Analysis of Geographic Areas
Apache Corp. operates in 4 regions: United States; Canada; Egypt; and U.K. North Sea.
Area Profit Margin
Apache Corp., profit margin by geographic area
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| United States | -737.24% | -39.08% | 31.57% | 37.12% | 46.40% |
| Canada | -779.72% | 10.53% | 0.90% | -141.23% | 22.20% |
| Egypt | -8.33% | 51.94% | 61.04% | 69.52% | 73.62% |
| U.K. North Sea | -155.70% | 0.91% | 17.60% | 35.95% | 42.71% |
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).
A comprehensive deterioration in profit margins is observed across all geographic segments between 2011 and 2015. While the initial years showed varying levels of profitability, every analyzed region transitioned to a negative margin by the end of the period, with an extreme acceleration of losses occurring in 2015.
- United States
- The United States segment experienced a steady decline in profitability from 46.40% in 2011 to 31.57% in 2013. This trend shifted abruptly in 2014, when the margin fell to -39.08%, culminating in a catastrophic collapse to -737.24% by December 31, 2015.
- Canada
- The Canadian operations exhibited significant volatility. After starting at 22.20% in 2011, the margin dropped sharply to -141.23% in 2012 before recovering to a modest 10.53% in 2014. However, this recovery was short-lived, as the region recorded the most severe loss among all segments in 2015 at -779.72%.
- Egypt
- Egypt was the most resilient and profitable region for the majority of the period. Although there was a consistent downward trend from a peak of 73.62% in 2011 to 51.94% in 2014, the region maintained positive margins longer than any other geography. A transition to a negative margin occurred only in 2015, reaching -8.33%.
- U.K. North Sea
- Profitability in the U.K. North Sea declined linearly throughout the period. Margins eroded from 42.71% in 2011 to near-zero (0.91%) by 2014. This downward trajectory continued into 2015, resulting in a negative margin of -155.70%.
The convergence of all geographic margins into negative territory by 2015 suggests systemic pressures affecting the entire operational portfolio. The magnitude of the losses in the North American markets compared to the relatively smaller deficit in Egypt indicates a disproportionate impact on the United States and Canada during the final year of the analysis.
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Area Profit Margin: United States
Apache Corp.; United States; area profit margin calculation
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | (19,441) | (2,245) | 2,179) | 2,311) | 2,832) |
| Oil and gas production revenues | 2,637) | 5,744) | 6,902) | 6,226) | 6,103) |
| Area Profitability Ratio | |||||
| Area profit margin1 | -737.24% | -39.08% | 31.57% | 37.12% | 46.40% |
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).
1 2015 Calculation
Area profit margin = 100 × Operating income (loss) ÷ Oil and gas production revenues
= 100 × -19,441 ÷ 2,637 = -737.24%
The financial performance within the United States area between 2011 and 2015 is characterized by a transition from robust profitability to severe operational losses. While the initial three-year period showed resilience, a precipitous decline began in 2014 and accelerated significantly through 2015, resulting in a collapse of both earnings and margins.
- Revenue Trends
- Oil and gas production revenues exhibited a period of moderate growth, rising from 6,103 million US dollars in 2011 to a peak of 6,902 million US dollars in 2013. This upward trend reversed sharply in 2014, with revenues falling to 5,744 million US dollars, followed by a steep decline to 2,637 million US dollars by the end of 2015.
- Operating Income Trajectory
- Operating income experienced a steady contraction from 2,832 million US dollars in 2011 to 2,179 million US dollars in 2013. A critical pivot occurred in 2014, as the area swung to an operating loss of 2,245 million US dollars. This deficit expanded exponentially in 2015, reaching a loss of 19,441 million US dollars.
- Area Profit Margin Analysis
- The area profit margin showed a continuous downward trend throughout the period. After starting at 46.40% in 2011, the margin compressed to 31.57% by 2013. The subsequent collapse led to a negative margin of -39.08% in 2014, which plummeted further to -737.24% in 2015, signaling that operating losses were vastly disproportionate to the revenues generated during that final fiscal year.
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Area Profit Margin: Canada
Apache Corp.; Canada; area profit margin calculation
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | (3,883) | 115) | 11) | (1,867) | 359) |
| Oil and gas production revenues | 498) | 1,092) | 1,224) | 1,322) | 1,617) |
| Area Profitability Ratio | |||||
| Area profit margin1 | -779.72% | 10.53% | 0.90% | -141.23% | 22.20% |
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).
1 2015 Calculation
Area profit margin = 100 × Operating income (loss) ÷ Oil and gas production revenues
= 100 × -3,883 ÷ 498 = -779.72%
The Canadian operational segment experienced significant financial instability and a consistent decline in revenue between 2011 and 2015. Performance was characterized by extreme volatility in operating results, culminating in substantial losses and a precipitous drop in profitability margins.
- Oil and Gas Production Revenues
- A continuous downward trajectory is observed, with revenues decreasing from 1,617 million US$ in 2011 to 498 million US$ by 2015. The most severe contraction occurred in the final year of the period, where revenues declined by approximately 54% compared to the 2014 level.
- Operating Income Performance
- Operating results exhibited severe fluctuations over the five-year period. Following a profitable 2011, a substantial operating loss of 1,867 million US$ was recorded in 2012. Although a period of marginal recovery occurred in 2013 and 2014, with income reaching 115 million US$, this was followed by a drastic decline to an operating loss of 3,883 million US$ in 2015.
- Area Profit Margin Volatility
- The area profit margin mirrored the instability of operating income against a shrinking revenue base. The margin shifted from a positive 22.20% in 2011 to -141.23% in 2012. Despite a brief return to profitability in 2014 with a margin of 10.53%, the period ended with an extreme negative margin of -779.72% in 2015. This indicates that losses increased exponentially as revenue generation capability diminished.
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Area Profit Margin: Egypt
Apache Corp.; Egypt; area profit margin calculation
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | (164) | 1,838) | 2,391) | 3,166) | 3,527) |
| Oil and gas production revenues | 1,968) | 3,539) | 3,917) | 4,554) | 4,791) |
| Area Profitability Ratio | |||||
| Area profit margin1 | -8.33% | 51.94% | 61.04% | 69.52% | 73.62% |
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).
