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What changed in APA Corporation's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of APA Corporation's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+322 added−326 removedSource: 10-K (2025-02-28) vs 10-K (2024-02-22)

Top changes in APA Corporation's 2024 10-K

322 paragraphs added · 326 removed · 229 edited across 5 sections

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

47 edited+9 added−24 removed93 unchanged
Biggest changeAccordingly, reserves estimates may be subject to adjustment, and actual production, revenue, and expenditures with respect to the Company’s reserves likely will vary, possibly materially, from estimates. In addition, realization or recognition of proved undeveloped reserves will depend on the Company’s development schedule and plans.
Biggest changeFor example, during 2024, the Company recorded $796 million of impairments for certain of its North Sea proved properties as a result of several new regulatory guidelines and obligations in the U.K. Accordingly, reserves estimates may be subject to adjustment, and actual production, revenue, and expenditures with respect to the Company’s reserves likely will vary, possibly materially, from estimates.
While certain of the Company’s insurance policies may provide coverage for such events, if the Company were to incur a significant liability for which it was not fully insured, then it could have a material adverse effect on the Company’s financial position, results of operations, and cash flows.
While certain insurance policies of the Company may provide coverage for such events, if the Company were to incur a significant liability for which it was not fully insured, then it could have a material adverse effect on the Company’s financial position, results of operations, and cash flows.
Unauthorized access to the Company’s data, technology, and information systems could lead to operational disruption, communication interruption, disruption in access to financial reporting systems, loss, misuse, or corruption of data and proprietary information.
Unauthorized access to the Company’s data, technology, and information systems could lead to operational disruption, communication interruption, disruption in access to financial reporting systems, and loss, misuse, or corruption of data and proprietary information.
These factors include demand, which fluctuates with changes in market and economic conditions, and other factors, including: • worldwide and domestic supplies and/or inventories of crude oil, natural gas, and NGLs and the availability of related pipeline, transportation, import/export, and refining capacity and infrastructure; • actions taken by foreign oil and gas producing nations, including the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC members that participate in OPEC initiatives (OPEC+); • political conditions and events in oil and gas producing regions, including instabilities, changes in governments, or armed conflicts, such as the Russian war in Ukraine and the armed conflict in Israel and Gaza; • the price, competitiveness, decision to use, and availability of alternative fuels and energy sources, including coal, biofuels, and renewables; • increased competitiveness of, and demand for, alternative energy sources; • technological advances affecting energy supply and energy consumption, including those that alter fuel choices; • the availability of pipeline capacity and infrastructure; • the availability of crude oil transportation and refining capacity; • weather conditions; • the impact of political pressure and the influence of environmental groups, investors, and other stakeholders on decisions and policies related to the oil and gas industry, including with respect to environmental, social, and governance matters; • domestic and foreign governmental regulations and taxes, including changes or initiatives to address the impacts of global climate change, hydraulic fracturing, methane emissions, flaring, or water disposal; and • the overall economic environment, including rates of growth and increasing inflationary pressure.
These factors include demand, which fluctuates with changes in market and economic conditions, and other factors, including: • worldwide and domestic supplies and/or inventories of crude oil, natural gas, and NGLs and the availability of related pipeline, transportation, import/export, and refining capacity and infrastructure; • actions taken by foreign oil and gas producing nations, including the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC members that participate in OPEC initiatives (OPEC+); • political conditions and events in oil and gas producing regions, including instabilities, changes in governments, or armed conflicts, such as the Russian war in Ukraine and the armed conflict in Israel and Gaza; • the price, competitiveness, decision to use, and availability of alternative fuels and energy sources, including coal, biofuels, and renewables; • increased competitiveness of, and demand for, alternative energy sources; • technological advances affecting energy supply and energy consumption, including those that alter fuel choices; • the availability of pipeline capacity and infrastructure; • the availability of crude oil transportation and refining capacity; • weather conditions; • the impact of political pressure and the influence of environmental groups, investors, and other stakeholders on decisions and policies related to the oil and gas industry, including with respect to environmental, social, and governance matters; • domestic and foreign governmental regulations and taxes, including changes or initiatives to address the impacts of global climate change, hydraulic fracturing, methane emissions, flaring, or water disposal; and • the overall economic environment, including rates of growth, trade tensions, and increasing inflationary pressure.
As a result, a significant portion of the Company’s production and resources are subject to the increased political and economic risks and other factors associated with international operations, including, but not limited to strikes and civil unrest; war, acts of terrorism, expropriation and resource nationalization, forced renegotiation or modification of existing contracts, including through prospective or retroactive changes in the laws and regulations applicable to such contracts; import and export regulations; taxation policies and investment restrictions; price controls; 27 exchange controls, currency fluctuations, devaluations, or other activities that limit or disrupt markets and restrict payments or the movement of funds; constrained oil or natural gas markets dependent on demand in a single or limited geographical area; laws and policies of the U.S. affecting foreign trade, including trade sanctions; the possibility of being subject to exclusive jurisdiction of foreign courts in connection with legal disputes relating to licenses to operate and concession rights in countries where the Company currently operates; the possible inability to subject foreign persons, especially foreign oil ministries and national oil companies, to the jurisdiction of courts in the U.S.; and difficulties in enforcing the Company’s rights against a governmental agency because of the doctrine of sovereign immunity and foreign sovereignty over international operations.
As a result, a significant portion of the Company’s production and resources are subject to the increased political and economic risks and other factors associated with international operations, including, but not limited to strikes and civil unrest; war, acts of terrorism, expropriation and resource nationalization, forced renegotiation or modification of existing contracts, including through prospective or retroactive changes in the laws and regulations applicable to such contracts; import and export regulations; taxation policies and investment restrictions; price controls; exchange controls, currency fluctuations, devaluations, or other activities that limit or disrupt markets and restrict payments or the movement of funds; constrained oil or natural gas markets dependent on demand in a single or limited geographical area; laws and policies of the U.S. affecting foreign trade, including trade sanctions and tariffs; the possibility of being subject to exclusive jurisdiction of foreign courts in connection with legal disputes relating to licenses to operate and concession rights in countries where the Company currently operates; the possible inability to subject foreign persons, especially foreign oil ministries and national oil companies, to the jurisdiction of courts in the U.S.; and difficulties in enforcing the Company’s rights against a governmental agency because of the doctrine of sovereign immunity and foreign sovereignty over international operations.
This focus, together with shifting preferences and attitudes with respect to the generation and consumption of energy, the use of hydrocarbons, and the use of products manufactured with, or powered by, hydrocarbons, may result in increased availability of, and demand for, energy sources other than oil and natural gas, including wind, solar, and hydroelectric power, and the development of, and increased demand from consumers and industries for, lower-emission products and services, including electric vehicles and renewable residential and commercial power supplies, as well as more energy-efficient products and services.
This focus, together with shifting preferences and attitudes with respect to the generation and consumption of energy, the use of hydrocarbons, and the use of products manufactured with, or powered by, hydrocarbons, may result in increased availability of, and demand for, energy sources other than oil and natural gas, including wind, solar, and hydroelectric power, and the 26 development of, and increased demand from consumers and industries for, lower-emission products and services, including electric vehicles and renewable residential and commercial power supplies, as well as more energy-efficient products and services.
The Company’s operations are subject to hazards and risks inherent in the drilling, production, and transportation of crude oil, natural gas, and NGLs, including well blowouts, explosions, fires, cratering, pipeline or other facility ruptures and spills, adverse weather conditions, including those impacting the Company’s offshore operating areas, surface spillage and 20 ground water contamination, and failure or loss of equipment.
The Company’s operations are subject to hazards and risks inherent in the drilling, production, and transportation of crude oil, natural gas, and NGLs, including well blowouts, explosions, fires, cratering, pipeline or other facility ruptures and spills, adverse weather conditions, including those impacting the Company’s offshore operating areas, surface spillage and ground water contamination, and failure or loss of equipment.
The agreements relating to the Company’s divestment of domestic and international assets generally contain provisions pursuant to which liabilities related to past and future operations (one of the most significant of which is the decommissioning of wells and facilities) are allocated between the parties by means of liability assumptions, indemnities, escrows, trusts, bonds, letters of credit, and similar arrangements.
The agreements relating to the Company’s divestment of domestic and international assets generally contain provisions pursuant to which liabilities related to past and future operations (one of the most significant of which is the decommissioning of wells and facilities) are allocated between the parties by means of liability assumptions, indemnities, escrows, trusts, surety bonds, letters of credit, and similar arrangements.
The Company is involved in several large development projects, and the completion of these projects may be delayed beyond the Company’s anticipated completion dates. These projects may be delayed by project approvals from joint venture partners, timely issuances of permits and licenses by governmental agencies, weather conditions, manufacturing and delivery schedules of critical equipment, and other unforeseen events.
The Company is involved in several large development projects, and the completion of these projects may be delayed beyond the Company’s anticipated completion dates. These projects may be delayed by project approvals from joint venture partners, timely issuances of permits and licenses by governmental agencies, weather conditions, manufacturing and delivery schedules of critical vessels and equipment, and other unforeseen events.
Any such legislation, regulations, or other regulatory initiatives, if enacted, or additional or increased taxes, assessments, or GHG-related fees on the Company’s operations could lead to increased operating expenses or cause the Company to make significant capital investments for infrastructure modifications. 26 Enhanced focus on ESG matters could have an adverse effect on the Company’s operations.
Any such legislation, regulations, or other regulatory initiatives, if enacted, or additional or increased taxes, assessments, or GHG-related fees on the Company’s operations could lead to increased operating expenses or cause the Company to make significant capital investments for infrastructure modifications. Enhanced focus on ESG matters could have an adverse effect on the Company’s operations.
While the Company has not suffered any material losses as a result of cyberattacks, there is no assurance that the Company will not suffer such losses in the future. 21 Material differences between the estimated and actual timing of critical events or costs may affect the completion and commencement of production from development projects.
While the Company has not suffered any material losses as a result of cyberattacks, there is no assurance that the Company will not suffer such losses in the future. Material differences between the estimated and actual timing of critical events or costs may affect the completion and commencement of production from development projects.
These competitive pressures may have a significant negative impact on the Company’s results of operations. 24 The Company’s ability to utilize net operating losses and other tax attributes to reduce future taxable income may be limited if the Company experiences an ownership change.
These competitive pressures may have a significant negative impact on the Company’s results of operations. The Company’s ability to utilize net operating losses and other tax attributes to reduce future taxable income may be limited if the Company experiences an ownership change.
Any new federal, state, or local restrictions on hydraulic fracturing could result in increased compliance costs or additional restrictions on the Company’s U.S. operations. 25 Changes in tax rules and regulations, or interpretations thereof, may adversely affect the Company’s business, financial condition, and results of operations.
Any new federal, state, or local restrictions on hydraulic fracturing could result in increased compliance costs or additional restrictions on the Company’s U.S. operations. Changes in tax rules and regulations, or interpretations thereof, may adversely affect the Company’s business, financial condition, and results of operations.
For example, the U.K. enacted the Energy Profits Levy, which assesses an additional levy of 35 percent, effective for the period of January 1, 2023, through March 31, 2028, on the profits of oil and gas companies operating in the U.K. and the U.K. Continental Shelf.
For example, the U.K. enacted the Energy Profits Levy (EPL), which assesses an additional levy of 35 percent, effective for the period of January 1, 2023, through March 31, 2028, on the profits of oil and gas companies operating in the U.K. and the U.K. Continental Shelf.
The Company’s efforts to limit its exposure to such liability and cost may prove inadequate and result in significant adverse effects to the Company’s results of operations and cash flows. The Company’s U.S. operations are subject to governmental risks.
The Company’s efforts to limit its 25 exposure to such liability and cost may prove inadequate and result in significant adverse effects to the Company’s results of operations and cash flows. The Company’s U.S. operations are subject to governmental risks.
While the Company remains focused on reusing or recycling water over disposal of water, the Company’s costs for obtaining and disposing of water could increase significantly if reusing and recycling water becomes impractical.
While the Company remains focused on reusing or recycling water over disposal of water, the Company’s costs for obtaining and disposing of water 27 could increase significantly if reusing and recycling water becomes impractical.
The Company’s U.S. operations have been, and at times in the future may be, affected by political developments and by federal, state, and local laws and regulations, including restrictions on production, changes in taxes and other amounts payable to governments, price or gathering rate controls, environmental protection laws and regulations, and security for plugging, abandonment, and decommissioning obligations, including in the Gulf of Mexico.
The Company’s U.S. operations have been, and at times in the future may be, affected by political developments and by federal, state, and local laws and regulations, including restrictions on production, changes in taxes and other amounts payable to governments, price or gathering rate controls, environmental protection laws and regulations, and security for plugging, abandonment, and decommissioning obligations, including in the Gulf of America.
In addition, the Company’s exploration, development, and production activities and equipment have been and can be adversely affected by severe weather, such as freezing temperatures, hurricanes in the Gulf of Mexico, or major storms in the North Sea, each of which have previously caused and may cause a loss of production from temporary cessation of activity or lost or damaged equipment.
In addition, the Company’s exploration, development, and production activities and equipment have been and can be adversely affected by severe weather, such as freezing temperatures, hurricanes in the Gulf of America, or major storms in the North Sea, each of which have previously caused and may cause a loss of production from temporary cessation of activity or lost or damaged equipment.
