Apache Corporation (APA) 2016年年度報告「NYSE」.pdf

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1、APACHE CORPFORM 10-K(Annual Report)Filed 02/24/17 for the Period Ending 12/31/16 Address2000 POST OAK BLVDSTE 100HOUSTON,TX 77056-4400Telephone7132966000CIK0000006769SymbolAPASIC Code1311-Crude Petroleum and Natural GasIndustryOil&Gas Exploration and ProductionSectorEnergyFiscal Year12/31http:/www.e

2、dgar- Copyright 2017,EDGAR Online,Inc.All Rights Reserved.Distribution and use of this document restricted under EDGAR Online,Inc.Terms of Use.UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-K(Mark One)XANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHAN

3、GE ACT OF 1934For the fiscal year ended December 31,2016or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period from to Commission file number 1-4300APACHE CORPORATION(Exact name of registrant as specified in its charter)Delaware 41-0747868

4、(State or other jurisdiction of incorporation or organization)(I.R.S.Employer Identification No.)One Post Oak Central,2000 Post Oak Boulevard,Suite 100,Houston,Texas 77056-4400(Address of principal executive offices)Registrants telephone number,including area code(713)296-6000Securities registered p

5、ursuant to Section 12(b)of the Act:Title of each class Name of each exchangeon which registeredCommon Stock,$0.625 par value New York Stock Exchange,Chicago Stock Exchangeand NASDAQ Global Select MarketApache Finance Canada Corporation7.75%Notes Due 2029Irrevocably and UnconditionallyGuaranteed by A

6、pache Corporation New York Stock ExchangeSecurities registered pursuant to Section 12(g)of the Act:Common Stock,$0.625 par valueIndicate by check mark if the registrant is a well-known seasoned issuer,as defined in Rule 405 of the Securities Act.Yes X No Indicate by check mark if the registrant is n

7、ot required to file reports pursuant to Section 13 or Section 15(d)of the Act.Yes No XIndicate by check mark whether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding12 months(or for such shorter period that

8、the registrant was required to file such reports),and(2)has been subject to such filing requirements for the past 90 days.Yes X No Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website,if any,every Interactive Data File required to be submitte

9、d andposted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period that the registrant was required to submitand post such files).Yes X No Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-

10、K is not contained herein,and will not be contained,to the best of registrantsknowledge,in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.XIndicate by check mark whether the registrant is a large accelerated filer

11、,an accelerated filer,a non-accelerated filer,or a smaller reporting company.See the definitions of“large accelerated filer,”“accelerated filer”and“smaller reporting company”in Rule 12b-2 of the Exchange Act.Large accelerated filer X Accelerated filer Non-accelerated filer Smaller reporting company

12、Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Exchange Act):Yes No XAggregate market value of the voting and non-voting common equity held by non-affiliates of registrant as of June 30,2016$21,118,858,691Number of shares of registrants common stock

13、outstanding as of January 31,2017379,687,129Documents Incorporated By ReferencePortions of registrants proxy statement relating to registrants 2017 annual meeting of stockholders have been incorporated by reference in Part II and Part III of this annualreport on Form 10-K.TABLE OF CONTENTSDESCRIPTIO

14、N Item Page PART I 1.BUSINESS11A.RISK FACTORS141B.UNRESOLVED STAFF COMMENTS232.PROPERTIES13.LEGAL PROCEEDINGS234.MINE SAFETY DISCLOSURES23 PART II 5.MARKET FOR THE REGISTRANTS COMMON EQUITY,RELATED STOCKHOLDER MATTERS,AND ISSUERPURCHASES OF EQUITY SECURITIES246.SELECTED FINANCIAL DATA267.MANAGEMENTS

15、 DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS277A.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK478.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA489.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE489A.CONTROLS AND PROCEDURES4

16、89B.OTHER INFORMATION48 PART III 10.DIRECTORS,EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE4911.EXECUTIVE COMPENSATION4912.SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATEDSTOCKHOLDER MATTERS4913.CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS,AND DIRECTOR INDEPENDENCE4914.PRIN

17、CIPAL ACCOUNTING FEES AND SERVICES49 PART IV 15.EXHIBITS,FINANCIAL STATEMENT SCHEDULES5016.FORM 10-K SUMMARY50 iFORWARD-LOOKING STATEMENTS AND RISKThis Annual Report on Form 10-K includes“forward-looking statements”within the meaning of Section 27A of the Securities Act of 1933,as amended,andSection

18、 21E of the Securities Exchange Act of 1934,as amended.All statements other than statements of historical facts included or incorporated by reference inthis report,including,without limitation,statements regarding our future financial position,business strategy,budgets,projected revenues,projected c

19、osts andplans,and objectives of management for future operations,are forward-looking statements.Such forward-looking statements are based on our examination ofhistorical operating trends,the information that was used to prepare our estimate of proved reserves as of December 31,2016,and other data in

20、 our possession oravailable from third parties.In addition,forward-looking statements generally can be identified by the use of forward-looking terminology such as“may,”“will,”“could,”“expect,”“intend,”“project,”“estimate,”“anticipate,”“plan,”“believe,”or“continue”or similar terminology.Although we

21、believe that the expectationsreflected in such forward-looking statements are reasonable,we can give no assurance that such expectations will prove to have been correct.Important factors thatcould cause actual results to differ materially from our expectations include,but are not limited to,our assu

22、mptions about:the market prices of oil,natural gas,NGLs,and other products or services;our commodity hedging arrangements;the supply and demand for oil,natural gas,NGLs,and other products or services;production and reserve levels;drilling risks;economic and competitive conditions;the availability of

23、 capital resources;capital expenditure and other contractual obligations;currency exchange rates;weather conditions;inflation rates;the availability of goods and services;legislative,regulatory,or policy changes;terrorism or cyber attacks;occurrence of property acquisitions or divestitures;the integ

24、ration of acquisitions;the securities or capital markets and related risks such as general credit,liquidity,market,and interest-rate risks;andother factors disclosed under Items 1 and 2Business and PropertiesEstimated Proved Reserves and Future Net Cash Flows,Item 1ARisk Factors,Item 7Managements Di

25、scussion and Analysis of Financial Condition and Results of Operations,Item 7AQuantitative and Qualitative DisclosuresAbout Market Risk and elsewhere in this Form 10-K.All subsequent written and oral forward-looking statements attributable to the Company,or persons acting on its behalf,are expressly

26、 qualified in theirentirety by the cautionary statements.Except as required by law,we assume no duty to update or revise our forward-looking statements based on changes ininternal estimates or expectations or otherwise.iiDEFINITIONSAll defined terms under Rule 4-10(a)of Regulation S-X shall have the

27、ir statutorily prescribed meanings when used in this report.As used in this document:“3-D”means three-dimensional.“4-D”means four-dimensional.“b/d”means barrels of oil or natural gas liquids per day.“bbl”or“bbls”means barrel or barrels of oil or natural gas liquids.“bcf”means billion cubic feet of n

28、atural gas.“boe”means barrel of oil equivalent,determined by using the ratio of one barrel of oil or NGLs to six Mcf of gas.“boe/d”means boe per day.“Btu”means a British thermal unit,a measure of heating value.“Liquids”means oil and natural gas liquids.“LNG”means liquefied natural gas.“Mb/d”means Mb

29、bls per day.“Mbbls”means thousand barrels of oil or natural gas liquids.“Mboe”means thousand boe.“Mboe/d”means Mboe per day.“Mcf”means thousand cubic feet of natural gas.“Mcf/d”means Mcf per day.“MMbbls”means million barrels of oil or natural gas liquids.“MMboe”means million boe.“MMBtu”means million

30、 Btu.“MMBtu/d”means MMBtu per day.“MMcf”means million cubic feet of natural gas.“MMcf/d”means MMcf per day.“NGL”or“NGLs”means natural gas liquids,which are expressed in barrels.“NYMEX”means New York Mercantile Exchange.“oil”includes crude oil and condensate.“PUD”means proved undeveloped.“SEC”means U

31、nited States Securities and Exchange Commission.“Tcf”means trillion cubic feet of natural gas.“U.K.”means United Kingdom.“U.S.”means United States.With respect to information relating to our working interest in wells or acreage,“net”oil and gas wells or acreage is determined by multiplying gross wel

32、ls oracreage by our working interest therein.Unless otherwise specified,all references to wells and acres are gross.iiiPART IITEMS 1 and 2.BUSINESS AND PROPERTIESGeneralApache Corporation,a Delaware corporation formed in 1954,is an independent energy company that explores for,develops,and produces n

33、atural gas,crudeoil,and natural gas liquids.Apache currently has exploration and production operations in four geographic areas:the United States(U.S.),Canada,Egypt,andoffshore the United Kingdom(U.K.)in the North Sea.Apache also has exploration interests in Suriname that may,over time,result in a r

34、eportable discovery anddevelopment opportunity.Our common stock,par value$0.625 per share,has been listed on the New York Stock Exchange(NYSE)since 1969,on the Chicago Stock Exchange(CHX)since 1960,and on the NASDAQ Global Select Market(NASDAQ)since 2004.On May 31,2016,we filed certifications of our

35、 compliance with the listingstandards of the NYSE and the NASDAQ,including our principal executive officers certification of compliance with the NYSE standards.Through our website,you can access,free of charge,electronic copies of the charters of the committees of our Board of Directors,other docume

36、nts related to ourcorporate governance(including our Code of Business Conduct and Governance Principles),and documents we file with the SEC,including our annual reports onForm 10-K,quarterly reports on Form 10-Q,and current reports on Form 8-K,as well as any amendments to these reports filed or furn

37、ished pursuant toSection 13(a)or 15(d)of the Securities Exchange Act of 1934.Included in our annual and quarterly reports are the certifications of our principal executive officerand our principal financial officer that are required by applicable laws and regulations.Access to these electronic filin

38、gs is available as soon as reasonablypracticable after we file such material with,or furnish it to,the SEC.You may also request printed copies of our corporate charter,bylaws,committee charters,orother governance documents free of charge by writing to our corporate secretary at the address on the co

39、ver of this report.Our reports filed with the SEC are madeavailable to read and copy at the SECs Public Reference Room at 100 F Street,N.E.,Washington,D.C.,20549.You may obtain information about the PublicReference Room by contacting the SEC at 1-800-SEC-0330.Reports filed with the SEC are also made

40、 available on its website at www.sec.gov.From time to time,we also post announcements,updates,and investor information on our website in addition to copies of all recent press releases.Information on our website or anyother website is not incorporated by reference into,and does not constitute a part