1 2015 Calculation
Area profit margin = 100 × Operating income (loss) ÷ Oil and gas production revenues
= 100 × -164 ÷ 1,968 = -8.33%
A consistent and accelerating decline in financial performance was observed in the Egypt area between 2011 and 2015. The trajectory is characterized by a steady erosion of both top-line revenues and bottom-line operating results, culminating in a transition from high profitability to a net operating loss.
- Revenue Performance
- Oil and gas production revenues experienced a sustained decrease, falling from US$ 4,791 million in 2011 to US$ 1,968 million in 2015. While the decline was gradual between 2011 and 2014, a sharp contraction occurred in 2015, where revenues decreased by approximately 44% compared to the previous year.
- Operating Income Trends
- Operating income followed a downward trajectory, decreasing from US$ 3,527 million in 2011 to US$ 1,838 million in 2014. In 2015, the area transitioned to an operating loss of US$ 164 million, representing a complete reversal of profitability over the five-year period.
- Area Profit Margin Analysis
- The area profit margin exhibited a continuous contraction, starting at 73.62% in 2011 and declining annually to 51.94% by 2014. The margin collapsed to -8.33% in 2015, indicating that operating expenses exceeded total production revenues during that period. This pattern suggests a significant increase in the cost of operations relative to revenue generation.
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Area Profit Margin: U.K. North Sea
Apache Corp.; U.K. North Sea; area profit margin calculation
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | (1,993) | 21) | 480) | 989) | 893) |
| Oil and gas production revenues | 1,280) | 2,316) | 2,728) | 2,751) | 2,091) |
| Area Profitability Ratio | |||||
| Area profit margin1 | -155.70% | 0.91% | 17.60% | 35.95% | 42.71% |
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).
1 2015 Calculation
Area profit margin = 100 × Operating income (loss) ÷ Oil and gas production revenues
= 100 × -1,993 ÷ 1,280 = -155.70%
The financial performance of the U.K. North Sea area between 2011 and 2015 is characterized by a severe and accelerating decline in profitability, culminating in a significant operating loss by the end of the period.
- Revenue Performance
- Oil and gas production revenues experienced initial growth, peaking at 2,751 million US$ in 2012. Following a period of relative stability in 2013, revenues entered a downward trajectory, falling to 2,316 million US$ in 2014 and dropping sharply to 1,280 million US$ by December 31, 2015. This represents a total reduction of approximately 53% from the 2012 peak.
- Operating Income Volatility
- Operating income exhibited a more drastic contraction than revenue. After reaching a peak of 989 million US$ in 2012, operating income declined to 480 million US$ in 2013 and nearly vanished by 2014, reaching 21 million US$. The trend concluded with a substantial operating loss of 1,993 million US$ in 2015, indicating a complete reversal of operational profitability.
- Profit Margin Erosion
- The area profit margin reflects a continuous and steep erosion throughout the five-year period. Starting at 42.71% in 2011, the margin compressed to 35.95% in 2012 and further to 17.60% in 2013. By 2014, the margin had nearly reached a break-even point at 0.91%, before collapsing to -155.70% in 2015. The magnitude of the 2015 margin loss indicates that operating costs or write-downs significantly exceeded the generated production revenues.
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Area Return on Assets (Area ROA)
Apache Corp., ROA by geographic area
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| United States | -273.32% | -8.36% | 7.28% | 7.41% | 12.05% |
| Canada | -265.05% | 1.73% | 0.16% | -26.14% | 4.07% |
| Egypt | -2.62% | 25.21% | 29.44% | 43.30% | 52.99% |
| U.K. North Sea | -50.44% | 0.34% | 6.95% | 14.39% | 13.53% |
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).
Between 2011 and 2015, Area Return on Assets (ROA) exhibited a systemic deterioration across all operational geographies. While multiple regions initially contributed positive returns, a severe and simultaneous collapse in profitability occurred across the entire portfolio by the end of the period.
- United States
- A progressive decline in performance is observed, starting from a positive 12.05% in 2011. After maintaining moderate positive returns through 2013, the region shifted to a loss of -8.36% in 2014, culminating in a severe deficit of -273.32% in 2015.
- Canada
- The region demonstrated significant volatility, marked by a sharp decline to -26.14% in 2012. A period of marginal recovery followed in 2013 and 2014, with returns reaching 1.73%, before a catastrophic drop to -265.05% occurred in 2015.
- Egypt
- Egypt was the highest-performing geography for the majority of the analysis period, beginning with an ROA of 52.99% in 2011. A consistent downward trend was recorded over the subsequent years, with the return eventually turning negative at -2.62% in 2015.
- U.K. North Sea
- Performance peaked in 2012 at 14.39% before initiating a steady descent. The return on assets diminished to near-zero levels by 2014 (0.34%) and ended the period at -50.44% in 2015.
The aggregate trend indicates that while Egypt provided the strongest initial margins, no single region was immune to the precipitous decline in asset productivity observed in 2015, with the United States and Canada experiencing the most extreme negative variances.
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Area ROA: United States
Apache Corp.; United States; area ROA calculation
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | (19,441) | (2,245) | 2,179) | 2,311) | 2,832) |
| Total assets | 7,113) | 26,852) | 29,940) | 31,175) | 23,499) |
| Area Profitability Ratio | |||||
| Area ROA1 | -273.32% | -8.36% | 7.28% | 7.41% | 12.05% |
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).
1 2015 Calculation
Area ROA = 100 × Operating income (loss) ÷ Total assets
= 100 × -19,441 ÷ 7,113 = -273.32%
The financial performance within the United States area experienced a severe deterioration between 2011 and 2015. The period began with positive profitability and asset expansion but transitioned into significant operating losses and a drastic contraction of the asset base by the end of the analyzed timeframe.
- Operating Income Trends
- A consistent decline in operating income is observed starting from 2,832 million US$ in 2011, falling to 2,179 million US$ by 2013. This downward trajectory accelerated sharply in 2014, resulting in an operating loss of 2,245 million US$, which further escalated to a substantial loss of 19,441 million US$ in 2015.
