Stock Analysis on Net
Stock Analysis on Net

Apache Corp. (NYSE:APA)

$22.49

This company has been moved to the archive! The financial data has not been updated since August 4, 2016.

Common-Size Income Statement

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Apache Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2015 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011
Oil revenues
Gas revenues
Natural gas liquids revenues
Oil and gas production revenues
Lease operating expenses
Gathering and transportation
Cost of revenues
Gross profit
Recurring
Additional
Oil and gas property and equipment
Other assets
Depreciation, depletion, and amortization
Asset retirement obligation accretion
Taxes other than income
Impairments
General and administrative
Transaction, reorganization, and separation
Operating income (loss)
Derivative instrument gains (losses), net
Other
Interest expense, net of capitalized interest
Amortization of deferred loan costs
Gain (loss) on extinguishment of debt
Interest income
Financing costs, net
Net income (loss) from continuing operations before income taxes
Income tax (provision) benefit
Net income (loss) from continuing operations including noncontrolling interest
Net loss from discontinued operations, net of tax
Net income (loss) including noncontrolling interest
Net (income) loss attributable to noncontrolling interest
Net income (loss) attributable to Apache shareholders
Preferred stock dividends
Income (loss) attributable to common stock

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

Revenue Composition
The proportion of oil revenues within total oil and gas production revenues exhibited a gradual increase from 75.43% in 2011 to 78.32% in 2015, indicating a growing reliance on oil. Gas revenues showed a declining trend from 21.47% to 18.13% over the same period, while natural gas liquids revenues fluctuated, peaking at 4.86% in 2014 before declining to 3.56% in 2015. Overall, oil and gas production revenues remained steady at 100% each year, reflecting the composition of different revenue streams.
Cost Structure and Profitability
Costs related to oil and gas production demonstrated a notable increase as a percentage of production revenues. Lease operating expenses rose sharply from -15.5% in 2011 to -29.05% in 2015. Gathering and transportation costs also increased from -1.76% to -3.31%. Consequently, total cost of revenues expanded from -17.26% to -32.35%. This escalation in costs contributed to a decline in gross profit from 82.74% in 2011 to 67.65% in 2015, signaling a contraction in profitability on the production revenue base.
Recurring and Additional Expenses
Recurring expenses increased significantly over the period, from -22.69% in 2011 to -55.32% in 2015. Additional expenses showed extreme volatility and an alarming increase, particularly in 2015 reaching -399.77%, which appears to reflect extraordinary or non-recurring charges, likely associated with asset impairments or major write-downs.
Asset and Depreciation Impairments
Depreciation, depletion, and amortization expenses spiked dramatically towards the latter years, going from -25.01% in 2011 to a significant -460.16% in 2015. Similarly, oil and gas property and equipment costs showed a comparable increase in negative impact, moving from -23.34% to -455.08%. Impairments, not reported until 2014, deepened from -17.14% to -30.08% in 2015. This pattern reveals substantial asset write-downs and increased capital cost charges in the last two years, severely affecting earnings.
Other Costs and Administrative Expenses
Taxes other than income remained relatively stable, slightly decreasing from -5.35% to -4.42%. General and administrative expenses rose moderately, especially in 2015 where they increased to -5.91% from around -3% in earlier years. Transaction-related costs also grew from negligible percentages to -2.07% in 2015, suggesting heightened restructuring or organizational activity.
Operating Income and Financial Performance
Operating income experienced a sharp downturn, starting from a positive 48.62% in 2011 and turning into a substantial loss of -437.26% by 2015. This marked deterioration aligns with escalating costs, impairments, and asset write-downs.
Financial Expenses and Income
Interest expense and financing costs went up notably in 2015, with net interest expense increasing from approximately -1% to -4.06%, and financing costs net rising similarly to -4.68%. Amortization of deferred loan costs remained minimal but increased slightly. Interest income stayed almost constant, reflecting stable investment income.
Net Income and Tax Effects
Before income taxes, net income shifted dramatically from a healthy positive percentage (48.14% in 2011) to a significant loss (-442.21%) in 2015. The income tax provision turned from a consistent expense (-20.87% in 2011) to a notable tax benefit (85.68%) in 2015, likely reflecting losses and deferred tax assets. Yet, net income including noncontrolling interests mirrored operating difficulties, plunging from 27.27% in 2011 to a deep loss of -368.6% in 2015. Net income attributable to common shareholders followed the same pattern, culminating in a significant negative return.
Additional Observations
Net losses from discontinued operations increased in the last two years, negatively impacting overall earnings. Derivative instrument gains and losses showed some volatility but minimal impact overall. The fluctuating but growing negative values in noncontrolling interest indicate changes in ownership structure or losses impacting outside shareholders.