Apache Corp. (NYSE:APA)

Current Taxes

The current tax expense demonstrates a clear downward trend over the five-year period. Starting at 2,263 million US dollars in 2011, the amount decreases steadily each year, culminating at 309 million US dollars in 2015. This pronounced reduction represents a significant contraction in current tax liabilities, potentially reflecting changes in taxable income, tax planning strategies, or shifts in operational profitability.

Deferred Taxes

The deferred tax figures show a fluctuating pattern with an overall declining trajectory, ending in a steep negative value in 2015. Initially, the deferred tax expense is 1,246 million US dollars in 2011, dropping consistently to 263 million in 2013. A slight recovery occurs in 2014, increasing to 495 million, before a substantial reversal to -5,778 million in 2015. The negative deferred tax figure in 2015 indicates a deferred tax benefit, suggesting significant changes in temporary differences or adjustments in tax rates or tax assets and liabilities.

Provision (Benefit) for Income Taxes from Continuing Operations

The total provision for income taxes from continuing operations decreases notably over the period. Starting with an expense of 3,509 million US dollars in 2011, the amount declines annually to 1,637 million by 2014. The trend culminates in a substantial tax benefit of 5,469 million US dollars in 2015, driven largely by the deferred tax component. This shift from a tax expense to a tax benefit signals a material tax event or revaluation, markedly affecting the overall tax position of the entity.

Overall Insights

Across the observed timeframe, the data reveals a consistent decrease in current tax expenses accompanied by more volatile deferred tax figures, culminating in a significant deferred tax benefit in the final year. This results in a reversal from a tax expense to a tax benefit in the total tax provision for continuing operations in 2015. These trends suggest considerable changes in taxation circumstances, possibly including tax law changes, impairment losses, or adjustment of deferred tax assets and liabilities affecting reported tax expenses.

The data reveals several significant trends and fluctuations in the financial items over the five-year period ending in 2015.

Deferred income

Deferred income shows notable variability. It starts at 89 million in 2011, drops sharply to 33 million in 2012, rises substantially to 153 million in 2013, disappears in 2014, and declines again to 20 million in 2015. Additionally, separate deferred income entries indicate negative amounts beginning in 2014, with increasing negative values of -24 million and -140 million in 2014 and 2015 respectively, suggesting some reversal or adjustment in deferred income recognition.

Net operating loss carryforwards

U.S. net operating loss carryforwards experience significant growth from 236 million in 2011 to a peak of 1333 million in 2014, followed by a sharp decline to 329 million in 2015. Foreign net operating loss carryforwards exhibit a continuous and pronounced upward trend, rising from 55 million in 2011 to a substantial 1507 million in 2015. This indicates an increasing accumulation of tax losses potentially available for future tax relief.

Tax credits and other tax incentives

Tax credits fluctuate moderately, increasing from 66 million in 2011 to a high of 78 million in 2012, then decreasing to 42 million in 2014 before recovering to 82 million in 2015. Foreign tax credit carryforwards appear only in 2015, with a significant value of 2090 million, implying a new recognition or acquisition of foreign tax credits.

Accrued expenses and liabilities

Accrued expenses and liabilities demonstrate inconsistency, with values jumping from 90 million in 2011 to a low of 2 million in 2012, then rising to 162 million in 2013, decreasing again to 68 million in 2014 and increasing to 136 million in 2015. The fluctuations suggest variability in short-term obligations or timing differences in expense recognition.

Asset retirement obligation

Asset retirement obligation is recorded starting 2012 at 1677 million, decreasing annually to 1037 million by 2015, indicating ongoing reduction in estimated retirement liabilities or possible asset disposals.

Property and equipment

Property and equipment amounts show a complex pattern. Initially, there is no data until a value of 3880 million in 2015 under one entry, while another entry related to property and equipment presents large negative amounts consistently from 2011 to 2014, before drastically decreasing in magnitude to -1574 million in 2015. This discrepancy may reflect reclassifications or differing accounting treatments over time.