- Asset Base Dynamics
- Total assets peaked in 2012 at 31,175 million US$, up from 23,499 million US$ in 2011. Following this peak, a gradual reduction occurred through 2014, followed by a precipitous drop to 7,113 million US$ in 2015, indicating a significant divestment or write-down of assets within the region.
- Area Return on Assets (ROA)
- The Area ROA demonstrates a critical collapse in efficiency. The ratio declined from a high of 12.05% in 2011 to 7.28% in 2013. The shift to negative territory occurred in 2014 at -8.36%, culminating in an extreme outlier of -273.32% in 2015, driven by the combination of massive operating losses and a diminished asset base.
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Area ROA: Canada
Apache Corp.; Canada; area ROA calculation
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | (3,883) | 115) | 11) | (1,867) | 359) |
| Total assets | 1,465) | 6,640) | 6,952) | 7,142) | 8,816) |
| Area Profitability Ratio | |||||
| Area ROA1 | -265.05% | 1.73% | 0.16% | -26.14% | 4.07% |
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).
1 2015 Calculation
Area ROA = 100 × Operating income (loss) ÷ Total assets
= 100 × -3,883 ÷ 1,465 = -265.05%
The financial performance in Canada from 2011 to 2015 is characterized by extreme volatility in earnings and a significant contraction of the asset base. The period concludes with a severe deterioration in both absolute profitability and asset utilization.
- Operating Income Trends
- Operating results exhibited high instability, moving from a profit of US$ 359 million in 2011 to a substantial loss of US$ 1,867 million in 2012. A brief recovery occurred between 2013 and 2014, with income reaching US$ 115 million, before a sharp reversal in 2015 resulted in a loss of US$ 3,883 million.
- Asset Base Contraction
- A consistent downward trend in total assets was observed from 2011 to 2014, with values declining from US$ 8,816 million to US$ 6,640 million. This reduction accelerated dramatically in 2015, when total assets fell to US$ 1,465 million, indicating a significant divestment or impairment of regional assets.
- Area Return on Assets (ROA) Analysis
- The Area ROA fluctuated in alignment with operating income, dropping from 4.07% in 2011 to -26.14% in 2012. After marginal improvements in 2013 (0.16%) and 2014 (1.73%), the ratio plummeted to -265.05% in 2015. This extreme negative return is the result of massive operating losses occurring simultaneously with a severely diminished asset base.
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Area ROA: Egypt
Apache Corp.; Egypt; area ROA calculation
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | (164) | 1,838) | 2,391) | 3,166) | 3,527) |
| Total assets | 6,249) | 7,292) | 8,121) | 7,311) | 6,656) |
| Area Profitability Ratio | |||||
| Area ROA1 | -2.62% | 25.21% | 29.44% | 43.30% | 52.99% |
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).
1 2015 Calculation
Area ROA = 100 × Operating income (loss) ÷ Total assets
= 100 × -164 ÷ 6,249 = -2.62%
The financial performance in Egypt from 2011 to 2015 is characterized by a severe and consistent deterioration in profitability and asset efficiency. A sustained downward trajectory in operating income culminated in a transition from significant profitability to an operating loss by the end of the period, while asset utilization shifted from high efficiency to negative returns.
- Operating Income Trends
- A continuous decline in operating income is observed throughout the five-year period. Profits decreased from a peak of 3,527 million US$ in 2011 to 1,838 million US$ in 2014, before falling into a negative position of -164 million US$ in 2015. This represents a total erosion of operating profitability over the analyzed timeframe.
- Asset Base Fluctuations
- Total assets exhibited a non-linear trend, initially increasing from 6,656 million US$ in 2011 to a peak of 8,121 million US$ in 2013. Following this peak, a contraction occurred, with assets declining to 6,249 million US$ by December 31, 2015, suggesting a reduction in the scale of operations or a write-down of asset values.
- Area Return on Assets (ROA)
- The Area ROA demonstrates a precipitous drop, mirroring the decline in operating income. Starting at a highly efficient 52.99% in 2011, the ratio fell steadily each year to 25.21% in 2014, ultimately reaching -2.62% in 2015. The convergence of declining income and fluctuating asset values indicates a systemic failure to generate positive returns from the regional asset base toward the end of the period.
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Area ROA: U.K. North Sea
Apache Corp.; U.K. North Sea; area ROA calculation
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Operating income (loss) | (1,993) | 21) | 480) | 989) | 893) |
| Total assets | 3,951) | 6,102) | 6,902) | 6,874) | 6,600) |
| Area Profitability Ratio | |||||
| Area ROA1 | -50.44% | 0.34% | 6.95% | 14.39% | 13.53% |
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).
1 2015 Calculation
Area ROA = 100 × Operating income (loss) ÷ Total assets
= 100 × -1,993 ÷ 3,951 = -50.44%
The financial performance of the U.K. North Sea operations exhibits a severe downward trajectory between 2011 and 2015. Initial profitability and asset stability in the early part of the period transitioned into substantial operational losses and a significant contraction of the asset base.
- Operating Income Trends
- Operating income reached a peak of 989 million USD in 2012 before entering a precipitous decline. By 2014, profitability had nearly evaporated, falling to 21 million USD, and ultimately culminated in a substantial operating loss of 1,993 million USD in 2015.
- Asset Base Evolution
- Total assets remained relatively stable from 2011 through 2013, peaking at 6,902 million USD. However, a sharp contraction occurred in the subsequent two years, with assets falling to 3,951 million USD by the end of 2015, representing a decrease of approximately 43% from the 2013 peak.
- Area Return on Assets (ROA)
- The Area ROA mirrored the decline in operating income, shifting from a high of 14.39% in 2012 to a near-zero return of 0.34% in 2014. The period concluded with a severe negative ROA of -50.44% in 2015, signaling a profound collapse in the efficiency of the remaining assets in generating profit.
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Area Asset Turnover
Apache Corp., asset turnover by geographic area
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| United States | 0.37 | 0.21 | 0.23 | 0.20 | 0.26 |
| Canada | 0.34 | 0.16 | 0.18 | 0.19 | 0.18 |
| Egypt | 0.31 | 0.49 | 0.48 | 0.62 | 0.72 |
| U.K. North Sea | 0.32 | 0.38 | 0.40 | 0.40 | 0.32 |
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).
