitalized interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Equity income (loss), net
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
|
|
|||||
|
Accumulated other comprehensive loss
|
|
|
|
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|||||
|
Balance at June 30, 2020
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
For the Six Months Ended June 30,
|
||||||
|
|
|
2020
|
|
2019
(1)
|
||||
|
|
|
(In millions)
|
||||||
|
Operating revenues
|
|
$
|
|
|
|
$
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
||
|
Operating income
|
|
|
|
|
|
|
||
|
Net income
|
|
|
|
|
|
|
||
|
Other comprehensive loss
|
|
(
|
)
|
|
(
|
)
|
||
|
(1)
|
Although Altus’ interests in EPIC Crude Holdings, LP, Permian Highway Pipeline LLC, and Breviloba, LLC were acquired in March, May, and July 2019, respectively, the combined financial results are presented for the
six
months ended
June 30, 2019
for comparability.
|
|
7.
|
OTHER CURRENT LIABILITIES
|
|
|
|
June 30, 2020
|
|
December 31, 2019
|
||||
|
|
|
(In millions)
|
||||||
|
Accrued operating expenses
|
|
$
|
|
|
|
$
|
|
|
|
Accrued exploration and development
|
|
|
|
|
|
|
||
|
Accrued gathering, processing, and transmission - Altus
|
|
|
|
|
|
|
||
|
Accrued compensation and benefits
|
|
|
|
|
|
|
||
|
Accrued interest
|
|
|
|
|
|
|
||
|
Accrued income taxes
|
|
|
|
|
|
|
||
|
Current asset retirement obligation
|
|
|
|
|
|
|
||
|
Current operating lease liability
|
|
|
|
|
|
|
||
|
Current derivative liability
|
|
|
|
|
|
|
||
|
Other
|
|
|
|
|
|
|
||
|
Total Other current liabilities
|
|
$
|
|
|
|
$
|
|
|
|
8.
|
ASSET RETIREMENT OBLIGATION
|
|
|
|
(In millions)
|
||
|
Asset retirement obligation at December 31, 2019
|
|
$
|
|
|
|
Liabilities incurred
|
|
|
|
|
|
Liabilities settled
|
|
(
|
)
|
|
|
Liabilities divested
|
|
(
|
)
|
|
|
Accretion expense
|
|
|
|
|
|
Asset retirement obligation at June 30, 2020
|
|
|
|
|
|
Less current portion
|
|
(
|
)
|
|
|
Asset retirement obligation, long-term
|
|
$
|
|
|
|
9.
|
INCOME TAXES
|
|
10
.
|
DEBT AND FINANCING COSTS
|
|
|
|
June 30, 2020
|
|
December 31, 2019
|
||||
|
|
|
(In millions)
|
||||||
|
Notes and debentures before unamortized discount and debt issuance costs
(1)
|
|
$
|
|
|
|
$
|
|
|
|
Altus credit facility
(2)
|
|
|
|
|
|
|
||
|
Apache credit facility
(2)
|
|
|
|
|
|
|
||
|
Finance lease obligations
|
|
|
|
|
|
|
||
|
Unamortized discount
|
|
(
|
)
|
|
(
|
)
|
||
|
Debt issuance costs
|
|
(
|
)
|
|
(
|
)
|
||
|
Total debt
|
|
|
|
|
|
|
||
|
Current maturities
|
|
(
|
)
|
|
(
|
)
|
||
|
Long-term debt
|
|
$
|
|
|
|
$
|
|
|
|
(1)
|
The fair values of the Company’s notes and debentures were
$
|
|
(2)
|
The carrying amount of borrowings on credit facilities approximates fair value because the interest rates are variable and reflective of market rates.
|
|
|
|
For the Quarter Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
|
|
(In millions)
|
||||||||||||||
|
Interest expense
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Amortization of debt issuance costs
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Capitalized interest
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
|
Loss (gain) on extinguishment of debt
|
|
(
|
)
|
|
|
|
|
(
|
)
|
|
|
|
||||
|
Interest income
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
||||
|
Financing costs, net
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
11
.
|
COMMITMENTS AND CONTINGENCIES
|
|
12.