A portion of the Company’s crude oil, natural gas, and NGL production in any region may be interrupted, limited, or shut in from time to time for numerous reasons, including as a result of weather conditions, accidents, loss of pipeline or gathering system access, field labor issues or strikes, cyberattacks or terrorist events, or capital constraints that limit the ability of third parties to construct gathering systems, processing facilities, or interstate pipelines to transport the Company’s production.
A portion of the Company’s crude oil, natural gas, and NGL production in any region may be, and previously have been, interrupted, limited, or shut in from time to time for numerous reasons, including as a result of weather conditions, accidents, loss of pipeline or gathering system access, field labor issues or strikes, cyberattacks or terrorist events, or capital constraints that limit the ability of third parties to construct gathering systems, processing facilities, or interstate pipelines to transport the Company’s production.
There is no assurance of the terms upon which potential lenders under future agreements will make loans or other extensions of credit available to the Company or its subsidiaries or the composition of such lenders. The Company’s ability to declare and pay dividends is subject to limitations.
There is no assurance of the terms upon which potential lenders under future agreements will make loans or other extensions of credit available to the Company or its subsidiaries or the composition of such lenders. The Company’s ability to declare and pay dividends, and to repurchase common stock, is subject to limitations.
The estimates of the Company’s proved reserves and estimated future net revenues also depend on a number of factors and assumptions that may vary considerably from actual results, including historical production from the area compared with production from other areas, the results of drilling, testing, and production for a reservoir over time, the use of volumetric analysis versus production history, the effects of changes in laws (including taxes), future operating, workover, and remediation costs, and capital expenditures.
The estimates of the Company’s proved reserves and estimated future net revenues also depend on a number of factors and assumptions that may vary considerably from actual results, including historical production from the area compared with production from other areas, the results of drilling, testing, and production for a reservoir over time, the use of volumetric analysis versus production history, the effects of changes in laws (including emissions regulations, infrastructure modernization requirements, and taxes), future operating, workover, and remediation costs, and capital expenditures.
The Company’s future access to capital, as well as that of its partners and contractors, could be limited if the debt or equity markets are constrained. This could significantly delay development of the Company’s property interests. The Company’s syndicated revolving credit facilities currently mature in April 2027.
The Company’s future access to capital, as well as that of its partners and contractors, could be limited if the debt or equity markets are constrained. This could significantly delay development of the Company’s property interests. The Company’s syndicated revolving credit facilities currently mature in January 2030.
These events, including ineffective containment of such events, could result in property damages, personal injury, environmental pollution, and other damages for which the Company could be liable.
These events, including ineffective containment of such events, have previously and could in the future result in property damages, personal injury, environmental pollution, and other damages for which the Company could be liable.
Moreover, in January 2024, the EPA announced a proposed rule to assess a charge on certain methane emissions in the oil and gas industry. The Company is currently evaluating the proposed rule and its applicability to the Company.
Moreover, in January 2024, the EPA announced a proposed rule to assess a charge on certain methane emissions in the oil and gas industry. The Company is currently evaluating the proposed rule and its applicability to the Company and is monitoring ongoing litigation related to the proposed rule.
As a result, APA relies on cash flows from its subsidiaries to pay dividends on its common stock and to meet its financial obligations, including to service any amounts outstanding under its credit agreement or commercial paper program, and any additional financial obligations that the Company may incur from time to time in the future.
As a result, APA relies on cash flows from its subsidiaries to pay dividends on, and make repurchases of, its common stock and to meet its financial obligations, including to service any amounts outstanding under its notes, debentures, credit agreements or commercial paper program, and any additional financial obligations that the Company may incur from time to time in the future.
As described in Note 10—Income Taxes of the Notes to Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K, the Company has substantial net operating loss carryforwards (NOLs) and other tax attributes available to potentially offset future taxable income.
As described in Note 10—Income Taxes in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K, the Company has substantial net operating loss carryforwards (NOLs) and other tax attributes available to potentially offset future taxable income.
On a barrel equivalent basis, approximately 46 percent of the Company’s 2023 production was outside the U.S., and approximately 30 percent of the Company’s estimated proved oil and gas reserves as of December 31, 2023, were located outside the U.S.
On a barrel equivalent basis, approximately 38 percent of the Company’s 2024 production was outside the U.S., and approximately 28 percent of the Company’s estimated proved oil and gas reserves as of December 31, 2024, were located outside the U.S.
The payment of future dividends on the Company’s capital stock is subject to the discretion of the Board of Directors, taking into consideration, among other factors, the Company’s operating results, available cash, overall financial condition, credit risks, capital requirements, restrictions under the Company’s indentures and other financing agreements, and restrictions under Delaware law, as well as general business and market conditions.
The payment of future dividends on, and any repurchases of, the Company’s common stock are each subject to the discretion of the Board of Directors, taking into consideration, among other factors, the Company’s operating results, available cash, overall financial condition, credit risks, capital requirements, restrictions under the Company’s indentures and other financing agreements, restrictions under Delaware law, general business and market conditions, and other factors the Board of Directors deems relevant.
The treatment and disposal of produced water is becoming more highly regulated and restricted. Regulators in some states, such as the Railroad Commission of Texas, have taken actions to limit disposal well activities (including orders to temporarily shut down or to curtail water injection) and to require the monitoring of seismic activity.
Regulators in some states, such as the Railroad Commission of Texas, have taken actions to limit disposal well activities (including orders to temporarily shut down or to curtail water injection) and to require the monitoring of seismic activity.
Additionally, the Company may voluntarily curtail production in response to market conditions. If a substantial amount of the Company’s production is interrupted or curtailed at the same time, it could temporarily adversely affect the Company’s cash flows.
Additionally, the Company has previously and may in the future voluntarily curtail production in response to market conditions, such as weak or negative prices. If a substantial amount of the Company’s production is interrupted or curtailed at the same time, it could temporarily adversely affect the Company’s cash flows.
A ratings downgrade could adversely impact the Company’s ability to access debt markets in the future and increase the cost of future debt. During 2023, Moody’s upgraded the Company’s rating to Baa3/Stable, and Standard and Poor’s affirmed the Company’s rating as BB+/Positive.
A ratings downgrade could adversely impact the Company’s ability to access debt markets in the future and increase the cost of future debt. During 2024, Standard and Poor’s upgraded the Company’s rating to BBB-/Stable, Moody’s affirmed the Company’s rating at Baa3/Stable, and Fitch affirmed the Company’s rating at BBB-/Stable.
The Company’s operations in Egypt, excluding the impacts of a one-third noncontrolling interest, contributed 27 percent of the Company’s 2023 production and accounted for 15 percent of the Company’s year-end estimated proved reserves and 29 percent of the Company’s estimated discounted future net cash flows.
The Company’s operations in Egypt, excluding the impacts of a one-third noncontrolling interest, contributed 22 percent of the Company’s 2024 production and accounted for 12 percent of the Company’s year-end estimated proved reserves and 21 28 percent of the Company’s estimated discounted future net cash flows.
The Board of Directors is not required to declare dividends on APA’s common stock and may decide not to declare dividends.
The Board of Directors is not required to declare dividends on or repurchase APA’s common stock and may decide not to declare dividends or repurchase common stock at the current rate or at all.
If a significant portion of the Company’s workforce cannot effectively perform their responsibilities, whether resulting from a lack of physical or virtual access, quarantines, illnesses, governmental actions or restrictions (including vaccine mandates and the reactions thereto), or other restrictions or adverse impacts resulting from a pandemic, the Company’s business, financial condition, cash flows, and results of operations may be materially adversely affected.
If a significant portion of the Company’s workforce cannot effectively perform their responsibilities, whether resulting from a lack of physical or virtual access, quarantines, illnesses, governmental actions or restrictions (including vaccine mandates and the reactions thereto), or other restrictions or adverse impacts resulting from a pandemic, the Company’s business, financial condition, cash flows, and results of operations may be materially adversely affected. 20 RISKS RELATED TO OPERATIONS AND DEVELOPMENT PROJECTS The Company’s operations involve a high degree of operational risk, particularly risk of personal injury, damage to or loss of property, and environmental accidents.
In either case, the value of the investment and the Company’s business and financial condition may be adversely affected. 23 RISKS RELATED TO CAPITAL MARKETS A downgrade in the Company’s credit rating could negatively impact its cost of and ability to access capital. The Company receives debt ratings from the major credit rating agencies in the U.S.
RISKS RELATED TO CAPITAL MARKETS A downgrade in the Company’s credit rating could negatively impact its cost of and ability to access capital. The Company receives debt ratings from the major credit rating agencies in the U.S.
The Company expends significant resources to protect its digital systems and data, whether such data is housed internally or externally by third parties, against cyberattacks and may be required to expend further resources as cyber threat actors become more sophisticated and as regulations related to cyberattacks become more complex.
The potential impacts of a cyber incident could be made worse by a delay or failure to detect the occurrence, continuance, or extent of such an incident. 21 The Company expends significant resources to protect its digital systems and data, whether such data is housed internally or externally by third parties, against cyberattacks and may be required to expend further resources as cyber threat actors become more sophisticated and as regulations related to cyberattacks become more complex.
In addition, a number of advocacy groups have campaigned for governmental and private action to influence change in the business strategies of oil and gas companies, including through the investment and voting practices of investment advisers, public pension funds, universities, and other members of the investing community.
Unfavorable ESG ratings may lead to negative investor and public sentiment toward the Company, which may cause the market for the Company’s securities to be negatively impacted. 24 In addition, a number of advocacy groups have campaigned for governmental and private action to influence change in the business strategies of oil and gas companies, including through the investment and voting practices of investment advisers, public pension funds, universities, and other members of the investing community.
For example, the NYMEX daily settlement price for the prompt month oil contract in 2023 ranged from a high of $93.67 per barrel to a low of $66.61 per barrel, and the NYMEX daily settlement price for the prompt month natural gas contract in 2023 ranged from a high of $3.78 per MMBtu to a low of $1.74 per MMBtu.
For example, the NYMEX daily settlement price for the prompt month oil contract in 2024 ranged from a high of $87.69 per barrel to a low of $66.73 per barrel, and the NYMEX daily settlement price for the prompt month natural gas contract in 2024 ranged from a high of $13.20 per MMBtu to a low of $1.21 per MMBtu.
Moreover, parties to such agreements or ventures may be unable to meet their economic or other obligations, and the Company may be required to fulfill those obligations alone.
Moreover, parties to such agreements or ventures may be unable to meet their economic or other obligations, and the Company may be required to fulfill those obligations alone. In either case, the value of the investment and the Company’s business and financial condition may be adversely affected.
For additional information regarding Apache’s prior Gulf of Mexico properties and the bankruptcy of the purchaser of those properties, see the information set forth under “Potential Decommissioning Obligations on Sold Properties” in Note 11—Commitments and Contingencies in the Notes to Consolidated Financial Statements set forth in Item 15 of this Annual Report on Form 10-K.
For additional information regarding Apache’s prior Gulf of America properties and the bankruptcy of the purchaser of those properties, see the information set forth under “Potential Decommissioning Obligations on Sold Properties” in Note 11—Commitments and Contingencies in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K. 23 The Company does not always control decisions made under joint operating agreements or joint ventures, and the parties to such agreements or ventures may fail to meet their obligations.
Additionally, deteriorating economic conditions in Egypt have led to a shortage of foreign currency, including U.S. dollars, resulting in a decline in the timeliness of payments from EGPC. A continuation or worsening of the currency shortage in Egypt or further deterioration of economic conditions there could lead to additional payment delays, deferrals of payment, or non-payment in the future.
Additionally, deteriorating economic conditions in Egypt have led to a shortage of foreign currency, including U.S. dollars, resulting in a decline in the timeliness of payments from EGPC.
A change in future development plans for proved undeveloped reserves could cause the discontinuation of the classification of these reserves as proved. Certain of the Company’s undeveloped leasehold acreage is subject to leases that will expire over the next several years unless production is established on units containing the acreage. A sizeable portion of the Company’s acreage is currently undeveloped.
Certain of the Company’s undeveloped leasehold acreage is subject to leases that will expire over the next several years unless production is established on units containing the acreage. A sizeable portion of the Company’s acreage is currently undeveloped. Unless production in paying quantities is established on units containing certain of these leases during their terms, the leases will expire.
The Company may not control decisions made under such agreements or ventures, either because it does not have a controlling interest in the venture or is not an operator under the agreement.
The Company conducts many of its exploration and production (E&P) operations through joint operating agreements or joint ventures with other parties. The Company may not control decisions made under such agreements or ventures, either because it does not have a controlling interest in the venture or is not an operator under the agreement.
The Company’s drilling plans for these areas are subject to change based upon various factors, including drilling results, commodity prices, the availability and cost of capital, drilling and production costs, availability of drilling services and equipment, gathering system and pipeline transportation constraints, and regulatory approvals. 22 RISKS RELATED TO COUNTERPARTIES The credit risk of financial institutions could adversely affect the Company and result in a significant loss.
If the leases expire, the Company will lose its right to develop the related properties. The Company’s drilling plans for these areas are subject to change based upon various factors, including drilling results, commodity prices, the availability and cost of capital, drilling and production costs, availability of drilling services and equipment, gathering system and pipeline transportation constraints, and regulatory approvals.