41、 of,this Annual Report on Form 10-K.Properties to which we refer in this document may be held by subsidiaries of Apache Corporation.References to“Apache”or the“Company”includeApache Corporation and its consolidated subsidiaries unless otherwise specifically stated.During the second quarter of 2016,A

42、pache changed its method of accounting for its oil and gas exploration and development activities from the full costmethod to the successful efforts method of accounting.Financial information for all periods has been recast to reflect retrospective application of the successfulefforts method of acco

43、unting.See Note 1Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements under Part IV,Item 15of this Form 10-K.During 2015,Apache sold its Australia LNG business and oil and gas assets.During 2014,Apache sold its operations in Argentina.Results of operations and

44、cash flows from operations for Argentina and Australia are reflected as discontinued operations in the Companys financial statements for all periods presented.Certain historical information has been recast to reflect the results of operations for Argentina and Australia as discontinued operations.Bu

45、siness StrategyApaches mission is to grow a profitable exploration and production company in a safe and environmentally responsible manner for the long-term benefit ofour shareholders.Apaches long-term perspective has many dimensions,which are centered on the following core strategic components:rigo

46、rous portfolio managementconservative capital structureoptimization of returnsRigorous management of the Companys asset portfolio plays a key role in optimizing shareholder value over the long-term.The Company has monetizedcertain capital intensive projects that were not accretive to earnings in the

47、 near-term and other non-strategic assets.These divestitures over the past few yearsincluded selling Apaches interest in LNG projects in Australia and Canada,all of its exploration and production operations in Australia and Argentina,matureassets offshore in the Gulf of Mexico,and various leasehold

48、areas in North America onshore plays where the Company made strategic decisions to allocateresources to other,more impactful development opportunities.1Preserving financial flexibility is also key to the Companys business philosophy.In response to the significant decline in commodity prices that beg

49、an in2014,Apache immediately took proactive measures to reduce activity levels and bring costs in alignment with activity levels,while taking concrete steps to cutoverhead,operating,and drilling costs.The Company allocated a portion of its reduced overall capital spend in North America for strategic

50、 testing and completionoptimization,which resulted in significant expansion of our economic drilling inventory and improved well performance.In addition,the Company completedconfirmation testing and initiated a delineation program that confirmed a significant exploration discovery in the Delaware Ba

51、sin,“Alpine High.”For a more in-depth discussion of the Companys Alpine High discovery,please refer to the Permian region discussion.For a more in-depth discussion of theCompanys divestitures,strategy,2016 results,and its capital resources and liquidity,please see Part II,Item 7Managements Discussio

52、n and Analysis ofFinancial Condition and Results of Operations of this Form 10-K.Geographic Area OverviewsApache has exploration and production interests in four geographic areas:the United States(U.S.),Canada,Egypt,and the United Kingdom(U.K.)NorthSea.Apache also has exploration interests in Surina

53、me that may,over time,result in a reportable discovery and development opportunity.The following table sets out a brief comparative summary of certain key 2016 data for each of Apaches operating areas.Additional data and discussion isprovided in Part II,Item 7Managements Discussion and Analysis of F

54、inancial Condition and Results of Operations of this Form 10-K.Production Percentageof TotalProduction ProductionRevenue Year-EndEstimatedProvedReserves Percentageof TotalEstimatedProvedReserves GrossWellsDrilled GrossProductiveWellsDrilled (In MMboe)(In millions)(In MMboe)United States 82.0 43%$1,9

55、97 733 56%168 161Canada 21.7 11 343 175 13 17 15Total North America 103.7 54 2,340 908 69 185 176Egypt(1)62.3 33 2,057 280 21 61 54North Sea(2)25.0 13 970 123 10 14 10Total International 87.3 46 3,027 403 31 75 64Total 191.0 100%$5,367 1,311 100%260 240(1)Apaches operations in Egypt,excluding a one-

56、third noncontrolling interest,contributed 24 percent of 2016 production and accounted for 15 percent of year-end estimated proved reservesand 28 percent of estimated discounted future net cash flows.(2)Average sales volumes from the North Sea for 2016 were 24.5 MMboe.Sales volumes may vary from prod

57、uction volumes as a result of the timing of liftings in the Beryl field.North AmericaIn 2016,Apaches North American operations contributed approximately 54 percent of production and 69 percent of estimated year-end proved reserves.Apache has access to significant liquid hydrocarbons across its 11.3

58、million gross acres in North America,59 percent of which is undeveloped.2In North America Apache has three onshore regions:The Permian region located in West Texas and New Mexico includes the Permian sub-basins,the Midland Basin,Central Basin Platform/NorthwestShelf,and Delaware Basin.Examples of sh

59、ale plays within this region include the Woodford,Barnett,Pennsylvanian,Cline,Wolfcamp,Bone Spring,and Spraberry.The Midcontinent/Gulf Coast region(formerly Gulf Coast and Central regions)includes the Granite Wash,Tonkawa,Canyon Lime,Marmaton,andCleveland formations of the West Anadarko Basin,the Wo

60、odford-SCOOP and Stack plays located in Central Oklahoma,and the Eagle Ford shale inSouth East Texas.The Canada region has exploration and production operations in the provinces of British Columbia,Alberta,and Saskatchewan.Current drillingactivities are primarily focused in the Duvernay and Montney

61、shale plays.Apache also has one offshore region in North America,the Gulf of Mexico region,which consists of both shallow and deep water exploration and productionactivities.PermianRegionThe Permian region is one of Apaches core growth areas.Highlights of the Companys operations in the region includ

62、e:Over 3.1 million gross acres with exposure to numerous plays focused primarily in the Midland Basin,the Central Basin Platform/Northwest Shelf,andthe Delaware Basin.Estimated proved reserves of 611 MMboe at year-end 2016,representing 47 percent of the Companys worldwide reserves.Annual production

63、decline of only 4 percent,despite operating an average rig count of 5,down from 12 rigs in 2015 and 40 rigs in 2014.The reducedrig count reflected the Companys decisive action to curtail capital spending in response to continued weakness in commodity prices until commodityprices and costs come into

64、better equilibrium.In 2016,the Permian region drilled or participated in 132 wells,96 of which were horizontal,with a 96 percent success rate.In September 2016,after more than two years of extensive geological and geophysical work,methodical acreage accumulation,and strategic testing anddelineation

65、drilling,Apache announced the discovery of a significant new resource play,“Alpine High.”Apaches Alpine High acreage lies in the southern portionof the Delaware Basin,primarily in Reeves County,Texas.The Company has established an acreage position of over 320,000 contiguous net acres,which itacquire

66、d at an attractive average cost of approximately$1,300 per acre.Since first announcing the Alpine High last September,the Company has made substantialprogress further delineating the opportunity.The Company has confirmed an extensive play fairway which spans 55 miles and a 5,000-foot vertical column

67、encompassing five geologic formations,with multiple target zones spanning the hydrocarbon phase window from dry gas to wet gas to oil.We have recentlyidentified an additional landing zone in the Woodford formation,and confirmed production from the Pennsylvanian.Based on these results,Apache now beli

68、evesthe drilling locations at Alpine High will exceed the 2,000 to 3,000 previously announced.During 2017,we expect to average 4 to 6 drilling rigs at Alpine High.Asecond hydraulic fracturing crew was added at the start of the year to accelerate completions and data collection.Using data collected f

69、rom strategic testing anddelineation drilling,the Company is now beginning to optimize wells drilled in Alpine High using customized targeting,larger fracs,and longer laterals.Combinedwith multi-well pad drilling,the Company believes these measures contribute to the optimized development of the area

70、 to maximize economic value.The field isexpected to have low levels of water production which will also have a positive impact on long-term economics.We are currently installing the infrastructure,which will allow gas sales from the field around mid-year 2017.In addition to activity in Alpine High,t

71、he Permian region drilled or participated in over 110 wells in 2016,with a 100 percent success rate.In the MidlandBasin,where Apache holds approximately 443,000 net acres,activity was focused on stratigraphic and development pad drilling of the Wolfcamp and Spraberryshale formations in the Wildfire,

72、Powell,and Azalea areas.Activity in Midland Basin has been significantly increased in 2017:the region has increased the rigcount to five,compared to an average of one in 2016.The additional rigs will be dedicated to long-term pad development drilling.The Companys assets in theCentral Basin Platform/

73、Northwest Shelf span 739,000 net acres.The Yeso play was the primary focus of 2016 development activities in this area.In the DelawareBasin,Apache holds approximately 392,000 net acres.In addition to drilling and development activities at Alpine High,the Company targeted plays in the BoneSpring and

74、Wolfcamp plays.3Apache plans to significantly increase activity in the Permian region during 2017,while continuing to balance capital investments between its largerdevelopment project at Alpine High and focused exploration and development programs on other core assets in its Permian region.During 20

75、17,the Companyexpects to average 15 drilling rigs in the Permian Basin and drill approximately 250 wells,which includes a four to six rig delineation drilling program at AlpineHigh.The Company plans to allocate approximately two-thirds of its 2017 capital budget to the Permian region.Midcontinent/Gu

76、lfCoastRegionAs part of Apaches 2015 strategic efforts to reduce its operating cost structure,the Company combined the Midcontinent(formerly Central region)and Gulf Coast regions.Apaches Midcontinent/Gulf Coast region includes 2.6 million gross acres and over 3,200 producing wellsprimarily in wester

77、n Oklahoma,the Texas Panhandle and south Texas.In 2016,the region accounted for 11 percent of the Companys production andapproximately 9 percent of the Companys year-end estimated proved reserves.In 2016,Apache drilled or participated in drilling 35 wells with a 94 percent success rate.Activity was

78、focused primarily in the Woodford-SCOOP andCanyon Lime formations.In 2017,Apache plans to run a targeted program,drilling four wells in the Woodford-SCOOP play.In addition,the region will continueits focus on high grading acreage and building its inventory of future drilling locations.CanadaRegionAp

79、ache holds 3.5 million gross acres across the provinces of British Columbia,Alberta,and Saskatchewan.The regions large acreageposition provides significant drilling opportunities and portfolio diversification with exposure to oil,gas,and liquids rich fairways.The Canadian region providedapproximatel

80、y 11 percent of Apaches 2016 worldwide production and 175 MMboe of estimated proved reserves at year-end.In 2016,Apache drilled or participated in drilling 17 wells in the region with an 88 percent success rate.Drilling operations primarily focused on the WapitiMontney,Ante Creek Montney,Duvernay,an