Deferred tax assets and valuation allowance

Deferred tax assets increase substantially from 536 million in 2011 to 9081 million in 2015, reflecting increased future tax benefit expectations. Conversely, the valuation allowance, which reduces the value of deferred tax assets, becomes more negative from -60 million in 2011 to -6530 million in 2015, suggesting a growing skepticism about the realizability of these assets. The net deferred tax assets therefore show growth through 2012 but decline from 2013 to 2015, indicating a more conservative stance on asset realization.

Other

Other items maintain relatively small negative values consistently from -21 million in 2011 to -1 million in 2015, showing minor impact overall.

Investment in foreign subsidiaries

Investment in foreign subsidiaries appears in 2014 and 2015 with negative values (-1654 million and -1903 million respectively), suggesting potential impairment losses or restructuring activities.

Deferred tax liabilities

Deferred tax liabilities remain substantially negative and relatively stable around -10 billion from 2011 to 2014, then decrease in magnitude to -3618 million in 2015, indicating significant changes in tax obligations or classification adjustments.

Net deferred income tax asset (liability)

This measure shows a negative balance throughout the period, worsening from -6988 million in 2011 to -8741 million in 2014, before improving to -1067 million in 2015. The improvement in 2015 may indicate changes in tax planning, asset realization assumptions, or liability settlements.

Overall, the data highlights considerable volatility and shifts in tax-related and asset-liability accounts over the five years. Increases in net operating loss carryforwards and deferred tax assets suggest accrual of deferred tax benefits, while the growing valuation allowance and persistent deferred tax liabilities point to caution in recognizing those benefits as fully realizable. The trends in investments and asset retirement obligations denote significant adjustments in asset management and long-term planning. The substantial changes in 2015, particularly in deferred income, tax credits, and liabilities, imply notable restructuring or tax strategy revisions during that period.

Deferred Tax Assets

The current deferred tax asset was reported starting in 2014, showing a significant value of 134 million USD, which then increased substantially to 769 million USD in 2015. This indicates a growing recognition of short-term tax benefits during this period.

The noncurrent deferred tax asset, included within deferred charges and other, exhibited a declining trend from 33 million USD in 2013 down to 5 million USD by the end of 2015. This decrease suggests a gradual utilization or revaluation of long-term deferred tax assets.

Deferred Tax Liabilities

The current deferred tax liability, included in other current liabilities, was reported as 39 million USD in 2013 and decreased to 28 million USD in 2014. There is no data for this item in other years, limiting trend analysis.

Noncurrent deferred tax liabilities showed a rising trend from 7,197 million USD in 2011 to a peak of 9,499 million USD in 2014, representing continuous growth during these years. However, in 2015, there was a sharp decline to 1,072 million USD. This significant drop could indicate substantial liability settlements, reclassifications, or changes in tax regulations affecting long-term obligations.

Overall Insights

The data reveals a notable shift in deferred tax balances between 2014 and 2015, with an increase in current deferred tax assets contrasting with a dramatic decrease in noncurrent deferred tax liabilities. This shift points toward possible restructuring of tax-related items or adjustments in the company's tax strategy or accounting treatments during that period.

The financial data presented reveals several notable trends and patterns across the periods from December 31, 2011, to December 31, 2015, when analyzing both reported and adjusted figures related to current assets, total assets, liabilities, shareholders’ equity, and net income.

Current Assets

Reported current assets increased consistently from 2011 until 2014, peaking at 6,415 million USD, followed by a significant decline to 3,752 million USD in 2015. Adjusted current assets mirror this pattern but show a less pronounced peak in 2013 and a more notable drop in 2014, indicating downward adjustments were made primarily during that year.

Total Assets

Both reported and adjusted total assets demonstrate growth from 2011 through 2013, reaching above 61 billion USD, before declining in 2014 and sharply falling in 2015 to below 19 billion USD. Adjusted totals consistently remain slightly below reported figures, reflecting the impact of deferred income tax adjustments and other considerations accumulated over time.

