Apache Corp. (NYSE:APA)

The analyzed financial data reflects notable trends in revenues, expenses, profitability, and balance sheet components over the five-year period ending December 31, 2015.

Revenue Trends

Oil revenues demonstrated an overall declining trend, peaking near $13.2 billion in 2012 before decreasing significantly to approximately $5 billion by 2015. Gas revenues followed a similar downward pattern, falling from about $3.6 billion in 2011 to nearly $1.2 billion in 2015. Revenues from natural gas liquids showed slight growth from 2011 to 2014, but then dropped sharply in 2015 to $227 million. Overall oil and gas production revenues declined steadily from $16.8 billion in 2011 to $6.4 billion in 2015, reflecting the cumulative effect of falling commodity prices or production volumes.

Cost and Expense Dynamics

Lease operating expenses decreased from approximately $2.6 billion in 2011 to $1.85 billion in 2015, indicative of cost control or reduced activity levels. Gathering and transportation costs remained relatively stable but declined slightly toward the end of the period. Total cost of revenues decreased from $2.9 billion to $2.1 billion over the period. Depreciation, depletion, and amortization (DD&A) expenses significantly increased, more than doubling from $4.2 billion in 2011 to nearly $29.4 billion in 2015, signaling heavy asset write-downs or accelerated depreciation. Additional impairments and write-offs related to oil and gas property and equipment escalated substantially, with a marked spike to over $29 billion in 2015, pointing to a major reassessment of asset values.

Profitability Metrics

Gross profit declined markedly from $13.9 billion in 2011 to $4.3 billion in 2015, consistent with the reduction in revenues and cost pressures. Operating income showed a drastic reversal, turning from a positive $8.2 billion in 2011 to a substantial operating loss nearing $28 billion in 2015. This loss stemmed largely from the sharp increase in asset impairments and depreciation expenses. Net income from continuing operations, after income taxes, followed the same trajectory, decreasing sharply and resulting in a net loss of over $23 billion attributable to shareholders by 2015. The income tax provision fluctuated, showing a provision in early years but recording a significant tax benefit of $5.5 billion in 2015, which may reflect tax effects related to impairment charges or losses. The company also encountered net losses from discontinued operations in the last two years examined, further impacting the bottom line.

Other Financial Considerations

Recurring costs increased over the period, hitting approximately $3.5 billion in 2015, while additional costs related to transactions, reorganization, and separation showed volatility, spiking in 2014 and 2015. Interest expense and financing costs rose over the final years, reaching nearly $300 million in 2015, which could indicate increased debt or less favorable financing conditions. Gains or losses from derivative instruments and other miscellaneous items exhibited variability but were relatively minor compared to other line items.

Summary of Financial Position and Performance

The data indicates a significant deterioration in financial performance, particularly in the last two years, driven primarily by declining commodity prices or volumes, substantial asset impairments, and elevated depreciation expenses. While operating efficiencies may have contributed to reductions in certain operating expenses, they were insufficient to offset revenue declines and large non-cash charges. The substantial losses reported in 2014 and 2015 suggest considerable challenges in maintaining profitability and point to potential restructuring or strategic reassessment needs.