81、d Glauconite plays.In 2017,the Company expects to drill 10 wells:a six-well pad in the Duvernay play,three wellsin the Wapiti Montney play,and one exploratory well in the East Shale Basin.GulfofMexicoRegionThe Gulf of Mexico region comprises assets in the offshore waters of the Gulf of Mexico and on

82、shore Louisiana.In addition to itsinterest in several deepwater exploration and development offshore leases,when the Company sold substantially all of its offshore assets in water depths less than1,000 feet,it retained a 50 percent ownership interest in all exploration blocks and in horizons below p

83、roduction in development blocks,and access to existinginfrastructure.Apaches offshore technical teams continue to focus on evaluating subsalt and other deeper exploration opportunities in water depths less than 1,000feet,which have been relatively untested by the industry,where high-potential deep h

84、ydrocarbon plays may exist.During 2016,Apaches Gulf of Mexico regioncontributed 7.7 Mboe/d to the Companys total production.During 2017,the Company expects to participate in one non-operated exploration well.NorthAmericaMarketingIn general,most of the Companys North American gas is sold at either mo

85、nthly or daily market prices.The Company alsooccasionally enters into fixed physical sales contracts for durations of up to one year.These physical sales volumes are typically sold at fixed prices over the termof the contract.Natural gas is sold primarily to local distribution companies(LDCs),utilit

86、ies,end-users,marketers,and integrated major oil companies.Apachestrives to maintain a diverse client portfolio,which is intended to reduce the concentration of credit risk.Apache primarily markets its North American crude oil to integrated major oil companies,marketing and transportation companies,

87、and refiners based on aWest Texas Intermediate(WTI)price,adjusted for quality,transportation,and a market-reflective differential.In the U.S.,Apaches objective is to maximize the value of crude oil sold by identifying the best markets and most economical transportation routes availableto move the pr

88、oduct.Sales contracts are generally 30-day evergreen contracts that renew automatically until canceled by either party.These contracts provide forsales that are priced daily at prevailing market prices.Also,from time to time,the Company will enter into physical term sales contracts for durations up

89、to fiveyears.These term contracts typically have a firm transport commitment and often provide for the higher of prevailing market prices from multiple market hubs.In Canada,crude is transported by pipeline or truck within Western Canada to market hubs in Alberta and Manitoba where it is sold,allowi

90、ng for a morediversified group of purchasers and a higher netback price.The Company evaluates its transport options monthly to maximize its netback prices.Apaches NGL production is sold under contracts with prices based on local supply and demand conditions,less the costs for transportation andfract

91、ionation,or on a weighted-average sales price received by the purchaser.4InternationalIn 2016,international assets contributed 46 percent of Apaches production and 56 percent of oil and gas revenues.Approximately 31 percent of estimatedproved reserves at year-end were located outside North America.A

92、pache has two international regions:The Egypt region includes onshore conventional assets in Egypts Western Desert.The North Sea region includes offshore assets based in the United Kingdom.The Company also has an offshore exploration program in Suriname.EgyptApaches Egypt operations are conducted pu

93、rsuant to production sharing contracts(PSCs).Under the terms of the Companys PSCs,the contractorpartners(Contractor)bears the risk and cost of exploration,development,and production activities.In return,if exploration is successful,the Contractor receivesentitlement to variable physical volumes of h

94、ydrocarbons,representing recovery of the costs incurred and a stipulated share of production after cost recovery.Additionally,the Contractors income taxes,which remain the liability of the Contractor under domestic law,are paid by Egyptian General Petroleum Corporation(EGPC)on behalf of the Contract

95、or out of EGPCs production entitlement.Income taxes paid to the Arab Republic of Egypt on behalf of the Contractor arerecognized as oil and gas sales revenue and income tax expense and reflected as production and estimated reserves.Because Contractor cost recovery entitlementand income taxes paid on

96、 its behalf are determined as a monetary amount,the quantities of production entitlement and estimated reserves attributable to thesemonetary amounts will fluctuate with commodity prices.In addition,because the Contractor income taxes are paid by EGPC,the amount of the income tax has noeconomic impa

97、ct on Apaches Egypt operations despite impacting Apaches production and reserves.Sinopec International Petroleum Exploration and ProductionCorporation(Sinopec)holds a one-third minority participation interest in Apaches oil and gas operations in Egypt.Apache has 21 years of exploration,development a

98、nd operations experience in Egypt and is one of the largest acreage holders in Egypts Western Desert.Atyear-end 2016,the Company held 4.8 million gross acres in 23 separate concessions.Development leases within concessions currently have expiration datesranging from 4 to 20 years,with extensions pos

99、sible for additional commercial discoveries or on a negotiated basis.Approximately 63 percent of the Companysacreage in Egypt is undeveloped,providing us with considerable exploration and development opportunities for the future.In December 2016,the Company wasnotified by the Egyptian Ministry that

100、it was the successful bidder in two new concessions,which will add an additional 1.6 million gross undeveloped acres to itsportfolio.Apache anticipates these concessions will be signed into law mid-2017.The Companys estimated proved reserves in Egypt are reported under the economic interest method a

101、nd exclude the host countrys share of reserves.TheEgypt region,including the one-third noncontrolling interest,contributed 33 percent of 2016 production,21 percent of year-end estimated proved reserves,and 37percent of estimated discounted future net cash flows.Excluding the noncontrolling interest,

102、Egypt contributed 24 percent of 2016 production,15 percent of year-end estimated proved reserves,and 28 percent of estimated discounted future net cash flows.While Apache has historically been one of the most active drillers in the Western Desert,activity has been curtailed for the past several year

103、s in response toweak oil prices.In 2016,the region drilled 47 development and 14 exploration wells.Approximately 57 percent of the exploration wells were successful,furtherexpanding Apaches presence in the westernmost concessions and unlocking additional opportunities in existing plays.A key compone

104、nt of the regions successhas been the ability to acquire and evaluate 3-D seismic surveys that enable Apaches technical teams to consistently high-grade existing prospects and identifynew targets across multiple pay horizons in the Cretaceous,Jurassic,and deeper Paleozoic formations.In 2017,Apache p

105、lans to operate 8 to 10 drilling rigs and drill approximately 90 to 100 wells.In addition,Apache will initiate a large,continuous 3-Dseismic survey program to support development on its existing acreage and exploration on its new concessions.The program will provide newer vintage,higherresolution im

106、aging of the substrata across Apaches Western Desert position,allowing Apache to build and high-grade its drilling inventory.EgyptMarketing Apaches gas production in Egypt is sold to EGPC primarily under an industry-pricing formula,a sliding scale based on Dated Brent crudeoil with a minimum of$1.50

107、 per MMBtu and a maximum of$2.65 per MMBtu,plus an upward adjustment for liquids content.The region averaged$2.71 per Mcfin 2016.Oil production is sold to third parties in the export market or to EGPC when called upon to supply domestic demand.Oil production sold to third parties isexported from or

108、sold at one of two terminals on the northern coast of Egypt.Oil production sold to EGPC is sold at prices equivalent to the export market.5NorthSeaApache has interests in approximately 380,000 gross acres in the U.K.North Sea.The region contributed 13 percent of Apaches 2016 productionand approximat

109、ely 10 percent of year-end estimated proved reserves.Apache entered the North Sea in 2003 after acquiring an approximate 97 percent working interest in the Forties field(Forties).Since acquiring Forties,Apache has actively invested in the region and has established a large inventory of drilling pros

110、pects through successful exploration programs and the interpretationof acquired 3-D and 4-D seismic data.Building upon its success in Forties,in 2011 Apache acquired Mobil North Sea Limited,providing the region with additionalexploration and development opportunities across numerous fields,including

111、 operated interests in the Beryl,Nevis,Nevis South,Skene,and Buckland fields andnon-operated interests in the Maclure and Nelson field.The Beryl field,which is a geologically complex area with multiple fields and stacked pay potential,provides for significant exploration opportunity.The North Sea re

112、gion plays a strategic role in Apaches portfolio by providing competitive investmentopportunities and potential reserve upside with high-impact exploration potential.During the year,the region drilled 12 development wells with an 83 percent success rate:six at Forties,five at Beryl,and one at Aviat.

113、In addition,it drilledor participated in three exploration wells with a 33 percent success rate.The Storr discovery,an exploration prospect targeting the Beryl and Nansen sands,encountered hydrocarbons in two separate fault blocks.The region is evaluating a development plan for the Storr discovery.A

114、pache holds a 55 percent workinginterest in the prospect.Apache progressed the development of the 2015 Callater(formerly K)exploration discovery in the Beryl area,with first production projected in the secondhalf of 2017.Initial production is expected at 20,000 boe/d on a gross basis.Apache plans to

115、 drill two additional wells in the second half of the year.Apache holdsa 55 percent working interest in Callater,and operates the field.The region also continued to assess development plans for two earlier exploration discoveries,Seagull and Corona,in which Apache holds 35 and 100 percent interests,

116、respectively.Also during the year,Apache completed the Aviat gas-for-power project at Forties.This project enables a switch from diesel to natural gas to power theForties field.The use of natural gas to power the field will extend the economic life,lower operating costs,and reduce certain reliabilit

117、y and safety risks associatedwith bunkering diesel.Annual fuel and other savings are projected at$15 million.In 2017,Apache currently plans to operate an average of three rigs in the North Sea region,two platform rigs(one at Forties and one at Beryl)and two semi-submersible rigs on rig-sharing agree

118、ments,and drill 15 to 16 wells.NorthSeaMarketing Apache has traditionally sold its North Sea crude oil under term contracts,with a market-based index price plus a premium,whichreflects the higher market value for term arrangements.Natural gas from the Beryl field is processed through the SAGE gas pl

119、ant operated by Apache.The gas is sold to a third party at the St.Fergus entry point ofthe national grid on a National Balancing Point index price basis.The condensate mix from the SAGE plant is processed further downstream.The split streams ofpropane and butane are sold on a monthly entitlement bas

120、is,and condensate is sold on a spot basis at the Braefoot Bay terminal using index pricing lesstransportation.Australia/ArgentinaDuring the second quarter of 2015,Apache completed the sale of its Australian LNG business and oil and gas assets.In March 2014,Apache completed the sale of all of its ope

121、rations in Argentina.Results of operations and consolidated cash flows for the divested Australia assets and Argentinaoperations are reflected as discontinued operations in the Companys financial statements for all periods presented in this Annual Report on Form 10-K.Other ExplorationNewVenturesApac