The Company’s revised reporting now reflects only fresh water and non-potable water from surface water or shallow groundwater that are consumed in oil and gas operations. The treatment and disposal of produced water is becoming more highly regulated and restricted and could expose the Company to additional costs or limit certain operations.
The treatment and disposal of produced water is becoming more highly regulated and restricted and could expose the Company to additional costs or limit certain operations. The treatment and disposal of produced water is becoming more highly regulated and restricted.
The defense or settlement of any lawsuit or claim that remains unresolved at the time the merger is completed may adversely affect the Company’s business, financial condition, results of operations, and cash flows. GENERAL RISK FACTORS Certain anti-takeover provisions in the Company’s charter and Delaware law could delay or prevent a hostile takeover.
GENERAL RISK FACTORS Certain anti-takeover provisions in the Company’s charter and Delaware law could delay or prevent a hostile takeover.
Such a limitation could materially adversely affect the Company’s operating results or cash flows. APA is a holding company and is dependent on the operations of and distributions from its subsidiaries, including Apache. As a holding company, APA has no business operations of its own, and its only significant assets are the outstanding equity interests of its subsidiaries, including Apache.
As a holding company, APA has no business operations of its own, and its primary assets are its ownership interests in its subsidiaries, including Apache.
Removed
RISKS RELATED TO OPERATIONS AND DEVELOPMENT PROJECTS The Company’s operations involve a high degree of operational risk, particularly risk of personal injury, damage to or loss of property, and environmental accidents.
Added
In addition, realization or recognition of 22 proved undeveloped reserves will depend on the Company’s development schedule and plans. A change in future development plans for proved undeveloped reserves could cause the discontinuation of the classification of these reserves as proved.
Removed
The potential impacts of a cyber incident could be made worse by a delay or failure to detect the occurrence, continuance, or extent of such an incident.
Added
RISKS RELATED TO COUNTERPARTIES The credit risk of financial institutions could adversely affect the Company and result in a significant loss.
Removed
Unless production in paying quantities is established on units containing certain of these leases during their terms, the leases will expire. If the leases expire, the Company will lose its right to develop the related properties.
Added
Any downward revision in the amount of dividends the Company pays to shareholders, or reduction in the pace of share repurchases, could have an adverse effect on the market price of the Company’s common stock.
Removed
The Company does not always control decisions made under joint operating agreements or joint ventures, and the parties to such agreements or ventures may fail to meet their obligations. The Company conducts many of its exploration and production (E&P) operations through joint operating agreements or joint ventures with other parties.
Added
Such a limitation could materially adversely affect the Company’s operating results or cash flows. The Company’s ability to realize its deferred tax assets may be limited if it experiences changes in expected future cash flows related to reserves or ARO.
Removed
Unfavorable ESG ratings may lead to negative investor and public sentiment toward the Company, which may cause the market for the Company’s securities to be negatively impacted.
Added
As described in Note 10—Income Taxes in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K, the Company assesses the realizability of its deferred tax assets based on its ability to generate sufficient future taxable income.
Removed
The guidance upon which the Company’s consumptive water use reporting was modified and could be revised in the future, resulting in the over or underreporting of the Company’s consumptive water use. In 2022, the Company modified the way it reports its water data compared to previous years and restated its data from prior years.
Added
Future changes in expected cash outflows for ARO or inflows from reserves could impact the Company’s ability to realize its deferred tax assets in future periods. APA is a holding company and is dependent on the operations of and distributions from its subsidiaries, including Apache.
Removed
Previously, the Company included produced water usage in its consumptive use calculations, which led to an over-reporting of consumptive water use.
Added
Further changes to the EPL regime were announced in 2024, with enactment expected in 2025. Such changes, effective for the period of November 1, 2024, through March 31, 2030, would increase the levy to 38 percent, remove certain allowances, and extend the EPL period.
Removed
Based on re-evaluation of water reporting definitions and guidance, the Company determined that produced water (non-potable water released from deep underground formations and brought to the surface during oil and gas exploration and production) should not be classified as consumed in the same sense as fresh water.
Added
As described under “Revenue Recognition—Payment Terms and Contract Balances” in Note 1 — Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K, the Company’s receivable balance from EGPC in the past year has gradually increased as payments for the Company’s Egyptian oil and gas sales have been delayed for periods longer than historically experienced.
Removed
RISKS RELATED TO THE PROPOSED ACQUISITION OF CALLON PETROLEUM COMPANY (CALLON) The merger is subject to a number of conditions to the obligations of both the Company and Callon to complete the merger, including approval of the Company and Callon stockholders and regulatory clearance, which may impose unacceptable conditions or could delay completion of the merger or result in termination of the Merger Agreement.
Added
A continuation or worsening of the currency shortage in Egypt or further deterioration of economic conditions there could lead to additional payment delays, deferrals of payment, or non-payment in the future.
Removed
On January 3, 2024, the Company entered into a definitive agreement (the Merger Agreement) to acquire Callon.
Removed
The respective obligations of each of the Company and Callon to consummate the merger are subject to the satisfaction at or prior to the closing of numerous conditions, including the approval of both the Company’s and Callon’s stockholders, the absence of any law or order prohibiting the consummation of the merger, and the expiration or termination of the waiting period (and any extension of such period) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.
Removed
Many of the 28 conditions to completion of the merger are not within either the Company’s or Callon’s control, and the Company cannot predict when, or if, these conditions will be satisfied. Furthermore, the requirement for obtaining the required regulatory clearances could delay the completion of the merger for a significant period of time or prevent it from occurring.
Removed
Regulators may seek to enjoin the completion of the merger, seek divestiture of substantial assets of the parties, or require the parties to license, or hold separate, assets or terminate existing relationships and contractual rights.
Removed
Failure to complete the merger could negatively impact the Company’s stock price and have a material adverse effect on the Company’s results of operations, cash flows, and financial position.
Removed
If the merger is not completed for any reason, including as a result of failure to obtain all requisite regulatory and stockholder approvals, the ongoing business of the Company may be materially adversely affected and, without realizing any of the benefits of having completed the merger, the Company would be subject to a number of risks, including the following: • the Company may experience negative reactions from the financial markets, including negative stock price impacts; • the Company may experience negative reactions from commercial and business partners; • the Company will still be required to pay significant costs relating to the merger, such as legal, accounting, financial advisor, and printing fees; and • the Company may be required to pay up to a $170 million termination fee to Callon or reimburse up to $48 million of Callon’s expenses, as required by the Merger Agreement.
Removed
The pending merger may cause a loss of key employees, disruptions in business relationships, distraction of management, and limitations on the Company’s business activities.
Removed
Whether or not the merger is completed, the announcement and pendency of the merger could cause disruptions to the Company’s business, including: • uncertainties associated with the merger may cause a loss of management personnel and other key employees of the Company, which could adversely affect the future business and operations of the Company following the merger; • the business relationships of the Company may be subject to disruption due to uncertainty associated with the merger, which could have a material adverse effect on the Company’s results of operations, cash flows, and financial position; • matters relating to the merger (including integration planning) require substantial commitments of time and resources by the Company’s management, which may result in the distraction of the Company’s management from ongoing business operations and pursuing other opportunities that could be beneficial to the Company; and • the Merger Agreement places certain restrictions on the conduct of the Company, which may delay or prevent the Company from undertaking business opportunities that, absent the Merger Agreement, may have been pursued.
Removed
The Company may fail to realize the anticipated benefits of the merger and fail to successfully integrate the businesses and operations of the companies in the expected time frame.
Removed
The success of the merger will depend on, among other things, the combined company’s ability to integrate the Company’s and Callon’s businesses in a manner that realizes anticipated synergies and benefits and meets or exceeds the forecasted stand-alone cost savings anticipated by the combined company.
Removed
If the combined company is not able to successfully achieve these synergies, or the cost to achieve these synergies is greater than expected, then the anticipated benefits of the merger may not be realized fully or at all or may take longer to realize than expected.
Removed
If the transaction closes, it is possible that the integration process could result in the loss of key Company employees or key Callon employees, the loss of customers, providers, vendors, or business partners, the disruption of either company’s or both companies’ ongoing businesses, inconsistencies in standards, controls, procedures, and policies, potential unknown liabilities and unforeseen expenses, delays, or regulatory conditions associated with and following completion of the merger, or higher than expected integration costs and an overall post-completion integration process that takes longer than originally anticipated.
Removed
In addition, at times the attention of certain members of the Company’s management and resources may be focused on completion of the merger and planning the integration of the businesses of the two companies and diverted from day-to-day business operations or other opportunities that may have been beneficial to the Company, which may disrupt the Company’s ongoing business and the business of the combined company. 29 Litigation relating to the merger could result in substantial costs to the Company.
Removed
Securities class action lawsuits and derivative lawsuits are often brought against public companies that have entered into acquisition, merger, or other business combination agreements. Even if such a lawsuit is without merit, defending against these claims can result in substantial costs and divert management time and resources.
Removed
An adverse judgment could result in monetary damages, which could have a negative impact on the Company’s liquidity and financial condition. There can be no assurance that any of the defendants will be successful in the outcome of any pending or any potential future lawsuits.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe CIO manages the Company’s Information Security Team, which is comprised of cybersecurity professionals responsible for managing the Company’s threat intelligence, vulnerability management, forensics, and security architecture systems and processes. The CIO has a Bachelor of Science in Computer Science and over 25 years of experience managing data and technology in the energy industry.
Biggest changeHe manages the Company’s Information Security Team, which comprises cybersecurity professionals responsible for the day-to-day operation of the Company’s cybersecurity program and managing the Company’s threat intelligence, vulnerability management, forensics, and security architecture systems. APA’s Executive Vice President, Administration, has 35 years of experience managing data and technology in the energy industry, including serving as the Company’s CIO from 2015-2020.
Given the Cybersecurity Committee’s chair’s previous military experience in positions relevant to information security and his NACD-sponsored CERT Certificate in Cybersecurity Oversight from Carnegie Mellon University’s Software Engineering Institute, the committee benefits from his perspectives, skills, and training when reviewing and managing the Company’s exposure to cybersecurity risks. 30 As stated in its charter, the Cybersecurity Committee’s responsibilities include: • providing oversight of the Company’s cybersecurity policies, procedures, and plans, including the quality and effectiveness of the cybersecurity program; • reviewing the Company’s policies and procedures related to its preparation for, defense against, response to, and recovery from material cybersecurity incidents; • reviewing with management the plans and methodology for periodic assessments of the Company’s cybersecurity program by outside professionals, including the findings of such assessments and plans to remediate any material deficiencies identified by such assessments; • overseeing the Company’s management of risks related to its cybersecurity systems and processes; • reviewing with management any cybersecurity insurance program the Company may procure, including with respect to coverage and limits; and • overseeing the preparation of the Company’s disclosures in its reports filed with the Securities and Exchange Commission relating to the Company’s cybersecurity systems.
Given the Cybersecurity Committee’s chair’s previous military experience in positions relevant to information security and his NACD-sponsored CERT Certificate in Cybersecurity Oversight from Carnegie Mellon University’s Software Engineering Institute, the committee benefits from his perspectives, skills, and training when reviewing and managing the Company’s exposure to cybersecurity risks. 29 As stated in its charter, the Cybersecurity Committee’s responsibilities include: • providing oversight of the Company’s cybersecurity policies, procedures, and plans, including the quality and effectiveness of the cybersecurity program; • reviewing the Company’s policies and procedures related to its preparation for, defense against, response to, and recovery from material cybersecurity incidents; • reviewing with management the plans and methodology for periodic assessments of the Company’s cybersecurity program by outside professionals, including the findings of such assessments and plans to remediate any material deficiencies identified by such assessments; • overseeing the Company’s management of risks related to its cybersecurity systems and processes; • reviewing with management any cybersecurity insurance program the Company may procure, including with respect to coverage and limits; and • overseeing the preparation of the Company’s disclosures in its reports filed with the Securities and Exchange Commission relating to the Company’s cybersecurity systems.
For additional information regarding relevant cybersecurity risks, see Item 1A ― Risk Factors ― “ A cyberattack targeting systems and infrastructure used by the Company or others in the oil and gas industry may adversely impact the Company’s operations .” 31
For additional information regarding relevant cybersecurity risks, see Item 1A―Risk Factors ― “ A cyberattack targeting systems and infrastructure used by the Company or others in the oil and gas industry may adversely impact the Company’s operations .” 30
As of December 31, 2023, no risks from cybersecurity threats or incidents have materially affected or are reasonably likely to materially affect the Company’s business strategy, results of operations, or financial condition.
As of December 31, 2024, no risks from cybersecurity threats or incidents have materially affected or are reasonably likely to materially affect the Company’s business strategy, results of operations, or financial condition.
Under the direction of the CIO, management’s responsibilities with respect to the Company’s cybersecurity program include (i) identifying and managing cybersecurity risks, (ii) coordinating cybersecurity incident response, (iii) assessing the health and maturity of the Company’s cybersecurity policies, procedures, and plans, including the program, and (iv) reporting overall progress to the Cybersecurity Committee and to the full Board of Directors.