|
REDEEMABLE NONCONTROLLING INTEREST - ALTUS
|
|
|
|
June 12, 2019
|
||
|
|
|
(In millions)
|
||
|
Redeemable noncontrolling interest - Altus Preferred Unit Limited Partners
|
|
$
|
|
|
|
Preferred Units embedded derivative
|
|
|
|
|
|
|
|
$
|
|
|
|
|
|
Units Outstanding
|
|
Financial Position
(1)
|
|||
|
|
|
(In millions, except unit data)
|
|||||
|
Redeemable noncontrolling interest - Altus Preferred Unit Limited Partners: at December 31, 2019
|
|
|
|
|
$
|
|
|
|
Distribution of in-kind additional Preferred Units
|
|
|
|
|
|
|
|
|
Allocation of Altus Midstream LP net income
|
|
N/A
|
|
|
|
|
|
|
Redeemable noncontrolling interest - Altus Preferred Unit Limited Partners: at June 30, 2020
|
|
|
|
|
|
|
|
|
Preferred Units embedded derivative
|
|
|
|
|
|
||
|
|
|
|
|
$
|
|
|
|
|
(1)
|
As at
June 30, 2020
, the aggregate Redemption Price was
$
|
|
13.
|
CAPITAL STOCK
|
|
|
|
For the Quarter Ended June 30,
|
||||||||||||||||||||
|
|
|
2020
|
|
2019
|
||||||||||||||||||
|
|
|
Loss
|
|
Shares
|
|
Per Share
|
|
Loss
|
|
Shares
|
|
Per Share
|
||||||||||
|
|
|
(In millions, except per share amounts)
|
||||||||||||||||||||
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Loss attributable to common stock
|
|
$
|
(
|
)
|
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
|
|
|
$
|
(
|
)
|
|
Effect of Dilutive Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Stock options and other
|
|
$
|
—
|
|
|
|
|
|
$
|
|
|
|
$
|
—
|
|
|
|
|
|
$
|
|
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Loss attributable to common stock
|
|
$
|
(
|
)
|
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
|
|
|
$
|
(
|
)
|
|
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||
|
|
|
2020
|
|
2019
|
||||||||||||||||||
|
|
|
Loss
|
|
Shares
|
|
Per Share
|
|
Loss
|
|
Shares
|
|
Per Share
|
||||||||||
|
|
|
(In millions, except per share amounts)
|
||||||||||||||||||||
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Loss attributable to common stock
|
|
$
|
(
|
)
|
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
|
|
|
$
|
(
|
)
|
|
Effect of Dilutive Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Stock options and other
|
|
$
|
—
|
|
|
|
|
|
$
|
|
|
|
$
|
—
|
|
|
|
|
|
$
|
|
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Loss attributable to common stock
|
|
$
|
(
|
)
|
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
|
|
|
$
|
(
|
)
|
|
14
.
|
BUSINESS SEGMENT INFORMATION
|
|
|
|
Egypt
(1)
|
|
North Sea
|
|
U.S.
|
|
Altus
|
|
Intersegment Eliminations & Other
|
|
Total
(2)
|
||||||||||||
|
|
|
Upstream
|
|
Midstream
|
|
|
||||||||||||||||||
|
|
|
(In millions)
|
||||||||||||||||||||||
|
For the Quarter Ended June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Oil revenues
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Natural gas revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Natural gas liquids revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Oil, natural gas, and natural gas liquids production revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
||||||
|
Purchased oil and gas sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Midstream service affiliate revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
(
|
)
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Lease operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Gathering, processing, and transmission
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Purchased oil and gas costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Taxes other than income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Exploration
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Depreciation, depletion, and amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Asset retirement obligation accretion
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Impairments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Operating Income (Loss)
(3)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
(
|
)
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Derivative instrument losses, net
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||||||||
|
Other, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||||||||
|
Transaction, reorganization, and separation
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||||||||
|
Financing costs, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Loss Before Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(
|
)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
Egypt
(1)
|
|
North Sea
|
|
U.S.
|
|
Altus
|
|
Intersegment Eliminations & Other
|
|
Total
(2)
|
||||||||||||
|
|
|
Upstream
|
|
Midstream
|
|
|
||||||||||||||||||
|
|
|
(In millions)
|
||||||||||||||||||||||
|
For the Six Months Ended June 30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Oil revenues
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Natural gas revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Natural gas liquids revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Oil, natural gas, and natural gas liquids production revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
||||||
|
Purchased oil and gas sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Midstream service affiliate revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
(
|
)
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Lease operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Gathering, processing, and transmission
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Purchased oil and gas costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Taxes other than income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Exploration
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Depreciation, depletion, and amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Asset retirement obligation accretion
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Impairments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Operating Income (Loss)
(3)
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
(
|
)
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Gain on divestitures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Derivative instrument losses, net
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||||||||
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||||||||
|
Transaction, reorganization, and separation
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||||||||
|
Financing costs, net
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||||||||
|
Loss Before Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(
|
)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Total Assets
(4)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
Egypt
(1)
|
|
North Sea
|
|
U.S.