122、hes global New Ventures team provides exposure to new growth opportunities by looking outside of the Companys traditional coreareas and targeting higher-risk,higher-reward exploration opportunities located in frontier basins as well as new plays in more mature basins.Plans for 2017include continued

123、analysis and review of the Companys deepwater prospects in offshore Suriname,including fully processing the data set from its 3-D seismicshoot completed in the third quarter of 2016.Apache will begin drilling an exploration well in the first quarter of 2017.Major CustomersIn 2016 and 2015,purchases

124、by China Petroleum&Chemical Corporation and its subsidiaries accounted for 21 percent and 12 percent,respectively,of theCompanys worldwide oil and gas production revenues.In 2016 and 2015,purchases by Egyptian General Petroleum Company and its subsidiaries accounted for12 percent and 11 percent,resp

125、ectively,of the Companys worldwide oil and gas production revenues.In 2015 and 2014,purchases by Royal Dutch Shell plc andits subsidiaries accounted for 11 percent and 19 percent,respectively,of the Companys worldwide oil and gas production revenues.6Drilling StatisticsWorldwide in 2016,Apache parti

126、cipated in drilling 260 gross wells,with 240(92 percent)completed as producers.Historically,Apaches drilling activitiesin the U.S.have generally concentrated on exploitation and extension of existing producing fields rather than exploration.As a general matter,Apaches operationsoutside of North Amer

127、ica focus on a mix of exploration and development wells.In addition to Apaches completed wells,at year-end a number of wells had not yetreached completion:70 gross(33.7 net)in the U.S.,14 gross(14 net)in Egypt,and 5 gross(3.1 net)in the North Sea.The following table shows the results of the oil and

128、gas wells drilled and completed for each of the last three fiscal years:Net Exploratory Net Development Total Net Wells Productive Dry Total Productive Dry Total Productive Dry Total2016 United States 18.9 5.0 23.9 79.5 1.9 81.4 98.4 6.9 105.3Canada 2.0 2.0 10.2 10.2 10.2 2.0 12.2Egypt 7.3 5.1 12.4

129、40.5 1.0 41.5 47.8 6.1 53.9North Sea 0.9 0.9 8.2 1.6 9.8 8.2 2.5 10.7Total 26.2 13.0 39.2 138.4 4.5 142.9 164.6 17.5 182.12015 United States 14.7 8.0 22.7 289.0 5.3 294.3 303.7 13.3 317.0Canada 4.0 4.0 16.7 16.7 20.7 20.7Egypt 13.4 8.6 22.0 82.3 3.0 85.3 95.7 11.6 107.3North Sea 1.6 0.7 2.3 15.9 3.5

130、 19.4 17.5 4.2 21.7Other International 0.5 0.5 0.5 0.5Total 33.7 17.8 51.5 403.9 11.8 415.7 437.6 29.6 467.22014 United States 18.5 6.4 24.9 781.5 10.1 791.6 800.0 16.5 816.5Canada 1.0 1.0 2.0 83.9 2.0 85.9 84.9 3.0 87.9Egypt 18.6 22.8 41.4 143.3 9.9 153.2 161.9 32.7 194.6Australia 1.6 1.7 3.3 2.9 2

131、.9 4.5 1.7 6.2North Sea 17.6 1.1 18.7 17.6 1.1 18.7Argentina 1.0 1.0 1.0 1.0Total 39.7 31.9 71.6 1,030.2 23.1 1,053.3 1,069.9 55.0 1,124.9Productive Oil and Gas WellsThe number of productive oil and gas wells,operated and non-operated,in which the Company had an interest as of December 31,2016,is se

132、t forth below:Oil Gas Total Gross Net Gross Net Gross NetUnited States 13,716 8,936 3,192 1,581 16,908 10,517Canada 1,786 795 2,313 1,873 4,099 2,668Egypt 1,135 1,072 120 116 1,255 1,188North Sea 158 119 25 16 183 135Total 16,795 10,922 5,650 3,586 22,445 14,508 Domestic 13,716 8,936 3,192 1,581 16,

133、908 10,517Foreign 3,079 1,986 2,458 2,005 5,537 3,991Total 16,795 10,922 5,650 3,586 22,445 14,508Gross natural gas and crude oil wells include 640 wells with multiple completions.7Production,Pricing,and Lease Operating Cost DataThe following table describes,for each of the last three fiscal years,o

134、il,NGL,and gas production volumes,average lease operating costs per boe(includingtransportation costs but excluding severance and other taxes),and average sales prices for each of the countries where the Company has operations:Production Average LeaseOperating Cost per Boe Average Sales Price Oil NG

135、L Gas Oil NGL GasYear Ended December 31,(MMbbls)(MMbbls)(Bcf)(Per bbl)(Per bbl)(Per Mcf)2016 United States 38.0 19.8 145.0$7.72$39.43$9.28$2.17Canada 4.8 2.1 88.8 11.52 37.62 8.15 1.64Egypt(1)37.9 0.4 143.4 7.86 43.66 28.68 2.71North Sea(2)20.0 0.6 26.3 13.14 42.93 24.20 4.51Total 100.7 22.9 403.5 8

136、.90 41.63 9.92 2.402015 United States 45.1 19.7 160.6$8.81$45.71$9.72$2.38Canada 5.8 2.2 100.3 13.46 42.33 5.52 2.41Egypt(1)33.1 0.4 134.8 10.11 50.97 30.97 2.91North Sea 21.7 0.4 23.7 13.74 51.26 26.53 6.73Total 105.7 22.7 419.4 10.40 48.31 9.98 2.802014 United States 48.7 21.5 215.8$9.55$87.33$25.

137、57$4.33Canada 6.4 2.3 117.8 17.90 83.57 33.61 4.07Egypt(1)33.0 0.2 146.5 9.37 97.06 51.60 2.96North Sea 22.2 0.5 20.5 17.30 95.53 59.42 8.29Total 110.3 24.5 500.6 11.51 91.66 27.28 4.03(1)Includes production volumes attributable to a one-third noncontrolling interest in Egypt.(2)Average sales volume

138、s from the North Sea for 2016 were 24.5 MMboe.Sales volumes may vary from production volumes as a result of the timing of liftings in the Beryl field.Gross and Net Undeveloped and Developed AcreageThe following table sets out Apaches gross and net acreage position as of December 31,2016,in each coun

139、try where the Company has operations:Undeveloped Acreage Developed Acreage Gross Acres Net Acres Gross Acres Net Acres (in thousands)United States 5,739 2,697 2,057 1,134Canada 948 740 2,554 1,857Egypt 3,007 2,616 1,758 1,657North Sea 230 139 150 115Total 9,924 6,192 6,519 4,763As of December 31,201

140、6,Apache had 1.2 million net undeveloped acres scheduled to expire by year-end 2017 if production is not established or Apachetakes no other action to extend the terms.Additionally,Apache has 668,000 and 854,000 net undeveloped acres set to expire in 2018 and 2019,respectively.TheCompany strives to

141、extend the terms of many of these licenses and concession areas through operational or administrative actions,but cannot assure that suchextensions can be achieved on an economic basis or otherwise on terms agreeable to both the Company and third parties,including governments.8Exploration concession

142、s in Apaches Egypt region comprise a significant portion of Apaches net undeveloped acreage expiring over the next three years.Apache has 0.7 million,0.4 million,and 0.6 million net undeveloped acres set to expire in 2017,2018,and 2019,respectively.Apache will continue to pursueacreage extensions in

143、 areas in which it believes exploration opportunities exist.There were no reserves recorded on this undeveloped acreage.Separately,Apachewas awarded the NW Razzak and South Alam El Shawish concession blocks in December 2016.The agreements are currently progressing and formal approval andsigning of t

144、he agreements by Apache,EGPC,and the Ministry of Petroleum is expected to occur by the summer of 2017.Combined,the two concessions areexpected to add approximately 1.6 million of undeveloped gross acres in Egypt in 2017.As of December 31,2016,34 percent of U.S.net undeveloped acreage and 44 percent

145、of Canadian net undeveloped acreage was held by production.In addition,Apache has exploration interests in Suriname consisting of 1.8 million net undeveloped acreage in two blocks set to expire in 2017 and 2018.Apache will commence drilling operations on a commitment well in 2017,and will determine

146、a course of action based on the results of drilling tests.No reserveshave been booked on this undeveloped acreage.Estimated Proved Reserves and Future Net Cash FlowsProved oil and gas reserves are those quantities of natural gas,crude oil,condensate,and NGLs,which by analysis of geoscience and engin

147、eering data,canbe estimated with reasonable certainty to be economically producible from a given date forward,from known reservoirs,and under existing economic conditions,operating methods,and government regulations.Estimated proved developed oil and gas reserves can be expected to be recovered thro

148、ugh existing wells withexisting equipment and operating methods.The Company reports all estimated proved reserves held under production-sharing arrangements utilizing the“economic interest”method,which excludes the host countrys share of reserves.Estimated reserves that can be produced economically

149、through application of improved recovery techniques are included in the“proved”classification whensuccessful testing by a pilot project or the operation of an active,improved recovery program using reliable technology establishes the reasonable certainty for theengineering analysis on which the proj

150、ect or program is based.Economically producible means a resource that generates revenue that exceeds,or is reasonablyexpected to exceed,the costs of the operation.Reasonable certainty means a high degree of confidence that the quantities will be recovered.Reliable technology isa grouping of one or m

151、ore technologies(including computational methods)that has been field-tested and has been demonstrated to provide reasonably certainresults with consistency and repeatability in the formation being evaluated or in an analogous formation.In estimating its proved reserves,Apache uses severaldifferent t

152、raditional methods that can be classified in three general categories:(1)performance-based methods;(2)volumetric-based methods;and(3)analogy withsimilar properties.Apache will,at times,utilize additional technical analysis,such as computer reservoir models,petrophysical techniques,and proprietary 3-

153、Dseismic interpretation methods,to provide additional support for more complex reservoirs.Information from this additional analysis is combined with traditionalmethods outlined above to enhance the certainty of our reserve estimates.Proved undeveloped reserves include those reserves that are expecte

154、d to be recovered from new wells on undrilled acreage,or from existing wells where arelatively major expenditure is required for recompletion.Undeveloped reserves may be classified as proved reserves on undrilled acreage directly offsettingdevelopment areas that are reasonably certain of production

155、when drilled,or where reliable technology provides reasonable certainty of economic producibility.Undrilled locations may be classified as having undeveloped reserves only if a development plan has been adopted indicating that they are scheduled to be drilledwithin five years,unless specific circums