Under the direction of the Executive Vice President, Administration, management’s responsibilities with respect to the Company’s cybersecurity program include (i) identifying and managing cybersecurity risks, (ii) coordinating cybersecurity incident response, (iii) assessing the health and maturity of the Company’s cybersecurity policies, procedures, and plans, including the program, and (iv) reporting overall progress to the Cybersecurity Committee and to the full Board of Directors.
Additionally, in 2023, the Company established its CyberSmart Defender Network, which is a multi-disciplinary team that includes representatives from across the Company’s various departments, responsible for raising awareness of cybersecurity issues, sharing learnings, and gaining access to advanced cybersecurity information and training.
Additionally, the Company’s CyberSmart Defender Network, which is a multi-disciplinary team that includes representatives from across the Company’s various departments, is responsible for raising awareness of cybersecurity issues, sharing learnings, and gaining access to advanced cybersecurity information and training.
He also receives regular updates from external cybersecurity specialists on emerging trends, threats, and technologies in the cybersecurity industry. The CIO reports directly to APA’s Executive Vice President, Administration, who, along with the CIO, presents all relevant information to the Cybersecurity Committee.
He receives regular updates from external cybersecurity specialists on emerging trends, threats, and technologies in the cybersecurity industry. The Executive Vice President, Administration, reports directly to APA’s Chief Executive Officer and presents all relevant information to the Cybersecurity Committee.
Governance In 2023, the Company’s Board of Directors established a standing Cybersecurity Committee to assist with oversight of the Company’s cybersecurity program and the material risks associated with the threats identified under the program.
Governance The standing Cybersecurity Committee of the Company’s Board of Directors assists with oversight of the Company’s cybersecurity program and the material risks associated with the threats identified under the program.
APA’s Chief Information Officer (the CIO) is primarily responsible for the day-to-day operation of the Company’s cybersecurity program and for identifying, assessing, and managing the material risks associated with the cybersecurity threats and incidents identified from time to time thereunder.
APA’s Executive Vice President, Administration, is primarily responsible for identifying, assessing, and managing the material risks associated with cybersecurity threats and the incidents identified from time to time thereunder.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

10 edited+0 added−0 removed3 unchanged
Biggest changePeriod Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs January 1 to January 31, 2023 1,115,162 $ 45.96 1,115,162 51,515,635 February 1 to February 28, 2023 — — — 51,515,635 March 1 to March 31, 2023 2,547,546 35.85 2,547,546 48,968,089 April 1 to April 30, 2023 — — — 48,968,089 May 1 to May 31, 2023 1,348,347 33.72 1,348,347 47,619,742 June 1 to June 30, 2023 — — — 47,619,742 July 1 to July 31, 2023 — — — 47,619,742 August 1 to August 31, 2023 — — — 47,619,742 September 1 to September 30, 2023 477,465 41.90 477,465 47,142,277 October 1 to October 31, 2023 447,228 40.26 447,228 46,695,049 November 1 to November 30, 2023 1,495,986 37.44 1,495,986 45,199,063 December 1 to December 31, 2023 1,279,444 36.95 1,279,444 43,919,619 Total 8,711,178 $ 37.81 (1) During the fourth quarter of 2021, the Company's Board of Directors authorized the purchase of 40 million shares of the Company's common stock.
Biggest changePeriod Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs January 1 to January 31, 2024 2,226,352 $ 34.22 2,226,352 41,693,267 February 1 to February 29, 2024 784,765 30.59 784,765 40,908,502 March 1 to March 31, 2024 — — — 40,908,502 April 1 to April 30, 2024 — — — 40,908,502 May 1 to May 31, 2024 — — — 40,908,502 June 1 to June 30, 2024 1,480,072 28.72 1,480,072 39,428,430 July 1 to July 31, 2024 102,305 29.33 102,305 39,326,125 August 1 to August 31, 2024 — — — 39,326,125 September 1 to September 30, 2024 — — — 39,326,125 October 1 to October 31, 2024 — — — 39,326,125 November 1 to November 30, 2024 2,588,969 22.20 2,588,969 36,737,156 December 1 to December 31, 2024 1,980,034 21.52 1,980,034 34,757,122 Total 9,162,497 $ 26.83 (1) During the fourth quarter of 2021, the Company's Board of Directors authorized the purchase of 40 million shares of the Company's common stock.
Information concerning securities authorized for issuance under equity compensation plans is set forth under the caption “Equity Compensation Plan Information” in the proxy statement relating to the Company’s 2024 annual meeting of stockholders, which is incorporated herein by reference.
Information concerning securities authorized for issuance under equity compensation plans is set forth under the caption “Equity Compensation Plan Information” in the proxy statement relating to the Company’s 2025 annual meeting of stockholders, which is incorporated herein by reference.
The Company is not obligated to acquire any specific number of shares. 33 The following stock price performance graph is intended to allow review of stockholder returns, expressed in terms of the performance of the Company’s common stock relative to two broad-based stock performance indices.
The Company is not obligated to acquire any specific number of shares. 32 The following stock price performance graph is intended to allow review of stockholder returns, expressed in terms of the performance of the Company’s common stock relative to two broad-based stock performance indices.
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* Among APA Corporation, the S&P 500 Index, and the Dow Jones U.S. Exploration & Production Index * $100 invested on 12/31/18 in stock or index, including reinvestment of dividends.
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* Among APA Corporation, the S&P 500 Index, and the Dow Jones U.S. Exploration & Production Index * $100 invested on 12/31/19 in stock or index, including reinvestment of dividends.
Issuer Purchases of Equity Securities The table below sets forth information with respect to shares of common stock repurchased by APA during 2023.
Issuer Purchases of Equity Securities The table below sets forth information with respect to shares of common stock repurchased by APA during 2024.
ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES APA’s common stock, par value $0.625 per share, is traded on the Nasdaq Global Select Market (Nasdaq) under the symbol “APA.” The closing price of APA’s common stock, as reported by the Nasdaq for January 31, 2024, was $31.33 per share.
ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES APA’s common stock, par value $0.625 per share, is traded on the Nasdaq Global Select Market (Nasdaq) under the symbol “APA.” The closing price of APA’s common stock, as reported by the Nasdaq for January 31, 2025, was $21.93 per share.
Exploration & Production Index (formerly Dow Jones Secondary Oil Stock Index) from December 31, 2018, through December 31, 2023.
Exploration & Production Index (formerly Dow Jones Secondary Oil Stock Index) from December 31, 2019, through December 31, 2024.
As of January 31, 2024, there were 301,818,820 shares of APA’s common stock outstanding held by approximately 3,000 stockholders of record and 257,000 beneficial owners. The Company has paid cash dividends on its common stock for 59 consecutive years through December 31, 2023.
As of January 31, 2025, there were 364,064,316 shares of APA’s common stock outstanding held by approximately 3,700 stockholders of record and 243,000 beneficial owners. The Company has paid cash dividends on its common stock for 60 consecutive years through December 31, 2024.
During the third quarter of 2022, the Company’s Board of Directors increased the Company’s quarterly dividend from $0.125 per share to $0.25 per share, representing a return to pre-Covid-19 dividend levels. When, and if, declared by the Company’s Board of Directors, future dividend payments will depend upon the Company’s level of earnings, financial requirements, and other relevant factors.
When, and if, declared by the Company’s Board of Directors, future dividend payments will depend upon the Company’s level of earnings, financial requirements, and other relevant factors.
Fiscal year ending December 31. 2018 2019 2020 2021 2022 2023 APA Corporation $ 100.00 $ 101.06 $ 56.89 $ 108.53 $ 191.58 $ 150.92 S&P 500 Index 100.00 131.49 155.68 200.37 164.08 207.21 Dow Jones U.S. Exploration & Production Index 100.00 111.39 73.91 126.33 201.59 210.70
Fiscal year ending December 31. 2019 2020 2021 2022 2023 2024 APA Corporation $ 100.00 $ 56.30 $ 107.40 $ 189.58 $ 149.35 $ 99.41 S&P 500 Index 100.00 118.40 152.39 124.79 157.59 197.02 Dow Jones U.S. Exploration & Production Index 100.00 66.35 113.41 180.98 189.15 186.27

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

152 edited+83 added−72 removed37 unchanged
Biggest changeFor detailed information regarding APA’s acquisitions and divestitures, refer to Note 2—Acquisitions and Divestitures in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K. 37 Results of Operations Oil, Natural Gas, and Natural Gas Liquids Production Revenues The Company’s production revenues and respective contribution to total revenues by country are as follows: For the Year Ended December 31, 2023 2022 2021 $ Value % Contribution $ Value % Contribution $ Value % Contribution ($ in millions) Oil Revenues: United States $ 2,241 37 % $ 2,458 36 % $ 1,850 40 % Egypt (1) 2,683 45 % 3,145 46 % 1,806 40 % North Sea 1,073 18 % 1,232 18 % 929 20 % Total (1) $ 5,997 100 % $ 6,835 100 % $ 4,585 100 % Natural Gas Revenues: United States $ 297 34 % $ 918 59 % $ 754 62 % Egypt (1) 346 39 % 370 23 % 270 23 % North Sea 237 27 % 281 18 % 183 15 % Total (1) $ 880 100 % $ 1,569 100 % $ 1,207 100 % NGL Revenues: United States $ 480 94 % $ 765 94 % $ 673 95 % Egypt (1) — — % 6 1 % 9 1 % North Sea 28 6 % 45 5 % 24 4 % Total (1) $ 508 100 % $ 816 100 % $ 706 100 % Oil and Gas Revenues: United States $ 3,018 41 % $ 4,141 45 % $ 3,277 50 % Egypt (1) 3,029 41 % 3,521 38 % 2,085 32 % North Sea 1,338 18 % 1,558 17 % 1,136 18 % Total (1) $ 7,385 100 % $ 9,220 100 % $ 6,498 100 % (1) Includes revenues attributable to a noncontrolling interest in Egypt. 38 Production The following table presents production volumes by country: For the Year Ended December 31, 2023 Increase (Decrease) 2022 Increase (Decrease) 2021 Oil Volumes – b/d: United States (5) 78,889 12% 70,398 (6)% 75,205 Egypt (3)(4) 89,129 5% 85,081 21% 70,349 North Sea 34,728 7% 32,578 (10)% 36,265 Total 202,746 8% 188,057 3% 181,819 Natural Gas Volumes – Mcf/d: United States (5) 452,281 (4)% 473,292 (10)% 527,461 Egypt (3)(4) 325,778 (9)% 356,327 35% 263,653 North Sea 50,284 42% 35,327 (8)% 38,565 Total 828,343 (4)% 864,946 4% 829,679 NGL Volumes – b/d: United States (5) 62,997 —% 62,727 (5)% 66,232 Egypt (3)(4) — NM 196 (63)% 531 North Sea 1,240 12% 1,111 (7)% 1,199 Total 64,237 —% 64,034 (6)% 67,962 BOE per day: (1) United States (5) 217,266 2% 212,007 (8)% 229,348 Egypt (3)(4) 143,425 (1)% 144,665 26% 114,821 North Sea (2) 44,349 12% 39,577 (10)% 43,892 Total 405,040 2% 396,249 2% 388,061 (1) The table shows production on a boe basis in which natural gas is converted to an equivalent barrel of oil based on a 6:1 energy equivalent ratio.
Biggest changeFor detailed information regarding APA’s acquisitions and divestitures, refer to Note 2—Acquisitions and Divestitures in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K. 36 Results of Operations Oil, Natural Gas, and Natural Gas Liquids Production Revenues The Company’s production revenues and respective contribution to total revenues by country are as follows: For the Year Ended December 31, 2024 2023 2022 $ Value % Contribution $ Value % Contribution $ Value % Contribution ($ in millions) Oil Revenues: United States $ 3,572 51 % $ 2,241 37 % $ 2,458 36 % Egypt (1) 2,620 38 % 2,683 45 % 3,145 46 % North Sea 774 11 % 1,073 18 % 1,232 18 % Total (1) $ 6,966 100 % $ 5,997 100 % $ 6,835 100 % Natural Gas Revenues: United States $ 126 22 % $ 297 34 % $ 918 59 % Egypt (1) 313 53 % 346 39 % 370 23 % North Sea 145 25 % 237 27 % 281 18 % Total (1) $ 584 100 % $ 880 100 % $ 1,569 100 % NGL Revenues: United States $ 617 96 % $ 480 94 % $ 765 94 % Egypt (1) — — % — — % 6 1 % North Sea 29 4 % 28 6 % 45 5 % Total (1) $ 646 100 % $ 508 100 % $ 816 100 % Oil and Gas Revenues: United States $ 4,315 53 % $ 3,018 41 % $ 4,141 45 % Egypt (1) 2,933 36 % 3,029 41 % 3,521 38 % North Sea 948 11 % 1,338 18 % 1,558 17 % Total (1) $ 8,196 100 % $ 7,385 100 % $ 9,220 100 % (1) Includes revenues attributable to a noncontrolling interest in Egypt. 37 Production The following table presents production volumes by country: For the Year Ended December 31, 2024 Increase (Decrease) 2023 Increase (Decrease) 2022 Oil Volumes – b/d: United States 128,531 63% 78,889 12% 70,398 Egypt (3)(4) 89,027 —% 89,129 5% 85,081 North Sea 26,340 (24)% 34,728 7% 32,578 Total 243,898 20% 202,746 8% 188,057 Natural Gas Volumes – Mcf/d: United States 483,446 7% 452,281 (4)% 473,292 Egypt (3)(4) 291,011 (11)% 325,778 (9)% 356,327 North Sea 39,986 (20)% 50,284 42% 35,327 Total 814,443 (2)% 828,343 (4)% 864,946 NGL Volumes – b/d: United States 73,877 17% 62,997 —% 62,727 Egypt (3)(4) — NM — NM 196 North Sea 1,201 (3)% 1,240 12% 1,111 Total 75,078 17% 64,237 —% 64,034 BOE per day: (1) United States 282,983 30% 217,266 2% 212,007 Egypt (3)(4) 137,529 (4)% 143,425 (1)% 144,665 North Sea (2) 34,204 (23)% 44,349 12% 39,577 Total 454,716 12% 405,040 2% 396,249 (1) The table shows production on a boe basis in which natural gas is converted to an equivalent barrel of oil based on a 6:1 energy equivalent ratio.