|
|
Altus
|
|
Intersegment Eliminations & Other
|
|
Total
(2)
|
||||||||||||
|
|
|
Upstream
|
|
Midstream
|
|
|
||||||||||||||||||
|
|
|
(In millions)
|
||||||||||||||||||||||
|
For the Quarter Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Oil revenues
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Natural gas revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Natural gas liquids revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Oil, natural gas, and natural gas liquids production revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
||||||
|
Purchased oil and gas sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Midstream service affiliate revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
(
|
)
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Lease operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Gathering, processing, and transmission
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Purchased oil and gas costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Taxes other than income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Exploration
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Depreciation, depletion, and amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Asset retirement obligation accretion
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Impairments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Operating Income (Loss)
(3)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
$
|
(
|
)
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Gain on divestitures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Derivative instrument losses, net
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||||||||
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||||||||
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||||||||
|
Transaction, reorganization, and separation
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||||||||
|
Financing costs, net
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||||||||
|
Loss Before Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(
|
)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
Egypt
(1)
|
|
North Sea
|
|
U.S.
|
|
Altus
|
|
Intersegment Eliminations & Other
|
|
Total
(2)
|
||||||||||||
|
|
|
Upstream
|
|
Midstream
|
|
|
||||||||||||||||||
|
|
|
(In millions)
|
||||||||||||||||||||||
|
For the Six Months Ended June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Oil revenues
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Natural gas revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Natural gas liquids revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Oil, natural gas, and natural gas liquids production revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
||||||
|
Purchased oil and gas sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Midstream service affiliate revenues
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
(
|
)
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Operating Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Lease operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Gathering, processing, and transmission
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Purchased oil and gas costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Taxes other than income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Exploration
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Depreciation, depletion, and amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Asset retirement obligation accretion
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Impairments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
|
||||||
|
Operating Income (Loss)
(3)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
(
|
)
|
|
|
|
|
|
Other Income (Expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Gain on divestitures, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Derivative instrument losses, net
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||||||||
|
Other, net
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||||||||
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||||||||
|
Transaction, reorganization, and separation
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||||||||
|
Financing costs, net
|
|
|
|
|
|
|
|
|
|
|
|
(
|
)
|
|||||||||||
|
Income Before Income Taxes
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Total Assets
(4)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
(1)
|
Includes revenue from non-customers of:
|
|
|
|
For the Quarter Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
|
|
(In millions)
|
||||||||||||||
|
Oil
|
|
$
|
(
|
)
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
Natural gas
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Natural gas liquids
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
(2)
|
Includes a noncontrolling interest in Egypt and Altus.
|
|
(3)
|
The operating income (loss) of U.S. and Egypt includes leasehold and other asset impairments totaling
$
|
|
(4)
|
Intercompany balances are excluded from total assets.
|
|
ITEM 2
.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
•
|
Establishing and implementing a wide range of fit-for-purpose protocols and procedures to ensure a safe and productive work environment across the Company’s diversified global onshore and offshore operations.
|
|
•
|
Executing planned activity reductions on schedule and delivering upstream capital investment for the first half of 2020 of $658 million, a 45 percent reduction from the comparative prior-year period. This reduction included eliminating nearly all U.S. drilling and completion activity by May 2020 and reducing planned activity in Egypt and the North Sea.
|
|
•
|
Implementing an organizational redesign, which will achieve a combined overhead and LOE (as defined below) cost savings of more than $300 million annually, with estimated cash savings, net of severance and restructuring costs, of $225 million in 2020.
|
|
•
|
Decreasing the Company’s dividend by 90 percent beginning in the first quarter of 2020, preserving approximately $340 million of cash flow on an annualized basis and strengthening liquidity.
|
|
•
|
Further protecting cash flows from downside price dislocation by entering into a substantial hedge position, primarily surrounding second-half 2020 production, as the Company believes there will be higher volatility risk during this period.
|
|
•
|
Conducting, on a continuous basis, thorough price sensitivity analyses and operational evaluations of producing wells across the Company’s portfolio that allows for a methodical and integrated approach to production shut-ins and curtailments with a focus on preserving cash flows in a distressed price environment and protecting the Company’s assets.
|
|
•
|
Second
quarter equivalent production from Apache’s U.S. assets decreased
five percent
from the second quarter of 2019 as a result of reduced activity in response to commodity price weakness. The Company averaged 2 rigs in the U.S. during the second quarter of 2020, compared to 12 average rigs in the prior-year quarter. As of the end of the quarter, the Company had eliminated all U.S. drilling and completion activity in the U.S.