156、tances justify a longer time period.9The following table shows proved oil,NGL,and gas reserves as of December 31,2016,based on average commodity prices in effect on the first day of eachmonth in 2016,held flat for the life of the production,except where future oil and gas sales are covered by physic

157、al contract terms.This table shows reserves on aboe basis in which natural gas is converted to an equivalent barrel of oil based on a ratio of 6 Mcf to 1 bbl.This ratio is not reflective of the current price ratiobetween the two products.Oil NGL Gas Total (MMbbls)(MMbbls)(Bcf)(MMboe)Proved Developed

158、:United States 301 155 1,200 656Canada 51 14 554 157Egypt(1)139 1 676 253North Sea 91 2 87 108Total Proved Developed 582 172 2,517 1,174Proved Undeveloped:United States 21 17 231 77Canada 8 2 45 18Egypt(1)20 42 27North Sea 11 1 24 15Total Proved Undeveloped 60 20 342 137TOTAL PROVED 642 192 2,859 1,

159、311(1)Includes total proved reserves of 93 MMboe attributable to a one-third noncontrolling interest in EgyptAs of December 31,2016,Apache had total estimated proved reserves of 642 MMbbls of crude oil,192 MMbbls of NGLs,and 2.9 Tcf of natural gas.Combined,these total estimated proved reserves are t

160、he volume equivalent of 1.3 billion barrels of oil or 7.9 Tcf of natural gas,of which oil represents 49 percent.As of December 31,2016,the Companys proved developed reserves totaled 1,174 MMboe and estimated PUD reserves totaled 137 MMboe,or approximately10.5 percent of worldwide total proved reserv

161、es.Apache has elected not to disclose probable or possible reserves in this filing.During 2016,Apache added 103 MMboe of proved reserves through exploration and development activity and 2 MMboe through purchases of minerals in-place.Apache sold a combined 7 MMboe through several divestiture transact

162、ions.During 2016,Apache also had combined downward revisions of previouslyestimated reserves of 159 MMboe.Changes in product prices accounted for 172 MMboe,lease ownership changes accounted for 6 MMboe,offset by engineeringand performance upward revisions totaling 19 MMboe.The Companys estimates of

163、proved reserves,proved developed reserves,and PUD reserves as of December 31,2016,2015,and 2014,changes inestimated proved reserves during the last three years,and estimates of future net cash flows from proved reserves are contained in Note 16Supplemental Oil andGas Disclosures in the Notes to Cons

164、olidated Financial Statements set forth in Part IV,Item 15 of this Form 10-K.Estimated future net cash flows were calculatedusing a discount rate of 10 percent per annum,end of period costs,and an unweighted arithmetic average of commodity prices in effect on the first day of each ofthe previous 12

165、months,held flat for the life of the production,except where prices are defined by contractual arrangements.Proved Undeveloped ReservesThe Companys total estimated PUD reserves of 137 MMboe as of December 31,2016,decreased by 95 MMboe from 232 MMboe of PUD reservesreported at the end of 2015.During

166、the year,Apache converted 22 MMboe of PUD reserves to proved developed reserves through development drilling activity.In North America,Apache converted 15 MMboe,with the remaining 7 MMboe in Apaches international areas.Apache sold 3 MMboe and acquired no PUDreserves during the year.Apache added 48 M

167、Mboe of new PUD reserves through extensions and discoveries.Apache recognized a 118 MMboe downward revisionin proved undeveloped reserves during the year,of which 99 MMboe was associated with lower product prices,5 MMboe was associated with interest revisions,and 14 MMboe was a result of changes in

168、development plans.10During the year,a total of approximately$357 million was spent on projects associated with reserves that were carried as PUD reserves at the end of 2015.Aportion of Apaches costs incurred each year relate to development projects that will be converted to proved developed reserves

169、 in future years.Apache spentapproximately$289 million on PUD reserve development activity in North America and$68 million in the international areas.As of December 31,2016,Apachehad no material amounts of proved undeveloped reserves scheduled to be developed beyond five years from initial disclosur

170、e.Preparation of Oil and Gas Reserve InformationApaches reported reserves are reasonably certain estimates which,by their very nature,are subject to revision.These estimates are reviewed throughout theyear and revised either upward or downward,as warranted.Apaches proved reserves are estimated at th

171、e property level and compiled for reporting purposes by a centralized group of experienced reservoir engineersthat is independent of the operating groups.These engineers interact with engineering and geoscience personnel in each of Apaches operating areas and withaccounting and marketing employees t

172、o obtain the necessary data for projecting future production,costs,net revenues,and ultimate recoverable reserves.Allrelevant data is compiled in a computer database application,to which only authorized personnel are given security access rights consistent with their assigned jobfunction.Reserves ar

173、e reviewed internally with senior management and presented to Apaches Board of Directors in summary form on a quarterly basis.Annually,each property is reviewed in detail by our corporate and operating region engineers to ensure forecasts of operating expenses,netback prices,production trends,and de

174、velopment timing are reasonable.Apaches Executive Vice President of Corporate Reservoir Engineering is the person primarily responsible for overseeing the preparation of our internalreserve estimates and for coordinating any reserves audits conducted by a third-party engineering firm.He has a Bachel

175、or of Science degree in PetroleumEngineering and over 36 years of industry experience with positions of increasing responsibility within Apaches corporate reservoir engineering department.TheExecutive Vice President of Corporate Reservoir Engineering reports directly to our Chief Executive Officer.T

176、he estimate of reserves disclosed in this Annual Report on Form 10-K is prepared by the Companys internal staff,and the Company is responsible for theadequacy and accuracy of those estimates.However,the Company engages Ryder Scott Company,L.P.Petroleum Consultants(Ryder Scott)to review ourprocesses

177、and the reasonableness of our estimates of proved hydrocarbon liquid and gas reserves.The Company selects the properties for review by Ryder Scottbased primarily on relative reserve value.The Company also considers other factors such as geographic location,new wells drilled during the year and reser

178、vesvolume.During 2016,the properties selected for each country ranged from 87 to 100 percent of the total future net cash flows discounted at 10 percent.Theseproperties also accounted for over 88 percent of the reserves value of our international proved reserves and 93 percent of the new wells drill

179、ed in each country.Inaddition,all fields containing five percent or more of the Companys total proved reserves volume were included in Ryder Scotts review.The review covered 83percent of total proved reserves by volume.During 2016,2015,and 2014,Ryder Scotts review covered 92,90,and 91 percent,respec

180、tively,of the Companys worldwide estimated proved reservesvalue and 83,83,and 85 percent,respectively,of the Companys total proved reserves volume.Ryder Scotts review of 2016 covered 81 percent of U.S.,81percent of Canada,85 percent of Egypt,and 92 percent of the U.K.s total proved reserves.Ryder Sc

181、otts review of 2015 covered 81 percent of U.S.,81 percent of Canada,86 percent of Egypt,and 88 percent of the U.K.s total proved reserves.Ryder Scotts review of 2014 covered 83 percent of U.S.,75 percent of Canada,99.5 percent of Australia,86 percent of Egypt,and 94 percent of the U.K.stotal proved

182、reserves.The Company has filed Ryder Scotts independent report as an exhibit to this Form 10-K.According to Ryder Scotts opinion,based on their review,including the data,technical processes,and interpretations presented by Apache,the overallprocedures and methodologies utilized by Apache in determin

183、ing the proved reserves comply with the current SEC regulations,and the overall proved reserves forthe reviewed properties as estimated by Apache are,in aggregate,reasonable within the established audit tolerance guidelines as set forth in the Society ofPetroleum Engineers auditing standards.Employe

184、esOn December 31,2016,the Company had 3,727 employees.11OfficesOur principal executive offices are located at One Post Oak Central,2000 Post Oak Boulevard,Suite 100,Houston,Texas 77056-4400.At year-end 2016,theCompany maintained regional exploration and/or production offices in Midland,Texas;San Ant

185、onio,Texas;Houston,Texas;Calgary,Alberta;Cairo,Egypt;andAberdeen,Scotland.Apache leases all of its primary office space.The current lease on our principal executive offices runs through December 31,2019.TheCompany has two,five-year options to extend the lease through 2024 and 2029,which may be exerc

186、ised in five or ten-year increments.For information regardingthe Companys obligations under its office leases,please see Part II,Item 7Managements Discussion and Analysis of Financial Condition and Results ofOperationsCapital Resources and LiquidityContractual Obligations and Note 10Commitments and

187、Contingencies in the Notes to Consolidated FinancialStatements set forth in Part IV,Item 15 of this Form 10-K.Title to InterestsAs is customary in our industry,a preliminary review of title records,which may include opinions or reports of appropriate professionals or counsel,is madeat the time we ac

188、quire properties.We believe that our title to all of the various interests set forth above is satisfactory and consistent with the standards generallyaccepted in the oil and gas industry,subject only to immaterial exceptions that do not detract substantially from the value of the interests or materi

189、ally interferewith their use in our operations.The interests owned by us may be subject to one or more royalty,overriding royalty,or other outstanding interests(includingdisputes related to such interests)customary in the industry.The interests may additionally be subject to obligations or duties un

190、der applicable laws,ordinances,rules,regulations,and orders of arbitral or governmental authorities.In addition,the interests may be subject to burdens such as production payments,net profitsinterests,liens incident to operating agreements and current taxes,development obligations under oil and gas

191、leases,and other encumbrances,easements,andrestrictions,none of which detract substantially from the value of the interests or materially interfere with their use in our operations.Additional Information about ApacheIn this section,references to“we,”“us,”“our,”and“Apache”include Apache Corporation a

192、nd its consolidated subsidiaries,unless otherwise specificallystated.Response Plans and Available ResourcesApache and its wholly owned subsidiary,Apache Deepwater LLC(ADW),developed Oil Spill Response Plans(the Plans)for their respective Gulf ofMexico operations and offshore operations in the North

193、Sea and Suriname.These plans ensure rapid and effective responses to spill events that may occur on suchentities operated properties.Annually,drills are conducted to measure and maintain the effectiveness of the Plans.Apache is a member of Oil Spill Response Limited(OSRL),a large international oil s

194、pill response cooperative,which entitles any Apache entity worldwideto access OSRLs services.Apache also has a contract in place for response resources and services with Polyeco Group,a large,privately owned,tier three OilSpill Response Organization(OSRO),which has resources strategically staged at

195、six bases worldwide.In the event of a spill in the Gulf of Mexico,Clean Gulf Associates(CGA)is the primary oil spill response association available to Apache and ADW.BothApache and ADW are members of CGA,a not-for-profit association of producing and pipeline companies operating in the Gulf of Mexico