Current Liabilities

Reported current liabilities show an initial rise from 4,963 million USD in 2011 to 5,536 million USD in 2012, then a declining trend through 2015 to 1,841 million USD. Adjusted current liabilities follow a very similar pattern, though the adjusted values tend to be slightly lower starting from 2013, suggesting some liabilities were reduced upon adjustment.

Total Liabilities

The reported total liabilities exhibit growth from 23,058 million USD in 2011 to a peak of 29,406 million USD in 2012, then fluctuations and a decrease to 14,614 million USD in 2015. Adjusted total liabilities start significantly lower than reported in 2011 and maintain a steady, lower level throughout the periods, with a peak in 2012 at 21,382 million USD and a decrease to 13,542 million USD by 2015. This differential indicates that deferred tax and other accounting adjustments have had material impacts on the liability figures over time.

Shareholders’ Equity

The reported shareholders’ equity increases moderately from 28,993 million USD in 2011 to a maximum in 2013 at 33,396 million USD but declines sharply thereafter to 2,566 million USD in 2015. Conversely, adjusted shareholders’ equity starts higher than reported and shows a steady increase until 2013, reaching 41,632 million USD, then declines but remains markedly higher than the reported values by 2015 at 3,633 million USD. This suggests that adjustments have supported a more robust equity position over the years despite the marked downturn in 2014 and 2015.

Net Income (Loss) Attributable to Shareholders

Reported net income peaked in 2011 at 4,584 million USD, dwindled to just over 2,232 million USD in 2013, and then shifted to significant losses in 2014 and 2015, reaching a loss of 23,119 million USD. Adjusted net income follows a similar trend but starts higher at 5,830 million USD in 2011, and although it decreases gradually until 2013, the losses in 2014 and 2015 are more pronounced, culminating in a nearly 29,000 million USD loss by 2015. The adjustment amplifies the reported loss trend, potentially reflecting additional tax-related provisions or expense reclassifications.

Overall, the data exhibits a strong growth phase until 2013 followed by deterioration in key financial metrics, including assets, equity, and profitability, particularly in 2014 and 2015. The difference between reported and adjusted figures highlights the considerable impact of deferred income tax adjustments and other reconciliations on financial position and performance, especially visible in the reduction of liabilities and enhancement of equity figures prior to 2014, but with adjustments exacerbating reported losses in later years.

Current Ratio Trends

The reported current ratio exhibited an upward trend from 0.97 in 2011 to 2.04 in 2015, indicating a steady improvement in short-term liquidity over the five-year period. Adjusted current ratio values closely followed the reported figures, with a slight divergence in 2014 where it stood at 1.55 compared to a reported 1.75, but aligning again at 2.04 in 2015. This suggests adjustments for deferred income taxes had minor but noticeable impacts on liquidity assessment.

Net Profit Margin Analysis

Both reported and adjusted net profit margins showed considerable volatility. Starting strongly in 2011 with reported margins at 27.27% and adjusted at 34.68%, margins declined sharply over time. Notably, net profit margins became negative in 2014, with reported at -39.3% and adjusted at -35.7%, worsening drastically in 2015 to -362.2% reported and -452.72% adjusted. The extreme negative margins in the final year suggest significant operational or non-operational challenges, with deferred tax adjustments exacerbating the loss perception.

Total Asset Turnover Patterns

The total asset turnover ratios, both reported and adjusted, showed a mild decreasing trend from 0.32 in 2011 to 0.25 by 2014, before rebounding to 0.34 in 2015. This pattern indicates a slight decline in asset utilization efficiency mid-period, followed by recovery in the last year. The identical values for reported and adjusted ratios imply minimal effect from deferred tax adjustments on asset utilization measurement.

Financial Leverage Insights

Financial leverage ratios increased generally over the period. Reported financial leverage rose from 1.8 in 2011 to a sharp jump of 7.34 in 2015, indicating a significant increase in the use of debt relative to equity. Adjusted leverage exhibited similar behavior but at lower levels, increasing from 1.45 to 5.18. This escalation suggests increasing financial risk, with adjustments reflecting a somewhat mitigated but still substantial rise in leverage.