|
|
•
|
Egypt gross production
decreased
13 percent
, and net production
decreased
3 percent
from the
second
quarter of
2019
, primarily a result of natural decline and fewer wells brought on-line during the period. The Company continues to build and enhance its robust drilling inventory in the country, supplemented with recent seismic acquisitions and new play concept evaluations on both new and existing acreage.
|
|
•
|
The North Sea averaged 2 rigs and completed 1 gross development well during the
second
quarter of
2020
. The Company’s daily production in the North Sea
decreased
four percent
from the
second
quarter
2019
, primarily the result of natural decline and production curtailments.
|
|
•
|
In April 2020, Apache announced a significant oil discovery at the Sapakara West-1 well drilled offshore Suriname on Block 58. Sapakara West-1 was drilled to a depth of approximately 6,300 meters (20,700 feet) and successfully tested for the presence of hydrocarbons in multiple stacked targets in the upper Cretaceous-aged Campanian and Santonian intervals. This follows the January 2020 announcement of a discovery at the Maka Central-1 well, for which the Company submitted a plan of appraisal during the quarter. Apache holds a 50 percent working interest in Block 58.
|
|
•
|
In July 2020, Apache announced a major oil discovery at the Kwaskwasi-1 well drilled offshore Suriname on Block 58. Kwaskwasi-1 was drilled to a depth of approximately 6,645 meters (21,800 feet) and successfully tested for the presence of hydrocarbons in multiple stacked targets in the upper Cretaceous-aged Campanian and Santonian intervals. This is the third consecutive oil discovery offshore Suriname. The Company will drill a fourth exploration well in the block at the Keskesi prospect immediately following conclusion of operations at the Kwaskwasi-1 well, after which Apache will transition operatorship of the block to its partner Total S.A.
|
|
|
|
For the Quarter Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||||||
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||||||||||||||
|
|
|
$
Value
|
|
%
Contribution
|
|
$
Value
|
|
%
Contribution
|
|
$
Value
|
|
%
Contribution
|
|
$
Value
|
|
%
Contribution
|
||||||||||||
|
|
|
($ in millions)
|
||||||||||||||||||||||||||
|
Oil Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
United States
|
|
$
|
198
|
|
|
39
|
%
|
|
$
|
537
|
|
|
38
|
%
|
|
$
|
626
|
|
|
41
|
%
|
|
$
|
1,033
|
|
|
38
|
%
|
|
Egypt
(1)
|
|
187
|
|
|
36
|
%
|
|
523
|
|
|
38
|
%
|
|
520
|
|
|
33
|
%
|
|
1,037
|
|
|
38
|
%
|
||||
|
North Sea
|
|
128
|
|
|
25
|
%
|
|
337
|
|
|
24
|
%
|
|
399
|
|
|
26
|
%
|
|
637
|
|
|
24
|
%
|
||||
|
Total
(1)
|
|
$
|
513
|
|
|
100
|
%
|
|
$
|
1,397
|
|
|
100
|
%
|
|
$
|
1,545
|
|
|
100
|
%
|
|
$
|
2,707
|
|
|
100
|
%
|
|
Natural Gas Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
United States
|
|
$
|
53
|
|
|
41
|
%
|
|
$
|
30
|
|
|
25
|
%
|
|
$
|
92
|
|
|
36
|
%
|
|
$
|
153
|
|
|
43
|
%
|
|
Egypt
(1)
|
|
70
|
|
|
54
|
%
|
|
70
|
|
|
60
|
%
|
|
135
|
|
|
54
|
%
|
|
151
|
|
|
43
|
%
|
||||
|
North Sea
|
|
7
|
|
|
5
|
%
|
|
18
|
|
|
15
|
%
|
|
26
|
|
|
10
|
%
|
|
50
|
|
|
14
|
%
|
||||
|
Total
(1)
|
|
$
|
130
|
|
|
100
|
%
|
|
$
|
118
|
|
|
100
|
%
|
|
$
|
253
|
|
|
100
|
%
|
|
$
|
354
|
|
|
100
|
%
|
|
Natural Gas Liquids (NGL) Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
United States
|
|
$
|
50
|
|
|
93
|
%
|
|
$
|
75
|
|
|
90
|
%
|
|
$
|
121
|
|
|
90
|
%
|
|
$
|
173
|
|
|
91
|
%
|
|
Egypt
(1)
|
|
1
|
|
|
2
|
%
|
|
3
|
|
|
4
|
%
|
|
4
|
|
|
3
|
%
|
|
7
|
|
|
3
|
%
|
||||
|
North Sea
|
|
3
|
|
|
5
|
%
|
|
5
|
|
|
6
|
%
|
|
10
|
|
|
7
|
%
|
|
11
|
|
|
6
|
%
|
||||
|
Total
(1)
|
|
$
|
54
|
|
|
100
|
%
|
|
$
|
83
|
|
|
100
|
%
|
|
$
|
135
|
|
|
100
|
%
|
|
$
|
191
|
|
|
100
|
%
|
|
Oil and Gas Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
United States
|
|
$
|
301
|
|
|
43
|
%
|
|
$
|
642
|
|
|
40
|
%
|
|
$
|
839
|
|
|
43
|
%
|
|
$
|
1,359
|
|
|
42
|
%
|
|
Egypt
(1)
|
|
258
|
|
|
37
|
%
|
|
596
|
|
|
37
|
%
|
|
659
|
|
|
34
|
%
|
|
1,195
|
|
|
37
|
%
|
||||
|
North Sea
|
|
138
|
|
|
20
|
%
|
|
360
|
|
|
23
|
%
|
|
435
|
|
|
23
|
%
|
|
698
|
|
|
21
|
%
|
||||
|
Total
(1)
|
|
$
|
697
|
|
|
100
|
%
|
|
$
|
1,598
|
|
|
100
|
%
|
|
$
|
1,933
|
|
|
100
|
%
|
|
$
|
3,252
|
|
|
100
|
%
|
|
(1)
|
Includes revenues attributable to a noncontrolling interest in Egypt.