The geographic asset turnover ratios reveal divergent efficiency trends across the operational regions from 2011 to 2015. While North American operations experienced a significant increase in asset efficiency toward the end of the period, international assets, particularly in Egypt, showed a marked decline in their ability to generate revenue relative to their asset base.
- United States
- Asset turnover remained relatively stable but low between 2011 and 2014, fluctuating within a narrow range of 0.20 to 0.26. A sharp improvement occurred in 2015, where the ratio rose to 0.37, marking the highest efficiency level for this region within the observed timeframe.
- Canada
- The Canadian region mirrored the trend seen in the United States, maintaining a consistent but low turnover ratio between 0.16 and 0.19 from 2011 through 2014. This was followed by a substantial increase to 0.34 in 2015, indicating a significant enhancement in asset utilization.
- Egypt
- Egypt exhibited the most significant volatility and a persistent downward trajectory. Starting as the most efficient region with a ratio of 0.72 in 2011, the turnover declined steadily over the five-year period, reaching 0.31 by 2015. This represents a substantial erosion of asset productivity.
- U.K. North Sea
- The U.K. North Sea operations showed moderate stability with a slight peak. The ratio increased from 0.32 in 2011 to 0.40 in 2012 and 2013, before gradually declining back to 0.32 by the end of 2015.
Overall, the data indicates a shift in productivity centers. The initial dominance of the Egyptian assets in terms of turnover was lost by 2015, a year characterized by a synchronized spike in efficiency across both United States and Canadian operations.
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Area Asset Turnover: United States
Apache Corp.; United States; area asset turnover calculation
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Oil and gas production revenues | 2,637) | 5,744) | 6,902) | 6,226) | 6,103) |
| Total assets | 7,113) | 26,852) | 29,940) | 31,175) | 23,499) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 0.37 | 0.21 | 0.23 | 0.20 | 0.26 |
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).
1 2015 Calculation
Area asset turnover = Oil and gas production revenues ÷ Total assets
= 2,637 ÷ 7,113 = 0.37
The financial performance in the United States region between 2011 and 2015 is characterized by an initial period of expansion followed by a substantial contraction in both revenue and the asset base. While revenues and assets peaked in the early part of the period, the final year shows a drastic reconfiguration of the asset structure.
- Oil and Gas Production Revenues
- Revenues exhibited a growth trend from 2011 to 2013, increasing from 6,103 million US$ to a peak of 6,902 million US$. This growth was followed by a sharp decline, with revenues falling to 5,744 million US$ in 2014 and further dropping to 2,637 million US$ by December 31, 2015. This represents a significant reduction in revenue generation toward the end of the analyzed period.
- Total Assets
- The asset base expanded significantly from 23,499 million US$ in 2011 to 31,175 million US$ in 2012. After this peak, a steady decline was observed through 2014, culminating in a precipitous drop to 7,113 million US$ in 2015. The scale of this reduction suggests a major divestment of assets or substantial impairment charges within the US geographic area.
- Area Asset Turnover
- The area asset turnover ratio remained relatively stable between 0.20 and 0.26 from 2011 through 2014, indicating a consistent relationship between asset utilization and revenue generation. In 2015, however, the ratio increased sharply to 0.37. This spike is not indicative of increased operational productivity, but rather a mathematical result of the total asset base shrinking more aggressively than the production revenues.
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Area Asset Turnover: Canada
Apache Corp.; Canada; area asset turnover calculation
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Oil and gas production revenues | 498) | 1,092) | 1,224) | 1,322) | 1,617) |
| Total assets | 1,465) | 6,640) | 6,952) | 7,142) | 8,816) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 0.34 | 0.16 | 0.18 | 0.19 | 0.18 |
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).
1 2015 Calculation
Area asset turnover = Oil and gas production revenues ÷ Total assets
= 498 ÷ 1,465 = 0.34
Between 2011 and 2015, a consistent contraction in both revenue and the asset base was observed within the Canadian operations. While the decline was gradual between 2011 and 2014, a significant structural shift occurred in 2015, characterized by a substantial reduction in total assets that outpaced the decline in production revenues, resulting in a marked increase in the asset turnover ratio.
- Oil and Gas Production Revenues
- Production revenues exhibited a persistent downward trajectory over the five-year period. From a peak of US$ 1,617 million in 2011, revenues decreased steadily to US$ 1,092 million by 2014. A sharp contraction occurred in 2015, with revenues falling to US$ 498 million, indicating a significant reduction in the volume or value of production in the region.
- Total Assets
- The asset base experienced a steady decline from US$ 8,816 million in 2011 to US$ 6,640 million in 2014. In 2015, a precipitous drop was recorded, with total assets falling to US$ 1,465 million. This substantial decrease suggests the occurrence of significant asset divestitures or major impairment charges during that fiscal year.
- Area Asset Turnover
- The asset turnover ratio remained relatively stagnant between 2011 and 2014, oscillating between 0.16 and 0.19. In 2015, the ratio increased significantly to 0.34. This trend indicates that while overall revenue declined, the disproportionate reduction in the asset base led to a higher efficiency of revenue generation per unit of asset, reflecting a leaner operational footprint.
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Area Asset Turnover: Egypt
Apache Corp.; Egypt; area asset turnover calculation
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Oil and gas production revenues | 1,968) | 3,539) | 3,917) | 4,554) | 4,791) |
| Total assets | 6,249) | 7,292) | 8,121) | 7,311) | 6,656) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 0.31 | 0.49 | 0.48 | 0.62 | 0.72 |
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).
1 2015 Calculation
Area asset turnover = Oil and gas production revenues ÷ Total assets
= 1,968 ÷ 6,249 = 0.31
The operational efficiency within the Egypt area experienced a significant decline between 2011 and 2015. This period is characterized by a steady erosion of revenue-generating capacity and a deterioration in the effectiveness of the asset base, culminating in a substantial reduction in the area asset turnover ratio.
- Revenue Trends
- Oil and gas production revenues exhibited a consistent downward trajectory throughout the analyzed period. Revenues decreased from US$ 4,791 million in 2011 to US$ 1,968 million in 2015. The most severe contraction occurred between 2014 and 2015, during which revenues fell by approximately 44%.