196、.CGA was created toprovide a means of effectively staging response equipment and providing immediate spill response for its member companies operations in the Gulf of Mexico.Inthe event of a spill,CGAs equipment,which is positioned at various staging points around the Gulf,is ready to be mobilized.I

197、n addition,ADW is a member ofMarine Spill Response Corporation(MSRC),and their equipment and resources are also available to ADW for its deepwater Gulf of Mexico and new ventureoperations.An Apache subsidiary is also a member of the Marine Well Containment Company (MWCC)to help the Company fulfill t

198、he governments permitrequirements for containment and oil spill response plans in deepwater Gulf of Mexico operations.MWCC is a not-for-profit,stand-alone organization whose goalis to improve capabilities for containing an underwater well control incident in the U.S.Gulf of Mexico.Members and their

199、affiliates have access to MWCCsextensive containment network and systems.As of December 31,2016,Apaches investment in MWCC totals$163 million and is reflected in“Deferred chargesand other”in the Companys consolidated balance sheet.12Competitive ConditionsThe oil and gas business is highly competitiv

200、e in the exploration for and acquisitions of reserves,the acquisition of oil and gas leases,equipment andpersonnel required to find and produce reserves,and the gathering and marketing of oil,gas,and natural gas liquids.Our competitors include national oilcompanies,major integrated oil and gas compa

201、nies,other independent oil and gas companies,and participants in other industries supplying energy and fuel toindustrial,commercial,and individual consumers.Certain of our competitors may possess financial or other resources substantially larger than we possess or have established strategic long-ter

202、m positions andmaintain strong governmental relationships in countries in which we may seek new entry.As a consequence,we may be at a competitive disadvantage in biddingfor leases or drilling rights.However,we believe our diversified portfolio of core assets,which comprises large acreage positions a

203、nd well-established production bases across fourgeographic areas,our balanced production mix between oil and gas,our management and incentive systems,and our experienced personnel give us a strongcompetitive position relative to many of our competitors who do not possess similar geographic and produ

204、ction diversity.Our global position provides a largeinventory of geologic and geographic opportunities in the four geographic areas in which we have producing operations to which we can reallocate capitalinvestments in response to changes in commodity prices,local business environments,and markets.I

205、t also reduces the risk that we will be materially impacted byan event in a specific area or country.Environmental ComplianceAs an owner or lessee and operator of oil and gas properties and facilities,we are subject to numerous federal,provincial,state,local,and foreign countrylaws and regulations r

206、elating to discharge of materials into,and protection of,the environment.These laws and regulations may,among other things,imposeliability on the lessee under an oil and gas lease for the cost of pollution clean-up resulting from operations,subject the lessee to liability for pollution damages andre

207、quire suspension or cessation of operations in affected areas.Although environmental requirements have a substantial impact upon the energy industry as awhole,we do not believe that these requirements affect us differently,to any material degree,than other companies in our industry.We have made and

208、will continue to make expenditures in our efforts to comply with these requirements,which we believe are necessary business costs in theoil and gas industry.We have established policies for continuing compliance with environmental laws and regulations,including regulations applicable to ouroperation

209、s in all countries in which we do business.We have established operating procedures and training programs designed to limit the environmental impact ofour field facilities and identify and comply with changes in existing laws and regulations.The costs incurred under these policies and procedures are

210、 inextricablyconnected to normal operating expenses such that we are unable to separate expenses related to environmental matters;however,we do not believe expensesrelated to training and compliance with regulations and laws that have been adopted or enacted to regulate the discharge of materials in

211、to the environment will havea material impact on our capital expenditures,earnings,or competitive position.13ITEM 1A.RISK FACTORS Our business activities and the value of our securities are subject to significant hazards and risks,including those described below.If any of such eventsshould occur,our

212、 business,financial condition,liquidity,and/or results of operations could be materially harmed,and holders and purchasers of our securitiescould lose part or all of their investments.Additional risks relating to our securities may be included in the prospectuses for securities we issue in the futur

213、e.Crude oil and natural gas price volatility,including the recent decline in prices for oil and natural gas,could adversely affect our operating results and theprice of our common stock.Our revenues,operating results,and future rate of growth depend highly upon the prices we receive for our crude oi

214、l and natural gas production.Historically,the markets for crude oil and natural gas have been volatile and are likely to continue to be volatile in the future.For example,the NYMEX daily settlement pricefor the prompt month oil contract in 2016 ranged from a high of$54.06 per barrel to a low of$26.2

215、1 per barrel.The NYMEX daily settlement price for the promptmonth natural gas contract in 2016 ranged from a high of$3.93 per MMBtu to a low of$1.64 per MMBtu.The market prices for crude oil and natural gas dependon factors beyond our control.These factors include demand for crude oil and natural ga

216、s,which fluctuates with changes in market and economic conditions,andother factors,including:worldwide and domestic supplies of crude oil and natural gas;actions taken by foreign oil and gas producing nations,including the Organization of the Petroleum Exporting Countries(OPEC);political conditions

217、and events(including instability,changes in governments,or armed conflict)in crude oil or natural gas producing regions;the level of global crude oil and natural gas inventories;the price and level of imported foreign crude oil and natural gas;the price and availability of alternative fuels,includin

218、g coal and biofuels;the availability of pipeline capacity and infrastructure;the availability of crude oil transportation and refining capacity;weather conditions;domestic and foreign governmental regulations and taxes;andthe overall economic environment.Our results of operations,as well as the carr

219、ying value of our oil and gas properties,are substantially dependent upon the prices of oil and natural gas,whichhave declined significantly since June 2014.Despite slight increases in oil and natural gas prices in 2016,prices have remained significantly lower than levels seenin recent years,which h

220、as adversely affected our revenues,operating income,cash flow,and proved reserves.Continued low prices could have a material adverseimpact on our operations and limit our ability to fund capital expenditures.Without the ability to fund capital expenditures,we would be unable to replace reservesand p

221、roduction.Sustained low prices of crude oil and natural gas may further adversely impact our business as follows:limiting our financial condition,liquidity,and/or ability to fund planned capital expenditures and operations;reducing the amount of crude oil and natural gas that we can produce economic

222、ally;causing us to delay or postpone some of our capital projects;reducing our revenues,operating income,and cash flows;limiting our access to sources of capital,such as equity and long-term debt;reducing the carrying value of our crude oil and natural gas properties,resulting in additional non-cash

223、 impairments;reducing the carrying value of our gathering,transmission,and processing facilities,resulting in additional impairments;orreducing the carrying value of goodwill.14Our ability to sell natural gas or oil and/or receive market prices for our natural gas or oil may be adversely affected by

224、 pipeline and gathering systemcapacity constraints and various transportation interruptions.A portion of our natural gas and oil production in any region may be interrupted,limited,or shut in,from time to time for numerous reasons,including as aresult of weather conditions,accidents,loss of pipeline

225、 or gathering system access,field labor issues or strikes,or capital constraints that limit the ability of thirdparties to construct gathering systems,processing facilities,or interstate pipelines to transport our production,or we might voluntarily curtail production inresponse to market conditions.

226、If a substantial amount of our production is interrupted at the same time,it could temporarily adversely affect our cash flows.Future economic conditions in the U.S.and certain international markets may materially adversely impact our operating results.Current global market conditions,and uncertaint

227、y,including economic instability in Europe and certain emerging markets,is likely to have significant long-term effects.Global economic growth drives demand for energy from all sources,including fossil fuels.A lower future economic growth rate could result indecreased demand growth for our crude oil

228、 and natural gas production as well as lower commodity prices,which would reduce our cash flows from operations andour profitability.Weather and climate may have a significant adverse impact on our revenues and production.Demand for oil and natural gas are,to a degree,dependent on weather and climat

229、e,which impact the price we receive for the commodities we produce.Inaddition,our exploration and development activities and equipment can be adversely affected by severe weather,such as freezing temperatures,hurricanes in theGulf of Mexico or storms in the North Sea,which may cause a loss of produc

230、tion from temporary cessation of activity or lost or damaged equipment.Our planningfor normal climatic variation,insurance programs,and emergency recovery plans may inadequately mitigate the effects of such weather conditions,and not allsuch effects can be predicted,eliminated,or insured against.Our

231、 operations involve a high degree of operational risk,particularly risk of personal injury,damage,or loss of equipment,and environmental accidents.Our operations are subject to hazards and risks inherent in the drilling,production,and transportation of crude oil and natural gas,including:well blowou

232、ts,explosions,and cratering;pipeline or other facility ruptures and spills;fires;formations with abnormal pressures;equipment malfunctions;hurricanes,storms,and/or cyclones,which could affect our operations in areas such as on and offshore the Gulf Coast and North Sea and other naturaldisasters and

233、weather conditions;andsurface spillage and surface or ground water contamination from petroleum constituents,saltwater,or hydraulic fracturing chemical additives.Failure or loss of equipment as the result of equipment malfunctions,cyber attacks,or natural disasters such as hurricanes,could result in

234、 property damages,personal injury,environmental pollution and other damages for which we could be liable.Litigation arising from a catastrophic occurrence,such as a well blowout,explosion,or fire at a location where our equipment and services are used,or ground water contamination from hydraulic fra

235、cturing chemical additives may resultin substantial claims for damages.Ineffective containment of a drilling well blowout or pipeline rupture,or surface spillage and surface or ground watercontamination from petroleum constituents or hydraulic fracturing chemical additives could result in extensive

236、environmental pollution and substantial remediationexpenses.If a significant amount of our production is interrupted,our containment efforts prove to be ineffective or litigation arises as the result of a catastrophicoccurrence,our cash flows,and,in turn,our results of operations could be materially

237、 and adversely affected.15Cyber attacks targeting systems and infrastructure used by the oil and gas industry may adversely impact our operations.Our business has become increasingly dependent on digital technologies to conduct certain exploration,development,and production activities.We dependon di

238、gital technology to estimate quantities of oil and gas reserves,process and record financial and operating data,analyze seismic and drilling information,communicate with our employees and third party partners,and conduct many of our activities.Unauthorized access to our digital technology could lead

239、 tooperational disruption,data corruption or exposure,communication interruption,loss of intellectual property,loss of confidential and fiduciary data,and loss orcorruption of reserves or other proprietary information.Also,external digital technologies control nearly all of the oil and gas distribut

240、ion and refining systems inthe United States and abroad,which are necessary to transport and market our production.A cyber attack directed at oil and gas distribution systems could damagecritical distribution and storage assets or the environment,delay or prevent delivery of production to markets,an