|
|
|
|
For the Quarter Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||
|
|
|
2020
|
|
Increase
(Decrease)
|
|
2019
|
|
2020
|
|
Increase
(Decrease)
|
|
2019
|
||||||
|
Oil Volume – b/d
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
United States
|
|
94,471
|
|
|
(8
|
)%
|
|
103,010
|
|
|
98,042
|
|
|
(7
|
)%
|
|
105,878
|
|
|
Egypt
(1)(2)
|
|
79,839
|
|
|
(5
|
)%
|
|
83,761
|
|
|
76,509
|
|
|
(13
|
)%
|
|
87,667
|
|
|
North Sea
|
|
47,016
|
|
|
(6
|
)%
|
|
50,055
|
|
|
51,139
|
|
|
(2
|
)%
|
|
52,279
|
|
|
Total
|
|
221,326
|
|
|
(7
|
)%
|
|
236,826
|
|
|
225,690
|
|
|
(8
|
)%
|
|
245,824
|
|
|
Natural Gas Volume – Mcf/d
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
United States
|
|
518,156
|
|
|
(13
|
)%
|
|
594,238
|
|
|
557,999
|
|
|
(17
|
)%
|
|
668,858
|
|
|
Egypt
(1)(2)
|
|
279,561
|
|
|
1
|
%
|
|
277,552
|
|
|
267,070
|
|
|
(10
|
)%
|
|
296,425
|
|
|
North Sea
|
|
52,612
|
|
|
5
|
%
|
|
50,121
|
|
|
59,945
|
|
|
12
|
%
|
|
53,488
|
|
|
Total
|
|
850,329
|
|
|
(8
|
)%
|
|
921,911
|
|
|
885,014
|
|
|
(13
|
)%
|
|
1,018,771
|
|
|
NGL Volume – b/d
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
United States
|
|
69,759
|
|
|
13
|
%
|
|
61,974
|
|
|
75,570
|
|
|
25
|
%
|
|
60,428
|
|
|
Egypt
(1)(2)
|
|
909
|
|
|
1
|
%
|
|
898
|
|
|
914
|
|
|
(11
|
)%
|
|
1,023
|
|
|
North Sea
|
|
1,733
|
|
|
4
|
%
|
|
1,673
|
|
|
1,934
|
|
|
11
|
%
|
|
1,748
|
|
|
Total
|
|
72,401
|
|
|
12
|
%
|
|
64,545
|
|
|
78,418
|
|
|
24
|
%
|
|
63,199
|
|
|
BOE per day
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
United States
|
|
250,589
|
|
|
(5
|
)%
|
|
264,024
|
|
|
266,612
|
|
|
(4
|
)%
|
|
277,782
|
|
|
Egypt
(1)(2)
|
|
127,342
|
|
|
(3
|
)%
|
|
130,917
|
|
|
121,934
|
|
|
(12
|
)%
|
|
138,094
|
|
|
North Sea
(4)
|
|
57,517
|
|
|
(4
|
)%
|
|
60,082
|
|
|
63,064
|
|
|
—
|
|
|
62,942
|
|
|
Total
|
|
435,448
|
|
|
(4
|
)%
|
|
455,023
|
|
|
451,610
|
|
|
(6
|
)%
|
|
478,818
|
|
|
(1)
|
Gross oil, natural gas, and NGL production in Egypt were as follows:
|
|
|
|
For the Quarter Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||
|
Oil (b/d)
|
|
171,897
|
|
|
198,534
|
|
|
177,762
|
|
|
201,245
|
|
|
Natural Gas (Mcf/d)
|
|
642,003
|
|
|
729,378
|
|
|
648,706
|
|
|
742,474
|
|
|
NGL (b/d)
|
|
1,649
|
|
|
1,840
|
|
|
1,715
|
|
|
1,952
|
|
|
(2)
|
Includes net production volumes per day attributable to a noncontrolling interest in Egypt of:
|
|
|
|
For the Quarter Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||
|
Oil (b/d)
|
|
26,609
|
|
|
27,939
|
|
|
25,604
|
|
|
29,239
|
|
|
Natural Gas (Mcf/d)
|
|
92,625
|
|
|
92,639
|
|
|
89,148
|
|
|
98,990
|
|
|
NGL (b/d)
|
|
303
|
|
|
299
|
|
|
304
|
|
|
341
|
|
|
(3)
|
The table shows production on a boe basis in which natural gas is converted to an equivalent barrel of oil based on a 6:1 energy equivalent ratio. This ratio is not reflective of the price ratio between the two products.