- Asset Base Evolution
- Total assets initially grew, rising from US$ 6,656 million in 2011 to a peak of US$ 8,121 million in 2013. Following this peak, the asset base entered a period of contraction, declining to US$ 7,292 million in 2014 and further to US$ 6,249 million by the end of 2015.
- Area Asset Turnover Performance
- The area asset turnover ratio decreased from 0.72 in 2011 to 0.31 in 2015, indicating a weakening ability to generate revenue from the invested assets. Although a period of relative stability was observed between 2013 and 2014, where the ratio shifted only slightly from 0.48 to 0.49, the subsequent drop in 2015 represents the lowest efficiency level recorded in the five-year span.
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Area Asset Turnover: U.K. North Sea
Apache Corp.; U.K. North Sea; area asset turnover calculation
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Oil and gas production revenues | 1,280) | 2,316) | 2,728) | 2,751) | 2,091) |
| Total assets | 3,951) | 6,102) | 6,902) | 6,874) | 6,600) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 0.32 | 0.38 | 0.40 | 0.40 | 0.32 |
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).
1 2015 Calculation
Area asset turnover = Oil and gas production revenues ÷ Total assets
= 1,280 ÷ 3,951 = 0.32
The financial performance of the U.K. North Sea operations between 2011 and 2015 is characterized by an initial period of expansion and improved efficiency, followed by a significant contraction in both revenue and the asset base. The efficiency of asset utilization reached a peak mid-period before returning to initial baseline levels by the end of the analyzed timeframe.
- Oil and Gas Production Revenues
- Revenues demonstrated an upward trend from 2011 to 2012, increasing from US$ 2,091 million to a peak of US$ 2,751 million. A subsequent downward trend was observed starting in 2013, with revenues declining steadily to US$ 2,316 million in 2014 and dropping sharply to US$ 1,280 million by December 31, 2015.
- Total Assets
- The asset base remained relatively stable from 2011 through 2013, peaking at US$ 6,902 million. A contraction began in 2014, followed by a substantial reduction in 2015, where total assets decreased to US$ 3,951 million. This sharp decline indicates a significant reduction in the capital employed within the region.
- Area Asset Turnover
- The asset turnover ratio improved from 0.32 in 2011 to 0.40 in 2012 and 2013, signaling an increase in the efficiency of revenue generation relative to the asset base. This efficiency gain was reversed in the final two years, with the ratio declining to 0.38 in 2014 and returning to 0.32 in 2015. The regression of this ratio suggests that the decline in production revenues outpaced the reduction in total assets during the final period of analysis.
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Area Capital Expenditures to Depreciation
Apache Corp., capital expenditures to depreciation by geographic area
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| United States | 0.12 | 1.11 | 2.22 | 4.66 | 2.29 |
| Canada | 0.08 | 2.41 | 2.14 | 0.44 | 2.36 |
| Egypt | 0.59 | 1.21 | 1.30 | 1.25 | 1.24 |
| U.K. North Sea | 0.26 | 0.67 | 0.78 | 1.21 | 10.21 |
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).
A comprehensive analysis of capital expenditures relative to depreciation across four geographic regions reveals a systemic reduction in investment intensity between 2011 and 2015. While various regions exhibited different trajectories in the early part of the period, all areas converged toward a significant contraction by the end of 2015, with ratios falling well below 1.0, indicating that depreciation began to exceed new capital investment.
- United States
- Investment activity peaked in 2012 with a ratio of 4.66, suggesting an aggressive expansion phase. However, a consistent downward trend followed, culminating in a sharp decline to 0.12 by 2015, representing a near-total cessation of growth-oriented capital spending relative to asset depreciation.
- Canada
- The ratio in this region exhibited high volatility. Following a significant dip in 2012, investment rebounded to reach a peak of 2.41 in 2014. This growth was abruptly reversed in 2015, with the ratio falling to 0.08, the lowest relative investment level among all regions for that year.
- Egypt
- This region demonstrated the highest level of stability throughout the analyzed period. The ratio remained consistently between 1.21 and 1.30 from 2011 through 2014, indicating a steady replacement of assets. A reduction occurred in 2015, where the ratio dropped to 0.59, though it remained the most resilient area relative to others.
- U.K. North Sea
- A dramatic shift in capital allocation is observed in the U.K. North Sea. The period began with an exceptionally high ratio of 10.21 in 2011, suggesting massive initial infrastructure investment. This was followed by a precipitous drop to 1.21 in 2012 and a continuous decline thereafter, reaching 0.26 by 2015.
The collective data suggests a strategic pivot across the entire portfolio. The transition from ratios significantly above 1.0 to ratios below 1.0 across all regions by 2015 points to a shift from an expansionary capital expenditure strategy to one focused on capital preservation or asset harvesting.
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Area Capital Expenditures to Depreciation: United States
Apache Corp.; United States; area capital expenditures to depreciation calculation
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Additions to net property and equipment | 2,454) | 7,294) | 6,404) | 9,586) | 3,854) |
| Depreciation, depletion, and amortization | 21,059) | 6,582) | 2,890) | 2,056) | 1,684) |
| Area Financial Ratio | |||||
| Area capital expenditures to depreciation1 | 0.12 | 1.11 | 2.22 | 4.66 | 2.29 |
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).
1 2015 Calculation
Area capital expenditures to depreciation = Additions to net property and equipment ÷ Depreciation, depletion, and amortization
= 2,454 ÷ 21,059 = 0.12
A significant shift in the investment strategy for United States operations is observed between 2011 and 2015. The financial trajectory indicates a transition from a period of aggressive asset expansion to a phase characterized by severe capital contraction and substantial asset write-downs.
- Additions to Net Property and Equipment
- Capital expenditures experienced a sharp increase from 3,854 million in 2011 to a peak of 9,586 million in 2012. Following this peak, spending entered a general decline, falling to 6,404 million in 2013 and 7,294 million in 2014, before dropping precipitously to 2,454 million by the end of 2015.
- Depreciation, Depletion, and Amortization (DD&A)
- Expenses grew steadily from 1,684 million in 2011 to 2,890 million in 2013. A notable acceleration occurred in 2014, reaching 6,582 million, which was followed by an exponential increase to 21,059 million in 2015, suggesting significant impairment charges or accelerated depreciation of assets.