Return on Equity (ROE) Evaluation

ROE showed a marked decline over the period under both reported and adjusted measures. The reported ROE fell from 15.81% in 2011 to negative territory by 2014 at -20.83%, plunging dramatically to -900.97% in 2015. Adjusted ROE echoed this decline albeit with less severity, dropping from 16.2% to -795.4%. These extremes indicate severe profitability issues, with deferred tax adjustments slightly tempering but not eliminating negative returns to shareholders.

Return on Assets (ROA) Development

Similarly, ROA declined noticeably, with reported values descending from 8.81% in 2011 to -122.7% in 2015. Adjusted ROA went from 11.2% down to -153.41% during the same timeframe. The increasingly negative ROA highlights deteriorating asset profitability. Adjustments for deferred taxes intensified the negative figures, underscoring the adverse impact of taxation timing differences on performance measurement.

The data reveals notable fluctuations in both current assets and current liabilities over the five-year period. Reported current assets increased steadily from 2011 to 2014, peaking at 6,415 million US dollars, before experiencing a significant decline to 3,752 million in 2015. Adjusted current assets similarly rose through 2013, then decreased more sharply after 2013, reflecting adjustments that reduced asset values primarily in 2014.

Current liabilities showed a contrasting trend, with reported values generally declining each year, falling from 4,963 million US dollars in 2011 to 1,841 million in 2015. Adjusted liabilities trended similarly but displayed a minor difference in 2013 and 2014, where the adjusted figures were slightly lower than reported, indicating some reclassification or exclusion of certain liabilities during those years.

The current ratios illustrate improving liquidity conditions throughout the time frame. The reported current ratio started below 1.0 in 2011 and 2012, indicating potential short-term liquidity challenges, before rising sharply to 2.04 in 2015. This improvement is driven both by the growth in current assets up to 2014 and the substantial reduction in current liabilities over the entire period. The adjusted current ratio follows a similar pattern but registers a somewhat lower value in 2014, suggesting that adjustments to assets and liabilities moderated the perceived improvement in liquidity during that year.

Overall, the trends indicate a strengthening liquidity position by 2015, primarily due to significantly reduced current liabilities and a partial decline in current assets. The adjustments applied appear to have a modest impact on the assessment of liquidity, particularly noticeable in 2014, implying cautious application of tax-related modifications to balance sheet components without materially altering the upward trend in the current ratio.

Reported Net Income (Loss) Attributable to Apache Shareholders

The reported net income experienced a significant decline over the five-year period. Starting at $4,584 million in 2011, it dropped substantially to $2,001 million in 2012 and then showed a slight increase to $2,232 million in 2013. However, in 2014, the company reported a sharp loss of $5,403 million, which deepened considerably to a loss of $23,119 million in 2015. This indicates a severe deterioration in financial performance towards the end of the period.

Adjusted Net Income (Loss) Attributable to Apache Shareholders

The adjusted net income follows a similar downward trend as the reported net income but with slightly higher values each year. It started at $5,830 million in 2011, declined to $2,678 million in 2012, and marginally decreased again to $2,495 million in 2013. Losses appeared in 2014 with an adjusted loss of $4,908 million, which further worsened to a loss of $28,897 million in 2015. The adjusted figures suggest that after accounting for certain items, the financial outcome remained severely negative in the latter years, even more so than the reported figures in 2015.

Reported Net Profit Margin

The reported net profit margin mirrored the trend in net income, beginning at a strong 27.27% in 2011 and declining to 11.81% in 2012 before modestly improving to 13.61% in 2013. In 2014, the margin turned negative, showing a significant loss margin of -39.3%, which further expanded dramatically to -362.2% in 2015. This pronounced negative margin reflects substantial losses relative to revenue in the final years analyzed.

Adjusted Net Profit Margin

The adjusted net profit margin was consistently higher than the reported margin from 2011 through 2013, starting at 34.68% in 2011 and declining progressively to 15.8% in 2012 and 15.21% in 2013. Negative margins were recorded in 2014 and 2015, at -35.7% and an extreme -452.72%, respectively. The adjusted margin deterioration indicates that even after adjusting for certain items, profitability declined sharply, with losses intensifying by 2015.