|
|
(4)
|
Average sales volumes from the North Sea for the
second
quarter of
2020
and
2019
were
54,996
boe/d and
64,156
boe/d, respectively, and
64,133
boe/d and
63,669
boe/d for the first
six
months of 2020 and 2019, respectively. Sales volumes may vary from production volumes as a result of the timing of liftings in the Beryl field.
|
|
|
|
For the Quarter Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||
|
|
|
2020
|
|
Increase
(Decrease) |
|
2019
|
|
2020
|
|
Increase
(Decrease) |
|
2019
|
||||||||||
|
Average Oil Price - Per barrel
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
United States
|
|
$
|
23.02
|
|
|
(60
|
)%
|
|
$
|
57.25
|
|
|
$
|
35.09
|
|
|
(35
|
)%
|
|
$
|
53.90
|
|
|
Egypt
|
|
25.80
|
|
|
(62
|
)%
|
|
68.60
|
|
|
37.36
|
|
|
(43
|
)%
|
|
65.36
|
|
||||
|
North Sea
|
|
31.55
|
|
|
(54
|
)%
|
|
68.43
|
|
|
41.94
|
|
|
(37
|
)%
|
|
66.35
|
|
||||
|
Total
|
|
25.77
|
|
|
(60
|
)%
|
|
63.71
|
|
|
37.44
|
|
|
(38
|
)%
|
|
60.65
|
|
||||
|
Average Natural Gas Price - Per Mcf
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
United States
|
|
$
|
1.13
|
|
|
105
|
%
|
|
$
|
0.55
|
|
|
$
|
0.90
|
|
|
(29
|
)%
|
|
$
|
1.26
|
|
|
Egypt
|
|
2.73
|
|
|
(2
|
)%
|
|
2.80
|
|
|
2.78
|
|
|
(1
|
)%
|
|
2.82
|
|
||||
|
North Sea
|
|
1.43
|
|
|
(64
|
)%
|
|
3.99
|
|
|
2.41
|
|
|
(53
|
)%
|
|
5.18
|
|
||||
|
Total
|
|
1.68
|
|
|
19
|
%
|
|
1.41
|
|
|
1.57
|
|
|
(18
|
)%
|
|
1.92
|
|
||||
|
Average NGL Price - Per barrel
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
United States
|
|
$
|
7.81
|
|
|
(42
|
)%
|
|
$
|
13.57
|
|
|
$
|
8.77
|
|
|
(45
|
)%
|
|
$
|
15.96
|
|
|
Egypt
|
|
20.97
|
|
|
(36
|
)%
|
|
32.90
|
|
|
26.36
|
|
|
(26
|
)%
|
|
35.56
|
|
||||
|
North Sea
|
|
20.35
|
|
|
(40
|
)%
|
|
33.67
|
|
|
29.29
|
|
|
(21
|
)%
|
|
37.27
|
|
||||
|
Total
|
|
8.28
|
|
|
(42
|
)%
|
|
14.37
|
|
|
9.48
|
|
|
(44
|
)%
|
|
16.87
|
|
||||
|
|
|
For the Quarter Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
|
|
(In millions)
|
||||||||||||||
|
Lease operating expenses
|
|
$
|
264
|
|
|
$
|
389
|
|
|
$
|
599
|
|
|
$
|
754
|
|
|
Gathering, processing, and transmission
|
|
72
|
|
|
76
|
|
|
143
|
|
|
164
|
|
||||
|
Purchased oil and gas costs
|
|
46
|
|
|
15
|
|
|
132
|
|
|
37
|
|
||||
|
Taxes other than income
|
|
23
|
|
|
46
|
|
|
56
|
|
|
97
|
|
||||
|
Exploration
|
|
72
|
|
|
95
|
|
|
129
|
|
|
164
|
|
||||
|
General and administrative
|
|
94
|
|
|
102
|
|
|
162
|
|
|
225
|
|
||||
|
Transaction, reorganization, and separation
|
|
10
|
|
|
6
|
|
|
37
|
|
|
10
|
|
||||
|
Depreciation, depletion, and amortization:
|
|
|
|
|
|
|
|
|