- Area Capital Expenditures to Depreciation Ratio
- The ratio peaked at 4.66 in 2012, signaling a period where investment heavily outweighed the depletion of assets. This trend reversed consistently thereafter, declining to 2.22 in 2013 and 1.11 in 2014. By 2015, the ratio collapsed to 0.12, indicating that new capital investment was negligible compared to the volume of depreciation and amortization recognized.
The convergence of plummeting capital additions and a massive surge in depreciation and amortization in 2015 reflects a fundamental change in the operational lifecycle of the assets. The shift from a ratio of 4.66 to 0.12 indicates a pivot from a growth-oriented investment phase to a period of asset devaluation and capital preservation.
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Area Capital Expenditures to Depreciation: Canada
Apache Corp.; Canada; area capital expenditures to depreciation calculation
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Additions to net property and equipment | 324) | 963) | 1,082) | 1,096) | 1,288) |
| Depreciation, depletion, and amortization | 3,979) | 400) | 505) | 2,477) | 546) |
| Area Financial Ratio | |||||
| Area capital expenditures to depreciation1 | 0.08 | 2.41 | 2.14 | 0.44 | 2.36 |
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).
1 2015 Calculation
Area capital expenditures to depreciation = Additions to net property and equipment ÷ Depreciation, depletion, and amortization
= 324 ÷ 3,979 = 0.08
The financial relationship between capital investments and asset depreciation in Canada exhibits significant volatility and a general decline in investment intensity over the five-year period ending December 31, 2015.
- Additions to net property and equipment
- A consistent downward trend in capital expenditures is observed, with spending decreasing from 1,288 million US dollars in 2011 to 324 million US dollars in 2015. The most precipitous decline occurred between 2014 and 2015, representing a reduction of approximately 66% in annual additions.
- Depreciation, depletion, and amortization
- Depreciation expenses demonstrate extreme fluctuation. While values remained relatively stable between 400 and 546 million US dollars in 2011, 2013, and 2014, there were substantial spikes in 2012 and 2015, reaching 2,477 million US dollars and 3,979 million US dollars, respectively. These outliers suggest significant non-cash impairment charges or asset write-downs during those specific years.
- Area capital expenditures to depreciation ratio
- The ratio of capital expenditures to depreciation followed an erratic pattern, fluctuating between highs and lows. In 2011, 2013, and 2014, the ratio remained above 2.0, indicating that capital reinvestment was more than double the rate of depreciation. Conversely, the ratio collapsed to 0.44 in 2012 and reached a minimum of 0.08 in 2015, coinciding with the spikes in depreciation and the sharp decline in capital additions.
Overall, the transition from a ratio of 2.36 in 2011 to 0.08 in 2015 indicates a shift from an aggressive investment phase to a period characterized by asset devaluation and minimal capital reinvestment in the Canadian region.
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Area Capital Expenditures to Depreciation: Egypt
Apache Corp.; Egypt; area capital expenditures to depreciation calculation
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Additions to net property and equipment | 915) | 1,397) | 1,309) | 1,153) | 1,015) |
| Depreciation, depletion, and amortization | 1,556) | 1,151) | 1,005) | 925) | 818) |
| Area Financial Ratio | |||||
| Area capital expenditures to depreciation1 | 0.59 | 1.21 | 1.30 | 1.25 | 1.24 |
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).
1 2015 Calculation
Area capital expenditures to depreciation = Additions to net property and equipment ÷ Depreciation, depletion, and amortization
= 915 ÷ 1,556 = 0.59
Between 2011 and 2015, the investment strategy in Egypt shifted from a period of steady asset expansion to a significant contraction in capital spending. From 2011 through 2014, capital expenditures consistently exceeded depreciation, depletion, and amortization, indicating an increase in the net asset base. However, this trend reversed sharply in 2015, characterized by a simultaneous decline in capital additions and a steep increase in depreciation expenses.
- Additions to Net Property and Equipment
- Investment levels exhibited a growth trajectory from 2011 to 2014, rising from 1,015 million US$ to a peak of 1,397 million US$. This upward trend was abruptly interrupted in 2015, when expenditures fell to 915 million US$, representing a 34.5% decrease from the previous year's peak.
- Depreciation, Depletion, and Amortization
- There was a consistent and uninterrupted increase in depreciation, depletion, and amortization charges over the five-year period. Costs rose steadily from 818 million US$ in 2011 to 1,151 million US$ in 2014, followed by a substantial acceleration in 2015, reaching 1,556 million US$.
- Area Capital Expenditures to Depreciation Ratio
- The ratio remained relatively stable and above 1.0 between 2011 and 2014, peaking at 1.30 in 2013, which signifies that the company was reinvesting more than the value of assets being consumed. In 2015, the ratio collapsed to 0.59. This decline indicates that capital reinvestment covered only 59% of the annual depreciation, marking a transition from asset growth to a reduction in the relative capital intensity of the region.
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Area Capital Expenditures to Depreciation: U.K. North Sea
Apache Corp.; U.K. North Sea; area capital expenditures to depreciation calculation
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Additions to net property and equipment | 733) | 1,071) | 1,084) | 1,104) | 4,175) |
| Depreciation, depletion, and amortization | 2,778) | 1,587) | 1,389) | 914) | 409) |
| Area Financial Ratio | |||||
| Area capital expenditures to depreciation1 | 0.26 | 0.67 | 0.78 | 1.21 | 10.21 |
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).
1 2015 Calculation
Area capital expenditures to depreciation = Additions to net property and equipment ÷ Depreciation, depletion, and amortization
= 733 ÷ 2,778 = 0.26
The financial trajectory for the U.K. North Sea area from 2011 to 2015 is characterized by a significant contraction in capital investment paired with a consistent increase in the consumption of existing assets.
- Additions to Net Property and Equipment
- A substantial decrease in capital expenditures is evident, falling from a peak of US$ 4,175 million in 2011 to US$ 733 million by 2015. After a sharp decline between 2011 and 2012, investment levels remained relatively stable before further diminishing in the final year of the period.