241、d make it difficult or impossible to accuratelyaccount for production and settle transactions.While we have experienced cyber attacks,we have not suffered any material losses relating to such attacks;however,there is no assurance that we will notsuffer such losses in the future.Further,as cyber atta

242、cks continue to evolve,we may be required to expend significant additional resources to continue to modify orenhance our protective measures or to investigate and remediate any vulnerabilities to cyber attacks.Our commodity price risk management and trading activities may prevent us from benefiting

243、fully from price increases and may expose us to other risks.To the extent that we engage in price risk management activities to protect ourselves from commodity price declines,we may be prevented from realizing thebenefits of price increases above the levels of the derivative instruments used to man

244、age price risk.In addition,our hedging arrangements may expose us to the riskof financial loss in certain circumstances,including instances in which:our production falls short of the hedged volumes;there is a widening of price-basis differentials between delivery points for our production and the de

245、livery point assumed in the hedge arrangement;the counterparties to our hedging or other price risk management contracts fail to perform under those arrangements;oran unexpected event materially impacts oil and natural gas prices.The credit risk of financial institutions could adversely affect us.We

246、 have exposure to different counterparties,and we have entered into transactions with counterparties in the financial services industry,includingcommercial banks,investment banks,insurance companies,other investment funds,and other institutions.These transactions expose us to credit risk in the even

247、tof default of our counterparty.Deterioration in the credit or financial markets may impact the credit ratings of our current and potential counterparties and affecttheir ability to fulfill their existing obligations to us and their willingness to enter into future transactions with us.We may also h

248、ave exposure to financialinstitutions in the form of derivative transactions in connection with any hedges.We also have exposure to insurance companies in the form of claims under ourpolicies.In addition,if any lender under our credit facilities is unable to fund its commitment,our liquidity will be

249、 reduced by an amount up to the aggregateamount of such lenders commitment under our credit facilities.We are exposed to a risk of financial loss if a counterparty fails to perform under a derivative contract.This risk of counterparty non-performance is ofparticular concern given the recent volatili

250、ty of the financial markets and significant decline in oil and natural gas prices,which could lead to sudden changes in acounterpartys liquidity and impair its ability to perform under the terms of the derivative contract.We are unable to predict sudden changes in a counterpartyscreditworthiness or

251、ability to perform.Even if we do accurately predict sudden changes,our ability to negate the risk may be limited depending upon marketconditions.Furthermore,the bankruptcy of one or more of our hedge providers,or some other similar proceeding or liquidity constraint,might make it unlikely thatwe wou

252、ld be able to collect all or a significant portion of amounts owed to us by the distressed entity or entities.During periods of falling commodity prices ourhedge receivable positions increase,which increases our exposure.If the creditworthiness of our counterparties deteriorates and results in their

253、 nonperformance,wecould incur a significant loss.16The distressed financial conditions of our purchasers and partners could have an adverse impact on us in the event they are unable to pay us for theproducts or services we provide or to reimburse us for their share of costs.Concerns about global eco

254、nomic conditions and the volatility of oil and natural gas prices have had a significant adverse impact on the oil and gas industry.We are exposed to risk of financial loss from trade,joint venture,joint interest billing,and other receivables.We sell our crude oil,natural gas,and NGLs to avariety of

255、 purchasers.As operator,we pay expenses and bill our non-operating partners for their respective shares of costs.As a result of current economicconditions and the severe decline in oil and natural gas prices,some of our customers and non-operating partners may experience severe financial problems th

256、atmay have a significant impact on their creditworthiness.We cannot provide assurance that one or more of our financially distressed customers or non-operatingpartners will not default on their obligations to us or that such a default or defaults will not have a material adverse effect on our busine

257、ss,financial position,futureresults of operations,or future cash flows.Furthermore,the bankruptcy of one or more of our customers or non-operating partners,or some other similarproceeding or liquidity constraint,might make it unlikely that we would be able to collect all or a significant portion of

258、amounts owed by the distressed entity orentities.Nonperformance by a trade creditor or non-operating partner could result in significant financial losses.A downgrade in our credit rating could negatively impact our cost of and ability to access capital.We receive debt ratings from the major credit r

259、ating agencies in the United States.Factors that may impact our credit ratings include debt levels,plannedasset purchases or sales,and near-term and long-term production growth opportunities.Liquidity,asset quality,cost structure,product mix,and commodity pricinglevels and others are also considered

260、 by the rating agencies.A ratings downgrade could adversely impact our ability to access debt markets in the future,increasethe cost of future debt,and potentially require us to post letters of credit or other forms of collateral for certain obligations.On February 2,2016,our credit ratingwas downgr

261、aded by Standard and Poors to BBB/Stable,and on February 25,2016,our credit rating was downgraded by Moodys to Baa3/negative outlook,ineach case as part of an industry-wide review and downgrade of U.S.exploration and production and oilfield services companies due to deteriorating commodityprices.Sub

262、sequently,on November 11,2016,Moodys changed our rating outlook to stable and affirmed our Baa3 rating.Any future downgrades could result inadditional postings ranging from approximately$400 million to$1.0 billion,depending upon timing and availability of tax relief.Market conditions may restrict ou

263、r ability to obtain funds for future development and working capital needs,which may limit our financial flexibility.The financial markets are subject to fluctuation and are vulnerable to unpredictable shocks.We have a significant development project inventory and anextensive exploration portfolio,w

264、hich will require substantial future investment.We and/or our partners may need to seek financing in order to fund these or otherfuture activities.Our future access to capital,as well as that of our partners and contractors,could be limited if the debt or equity markets are constrained.Thiscould sig

265、nificantly delay development of our property interests.Our ability to declare and pay dividends is subject to limitations.The payment of future dividends on our capital stock is subject to the discretion of our board of directors,which considers,among other factors,ouroperating results,overall finan

266、cial condition,credit-risk considerations,and capital requirements,as well as general business and market conditions.Our board ofdirectors is not required to declare dividends on our common stock and may decide not to declare dividends.Any indentures and other financing agreements that we enter into

267、 in the future may limit our ability to pay cash dividends on our capital stock,includingcommon stock.In addition,under Delaware law,dividends on capital stock may only be paid from“surplus,”which is the amount by which the fair value of ourtotal assets exceeds the sum of our total liabilities,inclu

268、ding contingent liabilities,and the amount of our capital;if there is no surplus,cash dividends on capitalstock may only be paid from our net profits for the then current and/or the preceding fiscal year.Further,even if we are permitted under our contractual obligationsand Delaware law to pay cash d

269、ividends on common stock,we may not have sufficient cash to pay dividends in cash on our common stock.17Discoveries or acquisitions of additional reserves are needed to avoid a material decline in reserves and production.The production rate from oil and gas properties generally declines as reserves

270、are depleted,while related per-unit production costs generally increase as aresult of decreasing reservoir pressures and other factors.Therefore,unless we add reserves through exploration and development activities or,through engineeringstudies,identify additional behind-pipe zones,secondary recover

271、y reserves,or tertiary recovery reserves,or acquire additional properties containing provedreserves,our estimated proved reserves will decline materially as reserves are produced.Future oil and gas production is,therefore,highly dependent upon ourlevel of success in acquiring or finding additional r

272、eserves on an economic basis.Furthermore,if oil or gas prices increase,our cost for additional reserves couldalso increase.We may not realize an adequate return on wells that we drill.Drilling for oil and gas involves numerous risks,including the risk that we will not encounter commercially producti

273、ve oil or gas reservoirs.The wells wedrill or participate in may not be productive,and we may not recover all or any portion of our investment in those wells.The seismic data and other technologieswe use do not allow us to know conclusively prior to drilling a well that crude or natural gas is prese

274、nt or may be produced economically.The costs of drilling,completing,and operating wells are often uncertain,and drilling operations may be curtailed,delayed,or canceled as a result of a variety of factors including,butnot limited to:unexpected drilling conditions;pressure or irregularities in format

275、ions;equipment failures or accidents;fires,explosions,blowouts,and surface cratering;marine risks such as capsizing,collisions,and hurricanes;other adverse weather conditions;andincreases in the cost of,or shortages or delays in the availability of,drilling rigs and equipment.Future drilling activit

276、ies may not be successful,and,if unsuccessful,this failure could have an adverse effect on our future results of operations and financialcondition.While all drilling,whether developmental or exploratory,involves these risks,exploratory drilling involves greater risks of dry holes or failure to findc

277、ommercial quantities of hydrocarbons.Material differences between the estimated and actual timing of critical events or costs may affect the completion and commencement of production fromdevelopment projects.We are involved in several large development projects and the completion of these projects m

278、ay be delayed beyond our anticipated completion dates.Ourprojects 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 event

279、s.Delays and differences between estimated and actual timing of criticalevents may adversely affect our large development projects and our ability to participate in large-scale development projects in the future.In addition,ourestimates of future development costs are based on current expectation of

280、 prices and other costs of equipment and personnel we will need to implement suchprojects.Our actual future development costs may be significantly higher than we currently estimate.If costs become too high,our development projects maybecome uneconomic to us,and we may be forced to abandon such devel

281、opment projects.18We may fail to fully identify potential problems related to acquired reserves or to properly estimate those reserves.Although we perform a review of properties that we acquire that we believe is consistent with industry practices,such reviews are inherently incomplete.Itgenerally i

282、s not feasible to review in-depth every individual property involved in each acquisition.Ordinarily,we will focus our review efforts on the higher-valueproperties and will sample the remainder.However,even a detailed review of records and properties may not necessarily reveal existing or potential p

283、roblems,norwill it permit us as a buyer to become sufficiently familiar with the properties to assess fully and accurately their deficiencies and potential.Inspections may notalways be performed on every well,and environmental problems,such as groundwater contamination,are not necessarily observable

284、 even when an inspection isundertaken.Even when problems are identified,we often assume certain environmental and other risks and liabilities in connection with acquired properties.Thereare numerous uncertainties inherent in estimating quantities of proved oil and gas reserves and future production

285、rates and costs with respect to acquired properties,and actual results may vary substantially from those assumed in the estimates.In addition,there can be no assurance that acquisitions will not have an adverseeffect upon our operating results,particularly during the periods in which the operations

286、of acquired businesses are being integrated into our ongoing operations.Our liabilities could be adversely affected in the event one or more of our transaction counterparties become the subject of a bankruptcy case.Over the last several years,we have taken action to enhance and streamline our North

287、American portfolio through not only the acquisition of assets in keyoperating regions but also the divestitures of noncore domestic assets and the monetization of certain nonstrategic international assets.The agreements relating tothese transactions contain provisions pursuant to which liabilities r