||||||||
|
Oil and gas property and equipment
|
|
387
|
|
|
562
|
|
|
918
|
|
|
1,169
|
|
||||
|
GPT assets
|
|
19
|
|
|
25
|
|
|
39
|
|
|
48
|
|
||||
|
Other assets
|
|
12
|
|
|
15
|
|
|
27
|
|
|
31
|
|
||||
|
Asset retirement obligation accretion
|
|
27
|
|
|
26
|
|
|
54
|
|
|
53
|
|
||||
|
Impairments
|
|
20
|
|
|
240
|
|
|
4,492
|
|
|
240
|
|
||||
|
Financing costs, net
|
|
(34
|
)
|
|
173
|
|
|
69
|
|
|
270
|
|
||||
|
|
|
For the Quarter Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
|
|
(In millions)
|
||||||||||||||
|
Third-party processing and transmission costs
|
|
$
|
62
|
|
|
$
|
62
|
|
|
$
|
123
|
|
|
$
|
134
|
|
|
Midstream service affiliate costs
|
|
32
|
|
|
23
|
|
|
72
|
|
|
56
|
|
||||
|
Upstream processing and transmission costs
|
|
94
|
|
|
85
|
|
|
195
|
|
|
190
|
|
||||
|
Midstream operating expenses
|
|
10
|
|
|
14
|
|
|
20
|
|
|
30
|
|
||||
|
Intersegment eliminations
|
|
(32
|
)
|
|
(23
|
)
|
|
(72
|
)
|
|
(56
|
)
|
||||
|
Total Gathering, processing, and transmission
|
|
$
|
72
|
|
|
$
|
76
|
|
|
$
|
143
|
|
|
$
|
164
|
|
|
|
|
For the Quarter Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
|
|
(In millions)
|
||||||||||||||
|
Unproved leasehold impairments
|
|
$
|
31
|
|
|
$
|
39
|
|
|
$
|
50
|
|
|
$
|
62
|
|
|
Dry hole expense
|
|
23
|
|
|
18
|
|
|
47
|
|
|
28
|
|
||||
|
Geological and geophysical expense
|
|
4
|
|
|
18
|
|
|
7
|
|
|
36
|
|
||||
|
Exploration overhead and other
|
|
14
|
|
|
20
|
|
|
25
|
|
|
38
|
|
||||
|
Total Exploration
|
|
$
|
72
|
|
|
$
|
95
|
|
|
$
|
129
|
|
|
$
|
164
|
|
|
|
|
For the Quarter Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
|
|
(In millions)
|
||||||||||||||
|
Interest expense
|
|
$
|
107
|
|
|
$
|
109
|
|
|
$
|
214
|
|
|
$
|
216
|
|
|
Amortization of debt issuance costs
|
|
2
|
|
|
1
|
|
|
4
|
|
|
3
|
|
||||
|
Capitalized interest
|
|
(2
|
)
|
|
(9
|
)
|
|
(6
|
)
|
|
(17
|
)
|
||||
|
Loss (gain) on extinguishment of debt
|
|
(140
|
)
|
|
75
|
|
|
(140
|
)
|
|
75
|
|
||||
|
Interest income
|
|
(1
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
(7
|
)
|
||||
|
Financing costs, net
|
|
$
|
(34
|
)
|
|
$
|
173
|
|
|
$
|
69
|
|
|
$
|
270
|
|
|
•
|
continuing to advance exploratory and appraisal programs in Suriname under the terms of the Company’s joint venture with Total S.A.;
|
|
•
|
allocating a portion of the reduced capital spending to Egypt and the North Sea to maintain their capacity to generate cash flow and generally provide better returns than onshore U.S. in lower price environments; and
|
|
•
|
eliminating virtually all U.S. drilling and completion activity.