The data reflects the financial condition and efficiency of the company over a five-year period, focusing on total assets and total asset turnover, both in reported and adjusted terms.

Total Assets (Reported and Adjusted)

The reported total assets increased steadily from 52,051 million US dollars in 2011 to a peak of 61,637 million in 2013. This was followed by a decline to 55,952 million in 2014 and a significant drop to 18,842 million in 2015. The adjusted total assets presented a similar trend, rising initially from 52,051 million in 2011 to 61,470 million in 2013, then decreasing to 55,166 million in 2014 and sharply falling to 18,837 million in 2015. This indicates a consistent asset base with minor discrepancies between reported and adjusted figures until 2015, when a substantial reduction occurred, possibly reflecting asset sales, impairments, or restructuring activities.

Total Asset Turnover (Reported and Adjusted)

The total asset turnover ratio demonstrated a decreasing trend from 0.32 in 2011 to 0.25 in 2014, suggesting declining operational efficiency in utilizing assets to generate revenue. However, in 2015, the ratio rebounded sharply to 0.34, the highest in the observed period. The adjusted turnover ratios mirrored the reported ones exactly, affirming consistency between reported and adjusted data in terms of operational efficiency measurements. The increase in turnover ratio in 2015, coupled with the reduction in total assets, suggests that the company may have improved its efficiency or revenue generation relative to a diminished asset base during that year.

Asset Trends

The reported total assets increased from 52,051 million USD in 2011 to a peak of 61,637 million USD in 2013, followed by a decline to 18,842 million USD by the end of 2015. The adjusted total assets follow a similar pattern, peaking slightly lower at 61,470 million USD in 2013 and then decreasing to 18,837 million USD in 2015. This indicates a significant contraction in asset size during the latter period.

Shareholders’ Equity Trends

Reported total shareholders’ equity showed an overall increase from 28,993 million USD in 2011 to 33,396 million USD in 2013 before declining sharply to 2,566 million USD by 2015. Conversely, adjusted shareholders’ equity also increased from 35,981 million USD in 2011 to 41,632 million USD in 2013 but saw a reduction to 3,633 million USD in 2015. The adjusted figures are consistently higher than reported equity, suggesting adjustments that possibly account for deferred taxes or other factors enhance the equity base.

Financial Leverage Trends

Reported financial leverage ratio fluctuated moderately between 1.8 and 2.16 from 2011 through 2014, but escalated sharply to 7.34 in 2015. Adjusted financial leverage shows a similar trajectory, increasing gently from 1.45 in 2011 to 1.59 in 2014 before rising sharply to 5.18 in 2015. The dramatic increase in leverage ratios in 2015 indicates a significant rise in debt relative to equity, likely due to both the decline in equity and assets.

Overall Insights

The data indicates a period of growth in assets and equity up to 2013, followed by a marked decline through 2015. The steep increase in financial leverage ratios in 2015 reflects increased financial risk, as equity diminished considerably while liabilities likely remained substantial. The adjusted figures, accounting for deferred and other tax effects, tend to present a moderately more robust equity position and lower leverage, though the downward and upward trends are consistent with reported data. This suggests that deferred income tax adjustments materially affect the financial structure but do not change the overall trend of asset contraction and rising leverage.

Reported Net Income (Loss) Attributable to Apache Shareholders

The reported net income demonstrates a declining trend over the periods considered. Starting from a positive income of 4584 million USD in 2011, the figure dropped significantly to 2001 million USD in 2012, followed by a slight increase to 2232 million USD in 2013. However, in 2014, the company reported a substantial loss of 5403 million USD, which further deteriorated in 2015 to a loss of 23119 million USD.

Adjusted Net Income (Loss) Attributable to Apache Shareholders

Adjusted net income, which accounts for certain tax effects, follows a similar negative trajectory as reported income but with consistently higher values in positive years and deeper losses in negative years. It increased from 5830 million USD in 2011 to 2678 million USD in 2012, slightly decreased to 2495 million USD in 2013, and then reflected significant losses of 4908 million USD and 28897 million USD in 2014 and 2015, respectively.