- Depreciation, Depletion, and Amortization
- Expenditures related to the consumption of assets exhibited a steady upward trend. Depreciation, depletion, and amortization rose from US$ 409 million in 2011 to US$ 2,778 million in 2015, representing a nearly seven-fold increase over the five-year span.
- Area Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation experienced a precipitous decline, falling from 10.21 in 2011 to 0.26 in 2015. While the initial ratio indicated an aggressive expansion phase where investment far exceeded asset depletion, the shift to a ratio below 1.00 starting in 2013 signals that the pace of asset replacement no longer keeps pace with depreciation. This pattern suggests a transition from a growth-oriented strategy to a harvesting or maturity phase within this geographic region.
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Oil and gas production revenues
Apache Corp., oil and gas production revenues by geographic area
US$ in millions
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| United States | 2,637) | 5,744) | 6,902) | 6,226) | 6,103) |
| Canada | 498) | 1,092) | 1,224) | 1,322) | 1,617) |
| Egypt | 1,968) | 3,539) | 3,917) | 4,554) | 4,791) |
| Australia | —) | 1,058) | 1,140) | 1,575) | 1,734) |
| U.K. North Sea | 1,280) | 2,316) | 2,728) | 2,751) | 2,091) |
| Argentina | —) | —) | 491) | 519) | 474) |
| Total | 6,383) | 13,749) | 16,402) | 16,947) | 16,810) |
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).
Total oil and gas production revenues exhibited relative stability between 2011 and 2013, followed by a significant contraction starting in 2014 and accelerating sharply in 2015. Total annual revenues decreased from a peak of US$ 16,947 million in 2012 to US$ 6,383 million by the end of 2015, representing a substantial reduction in overall earning capacity across all operating regions.
- Primary Revenue Drivers
- The United States and Egypt consistently contributed the highest proportions of total revenue. US revenues reached a peak of US$ 6,902 million in 2013 before falling precipitously to US$ 2,637 million in 2015. Similarly, Egypt showed a steady downward trend, with revenues declining from US$ 4,791 million in 2011 to US$ 1,968 million in 2015.
- Secondary Geographic Markets
- The U.K. North Sea and Canada exhibited consistent declines in the latter half of the period. North Sea revenues peaked in 2012 at US$ 2,751 million and declined to US$ 1,280 million by 2015. Canadian revenues experienced a continuous year-over-year decrease, falling from US$ 1,617 million in 2011 to US$ 498 million in 2015.
- Regional Attrition and Asset Divestment
- The data indicates a complete withdrawal or cessation of reported revenue from certain markets. Australian revenues declined from US$ 1,734 million in 2011 to US$ 1,058 million in 2014, with no recorded revenue for 2015. Argentina followed a similar trajectory of decline and subsequent absence from the financial records after 2013.
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Depreciation, depletion, and amortization
Apache Corp., depreciation, depletion, and amortization by geographic area
US$ in millions
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| United States | 21,059) | 6,582) | 2,890) | 2,056) | 1,684) |
| Canada | 3,979) | 400) | 505) | 2,477) | 546) |
| Egypt | 1,556) | 1,151) | 1,005) | 925) | 818) |
| Australia | —) | 438) | 423) | 466) | 440) |
| U.K. North Sea | 2,778) | 1,587) | 1,389) | 914) | 409) |
| Argentina | —) | —) | 411) | 228) | 198) |
| Other international | —) | —) | 77) | 43) | 109) |
| Total | 29,372) | 10,158) | 6,700) | 7,109) | 4,204) |
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).
Total depreciation, depletion, and amortization (DD&A) expenses experienced a significant upward trajectory between 2011 and 2015, increasing from 4,204 million US dollars to 29,372 million US dollars. While the growth was moderate between 2011 and 2014, a substantial acceleration occurred in 2015, primarily driven by a surge in United States operations.
- United States Growth Profile
- The United States segment emerged as the primary driver of total DD&A. Expenses rose from 1,684 million US dollars in 2011 to 6,582 million US dollars in 2014, followed by an exponential increase to 21,059 million US dollars in 2015. This represents a shift from approximately 40% of total DD&A in 2011 to approximately 72% by 2015.
- Canadian Volatility
- Canadian operations demonstrated irregular patterns, with a peak of 2,477 million US dollars in 2012, followed by a sharp decline to 400 million US dollars by 2014. A subsequent increase to 3,979 million US dollars in 2015 suggests significant changes in asset bases or accounting adjustments during the period.
- Consistent International Expansion
- Steady growth is observed in Egypt and the U.K. North Sea. Egypt maintained a consistent upward trend, increasing from 818 million US dollars in 2011 to 1,556 million US dollars in 2015. The U.K. North Sea exhibited more aggressive growth, rising from 409 million US dollars in 2011 to 2,778 million US dollars in 2015.
- Segment Attrition and Stability
- Australia showed relative stability between 423 and 466 million US dollars from 2011 to 2014, with no reported data for 2015. Similarly, contributions from Argentina and other international regions diminished or ceased to be reported after 2013, indicating a potential strategic shift in geographic focus or asset divestiture.
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Operating income (loss)
Apache Corp., operating income (loss) by geographic area
US$ in millions
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| United States | (19,441) | (2,245) | 2,179) | 2,311) | 2,832) |
| Canada | (3,883) | 115) | 11) | (1,867) | 359) |
| Egypt | (164) | 1,838) | 2,391) | 3,166) | 3,527) |
| Australia | —) | 251) | 463) | 866) | 1,078) |
| U.K. North Sea | (1,993) | 21) | 480) | 989) | 893) |
| Argentina | —) | —) | (173) | 51) | 72) |
| Other international | —) | —) | (77) | (43) | (109) |
| Total | (25,481) | (20) | 5,274) | 5,473) | 8,652) |
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).
The overall operating performance across all geographic segments exhibits a severe downward trajectory between 2011 and 2015. Total operating income transitioned from a surplus of US$ 8,652 million in 2011 to a substantial loss of US$ 25,481 million by the end of 2015. This deterioration is characterized by a period of gradual decline followed by a precipitous collapse in profitability during the 2014 and 2015 fiscal years.