|
|
|
|
For the Six Months Ended June 30,
|
||||||
|
|
|
2020
|
|
2019
|
||||
|
|
|
(In millions)
|
||||||
|
Sources of Cash and Cash Equivalents:
|
|
|
|
|
||||
|
Net cash provided by operating activities
|
|
$
|
586
|
|
|
$
|
1,454
|
|
|
Proceeds from Apache credit facility, net
|
|
565
|
|
|
—
|
|
||
|
Proceeds from Altus credit facility, net
|
|
97
|
|
|
—
|
|
||
|
Proceeds from sale of oil and gas properties
|
|
126
|
|
|
247
|
|
||
|
Fixed-rate debt borrowings
|
|
—
|
|
|
989
|
|
||
|
Redeemable noncontrolling interest - Altus Preferred Unit limited partners
|
|
—
|
|
|
611
|
|
||
|
|
|
1,374
|
|
|
3,301
|
|
||
|
Uses of Cash and Cash Equivalents:
|
|
|
|
|
||||
|
Additions to oil and gas property
(1)
|
|
$
|
838
|
|
|
$
|
1,386
|
|
|
Additions to Altus gathering, processing, and transmission facilities
(1)
|
|
25
|
|
|
246
|
|
||
|
Leasehold and property acquisitions
|
|
3
|
|
|
34
|
|
||
|
Altus equity method interests
|
|
154
|
|
|
438
|
|
||
|
Payments on fixed-rate debt
|
|
264
|
|
|
1,000
|
|
||
|
Dividends paid
|
|
104
|
|
|
188
|
|
||
|
Distributions to noncontrolling interest - Egypt
|
|
40
|
|
|
164
|
|
||
|
Other
|
|
58
|
|
|
10
|
|
||
|
|
|
1,486
|
|
|
3,466
|
|
||
|
Decrease in cash and cash equivalents
|
|
$
|
(112
|
)
|
|
$
|
(165
|
)
|
|
(1)
|
The table presents capital expenditures on a cash basis; therefore, the amounts may differ from those discussed elsewhere in this Quarterly Report on Form 10-Q, which include accruals.
|
|
|
|
June 30, 2020
|
|
December 31, 2019
|
||||
|
|
|
(In millions)
|
||||||
|
Cash and cash equivalents
|
|
$
|
135
|
|
|
$
|
247
|
|
|
Total debt - Apache
|
|
8,324
|
|
|
8,170
|
|
||
|
Total debt - Altus
|
|
493
|
|
|
396
|
|
||
|
Equity (deficit)
|
|
(636
|
)
|
|
4,465
|
|
||
|
Available committed borrowing capacity - Apache
|
|
2,640
|
|
|
4,000
|
|
||
|
Available committed borrowing capacity - Altus
|
|
307
|
|
|
404
|
|
||
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
|
ITEM 1A.
|
RISK FACTORS
|
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
|
ITEM 6.
|
EXHIBITS
|
|
3.1
|
–
|
|
|
3.2
|
–
|
|
|
3.3
|
–
|
|
|
*31.1
|
–
|
|
|
*31.2
|
–
|
|
|
*32.1
|
–
|
|
|
*101
|
–
|
The following financial statements from the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, formatted in Inline XBRL: (i) Statement of Consolidated Operations, (ii) Statement of Consolidated Comprehensive Income (Loss), (iii) Statement of Consolidated Cash Flows, (iv) Consolidated Balance Sheet, (v) Statement of Consolidated Changes in Equity and Noncontrolling Interest and (vi) Notes to Consolidated Financial Statements, tagged as blocks of text and including detailed tags.
|
|
*101.SCH
|
–
|
Inline XBRL Taxonomy Schema Document.
|
|
*101.CAL
|
–
|
Inline XBRL Calculation Linkbase Document.
|
|
*101.DEF
|
–
|
Inline XBRL Definition Linkbase Document.
|
|
*101.LAB
|
–
|
Inline XBRL Label Linkbase Document.
|
|
*101.PRE
|
–
|
Inline XBRL Presentation Linkbase Document.
|
|
*104
|
–
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
|
|
*
|
Filed herewith
|
|
|
|
|
APACHE CORPORATION
|
|
|
|
|
|
|
Dated:
|
July 30, 2020
|
|
/s/ STEPHEN J. RINEY
|
|
|
|
|
Stephen J. Riney
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
|
|
(Principal Financial Officer)
|
|
|
|
|
|
|
Dated:
|
July 30, 2020
|
|
/s/ REBECCA A. HOYT
|
|
|
|
|
Rebecca A. Hoyt
|
|
|
|
|
Senior Vice President, Chief Accounting Officer, and Controller
|
|
|
|
|
(Principal Accounting Officer)
|
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
| FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
|---|
| DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
|---|
No information found
No Customers Found
Price
Yield
| Owner | Position | Direct Shares | Indirect Shares |
|---|