288、elated to past and future operations have been allocated between the parties by means of liabilityassumptions,indemnities,escrows,trusts,and similar arrangements.One or more of the counterparties in these transactions could,either as a result of the severedecline in oil and natural gas prices or oth

289、er factors related to the historical or future operations of their respective businesses,face financial problems that mayhave a significant impact on its ability to perform its obligations under these agreements and its solvency and ability to continue as a going concern.In the eventthat any such co

290、unterparty were to become unable financially to perform its liabilities or obligations assumed and as a result become the subject of a case orproceeding under Title 11 of the United States Code(the bankruptcy code)or any other relevant insolvency law or similar law(which we collectively refer to asI

291、nsolvency Laws)the counterparty may not perform its obligations under the agreements related to these transactions.In that case,our remedy would be a claim inthe proceeding for damages for the breach of the contractual arrangement,which may be either a secured claim or an unsecured claim depending o

292、n whether or notwe have collateral from the counterparty for the performance of the obligations.Resolution of our damage claim in such a proceeding may be delayed,and we maybe forced to use available cash to cover the costs of the obligations assumed by the counterparties under such agreements shoul

293、d they arise.Despite the provisions in our agreements requiring purchasers of our state or federal leasehold interests to assume certain liabilities and obligations related tosuch interests,if a purchaser of such interests becomes the subject of a case or proceeding under relevant Insolvency Laws an

294、d/or becomes unable financially toperform such liabilities or obligations,the relevant governmental authorities could require us to perform,and hold us responsible for,such liabilities andobligations,such as the decommissioning of such transferred assets.In such event,we may be forced to use availab

295、le cash to cover the costs of such liabilities andobligations should they arise.If a court or a governmental authority were to make any of the foregoing determinations or take any of the foregoing actions,or any similar determination oraction,it could adversely impact our cash flows,operations,or fi

296、nancial condition.Crude oil and natural gas reserves are estimates,and actual recoveries may vary significantly.There are numerous uncertainties inherent in estimating crude oil and natural gas reserves and their value.Reservoir engineering is a subjective process ofestimating underground accumulati

297、ons of crude oil and natural gas that cannot be measured in an exact manner.Because of the high degree of judgment involved,the accuracy of any reserve estimate is inherently imprecise,and a function of the quality of available data and the engineering and geological interpretation.Ourreserves estim

298、ates are based on 12-month average prices,except where contractual arrangements exist;therefore,reserves quantities will change when actual pricesincrease or decrease.In addition,results of drilling,testing,and production may substantially change the reserve estimates for a given reservoir over time

299、.Theestimates of our proved reserves and estimated future net revenues also depend on a number of factors and assumptions that may vary considerably from actualresults,including:historical production from the area compared with production from other areas;the effects of regulations by governmental a

300、gencies,including changes to severance and excise taxes;future operating costs and capital expenditures;andworkover and remediation costs.19For these reasons,estimates of the economically recoverable quantities of crude oil and natural gas attributable to any particular group of properties,classific

301、ations of those reserves and estimates of the future net cash flows expected from them prepared by different engineers or by the same engineers but atdifferent times may vary substantially.Accordingly,reserves estimates may be subject to upward or downward adjustment,and actual production,revenue an

302、dexpenditures with respect to our reserves likely will vary,possibly materially,from estimates.Additionally,because some of our reserves estimates are calculated using volumetric analysis,those estimates are less reliable than the estimates based on alengthy production history.Volumetric analysis in

303、volves estimating the volume of a reservoir based on the net feet of pay of the structure and an estimation of thearea covered by the structure.In addition,realization or recognition of proved undeveloped reserves will depend on our development schedule and plans.A changein future development plans

304、for proved undeveloped reserves could cause the discontinuation of the classification of these reserves as proved.Certain of our undeveloped leasehold acreage is subject to leases that will expire over the next several years unless production is established on unitscontaining the acreage.A sizeable

305、portion of our acreage is currently undeveloped.Unless production in paying quantities is established on units containing certain of these leasesduring their terms,the leases will expire.If our leases expire,we will lose our right to develop the related properties.Our drilling plans for these areas

306、are subjectto change based upon various factors,including drilling results,oil and natural gas 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.W

307、e may incur significant costs related to environmental matters.As an owner or lessee and operator of oil and gas properties,we are subject to various federal,provincial,state,local,and foreign country laws andregulations relating to discharge of materials into,and protection of,the environment.These

308、 laws and regulations may,among other things,impose liability on thelessee under an oil and gas lease for the cost of pollution clean-up and other remediation activities resulting from operations,subject the lessee to liability forpollution and other damages,limit or constrain operations in affected

309、 areas,and require suspension or cessation of operations in affected areas.Our efforts to limitour exposure to such liability and cost may prove inadequate and result in significant adverse effects to our results of operations.In addition,it is possible that theincreasingly strict requirements impos

310、ed by environmental laws and enforcement policies could require us to make significant capital expenditures.Such capitalexpenditures could adversely impact our cash flows and our financial condition.Our North American operations are subject to governmental risks.Our North American operations have be

311、en,and at times in the future may be,affected by political developments and by federal,state,provincial,and locallaws and regulations such as restrictions on production,changes in taxes,royalties and other amounts payable to governments or governmental agencies,price orgathering rate controls,and en

312、vironmental protection laws and regulations.In response to the Deepwater Horizon incident in the U.S.Gulf of Mexico in April 2010,and as directed by the Secretary of the U.S.Department of theInterior,the Bureau of Ocean Energy Management(BOEM)and the Bureau of Safety and Environmental Enforcement(BS

313、EE)issued new guidelines andregulations regarding safety,environmental matters,drilling equipment,and decommissioning applicable to drilling in the Gulf of Mexico.These regulationsimposed additional requirements and caused delays with respect to development and production activities in the Gulf of M

314、exico.With respect to oil and gas operations in the Gulf of Mexico,the BOEM has issued a new Notice to Lessees(NTL No.2016-N01)significantly revising theobligations of companies operating in the Gulf of Mexico to provide supplemental assurances of performance with respect to plugging,abandonment,and

315、decommissioning obligations associated with wells,platforms,structures,and facilities located upon or used in connection with such companies oil and gasleases.While requirements under the new NTL have not yet been fully implemented by BOEM,the new NTL may require that Apache provide additional secur

316、ityto BOEM with respect to plugging,abandonment,and decommissioning obligations relating to Apaches current ownership interests in various Gulf of Mexicoleases.We are working closely with BOEM to make arrangements for the provision of such additional required security,if such security becomes necess

317、ary underthe new NTL.Additionally,we are not able to predict the effect that these changes might have on counterparties to which Apache has sold Gulf of Mexico assets orwith whom Apache has joint ownership.Such changes could cause the bonding obligations of such parties to increase substantially,the

318、reby causing a significantimpact on the counterparties solvency and ability to continue as a going concern.20New political developments,laws,and the enactment of new or stricter regulations in the Gulf of Mexico or otherwise impacting our North Americanoperations,and increased liability for companie

319、s operating in this sector may adversely impact our results of operations.Changes to existing regulations related to emissions and the impact of any changes in climate could adversely impact our business.Certain countries where we operate,including Canada and the United Kingdom,either tax or assess

320、some form of greenhouse gas(GHG)related fees on ouroperations.Exposure has not been material to date,although a change in existing regulations could adversely affect our cash flows and results of operations.In the event the predictions for rising temperatures and sea levels suggested by reports of t

321、he United Nations Intergovernmental Panel on Climate Change dotranspire,we do not believe those events by themselves are likely to impact our assets or operations.However,any increase in severe weather could have a materialadverse effect on our assets and operations.The present U.S.federal and state

322、 income tax laws affecting oil and natural gas exploration,development,and extraction may be modified byadministrative,legislative,or judicial interpretation at any time.Future legislation may result in the elimination of certain U.S.federal income tax deductionscurrently available with respect to o

323、il and natural gas exploration and development.The present U.S.federal and state income tax laws affecting oil and natural gas exploration,development,and extraction may be modified by administrative,legislative,or judicial interpretation at any time.Previous legislative proposals,if enacted into la

324、w,could make significant changes to such laws,including theelimination of certain key U.S.federal income tax incentives currently available to oil and natural gas exploration and production companies.These changesinclude,but are not limited to,(i)the repeal of the percentage depletion allowance for

325、oil and natural gas properties,(ii)the elimination of current deductions forintangible drilling and development costs,(iii)the elimination of the deduction for certain U.S.production activities,and(iv)an extension of the amortizationperiod for certain geological and geophysical expenditures.The Pres

326、ident and Congress could include some or all of these previously proposed changes inconjunction with lower tax rates as part of fundamental tax reform legislation.The passage or adoption of these changes,or similar changes,could eliminate orpostpone certain tax deductions that are currently availabl

327、e with respect to oil and natural gas exploration and development.Further,the President and Congressmay propose and implement more general tax reform changes including changes to cost recovery rules,the deductibility of interest expense,the taxation of foreigndividends,and a border adjustability pro

328、vision that would impact the taxation of oil and gas companies.We are unable to predict whether any of these changes orother proposals will be enacted.Any such changes could adversely affect our business,financial condition,and results of operations.Proposed federal,state,or local regulation regardi

329、ng hydraulic fracturing could increase our operating and capital costs.Several proposals are before the U.S.Congress that,if implemented,would either prohibit or restrict the practice of hydraulic fracturing or subject theprocess to regulation under the Safe Drinking Water Act.Several states are con

330、sidering legislation to regulate hydraulic fracturing practices that could impose morestringent permitting,transparency,and well construction requirements on hydraulic-fracturing operations or otherwise seek to ban fracturing activities altogether.Hydraulic fracturing of wells and subsurface water d

331、isposal are also under public and governmental scrutiny due to potential environmental and physical impacts,including possible contamination of groundwater and drinking water and possible links to earthquakes.In addition,some municipalities have significantly limitedor prohibited drilling activities

332、 and/or hydraulic fracturing,or are considering doing so.We routinely use fracturing techniques in the U.S.and other regions toexpand the available space for natural gas and oil to migrate toward the wellbore.It is typically done at substantial depths in very tight formations.Although it is not poss

333、ible at this time to predict the final outcome of the legislation regarding hydraulic fracturing,any new federal,state,or localrestrictions on hydraulic fracturing that may be imposed in areas in which we conduct business could result in increased compliance costs or additional operatingrestrictions in the U.S.International operations have uncertain political,economic,and other risks.Our operatio