As a result, the Company recorded a deferred tax expense of $208 million and $174 million related to the remeasurement of the U.K. deferred tax liability in 2022 and 2023, respectively . On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022 (IRA).
As a result, the Company recorded a deferred tax expense of $174 million and $208 million related to the remeasurement of the U.K. deferred tax liability in 2023 and 2022, respectively . On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022 (IRA).
Despite these uncertainties, the Company remains committed to its longer-term objectives: (1) to invest for long-term returns in pursuit of moderate, sustainable production growth; (2) to strengthen the balance sheet to underpin the generation of cash flow in excess of its upstream exploration, appraisal, and development capital program that can be directed to debt reduction, share repurchases, and other return of capital to its shareholders; and (3) to responsibly manage its cost structure regardless of the oil price environment.
Despite these uncertainties, the Company remains committed to its longer-term objectives: (1) to invest for long-term returns in pursuit of moderate, sustainable production growth; (2) to strengthen the balance sheet to underpin the generation of cash flow in excess of its upstream exploration, appraisal, and development capital program that can be directed to debt reduction, share repurchases, and other return of capital to its shareholders; and (3) to responsibly manage its cost structure regardless of the oil price environment.
The IRA includes a new 15 percent corporate alternative minimum tax (CAMT) on applicable corporations with an average annual adjusted financial statement income that exceeds $1 billion for any three consecutive years preceding the tax year at issue. The CAMT is effective for tax years beginning after December 31, 2022.
The IRA includes a new 15 percent corporate alternative minimum tax (CAMT) on applicable corporations with an average annual adjusted financial statement income that exceeds $1.0 billion for any three consecutive years preceding the tax year at issue. The CAMT is effective for tax years beginning after December 31, 2022.
The Company closely monitors hydrocarbon pricing fundamentals to reallocate capital as part of its ongoing planning process. APA’s diversified asset portfolio and operational flexibility provide it the ability to timely respond to near-term price volatility and effectively manage its investment programs accordingly.
The Company closely monitors hydrocarbon pricing fundamentals to reallocate capital as part of its ongoing planning process. APA’s diversified asset portfolio and operational flexibility provide the Company the ability to timely respond to near-term price volatility and effectively manage its investment programs accordingly.
Apache has also received orders to decommission other Legacy GOM Assets that were not included in GOM Shelf’s notification letters. Further, Apache anticipates that GOM Shelf may send additional such notices to BSEE in the future and that it may receive additional orders from BSEE requiring it to decommission other Legacy GOM Assets.
Apache has also received orders to decommission other Legacy GOA Assets that were not included in GOM Shelf’s notification letters. Further, Apache anticipates that GOM Shelf may send additional such notices to BSEE in the future and that it may receive additional orders from BSEE requiring it to decommission other Legacy GOA Assets.
In such event, such subsidiaries may be forced to use available cash to cover the costs of such liabilities and obligations should they arise. In 2013, Apache sold its GOM Shelf operations and properties and its GOM operating subsidiary, GOM Shelf LLC (GOM Shelf) to Fieldwood Energy LLC (Fieldwood).
In such event, such subsidiaries may be forced to use available cash to cover the costs of such liabilities and obligations should they arise. In 2013, Apache sold its GOA Shelf operations and properties and its GOA operating subsidiary, GOM Shelf LLC (GOM Shelf) to Fieldwood Energy LLC (Fieldwood).
With respect to oil and gas operations in the Gulf of Mexico, the Bureau of Ocean Energy Management (BOEM) issued a Notice to Lessees (NTL No. 2016-N01) significantly revising the obligations of companies operating in the Gulf of Mexico to provide supplemental assurances of performance with respect to plugging, abandonment, and decommissioning obligations associated with wells, platforms, structures, and facilities located upon or used in connection with such companies’ oil and gas leases.
With respect to oil and gas operations in the Gulf of America, the Bureau of Ocean Energy Management (BOEM) issued a Notice to Lessees (NTL No. 2016-N01) significantly revising the obligations of companies operating in the Gulf of America to provide supplemental assurances of performance with respect to plugging, abandonment, and decommissioning obligations associated with wells, platforms, structures, and facilities located upon or used in connection with such companies’ oil and gas leases.
As of December 31, 2023, there were $372 million of borrowings under the USD Agreement and an aggregate £348 million in letters of credit outstanding under the GBP Agreement. As of December 31, 2023, there were no letters of credit outstanding under the USD Agreement.
As of December 31, 2023, there were $372 million of borrowings under the 2022 USD Agreement, and an aggregate £348 million in letters of credit outstanding under the GBP Agreement. As of December 31, 2023, there were no letters of credit outstanding under the 2022 USD Agreement.
While the NTL was paused in mid-2017 and is currently listed on BOEM’s website as “rescinded,” if reinstated, the NTL will likely require that the Company provide additional security to BOEM with respect to plugging, abandonment, and decommissioning obligations relating to the Company’s current ownership interests in various Gulf of Mexico leases.
While the NTL was paused in mid-2017 and is currently listed on BOEM’s website as “rescinded,” if reinstated, the NTL will likely require that the Company provide additional security to BOEM with respect to plugging, abandonment, and decommissioning obligations relating to the Company’s current ownership interests in various Gulf of America leases.
NGL production, which accounted for 98 percent of the Company’s total 2023 NGL production, is sold under contracts with prices at market indices based on Gulf Coast supply and demand conditions, less the costs for transportation and fractionation, or on a weighted-average sales price received by the purchaser.
NGL production, which accounted for 98 percent of the Company’s total 2024 NGL production, is sold under contracts with prices at market indices based on Gulf Coast supply and demand conditions, less the costs for transportation and fractionation, or on a weighted-average sales price received by the purchaser.
The Company’s 2023 effective income tax rate was primarily impacted by a deferred tax expense related to the release of a portion of its valuation allowance against U.S. deferred tax assets and the remeasurement of taxes in the U.K. as a result of the enactment of Finance Act 2023 on January 10, 2023.
During 2023, the Company’s effective income tax rate was primarily impacted by a deferred tax benefit related to the release of a portion of its valuation allowance against U.S. deferred tax assets and a deferred tax expense related to the remeasurement of taxes in the U.K. as a result of the enactment of Finance Act 2023 on January 10, 2023.
The Company’s estimated contingent obligation is primarily associated with the abandonment, removal and decommissioning of offshore wells and platforms in the Gulf of Mexico. Estimating any future obligation requires significant judgment. The Company utilizes actual abandonment and decommissioning costs incurred as the basis to estimate the expected cash outflows for future obligations.
The Company’s estimated contingent obligation is primarily associated with the abandonment, removal and decommissioning of offshore wells and platforms in the Gulf of America. Estimating any future obligation requires significant judgment. The Company utilizes actual abandonment and decommissioning costs incurred as the basis to estimate the expected cash outflows for future obligations.
Margins and facility fees are at varying rates per annum determined by reference to the senior, unsecured, non-credit enhanced, long-term indebtedness for borrowed money of APA, or if such indebtedness is not rated and the Apache guaranty is in effect, of Apache (Long-Term Debt Rating).
Margins are at varying rates per annum determined by reference to the senior, unsecured, non-credit enhanced, long-term indebtedness for borrowed money of APA, or if such indebtedness is not rated and the Apache guaranty is in effect, of Apache (Long-Term Debt Rating).
Further, the Company does not have coverage in place for a variety of other risks including Gulf of Mexico named windstorm and business interruption. Service agreements, including drilling contracts, generally indemnify the Company for injuries and death of the service provider’s employees as well as subcontractors hired by the service provider.
Further, the Company does not have coverage in place for a variety of other risks including Gulf of America named windstorm and business interruption. Service agreements, including drilling contracts, generally indemnify the Company for injuries and death of the service provider’s employees as well as subcontractors hired by the service provider.
If a purchaser of such GOM assets becomes the subject of a case or proceeding under relevant insolvency laws or otherwise fails to perform required abandonment obligations, APA’s subsidiaries could be required to perform such actions under applicable federal laws and regulations.
If a purchaser of such GOA assets becomes the subject of a case or proceeding under relevant insolvency laws or otherwise fails to perform required abandonment obligations, APA’s subsidiaries could be required to perform such actions under applicable federal laws and regulations.
Apache has guaranteed obligations under the Credit Agreement effective until the aggregate principal amount of indebtedness under senior notes and debentures outstanding under Apache’s existing indentures first is less than $1.0 billion.
Apache has guaranteed obligations under the Term Loan Credit Agreement effective until the aggregate principal amount of indebtedness under senior notes and debentures outstanding under Apache’s existing indentures first is less than $1.0 billion.
Additionally, the Company is not able to predict the effect that these changes might have on counterparties to which the Company has sold Gulf of Mexico assets or with whom the Company has joint ownership.
Additionally, the Company is not able to predict the effect that these changes might have on counterparties to which the Company has sold Gulf of America assets or with whom the Company has joint ownership.
Asset removal technologies and costs are constantly changing, as are regulatory, political, environmental, safety, and public relations considerations. 56 ARO associated with retiring tangible long-lived assets is recognized as a liability in the period in which the legal obligation is incurred and becomes determinable. The liability is offset by a corresponding increase in the underlying asset.
Asset removal technologies and costs are constantly changing, as are regulatory, political, environmental, and safety considerations. ARO associated with retiring tangible long-lived assets is recognized as a liability in the period in which the legal obligation is incurred and becomes determinable. The liability is offset by a corresponding increase in the underlying asset.
The Company’s estimates of proved reserves, proved developed reserves, and PUD reserves as of December 31, 2023, 2022, and 2021, changes in estimated proved reserves during the last three years, and estimates of future net cash flows from proved reserves are contained in Note 18—Supplemental Oil and Gas Disclosures (Unaudited) in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
The Company’s estimates of proved reserves, proved developed reserves, and PUD reserves as of December 31, 2024, 2023, and 2022, changes in estimated proved reserves during the last three years, and estimates of future net cash flows from proved reserves are contained in Note 17—Supplemental Oil and Gas Disclosures (Unaudited) in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
Numerous judgments and assumptions are inherent in the determination of future taxable income, including factors such as future operating conditions (particularly as related to prevailing oil and gas prices). 57
Numerous judgments and assumptions are inherent in the determination of future taxable income, including factors such as future operating conditions (particularly as related to prevailing oil and gas prices). 58
Commodity prices also affect industry activity and demand, thus indirectly impacting the cost of items such as rig rates, labor, boats, helicopters, materials, and supplies. Crude oil, which accounted for 50 percent of the Company’s total 2023 production, is inherently more expensive to produce than natural gas. Repair and maintenance costs are typically higher on offshore properties.
Commodity prices also affect industry activity and demand, thus indirectly impacting the cost of items such as rig rates, labor, boats, helicopters, materials, and supplies. Crude oil, which accounted for 54 percent of the Company’s total 2024 production, is inherently more expensive to produce than natural gas. Repair and maintenance costs are typically higher on offshore properties.
Interest Expense Future interest payments based on the current maturity dates of the Company’s fixed-rate notes and debentures as of December 31, 2023 are approximately $3.9 billion. 52 For additional information regarding these obligations, refer to Note 9 — Debt and Financing Costs and Note 11—Commitments and Contingencies in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
Interest Expense Future interest payments based on the current maturity dates of the Company’s fixed-rate notes and debentures as of December 31, 2024 are approximately $3.6 billion. 53 For additional information regarding these obligations, refer to Note 9—Debt and Financing Costs and Note 11—Commitments and Contingencies in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
Uncommitted Credit Facilities Each of the Company and Apache from time to time has and uses uncommitted credit and letter of credit facilities for working capital and credit support purposes. As of December 31, 2023 and 2022, there were no outstanding borrowings under these facilities.
Uncommitted Lines of Credit Each of the Company and Apache from time to time has and uses uncommitted credit and letter of credit facilities for working capital and credit support purposes. As of December 31, 2024 and 2023, there were no outstanding borrowings under these facilities.
All borrowings under the USD Agreement bear interest at one of two per annum rate options selected by the borrower, being either an alternate base rate (as defined), plus a margin ranging from 0.10% to 0.675% (Base Rate Margin), or an adjusted term SOFR rate (as defined), plus a margin varying from 1.10% to 1.675% (Applicable Margin).