Reported Total Apache Shareholders’ Equity

The reported shareholders’ equity expanded from 28993 million USD in 2011 to a peak of 33396 million USD in 2013. Afterward, it decreased markedly to 25937 million USD in 2014 and plummeted to 2566 million USD in 2015, indicating a significant erosion of the company's net asset base over the last two years.

Adjusted Total Apache Shareholders’ Equity

Adjusted equity, which incorporates income tax effects, shows a similar pattern to reported equity but with consistently higher values in earlier years. It rose steadily from 35981 million USD in 2011 to 41632 million USD in 2013, followed by a decline to 34678 million USD in 2014 and a sharp fall to 3633 million USD in 2015, reflecting the substantial losses and their impact on equity.

Reported Return on Equity (ROE)

Reported ROE aligns with the trends in reported net income and shareholders' equity. Starting at a high positive rate of 15.81% in 2011, it declined to 6.39% in 2012 and remained relatively stable at 6.68% in 2013. The ROE turned sharply negative in 2014, reaching -20.83%, and exhibited an extreme downward movement to -900.97% in 2015, highlighting the deteriorating profitability relative to shareholder equity.

Adjusted Return on Equity (ROE)

Adjusted ROE follows a similar trajectory, beginning at 16.20% in 2011, declining to 6.83% in 2012, and then dipping slightly to 5.99% in 2013. In 2014, it turned negative to -14.15% and plummeted further to an extreme negative value of -795.40% in 2015. This indicates severely diminished returns to adjusted equity holders, consistent with the reported data.

Overall, the data reveals a pronounced decline in both income and equity positions for the company over the five-year period. The shift from profitability to substantial losses beginning in 2014 significantly affected shareholder wealth and return on equity. Adjusted figures, accounting for income tax considerations, tend to present a less favorable view than reported results, particularly in terms of net income and equity valuation. The extreme negative ROE values in 2015 highlight a critical period of financial distress and capital erosion.

The financial data reveals significant volatility and a marked decline in profitability and asset base over the five-year period ending December 31, 2015. Both reported and adjusted net income attributable to Apache shareholders exhibit a decreasing trend, culminating in substantial losses in the final two years.

Net Income Analysis

Reported net income started at a positive level of $4,584 million in 2011 and fell dramatically to a loss of $5,403 million in 2014, then further declined to a loss of $23,119 million in 2015. Adjusted net income followed a similar trajectory, beginning at $5,830 million in 2011, decreasing steadily, and also resulting in significant losses of $4,908 million in 2014 and $28,897 million in 2015. This pattern indicates increasing operational or non-operational challenges influencing the company’s earnings, with adjustments exacerbating the apparent losses in the final years.

Total Assets

Reported total assets increased from $52,051 million in 2011 to $61,637 million in 2013, then contracted sharply to $18,842 million by 2015. Adjusted total assets show a similar trend, with a peak near $61,470 million in 2013 followed by a comparable decline to $18,837 million in 2015. This indicates a significant reduction in asset base post-2013, likely attributable to disposals, impairments, or restructuring activities.

Return on Assets (ROA)

Reported ROA mirrored the net income trend, starting at a robust 8.81% in 2011, declining to 3.62% in 2013, then turning negative at -9.66% in 2014 and sharply worsening to -122.7% in 2015. Adjusted ROA followed a similar pattern but with slightly higher starting and ending values: from 11.2% in 2011, declining to 4.06% in 2013, then negative at -8.9% in 2014 and drastically decreasing to -153.41% in 2015. These figures reflect declining asset profitability, with the final years indicating severe inefficiency or losses relative to the remaining asset base.

Overall, the data point to a period of deteriorating financial health characterized by substantial net losses and a steep contraction in total assets. The decline in ROA further emphasizes the reduced efficiency and profitability of the asset utilization during this timeframe. Adjustments to net income amplify these negative trends, suggesting that non-recurring or specific accounting items had material impacts on reported figures.