- United States Operations
- The United States segment represents the most significant driver of the overall financial decline. While the region was initially profitable, contributing US$ 2,832 million in 2011, it experienced a steady erosion of income until 2013. A critical reversal occurred in 2014 with an operating loss of US$ 2,245 million, which escalated dramatically to a loss of US$ 19,441 million in 2015, accounting for the majority of the total consolidated operating loss.
- Egypt Operations
- Egypt served as the strongest operating region in terms of absolute income during the early part of the period, peaking at US$ 3,527 million in 2011. However, a consistent year-over-year decline is observed, with income dropping to US$ 1,838 million by 2014 and eventually falling into a deficit of US$ 164 million in 2015.
- Canada and U.K. North Sea Operations
- Both regions exhibited high volatility and eventual instability. Canadian operations fluctuated significantly, moving from a profit of US$ 359 million in 2011 to a loss of US$ 1,867 million in 2012, before recovering slightly and then collapsing to a loss of US$ 3,883 million in 2015. Similarly, the U.K. North Sea segment remained relatively stable through 2012 but saw operating income vanish by 2014, culminating in a loss of US$ 1,993 million in 2015.
- Australia and Other International Operations
- Australia showed a continuous downward trend in profitability, decreasing from US$ 1,078 million in 2011 to US$ 251 million in 2014. Other international areas, including Argentina, consistently reported minimal gains or recurring losses, contributing negligibly to the total operating result relative to the major segments.
The aggregation of these regional trends indicates a systemic failure to maintain operating profitability across the global portfolio. The transition from a diversified profit base in 2011 to concentrated, massive losses in 2015 suggests an acute impact on the most capital-intensive geographic areas, specifically the United States and Canada.
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Total assets
Apache Corp., total assets by geographic area
US$ in millions
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| United States | 7,113) | 26,852) | 29,940) | 31,175) | 23,499) |
| Canada | 1,465) | 6,640) | 6,952) | 7,142) | 8,816) |
| Egypt | 6,249) | 7,292) | 8,121) | 7,311) | 6,656) |
| Australia | —) | 9,020) | 8,094) | 6,280) | 4,681) |
| U.K. North Sea | 3,951) | 6,102) | 6,902) | 6,874) | 6,600) |
| Argentina | —) | —) | 1,577) | 1,835) | 1,766) |
| Other international | 64) | 46) | 51) | 120) | 33) |
| Total | 18,842) | 55,952) | 61,637) | 60,737) | 52,051) |
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).
Total assets experienced an initial period of growth and stabilization between 2011 and 2013, reaching a peak of 61,637 million US dollars. This was followed by a moderate contraction in 2014 and a severe reduction in 2015, where total assets fell to 18,842 million US dollars, representing a substantial decrease in the company's overall asset base.
- North American Asset Trends
- The United States represented the largest portion of assets through 2014, peaking at 31,175 million US dollars in 2012 before declining sharply to 7,113 million US dollars by the end of 2015. Similarly, assets in Canada showed a consistent downward trajectory, decreasing from 8,816 million US dollars in 2011 to 1,465 million US dollars in 2015.
- International Asset Performance
- Egypt demonstrated the highest level of stability among the geographic areas, with assets fluctuating moderately and ending 2015 at 6,249 million US dollars. Australia showed steady growth from 2011 through 2014, increasing from 4,681 million US dollars to 9,020 million US dollars, though no value is recorded for 2015. The U.K. North Sea remained relatively stable between 6,102 million and 6,902 million US dollars from 2011 to 2014, before dropping to 3,951 million US dollars in 2015.
- Minor and Discontinued Holdings
- Assets in Argentina were minimal and declined from 1,766 million US dollars in 2011 to 1,577 million US dollars in 2013, with no further data reported for 2014 or 2015. Other international assets remained negligible throughout the period, consistently staying below 120 million US dollars.
The overall asset trajectory indicates a strategic or forced shift in the portfolio, characterized by a massive divestment or write-down of assets across almost all geographic regions in 2015, most notably within the United States and Canada.
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Additions to net property and equipment
Apache Corp., additions to net property and equipment by geographic area
US$ in millions
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| United States | 2,454) | 7,294) | 6,404) | 9,586) | 3,854) |
| Canada | 324) | 963) | 1,082) | 1,096) | 1,288) |
| Egypt | 915) | 1,397) | 1,309) | 1,153) | 1,015) |
| Australia | —) | 1,419) | 1,954) | 1,581) | 1,140) |
| U.K. North Sea | 733) | 1,071) | 1,084) | 1,104) | 4,175) |
| Argentina | —) | —) | 205) | 337) | 374) |
| Other international | 28) | (28) | 24) | 98) | 73) |
| Total | 4,454) | 12,116) | 12,062) | 14,955) | 11,919) |
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).
Total annual additions to net property and equipment exhibited significant volatility between 2011 and 2015. After a peak of US$ 14,955 million in 2012, total capital expenditures underwent a severe contraction, falling to US$ 4,454 million by 2015. This overall decline reflects a broad reduction in investment across nearly all geographic segments during the final year of the period.
- United States Operations
- Investment in the United States was the primary driver of capital expenditure volatility. Additions rose sharply from US$ 3,854 million in 2011 to a peak of US$ 9,586 million in 2012. Following this peak, spending remained elevated through 2014 before experiencing a steep decline to US$ 2,454 million in 2015.
- U.K. North Sea and Canada
- A marked strategic pivot is evident in the U.K. North Sea, where additions plummeted from US$ 4,175 million in 2011 to US$ 1,104 million in 2012, remaining relatively stagnant thereafter. Similarly, Canadian investments showed a consistent downward trend, decreasing from US$ 1,288 million in 2011 to US$ 324 million in 2015.
- Egypt and Australia
- Egypt represented the most stable investment environment, with additions growing steadily from US$ 1,015 million in 2011 to a peak of US$ 1,397 million in 2014. Australian operations showed an expansionary phase, with investments peaking at US$ 1,954 million in 2013, although reported additions ceased by 2015.
- Argentina and Other International Areas
- Investment in Argentina declined steadily from US$ 374 million in 2011 to US$ 205 million in 2013, with no further additions reported in 2014 or 2015. Other international additions remained marginal and inconsistent, including a negative value of US$ 28 million in 2014.
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