All borrowings under the 2025 USD Agreement bear interest at one of two per annum rate options selected by the borrower, being either an alternate base rate (as defined), plus a margin varying from 0.0% to 0.675% (Base Rate Margin), or an adjusted term SOFR rate (as defined), plus a margin varying from 1.00% to 1.675% (Applicable Margin).
Liens on assets also are permitted if debt secured thereby does not exceed 15 percent of APA’s consolidated net tangible assets or approximately $1.9 billion as of December 31, 2023. • Negative covenants restrict APA’s ability to merge with another entity unless it is the surviving entity, a borrower’s disposition of substantially all of its assets, prohibitions on the ability of certain subsidiaries to make payments to borrowers, and guarantees by APA or certain subsidiaries of debt of non-consolidated entities in excess of the stated threshold. • Lenders may accelerate payment maturity and terminate lending and issuance commitments for nonpayment and other breaches; if a borrower or certain subsidiaries defaults on other indebtedness in excess of the stated threshold, has any unpaid, non-appealable judgment against it for payment of money in excess of the stated threshold, or has specified pension plan liabilities in excess of the stated threshold; or APA undergoes a specified change in control.
Liens on assets also are permitted if debt secured thereby does not exceed 15% of APA’s consolidated net tangible assets. • Negative covenants restrict APA’s ability to merge with another entity unless it is the surviving entity, a borrower’s disposition of substantially all of its assets, prohibitions on the ability of certain subsidiaries to make payments to borrowers, and guarantees by APA or certain subsidiaries of debt of non-consolidated entities in excess of the stated threshold. • Lenders may accelerate payment maturity and terminate lending and issuance commitments for nonpayment and other breaches; if a borrower or certain subsidiaries defaults on other indebtedness in excess of the stated threshold, has any unpaid, non-appealable judgment against it for payment of money in excess of the stated threshold, or has specified pension plan liabilities in excess of the stated threshold; or APA undergoes a specified change in control.
For information regarding estimated potential decommissioning obligations on sold properties, please refer to “Potential Decommissioning Obligations on Sold Properties” above and in Note 11—Commitments and Contingencies in the Notes to Consolidated Financial Statements in Part IV, Item 5 of this Annual Report on Form 10-K.
For information regarding estimated potential decommissioning obligations on sold properties, please refer to “Potential Decommissioning Obligations on Sold Properties” above and in Note 11—Commitments and Contingencies in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
This section of this Annual Report on Form 10-K generally discusses 2023 and 2022 items and year-to-year comparisons between 2023 and 2022.
This section of this Annual Report on Form 10-K generally discusses 2024 and 2023 items and year-to-year comparisons between 2024 and 2023.
On July 14, 2022, the Energy Profits Levy was enacted, receiving Royal Assent. Under the law, an additional levy was assessed at a 25 percent rate and is effective for the period of May 26, 2022, through December 31, 2025.
On July 14, 2022, the Energy (Oil and Gas) Profits Levy Act of 2022 (the Energy Profits Levy) was enacted, receiving Royal Assent. Under the law, an additional levy was assessed at a 25 percent rate, effective for the period of May 26, 2022 through December 31, 2025.
As a result, Apache and other current and former owners in these assets have received orders from BSEE to decommission certain of the Legacy GOM Assets included in GOM Shelf’s notifications to BSEE. Apache expects to receive similar orders on the other Legacy GOM Assets included in GOM Shelf’s notification letters.
As a result, Apache and other current and former owners in these assets have received orders from BSEE and demands from third parties to decommission certain of the Legacy GOA Assets included in GOM Shelf’s notifications to BSEE. Apache expects to receive similar orders and demands on the other Legacy GOA Assets included in GOM Shelf’s notification letters.
Discussions of 2021 items and year-to-year comparisons between 2022 and 2021 that are not included in this Annual Report on Form 10-K are incorporated by reference to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of Apache Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (filed with the SEC on February 23, 2023).
Discussions of 2022 items and year-to-year comparisons between 2023 and 2022 that are not included in this Annual Report on Form 10-K are incorporated by reference to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 of APA Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (filed with the SEC on February 22, 2024).
This facility matures in April 2027, subject to the Company’s two, one-year extension options. • The second agreement is denominated in pounds sterling (the GBP Agreement) and provides for an unsecured five-year revolving credit facility, with aggregate commitments of £1.5 billion for loans and letters of credit.
This facility matures in January 2030, subject to the Company’s two, one-year extension options. • The second agreement is denominated in pounds sterling (the 2025 GBP Agreement) and provides for an unsecured five-year revolving credit facility, with aggregate commitments of £1.5 billion for loans and letters of credit.
The Company was in compliance with the terms of each 2022 Agreement as of December 31, 2023. There is no assurance of the terms upon which potential lenders under future credit facilities will make loans or other extensions of credit available to APA or its subsidiaries or the composition of such lenders.
The Company was in compliance with the terms of the 2022 Agreements as of December 31, 2024. There is no assurance of the terms upon which potential lenders under future credit facilities will make loans or other extensions of credit available to APA or its subsidiaries or the composition of such lenders.
The majority of the Company’s cash is invested in highly liquid, investment-grade instruments with maturities of three months or less at the time of purchase. Debt As of December 31, 2023, the Company had $5.2 billion in total debt outstanding, which consisted of notes and debentures of Apache, credit facility borrowings, and finance lease obligations.
The majority of the Company’s cash is invested in highly liquid, investment-grade instruments with maturities of three months or less at the time of purchase. Debt As of December 31, 2024, the Company had $6.0 billion in total debt outstanding, which consisted of notes and debentures of Apache, credit facility borrowings, and finance lease obligations.
Under GOM Shelf’s limited liability company agreement, the proceeds of production of the Legacy GOM Assets will be used to fund the operation of GOM Shelf and the decommissioning of Legacy GOM Assets.
Under GOM Shelf’s limited liability company agreement, the proceeds of production of the Legacy GOA Assets are to be used to fund the operation of GOM Shelf and the decommissioning of Legacy GOA Assets.
The Company’s U.S. realizations averaged $1.80 per Mcf in 2023, a 66 percent decrease from an average of $5.31 per Mcf in 2022. • In Egypt, the Company’s natural gas is sold to EGPC, primarily under an industry-pricing formula, a sliding scale based on Dated Brent crude oil with a minimum of $1.50 per MMBtu and a maximum of $2.65 per MMBtu, plus an upward adjustment for liquids content.
The Company’s U.S. realizations averaged $0.71 per Mcf in 2024, a 61 percent decrease from an average of $1.80 per Mcf in 2023. • In Egypt, the Company’s natural gas is sold to EGPC, primarily under an industry-pricing formula, a sliding scale based on Dated Brent crude oil with a minimum of $1.50 per MMBtu and a maximum of $2.65 per MMBtu, plus an upward adjustment for liquids content.
The Company has divested various leases, wells, and facilities located in the Gulf of Mexico (GOM) where the purchasers typically assume all obligations to plug, abandon, and decommission the associated wells, structures, and facilities acquired.
The Company has divested various leases, wells, and facilities located in the Gulf of America (GOA) where the purchasers typically assume all obligations to plug, abandon, and decommission the associated wells, structures, and facilities acquired.
This ratio is not reflective of the price ratio between the two products. (2) Average sales volumes from the North Sea were 45,476 boe/d, 40,812 boe/d, and 44,179 boe/d for 2023 , 2022, and 2021, respectively. Sales volumes may vary from production volumes as a result of the timing of liftings.
This ratio is not reflective of the price ratio between the two products. (2) Average sales volumes from the North Sea were 33,954 boe/d, 45,476 boe/d, and 40,812 boe/d for 2024 , 2023, and 2022, respectively. Sales volumes may vary from production volumes as a result of the timing of liftings.
Purchased oil and gas sales were partially offset by associated purchase costs of $742 million and $1.8 billion for the years ended December 31, 2023 and 2022, respectively.
Purchased oil and gas sales were partially offset by associated purchase costs of $1.0 billion and $742 million for the years ended December 31, 2024 and 2023, respectively.
For more information regarding the Company’s acquisitions and divestitures and equity method interests, refer to Note 2—Acquisitions and Divestitures in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
For more information regarding the Company’s equity method interests, refer to Note 6—Equity Method Interests in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
As of December 31, 2022, there were £199 million and $17 million in letters of credit outstanding under these facilities. 50 Commercial Paper Program On December 13, 2023, the Company established a commercial paper program under which it from time to time may issue in private placements exempt from registration under the Securities Act short-term unsecured promissory notes (the CP Notes) up to a maximum aggregate face amount of $1.8 billion outstanding at any time.
As of December 31, 2023, there were £416 million and $2 million in letters of credit outstanding under these facilities. 48 Commercial Paper Program In December 2023, the Company established a commercial paper program under which it from time to time may issue in private placements exempt from registration under the Securities Act short-term unsecured promissory notes (the CP Notes) up to a maximum aggregate face amount of $1.8 billion outstanding at any time.
Consistent with the Former Facility, the 2022 Agreements do not require collateral, do not have a borrowing base, do not permit lenders to accelerate maturity or refuse to lend based on unspecified material adverse changes, and do not have borrowing restrictions or prepayment obligations in the event of a decline in credit ratings.
The 2025 Agreements do not require collateral, do not have a borrowing base, do not permit lenders to accelerate maturity or refuse to lend based on unspecified material adverse changes, and do not have borrowing restrictions or prepayment obligations in the event of a decline in credit ratings.
The Company may increase commitments up to an aggregate US$2.3 billion by adding new lenders or obtaining the consent of any increasing existing lenders.
APA may increase commitments up to an aggregate US$2.5 billion by adding new lenders or obtaining the consent of any increasing existing lenders.
For more information regarding the Company’s supplemental oil and gas disclosures, refer to Note 18—Supplemental Oil and Gas Disclosures (Unaudited) in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
Finally, these reserves are the basis for the Company’s supplemental oil and gas disclosures. For more information regarding the Company’s supplemental oil and gas disclosures, refer to Note 17—Supplemental Oil and Gas Disclosures (Unaudited) in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
Average realized crude oil prices for 2023 were down 19 percent compared to 2022, a direct result of decreasing benchmark oil prices over the past year. Crude oil prices realized in 2023 averaged $80.72 per barrel. Continued volatility in the commodity price environment reinforces the importance of the Company’s asset portfolio.
Average realized crude oil prices for 2024 were down 3 percent compared to 2023, a direct result of decreasing benchmark oil prices over the past year. Crude oil prices realized in 2024 averaged $78.08 per barrel. Continued volatility in the commodity price environment reinforces the importance of the Company’s asset portfolio.
Proceeds from Sale of Kinetik Shares The Company received $228 million and $224 million of cash proceeds from the sales of its Kinetik Shares during 2023 and 2022, respectively.
Proceeds from Sale of Kinetik Shares The Company received $428 million and $228 million of cash proceeds from the sales of its Kinetik Shares during 2024 and 2023, respectively.
For information regarding the Company’s liability for dismantlement, abandonment, and restoration costs of oil and gas properties or pension or postretirement benefit obligations, refer to Notes 8—Asset Retirement Obligation and Note 12—Retirement and Deferred Compensation Plans in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
For information regarding the Company’s liability for dismantlement, abandonment, and restoration costs of oil and gas properties, refer to Note 8—Asset Retirement Obligation in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
Apache Corporation , Cause No. 2023-38238 in the 281 st Judicial District Court, Harris County Texas. Insurers are seeking to prevent Apache from drawing on the Bonds and Letters of Credit and further allege that they are discharged from their reimbursement obligations related to decommissioning costs and are entitled to other relief.
Apache Corporation , Cause No. 2023-38238 in the 281 st Judicial District Court, Harris County Texas. The sureties sought to prevent Apache from drawing on the $148 million in Bonds and $350 million in Letters of Credit and further alleged that they are discharged from their reimbursement obligations related to decommissioning costs and are entitled to other relief.
Changes in significant assumptions impacting Apache’s estimated liability, including expected decommissioning rig spread rates, lift boat rates, and planned abandonment logistics could result in a liability in excess of the amount accrued.
Changes in significant assumptions impacting Apache’s estimated liability, including expected well decommissioning spread rates, derrick barge rates, and planned abandonment logistics, could result in a liability in excess of the amount accrued.
The Company intends to use net proceeds of the CP Notes for general corporate purposes. Payment of the CP Notes has been unconditionally guaranteed on an unsecured basis by Apache, such guarantee effective until the first time that the aggregate principal amount of indebtedness under senior notes and debentures outstanding under Apache’s existing indentures is less than US$1.0 billion.
Payment of the CP Notes has been unconditionally guaranteed on an unsecured basis by Apache, such guarantee effective until the first time that the aggregate principal amount of indebtedness under senior notes and debentures outstanding under Apache’s existing indentures is less than US$1.0 billion.
Proceeds from Asset Divestitures The Company received $29 million and $778 million in proceeds from the divestiture of certain non-core assets during the years ended December 31, 2023 and 2022, respectively.
Proceeds from Asset Divestitures The Company received $1.6 billion and $29 million in proceeds from the divestiture of certain non-core assets during the years ended December 31, 2024 and 2023, respectively.
Payments on Fixed-Rate Debt During 2023, Apache purchased in the open market and canceled senior notes issued under its indentures in an aggregate principal amount of $74 million for an aggregate purchase price of $65 million in cash, including accrued interest and broker fees, reflecting a discount to par of an aggregate $10 million.
During 2023, Apache purchased in the open market and canceled senior notes issued under its indentures in an aggregate principal amount of $74 million for an aggregate purchase price of $65 million in cash, including accrued interest and broker fees, reflecting a discount to par of an aggregate $10 million. The Company recognized a $9 million gain on these repurchases.
Payments on Revolving Credit Facilities, Net As of December 31, 2023, outstanding borrowings under the Company’s U.S. dollar denominated syndicated credit facility were $372 million, a decrease of $194 million from December 31, 2022 as operating cash flows generated in 2023 were used to repay facility borrowings.
Payments on Commercial Paper and Revolving Credit Facilities, Net As of December 31, 2024, outstanding borrowings under the Company’s commercial paper and U.S. dollar denominated syndicated credit facility were $333 million, a decrease of $40 million from December 31, 2023 as operating cash flows generated in 2024 were used to repay facility borrowings.
By letter dated April 5, 2022, replacing two prior letters dated September 8, 2021 and February 22, 2022, and by subsequent letter dated March 1, 2023, GOM Shelf notified the Bureau of Safety and Environmental Enforcement (BSEE) that it was unable to fund the decommissioning obligations that it is currently obligated to perform on certain of the Legacy GOM Assets.
By letter dated April 5, 2022 (replacing two earlier letters) and by subsequent letter dated March 1, 2023, GOM Shelf notified the Bureau of Safety and Environmental Enforcement (BSEE) that it was unable to fund the decommissioning obligations that it was obligated to perform on certain of the Legacy GOA Assets.
In addition, after such sources have been exhausted, Apache has agreed to provide a standby loan to GOM Shelf of up to $400 million to perform decommissioning (Standby Loan Agreement), with such standby loan secured by a first and prior lien on the Legacy GOM Assets.
In addition, after such sources have been exhausted, Apache agreed upon 54 resolution of GOM Shelf’s second bankruptcy to provide a standby loan to GOM Shelf of up to $400 million to perform decommissioning, with such standby loan secured by a first and prior lien on the Legacy GOA Assets.
Significant changes in commodity prices impact the Company’s revenues, earnings, and cash flows. These changes potentially impact the Company’s liquidity if costs do not trend with sustained decreases in commodity prices. Historically, costs have trended with commodity prices, albeit on a lag.
Significant changes in commodity prices impact the Company’s revenues, earnings, and cash flows. These changes potentially impact the Company’s liquidity if costs do not trend with sustained decreases in commodity prices. Historically, costs have trended with commodity prices, albeit on a lag. Sales volumes also impact cash flows; however, they have a less volatile impact in the short term.
As of December 31, 2023, the Company had contractual obligations totaling $1.7 billion, of which $956 million is related to U.S. firm transportation contracts, $614 million is related to the merged concession agreement with the EGPC, and $135 million is related to other items.
As of December 31, 2024, the Company had contractual obligations totaling $1.1 billion, of which $963 million is related to U.S. firm transportation contracts, $45 million is related to the merged concession agreement with the EGPC, and $110 million is related to other items.
Fergus entry point of the national grid on a National Balancing Point index price basis. The Company’s North Sea operations averaged $13.02 per Mcf in 2023, a 44 percent decrease from an average of $23.36 per Mcf in 2022. 40 NGL Prices The Company’s U.S.
Fergus entry point of the national grid on a National Balancing Point index price basis. The Company’s North Sea operations averaged $10.84 per Mcf in 2024, a 17 percent decrease from an average of $13.02 per Mcf in 2023. 39 NGL Prices The Company’s U.S.
For additional information, refer to Part I, Items 1 and 2—Business and Properties and Part I, Item 1A—Risk Factors of this Annual Report on Form 10-K. 46 Sources and Uses of Cash The following table presents the sources and uses of the Company’s cash and cash equivalents for the years presented: For the Year Ended December 31, 2023 2022 2021 (In millions) Sources of Cash and Cash Equivalents: Net cash provided by operating activities $ 3,129 $ 4,943 $ 3,496 Proceeds from revolving credit facilities, net — 24 392 Proceeds from asset divestitures 29 778 256 Proceeds from sale of Kinetik shares 228 224 — Total Sources of Cash and Cash Equivalents 3,386 5,969 4,144 Uses of Cash and Cash Equivalents: Additions to upstream oil and gas property (1) 2,313 1,770 1,101 Acquisition of Delaware Basin properties 24 591 — Leasehold and property acquisitions 20 37 9 Payments on revolving credit facilities, net 194 — — Payments on Apache fixed-rate debt 65 1,493 1,795 Dividends paid to APA common stockholders 308 207 52 Distributions to noncontrolling interest – Egypt 238 362 279 Treasury stock activity, net 329 1,423 847 Deconsolidation of Altus cash and cash equivalents — 143 — Other, net 53 — 21 Total Uses of Cash and Cash Equivalents 3,544 6,026 4,104 Increase (decrease) in cash and cash equivalents $ (158) $ (57) $ 40 (1) The table presents capital expenditures on a cash basis; therefore, the amounts may differ from those discussed elsewhere in this Annual Report on Form 10-K, which include accruals.
For additional information, refer to Part I, Items 1 and 2—Business and Properties and Part I, Item 1A—Risk Factors of this Annual Report on Form 10-K. 45 Sources and Uses of Cash The following table presents the sources and uses of the Company’s cash and cash equivalents for the years presented: For the Year Ended December 31, 2024 2023 2022 (In millions) Sources of Cash and Cash Equivalents: Net cash provided by operating activities $ 3,620 $ 3,129 $ 4,943 Proceeds from commercial paper and revolving credit facilities, net — — 24 Proceeds from asset divestitures 1,609 29 778 Proceeds from term loan facility 1,500 — — Proceeds from sale of Kinetik shares 428 228 224 Total Sources of Cash and Cash Equivalents 7,157 3,386 5,969 Uses of Cash and Cash Equivalents: Additions to oil and gas property (1) 2,851 2,313 1,770 Acquisition of Delaware Basin properties — 24 591 Leasehold and property acquisitions 60 20 37 Payments on term loan facility 600 — — Payments on commercial paper and revolving credit facilities, net 40 194 — Payments on Callon Credit Agreement 472 — — Payments on fixed-rate debt 1,641 65 1,493 Dividends paid to APA common stockholders 353 308 207 Distributions to noncontrolling interest – Egypt 268 238 362 Treasury stock activity, net 246 329 1,423 Deconsolidation of Altus cash and cash equivalents — — 143 Other, net 88 53 — Total Uses of Cash and Cash Equivalents 6,619 3,544 6,026 Increase (decrease) in cash and cash equivalents $ 538 $ (158) $ (57) (1) The table presents capital expenditures on a cash basis; therefore, the amounts may differ from those discussed elsewhere in this Annual Report on Form 10-K, which include accruals.
Reserves Estimates Proved oil and gas reserves are the estimated quantities of natural gas, crude oil, condensate, and NGLs that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing conditions, operating conditions, and government regulations. 55 Despite judgment involved in these engineering estimates, the Company’s reserves are used throughout its financial statements.
Reserves Estimates Proved oil and gas reserves are the estimated quantities of natural gas, crude oil, condensate, and NGLs that geological and engineering data demonstrate with reasonable certainty to be economically recoverable in future years from known reservoirs under existing conditions, operating conditions, and government regulations.
Uncertainties in the global supply chain and financial markets, including the impact of inflation and rising interest rates, and actions taken by foreign oil and gas producing nations, including OPEC+, continue to impact oil supply and demand and contribute to commodity price volatility.
Uncertainties in the global supply chain and financial markets, including the impact of ongoing international conflicts, inflation, trade disputes, and actions taken by foreign oil and gas producing nations, including OPEC+, impact oil supply and demand and contribute to commodity price volatility.
As of December 31, 2023, the Company had net undiscounted minimum commitments of $346 million and $41 million for operating and finance leases, respectively.
As of December 31, 2024, the Company had net undiscounted minimum commitments of $467 million and $37 million for operating and finance leases, respectively.
For the Year Ended December 31, 2023 2022 2021 (In millions) Lease operating expenses $ 1,436 $ 1,444 $ 1,241 Gathering, processing, and transmission 334 367 264 Purchased oil and gas costs 742 1,776 1,580 Taxes other than income 207 268 204 Exploration 195 305 155 General and administrative 351 483 376 Transaction, reorganization, and separation 15 26 22 Depreciation, depletion, and amortization: Oil and gas property and equipment 1,500 1,186 1,255 Gathering, processing, and transmission assets 6 15 64 Other assets 34 32 41 Asset retirement obligation accretion 116 117 113 Impairments 61 — 208 Financing costs, net 312 379 514 Lease Operating Expenses (LOE) LOE includes several key components, such as direct operating costs, repairs and maintenance, and workover costs.
For the Year Ended December 31, 2024 2023 2022 (In millions) Lease operating expenses $ 1,690 $ 1,436 $ 1,444 Gathering, processing, and transmission 432 334 367 Purchased oil and gas costs 1,047 742 1,776 Taxes other than income 270 207 268 Exploration 313 195 305 General and administrative 372 351 483 Transaction, reorganization, and separation 168 15 26 Depreciation, depletion, and amortization: Oil and gas property and equipment 2,235 1,500 1,186 Gathering, processing, and transmission assets 6 6 15 Other assets 25 34 32 Asset retirement obligation accretion 148 116 117 Impairments 1,129 61 — Financing costs, net 367 312 379 Lease Operating Expenses (LOE) LOE includes several key components, such as direct operating costs, repairs and maintenance, and workover costs.
For example, since the Company uses the units-of-production method to amortize its oil and gas properties, the quantity of reserves could significantly impact DD&A expense. A material adverse change in the estimated volumes of reserves could result in property impairments. Finally, these reserves are the basis for the Company’s supplemental oil and gas disclosures.
Despite judgment involved in these engineering estimates, the Company’s reserves are used throughout its financial statements. For example, since the Company uses the units-of-production method to amortize its oil and gas properties, the quantity of reserves could significantly impact DD&A expense. A material adverse change in the estimated volumes of reserves could result in property impairments.
These fields, located in water depths between 100 and 1,000 meters, are expected to be produced through a system of subsea wells connected to a floating production, storage and offloading unit located 150 kilometers off the Suriname coast, with an oil production capacity of 200,000 b/d.
These fields, located in water depths between 100 and 1,000 meters, will be produced through a system of subsea wells connected to a floating production, storage and offloading (FPSO) unit located 150 km off the Suriname coast, with an oil production capacity of 220,000 barrels per day.
The Company averaged five drilling rigs in the U.S. during the year, including three rigs in the Southern Midland Basin and two rigs in the Delaware Basin, and drilled and brought online 82 operated wells in 2023.
The Company averaged nine drilling rigs in the U.S. during the year, including five rigs in the Southern Midland Basin and four rigs in the Delaware Basin, and drilled and brought online 159 operated wells in 2024.
As of December 31, 2023, current debt included $2 million of finance lease obligations.
As of December 31, 2024, current debt included $53 million of finance lease obligations.
As of December 31, 2023, there were £416 million and $2 million in letters of credit outstanding under these facilities.
As of December 31, 2024, there were £640 million and $11 million in letters of credit outstanding under these facilities.
Crude Oil Revenues Crude oil revenues for 2023 totaled $6.0 billion, an $838 million decrease from the 2022 total of $6.8 billion. A 19 percent decrease in average realized prices reduced 2023 revenues by $1.3 billion compared to 2022, while 8 percent higher average daily production increased revenues by $430 million.
Crude Oil Revenues Crude oil revenues for 2024 totaled $7.0 billion, a $969 million increase from the 2023 total of $6.0 billion. A 20 percent higher average daily production increased 2024 revenues by $1.2 billion compared to 2023, while a 3 percent decrease in average realized prices reduced revenues by $196 million.
Most recently, the Company has completed a series of acquisitions and divestitures designed to enhance the Company’s portfolio and monetize nonstrategic assets in order to allocate resources to more impactful exploration and development opportunities.
A key component of this strategy is to continuously review and optimize APA’s portfolio of assets in response to these changes. Most recently, the Company has completed a series of acquisitions and divestitures designed to enhance the Company’s portfolio and monetize nonstrategic assets in order to allocate resources to more impactful exploration and development opportunities.
Treasury Stock Activity, Net During 2023, the Company repurchased 8.7 million shares at an average price of $37.81 per share totaling $329 million, and as of December 31, 2023, the Company had remaining authorization to repurchase 43.9 million shares.
Treasury Stock Activity, Net During 2024, the Company repurchased 9.2 million shares at an average price of $26.83 per share totaling $246 million, and as of December 31, 2024, the Company had remaining authorization to repurchase 34.8 million shares.
(3) Gross oil, natural gas, and NGL production in Egypt were as follows: 2023 2022 2021 Oil (b/d) 141,985 137,260 134,711 Natural Gas (Mcf/d) 500,080 555,562 586,663 NGL (b/d) — 297 854 (4) Includes net production volumes per day attributable to a noncontrolling interest in Egypt of: 2023 2022 2021 Oil (b/d) 29,739 28,200 23,504 Natural Gas (Mcf/d) 108,703 118,074 88,409 NGL (b/d) — 65 177 (5) Production volumes per day in the Company’s Alpine High field were as follows: 2023 2022 2021 Oil (b/d) 573 777 1,485 Natural Gas (Mcf/d) 174,454 192,253 258,096 NGL (b/d) 16,482 18,362 22,950 NM — Not Meaningful 39 Pricing The following table presents pricing information by country: For the Year Ended December 31, 2023 Increase (Decrease) 2022 Increase (Decrease) 2021 Average Oil Price - Per barrel: United States $ 77.84 (19)% $ 95.68 42% $ 67.37 Egypt 82.47 (19)% 101.25 44% 70.33 North Sea 82.75 (18)% 100.87 45% 69.67 Total 80.72 (19)% 99.11 44% 68.97 Average Natural Gas Price - Per Mcf: United States $ 1.80 (66)% $ 5.31 35% $ 3.92 Egypt 2.91 2% 2.85 1% 2.81 North Sea 13.02 (44)% 23.36 80% 12.96 Total 2.91 (42)% 4.98 25% 3.99 Average NGL Price - Per barrel: United States $ 20.85 (38)% $ 33.41 20% $ 27.85 Egypt — NM 76.80 57% 48.84 North Sea 47.77 (29)% 67.07 24% 54.30 Total 21.54 (38)% 34.51 21% 28.48 NM — Not Meaningful Crude Oil Prices A substantial portion of the Company’s crude oil production is sold at prevailing market prices, which fluctuate in response to many factors that are outside of the Company’s control.
(3) Gross oil, natural gas, and NGL production in Egypt were as follows: 2024 2023 2022 Oil (b/d) 137,150 141,985 137,260 Natural Gas (Mcf/d) 443,551 500,080 555,562 NGL (b/d) — — 297 (4) Includes net production volumes per day attributable to a noncontrolling interest in Egypt of: 2024 2023 2022 Oil (b/d) 29,698 29,739 28,200 Natural Gas (Mcf/d) 97,078 108,703 118,074 NGL (b/d) — — 65 NM — Not Meaningful 38 Pricing The following table presents pricing information by country: For the Year Ended December 31, 2024 Increase (Decrease) 2023 Increase (Decrease) 2022 Average Oil Price - Per barrel: United States $ 75.92 (2)% $ 77.84 (19)% $ 95.68 Egypt 80.41 (2)% 82.47 (19)% 101.25 North Sea 80.74 (2)% 82.75 (18)% 100.87 Total 78.08 (3)% 80.72 (19)% 99.11 Average Natural Gas Price - Per Mcf: United States $ 0.71 (61)% $ 1.80 (66)% $ 5.31 Egypt 2.94 1% 2.91 2% 2.85 North Sea 10.84 (17)% 13.02 (44)% 23.36 Total 1.97 (32)% 2.91 (42)% 4.98 Average NGL Price - Per barrel: United States $ 22.83 9% $ 20.85 (38)% $ 33.41 Egypt — NM — NM 76.80 North Sea 47.59 —% 47.77 (29)% 67.07 Total 23.37 8% 21.54 (38)% 34.51 NM — Not Meaningful Crude Oil Prices A substantial portion of the Company’s crude oil production is sold at prevailing market prices, which fluctuate in response to many factors that are outside of the Company’s control.
As of December 31, 2022, there were $566 million of borrowings and a $20 million letter of credit outstanding under the USD Agreement, and an aggregate £652 million in letters of credit outstanding under the GBP Agreement.
As of December 31, 2024, there were $10 million of borrowings under the 2022 USD Agreement and an aggregate £303 million in letters of credit outstanding under the GBP Agreement. As of December 31, 2024, there were no letters of credit outstanding under the USD Agreement.
The redemption was financed by borrowing under Apache’s former revolving credit facility. The Company expects that Apache will continue to reduce debt outstanding under its indentures from time to time. Dividends Paid to APA Common Stockholders The Company paid $308 million and $207 million during the years ended December 31, 2023 and 2022, respectively, for dividends on its common stock.
The Company may, and expects that Apache will continue to, reduce debt outstanding under its indentures from time to time. Dividends Paid to APA Common Stockholders The Company paid $353 million and $308 million during the years ended December 31, 2024 and 2023, respectively, for dividends on its common stock.
During 2022, the Company repurchased 36.2 million shares at an average price of $39.34 per share totaling $1.4 billion. 48 Liquidity The following table presents a summary of the Company’s key financial indicators as of December 31: 2023 2022 (In millions) Cash and cash equivalents $ 87 $ 245 Total debt – APA and Apache 5,188 5,453 Total equity 3,691 1,345 Available committed borrowing capacity under syndicated credit facilities 2,894 2,238 Cash and Cash Equivalents As of December 31, 2023, the Company had $87 million in cash and cash equivalents.
During 2023, the Company repurchased 8.7 million shares at an average price of $37.81 per share totaling $329 million. 47 Liquidity The following table presents a summary of the Company’s key financial indicators as of December 31: 2024 2023 (In millions) Cash and cash equivalents $ 625 $ 87 Total debt – APA and Apache 6,044 5,188 Total equity 6,362 3,691 Available committed borrowing capacity under syndicated credit facilities 2,966 2,894 Cash and Cash Equivalents As of December 31, 2024, the Company had $625 million in cash and cash equivalents.
Average daily production in 2023 was 203 Mb/d, with prices averaging $80.72 per barrel. Crude oil sales accounted for 81 percent of the Company’s 2023 oil and gas production revenues and 50 percent of its worldwide production.
Average daily production in 2024 was 244 Mb/d, with prices averaging $78.08 per barrel. Crude oil sales accounted for 85 percent of the Company’s 2024 oil and gas production revenues and 54 percent of its worldwide production.
Average daily production in 2023 was 828 MMcf/d, with prices averaging $2.91 per Mcf. Natural gas sales accounted for 12 percent of the Company’s 2023 oil and gas production revenues and 34 percent of its worldwide production.
Average daily production in 2024 was 814 MMcf/d, with prices averaging $1.97 per Mcf. Natural gas sales accounted for 7 percent of the Company’s 2024 oil and gas production revenues and 30 percent of its worldwide production.
For additional information refer to Note 14—Capital Stock in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K. Transaction, Reorganization, and Separation (TRS) Costs TRS costs decreased $11 million compared to 2022.
For additional information refer to Note 13—Capital Stock in the Notes to Consolidated Financial Statements set forth in Part IV, Item 15 of this Annual Report on Form 10-K.
On July 20, 2023, the 281 st Judicial District Court denied the Insurers’ request for a temporary injunction. On July 26, 2023, Apache removed the suit to the United States Bankruptcy Court for the Southern District of Texas (Houston Division) which subsequently held that the sureties’ state court lawsuit violated the terms of the Bankruptcy Confirmation Order and is void.
On July 20, 2023, the 281 st Judicial District Court denied the Insurers’ request for a temporary injunction. On July 26, 2023, Apache removed the suit to the United States Bankruptcy Court for the Southern District of Texas (Houston Division).
As of December 31, 2023, Apache estimates that its potential liability to fund the remaining decommissioning of Legacy GOM Assets it may be ordered to perform or fund ranges from $824 million to $1.2 billion on an undiscounted basis. Management does not believe any specific estimate within this range is a better estimate than any other.
As of December 31, 2024, Apache estimates that its potential liability to fund the remaining decommissioning of Legacy GOA Assets and assets previously sold to other operators ranges from $1.0 billion to $1.4 billion on an undiscounted basis. Management does not believe any specific estimate within this range is a better estimate than any other.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeAlthough near-term changes in interest rates may affect the fair value of fixed-rate debt, such changes do not expose the Company to the risk of earnings or cash flow loss associated with that debt. The Company is also exposed to interest rate risk related to its interest-bearing cash and cash equivalents balances and amounts outstanding under its syndicated credit facilities.
Biggest changeAlthough near-term changes in interest rates may affect the fair value of fixed-rate debt, such changes do not expose the Company to the risk of earnings or cash flow loss associated with that debt.
The Company continually monitors its market risk exposure, as oil and gas supply and demand are impacted by uncertainties in the commodity and financial markets associated with the conflict in Ukraine, the recent conflict in Israel and Gaza, actions taken by foreign oil and gas producing nations, including OPEC+, global inflation, and other current events.
The Company continually monitors its market risk exposure, as oil and gas supply and demand are impacted by uncertainties in the commodity and financial markets associated with the conflict in Ukraine, the conflict in Israel and Gaza, actions taken by foreign oil and gas producing nations, including OPEC+, global inflation, and other current events.
Foreign currency gains and losses are included as either a component of “Other” under “Revenues and Other” or, as is the case when the Company re-measures its foreign tax liabilities, as a component of the Company’s provision for income tax expense on the statement of consolidated operations.
Foreign currency gains and losses are included as either a component of “Other, net” under “Revenues and Other” or, as is the case when the Company re-measures its foreign tax liabilities, as a component of the Company’s provision for income tax expense on the statement of consolidated operations.
Changes in the interest rate applicable to short-term investments and credit facility borrowings are expected to have an immaterial impact on earnings and cash flows but could impact interest costs associated with future debt issuances or any future borrowings. 58 Foreign Currency Exchange Rate Risk The Company’s cash activities relating to certain international operations is based on the U.S. dollar equivalent of cash flows measured in foreign currencies.
Changes in the interest rate applicable to short-term investments, term loan facility, commercial paper program, and credit facility borrowings are expected to have an immaterial impact on earnings and cash flows but could impact interest costs associated with future debt issuances or any future borrowings. 59 Foreign Currency Exchange Rate Risk The Company’s cash activities relating to certain international operations is based on the U.S. dollar equivalent of cash flows measured in foreign currencies.
Interest Rate Risk At December 31, 2023, the Company had $4.8 billion, net, in outstanding notes and debentures, all of which was fixed-rate debt, with a weighted average interest rate of 5.34 percent.
Interest Rate Risk As of December 31, 2024, the Company had $4.8 billion, net, in outstanding notes and debentures, all of which was fixed-rate debt, with a weighted average interest rate of 5.34 percent.
Based on average daily production for 2023, a $1.00 per barrel change in the weighted average realized oil price would have increased or decreased revenues for the year by approximately $74 million, a $0.10 per Mcf change in the weighted average realized natural gas price would have increased or decreased revenues for the year by approximately $30 million, and a $1.00 per barrel change in the weighted average realized NGL price would have increased or decreased revenues for the year by approximately $23 million.
Based on average daily production for 2024, a $1.00 per barrel change in the weighted average realized oil price would have increased or decreased revenues for the year by approximately $89 million, a $0.10 per Mcf change in the weighted average realized natural gas price would have increased or decreased revenues for the year by approximately $30 million, and a $1.00 per barrel change in the weighted average realized NGL price would have increased or decreased revenues for the year by approximately $27 million.
Foreign currency net gain or loss of $3 million would result from a 10 percent weakening or strengthening, respectively, in the British pound as of December 31, 2023.
Foreign currency net gain or loss of $5 million would result from a 10 percent weakening or strengthening, respectively, in the British pound as of December 31, 2024.
As of December 31, 2023, the Company had approximately $87 million in cash and cash equivalents, approximately 85 percent of which was invested in money market funds and short-term investments with major financial institutions. As of December 31, 2023, there were $372 million of borrowings outstanding under the Company’s syndicated revolving credit facilities.
As of December 31, 2024, the Company had approximately $625 million in cash and cash equivalents, approximately 98 percent of which was invested in money market funds and short-term investments with major financial institutions. As of December 31, 2024, there were $1.2 billion of borrowings outstanding under the Company’s term loan facility, commercial paper program, and syndicated revolving credit facilities.
The Company’s average crude oil price realizations decreased 19 percent to $80.72 per barrel in 2023 from $99.11 per barrel in 2022. The Company’s average natural gas price realizations decreased 42 percent to $2.91 per Mcf in 2023 from $4.98 per Mcf in 2022.
The Company’s average crude oil price realizations decreased 3 percent to $78.08 per barrel in 2024 from $80.72 per barrel in 2023. The Company’s average natural gas price realizations decreased 32 percent to $1.97 per Mcf in 2024 from $2.91 per Mcf in 2023.
The Company’s average NGL price realizations decreased 38 percent to $21.54 per barrel in 2023 from $34.51 per barrel in 2022.
The Company’s average NGL price realizations increased 8 percent to $23.37 per barrel in 2024 from $21.54 per barrel in 2023.
The Company does not hold or issue derivative instruments for trading purposes. As of December 31, 2023, the Company had open natural gas derivatives not designated as cash flow hedges in an asset position with a fair value of $6 million.
The Company does not hold or issue derivative instruments for trading purposes. As of December 31, 2024, the Company had no open commodity derivative positions.
Removed
A 10 percent increase in natural gas prices would decrease the asset by approximately $1 million, while a 10 percent decrease in prices would increase the asset by approximately $1 million. These fair value changes assume volatility based on prevailing market parameters as of December 31, 2023.
Added
The Company is also exposed to interest rate risk related to its interest-bearing cash and cash equivalents balances and amounts outstanding under its term loan facility, commercial paper program, and syndicated credit facilities.

Other APA 10-K year-over-year comparisons